The Impact of Generation Z’s Digital Engagement on Consumer Behavior within the Retail Market

Abstract : This study develops a comprehensive conceptual synthesis of Generation Z (Gen Z) consumer behavior and digital engagement within the evolving retail market, with particular emphasis on emerging economy contexts. As artificial intelligence (AI), social commerce platforms, and omnichannel ecosystems increasingly shape retail interactions, existing consumer behavior frameworks remain fragmented and largely Western-centric. Addressing this gap, the present research systematically reviews peer-reviewed literature published between 2015 and 2025 to construct an integrated theoretical framework explaining the mechanisms driving Gen Z digital retail engagement. Using a systematic literature review and thematic meta-synthesis approach, the study analyzes research across six interrelated domains: AI-enabled personalization, technology adoption, trust in digital platforms, social commerce and influencer marketing, omnichannel retail integration, and sustainable consumption behavior. The review integrates multiple theoretical perspectives, including the Technology Acceptance Model (TAM), UTAUT2, Stimulus–Organism–Response (SOR) framework, Social Identity Theory, Trust Theory, Uses and Gratifications Theory, and Consumer Culture Theory, to develop a unified engagement architecture. Findings indicate that Gen Z digital engagement is a multi-layered process wherein technological stimuli (e.g., AI personalization and platform interactivity) influence behavioral outcomes through psychological and socio-cultural mediators such as perceived usefulness, hedonic motivation, trust, and identity alignment. Trust emerges as a pivotal construct, particularly in contexts characterized by data privacy concerns and algorithmic opacity. Social commerce operates not only as a transactional mechanism but also as a symbolic identity-performance space, reinforcing peer validation and community belonging. Additionally, sustainability orientation influences engagement conditionally, moderated by price sensitivity and perceived authenticity of environmental claims.