Keywords: FOMO marketing, Conspicuous consumption, Celebrity endorsement, eWOM , Brand Trust... The research is built upon the SOR model and social learning theory along with literatur
INTRODUCTION
FOMO Marketing has emerged as an effective advertising strategy, leveraging consumers' feelings of anxiety and fear to stimulate and encourage their shopping behavior (Zhang et al., 2022) In the context of consumer behavior, the factors leading to FOMO situations are categorized into four major types: psychosocial, usage-related, external-related, and physiological (Alfina et al., 2023) Recent studies have shown that informational incentive and scarcity are predictors of the external environment leading to FOMO (Alfina et al., 2023) FOMO has been associated with consumers' behavioral intentions (Kim et al., 2020), conformity consumption behavior (Kang et al., 2019), purchasing likelihood (Good & Hyman, 2021), and bandwagon consumption (Kang &
Ma, 2020) The study by Argan et al (2022) suggested that FOMO mediates the relationships between consumer need for uniqueness, consumer independence, and consumption behaviors related to conformity and conspicuousness
The burgeoning Asian economy has fueled conspicuous consumption, particularly in emerging markets like China, India, and the Middle East European and American luxury brands have swiftly capitalized on this growing market, catering to the affluent middle class Vietnam, with its vast population and rapidly expanding middle class, has emerged as a promising market for luxury goods, reaching $957.2 million in 2023 and projected to continue its growth These trends underscore the significance of understanding conspicuous consumption in the luxury goods industry and the potential of Vietnam's market.
Despite the positive impact of FOMO Marketing on consumer behavior, its influence on conspicuous consumption in Vietnam remains underexplored This study aims to address this gap by identifying the factors of FOMO marketing that impact on conspicuous consumption in Vietnam and evaluating their impact on FOMO The research is built upon the SOR model and social learning theory along with literature on eWOM, celebrity endorsement, scarcity, FOMO, brand trust, and conspicuous consumption A convenience sampling method combined with snowballing will be used,
Through an online questionnaire, this study delves into the impact of FOMO (Fear of Missing Out) on consumer behavior in the luxury industry The data collected will be analyzed using SmartPLS 4 software By exploring factors that influence FOMO, this research aims to provide marketers with insights into effectively harnessing FOMO to enhance sales and contribute to the existing body of knowledge on FOMO's influence on consumer behavior.
LITERATURE REVIEW
Theory framework: SOR model and social learning theory
The new S-O-R model (Stimulus-Organism-Response) is a theoretical framework proposed by psychologists Mehrabian and Russell This workflow is used to understand the relationships between a stimulus (S), an organism (O), and a response (R) in the context of customer behavior External environment factors affect an individuals' affective (emotion) and cognitive (perception) reactions, then promote behavioral responses (Zhang et al., 2022) The SOR model is used to investigate how the characteristics of short video platforms affect users' willingness to share marketing information and users' flow experience as a mediator (Shi et al., 2023) The SOR model was also studied and considered FOMO as a mediating factor promoting the impact of shortage of medical protective equipment on impulsive buying (Zhang et al., 2022) FOMO was also positively associated with consumers’ behavioral intentions (Kim et al., 2020) In this study, we propose that the external environmental factors are stimulus (S) which include eWOM, celebrity endorsement, scarcity that have a strong impact on the psychological factors considered as organism (O) which are brand trust, FOMO Thereby promoting conspicuous consumption which is seen as response (R)
Social learning theory, developed by psychologist Albert Bandura, proposes that learning occurs through observing, imitating, and modeling the behavior of others (Chen et al., 2017) According to Bandura, people observe behavior directly through social interactions with others or indirectly by observing behavior through media (Bandura,
1986) Social learning theory has applications in various fields, including social work, where it can be used to promote health behaviors and education (Weisner & Silver, ).It emphasizes that people learn new information and behaviors by observing others, which is particularly relevant in social commerce, where consumers' acquisition of knowledge from society commerce components (SCCs) impacts their cognitive and affective attitudes, ultimately embracing their purchase intention (Chen et al., 2017)
Integrating the Social Learning Theory into the S-O-R model's "Organism" component reveals the role of observational learning in shaping Fear of Missing Out (FOMO) and Brand Trust Factors such as vicarious reinforcement and modeling influence individuals' behaviors and perceptions, leading to the formation of FOMO or Brand Trust based on their observations of others' experiences and behaviors.
13 eWOM, celebrity endorsement, scarcity activate the observational learning process, thereby creating the internal states of FOMO and brand trust in consumers
While the Social Learning Theory explains the mechanisms behind FOMO and Brand Trust formation through observational learning, it doesn't fully detail the impact of Scarcity on FOMO
The S-O-R model focuses on how stimulating factors affect the "Organism" and how the "Organism" responds to these factors It provides a more comprehensive and specific approach to analyzing the mechanisms through which eWOM,celebrity endorsement, scarcity, influence consumer behavior
Combining the social learning theory with the S-O-R model offers a more comprehensive and deep theoretical basis for understanding the impact of FOMO marketing on conspicuous consumption.
Luxury brand and conspicuous consumption
A luxury brand is a branded product or service that consumers perceive as high quality, providing authentic value through desired benefits, whether functional or emotional It is characterized by a prestigious image in the market, established on qualities like artisanship, craftsmanship, or service excellence( Ko et al.,2019) Luxury brands are deemed worthy of commanding a premium price and have the ability to foster a profound connection or resonance with the consumer.( Ko et al.,2019)
Conspicuous consumption is a phenomenon in which consumers purchase expensive products and services to display wealth and social status These products often not only meet basic needs but are also symbolic and indicative of the owner's social class This concept was first introduced in 1988 by American scholar and sociologist Thorstein Veblen (Trigg, 2001).
FOMO marketing
FOMO (Fear of Missing Out) is a common psychological phenomenon where individuals experience anxiety due to the perception that they are missing out on significant experiences or opportunities This fear can manifest in two distinct domains: non-marketing and marketing Non-marketing FOMO arises from a personal perception of missing out on social or personal events, while marketing FOMO is induced by targeted advertising and promotional campaigns that create a sense of urgency and exclusivity.
(Alfina et al., 2023) FOMO is often associated with negative behaviors arising from social media use (Rautela & Sharma, 2022), but in the marketing context, marketers can drive FOMO to have a positive impact on consumer behavior (Zhang et al., 2022)
In consumer behavior, FOMO can mediate the effect of individual consumer characteristics on consumption (Argan et al., 2022) FOMO is the mediating variable driving the relationship between scarcity of medical equipment and impulse buying FOMO was also found to have an impact on conformity consumption behavior (Kang et al, 2019), purchasing likelihood (Good & Hyman, 2021), bandwagon consumption (Kang & Ma, 2020) Recently, the new concept of FOMO is consumer-centered FOMO that suggests that FOMO as a personal tendency, it is imagined as an anxiety of not getting a product or engaging in an experience (Good & Hyman, 2021) but this feeling is more directly related to and easier to grasp consumer behavior (Argan et al,
2022) FOMO has two dimensions: desire for belonging and anxiety of isolation It has been discussed in terms of a desire to generally belong to the group and fear of being left out of the group (Kang et al, 2019)
H1: FOMO has a positive impact on conspicuous consumption
Brand Trust
Brand trust, a key factor in consumer behavior, encompasses the level of confidence customers place in a brand's trustworthiness, integrity, and genuineness Within the fast-food industry, social media marketing tactics directly impact brand trust, which consequently influences consumers' purchasing decisions.
H2 :Brand trust has a positive impact on conspicuous consumption
When consumers trust a brand, they often feel more secure and assured when making purchasing decisions This trust is built on a foundation of reliability, quality, and positive experiences associated with the brand Trust in a brand can lead consumers to believe that the products or services offered will meet their expectations This trust can increase feelings of FOMO, as consumers believe that products from a luxury brand are a must-have
H3: Brand trust has a positive on FOMO
The impact of eWOM on FOMO
In today's digital age, electronic word-of-mouth (eWOM) has become a powerful tool for consumers and businesses alike (Gulumbe et al., 2017) Electronic word of mouth (eWOM ) is defined as any positive or negative statement made by a potential, actual, or former customer that is accessible to a wide audience via the Internet (Thorsten Hennig-Thurau, 2004), (Huete-Alcocer, 2017) It includes various forms of communication, such as , social media posts,online testimonials and user-generated content (Wang & Rodgers, S., 2011) eWOM has a significant impact on brand image and the mediating role of the brand image between eWOM and purchase intention (Kala
& Chaybey, 2018) Credibility in eWOM plays a crucial role in building consumer trust, fostering purchase intention, and positively affecting brand image (Wang & Rodgers, S., 2011) eWOM communication has a significant impact on brand trust (Jalilvand et al., 2011) When they see positive reviews and recommendations from other consumers, it validates their own beliefs and perceptions about the brand, making them more likely to trust it (Huete-Alcocer, 2017)
Currently, there is little research showing the relationship between eWOM and FOMO This study hypothesizes that accessing reviews and social media posts that consumers create will increase trust in brands Once they trust the brand, consumers will develop a FOMO (Fear of Missing Out) mentality with the desire to also own luxury products that others have and worry about missing out on the opportunity to own luxury products Interacting with eWOM content will create a feeling of wanting to own the product and a fear of missing out on the opportunity to buy the product like others, especially when trusting the brand
H4a: eWOM has a positive impact on FOMO
H4b: Brand trust mediate relationship between eWOM and FOMO
The impact of celebrity endorsement on FOMO
Celebrity endorsement is a marketing strategy in which a brand partners with a celebrity to promote its product or service This partnership requires the celebrity to act as a brand
16 spokesperson, endorsing the brand's claims and positioning by associating their image with the brand There have been many studies indicating that celebrity endorsements promote attitudes toward the object endorsed compared with advertisements without endorsements (Grọve & Bartsch, 2021) Celebrity endorsements can help build trust in brands of consumers is higher, with the celebrity's commitment to using the brand he endorses showing that the celebrity trusts the brand, leading to a positive influence on brand trust and intention purchase
The study hypothesizes that celebrities have a large influence when associated with products/services to spread messages, it will create attention and FOMO when they see that everyone around them is interested and participating on that social product or service This attention stimulates curiosity and desire from customers, causing pressure to join the trend so as not to miss out on what's hot If a celebrity that customers respect and admire endorses a luxury product or service, customers tend to believe that the product or service is trustworthy and valuable This can cause FOMO in customers as they don't want to miss out on the opportunity to experience what the celebrity is endorsing
H5a: Celebrity Endorsement has a positive impact on FOMO
H5b: Brand trust mediate relationship between celebrity endorsement and FOMO
The impact of scarcity on FOMO
Scarcity is a marketing tactic in which marketers increase the value of a product by reducing its supply, making people want that product more due to its limited quantity(Zhang etal., 20210 In the context of fast fashion, brands provide a limited number of products in a limited time to promote consumers to make impulse purchases The perception of scarcity created by brands can create pressure on consumers, then lead to impulsive buying (Cengiz & Şenel, 2023) Perceived scarcity value, or perceptions of the uniqueness of an opportunity, may make ‘missing out’ appeals even more effective (Hodkinson, 2016)
H6a: Scarcity has a positive impact on FOMO towards luxurious product
The mediation role of FOMO
Fear of missing out was found to mediate the relationship between scarcity and panic buying (Parveen et al, 2022), user engagement and social media addiction (Sultan,
2021), need for uniqueness, personality consumer independence and consumption behavior (conformity and conspicuous) (Argan et al, 2022), scarcity and impulsive buying behavior (Zhang et al, 2022)
H6b : Fear of missing out (FOMO) mediates the relationship between scarcity and Conspicuous Consumption
The study hypothesizes that when consumers are exposed to eWOM about luxury products or brands, eWOM creates desire to belong and anxiety of isolation FOMO then leads to their conspicuous consumption behavior Perceptions of exclusivity or social desirability conveyed through eWOM may evoke FOMO, which in turn motivates consumers to engage in conspicuous consumption as a way to demonstrate social status and wealth
H4c: Fear of missing out (FOMO) mediates the relationship between eWOM and Conspicuous Consumption
The impact of celebrity endorsements and FOMO remains largely unexplored However, there is related research, it shows the imitation of influencers has a significant impact on customer buying intention toward end prevosed products and Fear of Missing Out (FOMO) as a mediator (Ding & Lee, 2021) The important difference between celebrity and influencer is career path While influencers gain popularity independently, building relationships with followers, celebrities achieve fame through institutional support (e.g., acting, singing) and can be aspirational figures (Grọve & Bartsch, 2021) Celebrity endorsements are often more subtle than influencer endorsements (Grọve & Barsch, 2021).Both celebrity endorsement and influencer have lots in common in attractiveness, credibility, expertise, and familiarity so we hypothesize that
H5c: Fear of missing out ( FOMO ) mediates the relationship between Celebrity endorsement and Conspicuous Consumption
Brand trust impacts on FOMO, which in turn motivates individuals to engage in conspicuous consumption When individuals trust a brand, they trust in its reliability and value This trust creates a feeling of FOMO , because they do not want to miss out on opportunities associated with the brand, their group As a result, they engage in conspicuous consumption, seeking to express their association with the brand and satisfy their desire to be part of a trend or group They show-off luxury products FOMO acts as an intermediary, linking brand trust and conspicuous consumption
H7: Fear of missing out (FOMO ) mediates the relationship between Brand Trust and Conspicuous consumption
METHODOLOGY
Questionnaire designed
We collect quantitative data through an online survey based on a questionnaire Using standardized questionnaires and surveys, quantitative research can collect large amounts of data quickly and effectively Quantitative research allows measuring and determining relationships between variables By using statistical methods and data analysis, it helps to determine the influence of variables on each other and determine the relationship between them
We built a questionnaire containing elements related to the topic to collect information from survey participants The questionnaire includes the factors eWOM (EW), Celebrity endorsement (CE), scarcity (SC), Brand Trust (BT), FOMO (FM), conspicuous consumption (CC)
Sampling method and data collection
The survey subjects are those who have bought and intend to buy luxury products in Vietnam There are 31 observable variables, determined according to the 5:1 ratio formula, so the minimum sample size specified is 155 The sampling method is a combination of convenience sampling and snowball sampling The data collection technique is a questionnaire collected via Microsoft Form We received a total of 298 responses However, 61 responses were excluded from the analysis Among these, 58 respondents indicated that they had never purchased and had no intention of buying luxury goods in the future Three responses were excluded due to not meeting the survey requirements The number of valid samples is 237.
Measurement
This study uses a 5-level Likert scale Survey participants will choose the most appropriate answer including the levels ''Strongly disagree'', ''Disagree'', ''Neutral'', ''Agree'', ''Strongly agree''
The question were adapted from (Bambauer-Sachse & Mangold, 2011) to measure eWOM
Questions are selectively adapted from (Ohanian, 1990) and (Sanoberkhan, 2017) The questionnaire of (Sanoberkhan, 2017) is an internet reference source, not a ranked newspaper source
Questions were adapted from the questionnaire by (Wu et al ,2012) to measure Scarcity Luxury product are added to fit the topic
The survey question took 3 variables 'I feel this coffee shop is well known to the public' and 'I feel this coffee shop has a prestigious image', 'I feel this coffee offers a safe
21 product' in the edited questionnaire by Innocentius Bernarto et al (2020) There are two question 'i can recognize I can recognize the logos of luxury brands' and 'I trust that owning luxury products increases my social status' were added by the author
The survey questions were adapted from 5 variables in the questionnaire from Kang et al., 2019 to measure FOMO The question was adjusted to the word luxury product
The survey questions were adapted from 6 variables from ( Areiza-Padilla & Puertas,
2021) questionnaire to measure conspicuous consumption The question was adjusted to the word 'luxury product
Table 3-3: Construct and measurement items
Construct Items Code Researcher eWOM I often read other consumers’ online product reviews to know what products/brands make good impressions on others
I frequently read online product reviews by other consumers to understand which products/brands make a favorable impression on others
To make sure I buy the right product/ brand, I often read other consumers’ online product reviews
If I don’t read consumers’ online product reviews when I buy a product/brand, I worry about my decision
When I buy a product/brand, consumers’ online product reviews
22 make me confident in purchasing the product/brand
I will buy a luxury product that my favorite celebrity endorses
I pay more attention towards advertisements/recommendations presented by attractive/beautiful celebrities
I think luxury products endorsed by are trustworthy
I find luxury products endorsed by celebrities are informative
I buy a luxury product because the celebrities are using it
Scarcity I think that the current supply of luxury products is small
I think the luxury products is selling out soon
I think that many people will buy luxury product
I feel that the shortage of luxury products will cause many people to buy
FOMO I tend to consume luxury products to express my supremacy to others
I tend to buy luxury products to share the values of mainstream groups
I have been interested in luxury products in the desire to be recognized by people around me
I would not be able to get along with them unless I buy the luxury products they have
I feel like I’m being neglected by the group if I do not buy the luxury products that people have
I am afraid that if I do not buy the luxury products that people have, I will be out of trend
Brand trust I can recognize the logos of luxury brands TBI1 Author
I trust that luxury brands are very well known to the public
I trust that luxury brands have a prestigious image
I trust that luxury brands provide products of good quality
I trust that owning luxury products increases my social status
People buy luxury products for uniqueness, to have services others do not own
People buy luxury product to show off to noted
Luxury product from luxury brand are symbol of success and prestige
People using luxury products increase their own value from the point of view of others
Using luxury products increases respect from others
If people could afford It , luxury limited product would be bought
DATA ANALYSIS AND FINDINGS
Data description
They want to collect information about people who have purchased and intend to buy luxury products Basic information about gender, age, education level, occupation, monthly income, place of residence, average time spent using social networks per day This demographic data gives an overview of the sample group and helps to better understand their characteristics while eliminating subjectivity and ensuring objectivity in the research process
After 10 days of sending links online, we received a total of 237 valid responses for analysis The sample included 183 (21.51%) females and 51 (21.51%) males Most have a university education (82.7%) Students and working account for the majority with 63.71% and 29.95% respectively According to the data table collected, the average monthly income ranges from 0-5 million VND accounts for the highest rate with 56.96%, followed by 10-20 million with a rate of 13.5% Most of the people surveyed are currently living in Hanoi Only 4,219% of respondents said they use social networks less than 1 hour/day The demographics of the sample are presented in Table 4-1
Area of residence Ha Noi 223 94.09
Urban areas of other provinces
Rural areas of other provinces
Average time spent on social media per day
Data Analysis
To evaluate the model fit and test the accuracy of the hypotheses, this study uses the PLS-SEM model
Assessment of the structural model
BT CC CE EW FM SC
PLS analysis shows that the sets of factor loadings range from 0.803 to 0.913 All are above the level of 0.7 or higher as recommended by Hair et al, 2013 Therefore, there is no need to remove any variables from the model
Reliability and validity of the constructs
Table 4-3: Reliability and validity of the constructs
Construct CA rho_a rho_c AVE
To assess model reliability, two indices are used: Cronbach's Alpha (CA) and Composite Reliability (CR) According to Hair et al (2016) and Bagozzi & Yi, CA and CR scores exceeding 0.70 are considered satisfactory.
1988) Table 4-3 shows that all indexes of CA and CR are above the recommended level of 0.7, thus sufficient to confirm the internal consistency of the data
Cronbach’s Alpha values ranged from 0.864 to 0.951, whereas composite reliability ranged from 0.907 to 0.961 All composite reliability values were greater than 0.8
28 indicating strong internal consistency However, some composite reliability values exceed the 0.95 threshold, potentially indicating a dormant state of the indicators and undesirable responses such as straight lining (Hair et al., 2019) Table 4-3 shows that the FOMO (FM) value has a composite confidence score exceeding 0.95, corresponding to 0.961 To fully satisfy the requirement of internal consistency, we applied an alternative approach ( Dijkstra & Henseler, 2015), considers rho_a The rho-a value in table 4-3 is between Cronbach's Alpha and Composite Reliability For the FOMO scale, rho_a was 0.953, which is between 0.951 of Cronbach’s alpha and 0.961 of composite reliability Similarly, the rho-a value of eWOM is 0.951, which is between Cronbach's Alpha and Composite Reliability Using these two methods, we confirmed the internal consistency reliability of the data, allowing for further testing
The study employed Average Variance Extracted (AVE) to assess convergence A scale meets convergent validity when AVE exceeds 0.5 (Hock & Ringle, 2010) The AVE values presented in Table 4-3 range from 0.71 to 0.828, all surpassing the threshold of 0.5 This result indicates that the construct variables sufficiently account for the variance in their respective observed variables, demonstrating the model's high level of reasonableness.
Discriminant validity shows the distinctiveness of a construct when compared to other constructs in the model The traditional method proposed by ( Fornell & Larcker, 1981) is to use the square root index of AVE However, HTMT is considered to be a more accurate assessment method because this traditional method has shortcomings ( Henseler, M Ringle, & Sarstedt, 2015) demonstrated that the discriminant validity is better assessed by the HTMT index through the use of damaged tissue studies
BT CC CE EW FM SC
Table 4-4 shows that the AVE square root values of BT (0.879) ,CC (0.858), CE (0.859),
EW (0.91), FM (0.896), SC (0.843), are all significantly larger than any other correlations involving these constructs This indicates that all constructs are valid measures of the unique concepts they represent
Table 4-5: Heterotrait-Monotrait ratio (HTMT)
BT CC CE EW FM SC
The HTMT index (Heterotrait-Monotrait Ratio) is used in measurement model analysis in a structural equation modeling (SEM) to evaluate the discrimination between latent variables
The values of HTMT are all below 0.9 according to ( Henseler, M Ringle, & Sarstedt,
2015) and less than 0.85 according to (Kline, 2015) It is therefore concluded that the discrimination between latent variables is excellent
Assessment of the structural model
BT CC CE EW FM SC
(Hair, 2019) introduced the VIF (variance inflation factor) value scale to evaluate the collinearity phenomenon If VIF ≥ 5, there is a very high possibility that the model is collinear and will be seriously affected If 3 ≤ VIF < 5, the model may have collinearity
If VIF < 3, the model does not experience collinearity
Table 4-6 shows that all values are less than 3, so the model does not have multicollinearity
Figure 4-1: PLS-SEM results in modeling
R-square in PLS is used to evaluate the explanatory ability of the PLS model for the dependent variable The R-square index in PLS-SEM is calculated by the square of the correlation coefficient There is no exact standard for how much the adjusted R-squared must be for the model to meet the requirements R-square has a value from 0 to 1, and the closer it is to 1, the better the model is in explaining the dependent variable Level 0.5 is often used for division, from 0.5 to 1, the model is good, less than 0.5 is the model is not good
According to Table 4-7, Conspicuous consumption exhibits a strong explanatory level (55%), while FOMO (37.9%) and Brand trust (48.3%) demonstrate weaker explanatory levels The unexplained portion of the model (45%) may be attributed to external variables and random deviations.
BT CC CE EW FM SC
The f-squared index was introduced by Cohen (1988) to evaluate the effect size of independent variables on the dependent variable If f square < 0.02, the impact is extremely small or has no impact If 0.02 ≤ f square < 0.15, the impact level is small if 0.15 ≤ f square < 0.35 average impact level If f square ≥ 0.35, the impact is large
Table 4-8 shows that CE has a small impact on FM, while it has a large impact on BT
EW had a small impact on FM and BT FM has a small effect on CC and SC has a small effect on FM While BT had a strong effect on CC, this effect was small on FM
Assessment of structural model and hypotheses testing
Bootstrapping results will be run following the procedure assuming a 5% significance level for the value of the two-tailed test, subsample 5000 is the default setting of SmartPLS4 SmartPLS 4 software also applies a 5% significance level to test the p value When p value is higher than 0.05, it shows that the hypothesis is not statistically significant When p value is less than 0.05, it is statistically significant The lower the p-value, the greater the statistical significance of the observed difference (Hair et al.,
2016) stated that for a two-tailed test, the t values of 1.65 (at a significance level of 10%), 1.96 (at a significance level of 5%), and 2.57 (at a significance level of 1%) are considered critical In conclusion, if t-value exceed 1.960 and a p-value is lower than 0.05, it suggests that the observed difference between the means is statistically significant
H4a: EW -> FM -0.242 3.573 0.000 Not supported (opposite direction)
H4b: EW -> BT-> FM 0.050 2.025 0.043 (0.006;0.101) Mediated H5b: CE -> BT -> FM 0.120 2.370 0.018 (0.262;0.423) Mediated H6b: SC -> FM -> CC 0.082 1.988 0.047 (0.009;0.089) Mediated H4c:EW -> FM -> CC -0.049 2.347 0.019 (-0.094;-0.014) Mediated
(opposite direction) H5c: CE -> FM -> CC 0.082 2.497 0.013 (0.026;0.152) Mediated H7 : BT -> FM -> CC 0.044 2.122 0.034 (0.005;0.085) Mediated
Figure 4-2: Bootstrapping results in modeling
To evaluate the discontinuity effect of intermediate variables, the Preacher and Hayes (2008) methodology was utilized This method employs confidence intervals (C.I.) and path analyses (β) to determine the significance of mediating factors C.I excluding zero indicate statistically significant intermediate effects, supporting the presence of discontinuity.
Table 4-9 shows that most of the proposed direct effects are positive except for the impact of eWOM on FOMO (β = -0.242) FOMO has impact on conspicuous consumption when (β = 0.623, p < 0.05, t = 10.512), Brand trust also has a positive impact on conspicuous consumption (β = 0.200 ,p < 0.05, t = 2.300).Brand trust has impact on FOMO (β =0.220, p < 0.05, t = 3.172) Celebrity endorsement has positive impact on FOMO when (β = 0.411, p < 0.05, t = 4.709), Scarcity also has a impact on
FOMO (β = 0.205, p < 0.05, t = 2.558) It can be seen that the influence of celebrity endorsement on FOMO is stronger than the influence of scarcity on FOMO (0.411 > 0.205)
Table 4-9 shows that eWOM impact on FOMO through the mediation of brand trust (β = 0.050, p < 0.05, t = 2.025 ) Similarly, the relationship between celebrity endorsement and FOMO is also expressed through Brand trust (β = 0.120, p < 0.05, t
= 2.37) The results also show that FOMO is also a mediator between the relationship between celebrity endorsement and conspicuous consumption (β = 0.082 , p < 0.05, t 2.497) The results show that FOMO is also a mediating factor between the relationship between scarcity, brand trust and conspicuous consumption (β = 0.082, p < 0.05, t 1.988), (β = 0.044, p < 0.05, t = 2.122), respectively
The CI results of all the above indirect effects do not contain zero Therefore, H4b, H5b, H6b, H5c, H7 are supported
Table 4-9 also shows that FOMO has a mediating role between the nagative impact of eWOM on conspicuous consumption activities when (β = -0.049, p < 0.05, t = 2.347) Therefore, H4c is not supported
DISCUSSION, LIMITATION AND CONCLUSION
Discussion
This research investigates the FOMO (fear of missing out) marketing factors that drive conspicuous consumption in Vietnam and assesses their impact on FOMO Factors include: eWOM (electronic word-of-mouth), celebrity endorsements, perceived scarcity, brand trust, and social learning The study is based on the Stimulus-Organism-Response (SOR) model and social learning theory The survey results, derived from 237 Vietnamese luxury product consumers, supported five out of nine hypotheses, establishing the significant influence of these factors on FOMO and conspicuous consumption behavior.
Fear of Missing Out (FOMO) mediates the relationship between Celebrity endorsement and conspicuous consumption The research also demonstrates that celebrity endorsements can directly impact FOMO and also indirectly impact on FOMO through the mediating variable of brand trust
Celebrities are often artists with a huge fan base and great influence on the public through their popularity, talent or success in their field When celebrities appear with luxury products and services, they create an attractive, trustworthy endorsement This endorsement stimulates FOMO in consumers, because they want to own products like celebrities, not out of trend
Currently, there is little literature regarding the impact of eWOM on FOMO Research also shows that eWOM has a direct negative impact on FOMO eWOM is defined as any positive or negative statement made by a potential, actual, or former customer As customer-generated content, these statements may be negative about the product or may not be interesting enough for customers to experience FOMO Furthermore, information overload from many sources and conflicting opinions can confuse consumers, reducing the possibility of FOMO forming However, eWOM indirectly affects FOMO through the intermediary of brand trust When consumers trust a brand, they desire to own that product and tend to worry if they miss the opportunity to have the product that brand offers eWOM can impact this belief Positive reviews and feedback from consumers can increase trust and create FOMO, while negative eWOM reduces FOMO
Compared to eWOM, Celebrity endorsement is a factor that impacts FOMO through the stronger medium of brand trust This emphasizes the important role of celebrity endorsement in the context of luxury products
The research also shows that Scarcity and Brand trust have an indirect impact on conspicuous consumption through the intermediary of FOMO
Limitation
There are some limitations in this study Firstly,there is a little research on FOMO marketing and consumer behavior, so the research makes many assumptions from the author.Second, the data was collected mainly in Hanoi, the gender gap of the people
39 surveyed was high, mainly in the 18-27 age group, so it cannot completely represent people throughout Vietnam
Contribution
We developed a theoretical framework integrating the SOR Model (Stimulus-Organism- Response) and Social Learning Theory to explain the impact of FOMO marketing on consumer behavior According to the SOR Model, FOMO marketing (Stimulus) stimulates the affective and cognitive (Organism) of consumers, leading to consumer behavior (Response) The Social Learning Theory suggests that consumers learn and mimic consumer behaviors from others This combination helps to elucidate the impact of FOMO marketing on consumer behavior
Our research also indicates that brand trust plays a crucial role in the relationship between FOMO and consumer behavior When consumers trust a brand, they are more easily stimulated by FOMO marketing to engage in conspicuous consumption
Lastly, our study identifies factors that help marketers effectively leverage FOMO to boost sales in the luxury industry.
Conclusion
Social Learning Theory and the S-O-R Model not only complement each other but also create a comprehensive theoretical framework that helps explain how FOMO Marketing affects conspicuous consumption Social Learning Theory helps better understand the mechanism of FOMO and Brand Trust formation, while S-O-R Model helps connect these factors with consumer behavior
The model developed in this study provides a broader understanding of the marketing factors that influence FOMO, and its impact on conspicuous consumption behavior through FOMO
This study breaks new ground by combining Social Learning Theory and the S-O-R model in the realm of social marketing It elucidates the mediating role of Fear of Missing Out (FOMO) between celebrity endorsements and conspicuous consumption, providing novel insights into FOMO marketing By fostering a sense of FOMO, celebrity endorsements can drive consumers towards conspicuous consumption, ultimately influencing their purchasing decisions.
FOMO, brands can collaborate with celebrities to act as brand ambassadors These celebrities, who possess a large fan base and have attractive and trustworthy images, should align with the brand's luxury positioning and use the brand's products Brands can also introduce limited-edition products to enhance consumers' fear of missing out
By leveraging both celebrity endorsements and scarcity, brands can effectively manage negative electronic word-of-mouth (eWOM) and potentially increase sales in the luxury industry
1 Have you ever bought products from luxury brands?
(Luxury brands are often associated with high-end, unique, limited edition and high- priced products)
For example: Gucci, Dior, Chanel, LV, Cartier, OMEGA, Iphone, BMW,,,,
2 Do you plan to buy luxury products in the future?
4 Which of the following age groups do you belong to?
5 Please indicate your educational level
7 Please indicate your average monthly income
Urban areas of other provinces
Rural areas of other provinces
9 Average time spent on soicla media per day
Construct Items Code Researcher eWOM I often read other consumers’ online product reviews to know what products/brands make good impressions on others
I frequently read online product reviews by other consumers to understand which products/brands make a favorable impression on others
To make sure I buy the right product/ brand, I often read other consumers’ online product reviews
If I don’t read consumers’ online product reviews when I buy a product/brand, I worry about my decision
When I buy a product/brand, consumers’ online product reviews make me confident in purchasing the product/brand
I will buy a luxury product that my favorite celebrity endorses
I pay more attention towards advertisements/recommendations presented by attractive/beautiful celebrities
I think luxury products endorsed by are trustworthy
I find luxury products endorsed by celebrities are informative
I buy a luxury product because the celebrities are using it
Scarcity I think that the current supply of luxury products is small
I think the luxury products is selling out soon
I think that many people will buy luxury product
I feel that the shortage of luxury products will cause many people to buy
FOMO I tend to consume luxury products to express my supremacy to others
I tend to buy luxury products to share the values of mainstream groups
I have been interested in luxury products in the desire to be recognized by people around me
I would not be able to get along with them unless I buy the luxury products they have
I feel like I’m being neglected by the group if I do not buy the luxury products that people have
I am afraid that if I do not buy the luxury products that people have, I will be out of trend
Brand trust I can recognize the logos of luxury brands
I trust that luxury brands are very well known to the public
I trust that luxury brands have a prestigious image
I trust that luxury brands provide products of good quality
I trust that owning luxury products increases my social status
People buy luxury products for uniqueness,to have services others do not own
People buy luxury products to show off to noted
Luxury product from luxury brand are symbol of success and prestige
People using luxury products increase their own value from the point of view of others
Using luxury products increases respect from others
If people could afford It , luxury limited product would be bought
FOMO: Fear of Missing Out
BT: Brand trust eWOM: electricity word of mouth
SOR model: Stimulus-Organism-Response
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