Changes In Consumer Behavior Of Millennials And Generation Z Towards Purchasing Consumer Goods In The Digital Era In Bator Village

Changes in Consumer Behavior of Millennials and Generation Z towards Purchasing Consumer Goods in the Digital Era in Bator Village

Aulia Dawam*¹, Waspodo Tjipto Subroto*², Norida Canda Sakti^3*

^1,2,3Universitas Negeri Surabaya, Indonesia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9010073

Received: 24 December 2024; Accepted: 28 December 2024; Published: 01 February 2025

ABSTRACT

An economic system driven by the use of information and communication technology (ICT) in various economic activities, such as the creation, distribution, and consumption of goods and services, is referred to as the digital economy. Cloud computing, big data, artificial intelligence (AI), and digital platforms have changed the way businesses and economies interact. The digital economy allows business transactions and activities to be carried out virtually, which accelerates globalization and enables innovation in areas such as finance, trade, education, and health. All aspects of human life have been affected by digital transformation, which has become a global trend. In Indonesia, policies that aim to accelerate digital transformation can accelerate economic growth, especially in the creative economy sector. They face infrastructure, literacy, and regulatory issues to accelerate the current transformation. Due to the advancement of digital technology in the era of the digital economy, consumer behavior has undergone major changes. Customers are increasingly engaged and better understand how to choose goods and services along with their increasingly complex needs. Millennials born between 1981 and 1996 saw a change in consumer behavior and Generation Z of those born between 1997 and 2012 had a huge influence on the purchase of consumer goods in the digital age, such as clothing, skincare, toys, food, home décor, and home furnishings. The study identifies changes in millennial and Gen Z buyer behavior when purchasing consumer goods. This research is a qualitative descriptive study on decision-making in the digital era in Bator Village. The focus of this study is the millennial generation and generation Z in Bator Village. The results of this study show that consumer behavior will change from generation to generation.

Keywords: Millennial Generation, and Generation Z, creative economy, digital era

INTRODUCTION

Bangkalan City, located on Madura Island, East Java Province, Indonesia, is a strategic and important area. As the capital of Bangkalan Regency, this city is the main gateway to Madura Island through the Suramadu Bridge, which connects Madura with the city of Surabaya. Its strategic location makes Bangkalan the center of economic, trade, and cultural activities in the West Madura region. One of the areas in Bangkalan Regency is Bator Village, which is located in Klampis District. The village has unique social, cultural, and geographical characteristics with a population of about 4,000 people. Most of the people of Bator Village make a living as farmers and fishermen, taking advantage of the fertile natural conditions and its proximity to the sea.

Bator Village is dominated by millennials and generation Z, who grew up in the era of technological development. These two groups bring significant changes in various aspects of life, including consumption patterns. With the advancement of information technology, such as internet penetration and the use of mobile devices, the people of Bator Village are now more familiar with digital platforms such as e-commerce, social media, and shopping applications. This creates new consumption patterns influenced by ease of transactions, product diversity, and digital promotions. However, these changes also pose challenges, such as impulsive consumption, dependence on technology, and the reduced role of traditional markets that were previously the center of the local economy. In addition, varying digital literacy is an important factor that affects the pattern of technology adoption in the consumption sector.

This digital transformation is closely related to the concept of the creative economy is the fourth wave of the economy, after the wave of agrarian, industrial and information economy. The creative economy is an economic concept that focuses on ideas, ideas, and creativity as the main capital in driving the economy. The creative economy is expected to become the backbone of the Indonesian economy in the future (Yunus, 2019: 325)

The impact of disruptive information technology on consumer behavior is significant. Advances in information and communication technology allow consumers to do research, compare prices, and share experiences quickly. Consumers are becoming more critical, selective, and informed in making purchasing decisions. Consumer reviews on digital platforms, social media, and e-commerce are now the primary source of information that influences purchasing decisions. In the digital era, consumers expect a more personalized and seamless shopping experience through omnichannel technology, both online and offline. However, on the other hand, these innovations also bring challenges, both in terms of regulations, employment, and socio-economic impacts. Based on previous research, the application of disruptive information technology in Indonesia has shown a significant increase. Indonesia’s MSME (Micro, Small, and Medium Enterprises) sector is starting to benefit from digital technology that accelerates business processes and market access. He stated that Fintech It has changed the paradigm of financial services to be more inclusive and efficient, but still faces challenges related to policies and regulations. The importance of understanding the impact of disruptive information technology is not only limited to the potential benefits that can be obtained, but also includes the risks that may arise in rapid digital transformation. Therefore, further studies on how to deal with and manage the impact of disruptive information technology are essential to optimize its benefits for Indonesian society and economy.(Prameswari et al., 2023:331) (Yuniarti et al., 2022:17) (Quin et al., 2014:201) (lbs, 2022:114)

Generation Z and the Millennial generation are two demographic groups that have become the focus of attention in social, economic, and cultural studies. The Millennial generation, born between 1981 and 1996, is known as a group that grew up amid technological advances and rapid social change. Meanwhile, Generation Z, who was born after 1997, is the first generation to fully grow up with digital technology, making them highly connected and exposed to global information from an early age. These two generations have different characteristics in terms of values, ways of interacting, and approaches to work and education. Millennials tend to value flexibility in work more, while Generation Z is more pragmatic and realistic, focusing on financial stability and security. Understanding these differences is critical, especially for companies and educators who want to reach and motivate both generations.(Dimock, 2019:48)

The development of the digital era has had a profound impact on people’s behavior and consumption patterns. In recent years, advances in information and communication technology have changed the way consumers interact with products and services. Easy access to the internet, social media, and e-commerce platforms has created an environment where consumers can quickly conduct research, compare prices, and share experiences. Therefore, understanding the influence of the digital era on consumers is essential for businesses to adapt and innovate in their marketing strategies. (Gunawan, 2021:349)

The rapid development of digital technology has brought significant changes in various aspects of human life, including consumer behavior. Technology has changed the way consumers search for information, interact with brands, and make purchases. In this digital era, consumers are becoming more informed, have easy access to a wide selection of products, and can quickly compare prices and quality. One of the major impacts of technology is the rise of e-commerce and social media platforms that allow consumers to make purchases online. Consumer behavior has changed from being previously influenced by traditional factors such as advertising and direct recommendations, to being more influenced by consumer reviews, social media, and search algorithms. Modern consumers tend to seek information through the internet, either through search Google, product reviews on e-commerce, as well as recommendations from social media, before making a purchase decision. Furthermore, the development of information technology also plays an important role in personalization and prediction of consumer behavior. Data-driven technologies such as big data, artificial intelligence (AI), dan machine learning allowing companies to study consumer preferences more accurately. Through this technology, companies can personalize offers, provide relevant recommendations, and predict future consumer needs. This change in behavior is not only happening in the way consumers buy products, but also how they engage with brands. Today’s consumers expect more personalized interactions and seamless experiences across multiple digital channels. Omnichannel technology has enabled a consistent consumer experience across multiple platforms, both online and offline. In other words, consumers now want a more integrated and dynamic shopping experience. However, technology also brings new challenges for consumers. The emergence of phenomena such as “information overload” and the reliance on digital technology makes it difficult for consumers to make rational decisions at times. According to previous research, although technology can provide convenience, the excessive amount of information can also make consumers confused and hesitant in making decisions (Simonson & Rosen, 2014). In this context, the role of technology in changing consumer behavior is increasingly important for marketers and businesses to understand. By understanding how technology affects consumer behavior, companies can devise more effective and relevant marketing strategies in this digital age. (Change Management in Facing Challenges and Optimizing et al., 2023:117) (Mahesvara Vira Yoganatha, 2024:279)

The digitization of e-commerce has become one of the main phenomena in the development of the global economy, including in Indonesia. This digital transformation is affecting the way consumers shop and interact with businesses. In the Indonesian context, the rapid growth of internet users and the accessibility of digital platforms have encouraged many business actors to adapt to online business models. Digitalisasi e-commerce not only improve operational efficiency, but also expand market reach for small and medium enterprises (SMEs). Therefore, it is important to understand more deeply about the dynamics of e-commerce digitalization in Indonesia to face challenges and take advantage of existing opportunities. (Sudirjo et al., 2023:115) (Suryanadi et al., 2024:353)

The Millennial Generation (born between 1981-1996) and Generation Z (born after 1997) are two demographic groups that have a significant influence on global consumption patterns. Although both are in the digital age, there are fundamental differences in their behaviors, preferences, and expectations for the products and services they consume.

Millennial Generation Consumption Behavior

Millennials are known as a highly digitally connected group. They grew up in the transition from analog to digital technology, so they are more accustomed to using a wide variety of social media and e-commerce platforms. This generation tends to seek a more personalized experience in consumption, including demanding transparency and social responsibility from the brands they use. Millennials prefer brands that have a positive social impact and tend to be loyal to brands that share their values, such as sustainability and social responsibility.

Generation Z Consumption Behavior

On the other hand, Generation Z was born entirely in the digital age, making them ” digital natives”. Their consumption patterns change faster and are influenced by social media trends in real-time. Gen Z values access more than ownership, so services such as subscriptions and product sharing economies are increasingly popular among them. They are also more critical of brands, especially in terms of authenticity and inclusivity. This generation has higher expectations for the personalization of data-driven products and services, as well as prioritizing brands that support social issues that they consider important, such as inclusivity and environmental sustainability.

Main Differences Between Millennials and Gen Z

While both generations use technology in consumption, Generation Z prioritizes seamless and instant digital experiences, while Millennials tend to value interactions that build long-term relationships with brands. Millennials are more loyal to brands that they consider to fit their personality, while Gen Z is more dynamic and open to trying new brands, especially those that have elements of innovation or new trends. Thus, understanding the differences in consumption patterns between Millennials and Gen Z is essential for companies to tailor their marketing strategies to be effective in attracting the attention of these two groups. (Francis & Hoefel, 2018:7)

In today’s digital age, consumer reviews and digital content play an important role in influencing consumer behavior. The development of information technology has changed the way individuals seek information and make purchasing decisions. Online reviews available through the platform e-commerce can significantly affect product sales.  These consumer reviews give an idea of the product experience that cannot be obtained from official marketing information. The role of digital content is also increasingly significant in influencing consumer decisions. Digital content, such as product review videos, blog articles, and social media, provides consumers with more comprehensive and authentic information. Reviews that have certain characteristics, such as reviews that are considered informative, credible, and relevant, can amplify their influence on consumers’ purchasing decisions. This shows that the quality of reviews, not just the number, is also important in the consumer decision-making process As the platform’s popularity increases, e-commerce and social media, consumers are increasingly relying on digital content as the main source of product information. Recent research by Filieri et al. (2021:48) also confirmed that reviews posted by users on digital platforms not only influence purchasing decisions but also shape consumer perceptions of product quality and brand reputation. (Filieri et al., 2015:17)

The digital era has brought significant changes to various aspects of life, one of which is consumer behavior. In this context, the digital era refers to the development of information and communication technology that affects the way individuals interact with products and services. Internet, social media, e-commerce, and various other digital platforms have expanded consumers’ access to information, allowing them to make smarter and more efficient purchasing decisions. However, this transformation also presents challenges, including increased consumer expectations for quality and service as well as shifts in preferences and consumption patterns. Changes in consumer behavior in the digital era are caused by three main factors: easier access to information, an increased role in reviews and recommendations from other users, and a more personalized shopping experience through digital technology. Consumers are no longer only influenced by traditional factors such as price and product quality, but also by how a brand interacts with them online, including on social media and review sites. In addition, today’s consumers are increasingly relying on technology in the decision-making process. They tend to do product research through various digital platforms before making a purchase, and this gives consumers greater power to compare prices, quality, and reviews from various sources more quickly and easily. One of the real impacts of the digital era is the emergence of consumer behavior that is more aware of their choices. Consumers now tend to be more critical and selective about the products and services they consume. This is reflected in the increasing importance of user reviews and a brand’s online reputation, which can significantly influence purchasing decisions. (Gillpatrick, 2019 : 139-156)

METHODOLOGY

This study adopts a descriptive qualitative approach (I. N. Sari et al., 2022). The main purpose of this study is to identify the differences in consumer behavior changes between millennials and generation Z in decision-making to purchase consumer goods in the digital era, especially in Bator Village. The respondents of this study are 20 members of the millennial generation and generation Z who live in Bator Village, Bangkalan District, with details of 10 from the millennial generation and 10 people from generation Z. They come from various backgrounds, such as farmers, fishermen, civil servants, entrepreneurs, students, students, as well as members of the TNI and POLRI. Respondents from the millennial generation are between 28 and 43 years old, while respondents from generation Z are between 12 and 27 years old. Data collection was carried out through interviews and observations. The data used consisted of primary data obtained directly from Bator Village. This study uses the purposive sampling technique in sample selection, and data analysis is carried out through data reduction, data presentation, and conclusion drawing or verification. (Septiana & Damanuri, 2024: 248-261)

RESULTS AND DISCUSSION

Result

In this section, the results of the research will be explained regarding changes in consumer behavior from the millennial generation and generation Z in purchasing products in the digital era in Bator Village, along with the factors that affect it. The data used were obtained through journal references, interviews, and other relevant sources related to this study. The information presented includes the respondent’s profile, such as gender, age, profession, user interest level, application used, type of product purchased, and the time of first purchase online(Septiana & Damanuri, 2024:365). Also about shopping activities carried out in the digital era.

Interview results

Guttman scale interview script

Unveiling

Researchers:

“Good morning/noon/afternoon, sir/ma’am/brother/i. Thank you for being willing to take the time for this interview. We are a qualitative research group, students of Stkip Pgri Bangkalan. We are currently conducting research related to changes in consumer behavior, especially millennials and Generation Z, towards the purchase of consumer goods products in the digital era.

All information you submit will be kept confidential and used only for academic purposes. This interview will take about 10-15 minutes.

Instructions for respondents

In each of the following questions, please provide your answer based on the guttman scale: give a yes/no answer to each question and give a reason why you chose that answer.

Profile response

1. Name :
2. Age :
3. Employment :
4. Last education:
5. Are you a millennial generation (born in 1981–1996) or generation Z (born in 1997–2012)?

Question

Here are the questions on the Guttman scale

A.  Consumer Behavior in Purchasing Consumer Goods

1. Do you buy consumer goods products online more often compared to in a physical store?
2. Do you choose to shop online because it is more practical and time-saving?
3. Do you often buy things impulsively when you see offers interesting on digital platforms?

B. The Influence of Social Media in Purchase Decisions.

1. Does social media like Instagram, Facebook, or TikTok affect your decision in choosing a product?
2. Whether product reviews or recommendations from influencers play an important role in your decision to buy a product?
3. Do you often find interesting new products through social media?

C. Trust in Digital Platforms

1. Do you feel safe buying consumer goods products Online?
2. Does a digital payment system such as an e-wallet make the shopping process easier You?
3. Do you compare prices on different digital platforms more often before deciding to buy?

D. Changes in Shopping Patterns in the Digital Era

1. Have you shopped more often since the e-commerce platform existed?
2. Do you feel that the online shopping experience is more personalized because of the existence of product recommendations that suit your preferences?
3. Is online shopping your main habit in buying consumers goods?

Closing

Thank you for your answer. If you have any additional views regarding your shopping habits in the digital era, please let us know.

OBSERVATION RESULTS

Gender

In terms of gender needs, it is often the difference in each individual. The following is data on respondents based on gender who are interested in shopping online.

Table 1. Population of Millennial Generation and Generation Z Residents of Bator Village

Source: Bator Village Data

Age

In terms of needs, a person’s age can also make a difference. The following is a presentation of data based on age.

Table 2. Number of Population of Millennial Generation and Generation Z by Age and Gender in Bator Village

Source: Klampis Village Data

Profession 

A profession is a job or position that requires special skills, knowledge, and training in a certain field. The following is the presentation of professional data in Bator Village.

Table 3. Types and Number of Professions of Bator Village Residents

Source: Bator Village Data

Table 3 above shows that respondents work as farmers, fishermen, civil servants, entrepreneurs, students, students, TNI, and POLRI. From the data, it can be seen that farmers and fishermen dominate, which is as much as 18%. Where, each profession has its own needs.

Economic Facilities and Infrastructure

Economic infrastructure refers to all physical and non-physical facilities that support economic activities in a region or country. It includes a wide range of infrastructure, services, and resources that enable the production, distribution, and consumption of goods and services. The following is the presentation of data on economic facilities and infrastructure in Bator Village,

Table 4. Economic Facilities and Infrastructure in Bator Village, Klampis District, Bangkalan Regency in 2021

Source: Bator Village Data

Table 4 The most economic facilities and infrastructure are a group of grocery stores/stalls with more than 20 stores and there are only 2 minimarkets or supermarkets. So, generation Z prefers to shop online because it is cheaper than shopping at a physical store.

Shopping applications used 

This shopping application is presented to find out which applications are most in demand. Because each application has different advantages and disadvantages in marketing to attract consumers. The following is an explanation of shopping application data that is often used by Gator Village respondents.

Table 5. Number of Online Shopping App Users

Source: Bator Village Data

Types of goods purchased

Data on the type of goods purchased is presented to determine what users are often interested in buying products on online shopping applications. The following is data on the types of goods that are often used by millennials and generation Z in Bator Village.

Table 6. The number of items that users are often interested in buying products on online shopping applications

Source: Bator Village Data

Online shopping is the process of purchasing goods or services through the internet using electronic devices such as computers, smartphones or tablets. This involves navigating an e-commerce website or app, selecting goods or services, adding to a shopping cart, and paying electronically through various online payment methods such as credit cards, bank transfers, or digital wallets. The delivery of goods is usually done through courier services or postal delivery. Shopping online allows consumers to buy items from a variety of sellers without having to leave their homes or offices, as well as providing wider access to a wide range of products and prices.

The Largest Number of Shipping Transactions

The development of the times in the digital era shows that the interest of Generation Z in online shopping is quite high. In addition, the consumer profession also plays an important role in determining a person’s interest in online shopping, including their needs and capital. Based on population data of the millennial generation and generation Z residents in Bator Village, Klampis District, Bangkalan Regency, the number of Gen Z female population is more, which is 29%. Meanwhile, the number of the millennial generation population is 20%. Based on data from the age population in Bator Village, the number of millennial generation respondents is almost the same as the millennial generation, which is 50%. The millennial generation was born in 1981-1986, where the group starts from 28-43 years old. Meanwhile, Generation Z was born in 1997-2012, where the age group starts from 12-27 years old. Based on the results of the population data survey in table 1.3, respondents who work as farmers, fishermen, civil servants, TNI entrepreneurs, POLRI, students, and students, showed significant interest in online shopping, especially the highest interest was in farmers and fishermen, finding that 18% tended to shop often through the shoppee application compared to the millennial generation. Based on table 1.4, economic facilities and infrastructure in Bator Village are actually not very limited, because there are supermarkets or skincare stores.  However, Generation Z is more likely to shop online than to shop in physical stores because they are cheaper and more complete goods.

An online shopping application is a digital platform that allows users to purchase goods or services over the internet. In a situation like this, customers can view various products from different sellers, put the products they want in their shopping carts, and make payments electronically or COD (Cash on Delivery). Online shopping apps have many features, such as a powerful search system, complete product descriptions, and secure payment methods. Additionally, the app often has product reviews and ratings, which helps users make better purchasing decisions. Online shopping apps have become one of the leading innovations in contemporary e-commerce because they are easy to use and provide ease of shopping. There are many online shopping applications in Indonesia, such as shoppee, tokopedia, lazada, and tiktok.

To market this online shopping app, they use vouchers to lower prices, offer free shipping, provide interesting games on their app, and various other attractive promotions. The types of items that are frequently purchased, such as clothing, HP accessories, skincare, toys, home appliances, food, and home décor, are their main focus when shopping online, as shown in table 1.6. Thus, it can be concluded that there is a significant difference between the millennial generation and generation Z regarding what goods users most often buy through online shopping applications. For millennials, household appliances are the most frequently purchased item at 27%, while for generation Z, clothing is the most frequently purchased item at 28%. This shows that the customer’s primary interest.

Based on the differences, researchers found that millennials tend to prefer to buy consumer goods in physical stores because they can directly choose the items they are going to buy, know the authenticity of the product, and the authenticity of the materials used, and travel from one store to another. Because Generation Z uses digital platforms more today, which makes them lazy to move, the results of the interviews show that Generation Z prefers to buy goods in online stores. Because, by opening an online shopping app like Shoppee, you can visit many stores without leaving your home. The existence of vouchers for free shipping discounts and Cash On Delivery (COD) payment methods attracted the attention of most respondents.

With the advent of social media, Indonesians are quick to find out about the latest sales and discounts for online purchases. Due to the fact that millennials and Generation Z are the majority of users of technology such as social media, the main reason behind the high interest in making purchases through digital online shopping platforms. Online shopping allows customers to shop anywhere and saves time due to its flexibility. The factor that affects the level of app usage is the attractive offer to attract the attention of users. The increase in internet access in Indonesia has led to a shift in traditional shopping patterns to digital. Online shopping is a testament to global modernization, and the fact that every transaction is done online allows customers to shop.

In the digital era, many things affect the use of online shopping applications. First, more people can access the internet and make transactions through shopping apps because of the ease of accessing it through various devices, such as smartphones and tablets. Second, the use of social media as a means of communication and promotion helps spread information about bidders. Overall, shopping apps are on the rise due to technological advancements and consumer behavior. (Septiana & Damanuri, 2024:57)

Data reduction

Interview Results

A. Consumer Behavior in Purchasing Consumer Goods

1. Do you buy consumer goods products online more often compared to in a physical store?

“The results of the study show that 70% of respondents prefer to shop online due to ease of access, time flexibility and savings in transportation costs. Meanwhile, 30% of respondents prefer to shop directly at the store/market because want to check the quality of the product directly and ensure the authenticity of the product. This consumer behavior is influenced by the factors of convenience, trust and shopping convenience”.

2. Do you choose to shop online because it is more practical and time-saving?

“The results of the study show that 80% of respondents choose to shop online because saving time and money, as well as the convenience of shopping, while 30% More respondents love to shop directly due to personal preference and shopping experience”.

3. Do you often buy things impulsively when you see offers interesting in platform digital?

“The results show that 45% of respondents are influenced to buy thing impulsively on digital platforms due to discount offers, attractive advertisements and influence social media, while 55% of respondents are more cautious and consider needs and budget before buying”

B. The Influence of Social Media in Purchase Decisions.

1. Does social media like Instagram, Facebook, or TikTok affect your decision in choosing a product?

 “65% of respondents are influenced by social media in choosing products, especially       Because of visual content, friends/influencer recommendations, promotions and discounts, and            positive testimonials. The remaining 35% are unaffected or have little faith in ads on social media”.

2. Whether product reviews or recommendations from influencers play an important role in your decision to buy a product?

“The results show that 70% of respondents are influenced by product reviews and influencer recommendations in buying a product, especially because it helps understand the quality and provide the right product information. The remaining 30% are not influenced or less confident in online reviews”.

3. Do you often find interesting new products through social media?

“The results of the study show that 85% of respondents find interesting new products through social media because of interesting content, influencer/artist recommendations, promos and discounts. The remaining 15% are not affected or have doubts about the authenticity of the product”.

C. Trust in Digital Platforms

1. Do you feel safe buying consumer goods products Online?

“The results of the study show that 70% of respondents feel safe shopping online   Due to the good transaction security system, product warranty, positive customer reviews and secure payment systems. The remaining 30% are still worried about security personal data, online fraud and identity theft”.

2. Does a digital payment system like e-wallet make the shopping process easier You?

“The results of the study show that 70% of respondents feel that the payment system Digital facilitates the shopping process because the process is short, efficient, reduces risk of mistakes and losing money, and has advanced security features. Rest 30% experience difficulties such as errors, unstable internet connections, and lack of knowledge of e-wallets”.

3. Do you compare prices on different digital platforms more often before deciding to buy?

“The results of the study show that 70% of respondents compare prices on various digital platforms before buying to save costs, look for discounted items, and avoid regrets. The remaining 30% do not compare prices due to time constraints, insignificant price differences or already trust a particular brand”.

D. Changes in Shopping Patterns in the Digital Era

1. Have you shopped more often since the e-commerce platform existed?

“The results of the study show that 75% of respondents shop online more often due to ease of access, time-saving, competitive pricing and payment processing easy. The remaining 25% still have concerns about product quality, security data and shipping costs”.

2. Do you feel that the online shopping experience is more personalized because of the product recommendations that suit your preferences?

The results of the study show that 75% of respondents feel that shopping experience online is more personalized because of accurate product recommendations, saving time, Increase shopping satisfaction and effective search features. The remaining 22% are still experiencing difficulties such as inaccurate recommendation systems, feeling uncomfortable and prefer to choose products independently.

3. Is online shopping your main habit in buying consumers goods?

“The results of the study show that 75% of respondents make online shopping their main habit because of convenience, convenience, and efficiency of time and cost. The remaining 25% still have concerns about product quality, data security, and shipping costs.”

Observation Results

1. Gender and Age

“Generation Z (12-27 years old) shops more online than the millennial generation (28-43 years old). The residents of Bator village are mostly aged 12-43 years old with diverse professions, but farmers and fishermen dominate”.

2. Profession

“The professions of Bator villagers include farmers, fishermen, civil servants, entrepreneurs, students, students, TNI, and POLRI, with the dominance of farmers and fishermen who have the need to shop online”.

3. Economic Facilities and Infrastructure

“Economic facilities in Bator village are limited, with most of the shops being grocery stalls, and there are only a few supermarkets or minimarkets. This makes Generation Z prefer to shop online because the prices are cheaper and the products are more complete”.

4. Shopping Apps Used

 “The most used application in Bator Village is Shopee (52%), followed by Tokopedia (11%), Lazada (6%), and TikTok Shop (31%)”.

5. Types of Goods Purchased

“Gen Z buys more clothes (28%), cellphone accessories (15%), and skincare (20%), while millennials are more interested in buying household appliances (27%)”.

Data Presentation

Table 7. Data Presentation

Verification

The results of the study showed that 70% of respondents preferred to shop online because of ease of access, time flexibility and savings in transportation costs. This is in line with the preferences of younger respondents, especially Generation Z (12-27 years old), who shop more online than millennials.

This consumer behavior is influenced by the factors of convenience, trust and comfort in shopping. As many as 80% of respondents choose to shop online because it saves time and costs as well as the convenience of shopping. Social media also plays an important role in purchasing decisions, with 65% of respondents influenced by social media.

Product reviews and influencer recommendations affect 70% of respondents, while 85% of respondents discover new products through social media. However, personal data security and online fraud are still a concern for 30% of respondents. However, 70% of respondents feel safe shopping online because of a good transaction security system. The digital payment system also facilitates the shopping process for 70% of respondents. This encourages 75% of respondents to shop online more often and make online shopping their main habit.

The profession of Bator villagers, which is dominated by farmers and fishermen, also affects online shopping patterns. The most popular shopping app is Shopee (52%), followed by Tokopedia (11%) and TikTok Shop (31%). The most purchased types of goods are clothing (28%), HP accessories (15%) and skincare (20%) by Gen Z.

CONCLUSION

Online shopping refers to the process of purchasing goods or services over the internet using electronic devices, which provides convenience and wider access to various products. Millennials and Generation Z play an important role in purchasing consumer goods in the digital era. Trust, community engagement, and a positive shopping experience are the main factors that influence their purchasing preferences. Therefore, entrepreneurs engaged in the consumer goods sales sector need to develop marketing strategies that focus on building trust, engaging with online communities, and creating a pleasant shopping experience for consumers. Generation Z shows a great interest in online shopping, with a preference for apps like Shopee due to its ease of access and a variety of attractive offers, such as discounts and free shipping. In addition, research shows that online shopping interest in millennials and Z generations varies depending on the type of product purchased. Millennials tend to trust the authenticity of products purchased in physical stores, while Generation Z prefers the convenience of online shopping through applications such as Shopee. The millennial generation is more interested in household products, while generation Z buys clothes more often. When it comes to logistics, Gen Z prefers J&T Express because of the speed and proximity of the service. On the other hand, for MSMEs, trust in product quality and brand engagement in online communities is a crucial factor in attracting consumers from millennials and Z. Therefore, further in-depth and ongoing research is needed to expand our understanding of how millennial and Z consumer behavior affects MSME product purchases in the digital era as well as to identify more effective strategies for MSMEs in to face this challenge. (Septiana & Damanuri, 2024)

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