Digitalization, globalization, innovation. In an era where the phrase “retail apocalypse” gets shouted across the globe and brick-and-mortar retailers struggle to remain competitive. Rapid technological change is fueling innovation but, is disrupting and upending traditional businesses. Offline retailers realize the need to play catch-up with fast growing online-only retailers that have a data driven approach to steadily improve their operations and understand consumer needs. In a highly competitive industry where the lack of functional differentiation is a catalyst for products and services to become increasingly exchangeable, a competitive advantage can only be created based on customer experiences. Brick-and-mortar stores admit to struggle understanding shopper needs while also facing a new Generation of consumers, that differs to any other known before. The objective of the present work is to determine key success factors in consumer experience required by brick- and mortar in order to successfully attract Generation Z.
Table of Content
1. Introduction
2. Theoretical Principles and State of Research
2.1. Generation Z
2.1.1. Definition and Delineation
2.1.2. Generational Theories
2.1.3. Analyzing Generation Z
2.1.3.1. Personality Traits and Core Values
2.1.3.2. Shift from Millennials to Generation Z
2.1.3.3. Shopping Behavior
2.2. Customer Experience
2.2.1. Emergence of Experience
2.2.2. Customer Experience Management
2.2.3. Customer Journey and Touch Points
2.2.4. Designing In-store Experiences
2.3. Conclusion and Generation of Hypothesis
3. Empirical Research
3.1. Approach
3.2. Qualitative Research
3.2.1. Method
3.2.2. Results
4. Discussion of Results
5. Recommendation for the Brick-and-mortar Retailer
6. Limitation
7. Conclusion and Future Prospect
Research Objectives and Core Themes
The primary objective of this thesis is to identify key success factors for physical, brick-and-mortar retailers to successfully attract and engage the Generation Z cohort, given their unique expectations for a seamless, multi-sensory, and personalized shopping experience.
- Analysis of Generation Z characteristics, values, and shopping behavior.
- Exploration of the customer experience concept and management strategies.
- Investigation of the "in-store" retail environment as a destination for social interaction.
- Role of technology in enabling seamless omni-channel experiences.
- Strategic importance of the sales associate as an "experience host" and brand ambassador.
Excerpt from the Book
2.1.3.1. Personality Traits and Core Values
Generation Z members were born during a period of radical technological changes and have further undergone climate change and the shift towards more cultural diversity.
Globalization Growing up in a globalized world, the generation does not get limited by geographical boundaries. More over members of the cohort have no restriction when it comes to accessing information or connecting to people around the world. Especially obstacles between people with distinctive backgrounds are erased through globalization and digitalization. Therefore, Gen Z’ers are able to join any community, and work their interests (Sparks and Honey 2015, 46). McCrindle and Wolfinger (2010, 105) argue that the presence on the Internet has influenced and connect the cohort through music, movies, but also through trends, fashion, and the language used on various platforms.
Diversity In the aspect of globalization, the significant factor whose role cannot be undermined is diversity. Currently, Gen Z’ers are growing in what can be referred to as a non-traditional social structure, which means that they do not segment between wrong and right, or abnormal and normal. More over, the cohort grew up with knowing that people come from various economic and social backgrounds, nationalities, ethnicities, and races. The critical aspect of Generation Z members is embracing the world as being full of individuals of different sexual orientations and gender identities (Sparks and Honey 2015, 59). Furthermore Folmsbee (2017) notes that individuals from Generation Z are least sexist, racist and homophobic compared to other generations. The outcome of the diversity value has been earning respect from all people with dissimilar backgrounds. For most members of this generation, among the relevant issues include immigration, the rights of women, racial equality and the rights of lesbian, gay, bisexual and transgender.
Summary of Chapters
1. Introduction: Presents the problem of "retail apocalypse" and sets the objective to determine success factors for brick-and-mortar stores to attract Generation Z.
2. Theoretical Principles and State of Research: Establishes the foundations by defining Generation Z, analyzing their traits, and discussing customer experience management and the customer journey.
3. Empirical Research: Describes the qualitative, exploratory research methodology based on expert interviews to understand how to design the physical in-store experience for Gen Z.
4. Discussion of Results: Analyzes the gathered qualitative data to evaluate the research hypotheses regarding the role of social interaction, data-driven personalization, and experience-based retail.
5. Recommendation for the Brick-and-mortar Retailer: Provides actionable strategic advice on transforming retail spaces into multi-sensory, experience-driven hubs and redefining the role of sales associates.
6. Limitation: Critically reflects on the research methodology, acknowledging the exploratory nature of the study and the non-representative sample of experts.
7. Conclusion and Future Prospect: Summarizes findings and provides a final outlook on the evolution of brick-and-mortar retail in an increasingly digital and human-centric world.
Keywords
Generation Z, Customer Experience, Brick-and-mortar Retail, Omni-channel, Digital Natives, Retail Experience, Consumer Behavior, Brand Loyalty, In-store Innovation, Sales Associate, Customer Journey, Service Design, Data-driven Retail, Sustainability, Social Advocacy.
Frequently Asked Questions
What is the core problem addressed in this work?
The thesis addresses the struggle of traditional brick-and-mortar retailers to remain competitive in the face of digitalization and the specific needs of the emerging Generation Z cohort.
What are the central themes of the research?
The research focuses on the intersection of physical store environments, digital integration, human interaction, and the evolving expectations regarding brand purpose and social advocacy.
What is the primary objective of the study?
To identify key success factors for physical retailers to create a meaningful, seamless, and multi-sensory shopping experience that effectively attracts Generation Z consumers.
Which scientific methodology does the author use?
The author conducts qualitative empirical research, specifically performing exploratory expert interviews with professionals from the retail and consulting sectors.
What topics are discussed in the main body?
The main body examines the theoretical background of Generation Z and customer experience, followed by a detailed qualitative analysis of expert interviews concerning store environment, the role of technology, and the future of sales roles.
Which keywords define this work?
The key concepts include Generation Z, Omni-channel, Customer Experience Management, Brick-and-mortar Retail, and Digital Transformation.
How does Generation Z perceive technology in the retail store?
Gen Z expects technology to be "invisible," seamless, and integrated, providing direct functional value rather than being a gimmicky feature.
Why are sales associates considered "experience hosts"?
The role of the sales associate is evolving from a transactional clerk to a brand advocate and host, who provides human connection, empathy, and expertise, serving as a critical differentiator for physical stores.
- Arbeit zitieren
- Kira Hassert (Autor:in), 2018, Key factors in Consumer Experience required by Brick-and-Mortar to successfully attract Generation Z, München, GRIN Verlag, https://www.grin.com/document/495620
