Yelp has released new data that challenges assumptions and stereotypes around the increasingly purchase-empowered Gen Z. The report, coproduced with Angus Reid Group, identifies the generation as more independently-minded and less swayed by influencer marketing than commonly thought.
For example, Gen Z prefers written reviews from fellow consumers over influencer opinions. Beyond influencers, Gen Z is also notably dubious about AI-generated product or service summaries when their money is on the line. They have a particular affinity for things that are human-generated and verifiable.
To that end, the report points to Gen Z’s extensive product research. Specifically, they do research on at least one platform prior to buying decisions. This deviates from the spontaneity that Gen Z is often characterized by. This could indicate prior mischaracterizations… or simply the fact that Gen Z is aging.
Altogether, some of these findings counter Gen Z stereotypes, while some align with common wisdom. For the latter, one thing that’s always defined Gen Z is an affinity for authenticity. What we’re seeing now is a heightened version of that affinity as the generation lashes back against a preponderance of AI slop.
“As the digital native generation, Gen Z is used to having countless options at their fingertips and wants to dig deep into the details before making a purchase,” Yelp trend expert Tara Lewis told Localogy Insider. “Our survey reflects this, with the majority of Gen Z researching on at least one platform and turning to detailed written reviews over influencers or AI-generated summaries.”
Human Touch
Diving deeper into Yelp’s new data, what are the particulars? We’ve synthesized the top takeaways for Localogy Insider readers. Here they are in no particular order.
- An overwhelming majority of Gen Z conducts research on at least one platform before making a purchase decision. That varies per product/service category, with restaurants in the lead (97%), followed by beauty (94%), fitness and wellness (93%), home services (92%), and professional services (84%).
- Gen Z favors detailed written reviews over influencer recommendations for both dining out (78% vs. 59%) and service professionals (81% vs. 61%).
- Only 48% of Gen Z trusts AI-generated summaries for service pros and 43 percent trust AI-generated summaries for restaurants.
- Gen Z also trusts platforms that offer detailed written reviews over those with star or numerical ratings. This again breaks down by category, with services in the lead (77 percent) followed by restaurants (76%).
- When looking for a new restaurant, menu (89%) and price (87%) were the most influential factors.
- The same held true for deciding on a service pro like a hair stylist or pet groomer, with 85% saying price was influential in their decision-making. That was followed by up-to-date business information (81%) and ease of booking (80%).
“Yelp gives Gen Z the authentic, human content they need to make informed decisions,” said Lewis to bring all the above to a practical takeaway for Yelp’s place in all of this, “and our approach to AI allows Gen Z to more easily find this in-depth community content and discover and book with confidence.”
Header image credit: Steve Gale on Unsplash
