Dissertation Proposal | IFB by ellajaye

AN EXPLORATION OF MARKETING AND BRANDING AS AN IMPORTANT FACTOR IN GENERATION Z CONSUMER PURCHASE BEHAVIOUR.

ABSTRACT

DIGITAL GEN

AIMS

RETAIL SPACE

METHODOLOGY

OUTPUTS

DO MORE

CONCEPT MAP

Generation Z are ‘individualist by nature’ and believe in being able to ‘speak their mind’ (Varsha, 2014). Born after 1996, Generation Z have lived through the ‘biggest recession since the 1930s’ and have only know a ‘post-9/11 world’ meaning that the ‘constant perceived threat of harm has become a defining characteristic for this generation’. Despite the negative aspects in Generation Z’s childhood, they were brought up with an ‘African-American president’ and soaring ‘LGBT acceptance’ meaning they are an accepting and tolerant generation (Merriman, 2015). All of these factors affect how Generation Z communicate with brands and how they want brands to communicate with them. From a brands point of view, ‘each generation has different attitudes… so marketing to them cannot be the same’ (Stillman, 2019). Generation Z’s key desires are for brands to use appropriate and engaging communications, stimulate their relationship through both online and offline portals as well as to do more than just sell products. “67% [of Generation Z respondents] have stopped purchasing … if the company stood for something or behaved in a way that didn’t align with their values” (dosomethingstrategic, 2018). Furthermore, Generation Z rates ‘ethical principles as a reason to be loyal’ which highlights that brands need to stand for something more than just a good product to entice the younger generation (Joker, 2018). Because of the digital influences on their childhoods, Generation Z are in tune with the digital world and can easily hop ‘between the physical and digital worlds’ (Posner, 2011). This has affected the way that Generation Z shop and marketers have had to ‘adjust their strategies to accommodate ever-changing shopping habits (Rath, 2016). Not all brands are taking this into consideration when targeting Generation Z which may be a reason why they’re not connecting well to this generation. Due to the unique characteristics of Generation Z, a question of how to market to them successfully arises. As well as whether changing a brands marketing and branding strategies can encourage consumer purchase behaviour in their favour. This study benefits brands, especially their marketing and branding departments, by understanding how they can create a healthy consumer-brand relationship. This will then allow the marketing and branding departments to identify ways to target Generation Z and their consumer spending power.

AIM & OBJECTIVES: To identify and understand the characteristics of Generation Z to produce recommendations for fashion brands on how they could alter their marketing and branding strategies to target them successfully during their path to purchase.

1 2 3 4 3

To identify the characteristics of Generation Z and explore how these affect their consumer purchase behaviour and interactions with fashion brands. To examine marketing and branding theories and investigate how they are implemented in real brand strategies. Investigate and explore how fashion brands can align their marketing and branding strategy to Generation Zâ&#x20AC;&#x2122;s path to purchase. To discover what key things Generation Z want brands to implement in their marketing and branding strategies in both an online and physical retail environment and assess how these could be implemented.

METHODOLOGY Generation Z is the current youngest consumer group and therefore there is an extensive amount of secondary resources examining their behaviours. These secondary sources mainly focus on how a start-up company can target this generation, giving advice on how to structure their marketing and branding from the offset. However, there are a limited amount of secondary resources concerning how current brands can improve their interaction with Generation Z. Therefore, this study will delve into Generation Zâ&#x20AC;&#x2122;s opinions and their interaction with current marketing and branding strategies to understand how brands could alter their communications to target this market. In addition to this, the study will investigate Generation Zâ&#x20AC;&#x2122;s characteristics as a digital generation, their relationship with retail spaces and using their voices to demand more from brands than just good products. Primary research will be conducted to gain further insight into the relationships that Generation Z have with brands. Both Questionnaires for statistical data and qualitative research such as interviews will be organised to achieve this. There will have to be careful consideration about how these interviews will occur so to adhere to social distancing. There is an opportunity to complete these through Skype however this may affect the rapport between interviewer and interviewee. Initial secondary sources have revealed new models (CRUSH, AIDA and Mehrabian-Russell) that can be utilised to understand the connection between consumer and brand. These theories will be used to analyse completed primary research to evaluate how effective they are.

DO MORE

COMPANY COMPANY LIVES LIVES PURPOSE PURPOSE

With 60% of Generation Z stating they would pick a brand if they are trying to improve the world it is clear that Generation Z want more from their brands than just good products (Berher, 2016). It appears that this generation ‘want to know what’s behind the brand [and] what it can give back to them’ (Tungate, 2012). However, many brands are not acknowledging this as fast fashion brands continue to grow with little consideration for environmental impact. Fundamentally, it is critical that brands create ‘trust in consumer-brand relationships’. The importance of this relationship has been ‘championed in the advertising industry since the early 1990s’ (Witt, 2018). Today’s consumers want to shop with smaller brands that have a real soul and story behind them (Tungate, 2012). However, this is not stopping Generation Z from still shopping from larger retailers. Generation Z want to play an ‘active role [in] the brand relationship’ by being able to interact and give feedback to brands (Beverage Industry, 2018). This allows them to ‘force brands to stand for something’ that they believe in (Joker, 2018). This is vital for brands to listen to as “67% [of Generation Z respondents] have stopped purchasing … if the company stood for something or behaved in a way that didn’t align with their values”. This evidences the need for brands to go further and be transparent with their values. After this research was conducted a branding model was created to showcase how brands sit at different levels in terms of their commitment to doing something ‘more’ (See Fig 1) This brand ethos hierarchy goes from ‘we are welcome’ all the way up to ‘the company lives purpose’. The hierarchy suggests that brands need to climb the ladder until their company ‘lives purpose’ to fully satisfy Generation Z consumers (dosomethingstrategic, 2018).

ENGAGING ENGAGING FOR FOR DIRECT DIRECT IMPACT IMPACT

CARING CARING IS IS INTEGRAL INTEGRAL

WE WE CARE CARE

ALL ALL WELCOME WELCOME

*fig 1: Brand Ethos Hierarchy (2021), own model

SELF ACTUALISATION

ESTEEM

LOVE AND BELONGING

SAFETY NEEDS

PHYSIOLOGICAL NEEDS

*fig 2: Maslows Hierarchy of Needs (2021), own model

Similarly to this model, Maslow’s hierarchy of needs (See Fig 2) shows how consumers have different stratums of physical and psychological need. Witt states that if a brand is able to cover each stratum of Maslow’s hierarchy this will allow that brand to build credibility with Generation Z (Witt, 2018). This is because Generation Z use clothing to showcase their personality and reach self-actualisation. When a brand’s message aligns with a consumer this helps them to achieve self-actualisation as they are representing their true self. There are some similarities between the two models as when the ‘company lives purpose’ this will assist in a consumer reaching self actualisation. However, this has been criticised as Denning suggests that none of these stratums are achievable without human connection. He states that the rise of social media has made it ‘infinitely easier for social connection to take place’ and therefore there is no hierarchy of needs but a cycle. Despite this criticism, the link between self-actualisation and buying into a brand that has similar values as the consumer is a good way to build trust.

happiness

self

uniqueness

realness

coolness 12

Mattias Behrer did a research study into how brands could ‘stay hot’ for Generation Z. He created a branding model called CRUSH to steer brands in the correct direction. CRUSH stands for; coolness, realness, uniqueness, self identification with the brand and happiness (Behrer, 2016). The need for realness and self identification with the brand reiterates the earlier points of Generation Z being deeply motivated by ‘authenticity and a brand’s emotional DNA’ (Beverage Industry, 2018).

DIGITAL GEN

Generation Z has grown up in an ‘almost fully digitalised and globally connected world’ meaning they cannot ‘imagine a life without computers’ (Behrer, 2016). Because of the digital influences on their childhoods, Generation Z are fully in tune with the digital world and find it easy to hop ‘between the physical and digital worlds’ (Posner, 2011). Because of this ability they are extremely conscious of their online presence and how this is perceived by those around them. This emphasises that social media is used by a percentage of Generation Z as a way of being ‘validated’ and ‘belonging to something bigger than oneself’ (Witt, 2018). Ultimately, ‘Digital is in Gen Z’s DNA’ (Bendoni, 2018).

*fig 3: Brand Ethos Hierarchy (2021), own model

AWARENESS

INTEREST

DESIRE

Due to their exposure to the digital world from a young age, Generation Z enjoy instant gratification and short bursts of communication (Behrer, 2016). They are ‘not accustomed to waiting for information’ in the same way generations would have before them (Bendoni, 2018). Marketers have caught onto this behaviour and consistently send out ‘billions of messages … to millions of consumers worldwide’. Many of these messages do not stick but those that do have an impact on our ‘brand preferences and purchase behaviour’ (Maloney, 2016). The promotion model AIDA (See Fig 3) is used by marketers to represent the stages that a consumer must go through to reach the purchase point (Turnbull, 2016). These stages can include sending out messages from the brand to the consumer in to help them along the path. However, this model has attracted criticism as it has been said to ‘lack practical application’. Critics say that you can only ‘nudge customers’ in the correct direction rather than using the AIDA model with ‘ruthless efficiency’ (Maloney, 2016). This shows that brands are able to influence consumer purchase behaviour and can alter messages to suit different consumers.

ACTION 16

Jeff Fromm, the president of FutureCast, stated that ‘the concept of social media marketing is dead for Generation Z” (Rodriguez, 2015). This is a bold statement as Generation Z has grown up alongside the social media industry. Generation Z prefer a ‘personal, human connection’ and video allows this natural communication via social media (Bergh, 2016). Unsurprisingly because of this, Youtube has risen in popularity among this generation and is now recognised as Generation Z’s ‘hub’ (Bedoni, 2018). This suggests that social media marketing is not dead but evolving. The social media marketing that Generation Z has more interest in comes from nano and micro influencers who have built up a relationship with their followers (Velocitise, 2019). The main focal point that needs to be thread into social media marketing is trust as Generation Z want more transparency from brands, influencers and marketing agencies. The ‘technological up-gradation is helping marketers to be more honest’ with their customers which is allowing for the change in the use of social media marketing (Anjum, 2020).

RETAIL SPACE

As Generation Z begins to ‘gain a footfall in the consumer spending environment’ their ‘expectations are transforming the retail environment’ (Donaldson, 2016). As highlighted in the ‘do more’ section of this report, Generation Z want more from brands than just product and this includes being in store. Technology has affected the way that consumers shop and is ‘inciting retail innovation’ as brands focus on ‘customer experience’ (Rodriguez, 2015). Despite the popularity of e-commerce, customers still want to be able to connect with a brand through different portals, including the ‘physical environment’ (Bailey, 2016). As Donaldson observed, ‘Malls aren’t dead, they’re [just] being shopped differently’ (Donaldson, 2015). Generation Z consumers want to enter different atmospheres as they switch between stores to feel like they’ve connected to each brand (Brozzetti, 2012). This atmosphere is an ‘important factor for apparel retailers to consider and control (Yurchisin, 2010) as it can create ‘delight for the people who determine the meaning and value of [the] brand - [the] consumers’ (Neumeier, 2007).

ENVIRONMENTAL STIMULI

As you can see from the Mehrabian-Russell model (See Fig 4) there are three emotional reactions that can be created for a consumer whilst in a retail environment. This can be considered as a limited model due to the simple outcomes however it is useful for brands to use to consider their stores mood. In a retail store, the brand needs to create pleasure and arousal to stimulate an interesting but controlled environment for the consumer (Yurchisin, 2010). There are many ‘intangible store elements’ that can be added such as fragrance to ‘stimulate one’s affective state and boost mental imagination’ (Law, 2012). The way that a brand does this to appeal to the Generation Z consumer will depend on their brand personality. Ultimately, the goal is to ‘use a variety of emotional and cognitive stimuli’ to ‘create a unique shopping experience for each consumer’ (Ebster, 2015). This is extremely important for Generation Z as they crave new experiences.

EMOTIONAL STATES

PLEASURE, AROUSAL, DOMINANCE

It is crucial for a ‘brands longevity that the customer is engaged’ which has instigated a rise in innovative retail spaces (Bailey). Pop up shops and concept stores are becoming more popular to create a buzz for Generation Z consumers as these quick bursts of communication stimulate emotional reactions (Rodriguez). According to an environmental psychological study, consumers who are engaged by their surroundings are more likely to stay and spend money which is the goal of any brand (Donovan and Rossiter, 1982).

RESPONSE *fig 4: Mehrabian-Russell model (2021), own model

OUTPUT IDEAS My research report will aid in the decision of what to create as a creative output. However, there are a few initial ideas that have been drawn from writing this proposal. It is clear that there is a lack of information for brands that currently struggling to appeal to Generation Z and so it would be helpful to create something to aid with that process. Therefore, a brand book, situational analysis and a suggested marketing campaign for a brand who is struggling to reach Generation Z could be created.

PROPOSAL

AIM

OBJECTIVES SECONDARY PRIMARY ANALYSIS RESEARCH RESEARCH To identify the characteristics of Generation Z and explore how these affect their consumer purchase behaviour and interactions with fashion brands.

An exploration of marketing and branding as an important factor in Generation Z consumer purchase behaviour.

To identify and understand the characteristics of Generation Z to produce recommendations for fashion brands on how they could alter their marketing and branding strategies to target them successfully during their path to purchase.

CONCEPT MAP *full concept map can be found in appendix A

To examine marketing and branding theories and investigate how they are implemented in real brand strategies.

Relevant books about branding and marketing theories. Survey: Complete a survey to gather information from Gen Z and millennials about how they feel about their favourite brands and why.

Articles, Newspapers and Magazines that comment on Gen Z as a consumer e.g. Vogue, B.O.F, Drapers

Investigate and explore how fashion brands can align their marketing and branding strategy to Generation Zâ&#x20AC;&#x2122;s path to purchase.

Ted Talks / podcasts discussing Gen Z behaviours? How Gen Z differ from other generations.

To discover what key things Generation Z want brands to implement in their marketing and branding strategies in both an online and physical retail environment and assess how these could be implemented.

Theses/Dissertations discussing marketing theory, branding theory and Gen Z to gain inspiration.

1:1 Interview with a small group of Gen Z to go further into depth with results from first survey.

After gathering the secondary and primary data, it will be analysed to search for insights. This will then be used to create a creative outcome.

Focus Group: If there are further questions risen from the 1:1 interviews then a focus group will be conducted.

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Anjum, A., Thomas, M. and Prakash, P., 2020. Digital Marketing Strategies: Effectiveness on Generation Z. SCMS Journal of Indian Management, 17(2), pp.54-69.

Bailey, S., 2016. Visual Merchandising For Fashion. 2nd ed. London: Bloomsbury.

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Beverage Industry, 2018. Authenticity, personalization resonate with Gen Z shoppers, IRI study finds. Beverage Industry, [online] 109(5), p.12. Available at: <https://search.proquest.com/ docview/2049667626?accountid=14693&rfr_id=info%3Axri%2Fsid%3Aprimo> [Accessed 8 December 2020].

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Dollars and Change, 2018. 2018 Survey Of Young People And Social Change. [online] Dollars and Change. Available at: <https://medium.com/dosomethingstrategic/dollars-change-young-people-tap-brands-as-agentsof-social-change-2612b717e5f7> [Accessed 10 December 2020].

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Donovan, R. and Rossiter, J., 1982. Store Atmosphere: An Environmental Psychology Approach. Journal of Retailing, [online] 58(1), pp.34-56. Available at: <https://www.researchgate.net/profile/Robert_ Donovan/publication/248766608_Store_Atmosphere_An_Environmental_Psychology_Approach/ links/5a38c3ef0f7e9b7c48700249/Store-Atmosphere-An-Environmental-Psychology-Approach.pdf> [Accessed 11 December 2020].

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Fill, C. and Turnbull, S., 2016. Marketing Communications: Discovery, Creating And Conversations.. 1st ed. Harlow: Pearson Seventh.

Held, J., 2019. Influencer Marketing Isnâ&#x20AC;&#x2122;t Dead, But For Gen Z, It Needs To Change - Velocitize. [online] Velocitize. Available at: <https://velocitize.com/2019/10/15/influencer-marketing-isnt-dead-but-for-gen-z-it-needs-tochange/> [Accessed 11 December 2020].

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Artemova, A., 2018. Engaging Generation Z Through Social Media Marketing. Undergraduate. South-Eastern Finland University of Applied Sciences.

Easey, M., 2009. Fashion Marketing. 3rd ed. Oxford: Wiley-Blackwell.

Bäcklund, E., 2019. A Qualitative Study Examining Marketing Communication Channels For Targeting Generation Z To Establish Brand Awareness. postgraduate. Linköping University.

Ebster, C. and Garaus, M., 2015. Store Design And Visual Merchandising. 2nd ed. New York: Business Expert Press.

Bailey, S., 2016. Visual Merchandising For Fashion. 2nd ed. London: Bloomsbury.

Fill, C. and Turnbull, S., 2016. Marketing Communications: Discovery, Creating And Conversations.. 1st ed. Harlow: Pearson Seventh.

Bendoni, W., 2018. Social Media For Fashion Marketing: Storytelling In A Digital World. 2nd ed. London: Bloomsbury.

Frings, G., 1982. Fashion From Concept To Consumer. 1st ed. Englewood Cliffs: Prentice Hall.

Bergh, J. and Behrer, M., 2016. How Cool Brands Stay Hot: Branding To Generation Y And Z. 3rd ed. London: Kogan Page.

Fromm, J. and Read, A., 2015. Marketing To Gen Z: The Rules For Reaching This Vast, And Very Different, Generation Of Influencers. 1st ed. New York: AMACOM.

Hameide, K., 2016. Fashion Branding: Unraveled. 1st ed. New York: Bloomsbury. Held, J., 2019. Influencer Marketing Isn’t Dead, But For Gen Z, It Needs To Change - Velocitize. [online] Velocitize. Available at: <https://velocitize.com/2019/10/15/influencer-marketing-isnt-dead-but-for-gen-z-it-needs-tochange/> [Accessed 11 December 2020].

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Hines, T. and Bruce, M., 2007. Fashion Marketing: Contemporary Issues. 2nd ed. Amsterdam: ButterworthHeinemann. Hoyer, W. and Brown, S., 1990. Effects of Brand Awareness on Choice for a Common, Repeat-Purchase Product. Journal of Consumer Research, 17, pp.141-148.

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Denning, S., 2012. What Maslow Missed. [online] Forbes. Available at: <https://www.forbes.com/sites/ stevedenning/2012/03/29/what-maslow-missed/?sh=3c86af81661b> [Accessed 12 December 2020].

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Law, D., Wong, C. and Yip, J., 2012. How does visual merchandising affect consumer affective response?. European Journal of Marketing, [online] 46(2), pp.112-133. Available at: <https://search.proquest.com/ docview/921010049?accountid=14693&rfr_id=info%3Axri%2Fsid%3Aprimo> [Accessed 9 December 2020].

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Schiffman, L., 2001. Consumer Behaviour. 2nd ed. Frenchs Forest, N.S.W: Prentice Hall.

McKinsey and Company, 2020. Gen Z And The Latin American Consumer Today. [podcast] McKinsey on Consumer and Retail. Available at: <https://open.spotify.com/ episode/0haA7iiNSROEPAoOMCuOxx?si=Y6czv7TlRSm7mVTE_LZzQg> [Accessed 9 December 2020].

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Southgate, D., 2017. The emergence of Generation Z and its impact in advertising: Long-term implications for media planning and creative development. Journal of Advertising Research, 57(2), pp.227-235. Stillman, J. and Stillman, D., 2019. Marketing To Generation Z. [online] Linkedin learning. Available at: <https:// www.linkedin.com/learning/marketing-to-generation-z/marketing-to-a-new-generation?u=36922300> [Accessed 6 December 2020]. Tungate, M., 2012. Fashion Brands: Branding Style From Armani To Zara. 3rd ed. London: Kogan Page. Varsha, J., Reshm, V. and Khyati, J., 2014. Exploring Generation Z’s Purchase Behavior towards Luxury Apparel: a Conceptual Framework. Romanian Journal of Marketing, [online] (2), pp.18-29. Available at: <https://search. proquest.com/docview/1549931202?accountid=14693&rfr_id=info%3Axri%2Fsid%3Aprimo> [Accessed 10 December 2020]. Witt, G. and Baird, D., 2018. The Gen Z Frequency: How Brands Tune In And Build Credibility. 1st ed. London: Kogan Page. Yurchisin, J. and Johnson, K., 2010. Fashion And The Consumer. 1st ed. Oxford: Berg. Zheng, Y. and Li, Y., 2018. Visual Merchandising and Emotional Design. Journal of Arts and Humanities, [online] 7(5), pp.39-45. Available at: <https://www.theartsjournal.org/index.php/site/article/view/1265/660> [Accessed 11 December 2020].

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IMAGE REFERENCES FIG 1

fig 1: Brand Ethos Hierarchy (2021), own model

FIG 2

fig 2: Maslows Hierarchy of Needs (2021), own model

FIG 3 FIG 4

fig 3: Brand Ethos Hierarchy (2021), own model

fig 4: Mehrabian-Russell model (2021), Own Model

APPENDIX A