Consumer Segmentation of Generation Z Toward Eco-Friendly Cosmetic Products Using Hierarchical and K-Means Clustering

Abstract

The growing interest in sustainable consumption has encouraged cosmetic companies to develop environmentally responsible products; however, understanding how consumers differ in their sustainability-oriented behavior remains a major challenge. Generation Z represents an important market segment for eco-friendly cosmetics due to its strong exposure to digital platforms and sustainability-related information. Nevertheless, consumers within this generation may demonstrate different levels of environmental awareness, green product perception, and purchasing behavior. Therefore, this study aims to identify distinct Generation Z consumer segments toward eco-friendly cosmetic products using an unsupervised machine learning approach. This research analyzes survey data collected from 102 Generation Z respondents using eight behavioral and psychological constructs: Perceived Environmental Knowledge (PEK), Environmental Concern (EC), Perceived Consumer Effectiveness (PCE), Environmental Advertisement (EAD), Eco-label Perception (ELB), Eco-brand Perception (EBRD), Green Purchase Intention (GPI), and Green Purchasing Behavior (GPB). We apply a hybrid clustering framework by combining Hierarchical Clustering and K-Means Clustering algorithms. Hierarchical Clustering is initially employed to examine the underlying structure of consumer groups and identify potential cluster formations, while K-Means Clustering is subsequently applied to generate the final consumer segmentation model. The findings indicate that Generation Z consumers demonstrate heterogeneous sustainability-related characteristics rather than forming a single unified consumer group. The clustering approach reveals different consumer profiles based on variations in environmental perception, green marketing responses, purchase intention, and purchasing behavior. These results demonstrate that demographic similarity does not necessarily represent similar sustainability orientations.