
A recent study titled “The Event Effect: Gen Z Retail Survey” conducted by MERGE, a leading technology and marketing services provider, has revealed the strong link between live events and Generation Z’s spending habits. Despite Gen Z’s reputation for being budget-conscious, live events often trigger impulsive spending. According to the survey, 85.8% of the 1,000 respondents admitted to exceeding their budget at events, with the excitement and atmosphere fueling their spending.
Insights from “The Event Effect: Gen Z Retail Survey”
MERGE tracked the spending habits of 1,000 Gen Z consumers attending concerts, sporting events, and festivals over the summer. The study identified key spending areas, with Food & Beverage (41.3%) and Apparel & Accessories (33.7%) topping the list of purchases made for events. Nearly 70% of respondents attending fashion and beauty events reported that their primary focus was on apparel and accessories.
Key findings from the study include:
- Impact of Brand Activations: Events play a significant role in influencing Gen Z’s purchasing decisions, with 64% of respondents reporting purchases driven by event advertising. Those influenced by brand collaborations were more likely to attend food fairs and fashion events.
- Popular Event Categories: Professional sports and music festivals emerged as the most popular events for Gen Z. The study also highlighted the importance of authenticity in appealing to this generation, with low reliance on perceived social status.
- Sustainability Less of a Factor: Contrary to popular belief, sustainability ranked low in event attendance decisions. However, brands aiming to connect with Gen Z need to avoid greenwashing and focus on authenticity.
- Impulse Spending: Male attendees were more likely to engage in impulse purchases, especially at sports, tech, and innovation events. They also preferred research via video reviews, podcasts, and AR/VR technologies.
- Emotional Spending: Female respondents were more prone to overspending due to emotional connections and FOMO (Fear of Missing Out), especially at arts, culture, fashion, and beauty events.
- Generational Differences: Older Gen Zs (ages 25+) tended to overspend for convenience and accessibility, while younger Gen Zs (under 25) were more focused on social causes, peer trends, and diversity.
“These insights highlight how events serve as a key driver for Gen Z’s aspirational and discretionary spending, despite their budget-conscious nature,” said Stacey Hawes, Chief Performance and Data Officer at MERGE. “This presents a unique opportunity for brands to authentically engage Gen Z in the areas of fashion, entertainment, and sports, where they are willing to invest more than planned.”
Gen Z Summer Event Diaries
Alongside the national survey, MERGE tracked the spending habits of seven Gen Z consumers attending events over the summer. These participants kept diaries, sharing how they planned for events, engaged with event advertising, and interacted with social media.
One respondent, a soccer fan, shared how the event atmosphere influenced their spending. “At events with my friends, I can easily be convinced to buy random things. The event atmosphere and being with friends make the logic go away,” said Sash, 23, after attending an Atlanta United soccer game.
Another participant, attending their first NASCAR race, was inspired by event fashion. “Seeing so many people wearing cowboy boots made me want to get a pair too,” said Tyra, 25, after attending NASCAR Weekend at Pocono Raceway.
A third participant highlighted how events can alter purchasing timing. “I had planned to buy a white camp collar shirt to embroider, but since I was going to the event, I decided to get it sooner,” said Armaan, 24, who attended Governors Ball Music Festival.
Methodology
MERGE’s “The Event Effect: Gen Z Retail Survey” was conducted from July 10-18, 2024, with 1,000 Gen Z respondents. The survey explored spending patterns and the influence of brand activations at events. Seven additional participants were selected for a project in which their event-related spending was tracked, documenting their purchases and social media activity.
About MERGE
MERGE blends storytelling with technology to promote health, wealth, and happiness. Offering services in strategy, creative communications, performance marketing, and more, MERGE partners with top brands like American Express, T-Mobile, and Meta. With over 750 employees across multiple offices, MERGE helps clients create deep connections with their customers.