Young consumers' perception of discount promotions

This master’s thesis explores how young consumers, specifically members of Generation Z, perceive discount promotions in the context of food and drug purchases in the Czech Republic. The aim of the study was to understand how these consumers respond to sales promotions and how such price incentives influence their purchasing behavior, including brand perception, shopping planning, and reactions to rising prices. The thesis combines a theoretical overview of the Czech retail environment, pricing strategies, and Generation Z characteristics with a practical focus group study. Findings reveal that discounts play a significant role in decision-making and are often perceived as the “normal” price. While discount leaflets and retail loyalty programs are not widely used among the youth, in-store promotions remain highly influential. Private labels are generally well accepted, especially in product categories with low emotional involvement. The findings provide valuable insights into the shopping behavior of the younger generation and offer suggestions for addressing the ongoing issue of the so-called promotion spiral.