Generation Z's Impulsive Buying Comparison on Using Conventional Transaction and Digital Banking Application

Through the use of technology which has become the fabric of their everyday lives' generation Z, people born between the years 1997 and 2012. This generation have the tendency to make unplanned and spontaneous purchases (impulsive buying). This tendency got amplified by the convenience and features provided by digital banking applications, such as real-time spending alert or personalized saving targets. The research question of this study is as follows: what prompts the members of Generation Z to engage in impulsive buying while using digital banking application, as compared to physically handling cash and utilizing published media. This paper aims to fill this gap by establishing the following objective to achieve this objective, a quantitative research approach was employed. The questionnaires in the form of online surveys were conducted throughout Indonesia from August 2024; the survey received 181 responses from Generation Z respondents across the regions. The study examines correlations among five key variables that potentially influence impulsive buying behavior: The measure scales for this study include Performance Expectation (PE), Social Influence (SI), Trust (T), Behavioral Intention (BI), and Impulse Purchase Intention (IPI). The studies show that all proposed associations between these variables were revealed to be significant except the impact of BI on IPI cannot be accepted since the value of ‘p’ is greater than 0.05. This result shows that even though Generation Z's behavioral intentions to use digital banking depends on performance expectations, social influence and trust, the buying impulse does not have a strong relationship with the overall behavioral intention to use these applications. These findings present useful implications for digital banking services seeking to unravel experience-related differences and other behavioral stimuli between Generation Z consumers.