Gender Matters: A Study on Price Sensitivity and Brand Attachment of Generation Z Consumers

Abstract

The purpose of this thesis is to analyze how gender affects price sensitivities for hedonic and commodity products, taking in consideration different levels of brand attachment for Generation Z. The study focuses on Generation Z, as it is the future actionable consumer segment in the upcoming years. In order to investigate the relationship between these variables, an online survey was conducted with the objective of gathering quantitative data to identify trends and infer relationships between the variables. The survey was open to all GenZ individuals worldwide. 340 responses were collected, resulting in a sample of 236 after eliminating incomplete responses. The main findings suggested that price sensitivity differs between genders, with women being more price sensitive than men, as well as having a higher level of brand attachment. It was also found that women were more price sensitive for commodity products than men. A linear relationship was found between brand attachment and price sensitivity suggesting that a high brand attachment decreased price sensitivity for one hedonic product only: the smartphone. Finally, it became apparent that GenZ consumers are willing to pay more when a product is eco-labelled, and thus have a decreased price sensitivity when an eco-label is present. All these results were statistically significant. However, no significant result was found for women being more price sensitive for hedonic products than men, which aligns with the fact that they have a higher brand attachment; and no relationship was found between brand attachment and price sensitivity for the commodity products and the hedonic t-shirt product. GenZ is a new generation with stronger beliefs and purchasing ethics than previous generations. The aim of this study is to investigate whether gender differences still have an effect on consumption in this new era, and to investigate its impact on price sensitivity. The implications of this research will give insights to brands on how to best market and price their products to appeal to both genders within this new generation.