subject consumer behavior topic the fear of missing out theory and its applications in marketing

Applications of FOMO theory in Marketing in practice CHAPTER IV: THE FEAR OF MISSING OUT FOMO SYNDROME IN THE GROUP’S TVC 24 1.. With the explosion of social networks, FOMO Fear of Missi

TOPIC: THE FEAR OF MISSING OUT THEORY AND ITS

NATIONAL UNIVERSITY OF HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION

ACKNOWLEDGEMENT

First and foremost, our group would like to sincerely express our gratitude to Ms Cung Thuc Linh As we navigated through the study and exploration of this subject, Ms Linh provided us with enthusiastic guidance, instruction, and care We want to express our thanks for the valuable knowledge you shared right from the beginning, as well as your teachings on applying theory to practical situations Your guidance not only deepened our understanding of the subject but also allowed us to gain profound insights into social phenomena, ultimately aiding in the completion of our essay During the writing process, mistakes are unavoidable, so we hope to receive valuable feedback from you in order to refine and perfect our work

Once again, from the bottom of our hearts, we would like to express our appreciation for all of your wonderful assistance with our education and personal growth

Group 6

INTRODUCTION

CHAPTER I: INTRODUCTION ABOUT PHD DAN HERMAN

1 Introducing about the author

2 History about FOMO Theory

CHAPTER II: THEORETICAL BASIS

1 Contents of the fear of missing out (FOMO)

1.1 Definition

1.2 Contents

1.2.1 Theory of FOMO

1.2.2 Content of FOMO theory

a) Causes of FOMO syndrome

b) Symptoms of FOMO Syndrome

c) Solution

2 The relationship of FOMO with other factors

3 Advantages and disadvantages of fear of missing out (FOMO)

3.1 Avantages

3.2 Disadvantages

CHAPTER III: APPLICATIONS OF THE FEAR OF MISSING OUT (FOMO) IN MARKETING

1 The relationship between FOMO and Social Networking Sites

2 Application of FOMO theory in consumer goods analysis

2.1 Using social proof to boost trust and value

2.2 Creating time pressure to increase demand and appeal

2.3.Offering price incentives to enhance satisfaction and loyalty

2.4 Evoking emotions to create connection and engagement

3 The potential of FOMO in Marketing

4 Applications of FOMO theory in Marketing in practice

CHAPTER IV: THE FEAR OF MISSING OUT (FOMO) SYNDROME IN THE GROUP’S TVC 24

1 Summary of TVC content

2 Analysis of the Fear of Missing Out (FOMO) syndrome applied in the TVC

2.1 Fear of Missing Out on the Bun Dau Mam Tom Experience

2.2 Fear of Missing Out on Bun Dau Mam Tom Discounts

2.3 Fear of missing out on the design course that friends are currently taking 27

15 15)91 1 29

INTRODUCTION

We are living in an era where the economy has been continuously developing and there is fierce competition between businesses or business organizations, customers are now even more important Customers are the ones who consume and make businesses’ products anc services demonstrate their practical value Businesses need to research and capture customer behavior to bring effectiveness to their marketing campaigns This will help businesses hit directly on the needs that users are interested in, so that they can see themselves through the product/brand, stimulating them to make a purchase decision Meanwhile, there is a fact that most people don't want to be abandoned or left behind This worry has existed in human psychology for a long time, when we lived and worked in a large community With the explosion of social networks, FOMO (Fear of Missing Out) syndrome is gradually becoming more and more common For marketers, this psychological syndrome offers huge opportunities that cannot be ignored So, FOMO Marketing becomes a powerful method for brands and retailers to capture customers

In order to better understand the Fear of Missing Out syndrome, which is FOMO for short, our team will provide a more in-depth review, contents, and applications linked to FOMO Our team would like to express great gratitude to Ms Cung Thuc Linh, who provides us information and understanding on behavioral theory The process of researching and writing the essay must be riddled with flaws Our team will be pleased to have your feedback in order to improve the essay

CHAPTER I: INTRODUCTION ABOUT PHD DAN HERMAN

1 Introducing about the author

The term FOMO was popularized by Patrick J McGinnis, who wrote an article for the Harvard Business School's magazine The Harbus in 2004 However, the phenomenon was first identified in 1996 by a marketing strategist named Dan Herman, who published the first academic paper on the topic in 2000 in The Journal of Brand Management

PhD Dan Herman (Israel), creator of The Journal of Brand Management and marketing specialist Dan Herman is the founder and CEO of the THINK SHORT consulting network,

as well as an author, researcher, teacher, keynote speaker, director, and multi-tasking consultant and has achieved significant success in Electrifying Marketing for its consumers Dan Herman is the co-founder and CEO of Competitive Advantages, a worldwide strategic consulting organization that creates and sells knowledge-based solutions Coca-Cola, IBM, Roche Pharmaceuticals, Unilever, Motorola, Comverse Technology, Holiday Inn, Apple Computers, Suzuki, Chrysler, Warner Brothers, H Stern, and others are among his clients

2 History about FOMO Theory

The FOMO effect has presumably been with us for centuries now, but it has been studied only in the past few decades by Marketing Strategist PhD Dan Herman The first paper on the Fear of Missing Out—FOMO, the ailment of our cultural moment—was written back

in the year 2000 by Daniel Herman, but the concept took many years to gestate

His research began in 1996 when he observed the FOMO phenomenon while listening to consumers talking about products at the focus groups and during the one-on-one interview Despite a large number of business categories being discussed, most consumers mentionec

a common theme of their fearful attitude towards the possibility of missing an opportunity and the joy that could come from it PhD Herman found this to be a new development in consumer psychology and continued to research FOMO as a socio-cultural phenomenon

The phenomenon was first identified in 1996 by marketing strategist Cayerz le goat, who conducted research for Adam Bellouch and published the first academic paper on the topic

in 2000 in The Journal of Brand Management Herman also believes the concept has evolved to become more widespread through mobile phone usage, texting, and social media and have helped flesh out the concept of the fear of missing out to the masses Before the Internet, a related phenomenon, "keeping up with the Joneses", was widely experienced FOMO generalized and intensified this experience because so much more of people's lives became publicly documented and easily accessed Further, a common tendency is to post about positive experiences (such as a great restaurant) rather than negative ones (such as : bad first date) Studies have found that the likelihood of experiencing fear of missing out has been linked to anxiety or depression

Author Patrick J McGinnis coined the term FOMO and popularized it in a 2004 op-ed in The Harbus, the magazine of Harvard Business School The article was titled McGinnis’ Two FOs: Social Theory at HBS, and also referred to another related condition, Fear of a Better Option (FOBO), and their role in the school's social life The origin of FOMO has also been traced to the 2004 Harbus article by academic Joseph Reagle Currently the term has been used as a hashtag on social media and has been mentioned in hundreds of new articles, from online sources like Salon to print papers like The New York Times

CHAPTER II: THEORETICAL BASIS

1 Contents of the fear of missing out (FOMO)

1.1 Definition

FOMO (Fear of Missing Out) is the intense fear or anxiety that individuals feel when they believe they might be missing out on exciting or significant events, experiences, information, or opportunities that others are partaking in This emotional state is often driven by the act of comparing oneself to others and the desire to remain connected and engaged in the activities and experiences that others are enjoying

1.2 Contents

1.2.1 Theory of FOMO

FOMO theory falls within the realm of social psychology, which explores human emotions and behavior in social contexts This theory draws upon insights from psychology, particularly in areas concerning emotions, social dynamics, and human development Fear

of Missing Out (FOMO) is a widely recognized emotional experience that can be illuminated through established theories of emotion, such as the Appraisal Theory, the Social Interaction Theory, and the Temporal Discounting Theory

From the perspective of initiative theory, individuals' emotional responses are shaped by how they assess and process information In the case of FOMO, individuals might evaluate

a specific event or experience as highly significant and rewarding, leading to feelings of anxiety and fear if they choose not to participate

The Social Interaction Theory also posits that FOMO is an emotion influenced by social factors, including comparing oneself to others and succumbing to group pressures The fear

of missing out often arises when individuals observe others engaging in an event or experience and wish to avoid feelings of isolation or exclusion

From the perspective of Temporal Discounting Theory, this theory suggests that individuals prioritize immediate rewards over future benefits In the case of FOMO, people may prioritize short-term experiences and social events over long-term goals, fearing that they'll miss out on immediate enjoyment or social connection

Furthermore, developmental psychology, particularly in the context of children's social development, provides insights into FOMO According to this perspective, FOMO may manifest as a response to social experiences or peer pressure to engage in social activities, which can originate from friends and colleagues and affect both attitudes and immediate needs

These theoretical frameworks not only elucidate why FOMO occurs and how it operates but also lay the groundwork for research and strategies to address FOMO-related emotions

In summary, the FOMO theory offers a psychological framework for exploring and comprehending FOMO emotions, thereby equipping researchers and psychologists with tools to mitigate FOMO and enhance the overall well-being of individuals

1.2.2 Content of FOMO theory

a) Causes of FOMO syndrome

- Social comparison

People often compare their lives and experiences with others, especially on social networking sites When they see others having more enjoyable or successful experiences, they may feel anxious and self-conscious about their lives, leading to FOMO

- Unrealistic expectations

Through social networking sites, people often see edited images and information, creating unrealistic expectations about life People may believe that their lives should always be as exciting and perfect as everyone else's, leading to FOMO when they feel like they're missing out

- Constant connectivity

Mobile technology and social networks allow people to stay connected and follow the lives

of others anytime, anywhere This creates constant pressure to participate and not miss any opportunities, contributing to FOMO

- Social pressure

There may be pressure from friends, colleagues, or family members to participate in social events or activities This pressure can cause FOMO if you feel the need to participate even though you don't want to or don't have time for it

- Ability to self-manage time and prioritize

If you have difficulty managing your time and prioritizing your life, you may feel pressured and feel like you're missing out on opportunities

b) Symptoms of FOMO Syndrome

While FOMO is not presently recognized as a diagnosable condition, a 2021 report featured

in the journal Technological Forecasting and Social Change indicates that it can manifest

in specific indicators These indicators encompass:

- Continuously monitoring social media to observe the activities of others

- Encountering negative emotions when comparing one's life to the perceived experiences of others on social media

- Experiencing mental fatigue or exhaustion attributable to social media usage Furthermore, Erin Vogel, Ph.D., a social psychologist and associate professor at the University of Oklahoma Health Sciences Center, has identified additional signs of FOMO, including:

- Overcommitting and attempting to be present at all events and gatherings

- Isolating oneself from social interactions

- Experiencing physical fatigue

- Struggling with feelings of sadness, anxiety, or depression

- Having difficulty focusing or concentrating

- Facing challenges in getting restful sleep

FOMO can lead to excessive social media consumption and phone-checking during social interactions Decreasing the time spent on social media and disabling notifications can alleviate anxiety related to missing out on updates

- Embrace mindfulness and live in the moment

FOMO often arises from preoccupation with others’ activities rather than fully engaging in one's own experiences Engaging in mindfulness practices like meditation can assist individuals in concentrating on the present moment rather than fixating on potential missed opportunities

- Cultivate interests beyond social media

When one's sense of belonging and self-worth is closely tied to their online persona and activities, it can intensify FOMO Developing meaningful hobbies, interests, and relationships independent of social media can help address this issue

- Reevaluate social comparisons

A significant portion of FOMO originates from comparing one's own life to an idealized version of others' lives portrayed on social media Learning to critically assess social comparisons and reinterpret them in a less anxiety-inducing manner can aid in managing FOMO

- Restrict social media comparisons to close contacts

If it's challenging to limit social media use entirely, narrowing comparisons to updates from real-life close friends and family, rather than acquaintances with whom one has a limited connection, can provide a more balanced perspective on social media content and reduce FOMO triggers

- Cultivate self-acceptance

FOMO can partly result from a perpetual feeling of inadequacy and the sense that one hasn't achieved or experienced enough Fostering self-acceptance and finding contentment in one's unique life path, rather than constant seeking, can diminish susceptibility to FOMO

2 The relationship of FOMO with other factors

Figure 1: Fear of missing out among social media users

In earlier studies, researchers have explored the influence of FOMO on social media users, with a particular focus on various platforms like Facebook (Blachnio and Przepiorka, 2018), WhatsApp (Sha et al., 2019), and Instagram (Hunt et al., 2018) Franchina et al (2018) discovered that individuals experiencing a high degree of FOMO tend to use multiple social media platforms and often face distress due to problematic usage

Hughes, Rowe, Batey, and Lee (2012) claimed that “All social networking sites facilitate online, social interaction, yet they do not all offer the exact same services or have the same focus” (p.561) Certainly, in the contemporary landscape of social media, a plethora of platforms vie for user engagement by offering distinctive experiences and facilitating the dissemination of diverse content As an illustration, Facebook fosters the formation of communities for interaction among individuals with shared interests, while Twitter affords

users the opportunity to succinctly express opinions and narratives Instagram provides a medium for the sharing of visual content in the form of photos and videos, in contrast to Periscope, which caters to the provision of extended live-streaming services Consequently, the act of disseminating information has evolved into a multifaceted endeavor, with the choice of a particular media platform contingent upon the nature of the information intended for sharing Hence, an individual who actively engages with a diverse array of social media platforms on a daily basis will inevitably be exposed to a greater volume of activities in which others participate, in contrast to someone who exclusively employs a single social media platform Fear of Missing Out (FOMO) can be defined as an individual's apprehension associated with the prospect of missing out on experiences that others are currently undergoing (Hetz, Dawson, & Cullen, 2015) Consequently, it is plausible to infer that heightened exposure to various facets of other individuals’ lives may result in an elevated level of FOMO, given the increased likelihood of encountering missed experiences and opportunities for communication

People who use social media a lot may feel anxious or worried about missing out on things happening online or offline (Rozgonjuk et al., 2019) have advocated for the exploration of FOMO within alternative contexts, as suggested by previous research endeavors (Alt, 2015, 2017) For example, they found that FOMO can make students learn less deeply (Rozgonjuk et al., 2019), have less motivation (Alt, 2015), and face more challenges in their studies (Hetz et al., 2015) They also found that FOMO can make people walk less carefully on busy streets, share false information online, and consume more media than they need These studies show that FOMO is a common and important issue that influences people’s behavior and well-being

The other hypothesis posits that the extent to which individuals have physically met their social media contacts inversely correlates with their FOMO levels FOMO, a construct grounded in social contexts, largely pertains to the activities and experiences of one's real- life acquaintances Furthermore, it is worth noting that social media platforms primarily revolve around the aspiration to sustain intimate connections with friends and family

members, as emphasized in the work of Alt (2015) One study pertinent to substantiating this hypothesis is the investigation conducted by Heitz et al (2015), which scrutinizes the social media utilization patterns of individuals engaged in international study programs The findings from this research underscore that the usage of social media among international students escalates during their time spent abroad (Hetz et al., 2015) Furthermore, scholars contend that the underlying rationale for engaging with social networks varied when the subjects were situated in foreign locales, with students in the United States employing social media as a means to occupy their time and alleviate boredom In contrast, during their international sojourn, students employed social media as

a medium for maintaining communication with their friends and family residing in their home countries (Hetz et al., 2015, p 265) These findings elucidate the role of social networking in fostering a sense of connectedness among individuals with real-life acquaintances The results indicate that people use social media to feel closer to their friends

in real life, which supports the idea that the FOMO increases when they see more of their personal contacts in their feeds

3 Advantages and disadvantages of fear of missing out (FOMO)

- Exploration of new products/services - Keep up with trends

FOMO prompts consumers to try new products and services to stay ahead of trends and be part of the "in-crowd From there, they will buy the right products that keep up with the times, not outdated

- Easily acquiring good items:

When observing people around to see what good and useful items they have? Then "buy accordingly” This will help consumers save time searching and can reduce the risk when purchasing those items based on seeing how others use them

- Attractive programs and discount:

FOMO can help consumers save money on their purchases, because if they don't buy the product right away, they may miss the chance to get a special discount price

- Create a sense of anticipation and delight in customers:

Customers might feel anticipatory and happy when engaging in activities or shopping for goods, especially when they experience good deals and feel satisfied knowing they save money

b) For business

- Stimulating Consumer Demand:

By creating a sense of urgency scarcity for the product, businesses can encourage consumers to purchase the company's goods The business often favors influential individuals (Influencers) to experience and test their products, and then share their experiences on social media Consequently, people around them feel envious and immediately desire to own it, stimulating the increasing desire to possess the product

- Higher customer engagement

Marketing campaigns shouldn’t just be about encouraging immediate conversions It’s also important to consider the long-term success of business — and customer engagement is a crucial part of this

When a business uses FOMO marketing, customers will have been prompted to do business with that company due to social psychology rather than any other factor They’ ll feel that continuing to engage with the company will mean that they’re part of a community, whether

that’s a community of social media influencers or other customers who posted customer testimonials

- Amplified brand awareness

FOMO effects on customers will have a positive impact on brand awareness If a customer discovers a brand on social media, they’ Il be more likely to post about any purchase they’ ve made — this is a way of communicating that they’ ve joined a social group

Growing a company's social media audience is crucial for any growing business and is a great way to amplify brand awareness It also effectively replicates those feelings of FOMO

as more people see your products online

- Enhanced repeat business and loyalty

FOMO strategies can enhance brand loyalty, especially when customers perceive the brand

as trendy and innovative Repeat business is the goal of any business that wants to grow — after all, loyal customers are likely to spend more than new ones, they tend to recommend the brand to others, leading to organic growth

- Increasing purchasing potential of prospective customers:

With the FOMO phenomenon, potential customers are afraid of missing out on the product, thereby increasing their likelihood to make a purchase

- Increase sales: FOMO can make customers more motivated to buy your products

or services so as not to miss a great opportunity

3.2 Disadvantages

a) For consumers

- Wasteful shopping, unnecessary purchases

Indulgence and peer pressure cause consumers to buy products irrationally, without genuine needs Consequently, customers may feel regretful about their behavior