Avy Punwasee, Partner at Revenue Management Labs, is the author of a recent feature published in Fast Company, where he examines why Gen Z is pushing back on traditional discounting. Rather than viewing price cuts as added value, this generation often interprets constant promotions as a lack of transparency, fairness, or brand conviction.
In this article, Avy explores how pricing and brand leaders can rethink discount strategies, promotional design, and price communication to build trust, reinforce value, and strengthen long-term loyalty with Gen Z.
Read the article below and explore other featured articles written by Avy.
Table of Contents
Transparency Beats Tactics
Gen Z wants to understand why something costs what it does. Constant markdowns and “limited time only” deals can feel like manipulation or gaming of the system, not genuine value. This cohort monitors price history through social channels and real-time tools, and inconsistent pricing can damage credibility quickly.
Fast Company
Traditional discounting often assumed that slashing prices would drive urgency and volume. For many younger shoppers, it now raises eyebrows. Instead of rewarding brand loyalty, undifferentiated discounts can erode trust, especially when they conflict with a brand’s values or identity.
Why Discounts Fall Flat
Gen Z tends to view traditional promotions with skepticism because frequent price cuts can signal manipulation rather than value. When discounts are persistent, they raise questions about whether the original price was ever fair, instead of reinforcing quality or credibility. This dynamic is explored in Avy’s article on how Gen Z interprets pricing and promotions.
Transparency also plays a major role in long term loyalty. As highlighted in Avy’s article, younger consumers are more likely to stay loyal to brands that are clear and consistent about how they price their products. Transparent pricing builds trust, while opaque or constantly shifting discounts can erode it.
Finally, ethics and values increasingly outweigh pure price savings. While Gen Z remains price conscious, many place greater importance on sustainability, ethical sourcing, and alignment with personal values. For these consumers, fair pricing is as much about what a brand stands for as it is about the number on the tag.
What Brands Should Do Next
Discounts are not inherently bad. The real issue is how and when they are used. As outlined in Avy’s article, brands need to reduce promotional noise by limiting discounts to meaningful, story driven moments rather than relying on constant markdowns. When promotions are overused, they lose impact and can undermine perceived value.
Clear price explanation is equally important. Avy emphasizes linking price to quality, sustainability, innovation, or purpose so customers understand why a product costs what it does. When pricing is well explained, it feels intentional and fair rather than arbitrary.
Another key shift is measuring trust, not just traffic. While traditional metrics like clicks, conversion, and basket size still matter, Avy highlights that sentiment and perceived fairness are increasingly important indicators of long term loyalty. Brands that ignore these signals risk short term gains at the expense of trust.
Strategic discounts also play a role when used thoughtfully. Instead of driving transactions alone, Avy points to tying offers to loyalty rewards, product milestones, or community initiatives that reinforce brand values. This approach allows discounts to deepen relationships rather than weaken pricing integrity.
Finally, consistency across channels remains critical. Avy notes that uniform pricing and messaging across online and offline touchpoints helps prevent confusion and strengthens credibility. When customers see alignment everywhere they engage, pricing feels more trustworthy and loyalty is easier to sustain.
A New Playbook for Promotions
Discounting is not dead. It is evolving from a blunt instrument into a strategic communication tool. For Gen Z, how pricing is communicated and grounded in value is more important than the size of the discount itself. Brands that use promotions with intention and clarity will protect both margins and trust.
