When brands lose relevance, is Gen Z really the reason?
Before changing their strategy to engage Gen Z, businesses need to understand whether the challenge comes from shifting consumer behavior or a brand approach that no longer resonates with its audience.
Sales of a snack brand's larger pack sizes declined for two consecutive quarters.
The team assumed that younger consumers were losing interest in the product. As a result, the marketing budget was redirected toward a new campaign targeting Gen Z.
However, sales showed no improvement.
Further analysis revealed that the shift toward smaller pack sizes was not limited to Gen Z. Millennials and Gen X consumers were showing the same pattern during the same period.
This suggested that the change in purchasing behavior was not necessarily driven by generational differences, but could be influenced by other contributing factors.
The case highlights why businesses need to understand what drives changes in consumer behavior before adjusting their strategies. Similar shifts in purchasing behavior can happen for different reasons, each requiring a different approach.
Three factors that influence consumer behavior
- Generation: consumer behavior shaped by the experiences and environment in which a generation grows up. For example, TikTok Shop usage stands at 30% among Gen Z, compared with 18% among Baby Boomers. This difference highlights how platform adoption varies across generations.
- Life stage: changes in consumer needs and priorities as people move through different stages of life. Groceries account for the largest share of spending among Gen X (40%) and Millennials (39%), but do not rank among the top three categories for Gen Z. This may reflect differences in priorities and needs at different life stages.
- Situation: changes in consumer behavior influenced by specific circumstances that can affect multiple generations at the same time. Around 70% of consumers choose smaller pack sizes, with similar patterns observed across Gen Z, Millennials, and Gen X. This suggests that situational factors may be influencing purchasing decisions and deserve further investigation.
Sources: APJII, Indonesia Internet Profile 2025 (n=8,700); YouGov Indonesia, April 2025 (n=2,067); Inventure × Alvara, December 2025.
A question for you: what is the most significant change in consumer behavior you've observed in your business? Is it driven by generational differences, life stages, or market conditions? What data supports your conclusion?
The right response starts withunderstanding what drives change.
Understand the root cause before defining your strategy.
Explore how market changes influence consumer behavior across five industries and discover strategic options for responding to these changes in our handbook, "The Market Has Shifted".