In February of 2018, Forbes magazine released an article on 13 Strategies For Marketing to Generation Z. This is an article that essentially focuses on the 13 key values within the Gen Z group that can be exploited for profit. The points that are the most relevant to our present community would be values of: Individualism, Customer Experience, and Values Based Selling. According to the catalyst.org article Generation Z: The Future Workforce: Trend Brief, Gen Z is very much a generation that focuses on Globalism, and Inclusivity. People are valued as individuals. This behavior is reflected in consumer habits; Gen Z’rs are oriented toward spending that is sustainable, and quality oriented.

To put it simply, we want the ‘Why’ aspect of our consumer experience before we swipe the plastic. As a Generation born into a recession, to then enter into a global pandemic, it is fair to want to understand where our money is going. After all, markets are beginning to notice that Gen Z is a reclusive generation that retains more interest in social media trends, than in the traditional consumer market. According to the Business Insider, shopping trends for major brands are down. Sustainable brands, thrift stores and repurposing shops are in and prevalent among social media users. This is because students have more of an interest in preserving, and repurposing instead of simply consuming.

Take a cup of coffee as an example. With the busy student life, this is easily one of the most common grabs while on the go. What will be going through each Gen Z’rs mind, when purchasing this cup of liquid gold, is the question: Where is my money going?

The economics behind local coffee can be split into two sections; the first section is associated with local shops, and local roasters. The second is oriented towards regional, and national chains that have migrated to the area. Shops like Dancing Mule Coffee on Glenstone, Big Mama’s Coffee and Espresso Bar on Commercial Street and European Café on Park Central East count as local shops. Shops like Starbucks, Scooters, and 7 Brew count as regional/national chains. Purveying the establishments as a consumer has led to a few estimates on the average price of the two most commonly purchased coffee items: the classic drip coffee, and the latte. The average latte for a local shop is $3.50 with the average drip coffee being $2. The average latte for a chain is $4.00 with the average cup of coffee being around $2.50.

The prices when compared side by side do not vary intensely. However, following the three discussed topics above it will come down to Values Based Selling (VBS), and Customer Experience (CX). Students seek coffee from brands they agree with, and those they can afford. VBS of local shops often includes offering local produce in their treats they buy with coffee, or benefits to the community. CX in local shops refers to the barista learning their name and making small substitutes for them here and there that wouldn’t otherwise be accommodated in chains. VBS in chains has more to do with the marketing and branding offered by becoming a consumer of that chain. This includes gear with logos, and the stamp on the cup. CX often focuses on how quickly a consumer is serviced while retaining quality standards for the drink.

The importance of shopping local lies in both price research and understanding the personal significance to the buy that is being made. The profit a local shop makes on their coffee goes back into the community around it to help that community grow. Chain coffee is more focused on growing a brand/lifestyle associated with their product. Both have their merit, but with the entire economy currently being on a budget, it is necessary to look at the ‘Consumer Experience’ aspect of the buying equation. What is going to make the difference for Generation Z is the question of how that $3.50-4.00 for a cup of coffee is going to make a difference in the long run.

Professor Tony Smith is a resident professor in the Spanish department. He focuses on culture, and teaching students to be responsible travelers in other countries. He has traveled throughout Europe, and to parts of Asia. Smith says, “For me it’s about the experience. I normally make my own coffee at home, but if I’m going to buy a coffee while I’m out it should be worth it. I understand the appeal for the small shops, because of the friendliness of the people as I drink, and read my paper.” Being choosy about a shop is causing the economy to have to adapt to the needs of Gen Z.

Article by Shelbi Karki