Measuring Gen’Z Loyalty Using Consumer Perception of Channel Integration the Fashion Sector in Medan

Abstract

Engaging Generation Z customers is the greatest challenge for omnichannel retailers in the retail industry. Generation Z is known for shifting their shopping behavior from offline to online stores and frequently changing brands or products. By 2027, all of Generation Z will be of productive age, presenting both opportunities and challenges for North Sumatra. This research focuses on evaluating the impact of customer engagement variables in mediating perceptions of channel integration on Generation Z customer loyalty in Medan. Research findings reveal that the integration of information access and order fulfillment significantly influences customer engagement and loyalty. Conversely, the integration of promotions, products and prices, transaction information, and customer service does not have a significant impact on customer engagement and loyalty. Nevertheless, customer involvement has a positive and significant influence on customer loyalty. Customer involvement can mediate the relationship between order fulfillment and integration of information access on customer loyalty. On the other hand, customer engagement cannot mediate the integration of promotions, products and prices, transaction information, and customer service on customer loyalty. Understanding the factors that influence customer engagement in omnichannel retail is crucial. This research confirms that engaging Generation Z customers in various channels in the fashion retail sector in Medan can lead to increased customer loyalty.