Irrational vs rational spending within the fashion industry: Are Generation Z spending irrationally on fashion products?

Murhundezi, Thierry Junior (2024) Irrational vs rational spending within the fashion industry: Are Generation Z spending irrationally on fashion products? Masters thesis, Dublin, National College of Ireland.

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Abstract

The fashion industry has had to adapt to the changing consumption behaviors of Gen Z, a generation known for being informed, conscious, and having distinct values. This research is focused on the main question that was explored: "Irrational vs. Rational Spending in the Fashion Industry: Are Gen Z Spending Irrationally?" A contrast has been drawn between rational and irrational spending behaviors for this generation pertaining to fashion. Literature related to current factors affecting the purchasing behavior of Gen Z will be reviewed, forces that include social media, impulse buying, sustainability, and financial literacy influencing purchase decisions.

Moreover, irrational spending is also a feature of Generation Z, basically due to the surge in social networks and high-tech gadgets. Lim et al. (2020) highlight the role of the social media influencer, in which endorsers are more authentic, producing positive emotions and thus stimulating impulse buying. In fashion, Priporas, Stylos, and Fotiadis (2019) describe intelligent retail environments where recommendations are tailor-made, and offers are real-time; all these arouse an irrational response that generates impulsive purchases (Goldring & Bolger,2022). These behaviors can be explained by the Affect Infusion Model, which suggests that emotions are very influential on decision-making and thus could lead to impulsive buying.

In contrast, it is the rational factors—sustainability and ethical consumption—that are the drivers of spending behaviors for Gen Z. McNeill and Moore (2019) agree on the same point: this generation will pay a premium for environmentally and socially responsible brands, proving that values drive purchase decisions. Similarly, Lusardi and Mitchell (2018) posit that Gen Z has a higher level of financial literacy. Thus, they are wiser spenders and avoid reckless spending and impulsive buying. On their side, Gentina et al.,2018) indicate what makes Gen Z consumers loyal: value for money and quality is the reason they seek durable goods and long-term benefits characteristic of rational consumption.

The findings of this study prove that Gen Z consumers do both impulsive and deliberate consumption; these factors are not mutually exclusive. For example, a Gen Z consumer could be driven by the impulse to buy a fashionable product endorsed by an influencer but at the same time be concerned with the values of the company and the quality of the product. Feelings and reason thus influence their decisions. Such insights brim with the paradoxical light of Gen Z consumption behavior, marked by the coexistence of present gratification and futuristic considerations, beaming against traditional categorizations of youth consumption as either purely impulsive or rational.

The findings have shown that interactions between irrational and rational processes affect the consumer behavior of Generation Z in the fashion industry. This calls for the need for brands targeting their audience to develop marketing messages in a way that appeals to these consumers based on their irrational and rational needs. From the marketing perspective, this study offers insights to marketers and fashion brands about the need to identify and deal with various factors affecting consumption behavior among Gen-Z populations in the fashion industry.

Item Type:	Thesis (Masters)
Supervisors:	Name Email Kierney, Stephen UNSPECIFIED
Subjects:	H Social Sciences > HF Commerce > Marketing > Consumer Behaviour H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Fashion Industry H Social Sciences > HF Commerce > Marketing
Divisions:	School of Business > Master of Science in Marketing
Depositing User:	Ciara O'Brien
Date Deposited:	14 Aug 2025 10:58
Last Modified:	14 Aug 2025 10:58
URI:	https://norma.ncirl.ie/id/eprint/8531

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