Generation Z vs. Millennials: divergent pathways from gratitude to psychological ownership and social media advocacy in luxury hotels

Purpose This study aims to examine how employee-driven and organization-driven gratitude strategies influence consumer social media advocacy in luxury hotels, with psychological ownership and loyalty as mediators, and generational cohorts (Millennials and Generation Z) and incentivized reviews as moderators. Design/methodology/approach Using purposive sampling, 368 Malaysian luxury hotel consumers from Generation Z and Millennial cohorts completed an online survey. Data were analyzed via partial least squares structural equation modeling and multigroup analysis to test hypothesized relationships. Findings Three key findings have emerged. First, action-based, tangible and symbolic gratitude are associated with higher psychological ownership. Second, increased psychological ownership leads to greater consumer loyalty, which then promotes social media advocacy. Third, generational identity influences the loyalty-advocacy link, with Generation Z showing a much stronger connection than Millennials. Incentivized reviews did not significantly affect this relationship. Practical implications Luxury hotel managers should focus on action-oriented gestures like personalized service recovery and symbolic displays such as social media shout-outs and VIP legacy walls, rather than relying solely on verbal expressions, to enhance psychological ownership. For initiatives aimed at Generation Z, it is advisable to develop advocacy programs like co-created content, while avoiding incentivized reviews to maintain genuine authenticity. Originality/value This study presents three novel contributions. To the best of the authors’ knowledge, it is the first to combine gratitude theory, social identity theory and psychological ownership in a luxury hospitality context, focusing on young consumers. The research uncovers generational differences (Millennials and Generation Z) in advocacy behaviors, showing that Generation Z is more likely to turn loyalty into social media advocacy. Additionally, it empirically questions the effectiveness of verbal gratitude in collectivist, high-involvement service environments.