The time we live in is marked by urban globalization and the uncertainty created by a rapid growth of technology, internet, and with that – social media as well. This is a time of constant and dynamic changes in the environment, just as much as in the trends. One of the consequences of every major change on a global level is the emergence of new generations. Generation Z is the first generation whose members were born and raised in a digital world. The development of technology and internet has enabled its users to access huge amount of information quickly and with ease, which makes today's consumers highly informed, which greatly impacts the marketing and communication trends. In order to become and remain competitive on the market, companies have to adapt to the requirements of their consumers, a significant portion of whom belong to the generation Z, whose way of thinking and processing information is very different from those of generations preceding them. Generation Z doesn't use the internet and social media solely for entertainment, but rather use it as a channel to connect with their friends and acquaintances, to connect with groups and communities of like-minded people who share their interests, and they use it as a source of getting information and sharing it. The differences between each and every generation are significant, as are the – globally speaking – differences in the circumstances in which their members grew up. It's very important to study each generation carefully and constantly adapt to the changes. This paper presents key theoretical insights about the members of generation Z and their characteristics, as well as theoreticals insights about the social media, which plays a great role in the lives of this generation. It also discusses the purchasing behavior of the aforementioned generation. Finally, an empirical study was conducted among 2.090 members of generation Z, which confirmed the magnitude of the social media's role in making their purchasing decisions. Conclusions were also made, touching on the importance of the companies usage of social media to connect and communicate with generation Z, and the insight to their behavior on social media was given in the end, which could be useful to all of those trying to position their products and services towards the members of this generation.