Generation Z and Its Value Transformations: Digital Reality Vs. Phygital Interaction

. The impact of phygital reality on generation Z is the focus of this article. Phygital is understood as a system of interaction in the new world when digi-tal space penetrates the physical and integrates with a person. For research-ers, as well as for representatives of business, education, and media culture, the question of how phygital reality practices influence formation of the val-ues of the most active digital audience - generation Z is becoming more and more relevant. Issues of value system are commonly seen among a typical representative of the generation Z that lives in St. Petersburg. The change in the value priorities of modern society is investigated. An analysis of the re-sults made it possible to obtain the image of generation Z from generation Y viewpoint, to study the hierarchy of values of generation Z and to draw inter-generational analogies. It is shown that some features attributed to this gener-ation are not supported by data. The results of the study of the value system of a typical representative of generation Z in St Petersburg are in some con-tradiction with the value system of generation Z in other countries. The au-thors believe that generation Z studies present valuable material for develop-ing governing solutions in terms of desired goals and actions to achieve a de-veloped digital society