Social media marketing strategies influencing purchasing decisions of Gen Z in the luxury goods market

Abstract

     PURPOSES: This research aimed to study the levels of awareness and engagement, and analyze the relationship between social media marketing strategies and the purchasing decisions of luxury goods among Gen Z in Thailand. It also compared effectiveness of the social media and suggested marketing guidelines. METHODS: The research methodology was quantitative, using online questionnaires to collect data from a Gen Z sample (born 2017-2012) of 400 persons. RESULTS: The majority of the sample were female, aged 20-25, and spending more than 4 hours per day on social media. The platform most frequently used for purchasing of luxury goods was Instagram, followed by TikTok and Facebook, respectively. In terms of social media marketing strategies (SMMAs), Gen Z prioritized the most current trend, followed by entertainment. Regarding purchasing decisions, information searching was the most important factor. It was also revealed that SMMAs could significantly predict purchasing decisions. The most influential factors, in descending order, were trendiness, word-of-mouth, entertainment, and customization. Interaction with the brand was found to have no significant influence on purchasing decisions. THEORY/POLICY IMPLICATIONS: Luxury brands marketing should focus on presenting up-to-date and in-trend content, coupled with creating incentives to encourage positive word-of-mouth, since Gen Z trust information from actual users and social media acceptance rather than direct interaction with the brand.