Gen Z Have Major Influence in Family Buying Decisions: Nielsen

Nielsen also found a drastic change in internet consumption, with more than 90 percent of both demographics accessing the internet through mobile devices, compared to 81 percent of children and 56 percent of teens accessing the web in internet cafes in 2011. (Reuters Photo/Carlo Allegri)

By : Ratri M. Siniwi | on 12:58 PM October 20, 2016
Category : Business, Featured

Jakarta. Gen Z, children and teenagers between 10 and 19-years-old, hold a major influence over the family's buying decisions in Indonesia, a survey conducted by global research firm Nielsen found.

In Nielsen’s Consumer & Media View Q2 2016, the survey found 47 percent of children and 67 percent of teens have a large influence on where families holiday, while 33 percent of children and 62 percent of teens influence their parents decision on electronics purchases.

The survey polled 17,000 respondents over the age of 10, across Jakarta, Bandung, Yogyakarta, Semarang, Solo, Surabaya, Denpasar, Medan, Palembang, Makassar and Banjarmasin.

"Twenty two percent of the country's population is Gen Z, making it important to study as they are the future consumers and play a role in purchasing decisions," Hellen Katherina, Nielsen Indonesia's executive director for media monitoring, said on Wednesday (19/10).

Despite the generation being born into the digital era, Nielsen found Gen Z can still be reached through traditional media, such as TV, radio and cinema, which is an advantage for traditional marketing.

According to Nielsen’s survey, watching TV is the second most popular activity for 38 percent of children and 32 percent of teens, followed by sports.

For both demographics, the penetration rate for TV is highest at over 95 percent, with children spending almost five hours a day and teens five and a half hours watching TV a day.

Nielsen also found a drastic change in internet consumption, with more than 90 percent of both demographics accessing the internet through mobile devices, compared to 81 percent of children and 56 percent of teens accessing the web in internet cafes in 2011.

“Games used to be the popular activity for kids in 2011, but now it’s social media for both kids and teens, because they want to connect with their friends and socialize,” Hellen said.

While the penetration rate for radio and cinema are still useful to marketers, Hellen said the major difference now lies in personal access to media and the ability of users to multitask several media at once.

“We found that Gen Z are a multitasking generation, where they consume more than one medium at once, especially now that they have their own gadgets to access the internet or listen to the radio,” Hellen said.

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