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Inﬂuence of Social Media Marketing on the Purchase Intention of Gen Z
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International Journal of Advanced Science and Technology
Vol. 29, No. 1, (2020), pp. 1692 - 1702
Influence of Social Media Marketing on the Purchase Intention of

Gen Z
Navya Ninan1, Joel Chacko Roy2, Dr Namitha K. Cheriyan3
1
Marian International Institute of Management, Kuttikkanam, Kerala, India 2Bharat Mata
College, Mahatma Gandhi University, Kerala, India
3
CHRIST (Deemed to be University), Bangalore, India
1
navya@miim.ac.in, 2joel4christ@gmail.com, 3namicheriyan@gmail.com
Abstract
The purpose of this paper is to identify the influence of social media marketing on the
purchase intention of Gen Z. A self-administered questionnaire is developed and
distributed to 424 respondents who are born after 1994. Independent sample t-test and
multiple linear regression model are used for statistical data analysis. The study finds
social media marketing more effective than the traditional method of marketing on Gen Z
indicating that social media marketing has a positive impact on their purchase intention,
brand awareness, product perception, brand loyalty and customer-business interactions.
It also reveals that developing the brand awareness, brand loyalty, product perception
and customer-business interactions through social media marketing can ultimately
influence the purchase intention of Gen Z. This paper addresses the differences in the
purchase intention of those who prefer social media ads over traditional ads. It also
highlights the importance of social media in marketing communications which help
companies in retaining their customers and optimising search engine rankings.
Keywords: Social media marketing, Purchase intention, Product perception, Brand

awareness, Brand loyalty, Customer-business interaction, Gen Z
1. Introduction
Over the years, businesses have realised the importance of social media both as a
marketing and a promotional tool. Gone are the days when marketing used to be at our
doorsteps, now it is at our fingertips. The decision-making process of a consumer has
significantly changed since the emergence of Internet and social media.
Today businesses market their products through social networking sites such as
Facebook, WhatsApp, Instagram, Snap chat, YouTube, and Twitter, among others. Such
sites enable users in creating and sharing information in their social networking groups.
Promotional activities of a product or service when done through social media are termed
as social media marketing. Business organisations choose social media marketing over
any other mode of marketing as it enables them not only to retain their customers but also
to interact with them in an improved manner. It further benefits them in attracting
customers by introducing their new products onto the customer’s screen. It has made a
drastic change in the market, making it hard to retain a customer in an online market
given that he/she became less influencing. The social media platforms made customers
more powerful than ever before. They are the one who have benefitted the most from
social media as it has given them the power to control the market through their
sophisticated demands.
The usage and acceptance of social media varies across generations. Generation X
(Gen X), born during 1965-1977, generally comprising of those who think globally and
believe in diversity. They consider technology as a platform to enhance literacy.
Generation Y (Gen Y) or the Millennials, born during 1977-1994, are those with strong
sense of autonomy and self-reliance. They use Internet as an unbounded playground and
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Vol. 29, No. 1, (2020), pp. 1692 - 1702
are multi-taskers. Generation Z (Gen Z), born after 1994, are characterised with having
access to internet from the young age and are highly influenced by the social media. They
realise and utilise the power of technology (Williams, Page, Petrosky, & Hernandez,
2010).
Today, social media marketing is considered as an effective tool to attract customers,
provided that such platforms can contribute to the active involvement and improved
commitment of the customers. Studies have been made on the influence of social media as
a marketing platform on Gen X and Gen Y (Williams et al., 2010). However, Gen Z, who
are connected to the technology and internet from birth and identified as the largest online
customers (Priporas, Stylos, & Fotiadis, 2017) are not widely examined in the empirical
literature for the extent of being influenced by social media marketing. Given this, the
present study aims at analysing the influence of social media marketing on the purchase
intention of Gen Z.
The remaining of this paper is organised as follows: Section 2 offers an overview of the
earlier studies, Section 3 postulates the hypotheses to be proved, Section 4 offers the data
and methodology adopted, Section 5 discusses the results and Section 6 concludes the
paper.
2. Review of Literature
The changing global environment with the technological advancements incorporates
online marketing as an essential component of the promotional mix. Social networking
sites make it easier to create, modify and exchange information about various products
and services. Convenience of the user is the major reason for these marketing strategies to
gain popularity (Kitchen & Proctor, 2015). Being creative on the social media sites can
help retailers to improve the awareness of their brands. It also lead to spread of positive
word of mouth driving to the purchases (Husain & Ghufran, 2016). Social media
marketing also plays a huge role in upgrading the brand’s goodwill. Ismail (2017)
provides that the loyalty of the customer towards a brand grows by means of marketing
done through social media.
The empirical literature identifies social media marketing as a promotional tool and
establishes its relationship with advertising, sales and public relations. Deshmukh (2013)
suggests managers to have proper strategies before marketing their products and services
through social media to ensure higher success rate and to help the company to have a
personal relationship with the customers.
The influence of social media enables companies to increase their customer loyalty and
brand performance. Rapp & Beitelspacher (2013) identify that the effect of the supplier’s
social media usage on the consumer’s social media usage varies by the reputation of the
brand. Das & Mandal (2016) further emphasises that the loyalty of the young customers
towards a brand influences their purchase intention.
Studies are analysing the strategies to be adopted in social media marketing to enhance
customer reach and thereby to increase their intention to purchase a product/service. For
instance, Constantinides(2014) compares two strategies of social media marketing vis. the
active approach, where social media acts as a public relations channel providing a
platform for product personalisation and customer-driven innovations and the passive
approach, where the social media define the market intelligence and customer voice.
From a financial perspective, Wiesel et al. (2018) suggests that if the budget of a firm is
reallocated to online activities, the profits after marketing costs can be improved.
User-generated and marketer-generated contents are identified to affect the repeated
purchase behaviour of the customers. Lin (2018) proves that the purchase intention of
customers can be increased through improved engagement in the social media brand
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community through persuasive contents. When a customer has a positive attitude towards
the social media, his level of engagement will increase, which will, in turn, increase the
scope for social media marketing (Hussein & Hassan, 2017).
Freeman et al. (2014) suggests that customer engagement and interactions can be
improved through marketing on Facebook pages. They prove that the usage of interactive
games, apps and user-generated content are increasing the customer base by magnifying
the reach and personal relevance. Providing one-stop information and lack of information
in the social media contents can also negatively influence the decision making of a
customer (Krishnan, 2014). Therefore, social media marketing requires updating the
contents, providing additional information, and including promotional strategies to attract
the customers.
There are different schools of thought on the usage and effectiveness of social media
marketing. While the defenders use social media marketing as a one-way communication
tool, the explorers use social media marketing as a two-way communication tool that
helps to interact with the users. Defenders entertain the customers while explorers
entertain both the customers and the organisation(Felix, Rauschnabel, & Hinsch, 2016).
Fietkiewicz (2016) argued that by defining the target group and understanding the
frequency of social media, usage one can provide an improved long-term business
relationship with the customers. Thus, they can influence the brand commitment and
decision-making process of the customers. However, Parsons & Lepkowska-white (2018)
cautions that managers should maintain the organisation’s online presence without
varying from the firm’s goals, governance, structure and culture.
Leaders use social media as it is useful in out-bound and in-bound communications
with their customers. The ease of use of social media also helps in increasing the overall
satisfaction level of the customers (Milewicz & Saxby, 2013). Social media marketing
enables in retaining customers who are also the brand ambassadors of the company’s
product as they are the one who help in spreading positive news about the product
(Whiting, 2016). However, a user’s level of intention to purchase a product need not
increase merely because of the purchase history of his/her friend. Han (2016)also
identifies that digital products have higher levels of social media acceptance and purchase
intention compared to a product which is not digital. With the advancement of social
media, users nowadays choose products from the information they have derived from the
social media. As consumers spend more of their leisure time on the internet, organisations
have changed their major portion of marketing budget from the traditional method to the
digital method of marketing (Kumar, Choi, & Greene, 2017).
Ads on social media have a positive impact on the customer’s purchase intention and
purchase behaviour. They are now targeted towards specific sets of audience according to
their needs (Duffett, 2015). The audience themselves produce data which will be sold by
social media to the companies to create their ads. Fisher (2014) states that the audience of
the advertisements not only watches the ads but also produces and distributes them.
Carlson & Superior (2015)suggests that managers can lead their organisation into a
profitable one if they create strategies which focus on increasing the followership in the
college-level environment. Customers are identified to interact more with businesses
while using their private social media (Keinänen, 2015).
Companies also post help-seeking messages in the social media sites such as YouTube,
Facebook and Instagram. The CSR related posts are often used to promote the ethical
image of the firms through community-focused and employee-focused initiatives
(Huhmann & Limbu, 2016).
The literature provides that the behaviour of customers is largely affected by the
generation to which they belong. Lifestyle and attitude of customers in various
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generations (X, Y and Z) can be influenced by various online promotional activities

(Williams et al., 2010). However, generations irrespective of their genders undergo
boredom by usage of different social networking sites which negatively impacts their
acceptance of online advertising and marketing. Singh (2016) emphasises that
understanding the level of social networking sites boredom is essential for the marketers
to reach out to the target audience based on their age. Further, there are differences in
terms of drivers of life satisfaction of various the generations. Chaney, Touzani, &
Slimane (2017) conclude that the older generation is highly sociable and sensitive to
improvements in health than the younger generation. Additional factors such as the usage
details (access, frequency and duration) and demographic variables (age, gender, etc.)
may also affect the consumer behaviour (Duffett, 2017).
Smart retailing techniques and their interactions with generation Z are based on their
perceptions, expectations, suggestions and recommendations. This generation enjoys
more autonomy and speedy transactions through the latest technology. It also enables
them to make highly informed purchasing decisions by adequate training on the usage of
these smart retailing applications (Priporas, Stylos, & Fotiadis, 2017). On the other hand,
Jernigan et al. (2018) critically review the policies of various social media sites designed
to keep the underage youth away from the branded alcohol contents. The study highlights
the importance of restricting the alcohol brand content to underage users which is not met
by some of the social media sites such as Facebook, and Instagram, among others.
The positive and negative influence of social media marketing on generation z is
extensively addressed in the literature. Nevertheless, it has not explored the impact of the
former on the purchase intention of the latter. This study aims at filling this gap.
3. Hypotheses
This study is based on a few propositions, which are to be proved.
Through social media, the young online consumers spread positive word of mouth,
which creates a better understanding of the brand and its related products. This is made
possible by sharing the media content by the users on various social media sites such as
Facebook, and Instagram, among others. Based on this rationale, we propose the first
hypothesis as;
H1: There is a significant difference in the brand awareness of those who prefer social
media marketing to traditional marketing.
Media are influencing an individual’s decision-making process to a larger extent. A
current perception about a particular product or service can be changed by the use of these
websites which can be positive or negative. Socializing and networking plays a vital role
in the product perception of the users of social media. This leads to our next hypothesis
as;
H2: There is a significant difference in the product perception of those who prefer
social media marketing to traditional marketing.
These customers of online marketing tend to build a trust with the brand. Therefore, it
leads to an increase in the brand loyalty by being a delighted customer. This gives our
next hypothesis as;
H3: There is a significant difference in the brand loyalty of those who prefer social
The businesses tend to improve their rapport with the existing online consumers
through sharing content on these sites. By enhancing the customer support and
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relationship, firms have made use of social media as a platform to solve issues and
generate ideas. Accordingly, we propose that;
H4: There is a significant difference in the customer-business interaction of those who
prefer social media marketing to traditional marketing.
The very aim of any marketing technique is to attract new customers and to retain the
existing ones. Through sharing more information and responding to their queries,
businesses have been successful in widening their customer base. This creates an intention
in the online users to purchase the product. Hence, the next hypothesis is;
H5: There is a significant difference in the purchase intention of those who prefer
4. Data and Methodology

This study uses random sampling technique to draw the sample. The inquiry targeted
Gen Z, who was born between 1995 and 2012. A self-administered questionnaire is
developed and distributed to 424 respondents. The questionnaire identifies the marketing
preferences of the generation and its influence on their purchase intention, product
perception, brand awareness, brand loyalty and customer-business interaction. The
variables in the study are measured in a scale of 1 to 5 (where, 1 = “Strongly disagree”
and 5 = “Strongly agree”). The questionnaire had 4-5 questions under each factor, and
then an average score is estimated. The total data collected is reduced to a manageable
sample of 416 eliminating eight unattended responses to derive patterns and to employ
statistical methods. Independent sample t-test and multiple linear regression are used to
analyse the influence of social media marketing on the purchase intention of Gen Z.
Independent sample t-test is used to identify if there is any difference in the associated
population means by comparing the means of two independent groups as given by
equation (1) and (2)
(1)
(2)
Where, t is the test statistic, (x_(1 ) ) ̅is the mean of the first sample , (x_2 ) i̅ s the mean
of second sample, n_(1 )is the sample size/ number of observations of the first sample,
n_2is the sample size/ number of observations of the second sample, S_1 is the standard
deviation of the first sample, S_2is the standard deviation of the second sample and S_p
is the pooled standard deviation.
Multiple linear regression, on the other hand, is used to identify the statistical
relationship between a response and predictor variable. It is employed to understand the
variances in dependent variable, which are explained by the independent variables.
(3)
where, is the constant (line intercept), is the slope of the regression line of
variable 1, is the slope of the regression line of variable 2 and is the error term.
5. Empirical Results and Discussions
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To understand the influence of social media marketing on Gen Z, their preferences

towards traditional ads and social media ads is analysed in this study. A comparison is
made on the brand awareness, product perception, brand loyalty, customer-business
interaction and purchase intention of both the groups. Independent sample t-test is
performed to find out the differences in the population means. Multiple linear regression
models are estimated to find out the extent to which the purchase intention of Gen Z is
influenced by brand awareness, product perception, brand loyalty and customer-business
interaction.
Table 1 presents the summary statistics of the variables used in the analysis. The table
reveals that the mean brand awareness score of those who prefer social media ads is 19.37
whereas that of those who prefer traditional ads is 16.96 on a maximum score of 25. This
clearly indicates that those who prefer social media ads possess greater brand awareness,
though demands empirical confirmation. Similarly, in case of product perception, the
mean score of those who prefer social media ads (14.3) is found to be higher than those
who prefer traditional media ads (12.69). A similar trend is identified with regard to brand
loyalty, customer-business interaction and purchase intention.
Table 1. Group statistics

Factors Statistics Prefer social media Prefer traditional ads
ads because it's more because its less
interactive interactive
Brand Awareness Mean 19.37 16.96
Std. deviation 3.584 4.648
Std. Error Mean 0.233 0.556
Product Perception Mean 14.3 12.69
Brand Loyalty Mean 14.2 11.14
Customer-Business Mean 17.22 14.49
Interaction Std. deviation 3.701 3.69
Purchase Intention Mean 17.41 15.21
Source: Authors’ calculation
The results of independent sample t-test are exhibited in Table 2, which empirically
tests the following hypotheses:
H01: There is no significant difference in the brand awareness of those who prefer
Since the p-value is less than 0.05 (p = 0.000), we reject the null hypothesis and
conclude that there is a significant difference in the brand awareness of those who prefer
social media marketing to traditional marketing. Elements such as market knowledge,
comparison of similar products, marketing communications, shared content in the social
media are used to measure the brand awareness.
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H02: There is no significant difference in the product perception of those who prefer
The null hypothesis is rejected as the p-value is less than 0.05 (p = 0.000) and thus
conclude that there is a significant difference in the product perception of those who
prefer social media marketing to traditional marketing. It empirically proves that the
spread of information (negative or positive) can have a lasting effect on the product
perception of those who prefer social media ads as they possess a higher product
perception score.
Table 2. Independent Samples Test

Hypothesis t Sig. Test
(2- Results
tailed)
H01: There is no significant difference in the brand awareness of 4.601 0.000 Rejected
those who prefer social media marketing to traditional
marketing.
H02: There is no significant difference in the product perception 3.739 0.000 Rejected
of those who prefer social media marketing to traditional
marketing.
H03: There is no significant difference in the brand loyalty of 5.405 0.000 Rejected
those who prefer social media marketing to traditional
marketing.
H04: There is no significant difference in the customer-business 5.442 0.000 Rejected
interaction of those who prefer social media marketing to
traditional marketing.
H05: There is no significant difference in the purchase intention 4.322 0.000 Rejected
of those who prefer social media marketing to traditional
marketing.
H03: There is no significant difference in the brand loyalty of those who prefer social
Since the p-value is less than 0.05 (p = 0.000), the null hypothesis is rejected and it is
conclude that there is a significant difference in the brand loyalty of those who prefer
social media marketing to traditional marketing. The customers’ commitment towards the
brand and recommending it to others through social media is increased. Many a times, the
delighted customers are found to be rewarded by these businesses.
H04: There is no significant difference in the customer-business interaction of those
who prefer social media marketing to traditional marketing.
The null hypothesis is rejected as the p value is less than 0.05 (p = 0.000) and thus
concludes that there is a significant difference in the customer-business interaction of
those who prefer social media marketing to traditional marketing. It can be inferred that
customers prefer to have a two-way communication with the business as in the case of
social media marketing as it offers a platform to share the customer needs.
H05: There is no significant difference in the purchase intention of those who prefer
Since the p-value is less than 0.05 (p = 0.000), we reject the null hypothesis and
conclude that there is a significant difference in the purchase intention of those who prefer
social media marketing to traditional marketing. Referring to the higher mean score of
those who prefer social media ads with regard to purchase intention as established in table
1, this implies that the customer reviews and rankings on social media sites are
significantly influencing their purchase decision.
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Table 3 shows that about 51.1% of the total variation in purchase intention which is the
dependent variable is explained by the independent variables vis. customer-business
interaction, product perception, brand loyalty and brand awareness.
Table 3. Model Summary

Model R R Square Adjusted R Std. Error of
Square the Estimate
1 .718 .515 .511 .53428

Table 4 exhibits the multiple linear regression model fit. A statistically significant (p-
value < 0.05) F-value suggests that the estimated model is fit.
Table 4. ANOVA
Model Sum of Df Mean F Sig.
Squares Square
1 Regression 124.786 4 31.197 109.286 .000
Residual 117.323 411 .285
Total 242.109 415
Table 5 presents the estimates of multiple linear regression model. The purchase
intention of respondents is regressed with their awareness about the brand, perception on
the product, brand loyalty and interactions with the business. Table 5 shows that all the
independent variables are statistically significant, indicating that they impact the purchase
intention of customers. The beta coefficients indicate the relative strength of predictors.
From the results, it can be identified that customer-business interaction is the most
influencing factor in determining purchase intention. All the coefficients are significant at
1% level.
From the regression estimates, we derive the following equation:
Purchase Intention = 0.564 + 0.127 + 0.146 + 0.196 + 0.417 +e
Where,
The equation indicates that a unit increase in brand awareness through social media
marketing corresponds to 0.127 unit increase in the purchase intention. Similarly, a unit
increase in product perception through social media marketing will increase the purchase
intention by 0.146 units. A unit increase in brand loyalty is found to be contributing to
0.196 unit increase in the purchase intention. The study identifies the customer-business
interaction through social media marketing as the most influencing factor on the purchase
intention of Gen Z, contributing to an increase of 0.417unit in the latter.
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Table 5. Estimates of multiple linear regression model

Model Beta
Constant 0.564
Brand Awareness 0.127***
-2.812
Product perception 0.146***
-3.184
Brand loyalty 0.196***
-4.646
Customer-Business 0.417***
interaction -9.261
6. Conclusion
Companies constantly look for innovative methods in reaching customers and
moulding their behaviour, which includes the purchase intention and brand loyalty. It
personifies a brand by being more interactive through posting status, sharing quality
content and commenting on social media sites. To increase the rapport with the
customers, businesses now use social media sites such as Facebook, Instagram, and
Twitter, among others as a platform to post brand-based content. Considering these, the
present study aimed at examining the impact of social media marketing on Gen Z’s
purchase intention. The results indicate that Gen Z prefers social media ads to the
traditional ads contributing to an improved brand awareness, product perception, brand
loyalty, customer-business interaction and purchase intention. Further, it is revealed that
the brand awareness, perception, brand loyalty and customer-business interaction through
social media marketing influences the purchase intention of Gen Z. It enables the firms to
predict the likelihood of purchase intention through social media marketing.
The study highlights the importance of using the best practices of social media
marketing to attract and retain customers and to survive in the industry in a long run. The
expectations of each generation are different and unique. This makes firms to search for
the best method to market their products in the way the generation expects. This
eventually improves their awareness about a brand changing their perception about a
product making them more loyal to the brand by ensuring them to feel connected to the
business, which ultimately increases the purchase intention. Being cost-effective, social
media marketing also enable companies to enjoy the benefit of improved search engine
rankings.
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Authors
Navya Ninan is an alumna of CHRIST (Deemed to be

University), Bengaluru. She now works as an Assistant Professor at
Marian International Institute of Management, Kerala. She has an
industry experience of 2.5 years with The Royal Bank of Scotland.
Her research interests include Human Resource Management,
Training & Development, and Career Development.
Joel Chacko Roy is a research scholar at Mahatma Gandhi

University, Kerala. He has qualified for Junior Research Fellowship
(JRF) and is currently pursuing his Ph.D. He has an excellent track
record in high impact publications at a very young age and his
research interests include Cross-Cultural Management, Human
Resource Management and Organizational Behaviour.
Dr Namitha K Cheriyan is an Assistant Professor of Finance at

the Department of Commerce, CHRIST (Deemed to be University),
Bangalore, India. She has a Doctorate in Finance from the
Pondicherry University, India. Earlier, she obtained her Master’s of
Business Administration in Finance and Master’s of Commerce in
Business Finance from the same university. Her Doctoral thesis
focused on intraday liquidity dynamism of the India stock market.
Her research interests include market microstructure, information
asymmetry, cross-cultural management, and the interfaces of supply
chain management and finance.
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Influence of Social Media Marketing on the Purchase Intention Of

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Inﬂuence of Social Media Marketing on the Purchase Intention of Gen Z

Article · January 2020

Navya Ninan Joel Chacko Roy

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Influence of Social Media Marketing on the Purchase Intention of

Keywords: Social media marketing, Purchase intention, Product perception, Brand

generations (X, Y and Z) can be influenced by various online promotional activities

4. Data and Methodology

5. Empirical Results and Discussions

To understand the influence of social media marketing on Gen Z, their preferences

Table 1. Group statistics

Table 2. Independent Samples Test

Table 3. Model Summary

1 .718 .515 .511 .53428

Source: Authors’ calculation

Table 5. Estimates of multiple linear regression model

Navya Ninan is an alumna of CHRIST (Deemed to be

Joel Chacko Roy is a research scholar at Mahatma Gandhi

Dr Namitha K Cheriyan is an Assistant Professor of Finance at

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