FOMO and Impulse Buying: A Behavioral Study of Gen Z in the Fashion Market

Abstract

Easy availability of online platforms has led to an increase in the number of suppliers and competition between businesses. To attract customers, companies have used the fear of missing out (FOMO) effect through advertising messages that stimulate the fear of missing out in each individual, prompting them to make quick purchasing decisions. In recent years, the fashion industry has undergone a significant transformation, driven largely by the rise of digital technology and social media. Among the most influential consumer segments in this landscape is Generation Z (Gen Z). Gen Z means a person born between the mid-1990s and early 2010s. This generation is characterized by its digital connectivity, with a strong affinity for online shopping and social media engagement. As a result, understanding their purchasing behavior, particularly in the context of impulse buying, has become increasingly important for fashion brands and marketers. Additionally, promotional offers play a crucial role in driving impulse purchases. Retailers and fashion brands frequently use strategic discounting, flash sales, limited-time offers, and exclusive deals to create a sense of urgency and scarcity. These marketing tactics leverage the psychological principle of loss aversion, where consumers feel compelled to act quickly to avoid missing out on a good deal. For brands and retailers, there is a significant opportunity to shift away from reliance on aggressive discounting and short-term sales tactics. Instead, they can focus on building long-term relationships with customers by offering rewards for sustainable shopping habits and promoting mindful consumption. Loyalty programs that incentivize conscious purchases, alongside efforts to highlight the environmental impact of fast fashion, can encourage Gen Z to buy with purpose and awareness.