Analysis of Generation Z Consumer Behavior in the Food and Beverage Industry in Indonesia: The Influence of Product Personalization, Social Media Engagement, and Brand Experience

Authors

  • Dyah Ayu Suryaningrum Universitas Sebelas Maret
  • Eva Yuniarti Utami Universitas Sebelas Maret
  • Hayu Lusianawati Universitas Sahid
  • Najdah Thalib Universitas Musamus Merauke

DOI:

https://doi.org/10.58812/wsjee.v1i07.461

Keywords:

Product Personalization, Social Media Engagement, Brand Experience, Generation Z, Consumer Behavior, Food and Beverage, Indonesia

Abstract

In the Indonesian food and beverage sector, this study examines how brand experience, social media interaction, and product customisation affect Generation Z customer behavior. Data gathered from 150 Generation Z customers was analyzed using a quantitative method that made use of structural equation modeling with partial least squares (SEM-PLS). The results of the study show a strong positive correlation between the behavior of Generation Z consumers and each independent variable, including social media participation, brand experience, and product customisation. The findings highlight how crucial strategic customisation, a strong social media presence, and improved brand experiences are in influencing Generation Z customers' preferences and decisions. These observations have important ramifications for companies who want to modify their marketing plans in order to successfully connect this ever-changing group of consumers in the Indonesian market.

References

A. Popa, C. A. Barbu, and A. E. Ionașcu, “The New Paradigm of Online Marketing: A Study of Generation Z Consumers’ Behaviour and Their Attitude Towards Brands”.

Y. Lina, D. Hou, and S. Ali, “Impact of online convenience on generation Z online impulsive buying behavior: The moderating role of social media celebrity,” Front. Psychol., vol. 13, p. 951249, 2022.

G. F. Pramono and M. S. Purwanegara, “A Comparison of Indonesian and Dutch Generation-Z Preference Shift from Global Fashion Brands to Locals after Covid-19 Pandemic”.

D. E. Laurents and D. Dellyana, “The Influence of Critical Success Factors of Innovative Insurance Product Development Concept Test towards Purchase Intention: An Empirical Study of Millennials and Generation Z as Target Market in Indonesia”.

T. S. Asih and N. Rubiyanti, “Factors Influencing Consumer Online Shopping Behavior During National Online Shopping Day: Perspective of Indonesian Generation Z”.

L.-L. Dragolea et al., “Determining factors in shaping the sustainable behavior of the generation Z consumer,” Front. Environ. Sci., vol. 11, p. 1096183, 2023.

I. Fadhilah and D. T. H. Aruan, “Understanding consumer adoption and actual usage of digital payment instruments: comparison between Generation Y and Generation Z,” Int. J. Electron. Mark. Retail., vol. 14, no. 1, pp. 39–60, 2023.

F. Bartsch, K. P. Zeugner-Roth, and C. S. Katsikeas, “Consumer authenticity seeking: conceptualization, measurement, and contingent effects,” J. Acad. Mark. Sci., pp. 1–28, 2022.

K. Widdicks, C. Remy, O. Bates, A. Friday, and M. Hazas, “Escaping unsustainable digital interactions: Toward ‘more meaningful’ and ‘moderate’ online experiences,” Int. J. Hum. Comput. Stud., vol. 165, p. 102853, 2022.

W. Nadeem, T. M. Tan, M. Tajvidi, and N. Hajli, “How do experiences enhance brand relationship performance and value co-creation in social commerce? The role of consumer engagement and self brand-connection,” Technol. Forecast. Soc. Change, vol. 171, p. 120952, 2021.

S. Schauman, K. Heinonen, and M. Holmlund, “Crafting customer insight: What we can learn from the revival of the vinyl record,” Bus. Horiz., vol. 64, no. 2, pp. 261–271, 2021.

Y. Zong and M. He, “The Impact Imposed by Brand Elements of Enterprises on the Purchase Intention of Consumers—With Experience Value Taken as the Intermediary Variable,” Front. Psychol., vol. 13, p. 873041, 2022.

M. A. Ribeiro, S. Seyfi, S. Elhoushy, K. M. Woosnam, and V. Patwardhan, “Determinants of generation Z pro-environmental travel behaviour: the moderating role of green consumption values,” J. Sustain. Tour., pp. 1–21, 2023.

M. R. Thomas and M. Monica, “Online website cues influencing the purchase intention of generation z mediated by trust,” Indian J. Commer. Manag. Stud., vol. 9, no. 1, pp. 13–23, 2018.

O. Rincón-Guevara, J. A. Samayoa, J. H. Panchal, and A. Deshmukh, “The role of the product design and manufacturing system dyad in efficient personalized production,” J. Mech. Des., vol. 144, no. 10, p. 102001, 2022.

T.-Y. Ou, Y.-C. Lee, T.-H. Chang, S.-H. Lee, and W.-L. Tsai, “Design and Implementation of a Recommendation System for Buying Fresh Foods Online Based on Web Crawling,” J. Adv. Comput. Intell. Intell. Informatics, vol. 27, no. 2, pp. 271–280, 2023.

A.-K. Briem, D. Ziegler, L.-A. Mathis, and D. Wehner, “Sustainable product development by means of personalization–paradox or solution?,” in E3S Web of Conferences, EDP Sciences, 2022, p. 7001.

L. Rusvita and W. D. Mansoer, “The Design Of Customer Knowledge Reporting System Intervention To Improve The Performance Of Medical Representative At Pt. X Buf,” Int. J. Sci. Technol. Manag., vol. 4, no. 3, pp. 560–567, 2023.

H. Ashari and T. P. Nugrahanti, “Household economy challenges in fulfilling life needs during the Covid-19 pandemic,” Glob. Bus. Econ. Rev., vol. 25, no. 1, pp. 21–39, 2021.

T. P. Nugrahanti, “Analyzing the Evolution of Auditing and Financial Insurance: Tracking Developments, Identifying Research Frontiers, and Charting the Future of Accountability and Risk Management,” West Sci. Account. Financ., vol. 1, no. 02, pp. 59–68, 2023.

T. P. Nugrahanti and A. S. Jahja, “Audit judgment performance: The effect of performance incentives, obedience pressures and ethical perceptions,” J. Environ. Account. Manag., vol. 6, no. 3, pp. 225–234, 2018.

T. KANDEKAR, “INFLUENCE OF SOCIAL MEDIA ON PURCHASE BEHAVIOUR OF CUSTOMERS FOR FASHION AND LIFESTYLE PRODUCTS OF TIER II AND III CITIES OF MAHARASHTRA,” 2018.

P. Sethuraman, “Social Media’s Effect on Millennials and Generation Z’s Green Purchasing Habits,” Int. J. Prof. Bus. Rev. Int. J. Prof. Bus. Rev., vol. 8, no. 5, p. 16, 2023.

A. S. Maharani and A. Hidayat, “The influence of brand innovativeness and quality affect consumer perceived value: the role of symbolic brand qualities as mediating,” Int. J. Res. Bus. Soc. Sci., vol. 12, no. 4, pp. 15–32, 2023.

M. S. Satar, D. Aggarwal, R. Bansal, and G. Alarifi, “Mapping the Knowledge Structure and Unveiling the Research Trends in Social Entrepreneurship and Inclusive Development: A Bibliometric Analysis,” Sustainability, vol. 15, no. 7, p. 5626, 2023.

Y. Iskandar, “Pengaruh Modal Sosial, Kapabilitas Financial, Orientasi Kewirausahaan terhadap Daya Saing Bisnis Berkelanjutan serta Implikasinya pada Kinerja UMKM Industri Kuliner di Kota Sukabumi,” Senmabis Semin. Nas. Manaj. dan Bisnis, vol. 4789, pp. 2–19, 2022.

E. Dilah, D. Rahmah, and Y. Iskandar, “The Effect of Profitability and Financial Risk on Earning Management of Mobile Telecommunication Operators That Registered in Indonesia Stock Exchange Period 2015 - 2018,” vol. 2021, pp. 362–368, 2021, doi: 10.11594/nstp.2021.1041.

- Kurniawan, A. Maulana, and Y. Iskandar, “The Effect of Technology Adaptation and Government Financial Support on Sustainable Performance of MSMEs during the COVID-19 Pandemic,” Cogent Bus. Manag., vol. 10, no. 1, p. 2177400, 2023, doi: https://doi.org/10.1080/23311975.2023.2177400.

D. A. Syahputra, “The Influence of Social Media Marketing on Consumer Based Brand Equity, Brand Loyalty, and Mediation by Brand Experience on Fashion Brand Clothing in Indonesia,” Indones. J. Econ. Manag. Sci., vol. 1, no. 2, pp. 183–200, 2023.

N. R. A. Wijaya and B. Simamora, “The Mediating Role of Brand Trust on the Effect of Customer Experience and Engagement on Brand Loyalty: A Lesson From Bukalapak,” in Journal of International Conference Proceedings (JICP), 2023, pp. 72–85.

J. F. Hair Jr, L. M. Matthews, R. L. Matthews, and M. Sarstedt, “PLS-SEM or CB-SEM: updated guidelines on which method to use,” Int. J. Multivar. Data Anal., vol. 1, no. 2, pp. 107–123, 2017.

R. Andriyanty and D. Wahab, “Indonesian generation Z consumer ethnocentrism on food and beverage product,” Tech. Soc. Sci. J., vol. 28, p. 522, 2022.

M. Tjokrosaputro, “EXPERIENTIAL VALUE TOWARD BEHAVIORAL INTENTION OF LOCAL FOOD THROUGH CONSUMER ATTITUDE: INSIGHT FROM GEN Z’S IN JAKARTA,” J. Apl. Manaj., vol. 21, no. 1, pp. 179–190, 2023.

G. Y. Bagaskoro and A. R. Qastharin, “Determining factors that influence indonesian consumers’ sustainable purchase behavior,” in Journal of International Conference Proceedings, 2021, pp. 275–291.

A. Dhingra, “Impact of Social Media on Consumer Behaviour and Preference,” IJFMR-International J. Multidiscip. Res., vol. 5, no. 2.

F. Fan, K. Chan, Y. Wang, Y. Li, and M. Prieler, “How influencers’ social media posts have an influence on audience engagement among young consumers,” Young Consum., vol. 24, no. 4, pp. 427–444, 2023.

P. Singh, C. E. Henninger, C. J. Oates, N. Newman, and P. J. Alevizou, “Children and young people: opportunities and tensions for sustainability marketing,” Journal of Marketing Management, vol. 38, no. 9–10. Taylor & Francis, pp. 831–843, 2022.

G. Genoveva, “Tiktok Platform Opportunity: How Does it Influence SMES Brand Awareness among Generation Z?,” Sriwij. Int. J. Dyn. Econ. Bus., vol. 5, no. 3, pp. 273–282, 2022.

S.-H. Jeong, “Behavioral Analysis of MZ Generation Beauty Consumers-Focusing on Value Consumption and Funsumer Consumption,” J. Korean Soc. Cosmetol., vol. 29, no. 1, pp. 115–123, 2023.

Downloads

Published

2023-07-30

How to Cite

Suryaningrum, D. A., Utami, E. Y., Lusianawati, H., & Thalib, N. (2023). Analysis of Generation Z Consumer Behavior in the Food and Beverage Industry in Indonesia: The Influence of Product Personalization, Social Media Engagement, and Brand Experience. West Science Journal Economic and Entrepreneurship, 1(07), 300–308. https://doi.org/10.58812/wsjee.v1i07.461