Literature review and development of hypothesis
Literature review and development of hypothesis
In this chapter, Theory of Reasoned Action and the key influencing factors that play role for GenZ purchase intentions via the Instagram platform would be studied. Along with the factors the hypothesis and the conceptual model will also be developed
Theory of Reasoned Action (TRA)
Rational Behavior Theory (TRA) is a well-known social psychology model that offers a theoretical framework for comprehending and forecasting human behavioral patterns. According to TRA, which was created by Martin Fishbein and Icek Ajzen in the late 1960s, a person's intention to engage in a certain activity is impacted by their attitude toward that behavior and the subjective norms of his environment (Ajzen & Fishbein, 1980).
The TRA states that attitudes refer to a person's favorable or negative evaluation of a specific activity, and that these evaluations are predicated on perceptions of the behavior's results and the total subjective value ascribed to those results. (Ajzen, 1991). On the other hand, subjective norms are connected to the perception of social pressures and expectations around the conduct in issue. They are founded on a person's view of and desire to live up to the expectations of normative intimate relationships (Ajzen, 1991).
The TRA has been used to explain a wide range of consumer behaviors, including product purchases, brand preferences, and service usage. For instance, a study conducted in 2022 by Amornpashara, Rompho, and Phadoongsitthi found that millennials who felt greater social pressure to buy things on Instagram and who had more positive opinions about such purchases were more likely to have purchase intentions for clothing.
1.1.2 Theory of Reasoned action and study on Gen Z consumers
We can better comprehend the behavior of Gen Z'sif we studythe Theory of Reasoned Action(TRA), particularly in light of how they use social media. This section examines how TRA may be used to investigate the relationship between Gen Z and social media use. With an emphasis on the key categories of attitudes, subjective norms, and behavioral intents, this study aims to elucidate how TRA explains how Gen Z engages with social media sites.
The TRA claims that beliefs and arbitrary norms have an impact on behavioral intentions, which in turn control behavior. Knowing Gen Z's behavioral intents is necessary to comprehending their social media engagement and usage patterns. According to Lin and Lu's (2011) research, Gen Z's behavioral intentions to actively utilize and interact with these platforms are influenced by both their need for social acceptability and their favorable sentiments regarding social media platforms. More individuals will use, develop, and engage in social media as a result of this. Many research have discovered TRA in relation to Gen Z and social media. For instance, Gen Z members who felt greater social pressure to use Instagram and had a more favorable perspective of the network were more likely to use it, (Amornpashara, Rompho, and Phadoongsitthi ;2022). They appear to be more inclined to purchase the item. On Instagram, Gen Z's inclinations to buy items from small companies were significantly predicted by TRA. Gen Z members who felt greater social pressure to buy from small companies on Instagram and who had more favorable opinions toward doing so were more likely to have purchase intents for those firms' goods (Assadam ;2022).
For marketers, understanding Gen Z's social media usage via the TRA's viewpoint has important ramifications. Marketers may create customized tactics to successfully engage this generation by taking into account Gen Z's positive sentiments regarding social media and the influence of subjective norms. Working with influencers that share Gen Z's interests and beliefs might help brands communicate more effectively and build social proof. Positive attitudes and higher behavioral intents to connect with companies on social media platforms may be fostered by producing interesting and interactive content that speaks to Gen Z's tastes.
Purchase influence factors
One of the most popular online buying categories in the modern day is fashion. To decide whether to buy apparel online, there are several factors to take into account. Online organizations and marketers may find it quite helpful to understand these characteristics.
1.2.1 Social Media and Instagram as a channel
Since the study is primarily on the social media platform, lets define what a social media is
The definition of social media given by Kaplan and Haenlein (2010) is "a set of Internet-based applications that build on the theoretical and technical foundations of Web 2.0 and enable the creation and sharing of user-generated content."
In the study among the wide social media platforms, Instagram has been take as it is used by 26% of the total social media users among the world and the penetration among the Gen Z population which is considered is as high as 32%.
The use of Instagram by advertisers to market their goods or brands and interact with potential customers is increasingly seen as a promising strategy. Brands are aware of Instagram's enormous potential as an effective tool for brand promotion. Instagram offers a visually appealing and intensely engaged environment, making it a perfect platform to attract clients. Li and Bernoff (2018) claim that businesses utilize Instagram to market their goods, raise brand recognition, and foster a feeling of community among their target market. Brands may connect with followers through comments and likes, provide carefully selected content to express their identity and values, and collaborate with influencers to reach a wider audience (Kaplan and Haenlein, 2019). Instagram is providing marketers with a variety of choices to enhance brand marketing efforts and boost consumer retention and conversions with features like Stories, IGTV, and Shoppable Posts (Pereira and Costa, 2020).
Additionally, marketers utilize Instagram platforms effectively to raise brand recognition and strengthen customer loyalty (Zhou et al. 2012). 71% of small businesses use social media to promote themselves, and 52% of them post daily.
From the above mentioned findings following hypothesis is developed
H 1 - Instagram has higher usage among social media platforms for Gen Z
Due to its visual nature and wide audience of fashion-conscious customers, Instagram has become the platform of choice for fashion retailers to market their goods. According to research by Georgiou et al. (2020) published in the Journal of Fashion Marketing and Management, Instagram's emphasis on aesthetics and graphics enables fashion firms to present their goods in an engaging and eye-catching way. Fashion firms can create a visually unified brand identity, engage with their target audience, and take advantage of influencer partnerships because to the platform's emphasis on photography and narrative. Instagram's appeal as a sales platform for fashion retailers is further bolstered by its sizable user base and sophisticated targeting capabilities.
H 2 Instagram is the preferred social media channel for fashion brands purchase for Gen Z
1.2.2 Trust
The concept of trust is that it is a relational quality that develops through time and through repeated usage and interactions with Instagram. Depending on how much a person trusts the advertisement or a social media post, the consumers would evaluate there purchase intentions.
Brand trust is a complex idea that encompasses customer perceptions of a company's moral fiber, credibility, and dependability. Building trust is essential for companies wanting to influence consumer buying decisions on Instagram since users are exposed to a wide range of brands and influencers. Brand trust seems to have a favorable effect on customers' viewing and purchase intent on her Instagram, according to study by Kim and Ko (2012). If consumers trust brand material, they are more likely to interact with it, weigh their alternatives, and make a purchase.
According to various studies Trust hasa favorable effect on buyers' intentions. An important predictor of a positive attitude toward purchasing behavior is confidence. Because of this, customers' opinions about a business are positively impacted by their trust in the Instagram pages, which eventually increases their willingness to buy the business's products and services (Bugshan and Attar, 2020). This is crucial in the context of Instagram purchases since there are higher degrees of uncertainty there because there are less face-to-face contacts and more user-generated materials (Featherman and Hajli, 2016).
Additionally, a number of research have discovered a connection between trust and intention to purchase online (Beyari and Abareshi, 2016). Additionally, shoppers are inspired by her Instagram to utilize it and get beyond any barriers that may prevent them from making an online purchase. According to recent study (Dabbous et al., 2020), trust has a large and favorable influence on purchase intent related to Instagram adoption. Because of this, trust increases as purchasing intent does (Sharma et al., 2019).
H3 - Trust has a positive correlation on the purchase intention of Gen Z users in Instagram
1.2.3 Engagement
The customer's cognitive, emotional, and behavioral abilities are crucial, according to study by Hollebeek (2011). According to Pansari and Kumar (2017), indirect consumer interaction includes actions, paid referrals, Instagram debates about goods and brands, as well as client reactions and feedback to companies.
Engagement is crucial for social media advertising because it fosters relationships and trust between companies and their clients. Customers feel more connected and devoted to a brand when they actively engage with it through comments, likes, shares, etc. According to Van Dorn et al. (2010), customers' intentions and behavior when making purchases are favorably influenced by social media use. Customers that actively engage in brand discussions feel heard and appreciated, which increases their trust in the company and increases their propensity to buy. To increase consumer happiness and conversions, marketers should concentrate on enabling meaningful interactions on social media platforms.
A 2022 study by Amornpashara, Rompho, and Phadoongsitthi, Gen Z were more likely to purchase products promoted on Instagram if they felt greater social pressure to use Instagram and had a more positive opinion toward the app. In addition, the study discovered that involvement with Instagram influencers is a fairly accurate predictor of consumer intent. Theory of Reasoned Action (TRA) was shown to be a major predictor of millennials' buy intentions for small company items on Instagram, according to a different research by Assadam (2022). According to the TRA hypothesis, a person's attitude toward a behavior and the amount of social pressure they feel to engage in the activity have an impact on their intention to engage in the conduct. According to the study, when millennials felt more social pressure and had a more optimistic outlook, they were more likely to be eager to purchase small business items on Instagram.
The effects of Instagram advertising spending on company performance and shareholder value are examined by Danaher and Dagger (2013).
From the above mentioned literature the following hypothesis are
H4 The number of engagement between a brand and an Instagram user is directly correlated
1.2.4 Ease of use
Perceived ease of use, according to Davis (1989), refers to how consumers anticipate a certain system to be simple to use. Social media channels that are simple to use are now readily available through mobile devices, making them simple for technology users to acquire and use often. Customers will start learning new methods to utilize your application as you remove any potential technological obstacles between them and the products and services you offer. Venkatesh and Davis's (2000) research emphasizes the significance of usability in influencing customer acceptability and adoption of technology. When customers find your social media platform simple to use, they are more likely to explore your company's content, take advantage of promotional offers, and eventually make a purchase.
Lopez, Marnes, et al. (2020) The effort that is presumably involved in clicking a buy button and making a purchase on an s-commerce platform is acknowledged on a case-by-case basis because buy buttons on s-commerce websites are still comparatively new. It asserts that it depends on usability. bought on Instagram. Perceptions of usability and practicality are major predictors of the adoption of many technical innovations. Hu et al. (1999) assert that one of the main factors driving the adoption of new technologies is perceived utility, not perceived usability. Perceived utility is a significant determinant of a person's motivation to employ new technology, according to Davis (1989). Perceived utility has a significant influence on purchase intent, according to the vast majority of research that specifically target small firms wanting to build an online presence.
The "tech-savvy" generation of Gen Z prizes ease of use, effectiveness, and seamless interactions. Users in Generation Z favor social media sites' simplicity of use because they choose features and interfaces that are suitable for their busy lifestyles. Research by Chen et al. has confirmed the significance of usability for millennials' adoption and use of social media platforms. (2018). Platforms that enable quick browsing, connecting, and interaction with material are becoming more and more popular among millennials.
A Kim and Sundar (2018) study found that Gen Z users are more likely to like using social media sites and to keep using them. When a platform is used, Gen Z users are more likely to actively participate, develop and share content, and communicate with companies and coworkers. It offers a simple user interface and a positive user experience.
H5 The ease of usage of Instagram makes it the desired channel for Gen Z customers for buying
fashion
1.2.5 Influencers on Instagram and Social influence marketing
Abidin (2016) in the Journal of Youth Studies proposed a description for social media influencers as "users who have established themselves as opinion leaders in specific domains and are perceived as authentic and trustworthy by their audience." Their capacity to successfully engage and communicate with their followers, fostering a feeling of community, defines them. Influencers on social media sometimes specialize in certain markets or sectors, such as fashion, beauty, fitness, travel, or lifestyle. They routinely provide articles, movies, or tales that give insightful analysis, helpful suggestions, and firsthand accounts. Academics and business professionals are very interested in social media influencers due to their potential as a brand promotion tool. The use of SMI has fundamentally changed social media marketing. The popularity of SMI has fostered collaboration between commercial and social media influencers.
On looking at a brand perspective, tie ups with influencers is important as Brands may be able to contact more people thanks to it. Influencers frequently have a sizable social media following, so their posts may be seen by a wide audience. This may be especially useful for firms that are trying to appeal to a certain group of people or niche market. In recent years, influencer marketing has drawn a lot of attention as a potent strategy for connecting companies with their target consumers. An integrated marketing communications viewpoint emphasizes the importance of working with influencers in establishing brand credibility and raising brand recognition, according to research by Belch & Belch (2021). When partnering with individuals that resemble their target market, brands may profit from the established reputation and trust of their followers.
Influencer endorsements may have a big impact on consumers' views and buy intentions, according to studies like the one by Gupta and Pirsch (2021) that was published in the Journal of Marketing. The report stresses that consumers view influencer endorsements as more genuine and reliable than conventional forms of advertising. Brands may efficiently connect and engage their target audience by utilizing the influencers' authority and knowledge, which raises brand recognition and fosters favorable brand associations.
According to research published in the Journal of Interactive Marketing in 2019 by Scholz et al., influencers have the power to affect Gen Z's opinions about goods or businesses through their recommendations and content. Influencers may favorably affect Gen Z's views by sharing real and authentic experiences, leading to favorable opinions and greater interest in the offered items. When Gen Z is impacted by influencers, subjective factors also play a significant part in purchase decisions. According to a 2011 research by Chu and Kim that appeared in the Journal of Advertising Research, Gen Z consumers are more likely to heed the advise of influencers and regard them as reliable information sources. The weight Gen Z shoppers give to an influencer's social media preferences and opinions increases the impact of subjective measures on purchase choices. A sense of social identity and connection is also fostered through the involvement and interaction between influencers and Generation Z. Gen Z consumers regard influencers as approachable and aspirational people, which increases behavioral intents to imitate their choices and make purchases that are in line with the recommendations of influencers, according to study by Pyry et al. (2017) published in the Journal of Advertising. Brands may particularly collaborate with influencers to affect Gen Z's purchasing behavior by utilizing the TRA framework. Brands may use the influencer economy to sway Gen Z's views, subjective standards, and eventually behavioral intentions by collaborating with influencers that match Gen Z's values and goals can do.
1.2.5.1 Influencer Characteristics
Homophily
Homophily is the tendency to associate and bond with others who have similar features, like the proverb "birds of a feather flock together" suggests. Therefore, homophily refers to the degree of similarity between two persons who interact in terms of certain traits, such as views, values, education, and social position. According to De Bruyn and Lilien [27], homophily describes similarities between people based on their preferences, ideals, and life experiences. Typically, homophilic people share characteristics that make it simple to communicate and form close relationships.
Research by Brown and Hayes (2008) published in the Journal of Advertising shows that customers' views and purchase intentions are favorably influenced by influencers' knowledge. Consumers trust influencers' suggestions and opinions when they are thought of as experts and professionals in the industry. Influencers' recommendations for products are more likely to be considered and followed through on by consumers since they are perceived as having relevant knowledge and insights. This idea is further supported by the study by Chen and Lambert (2017) published in the Journal of Advertising Research, which shows how customers' impressions of the endorsed items are greatly influenced by the competence of the influencers. Consumers see items as more credible and trustworthy when influencers exhibit their knowledge through their content, reviews, and demos, which increases buy intentions.
1.2.5.1.2 Expertise
Influencers' expertise has a larger impact when they concentrate on a certain speciality or business. Customers regard specialized influencers as more knowledgeable and reliable, which boosts their potential to influence purchase decisions, per a study by Yang et al., published in the Journal of Interactive Marketing (2020). increase. Customers like influencers' subject-matter expertise because it lends credibility and modernity to their suggestions.
Research by Brown and Hayes (2008) published in the Journal of Advertising shows that customers' views and purchase intentions are favorably influenced by influencers' knowledge. Consumers trust influencers' suggestions and opinions when they are thought of as experts and professionals in the industry. Influencers' recommendations for products are more likely to be considered and followed through on by consumers since they are perceived as having relevant knowledge and insights.
1.2.5.1.3 Entertainment value of Instagram posts
According to Ahn et al.'s research published in the Journal of Interactive Advertising in 2020, engaging influencer content has a favorable impact on customers' perceptions and inclinations to make purchases. Customers in Gen Z, in particular, are drawn to amusing articles that arouse feelings, bring delight, and provide a way to escape reality. Gen Z consumers are more responsive to product endorsements and suggestions when influencers provide interesting and entertaining content that grabs their interest.
The influence of entertainment on purchasing behavior is further emphasized in the study by Duffett (2017) published in the Journal of Retailing and Consumer Services. Customers in Generation Z consider entertaining influencer posts to be more engaging and memorable, which creates a favorable link with the items that are promoted. The entertainment element improves the whole brand experience and makes Gen Z buyers more likely to consider the suggested items.
Furthermore, research published in the Journal of Marketing Communications by Holt et al. (2019) reveals that amusing influencer postings foster a feeling of authenticity and relatability. Customers in the Gen Z generation admire influencers who can amuse them while being sincere, personable, and consistent with their ideals. This sincerity raises the influencer's credibility and has a stronger impact on consumer decisions.
For this sub section it is important to understand the Consumer Inspiration Theroy in detail before setting up the Hypothesis
1.2.5.2 Consumer Inspiration Theory ( CIT)
The argument put out by Bottger et al. (2017) holds that inspiration functions as an outside stimulus that prompts the recipient to react properly. Behavioural change and emotional transformation are the two types of inspiration-supported change.
According to the notion of consumer inspiration, customers are motivated by a desire for aspirational fulfillment and personal development. Influencers are important in the social media environment for encouraging and energizing customers. Influencers on social media have the capacity to provide aspirational material and tell compelling stories to their following. They frequently represent the ideas and principles that customers strive to uphold. Through a number of techniques, social media influencers motivate consumers. They follow influencers' travels, personal growth, and achievements and assist their own search for like experiences. Influencer tales and content stir up feelings in followers and foster a sense of connection and resonance. Consumers are inspired to interact with businesses that promote them and ape their preferences.
These days, marketers may collaborate with influencers whose personal brands correspond to their target demographic and line of business. Brands may access the influencer's capacity to inspire and encourage their followers by connecting their brand with an influencer who represents the desired objectives. Increased brand recognition, engagement, and loyalty among motivated customers can result from this. A studyby Amornpashara, Rompho, and Phadoongsitthi (2022) discovered that customers were more likely to be motivated to buy items offered by Instagram influencers when they were exposed to such influencers more frequently.
From the above mentioned study, the following hypothesis has been created
H 6 Higher homophily of influencers increases the purchase decision of Gen Z
H 7 There is a positive correlation between expertise of the influencer and purchase decision of Gen Z
H 8 - There is a positive correlation between the Quality of Instagram post and purchase decision of Gen Z
Conceptual Framework
1.3.1 Hypothesis based on the literature review
H 1 Instagram has higher usage among social media platforms for Gen Z
H 2 Instagram is the preferred social media channel for fashion brands purchase for Gen Z
H 3 - Trust has a positive correlation on the purchase intention of Gen Z users in Instagram
H 4 The number of engagement between a brand and an Instagram user is directly correlated
H 5 The ease of usage of Instagram makes it the desired channel for Gen Z customers for buying
fashion
H 6 Higher homophily of influencers increases the purchase decision of Gen Z
H 7 There is a positive correlation between expertise of the influencer and purchase decision of Gen Z
H 8 - There is a positive correlation between the Quality of Instagram post and purchase decision of Gen Z
1.3.2 Framework
41859202175510H8
00H8
40424101803400H76
00H76
40555341490557H6
00H6
40551101227455H5
00H5
4063365939165H4
00H4
4182533622300H3
00H3
4055957155405740428331536700404325715244234047490136779040386009613904038600554989right1384724Purchase Decision
00Purchase Decision
267438854418200267835897822426783581506222002682328136859802675712149988100267438815038510029051612472235Quality of Instagram post
00Quality of Instagram post
28947962055198Expertise of influencer
00Expertise of influencer
28949831641937Homophily of influencer
00Homophily of influencer
2889679436880Trust
00Trust
28951891240750Ease of usage
00Ease of usage
2889250833435Engagement
00Engagement
13042131827229H2
00H2
1268330865659H1
00H1
983112150616995139994061515202451368425Preferred Channel
00Preferred Channel
-1905001896745Fashion brands using Social media
00Fashion brands using Social media
-179709771477Usage Rate
00Usage Rate
Based on the literature review the conceptual framework has been created
