Gen Z’s smartphone addiction may be fueling compulsive shopping – but companies can support them kick the habit

Gen Z’s smartphone addiction may be fueling compulsive shopping – but companies can support them kick the habit

People born in the mid-1990s and early 2010s – the so-called Generation Z – face many financial challenges, from more expensive apartments Down lower salariesMany people are already postponing life plans, such as buying a house and saving for pension as a result. However, recent research into the link between smartphone addiction and compulsive shopping behavior in this age group shows the potential for even greater financial harm.

Generation Z is creating third the world’s population and it is estimated that it will spend $143 billion (£124 billion) per year and also has a significant impact on family expenses. Generation Z also tends to have some unique financial traits. For example, they are financially orientedthey are worried about their future prospects and have entrepreneurial attitude.

Growing up in a world of the internet and digital technology, this age group tends to spend a lot more time online than others. In fact, some research shows 55% of Gen Zers apply their smartphones for five or more hours a day, and 31% feel uncomfortable if they are without their phone for even 30 minutes or less. In addition to being a primary tool for social interaction, smartphones are also an increasingly popular way for this generation to shop.

Such a high dependence on phones can be interpreted as unhealthy, and smartphone addiction among Generation Z has been previously shown to cause various mental health issues such as stress and Bowand is also related to escapism. New research Research my colleagues and I conducted also found that smartphone addiction among this generation of consumers is closely linked to compulsive shopping behavior.

Compulsive buying is an addiction associated with feelings of guilt, hurt and the repeated need to buy goods that may be low-cost and useless. These purchases are usually made without any consideration of the financial consequences, which is worrying in normal times but especially so when consumer prices in the UK are set to rise by over 13% this winter.

Mood management

Data for our research were collected through a survey conducted among students aged 18 to 24 attending secondary schools and universities. the results suggest There are two factors that strengthen the link between smartphone addiction and compulsive shopping behavior in this age group.

Firstly, youthful people addicted to smartphones may apply these devices to cope with unpleasant situations moods and deal with negative emotions. Secondly, we found that this can lead a person to “flow state”, meaning they are completely absorbed in an activity – in this case, browsing their phone. They experience pleasant feelings and lose track of time.

Compulsive buyers also experience a short-term mood boost when making a purchase, which acts as a positive reinforcement and encourages them to continue shopping. Additionally, online shopping allows people to buy things without using cash and remain hidden from the scrutiny of others. These features can also trigger compulsive buying behavior.

All of this means that smartphones can be an incredibly straightforward way for compulsive Gen Z shoppers to satisfy their uncontrollable shopping urges. So what can be done to support them save money for their financial future?

Online retailers can take steps to support prevent compulsive buying.
FitZtudio / Shutterstock

Possible solutions

Gen Z customers with compulsive shopping behavior need support to break this habit, especially in the current economic crisis. This support can take many forms. Public institutions, especially those involved in education, could develop ad hoc programs to educate people about the risks of smartphone addiction.

In addition to compulsive buying, this can impact performance Work AND schoolProper financial education should also be standard for this generation, not to mention every other age group.

But what about the companies themselves? It may seem ridiculous that a retailer would sacrifice sales growth to smartphone-driven compulsive buying, but it could be an opportunity to act socially responsible.

For example, retailers could develop algorithms that identify Gen Z consumers with compulsive shopping behavior, remove them from shopping newsletters, or introduce limits on how much money they can spend within a certain time frame. Such targeted actions by online stores and brands could strengthen these companies in the eyes of consumers who more and more value corporate social responsibility.

The cost of living is already high main problem for Generation Z. Implementing ethical and socially responsible marketing to reduce the risk of compulsive buying and foster a culture of responsible spending could address some of the economic uncertainty that this generation currently faces.

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