Exploring the Impact of Generative AI-driven Advertising on Generation Z's Consumer Behavior in China: A Grounded Theory Approach

As a new and significant force of consumption in contemporary China, Generation Z showcases distinct characteristics. Their penchant for uniqueness and personalized psychology are especially evident in their daily consumption behaviors. In the current digital age, generative AI has emerged as a powerful tool in the advertising realm. Thus, exploring the influence mechanism of generative AI-driven advertising on the consumption behavior of Generation Z holds great significance. This exploration is crucial for the further integration and application of artificial intelligence technology in the development and reform of the advertising industry. Based on in-depth qualitative interviews with 24 Chinese university students, this study employs programmatic grounded theory. By doing so, it aims to uncover the intricate black box of the influence mechanism between generative AI-driven advertising elements and consumer behavior. The research ultimately discovers the pathways through which four dimensions-corporate cognition, value cognition, emotional cognition, and risk cognition-impact the consumption behavior of Generation Z. This offers valuable insights for advertisers targeting this demographic.