Chapter 8

Generational Differences in Omnichannel

Experience: Rising New Segment: Gen Z
Bilge Baykal

Abstract
Marketplaces are changing, and customers are demanding improved
experiences where they want, how they want, and when they want. The om-
nichannel concept is perceived as an evolution of multichannel retailing,
which implies a blurring division between the physical and online stores. In
the omnichannel environment, customers move freely among physical and
online stores expecting seamless shopping experiences between channels.
Among different generational consumer groups, Gen Z deserves market-
ers’ particular attention, which is the new rising segment for omnichannel
experiences. The purpose of this chapter is first to verify the essence of
generational differences in consumer’s omnichannel buying behavior by
giving a special focus on the Gen Z segment. Secondly, this chapter dis-
cusses how retailers should integrate their online and offline store chan-
nels to provide the best retail brand experience to these distinctive Gen Z
consumers.

Keywords: Omnichannel; Gen Z; in-store experience; shopping; millenials;

online channels; convenience; seamless

Introduction
In today’s world, technology is breaking barriers between different retail
channels. Consumers search for information from various sources and use mul-
tiple-channels for shopping, including catalogues, stores, and the internet (Shim,
Eastlick, Lotz, & Warrington, 2001). According to Deloitte’s (2018) forecast for
2018, retail markets will change significantly in the future. While the growth of

Managing Customer Experiences in an Omnichannel World: Melody of Online and Offline

Environments in the Customer Journey, 117–132
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118    Bilge Baykal

online retailing is continuing, its impact on traditional retail players will be even
higher than in the past. Although physical stores are increasingly decreasing, they
will still have an essential role in retailing because of the rising importance of
customer in-store experiences.
Consumers are spending more time and energy on their smartphones, and they
typically conduct searches on mobile devices while making purchases in physi-
cal stores (Singh & Swait, 2017). According to Brynjolfsson, Hu, and Rahman
(2013), more than half of mobile phone owners in the United States have smart-
phones, and over 70% of them use their mobile devices for making comparisons
during their shopping experiences. Both young and old customers browse online
and then come into a retail store to touch, feel, and purchase depending upon the
product. Online browsing drives in-store shopping, even if the customers do not
always finalize purchasing online. Retailers should synchronize all their channels
(Shim et al., 2001), as the retail industry is changing toward helping customers
rather than focusing only on transactions. New channels, such as mobile chan-
nels, are becoming more critical, and Thakur (2016) noted that mobile shopping
has a powerful emotional significance for customers, being a source of entertain-
ment. So, attaining an ultimate omnichannel experience is essential for both brick
a mortar and brick and click companies.
There is a clear split in how different generations view offline and online shop-
ping today. The older side of the Millennials is much more fonder of traditional
brick-and-mortar shopping. On the contrary, the younger part of the same group
would mostly choose to shop online instead. However, in general, all shoppers
appreciate overall convenience factors. According to literature, why consumers
shop where they shop, why consumers buy on branded websites, why consumers
purchase online or in-store, site security concerns, payment options, return rates,
and data sharing inclination differ among generational segments. Among the four
main generational segments, Gen Z is the most growing segment proving to be
the most critical influencers of purchasing decisions by older generation family
members. Baby Boomers, Gen X, and Millenials value the input of their Gen Z
children (Marks, 2019).
This chapter aims to explore online and offline shopping experiences of
Gen Z consumers and analyze how they significantly differ from other genera-
tional consumer groups. Disclosing their differences from other generations,
including Millennials, provides valuable information to retailers highlighting
how they should build their channel integration to satisfy them most from the
perspective of omnichannel management. In this study, the use of digital tech-
nologies to improve Gen Z consumers’ brand experiences in physical stores is
also analyzed.

Consumers’ Shopping Experience Across Channels

The omnichannel concept is perceived as an evolutionary result of multichannel
retailing, which implies an integration between the physical and online stores. In
the omnichannel environment, customers move freely among channels (online,
mobile devices, and physical stores), all within a single transaction process.
 Generational Differences in Omnichannel Experience    119

Piotrowicz and Cuthbertson (2014) report that channel integration plays a vital
role in building the ultimate customer experience. Customers’ experiences include
the search, purchase, consumption, and after-sale phases of elements which
the retailer may or may not be able to control (Verhoef et al. 2009). Customers
choose channels depending on their current situations, so easy movement among
channels at different stages is essential in the creation of a satisfactory experience.
Lemon and Verhoef (2016) noted that mobile devices are more appropriate for
searching than purchasing, and some channels are more feasible than others at
different stages of the buying process. Customers are usually using their mobile
devices in-store to check prices, search for information, compare products, ask
for a recommendation, and look for cheaper alternatives online before making
an in-store purchase. Scanning quick response (QR) codes and bar codes, which
allows customers to check more affordable options when they are in the store,
has become popular as well. Customers can check product ratings from social
networks or contact their groups to ask questions, and retailers cannot control
these interactions (Lemon & Verhoef, 2016).
Although the channels are managed together by the companies, the perceived
interaction is not with the channel, but rather the brand by consumers (Juaneda-
Ayensa, Mosquera, & Murillo, 2016). Online purchase is profoundly affected by
the type and brand of the product or service people like to buy. Consumers just
want retailers to serve their needs with an experience that is as satisfying and
efficient as possible. Many of them want a retailer to know who they are wherever
they shop. This means they require a seamless experience across channels. What
is of crucial importance is the fact that regardless of the way how and where a
consumer eventually makes a purchase, they want to get a product of the same
price and quality, with all of its related benefits (Chodowicz, 2015). As a result, a
company has a chance to build relations based on experiences that are complex,
coherent, and available in every used channel while providing a consumer with
holistic experiences during each stage of the purchasing process, at each point of
contact and micro-moments of that interaction. A consumer might start his/her
shopping journey in social media, view information on websites, subscribe to a
newsletter, and finish it in a traditional shop where at the very last moment before
buying, already holding a product in his hand while looking through its reviews
on a smartphone.
Some studies in the literature show the effects of demographics in online shop-
ping (Chiu, Lin, & Tang, 2005; Rohm & Swaminathan, 2004; Sorce, Perotti, &
Widrick, 2005). Generational groups have a significant impact on shopping expe-
riences; however, two of the youngest ones, Millennials and Gen Z, are gaining
an increasing dominance. They have some things in common; digital saturation,
concern for sustainability, an interest in experiences, but among different genera-
tional consumer segments, Gen Z, which is the new segment for rising brands and
apps to capture loyalty, deserves special attention by the marketers. Gen Z, unlike
their millennial counterparts, Gen X generation and Baby Boomers, is targeted
by the companies by brand coverage, social media presence, and overall lifestyle
affinity. Gen Z is moving toward a full comfort with the shopping experience by
engaging in more ads, preferring more personalized services, buying on newer
120    Bilge Baykal

platforms, spending more discretionary income, and ultimately investing their

money where a brand’s personality is (Wallace, 2018).

Gen Z Perspective of Omnichannel Experience

In 2019, Gen Z caught up with Millennials in terms of the global population.
While the youngest Millennials (age 23) might still be living with their parents,
the oldest Millennials turn 38 this year. They’re homeowners, and many of them
settled into a job. Retailers finally figured out Millennials. However, they are
aware that a new generation is emerging that will ensure disruptive ways of shop-
ping. The first Gen Z consumers were born around the mid-1990s, and the oldest
ones are about to transmit from college to the workforce. These consumers are
highly diverse and multicultural, but more importantly, it’s becoming clear to
retailers that they need entirely different treatment from Baby Boomers, Gen X,
and even Millennials generation segments. Gen Z likes finding things that are
unique and interesting, and they are willing to go to find them in “wherever”
(Marks, 2019).
Millennials were creators for introducing a range of new shopping behaviors.
With Gen Z, so many new different shopping behaviors came into the scene. Gen
Z speeds everything up as they are always moving faster. Variety is mandatory for
them, whether it’s in food, beauty, technology, or anything else. Retailers tried to
extend virtual shelves as Millennials demanded in the omnichannel era, but Gen
Z expected a higher ultimate level, which required being seamless. Omnichannel
is assumed as given by this generation, and they expect a level of fluidity, which is
unparalleled (Orgel, 2019).
Omnichannel commerce may not be the exact terminology for the Gen Z
group. These consumers don’t recognize any channels, but they want everything
to work together for total convenience. Convenience term also is expanded to
cover payments aspect for Gen Z, who prefers more to pay with mobile devices.
They also perceive authenticity and transparency as a must and appreciate them
much more than Millennials do. Gen Z, being born into the social media era, is
always willing for augmented reality, artificial intelligence, and lots of other tech-
nologies on their shopping experiences. They embrace personalized offers having
no fear of how much companies hold data about their lives while also not caring
how their retail experiences impact the industry (Orgel, 2019).

Millennials Versus Gen Z: They Are Not All the Same

Both generations are young, tech-savvy, listen to the same music, and watch Net-
flix shows. Still, when it comes to shopping experiences of Millennials and Gen-
eration Z, marketers must treat them separately. These two generations can be
perceived as similar, but they have distinct shopping habits which retailers should
keep in mind. The below sections disclose the main differences between these two
while also mentioning common points.
Sharable Content: Generations Z’s multi-use of technology is a crucial dif-
ferentiator. The research showed that Gen Z uses five devices averagely and
 Generational Differences in Omnichannel Experience    121

spends more than seven hours a day on social media by continuously checking
and refreshing their social media feeds every few minutes. Marketers should
apply quick notices to grab their attention with highly sharable content that is
relevant and easy to digest. Gen Z respects emoticons and videos rather than
words. 43% of them never comment, and 27% never “like” a brand or com-
pany’s social media page. More than 54% of them are fans of YouTube and visit
the video-sharing giant daily. 70% favor YouTube influencers who are relatable
and real versus traditional celebrity endorsers. 44% of them would be interested
in submitting ideas for product designs, and 36% would create digital content
for a brand. Millennials turn to Facebook more often than Gen Z, which indi-
cates a reality that should require different online strategies for each of them
(Efros, 2019).
Purchased Digital Content: Since analog entertainment has declined, digital
entertainment has flourished, especially in the area of streaming services. Look-
ing at Gen Z’s digital purchasing behaviors, generally, they typically over-index in
their willingness to pay for music, gaming, and education-related digital content.
Since 2015, the number of Gen Z customers paying for movie/TV streaming ser-
vices has increased by 25%. More significantly, the number of Gen Zs who have
paid for a music streaming service has nearly doubled since 2015 (Global Web
Index, 2018).
Love of Technology: The demand for in-store technologies is familiar to both
generations, but Gen Z consumers are more highly engaged with technology. 64%
say they are always connected online, and 57% feel more insecure without their
mobile phone than their wallet. Over 90% of Gen Z group stipulates a strong
Wi-Fi signal for their shopping experience. They also admire other emerging tech-
nologies like “Magic Mirrors” (Efros, 2019).
The Interest of Streaming Media: Streaming media provides the type of enter-
tainment content that Gen Zs have grown accustomed to, which tailored to their
tastes, schedules, and attention spans. Watching TV and video content is the sec-
ond most important reason for using the internet among Gen Zs. Their aspiration
for paid streaming services like music and video is notably strong, too (Global
Web Index, 2018).
Addiction to Smartphones: For Gen Zs, their smartphones are central to their
lives. Smartphones are the top channels used to access the internet for this gen-
eration, and 97% of Gen Z own a smartphone. This group spent a daily average
time of 4 hours and 15 minutes on their mobile by the end of 2018, which is the
longest among all generation groups. Additionally, mobiles have a noticeable lead
over PCs/laptops for their social-related activities like uploading/sharing photos
(Global Web Index, 2018).
App Usage: Social networking and messaging apps represent the most heav-
ily used app categories among Gen Zs. This audience mostly utilizes entertain-
ment-based apps, such as music, gaming, and other entertainment app categories.
In 2018, 92% of Gen Z consumers reported using social apps, with an 11%
increase when compared to the last two years. Music, travel, shopping, dating,
and map-based apps have similarly seen as significantly growing, indicating that
apps fulfill nearly all of Gen Z’s lifestyle needs (Global Web Index, 2018).
122    Bilge Baykal

Shopping Preferences: While Gen Z is continuously online and enjoys

searching products virtually, Gen Z consumer’s shopping experience – primarily
girls’ – is focused in malls, too. They genuinely love the mall and the social,
in-person interaction they find there. While Millennials make 54% of their
purchases online, and 60% prefer generic brands compared to name brands –
likely owing to their budget consciousness, Gen Z is much more reluctant to
engage with companies and brands. 19% do not engage with companies and
brands at all, which is significantly higher than Millennials. 64% of Gen Z
prefer shopping in stores versus online, and 45% declare that the experience of
buying something is just as relevant as the product itself. That’s good news for
retailers with a strong brick-and-mortar presence. Top categories for in-store
shopping include grocery (90%), furniture (66%), household items (63%), and
accessories/shoes (59%). It’s also interesting that Gen Z wants and demands
reward experiences, with instant feedback and satisfaction. 75% of Gen Z
prefers shopping in-store by engaging in-store experiences. On the other
hand, Millennials prefer online shopping within the comfort of their homes –
unless they are bringing their Gen Z children to the mall. Constant digital
innovation and connectivity are necessary to keep the Millennials engaged
(Efros, 2019).
Money Concerns: Millennials grew up in a relatively healthier economy than
Gen Zs, who was impacted by the Great Recession and is more concerned about
money and debt. For Gen Z, wealth and job security are top motivators. They are
incredibly competitive, perceiving salary, benefits, and advancement critical. Gen
Zs are also 41% more likely to be economical than Millennials, meaning they’re
much more price-conscious. This is mostly because of their age and current life
stage, but it’s something that brands should keep in mind (Efros, 2019).
Purchasing Patterns: Unlike experience-focused Millennials, Gen Zs are
more willing to spend their money on entertainment, technology, and fashion.
The number one big-ticket item for Gen Z purchases is headphones, followed by
laptops and computer games. From the fashion point of view, Gen Zs are also
interested in wristwatches, purse/wallets, and handbags (Global Web Index,
2018).
The Need For Acceptance and Belonging to a Community: 73% of Gen Z says
that it’s important to feel respected by their peers. About 40% of them say they
are easily influenced by other people’s opinions, which is 17% more likely than the
global average (Global Web Index, 2018).
The Influencers are the Keys: Gen Z loves sharing content. They post about
everything waiting for approval and recognition. They love posting pictures of
items they are thinking of buying and then wait for their friends to like their posts
as acceptance before making purchases. Friends are the influencers of choices
in their world. On the other hand, Millennials rank celebrity endorsements and
other “influencers,” including their Gen Z kids, as the most persuasive. For Mil-
lennials, Gen Z kids have become increasingly important influencers of family
spending in categories like clothing, accessories, and even vacations, which is
something that every marketer should consider when marketing to these young
shoppers (Efros, 2019).
 Generational Differences in Omnichannel Experience    123

Personalization Interest: Gen Z does not want to be a part of a mass, and

they appreciate individual uniqueness, heritage brands, and being able to
express themselves as they like. While Millennials and older generations enjoy
wearing brand logos on their chest, the Gen Z prefer personalization. They
like simple, basic colors – black, white, gray – to which they can then add their
own personal flavor. They don’t want to advertise a brand; they want to express
themselves. 53% of Gen Z choose brands that understand them as an individual
(Efros, 2019).
Entertainment Interest: Entertainment-related interests like music, films/cin-
ema, and gaming all exist in the top ranking for Gen Z. This always-on audience
is consuming a considerable amount of entertainment, like gaming, as 36% more
than the global average of consumers and 22% more than Millennials (Wallace,
2018).
Self-perceptions: Gen Zs like to make an impact as they need to feel respected
by peers. They’re not a group that will accept the status quo and seeks to grow
themselves through new experiences. They want to stand out in the crowd, take
risks, and pursue a life of challenge, novelty, and change. Gen Zs are 25% more
likely to think of themselves as spontaneous than Millennials, again reflecting
their inclination to take risks (Global Web Index, 2018).
Social Responsibility: While Millennials are known as “Me Generation,” Gen
Z is highly socially conscious, often advocating on behalf of the issues which
they care about. 55% of Gen Z prefer brands that are eco-friendly and socially
responsible (Efros, 2019).
Holistic View of Self-care: Purchase patterns for Gen Z are different from
other generations like not only purchasing less indulgent food products, but
they also spend more on skincare and beauty products, indicating that they’re
investing in their health and self-care in a more thoughtful way (Global Web
Index, 2018).
Health-conscious lifestyle: Gen Zs have a more health-conscious lifestyle when
compared to older consumer groups. Gen Zs purchase less indulgent foods such
as soft drinks, cookies, candies, and frozen foods. Longitudinal research reveals
that this has been a developing trend among young consumers, and the rate of
monthly purchasing snack foods has declined from 54% to 50% between the years
2015 and 2018. Similarly, chocolate purchases went down from 49% to 45% in this
same period (Global Web Index, 2018).
Brand Loyalty: Only 30% of Gen Z see loyalty programs as a positive thing,
and 62% are attracted to new and fun brands, while 60% of Millenials remain
loyal to the brands they purchase. 42% of Gen Z would like to participate in an
online game for a brand campaign (Marks, 2019).
Value of Privacy: Generational differences play an important role in consum-
ers’ willingness to share data. 54% of Seniors (aged 73+) and 46% of Baby Boom-
ers (aged 54–72) would not share personal data with retailers regardless of the
incentive offered. Gen X (aged 38–53), Millennials (aged 22–37), and Gen Z (aged
18–21), however, have a more collaborative view in return of some benefits. All
three generations express a willingness to share personal data with merchants in
exchange for free shipping or product discounts. In general, younger generations,
124    Bilge Baykal

those who grew up in the Digital Age, value privacy but not at the expense of
convenience (Wallace, 2018).
The Inclination to Block Ads: Gen Z is 12% more likely than average to be
blocking ads. An overabundance of ads online is the biggest frustration (49%),
with close to a majority also saying they block ads because they are annoying/
irrelevant (48%). The proliferation of irrelevant online advertising has been a
point of stress for Gen Z, and their ad-blocking rates are expected to increase in
the future. Three in five Gen Z are using a private browsing window, and just over
half are using ad-blocker to stop ads being displayed (Global Web Index, 2018).
Psychological Relief: According to the latest survey report by AT Kerney, in
2017, Gen Z consumers increasingly started to prefer their shopping in stores,
mostly for mental health reasons. 81% of Gen Z respondents said they prefer to
purchase in stores, and 73% said they like to discover new products in stores. Brick-
and-mortar stores allow for a new type of “retail therapy,” with 58% of the Gen Z
group saying browsing shelves and clothing racks enable them to disconnect from
social media and the digital world. So, a new controversial idea emerged that Gen
Z is looking at brick-and-mortar retailing as a way to, “disconnect,” from the stress
of the social media world while at the same time getting emotionally closer to the
online influencers and celebrities they follow (Wallace, 2018).
In summary, although Gen Z is sometimes conceptualized as the “millennial+”
generation in literature perceived as behaving much like Millennials, brands, and
retailers who keep their differences in mind are more likely to reap the rewards
in marketing strategies. This section discloses the differences which makes Gen Z
generation unique and different from Millennials with the statistical information
and data coming from sources of Global Web Index research report (2018), 2018
Omnichannel Buying Report of BigCommerce leading e-commerce platform
(Wallace, 2018) and Farla Efros’ discussion (2019), who is the president of HRC
Retail Advisory Company. GlobalWebIndex partnered with Snap Inc. to under-
stand Gen Z at a more in-depth, global level and explored their characteristics in
their report drawing on the core research conducted on a representative sample of
474,573 respondents across 45 countries; Argentina, Australia, Austria, Belgium,
Brazil, Canada, China, Colombia, Denmark, Egypt, France, Germany, Ghana,
Hong Kong, India, Indonesia, Ireland, Italy, Japan, Kenya, Malaysia, Mexico,
Morocco, Netherlands, New Zealand, Nigeria, Philippines, Poland, Portugal,
Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain,
Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, UK, USA, and Vietnam.
Tracey Wallace is the Editor-in-chief at the BigCommerce e-commerce platform,
where she covers all issues about e-commerce, marketing, strategy, including
omnichannel and cloud platforming. Wallace (2018) published the 2018 Global
Omnichannel Consumer Shopping Research Report at the BigCommerce e-com-
merce platform. This omnichannel retailing study (Wallace, 2018) was conducted
by BigCommerce on nearly 3,000 consumers surveyed in the APAC region, which
included countries; China, Japan, South Korea, Australia, India, Singapore, Tai-
wan, New Zealand, Thailand, and Vietnam. All statistical details of research
reports are available to be retrieved throughout the links listed in the references
part at the end of this chapter.
 Generational Differences in Omnichannel Experience    125

Retail Shopping Experiences of Gen Z

According to Edmund Mander’s discussion on September 18, 2018, who is the
editor-in-chief of ICSC that surveyed over 1,000 of 13–19-year-old respondents
in 2018, Gen Z shoppers increasingly prefer shopping in physical stores to buying
online. ICSC is a global retail real estate industry community network founded
in 1957 with 70,000 members. According to the same study’s findings (Mander,
2018), when buying health- and personal-care products, 84% of Gen Z most often
use physical stores, and 77% do so for apparel and footwear. For electronics pur-
chases, 63% most frequently use brick-and-mortar stores. These numbers increase
when those who usually purchase online from retailers also started to step in
physical stores. Overall, 93% of Gen Z shoppers use retailers with a physical store
presence for their apparel and footwear purchases; 83% do so for electronics pur-
chases, and 95% buy health- and personal care products from such retailers. The
survey (Mander, 2018) also found that this is also a generation that likes shop-
ping centers. 76% agree that physical stores provide a more well-rounded and
joyful shopping experience than online shopping. Gen Z shoppers visited a mall
8.6 times during the three months preceding the survey, and, overall, 95% of this
age group went to a mall during the survey period. 58% say they go to physical
stores because it is a fun social activity to share with friends and family; the same
proportion mentions the ability to see, touch, and try on merchandise, despite
being “digital natives.” 53% say it is the ability to get the item immediately that
convinces them to go (Mander, 2018).
According to Katie Young (2017) who is a Strategic Insights Manager at
GlobalWebIndex research company and explores the data gathered from 940,000
internet users from 45 countries at ages 16–64 between years 2012 and 2017,
almost 70% of Millennials are shopping online, but that doesn’t necessarily mean
businesses should abandon brick and mortar. Customers are still split half-and-
half on their preferences of online shopping versus in-store shopping, while in-
store shopping stands as being the dominant channel for Boomers and Seniors.
Gen Z omnichannel experience worth to be analyzed through these new multidi-
mensional aspects.
As Young (2017) mentioned, while 46% of Gen Z mentioned their concern
about their health and mental well-being, only 38% of Millennials were interested
in the same issue. Nearly a quarter of Gen Z respondents, by 23% surveyed, said
the news stressed them, and 22% of them reported being overwhelmed by social
media. But even though Gen Z seems socially and environmentally conscious,
they’re unwilling to pay more for those products. Although more than half told
that they were looking for environmentally sustainable products, only 38% of
them agreed to pay an additional premium for them. According to past research
(Young, 2017), retailers should also be more attentive to customer service and
shopping experiences, in both stores and online. An imperfect prior online experi-
ence has prevented 22% of Gen Z shoppers from making a future purchase three
to five times in the past year. In a store, that rate rises to 24% (Young, 2017).
When it comes to apparel shopping, Gen Z’s offline spend of $155 per purchase
is nearly the same as the online spend of $164. That’s compared with an online
126    Bilge Baykal

consumer electronics spend of $182 versus $125 for offline and online toys/games/
sporting goods spend of $124 versus $94 offline (Young, 2017).
According to a recent study by Criteo (2018), which is a commerce market-
ing company in Paris, Gen Z spends more time on mobile devices than any other
generation. Criteo (2018) conducted this research on Gen Z respondents from the
United States, United Kingdom, France, Germany, Brazil, and Japan to under-
stand what they think about shopping. According to the study findings (Criteo,
2018), 32% of all Gen Z shopping transactions take place on a mobile device, and
– not counting work and e-mail – they average 11 hours of online access each week
via mobile and a little more than 9 hours of online access each week via a desktop
device. Further, they stream more content from TV shows and online videos to
music and podcasts than their older generations. 52% of Gen Z access Snapchat
multiple times a day, compared with 52% for Instagram, 55% for Facebook, and
just 23% for Twitter. This Instagram generation lives by visuals, and expects their
retailers to make the store display cool, show how products are used, and feature
them in their best light. They have to be desirable, accessible, and touchable. Since
Gen Z crowd craves novelty and experience, online-only retailers can garner mar-
ket share by entering the world of bricks and mortar.
Criteo’s study (2018) found that 67% of Gen Z consumers use their phones in-
store to research purchases they are considering, while 65% don’t like to buy new
things unless they can “touch the items.” Additionally, Criteo (2018) mentioned
that 71% enjoy shopping in stores to understand what’s in style. Retailers and
brands that embody Gen Z values offer a personalized experience, limited-edition
merchandise, unique products, good-looking stores, and authentic brand stories.
In the study findings (Criteo, 2018), about 42% of Gen Z said excellent store
design matters, while 40% cited unique merchandise as necessary. Also, 36% said
they wanted better ways to try on a product, while 34% showed displays showing
product use as necessary.
The same study (Criteo, 2018) disclosed that 34% said they are “webrooming”
by researching online and buying in-store, whereas 18% said they are showroom-
ing, or seeing it in a store and them buying it offline. More importantly, Gen Z
likes the hunt factor, particularly for health and beauty products. 51% said they
compare products within site, 30% regularly visit multiple web sites, and 28% put
items in a cart without purchasing right away. Further, 38% find it challenging to
find what they need or love online, while 35% don’t feel comfortable making pur-
chases online. On the e-commerce side, 62% of shoppers said sites could improve
their conversion with more discounts, while 58% prefer free returns. Also, 62%
said they like to consider discount ads on other websites for things they love
shopping.

Conclusion and Recommendations

Recommendations
In future’s omnichannel strategy management, retailers need to address the
demands of Gen Z, including greater variety, a more seamless shopping experience
 Generational Differences in Omnichannel Experience    127

across platforms, convenient payments, enhanced authenticity and transparency,

and more profound technology experiences. Solutions might depend and vary by
retailer, market, and product.
First of all, retailers should be sure that their message is clear. They should
deliver the same message for e-commerce, social media, and in-store. They also
should ensure that employees are living their brand and knowing what it stands
for. While it’s important to deliver messages that are consistent across channels,
sometimes the specifics need to play out differently in different places like the ones
in a physical store. Since Gen Z is not leaving in-store shopping and expecting
value from those experiences, physical stores should not be ignored in the overall
omnichannel strategy.
To make in-store shopping experiences more remarkable for Gen Z, retailers
should offer more leisure-and-entertainment options like venues as trampoline
parks and indoor skydiving and laser-tag facilities, movie theaters, bowling lanes,
billiard halls, or video arcades. Food-and-beverage offerings might also make
Gen Z shoppers visit malls more often.
Retail Consultancy company WSL mentions that consumers overall are
increasingly agnostic about channels, chains, and brands (Marks, 2019). To reso-
nate with customers, especially with Gen Z on an emotional level, it suggests
answering the three questions of their questions:

⦁⦁ Will I save time? 76% of shoppers surveyed by WSL said that saving time is a
top motivator for their shopping choices.
⦁⦁ Will this make me feel smart? 44% said that before shopping, they ask them-
selves, “Is this a good allocation of my money?”
⦁⦁ Will you make this trip easy? 46% of shoppers choose shopping destinations
that simplify their lives, and 44% prefer those that help reduce stress.

Another suggestion is convincing customer to collaborate for the brand by

inviting them in the design process in an authentic way to help influence their
decisions (Marks, 2019).
Gen Z appreciates diversity and self-dependency. They like personalization
and expressing themselves in a sense of uniqueness. They want to take control of
their lives. Considering that they also want to be in control of their purchasing
choices, retailers should assume that Gen Z prefers gift cards to gifts. Even as
they are highly socially conscious, retailers should embrace transparency, ethical
practices while promoting causes and values.
Gen Z loves in store-experience as well as online experience. So, as theory
suggests (Piotrowicz & Cuthbertson, 2014), customers expect online and offline
channels to support each other, which requires online and offline store images
to be integrated smoothly to provide positive experiences. As Blom, Lange, and
Hess (2017) offer, omnichannel retailing can have positive effects on the customer
experience, and companies might use digital technologies to improve customer
experiences in both online and offline stores. Retailers might use digital technolo-
gies to offer information, facilitate product comparison, or help customers locate
products that might eliminate the adverse effects of crowds in physical stores with
128    Bilge Baykal

digital self-service technologies, as Piotrowicz and Cuthbertson (2014) noted. If

customers can find information in another practical way, they will not have an
urgent need for service representatives. Virtual rooms and mirrors which Gen Z
admires also let them see how products complement their looks or lifestyle. With
digital technologies, retailers may be able to offer some online benefits to Gen Z
in physical stores as well.
This chapter aimed to create an understanding of the omnichannel experi-
ences of Gen Z. According to the findings of past literature, retailers can dif-
ferentiate their brands from those of competitors by offering superior online and
offline experiences, which might lead to the loyalty of Gen Z. Gen Z loves in-store
shopping, but when the store is busy, it might be impossible to offer them the
psychological benefits of in-store shopping. With digital solutions, retailers can
offer some of the same benefits that salespersons provide. Digital technologies
can help customers to find information and compare products so that they will no
more need salespersons. By seamless omnichannel experiences, retailers can make
Gen Z loyal to their whole brand, not only to online stores.
A new concept called unified commerce might also support the success of
a seamless omnichannel strategy for companies. Unified commerce is different
from omnichannel in that it refers to the technology strategy enabling those
omnichannel experiences. Retailers with unified commerce strategies aren’t trying
to integrate data that sit in different point-of-sale, order and inventory manage-
ment, and Customer Relationship Management systems. Instead, they have one
database, with one version of the truth. That’s something that only a unified view
of customer, inventory, and order data can enable. A recent Boston Retail Part-
ners survey disclosed that only 28% of retailers are using these technologies right
now. Still, they predict that nearly 81% of them are expected to apply unified
commerce platforms by the end of 2020 (Rhodus, 2018). Unifying customer data
across the enterprise and matching data and identity across multiple channels,
platforms, and devices might enable marketers to build the personalized experi-
ences that consumers expect. Building an owned identity asset that can enrich
continuously over time becomes more robust and valuable with every customer
interaction, which enables staying in control of customer data and identity.
To have unified commerce technology strategies enabling omnichannel expe-
riences, retailers started to consider cloud-computing platforms to transform
their businesses. These cloud-computing platforms enable attaining a real-time,
360-view of customer, order, and inventory data, and it empowers the retailer to
blur the lines that previously prohibited channels from communicating with one
another. Because product inventory becomes transparent across channels, includ-
ing physical stores, these stores can become more like fulfillment centers, where
in-demand experiences are delivered in a manner that delights customers, and
optimized according to location and buyer needs (Rhodus, 2018).
Another tool that might support the omnichannel experience is building cus-
tomer journey maps. A customer journey map is a simple idea which indicates a
diagram that illustrates the steps of customers who go in engaging with any com-
pany, whether for the sake of a product, an online experience, retail experience, or
a service, or any of these combinations. The more touchpoints companies have,
 Generational Differences in Omnichannel Experience    129

the maps become more complicated but also more necessary. Journey maps work
because they infer to humans’ visual nature, tell a story, and frame the experiences
in an emotional context (Richardson, 2010).
To build a customer journey map, companies should choose a specific goal to
work on, and then describe a particular scenario about the usage of collections
that will shed light on the process. Customers’ journeys are described in terms of
each step they take. What are they doing and why? What are they thinking? When
they take a step, how do they feel about what happens? Touchpoints are identified
starting from the first interaction as well as the customers shift through differ-
ent channels such as website, in-store, live chat, social media. The data gathering
should be finished by recording the insights of each interaction by identifying
gaps and areas of friction. As the last step, the journey should be mapped out
visually to identify the actions and emotional responses. By mapping the journey,
companies might have a powerful way to share customers’ insights across the
organization while they have a story to tell and a visualization to show. Since Gen
Z perceives an emotional aspect during in-store experiences, customer journey
mapping might help companies to understand this generation’s real relief and
stress points during their omnichannel experiences. At the same time, they shift
through the channels (Richardson, 2010).

Conclusion
The opportunity to touch and try on a product before purchase is becoming
less concern for today’s shoppers. Customers enjoy the convenience of shopping
online but prefer the tactile experience of feeling, touching, and trying-on apparel.
Having an e-commerce shop in addition to a physical store always complements
offline business due to customers looking at the site before stepping into a retail
store. By this respect, retailers see an increase in their both online and offline retail
sales volumes if they add an online facility to their offline presence.
Millennials have grown accustomed to convenience, speed, and personal-
ized online experience. However, Gen Z was already born into this world and
has never known shopping without these. They’re more brand agnostic and act
with deliberation on brand promises. Therefore, it is crucial to personalize their
on-site experiences and acknowledge their individualities to win them over. The
most significant generational omnichannel experience difference is that younger
demographics are more inclined to shop and purchase on mobile. These shoppers
are used to the online lifestyle of convenience and delivery speed. They tend to
spend their time on their mobile devices in between classes, commuting, or while
binge-watching their favorite show.
In larger metro areas, younger consumers are more opposed to any shopping
behavior that puts a burden on their time. They’re interested in practical ordering,
fast delivery, and easier returns. Older consumers seem more willing and comfort-
able using digital channels for research and information gathering that mostly
leads to an in-person purchase through a branded retail store.
How each generation leverages mobile during shopping activity is the most
exciting difference across demographics. Younger demographics seem to have
130    Bilge Baykal

little or no fear around the idea of buying from a new brand using new apps.
It’s become a common trend among up and coming brands that are launching
directly on Instagram and is an experience that younger demographics don’t find
strange, untrustworthy, or unsafe. On the other hand, older generations are still
looking for a more traditional and secure experience when buying. There’s little
appetite for one-to-one transactions unless there’s a middleman (i.e., Etsy/eBay)
as they prefer buying from an e-commerce experience that feels more traditional
and secure. Payments issue is also a good example of something that’s changed
in recent times. Younger consumers expect the opportunity to pay in interest-free
installments or post-delivery and ready to use mobile payment systems like Apple
Pay or Android Pay for additional convenience.

Future Research Directions and Limitations of the Study

As with any study, the conclusion and recommendations of this chapter must be
evaluated in light of some limitations. It should be noted that this chapter devel-
ops interpretations and solutions based on the findings of the previous inter-
view and survey studies from various researchers. Thus, future studies should
collect more empirical data about the topic. The omnichannel perspective is
quite a new topic in marketing research, so there is not much research about
it, primarily based on generational differences. New technologies are develop-
ing all the time, and customer behavior changes with these new solutions. The
omnichannel perspective should be further researched, and the theory updated
as technology evolves. Conclusively, future research should also test the effects
of in-store experiences by using quantitative methods such as longitudinal
surveys or experiments. New channels, such as mobile applications and social
media, are modifying customer experiences, and further research might quanti-
tatively verify their relationships with online and offline stores and their impact
on brand experiences, especially for the most critical growing demographic seg-
ment of Gen Z shoppers.
In-depth interviews and projection techniques can also be applied to Gen Z
consumer groups to verify their interest in shopping in physical stores. Psycho-
logical traits and living conditions might also be considered in terms of their
effects on satisfactory omnichannel experiences.

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