Short answer

To appeal to Generation Z, prioritize competitive pricing and high quality in domestic product development and marketing, especially for food and beverage categories, and consider a balanced approach to sales channels.

Field
Innovation & Markets
Source
ETHOS (Jurnal Penelitian dan Pengabdian) (2019)
Method
Descriptive research with logistic regression analysis
Sample
328 participants
Evidence
Strong effect

Generation Z consumers show a strong preference for domestic products, with price and quality being the most significant drivers, particularly for food and beverage items. This innovation & markets research insight is drawn from a 2019 study published in ETHOS (Jurnal Penelitian dan Pengabdian). Using Descriptive research with logistic regression analysis with 328 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: To appeal to Generation Z, prioritize competitive pricing and high quality in domestic product development and marketing, especially for food and beverage categories, and consider a balanced approach to sales channels.

Study
Innovation & MarketsHigh ImpactStrong effect

Gen Z Prioritizes Price and Quality for Domestic Products, Especially in Food & Beverage

Generation Z consumers show a strong preference for domestic products, with price and quality being the most significant drivers, particularly for food and beverage items.

ETHOS (Jurnal Penelitian dan Pengabdian) · 2019

01

Key Findings

  • 01Price is the primary driver for preferences in food & beverage, clothing, gadgets, and higher education.
  • 02Brand provider is key for communication services, natural beauty for tourism, and convenience for transportation.
  • 0380.28% of consumers prefer domestic products over foreign products.
  • 04Higher income increases the likelihood of choosing domestic products.
  • 05Conventional transaction platforms are preferred over online platforms.
02

Application

Design takeaway

To appeal to Generation Z, prioritize competitive pricing and high quality in domestic product development and marketing, especially for food and beverage categories, and consider a balanced approach to sales channels.

How to apply

When designing new products or marketing strategies for the Gen Z market, conduct a thorough analysis of price sensitivity and quality perception within specific product categories. Ensure that domestic product offerings are demonstrably superior or more cost-effective than foreign alternatives.

Project actions

  • 01Clearly define the target demographic (e.g., age range, student status).
  • 02Use a mix of quantitative (surveys) and qualitative (interviews) methods to gather rich data.
  • 03Ensure your research question is specific and measurable.
03

Method & Evidence

AimWhat factors influence Generation Z's preference for domestic products over foreign alternatives?
MethodDescriptive research with logistic regression analysis
ProcedureSurveyed 328 students under 20 years old (Generation Z) to understand their preferences for various product categories (food & beverage, clothing, gadgets, higher education, communication services, transportation, tourism). Analyzed the influence of income, transaction platform choice, and product quality on the preference for domestic versus foreign products.
Sample328 participants
ContextConsumer behavior, product preference, Generation Z market

Variables

IV["Income level","Transaction platform (conventional vs. online)","Product quality (food & beverage)"]
DV["Preference for domestic products"]
CV["Age (Generation Z, < 20 years old)","Respondent status (student)"]
04

Strengths & Limitations

Strengths

  • +Utilized logistic regression to identify significant influencing factors.
  • +Clear focus on a specific, influential demographic (Generation Z).

Limitations

The sample size might be limited if only focusing on a very specific sub-group of Gen Z. Generalizing findings to all Gen Z consumers could be a limitation.

Reliability & validity

The study's reliability could be enhanced by replicating the survey across different educational institutions or regions. Validity is supported by the use of logistic regression to statistically confirm the influence of identified variables on consumer preference.

Think critically

How might the increasing global connectivity and exposure to international trends influence Generation Z's preference for domestic products in the future?

05

Design Principles

"Value-driven product strategy: Align product features and pricing with the core value drivers of the target demographic."

Understanding the purchasing drivers for Generation Z is crucial for businesses aiming to capture this growing market segment. Tailoring product offerings and marketing strategies to align with their price sensitivity and quality expectations for domestic goods can lead to increased market share and brand loyalty.

06

What This Means for Your Design

Young people (Gen Z) really like buying things made in their own country, especially if they are cheaper and good quality. They often prefer buying in regular stores over online.

How to use in your project

  • 1.Use this study as a precedent for investigating consumer preferences in your own design project.
  • 2.Reference the findings on price and quality as potential factors to explore in your user research.
07

Add to My Project

08

Quick Cite

Paragraph starter

This research indicates that Generation Z consumers exhibit a strong preference for domestic products, with price and quality emerging as the most influential factors, particularly within the food and beverage sector. The study also highlights a tendency towards conventional transaction platforms and a positive correlation between higher income and the choice of domestic goods, suggesting that businesses should strategically position their offerings to meet these specific consumer drivers.

09

Source

ETHOS (Jurnal Penelitian dan Pengabdian)

Preferensi Konsumen Generasi Z terhadap Konsumsi Produk Dalam Negeri

journal · 2019

View source

Questions About This Research

What does the research say about gen z prioritizes price and quality for domestic products, especially in food & beverage?
To appeal to Generation Z, prioritize competitive pricing and high quality in domestic product development and marketing, especially for food and beverage categories, and consider a balanced approach to sales channels. Evidence: ETHOS (Jurnal Penelitian dan Pengabdian) (2019).
Why does "Gen Z Prioritizes Price and Quality for Domestic Products, Especially in Food & Beverage" matter for design?
Understanding the purchasing drivers for Generation Z is crucial for businesses aiming to capture this growing market segment. Tailoring product offerings and marketing strategies to align with their price sensitivity and quality expectations for domestic goods can lead to increased market share and brand loyalty.
How can designers apply this research?
To appeal to Generation Z, prioritize competitive pricing and high quality in domestic product development and marketing, especially for food and beverage categories, and consider a balanced approach to sales channels.
What were the main findings?
Price is the primary driver for preferences in food & beverage, clothing, gadgets, and higher education.. Brand provider is key for communication services, natural beauty for tourism, and convenience for transportation.. 80.28% of consumers prefer domestic products over foreign products.. Higher income increases the likelihood of choosing domestic products.
What research method was used?
Descriptive research with logistic regression analysis with 328 participants.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2019 journal from ETHOS (Jurnal Penelitian dan Pengabdian).
What should I do differently in my next project?
When designing new products or marketing strategies for the Gen Z market, conduct a thorough analysis of price sensitivity and quality perception within specific product categories. Ensure that domestic product offerings are demonstrably superior or more cost-effective than foreign alternatives.
What are the limitations?
The study focused solely on students under 20, potentially limiting the generalizability to the entire Generation Z population. Preferences might vary across different geographical regions and socio-economic backgrounds.