International Journal of Business and Management; Vol. 16, No. 5; 2021 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education 103 The Effect of Electronic Word-of-Mouth Communication (e-WOM) on the Conspicuous and Materialist Consumption: Research on Generation Z Aysel Kurnaz 1 & Orhan Duman 1 1 Ömer Seyfettin Faculty of Applied Sciences, Bandırma Onyedi Eylül University, Balıkesir, Turkey Correspondence: Aysel Kurnaz, Ömer Seyfettin Faculty of Applied Sciences, Bandırma Onyedi Eylül University, Balıkesir, Turkey. E-mail: akurnaz@bandirma.edu.tr Received: February 22, 2021 Accepted: March 16, 2021 Online Published: April 11, 2021 doi:10.5539/ijbm.v16n5p103 URL: https://doi.org/10.5539/ijbm.v16n5p103 Abstract The aim of this study which derives its generation data from generation Z is to analyze the effect of electronic word-of-mouth communication (e-WOM) on the conspicuous and materialist consumption. The sample of this study consists of 12 th grade students, representing the generation Z, who were born in 2000 and after. Students were selected from a total of 26 high schools in four districts of Balıkesir city in Turkey; districts of Bandırma, Gönen, Erdek and Manyas. A questionnaire was applied to the participants using the convenience sampling method. A total of 1065 questionnaires were found suitable for evaluation. Collected data were analyzed through first-order confirmatory factor analysis and Structural Equation Modeling (SEM). It was concluded at the end of this study that e-WOM communication type triggered a significant and positive effect on conspicuous and materialist consumption. Keywords: e-WOM communication, conspicuous consumption, materialist consumption, generation Z 1. Introduction Generations are generally called silents, baby boomers, and X, Y, Z generations. Those born between 1900-1945 are defined as silent generation. While, those born between 1946-1964 are defined as baby boomer generation and those born between 1965-1979 are defined as generation X. Also, those born between 1980-1999 are generation Y and those born in 2000 and later are known as generation Z or millennials (Kyles, 2005; Murphy, Gordon, & Anderson, 2004). Generations are composed of individuals whose date of birth coincides with specific years and periods; who adopt certain beliefs and behavioral styles and feel like members of specific groups (Csobanka, 2016). In order to construe modern consumers and development of consumer behaviors among young, it is essential to identify generations born during specific time periods and certain behavioral characteristics they exhibit as consumers (Smola & Sutton, 2002). Generations X and Y represent those born between 1960 and 2000 and in terms of industrial development the period corresponds to the 3 rd Industrial Revolution in which digitalization started to blossom. In the same period using of the electricity, achieved novelties in information and communication technologies as well as automation in manufacturing processes also fueled a differentiation in goods, products and services. As concept of value took the lead, sales development activities gained impetus in order to meet consumer needs and demands. Born after 2000 members of ‘Generation Z’, ‘Crystal Children’, ‘Internet Generation’, ‘Next Generation’ consist of consumers who are, compared to their precedents, the most educated, mobile and internet-connected individuals of all ages. In contrast to other generations, those born in this period witnessed a new industrial revolution termed as Industry 4.0. Due to digitalization experienced in manufacturing systems and services, dramatic changes surfaced in consumer demands and thanks to novel technologies it became feasible to respond to these changes more swiftly and effectively, hence services or products could thus become personalized. Consumer demands to discover and experiment what is new and access power of social media turn into a vital constituent in the formation of consumer choices (Buhr, 2017). Members of Generation Z, who also belong to Industry 4.0 period, are likewise socially and technologically aware citizens particularly in pursuit of an innovative and permanent transformation. By favoring written communication forms rather than verbal tools, they are likely to access increased amount of knowledge than older generations (White, 2017). Since they meet