Exploring the impact of fear of missing out (FOMO) on generation Z's luxury purchasing intentions : analysis of critical design elements triggering FOMO
Creators: name: Havlová, Štěpánka
Publisher: name: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Year: 2024
Subjects: 305: Personengruppen (Alter, Herkunft, Geschlecht, Einkommen)
658.8: Marketingmanagement

description: The global luxury market is experiencing rapid growth, with Generation Z poised to become a significant consumer segment. Gen Z is increasingly influencing luxury brands' marketing strategies, mainly due to their susceptibility to the Fear of Missing Out (FOMO). While extensive research addresses FOMO's general influence on purchasing behaviors, gaps remain in how it integrates into luxury marketing strategies, particularly in determining effective FOMO-triggering appeals that induce FOMO in luxury goods purchases. This thesis explored FOMO's role in shaping Gen Z's purchasing decisions and how it can be leveraged in digital marketing strategies, comparing the effectiveness of textual and visual FOMO-triggering appeals.
The central objective of this research was to analyze how FOMO influences Gen Z's purchasing intentions within the luxury sector, focusing on two key questions: (1) Do FOMO-triggering marketing appeals increase the intention to purchase luxury goods? (2) Which type of FOMO appeal—textual or visual—is more effective in enhancing purchase intentions among Gen Z consumers?
A controlled experiment was conducted using a 4x1 between-subjects design, involving 82 participants aged 18-27. The study tested the effectiveness of different FOMO-triggering elements—direct textual, exclusive textual, and visual—within social media advertisements for luxury products in the context of an Instagram post. Data was collected through an online questionnaire, and statistical analysis was performed using Prism 10 software to evaluate changes in state-FOMO and intention to purchase (ITP). ANOVA, linear regression, and simple t-tests were used to assess research hypotheses.
The results revealed that exclusive textual and visual FOMO appeals significantly increased purchase intentions, whereas direct textual appeal had the opposite effect. However, none of the appeals significantly elevated state FOMO, making it uncertain whether FOMO directly boosts intentions to purchase luxury goods. The exclusive textual appeal was notably more effective than both the direct textual and visual appeals, highlighting the critical importance of message content and framing in marketing communications.
This thesis contributed theoretically by addressing gaps in understanding FOMO's role in luxury marketing among Gen Z consumers, revealing that traditional FOMO-triggering strategies might be less effective in the luxury context, suggesting a need for approaches emphasizing exclusivity. Practically, it stressed the importance of aligning FOMO appeals with luxury brand positioning, recommending exclusive textual appeals over direct or visual ones. However, limitations such as a small sample size, challenges in message recognition, and the choice of product category may have influenced the findings. Future research could explore different product categories, cultural contexts, and more complex theoretical models to deepen understanding of FOMO's impact on luxury marketing.