The impact of chatbots on the buying behaviors of Generation Z toward brands

As society develops, so do the needs and wishes of customers, the market situation, and especially the competition. The procedures and essential tools of traditional marketing that worked before are gradually losing their effectiveness and are no longer able to ensure a competitive advantage. If businesses want to have a competitive advantage, they must be prepared for these changes and be able to respond to them appropriately. There is currently a generational change in household spending; thus, the customer’s preferences have changed significantly. If a brand wants to remain relevant in the future market, which will be shaped by the new generation of customers, it is appropriate to focus on the Generation Z customer segment. Generation Z is the youngest generation targeted within marketing strategies and at the same time the generation with a lot of changes in product/service perception. Generation Z will be the biggest future challenge for marketing. This paper is dedicated to Generation Z in the market of the Czech Republic. Providing insights from in-depth interviews with Generation Z individuals, this research reveals their expectations, behaviors, and preferences when engaging with brands’ chatbots. The findings shed light on essential factors that influence customer satisfaction and loyalty, such as the availability of human agent transfer, clear robot interaction differentiation, and seamless problem-resolution processes. The paper aims to identify the preferences of Generation Z brands’ interaction via chatbots. The paper will, therefore, provide an understanding of how a brand can build strong relationships with Generation Z customers through an innovative marketing approach that uses chatbots to communicate with customers 24/7/365.