The Economic Behavior of the Digital Generation in Purchasing Decision Making: A Review of Consumer Psychology in Generation Z in the Social Media Era

Abstract

This study aims to analyze the economic behavior of Generation Z, particularly the Digital Generation, in purchasing decision-making from the perspective of consumer psychology in the social media era. The study employs a descriptive-interpretive qualitative approach using a literature review method. The data consist of relevant national and international journal articles addressing digital consumer behavior, consumer psychology, Generation Z, digital marketing, social media, influencer marketing, purchasing decisions, Fear of Missing Out (FoMO), and digital technology, published between 2020 and 2026. The data were analyzed using thematic analysis through the stages of identification, categorization, interpretation, comparison, and synthesis of findings to identify key patterns in digital consumer behavior. The findings indicate that Generation Z’s purchasing decisions are not entirely based on rational considerations of needs, prices, and benefits, but are shaped through the interaction between digital stimuli and consumers’ psychological processes. Social media, digital marketing, influencers, online reviews, viral content, algorithm-based recommendations, artificial intelligence (AI), and the convenience of digital payments serve as stimuli that influence attention, perception, motivation, emotions, trust, perceived risk, social comparison, and FoMO. These psychological processes subsequently influence preferences, purchase intentions, alternative evaluations, purchasing decisions, and tendencies toward impulsive purchasing. This study proposes a conceptual model in which Generation Z’s purchasing behavior occurs through a sequence of digital stimuli → attention and perception → psychological processes → consumer evaluation → purchase intention → purchasing decision. These findings emphasize that Generation Z’s economic behavior should be understood not only from the perspective of rational economics but also through the lens of consumer psychology, which incorporates social, emotional, and digital dimensions into the decision-making process.