Changes in the customer buying process of premium automotive products between the generations X and Z : How to target generation Z as customers for the automotive industry

Abstract

Gen Z is born digital native and used to an ubiquitous omnipresence of the internet and other media. Born into an extremely high level of economic prosperity, they find a better situation in the job market than previous generations. The most important influencing factors for Digital Natives are the internet and other media, as well as multi-ethnical and multicultural experiences in society beginning at an early age. Gen Z has a positive attitude towards globalization and a strong ability of realistic assessment of chances and risks of global connections. Gen Z differs from previous generations through intense use of the internet, and a high media consumption in general with a special focus on mobile devices, first and foremost smart phones. The customer buying process of Gen Z in comparison to previous generations is characterized by intense use of the internet, especially in the information phase and evaluation of alternatives. The internet is also used parallel to traditional channels, e.g. during an interviews with a sales person or while watching advertising on TV. The customer buying process has shortened considerably and traditional sales channels are losing importance. For those Digital Natives living in urban areas, the car is less attractive than other means of transport because of the high cost of ownership, and the difficult parking situation in the cities. For Gen Z, the car is no longer a status symbol, but has instead been replaced by smart phones. The questionnaire study confirms previous findings regarding the use of media and modal mix. Peer groups like friends and family are of high importance for Gen Z, as well as user reports for products. In contrast to previous studies, the random sample shows reluctance regarding the purchase of high-priced products, i.e. also cars. In the future, sustainability will become a major decisive factor for car purchase. Moreover, the seamless integration of the digital environment of the customer is a must. Innovation like self-driving cars will transform the car to a space of experience and retreat. The automotive business model must be transformed on the basis of ICT strategies. New ways of customer engagement and brand positioning will comprise optimal channel integration, an enhancement of the OEM brand image as a service provider, and the focus on offering an entertaining unique shopping experience.