VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL STUDENT RESEARCH REPORT THE IMPACT OF FOMO MARKETING ON CONSPICUOUS CONSUMPTION IN VIETNAM Student: Đặng Mỹ Ngọc ID: 22070529 Class: IB2022B 1 TEAM LEADER INFORMATION I. Student profile - Full name: Đặng Mỹ Ngọc - Date of birth: 10/09/2004 - Place of birth: Ha Noi - Class: IB2022B 1 - Program: International Business - Address: Ha Noi Picture 4x6 - Phone no. /Email :0866617021/ hanaanh624@gmail. Academic Results (from the first year to now) Academic year Overall score Academic rating 2022-2023 3.
Other achievements: Hanoi, 15th April 2024 Advisor Team Leader (Sign and write full name) (Sign and write full name) 2 TABLE OF CONTENTS] ACKNOWLEDGEMENT .10 CHAPTER 2: LITERATURE REVIEW .1 Theory framework: SOR model and social learning theory .2 Luxury brand and conspicuous consumption .5 The impact of eWOM on FOMO .6 The impact of celebrity endorsement on FOMO .7 The impact of scarcity on FOMO .8 The mediation role of FOMO.2 Sampling method and data collection .20 CHAPTER 4: DATA ANALYSIS AND FINDINGS .25 Assessment of the structural model. 25 CHAPTER 5: DISCUSSION, LIMITATION AND CONCLUSION .47 4 LIST OF TABLES Table 3-3: Construct and measurement items. 21 Table 4-1: Respondent demographic (n=237). 24 Table 4-2: Outer loadings.
26 Table 4-3: Reliability and validity of the constructs. 27 Table 4-4: Fornell Larcker criterion. 29 Table 4-5: Heterotrait-Monotrait ratio (HTMT). 29 Table 4-6: Collinearity issues.
32 Table 4-9: Path coefficients. 33 Table 4-10: Results of hypotheses testing. 36 LIST OF FIGURE Figure 3-1: Research structural model. 19 Figure 4-1: PLS-SEM results in modeling.
31 Figure 4-2: Bootstrapping results in modeling. Project Code (Code:KT. Member List: Full Name Class ID Đặng Mỹ Ngọc IB2022B 1 22070529 3. Trần Công Thành 6 ACKNOWLEDGEMENT I would like to extend our heartfelt gratitude to Dr.
Tran Cong Thanh for his invaluable guidance and unwavering support throughout the duration of this research. Additionally, I wish to express our sincere appreciation to my friends and professors at Vietnam National University, Hanoi, who participated by filling out my survey. Their assistance in distributing the questionnaire was instrumental in completing this study. Without their participation, this research would not have been possible.
Finally, our deepest affection goes to our family for their constant love, motivation, and steadfast support. Their encouragement has been a powerful driving force that propelled us to achieve our research goals Ngọc Đặng Mỹ Ngọc 7 LETTER OF DECLARATION I declare on my sole responsibility that the work presented in this research, titled “The impact of FOMO marketing on conspicuous consumption in Viet Nam” is an original piece of research conducted under the guidance of Dr. Tran Cong Thanh and has neither been published nor presented for any purpose elsewhere. I bear full responsibility for the ethical considerations on our own data collected and the accuracy of the data and contents presented in this thesis.2024 Đặng Mỹ Ngọc 8 ABSTRACT Purposes/aim: the aim of this study is to identify the factors of FOMO Marketing that impact on conspicuous consumption in Vietnam and evaluate the influence of factors.
The findings of this study will contribute to a deeper understanding of FOMO marketing and conspicuous consumption Design/Methodology/Approach: A questionnaire was designed and sent through the online survey. The number of valid samples was 237. The sampling method was a combination of convenience sampling and snowball sampling. The data were then analyzed on SmartPLS 4 software.
Findings: This study uses SOR model and social learning theory to find celebrity endorsement positive impact on conspicuous consumption with FOMO as a mediator. The study also highlights that brand trust is an important factor that both directly influences and serves as a mediator, leading to FOMO (Fear of Missing Out). Implication: This is one of the first studies combining social learning theory and S-O- R model in the field of FOMO marketing. This study contributes to the existing literature on FOMO and consumer behavior, clarify the intermediary role of brand trust in the relationship between FOMO and consumer behavior while proposing factors that help marketers effectively leverage FOMO to boost sales in the luxury industry.
Limitation: The number of research on FOMO marketing and consumer behavior are limited , the study relies heavily on assumptions made by the author. The data collection primarily focused on Hanoi and exhibited a high gender gap, predominantly representing individuals aged 18-27. Keywords: FOMO marketing, Conspicuous consumption, Celebrity endorsement, eWOM , Brand Trust 9 CHAPTER 1: 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. 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.
Recent studies have shown that informational incentive and scarcity are predictors of the external environment leading to FOMO (Alfina et al. FOMO has been associated with consumers' behavioral intentions (Kim et al., 2020), conformity consumption behavior (Kang et al. 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 Asian economy is growing rapidly, witnessing a change in luxury purchasing behavior towards conspicuous consumption behavior, especially in emerging markets such as China, India, and the Middle East. (Padoshen et al., 2010),(Bhar et al., 2022),(Jiang et al. Luxury brands from Europe and the US quickly dominate this fertile market, meeting the consumer needs of the growing middle class. According to Statista, Vietnam's luxury goods reached $957.2 million in 2023, with an annual growth rate of 3.
With a population exceeding 100 million, Vietnam's middle class is projected to grow by an additional 23.2 million by 2030, as reported by World Data Lab. Figures show that Vietnam is a potential market for the luxury goods industry. Research on conspicuous consumption is a topic of interest 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, 10 and the questionnaire will be distributed online for quick results. The data will then be analyzed using SmartPLS 4 software. This study contributes to the existing literature on FOMO and consumer behavior, while proposing factors that help marketers effectively leverage FOMO to boost sales in the luxury industry.
11 CHAPTER 2: LITERATURE REVIEW 2.1 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. 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.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.
FOMO was also positively associated with consumers’ behavioral intentions (Kim et al. 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.
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. In this study, the Social Learning Theory has been integrated into the "Organism" component of the S-O-R model to explain the mechanisms behind the formation of FOMO and Brand Trust through observational learning. Stimulating factors such as 12 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.2 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. 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).3 FOMO marketing FOMO is a psychological phenomenon in which people feel anxious and afraid that they will miss out on important experiences, events, or opportunities that everyone else is participating in.
FOMO can be divided into 2 domains: non-marketing and marketing. 13 (Alfina et al. 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. In consumer behavior, FOMO can mediate the effect of individual consumer characteristics on consumption (Argan et al.
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 2.4 Brand Trust Brand trust is a psychological construct that refers to the degree of confidence that consumers have in a brand's reliability, integrity, and honesty (Chaudhuri & Morris B.