Chasing Gen Z impulse buys can backfire-short attention, low loyalty, and high churn mean brands may sacrifice long-term trust for fleeting clicks and trends.

Phone screens light up late into the night in college dorms and hostels all around India. Scroll! Stop! Swipe back!

A T-shirt either makes it to the cart or dies in hesitation.

This is our first consumer in the Consumers Decoded series—The Deal-Oriented Hostel Student (Gen Z)

In today's newsletter, we examine what truly motivates Gen Z beyond influencer reels and discount codes.

Who Are They?

A Gen Z consumer living on a tight, month-to-month budget, typically in a hostel or shared accommodation. Despite appearing impulsive, they are highly price-aware, socially influenced, and deeply risk-averse.

Profile: 18–23 years old. Hostel or flat-sharing life. Monthly allowance.
Discovery sources: Reels, creators, peer cues
Biggest fear: Spending money on something that doesn't live up to expectations.

They don’t have the luxury of “trying and forgetting.” Every buy is an emotional risk. They don't act on impulse; they try things out carefully. Yes, they click fast, but they stop even quicker!

The Simulation

We simulated a real shopping moment with two everyday tees.

Article content

Both reside in the same price range and appear in the same feed, yet the results were radically different. This was not a design contest; it was a click vs. confidence test.

The Numbers

Price Is Not the Problem (But Brands May Think It Is)

Price perception: 94% positive for ₹199 Zudio tee
Interest level: 50–60% across Gen Z clusters
Yet… Purchase intent: 20–25%
Conversion rate: 25%
PMF Index: 18%

A low price might grab eyes. However, it may or may not build trust. And, Clicks Are Lying to You!

Click-through: 60–67%
Usability: 82% (easy category)
But Problem–solution fit: 35–37%
Satisfaction: 45–55%
Retention intent: 20–30%

High CTR may look like success. It’s fragile demand! The Real Leak: Post-Click Anxiety

Results: 49% churn probability, 44% trial-to-adoption gap.

Zudio vs Bewakoof Breakdown

Article content

The One Stat That Matters:

94% price approval → only 18% product–market fit.

That gap wastes ad spend. Brands fix creatives or slash prices. Consumers need certainty. Gen Z skips the cheapest. They pick things where the regret is lowest for them.

Takeaway for brands

Myth: Lower price + trend = conversion
Reality: Lower price + uncertainty = abandonment

Trust, not discounts, closes the 94%-to-18% gap.

Signature Truth

“When 94% of consumers say the price is fair but only 18% feel the product fits, the problem isn’t marketing. It’s understanding.”

“For Gen Z, the cheapest option isn’t the safest one. The safest option is the one that reduces regret!"

As a brand owner, what do you think resonates most with this type of Gen Z persona? Share your experience in the comments.