Consumer

Gen Z Spending Behaviors

September 1, 2024

MERGE research highlights the dynamic and influential relationship between live events and the spending behaviors of Generation Z.

Gen Z Confesses to Experience-Driven Overspending

FOMO Fuels the Fun

According to new research from MERGE, Gen Z consumers reveal their spending habits related to events, and spoiler alert—these experiences can drive the notoriously cost-conscious cohort to overspend impulsively.

MERGE conducted a survey of 1,000 Gen Z consumers and recruited seven Gen Z event-goers attending summer concerts, sporting events, and festivals to track their spending habits. The findings revealed critical insights into how this cohort engages with fashion, entertainment, and sporting events. And how brands can show up—the right way.

Keep scrolling to delve into key insights gleaned from the comprehensive survey.

86% Overspend on Events

Despite Gen Z's reputation for being cost-conscious, events can turn them into impulsive spenders.

According to the study, just 14% of the 1,000 respondents managed to stick to their budget when attending events. For the remaining 86%, the allure and atmosphere of live events often leads them to overspend.

Top-cited reasons for exceeding budget include impulse purchases like limited-time offers and tempting merchandise, the value of immersive or unique experiences, convenience and accessibility, emotional or sentimental value, and FOMO (fear of missing out).

Authentic Brand Activations Drive Purchase

More than half of Gen Z respondents admitted that brand advertising at an event influenced them to make a purchase in the past year.

The top items bought due to event brand exposure include food and beverage (22%) and apparel and accessories (20%). Gen Zs who are frequently influenced by brand collaborations are more likely to attend food fairs and fashion events.

Where do brand placements at events fail? Gen Zs are most bothered by a lack of transparency (26%) and pandering to trends (22%). Surprisingly, sustainability concerns ranked low, however brands must avoid greenwashing practices and "trendjacking" and show up in a mindful way that embraces authenticity and transparency.

64% influenced by event advertising to make a purchase

Top Gen Z Purchases for Events

When it comes to event-related spending, 96% of Gen Z event-goers shopped for the occasion.

Food and beverage (41.3%) and apparel and accessories (33.7%) were the top items purchased for use at events, reinforcing the interplay between fashion, entertainment, and social experiences in Gen Z’s spending habits.

Additionally, nearly 70% of respondents at fashion and beauty events specifically identified apparel and accessories as their primary spending focus. Interestingly, Gen Z respondents said they are more likely to purchase apparel for sports events compared to arts and culture events, highlighting a strong connection between sports and fashion.

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Super Spenders Are the Minority

Nearly 40% of Gen Zs stay within the $500-$1K sweet spot for annual event spending.

A small but notable group, however, reported spending $5K+ on events and related expenses in the past year. These high spenders are 27% more likely to attend film festivals, 20% more likely to participate in fitness and wellness expos, and 29% more likely engage in fashion and beauty workshops.

They are also more likely to buy something after brand exposure at an event. And, 41% of this group say they shop to enhance their social media presence, compared to 25% of the general group, underscoring the importance for brands to understand this narrow segment of Gen Z.

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Gen Z is Not One-Size-Fits-All

Gen Z males are more likely to engage in impulse buying and spend over $1K per year on events, with nearly a third doing so compared to 21.8% of Gen Z females. Males are also more likely to be influenced to purchase merchandise specific to an event or to support a team. They have distinct preferences for research channels, favoring video reviews, podcasts, and AR/VR.

Gen Z females are more likely to overspend due to emotional connections and FOMO (Fear of Missing Out). Nearly half of females say they would spend up to $500 annually, versus 27.4% of Gen Z males.

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Sports and Arts & Culture Events Top the Charts

From fish and game gatherings to tech expos and personal growth workshops, Gen Zs participate in a wide variety of events. However, the standout favorites are undeniably in the realms of sports and arts & culture, with professional sports events and music festivals leading the pack in each category, respectively.

Male Gen Zs tend to favor sports, tech and innovation, and fish and game events, while female Gen Zs are more inclined towards arts and culture, fashion and beauty, and animal and wildlife events. Interest levels in personal growth and home and garden events showed no significant gender differences.

Some more granular metrics on event preferences within each of the broader categories:

Sports: Men were more likely than women to attend Professional Sports and Extreme Sports events. No statistical gender difference was found for Endurance Races & Marathons, Fitness Festivals & Wellness Expos, College & High School Sporting Events, and Outdoor Adventure Races.
Arts & Culture: Men are more likely to attend Movie Premieres, Comic Conventions, and Fan Conventions. Whereas women are more likely to attend Art Exhibits. Older Gen Zs (over 25) are more likely to attend Live Performances, Comic Conventions, and Food Fairs.
Tech & Innovation: Gen Z men are more likely to attend Innovation Summits. And older Gen Zs are more likely to attend AI and Automation Exhibits and Startup Incubator events.
Fashion & Beauty: The top Gen Z preferred events were Pop-Up Shops & Brand Collaborations and Fashion & Beauty Influencer Meetups.
Personal Growth: We found men were more likely to attend Sustainability Summits, Community Cleanup & Restoration Projects, Social Impact Hackathons. We also found younger Gen Zs were more likely to attend Rallies & Protests.

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Pragmatism Outweighs Ideals

Gen Z displays a pragmatic mindset when deciding whether or not to attend an event. The primary factors leading them to skip events are high ticket prices, affecting nearly half of Gen Zs, and inconvenient timing or location.

Beyond these practical considerations, the reputation of an event holds significant sway. Concerns about health and safety, coupled with inadequate event planning or negative past experiences, weigh heavily on their decision-making process.

Interestingly, while values-based issues such as sustainability and diversity and inclusion are on their radar, they don't rank as high in priority. This indicates that while these values are important, they are secondary to more immediate logistical concerns for Gen Z when it comes to event attendance.

When it comes to brand activations at events more specifically, Gen Z display a distaste with some specific missteps most frequently: Lack of Transparency, Pandering to Trends, Excessive Promotions (Frequency & Intensity of Marketing), and Inauthenticity were the top cited concerns. The overarching theme here indicates that brands should seek to craft bespoke and honest experiences for Gen Z at events, mindful of the event context as well as staying true to their brand roots.

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What Causes GenZ to Delay Or Speed Up Buying Timelines?

We've explored how Gen Z often overspends on events for emotional and experiential reasons, but let's dive deeper into what makes them delay or speed up their buying decisions.

According to our survey, the main reasons Gen Z cited for delaying purchases include price sensitivity, financial constraints, and the fear of buyer's remorse. These reasons highlight their underlying budget-conscious mindset. Additionally, uncertainties such as event logistics, comparative shopping, and last-minute decisions contribute to their hesitancy. Social factors like awaiting peer influence or limited product releases were less significant.

For brands looking to engage Gen Z effectively, it's crucial to first address pricing concerns and alleviate uncertainties about product features. While social approval plays a role, it's not the primary driver of Gen Z's purchasing behavior.

Conversely, when asked what accelerates their buying decisions, Gen Z pointed to limited-time offers as the top motivator. Emotional factors also strongly influence their decisions, including excitement and anticipation for events, social media influence, and emotional connections to athletes, performers, or organizations.

These insights suggest that brands have ample opportunity to create compelling experiences and products that resonate emotionally, fostering unique brand identities and collaborations that captivate Gen Z's attention.

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Winning Over Gen Z

The research

"The Event Effect: Gen Z Retail Survey" was conducted with 1,000 Gen Z respondents across various demographics from July 10-18, 2024. The survey explored event attendance, spending habits, and the impact of brand activations on purchasing decisions.

Additionally, MERGE selected seven participants for an event-spending project, in which they received a $700 prepaid credit card to cover event-related expenses like food, clothing, and accessories. They participated in a 30-minute pre-event interview to discuss the project and gather initial quotes, followed by a 30-minute post-event interview to review the content gathered. Participants were also asked to document their purchases and key social media posts throughout the event.

Numbers tell only part of the story

The spending diaries of seven Gen Z event-goers unveil the vibrant reflections behind their purchases for events and their unique perspectives on various aspects of them. This research offers a comprehensive view of a generation at a crucial stage of growth, eager for new experiences and keen to explore and affirm their identities. Events play a pivotal role in this journey of self-discovery.

However, the insights we've gathered are just the beginning. Within Gen Z, there are countless opportunities to explore demographic subgroups and niche interest groups. Retailers that invest in understanding which events resonate most with their brand and audience, and strategically focus on these, will be well ahead of the game.

Want help with your marketing strategy? MERGE is a full-service agency, learn more here and get in touch here.

Gen Z Spending Behaviors

Gen Z Confesses to Experience-Driven Overspending

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Sports and Arts & Culture Events Top the Charts

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Pragmatism Outweighs Ideals

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What Causes GenZ to Delay Or Speed Up Buying Timelines?

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Winning Over Gen Z

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Sports and Arts & Culture Events Top the Charts

Pragmatism Outweighs Ideals

What Causes GenZ to Delay Or Speed Up Buying Timelines?

Winning Over Gen Z

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