Gen Z and Millennials Shift to Online Shopping for Value

In today’s fast-changing retail landscape, Generation Z ( Gen Z) and millennials have shown a strong preference for online shopping- An important insight that highlights the growing need for seamless digital experiences. According to a new study by pricing intelligence company Sciative Solutions, this digitally native generation is guided more by value, seamless online experiences, peer reviews, and trust than by legacy brand names. As Gen Z inclines more towards convenience than loyalty, the report highlights a key opportunity for new brands to compete and succeed by embracing wiser customer engagement strategies, fueled by AI-powered pricing and reactive service.

The study further unveils an overriding digital buying inclination among youth shoppers, where 68% of Millennials and 66% of Gen Z are inclined to prefer online websites rather than conventional brick-and-mortar stores. Having grown up in a hyper-connected world, Gen Z automatically looks towards digital sources for buying necessities. Even elderly consumers who earlier depended on brick-and-mortar stores are shifting towards online platforms, highlighting faster checkout, enhanced product discovery, and open prices as driving forces behind the switch.

In terms of pricing behavior, both generations share a high sense of value awareness. Gen Z is attracted to flash sales, in-stock, and trend-driven discounts, while Millennials prefer research-driven purchases with an emphasis on customer reviews and peer recommendations. But the need for discounts stays the same, as more than 45% of the respondents across both groups report considering promotional prices in their purchase decisions. Brand loyalty, on the other hand, is swiftly disappearing; only 12% of Gen Z and 14% of Millennials will stick with a brand no matter what it costs. In this climate, brand heritage alone no longer secures customer retention, giving agile, new, and competitively priced emerging trends a clear path to capture market share.  

Key Insights of the study by Sciative Solutions:-

• 66% of Gen Z prefer online shopping over in-store experiences, making digital presence vital for brands.
• 83% rely heavily on customer reviews before making a purchase, showing the importance of transparency and peer validation.
• 68% prioritise price during their first purchase, but
• 86% are willing to buy even if the price increases - provided product quality is assured.
• 85% are open to switching marketplaces to find better deals, reflecting high price awareness.
• 91.73% stay loyal to platforms offering excellent customer service, even if prices are slightly higher.
• Gen Z values authenticity, fairness, and brand trust more than flashy discounts.
• The study encourages businesses to adopt AI-driven dynamic pricing strategies to stay relevant and competitive.

Ms. Vijeta Soni, Co-founder & CEO of Sciative Solutions, remarked, “Generation Z is reshaping the retail narrative by placing fairness, transparency, above shallow discounting tactics. For them, it’s not just about buying a product—it’s about connecting with brands that resonate with their identity and offer more than just functionality, offering meaningful experiences.”

Dr. Anshu Jalora, Founder & Managing Director of Sciative Solutions, added, “Our study signals that pricing strategies must evolve beyond cost-optimisation. AI-driven dynamic pricing enables brands to stay competitively agile while cultivating a seamless and personalised experience that takes priority, with long-term loyalty emerging as a natural outcome rather than primary driver. Retailers need to realize that it's not only Gen Z - millennials have also adopted these changing expectations. For retailers, acknowledging and embracing this pervasive shift is essential because it mirrors the desire of a large and influential consumer group, not a niche market. Satisfying these expectations is now imperative for propelling significant, long-term growth in an increasingly competitive marketplace.”

The research reveals a shift in how young customers perceive value. Though 68% of Gen Z are prioritizing price at their initial purchase, 80% would be willing to pay a premium if they are certain about the quality, illustrating a contrast between sensitivity towards price and long-term value. Approximately 50% of Gen Z and millennials alike will pay extra for superior service, faster delivery, and exclusivity, demonstrating that experience and convenience are becoming crucial for brand success. A striking 95% of consumers quickly switch platforms if another offers a better experience, proving loyalty today is driven more by value than habit.

With 83% of Gen Z shoppers relying on peer reviews and 85% willing to switch marketplaces in pursuit of better deals, the study urges retailers to revisit outdated loyalty programmes and generic promotions. Traditional models that relied on emotional branding or deep discounting must give way to tech-enabled, customer-first strategies. Sciative  Solutions, a leader in pricing intelligence, recommends that brands blend competitive value pricing with hyper-personalised experiences and consistently excellent digital interfaces. In this new equation, price remains essential, but it is the total shopping experience that ultimately secures consumer loyalty and drives repeat business.