Understanding Millennial & Genz Buying Behaviour on Starbucks

Understanding Millennial & Genz Buying Behaviour on Starbucks

Jatin Singh Rajawat

Under The Guidance of Prof. Yasser Khan

Master of Business Administration

School of Business, Galgotias University

ABSTRACT
Title: Understanding Millennial & Gen Z Buying Behaviour: A Study on Starbucks

In today’s rapidly evolving consumer landscape, brands must understand generational differences to remain relevant. Starbucks, a globally recognized coffeehouse chain, has emerged as a cultural icon—especially among younger generations. This study focuses on understanding the buying behaviour of Millennials (born 1981–1996) and Gen Z (born 1997–2012) in the context of Starbucks’ branding, product strategies, and consumer engagement initiatives. These two generational cohorts represent a significant portion of Starbucks’ consumer base, and their behavioural traits are influenced by unique life experiences, technological immersion, and growing concerns about ethics and sustainability.

Study Background and Objectives

The research explores the key factors that influence Millennials and Gen Z in their decision-making processes when purchasing Starbucks products. These include brand perception, digital convenience, sustainability and ethical concerns, social media influence, and peer-driven consumption patterns. The objective is to assess how these factors differ between the two cohorts and what this implies for Starbucks’ future marketing and operational strategies.

Key research questions investigated include:

•               What motivates Starbucks purchases among Millennials and Gen Z?

•               How do digital platforms and mobile apps influence loyalty and purchase behaviour?

•               What role do sustainability and ethical sourcing play in consumer decision-making?

•               How does social media advertising impact these cohorts differently?

The primary objectives are:

1.                  To identify the most influential purchase drivers among Millennials and Gen Z.

2.                  To evaluate the role of digital engagement and convenience in brand loyalty.

3.                  To assess the impact of sustainability practices on brand perception.

4.                  To recommend marketing and operational strategies tailored to each cohort.

Research Design

A mixed-method research methodology was used to obtain comprehensive insights.

•               Quantitative data was collected via an online structured survey (N=300) targeting Starbucks consumers aged 18–42, evenly divided between Millennials and Gen Z.

•               Qualitative data was gathered through in-depth interviews and focus groups to extract emotional, psychological, and value-driven factors influencing behaviour.

•               A descriptive and exploratory research design was implemented, and the data was analysed using SPSS, employing regression analysis, ANOVA, and thematic coding techniques for qualitative inputs.

Major Findings

1.                  Brand Loyalty and Digital Convenience: Millennials showed higher loyalty toward Starbucks’ reward programs, while Gen Z preferred seamless app-based ordering and mobile payments.

2.                  Sustainability and Ethical Sourcing: Gen Z consumers placed greater emphasis on Starbucks' sustainability practices, often factoring them into purchase decisions.

3.                  Social Media Influence: Gen Z was more likely to be influenced by Starbucks' presence on platforms like Instagram and TikTok, compared to Millennials, who relied more on personal experiences and word-of-mouth.

4.                  Experiential Consumption: Both cohorts value the “third place” experience (between home and work), but Millennials showed more nostalgia and emotional connection to store ambiance.

Conclusions

The study confirms that while Millennials and Gen Z share common ground in valuing quality, convenience, and innovation, their motivations and media consumption habits differ significantly. Starbucks’ current strategies align well with both generations but need deeper personalization and purpose-driven communication to sustain long-term loyalty—especially among Gen Z.

Recommendations for Action

•               Personalization via Technology: Enhance mobile app functionality with AI-driven suggestions and personalized offers.

•               Sustainability Transparency: Communicate sustainability efforts through storytelling and influencer partnerships to better connect with Gen Z.

•               Platform-Specific Campaigns: Develop content tailored to TikTok and Instagram Reels for Gen Z while maintaining loyalty programs and email campaigns for Millennials.

•               In-Store Experience Innovations: Blend traditional ambiance with modern digital features (AR menus, digital walls) to cater to both generations.

•               Feedback Loops: Encourage participative feedback from both cohorts to co-create new products and experiences.