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Global Consumer Insights Pulse Survey: India perspective

June 2023 Global Consumer Insights Pulse Survey

The Global Consumer Insights Pulse Survey: India perspective highlights why companies need to connect with consumers very early in the purchasing process and address their point of decision.

• Around 5 in 10 India consumers almost always or frequently use their smartphone in-store for price comparison or to view live product reviews via social media before they make a purchase.
• For 5 in 10 India consumers, e-commerce websites and search engines are the top sources of pre-purchase information, while 3 in 10 check in with their family, friends and colleagues before deciding on a purchase.
• For nearly 4 out of 10 India consumers, traditional TV and sponsored social media advertisements influence a purchase decision.

These are among the key findings from the June 2023 Global Consumer Insights Pulse Survey: India perspective which amplifies the voice of the consumer, calling out factors that influence the point of decision in the consumer’s pre-purchase journey.

While the February 2023 Global Consumer Insights Pulse Survey 1   showed the way for brands to reduce friction at the point of sale (PoS), this report focuses on ways of reaching the consumer prior to a purchase being made, at the point of decision making. It provides insights into consumer behaviour patterns and, based on the findings, outlines how to address the consumer’s requirements and expectations at crucial points of decision.

The findings indicate that:

• e-commerce websites and search engine optimisation are key to targeting and influencing pre-purchase behaviour
• smartphones catalyse smart shopping by consumers
• traditional TV ads and sponsored social media ads play a pivotal role in shaping consumer actions.

As consumers increasingly turn to the internet to research products before buying them, businesses now need to manage the pre-purchase consumer experience. By investing in search engine optimisation techniques, retailers can ensure their products are visible and drive organic traffic. Market leaders also need to prioritise online presence to adapt to changing consumer expectations. They should leverage emerging technologies such as the metaverse and generative artificial intelligence (AI) in customer relationship management (CRM) and meet consumer expectations on environmental, social and corporate governance (ESG) issues and sustainability. Millennials and Gen Z, who typically espouse social consciousness and environmental justice, were the most open to spending more for the sake of sustainability.

Key findings on consumer preferences

• In the last 12 months, 49% of consumers in India and 41% of consumers globally preferred to shop for items such as clothes, books and electronics from a physical store.
• About 39% of Indians used their smartphones, as opposed to 33% globally, while 33% used their PC to shop in India and 23% used it globally.

Base: All respondents (8,975)

Base: India respondents (501) .

• 14% of consumers in India used voice assistants daily to place orders, 13% used them weekly, and 17% used them monthly.
• About 9% of India consumers used virtual reality daily to shop as against 4% globally, 13% used it weekly as against 7% globally, and 12% used it monthly as against 8% globally.
• Wearable devices are also being used to shop, with 8% of India users as against 4% globally admitting to having used them daily in the last 12 months. Further, 12% as against 7% globally and 15% as against 9% globally said they used them weekly and monthly respectively.

Base: India respondents (501)

• About 31% of India consumers – 19% globally – want the latest cutting-edge technology as soon as it is available.
• Indian consumers want to outdo their peers, with 32% wanting to try out or own the latest technology before most people. Globally, the number stands at 29%.
• About 30% of global consumers are conservative about investing in the latest technology and only buy or try it out when it becomes more widely used. In contrast, 25% of Indians want to play it safe and prefer to interact with the latest technology at later stages.
• Only 9% of consumers globally have accessed virtual online healthcare in the last six months compared to 15% in India, while 8% globally have joined a virtual world (to experience a retail environment, a concert, etc.) as opposed to 14% of Indian consumers.

As consumer spending declines globally due to inflation, businesses are grappling with softening demand. Learning how to navigate the pre-purchase stage can have a direct impact on the scale and cost of customer acquisition.

Decision point: Where do consumers begin their pre-purchase search?

It is common for today’s tech-savvy consumers to consult multiple sources for information on a desired product, recheck it on trusted forums, and form their opinion simultaneously as they go about loading their shopping cart. An interesting aspect of this journey is that evaluation happens as a continued process, starting at the first point of search and finishing at checkout.

E-commerce websites and search engines are top sources of information

Search engines and retailer websites are the top sources of pre-purchase information globally, with 54% of consumers relying on search engines to derive product information and 55%, on retailer websites. In India, however, a large e-commerce company is the go-to source for product information, with a whopping 60% of Indian consumers – as opposed to 35% globally – relying on its website. Search engines are among the top primary sources of information for Indians, with 50% looking up a product on a search engine before buying. But retailer websites figure low on the list, with only 21% of Indians frequenting them before making a purchase decision and another 28% using them to read product reviews.

Often, the buyer is not making the decision alone. At least 30% of buyers in India, and the same percentage globally, seek the opinion of friends, family and colleagues before making a purchase. Businesses can capitalise on this word-of-mouth influence by motivating customers to share positive reviews and testimonials. Social media platforms also shape consumer decisions, with 29% of consumers in India and 31% globally using social media to research a product before purchase.

​​​​​Q. In general, where do you typically research the items/products that you intend to buy?

Smartphones empower consumers to take smart decisions.

Around 66% of consumers in India – much higher than the global figure of 56% – almost always or frequently use their smartphone to research a product online for competitive prices, special offers and availability. While 65% of India consumers use their device almost always or frequently to read product reviews before making a purchase, 54% do so globally. India buyers are concerned about the returns policy, with 57% of them using their smartphones to educate themselves on it, while globally only 33% look up the returns policy. About 50% of India consumers – 40% globally – use retailer apps on their phone to research or compare products.

India consumers are far ahead of their global peers in taking tech-enabled decisions for better bargains. A staggering 52% of India consumers, compared with 38% globally, use search engine technology to scan and find a product they are interested in. While 51% of consumers in India use social media to check out visuals or live reviews before making a purchase, the global percentage is only 37%. India consumers are more willing to engage with chatbots, with 33% using them to research products as opposed to just 16% globally.

Businesses are likely to get better conversion rates by deploying AI-powered chatbots to assist consumers on their product research journey. In India’s mobile-first market, smartphone-enabled pre-purchase decision making is likely to grow more as internet access and smartphone ownership increases. By 2027, smartphone ownership in India is forecast to grow to 888 million. 3

​​​​​Q. How often do you typically use your mobile device or smartphone to do any of the following before making a purchase decision?

Traditional tv ads and sponsored ads on social media influence the pre-purchase stage the most in india.

While global consumers said direct promotional advertisements were the most influential in making a purchase decision, India consumers still lean towards traditional TV ads. About 40% said TV ads influenced their purchase decision compared with 35% globally. India’s TV advertising market has recovered rapidly from the COVID-19 pandemic downturn, with revenue expanding 11.9% in 2022 to reach USD 4.7 billion. 4   TV ad spend is projected to reach USD 6.5 billion in 2027. By this time, India will be the fourth-largest TV advertising market globally, after the US, Japan and China. The market’s expansion continues to be based on economic development and an increasing proportion of households having television sets.

Apart from TV ads, sponsored ads on social media are an important factor influencing buying decisions both at a global level (34%) and in India (38%). Traditional TV ads and sponsored social media ads remain in strong competition with product placement in movies, TV programmes and other media for influencing purchase. Personalised ads via email ranked low, with only 15% of India consumers saying they had any effect on their purchase decision. A significant proportion of buyers in India – 31% – said they were influenced by ads featuring famous celebrities or influencers. The content creator economy is thriving in India. For instance, the top 306 creator accounts had more than 10 million followers across just three platforms, as of September 2022. 5

Metaverse and generative AI are set to redefine the buying experiences

With the metaverse and generative AI, the boundaries of physical and digital shopping are set to get blurred. According to the survey, about 44% of consumers globally and 53% in India are interested in interacting with generative AI to search for product information before they make purchase decisions.

The metaverse promises a frictionless shopping experience, but a world where an avatar does one’s shopping virtually will take time to unfold. Still, awareness about the metaverse is growing. Globally, 22% of consumers have heard about the metaverse but have not used it in the last six months, while 15% in India know of it but have had no interaction with it in the last six months. But India consumers are participating in metaverse-related interactions in various ways. The survey found that in the last six months:

• 16% have used a virtual reality headset to play games, watch movies or perform work-related activities.
• 16% have interacted with customer service agents virtually.
• 15% have interacted with brands they knew or those providing offers.
• 15% have accessed virtual online healthcare.
• 14% have purchased digital products or non-fungible tokens (NFTs) such as an avatar or digital artwork.
• 16% have purchased products as a result of testing them or browsing stores via metaverse platforms.
• 14% have joined a virtual world – for instance, to experience a retail environment or a concert.
• 17% have purchased physical luxury goods by viewing them digitally first.

Besides, tech enthusiasts have an interest in using chatbots. For retailers, dynamic virtual assistants can enhance customer engagement and boost brand loyalty. Vast amounts of data can be analysed for personalised marketing.

Decision point: Where do consumers buy from?

Food and beverage and clothing top direct to customer (d2c) product categories.

Nearly 63% of global consumers – a majority of them millennials – have shifted from traditional marketplaces and middlemen to D2C platforms, such as a brand’s website. In India, 65% of consumers have purchased products directly from a brand’s website, with products related to food and beverage (38%), and clothing and accessories (37%) being the top picks. Electronics (36%), beauty and personal care (35%), and home furnishing (28%) are also popular categories that draw Indian buyers to a brand website.

Direct purchasers are significantly more likely to be millennials and are likely to increase their future spend in several product categories in the next six months, the findings revealed. Globally, clothing and accessories (44%), and electronics (40%) were the top product categories in which people purchased directly from a brand’s website. Those who made such direct purchases were more likely to be millennials and tech enthusiasts.

Product purchase directly from brand's website

Yes - i have purchased products directly, i have not purchased directly but i have considered/would be open to purchasing directly, no - i have not purchased products directly and i have no interest/need to.

Base: Those who have purchased or are open to purchasing products directly from a brand's website

More choice and better availability drive direct purchase

About 32% of India respondents in the survey had not made a purchase from a brand website but were open to doing so. For India consumers, the top reasons for purchasing directly or being interested in doing so is greater choice (56%) and better availability of stock (46%). Among other reasons for direct purchase are product authenticity (39%), better service or delivery times (35%), and competitive prices (32%). Brand loyalty was also a factor, with 33% of Indian buyers making a direct purchase from a brand as they always use that brand in that category. Globally, product authenticity (50%) and better choice (42%) are driving traffic to brand websites.

Subscriptions, once considered a growth driver, now a point of rethink

Clothing and fashion and groceries are the most popular categories for current or planned subscription in India and at a global level. Roughly 12% of subscribers to the top four categories – clothing and fashion, grocery delivery, health products and supplements, and cosmetics – have cancelled subscriptions in the past. In India, 17% of subscribers to these categories have cancelled their subscriptions. Among the top reasons cited for cancellation by India customers were the subscription being too expensive (46%), lack of customisation (42%) and unexpected increase in fees (41%).

However, consumers intend to try subscription services in the next six months. Millennials and Gen Z are significantly more likely to be planning to sign up, with clothing and fashion (39%), groceries (35%), and health and well-being products (37%) emerging as the top categories for subscriptions in India.

Interestingly, 40% of male respondents from India said they intended to sign up for beauty and cosmetics subscriptions in the near future, a sizable jump from the 19% that currently subscribe to such services. About 31% of women respondents from India said they subscribed to beauty and cosmetic products, while 35% plan to do so in the next six months. Maintaining a consistent lifestyle pattern or routine, such as healthy eating and regular grooming, is the primary motivator for subscribing for 58% of consumers, while personalisation (49%), cost-effectiveness (49%) and convenience (49%) are among the top reasons for choosing to subscribe.

Decision point: Are consumers willing to pay for sustainability?

Consumers ready to pay a premium for conscious choices.

In our February 2023 Global Consumer Insights Pulse Survey, 6   more than 70% of respondents said that they were willing to pay more for sustainably produced goods ‘to some or to a great extent’. The June survey asked them just how much of a premium they would be willing to pay to follow sustainable practices such as locally produced or sourced food, custom-made or bespoke items, and products manufactured with a lower carbon footprint. The survey found that Millennials and Gen Z, who typically espouse social consciousness and environmental justice, were the most open to spending more for the sake of sustainability.

Note: ‘Produced with a lower supply chain/carbon footprint’ and ‘Biodegradable and can be disposed of at home’ are new options for Pulse 6.

Roughly 19% of Indian consumers are open to paying up to 20% more to companies with a reputation for ethical practices. For products produced or sourced locally, 24% of India consumers are willing to shell out between 11–20% more than the average price. Moreover, 13% of India consumers are willing to pay 30% higher than the average price for biodegradable products as well as for those made from recycled, sustainable or eco-friendly materials.

Navigating the post-purchase dilemma of reducing returns

Globally, 45% of consumers said they would return fewer items if they had accurate sizing information, and 44% said returns would reduce if product descriptions were more detailed and accurate. India users would return fewer items purchased online if they had visibility of previous customer reviews (47%) and more accurate product descriptions (42%). Other factors that could bring down returns for India consumers include more interactive images of products they were buying (40%), appropriate packaging to avoid damage (38%), knowing that the returned goods would not be sold and be sent to a landfill instead (27%). Only 25% said that a retailer charging them for returns would bring the number down.

Decision point: Where will consumers spend tomorrow?

The previous survey had found that 63% of India consumers were reining in expenditure on non-essential goods and services, while 74% were worried about their finances. A few months on, India consumers seem willing to take on discretionary expenses. Roughly 72% of Indian respondents intend to travel to new destinations in the next six months, with millennials constituting 78% of potential travellers. Indians who travel abroad plan to spend their money on immersion in local culture-related activities such as food markets and dining at top restaurants.

Meanwhile, about 65% of consumers in India, compared with 50% globally, said they planned to increase their online shopping in the next six months with the majority expecting no change to their shopping channel behaviour. In our previous survey, 61% of respondents in India had said they would increase online buying. The current survey found that in India and at a global level, 42% of consumers intended to increase buying from retailers that provide an efficient delivery or collection service. Roughly 29% of consumers in India said they would increase in-store shopping in the coming months.

Shopping online

Buying from retailers that provide an efficient delivery or collection service

Using click and collect services

Shopping in physical stores

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Invest in gen ai-powered chatbots and the metaverse for first-mover advantage.

The willingness of India ‘tech embracers’ – who like to buy cutting-edge technology as soon as it is available or to own and try it before most people – to use chatbots and engage with the metaverse can unlock new opportunities for businesses. PwC India’s 26th Annual Global CEO Survey 2023 of top executives in India – which included respondents from the retail and consumer segment – also revealed that businesses are harnessing the potential of the metaverse. Almost 70% of respondents said that they planned to integrate the metaverse into their organisational activities, while 63% of companies that are actively engaged with it emphasised that they would fully embed the metaverse in their organisational activities within a year. 7

Retail stores can harness the metaverse to close the ‘immersive experience’ gap. 8   At present, popular online shopping platforms are unable to provide such an experience, and this results in customers opting for offline product try-outs followed by an online purchase (showrooming), or drop-offs. With the metaverse, customers will be able to try out products at their homes.

An important aspect of the metaverse is the use of personalised digital avatars. For instance, some luxury brands have started selling virtual handbags and accessories for digital avatars in the metaverse. This concept of virtual bags and other fashion accessories will help in brand positioning because as the metaverse expands and people become more brand conscious with respect to their avatars, it’s likely that the prices of these designer goods will increase. As a result, more luxury brands will start selling virtual clothing and accessories. 9   Another way for retailers to use the metaverse is through targeted and segmented marketing. Retailers launching new product lines in the metaverse can gamify their offerings and products. 10

Provide enhanced phygital offerings alongside human support

While technological enhancements are key to driving greater adoption of self-checkouts and providing a frictionless retail experience, consumers still seek staff support in-store. About 44% of India consumers said that support staff being readily available to answer checkout queries would encourage them to use self-checkouts more often. While 45% of consumers in India said faster and more responsive touch screen technology would enable them to do self-checkouts regularly, 50% said a variety of payment options would be the motivating factor for them. Businesses can look into offering multiple payment options to accommodate different consumer needs, adopt a user-friendly interface for self-checkouts, and have trained staff to assist consumers in case they run into difficulties.

Synchronise D2C and value-optimise subscription

For businesses trying to enhance D2C, it is imperative to provide the same experience of customer relationship management (CRM), messaging and product merchandising across the brand’s website, app, social handles, third-party marketplaces and physical stores. Moreover, businesses may need to pivot the core of their subscription plan to drive more value.

Optimising subscriptions can provide retailers with predictable revenue streams and scalability, and foster customer loyalty. Offering tiered and customisable plans can meet customer expectations, while providing exceptional customer support can elevate consumer experience.

Place sustainability at the core of communications

COVID-19 brought sustainability into sharp focus and marked a shift to conscious consumerism. Businesses are increasingly adopting sustainable practices such as use of recycled materials and sustainable packaging, and making efforts to reduce their carbon footprint. Retail companies that are committed to their ESG agenda position themselves as agents of change to attract a responsible consumer base. 11

To effectively implement ESG-related strategies, organisations need to set up internal processes to ensure that they can conduct business sustainably. 12   While it’s vital for businesses to be sustainable, they must also communicate these efforts to consumers. Putting sustainability at the heart of the communication strategy can help businesses align with customer expectations and preferences while building credibility and trust.

Act today to secure a future share of wallet

By influencing consumers at critical decision-making points, businesses can gain a competitive edge. Consumer willingness to increase online shopping underscores the need for businesses to enhance their online presence, and to offer value-added services, such as virtual assistants and personalised recommendations. Retailers offering reliable and quick shipping methods, such as same-day delivery, will stay ahead in the market.

It is also imperative to streamline the returns process and keep it simple to allow customers to shop confidently. Demonstrating commitment to sustainability by reducing packaging waste and using recyclable materials will help meet consumer expectations. Investing in emerging technologies such as the metaverse and generative AI can capture consumer attention with immersive experiences and ultimately help businesses win their loyalty.

About the survey

The Global Consumer Insights Survey is a biannual study that seeks to keep a closer watch on changing consumer trends. For the June 2023 Pulse Survey, we polled 8,975 consumers across 25 countries and territories. A total of 501 respondents were from India.

The consumers were at least 18 years old and were required to have shopped online at least once in the previous year. Of the respondents, 57% identified as male and 43% as female. A majority of the respondents were millennials (56%), followed by Gen Z (29%), Generation X (12%) and baby boomers (3%).

• Consumers seek frictionless experiences in a world of disruptions
• February 2023 Global Consumer Insights Pulse Survey
• Global Entertainment & Media Outlook 2023-2027
• Number of creator accounts with more than 10 million followers in India in September 2022, by platform
• Urban India seeks less friction in shopping experiences
• Embracing the metaverse
• The future of the retail industry in the metaverse
• ESG in the retail and consumer sector

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How the Pandemic Did—and Didn’t—Change Indian Consumers

July 13, 2021  By  Aparna Bharadwaj ,  Kanika Sanghi ,  Nimisha Jain , and  Ankur Jain

Few markets have been whipsawed by the COVID-19 crisis as severely as India. After many months of lockdowns, life in India began returning to normal during the period from October 2020 to March 2021, as cases declined. Then, tragically, the contagion raged back to terrifying levels.

Throughout the pandemic, we’ve been monitoring its impact on consumer sentiment and behavior, conducting a series of six surveys of consumers who occupy different income levels and live in a range of urban settings. Now that India has experienced two strong waves of the COVID-19 crisis, the rich data from these pulse checks gives us an opportunity to step back and look at how the pandemic has transformed people’s behavior. Which changes in the goods and services that Indian households buy—and the ways they transact those purchases—have proved to be fleeting or driven by temporary necessity? And which behavioral changes appear to be enduring to such an extent that companies should consider them the new normal?

We interviewed approximately 4,000 Indian consumers in late May, during the second wave of India’s COVID-19 outbreak, asking them about their consumption patterns in around 50 product categories and about their daily lifestyles. We compared the responses from this survey with those we obtained from our previous barometer in August 2020, when cases were declining and lockdowns were being lifted. We also compared our findings to data that we collected in March 2020, during the first phase of the pandemic.

On the basis of these responses, we grouped behavioral changes into four categories, which we call “accelerating behaviors,” “sustained momentum behaviors,” “sensitive behaviors,” and “transient behavioral changes.” Each of these categories has its own distinctive characteristics and trajectories:

• Accelerating behaviors increased rapidly after the initial outbreak and continue to increase as time passes. For example, the number of consumers who reported buying through chat groups and purchasing nutritional supplements and “healthier” packaged foods for the first time surged by around 30% each during the first stage of the pandemic—and it was still rising as of late May. Even among consumers who already used chat groups and bought healthier foods prior to the COVID-19 outbreak, 60% to 70% said that they were now doing so more frequently.
• Sustained momentum behaviors include use of a wide range of digital services, which have remained at elevated levels in India throughout the pandemic. Use of online retail, digital wallets, free online video apps such as YouTube and Hotstar, paid over-the-top media services, and online educational classes leaped early in the pandemic—and have now settled at those elevated levels. The fact that usage didn't decline from October 2020 through May 2021, when infection rates were relatively under control, suggests that these behavioral changes are more permanent than others and that the market for these services will likely remain robust in the post-pandemic period.
• Sensitive behaviors tend to rise and fall in response to the intensity of the pandemic and associated lockdown measures. Shopping at modern trade stores such as supermarket and hypermarket chains and relying on online doctor consultations fall into this category. Prior to the pandemic, India saw a growing trend of consumers visiting modern retail outlets. When COVID-19 hit, more people returned to buying from small general retailers in their neighborhoods—such as small shops, kiosks, and street vendors—in order to avoid crowded, indoor spaces. When the COVID-19 crisis eased last fall, many consumers returned to modern outlets; but then they avoided them once more when the pandemic roared back in the spring of 2021. This pattern indicates that growth in modern trade retailing will probably resume as the pandemic abates. Likewise, our findings suggest that the strong growth in tele-consultations, as opposed to visiting physicians in person, is unlikely to persist once the pandemic recedes.
• Transient behaviorial changes gained significant traction early in the pandemic but didn’t stick. For example, in early 2020, when Indian consumers first faced lockdowns, demand for online fitness and hobby classes and do-it-yourself grooming surged. But interest dropped off sharply as COVID-19 cases declined and lockdowns eased—and it has not rebounded during the pandemic’s more recent big wave.
• Edition 1: COVID-19 and the Emerging-Market Consumer—Five Trends to Watch
• Edition 2: COVID-19 and the Emerging-Market Consumer—The Power of Resilience
• Edition 3: Who Is the Emerging-Market Consumer in the Postpandemic Era?
• The Surprising Resilience of Emerging-Market Consumers

For companies, a key takeaway from this research is that the COVID-19 crisis has significantly altered the behavior of Indian consumers in several important aspects, such as their heightened focus on health and their embrace of digital tools and channels for making purchases. Companies should start integrating an awareness of such behavioral shifts into their planning and go-to-market strategies going forward.

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Impact of Culture on Indian Consumers: An Exploratory Study

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• First Online: 02 December 2015
• Cite this conference paper

• Taposh Ghoshal 4  

Part of the book series: Developments in Marketing Science: Proceedings of the Academy of Marketing Science ((DMSPAMS))

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Culture has always been a predominant determinant of consumer behaviour. Culture denotes the ways of living of people, beliefs, values, customs, institutions, languages, technology, art and is considered as the sum total of knowledge, belief, art, morals, custom, and other capabilities and habits acquired by man as a member of the society. India, being the land of diverse cultures nurtured over ages has noteworthy repercussion on the psyche of consumers and their buying behaviour. Today, India’s rising economic power is triggered by nearly 120 million consumers who form the strong “Middle Class or Consumer Class” of the country is supported by higher disposable incomes, low cost competitive workforce, investment friendly policies and progressive reform process. India with its rich cultural grounding and a fast growing economy, the study assumes great significance.

The present study examines the level of impact of culture on the Indian consumers. The study follows the classification of cultural indicators, socio-cultural changes and its effect on buying habits of Indian consumers and grouping of cultural constituents into broad categories, suggests cultural indicators for strategy-making. It is seen that socio-cultural changes and its effect on buying habits of Indian consumers have led to a noticeable change in the lifestyle of people and consequently the buying behaviour of people in India, especially in the urban areas. The study demystifies myths prevailing about Indian populace and its predisposition towards markets and products. It also explores the connect between the socio-cultural power distance, collectivism, religion and lifestyle as important aspects of culture with the changing economic environment and its influence on consumer behaviour of people in India.

The study observes that Tradition/ Social Norms/ Value Systems, Lifestyle, Group Influences, Economic Stability and Education have emerged as predominant variables in the cultural change in India having a direct bearing on the consumer behaviour in India. The study reveals India as a fast growing market with immense potential, but, unlike other markets, it is diverse in its socio-cultural aspects and has a profound influence on the way an average Indian leads his life. Business organizations, willing to operate successfully must take this uniqueness as an important factor for charting out their reaching out to its customers in India.

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Ghoshal, T. (2016). Impact of Culture on Indian Consumers: An Exploratory Study. In: Campbell, C., Ma, J. (eds) Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-24184-5_220

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The Evolution of Indian Consumer Behavior in 2023: Insights and Trends

In recent years, India has witnessed a rapid transformation in its consumer landscape, fueled by technological advancements, changing demographics, and evolving social and economic factors. As we delve into 2023, it becomes crucial to explore the emerging trends and insights that shape Indian consumer behavior. From increased digital adoption to shifting preferences in products and services, this article highlights key observations about Indian consumers and their behavior in the year 2023.

• Digital Transformation and E-commerce Dominance: The year 2023 marks a significant acceleration in India’s digital transformation journey. With the widespread availability of affordable smartphones and the proliferation of high-speed internet connectivity, a growing number of Indians are embracing digital channels for various aspects of their lives. E-commerce continues to soar, with consumers increasingly relying on online platforms for shopping, from groceries and fashion to electronics and furniture. This shift has not only enhanced convenience but has also opened up new avenues for businesses to connect with their target audience.
• Personalization and Customer Experience: Indian consumers are placing greater emphasis on personalized experiences and customer-centric services. Businesses are realizing the importance of tailoring their offerings to meet individual needs and preferences. From customized product recommendations based on consumer behavior to personalized marketing campaigns, companies are leveraging advanced technologies like artificial intelligence and data analytics to create immersive and relevant customer experiences. This trend has resulted in increased brand loyalty and repeat purchases.
• Sustainability and Ethical Consumption: In 2023, Indian consumers are exhibiting a heightened awareness of sustainability and ethical consumption. There is a growing concern for the environment, leading to a shift in buying behavior. Consumers are actively seeking out eco-friendly and socially responsible products and brands. This preference for sustainable choices extends beyond traditional sectors like fashion and home goods, with increased demand for renewable energy, organic food products, and ethical business practices.
• Rise of Local and Regional Brands: While global brands continue to hold sway in various sectors, there has been a noticeable rise in the popularity of local and regional brands. Indian consumers are increasingly recognizing the value of supporting homegrown businesses, leading to the growth of indigenous brands across different industries. These local brands often tap into the cultural nuances and preferences of specific regions, providing consumers with a sense of familiarity and a connection to their roots.
• Health and Wellness Prioritization: The COVID-19 pandemic has heightened the focus on health and wellness among Indian consumers. In 2023, there is a greater emphasis on personal well-being, resulting in increased demand for fitness products, organic food, nutritional supplements, and mental health services. Consumers are proactively seeking ways to improve their physical and mental health, leading to the emergence of new market opportunities in the health and wellness sector.
• Influencer Culture and Social Media Impact: Influencer marketing and social media continue to play a significant role in shaping consumer behavior in India. Social media platforms like Instagram, YouTube, and TikTok have become instrumental in introducing new products, trends, and lifestyle choices to consumers. Indian consumers, particularly the younger demographic, often rely on recommendations from influencers and social media personalities before making purchasing decisions. Brands are capitalizing on this trend by collaborating with influencers to drive product awareness and connect with their target audience effectively.

Conclusion: The year 2023 presents a dynamic and ever-evolving landscape for Indian consumer behavior. Digital adoption, personalization, sustainability, local brands, health consciousness, and social media influence are key factors shaping the way Indian consumers make decisions. Businesses that adapt to these changing trends and align their strategies with consumer preferences will be well-positioned to thrive in the Indian market. As we move forward, it is crucial for companies to stay agile, innovative, and customer-centric to successfully navigate the diverse and evolving Indian consumer landscape.

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• Published: 08 May 2024

Exploring the dynamics of consumer engagement in social media influencer marketing: from the self-determination theory perspective

• Chenyu Gu   ORCID: orcid.org/0000-0001-6059-0573 1 &
• Qiuting Duan 2  

Humanities and Social Sciences Communications volume  11 , Article number:  587 ( 2024 ) Cite this article

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Influencer advertising has emerged as an integral part of social media marketing. Within this realm, consumer engagement is a critical indicator for gauging the impact of influencer advertisements, as it encompasses the proactive involvement of consumers in spreading advertisements and creating value. Therefore, investigating the mechanisms behind consumer engagement holds significant relevance for formulating effective influencer advertising strategies. The current study, grounded in self-determination theory and employing a stimulus-organism-response framework, constructs a general model to assess the impact of influencer factors, advertisement information, and social factors on consumer engagement. Analyzing data from 522 samples using structural equation modeling, the findings reveal: (1) Social media influencers are effective at generating initial online traffic but have limited influence on deeper levels of consumer engagement, cautioning advertisers against overestimating their impact; (2) The essence of higher-level engagement lies in the ad information factor, affirming that in the new media era, content remains ‘king’; (3) Interpersonal factors should also be given importance, as influencing the surrounding social groups of consumers is one of the effective ways to enhance the impact of advertising. Theoretically, current research broadens the scope of both social media and advertising effectiveness studies, forming a bridge between influencer marketing and consumer engagement. Practically, the findings offer macro-level strategic insights for influencer marketing.

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Introduction.

Recent studies have highlighted an escalating aversion among audiences towards traditional online ads, leading to a diminishing effectiveness of traditional online advertising methods (Lou et al., 2019 ). In an effort to overcome these challenges, an increasing number of brands are turning to influencers as their spokespersons for advertising. Utilizing influencers not only capitalizes on their significant influence over their fan base but also allows for the dissemination of advertising messages in a more native and organic manner. Consequently, influencer-endorsed advertising has become a pivotal component and a growing trend in social media advertising (Gräve & Bartsch, 2022 ). Although the topic of influencer-endorsed advertising has garnered increasing attention from scholars, the field is still in its infancy, offering ample opportunities for in-depth research and exploration (Barta et al., 2023 ).

Presently, social media influencers—individuals with substantial follower bases—have emerged as the new vanguard in advertising (Hudders & Lou, 2023 ). Their tweets and videos possess the remarkable potential to sway the purchasing decisions of thousands if not millions. This influence largely hinges on consumer engagement behaviors, implying that the impact of advertising can proliferate throughout a consumer’s entire social network (Abbasi et al., 2023 ). Consequently, exploring ways to enhance consumer engagement is of paramount theoretical and practical significance for advertising effectiveness research (Xiao et al., 2023 ). This necessitates researchers to delve deeper into the exploration of the stimulating factors and psychological mechanisms influencing consumer engagement behaviors (Vander Schee et al., 2020 ), which is the gap this study seeks to address.

The Stimulus-Organism-Response (S-O-R) framework has been extensively applied in the study of consumer engagement behaviors (Tak & Gupta, 2021 ) and has been shown to integrate effectively with self-determination theory (Yang et al., 2019 ). Therefore, employing the S-O-R framework to investigate consumer engagement behaviors in the context of influencer advertising is considered a rational approach. The current study embarks on an in-depth analysis of the transformation process from three distinct dimensions. In the Stimulus (S) phase, we focus on how influencer factors, advertising message factors, and social influence factors act as external stimuli. This phase scrutinizes the external environment’s role in triggering consumer reactions. During the Organism (O) phase, the research explores the intrinsic psychological motivations affecting individual behavior as posited in self-determination theory. This includes the willingness for self-disclosure, the desire for innovation, and trust in advertising messages. The investigation in this phase aims to understand how these internal motivations shape consumer attitudes and perceptions in the context of influencer marketing. Finally, in the Response (R) phase, the study examines how these psychological factors influence consumer engagement behavior. This part of the research seeks to understand the transition from internal psychological states to actual consumer behavior, particularly how these states drive the consumers’ deep integration and interaction with the influencer content.

Despite the inherent limitations of cross-sectional analysis in capturing the full temporal dynamics of consumer engagement, this study seeks to unveil the dynamic interplay between consumers’ psychological needs—autonomy, competence, and relatedness—and their varying engagement levels in social media influencer marketing, grounded in self-determination theory. Through this lens, by analyzing factors related to influencers, content, and social context, we aim to infer potential dynamic shifts in engagement behaviors as psychological needs evolve. This approach allows us to offer a snapshot of the complex, multi-dimensional nature of consumer engagement dynamics, providing valuable insights for both theoretical exploration and practical application in the constantly evolving domain of social media marketing. Moreover, the current study underscores the significance of adapting to the dynamic digital environment and highlights the evolving nature of consumer engagement in the realm of digital marketing.

Literature review

Stimulus-organism-response (s-o-r) model.

The Stimulus-Response (S-R) model, originating from behaviorist psychology and introduced by psychologist Watson ( 1917 ), posits that individual behaviors are directly induced by external environmental stimuli. However, this model overlooks internal personal factors, complicating the explanation of psychological states. Mehrabian and Russell ( 1974 ) expanded this by incorporating the individual’s cognitive component (organism) into the model, creating the Stimulus-Organism-Response (S-O-R) framework. This model has become a crucial theoretical framework in consumer psychology as it interprets internal psychological cognitions as mediators between stimuli and responses. Integrating with psychological theories, the S-O-R model effectively analyzes and explains the significant impact of internal psychological factors on behavior (Koay et al., 2020 ; Zhang et al., 2021 ), and is extensively applied in investigating user behavior on social media platforms (Hewei & Youngsook, 2022 ). This study combines the S-O-R framework with self-determination theory to examine consumer engagement behaviors in the context of social media influencer advertising, a logic also supported by some studies (Yang et al., 2021 ).

Self-determination theory

Self-determination theory, proposed by Richard and Edward (2000), is a theoretical framework exploring human behavioral motivation and personality. The theory emphasizes motivational processes, positing that individual behaviors are developed based on factors satisfying their psychological needs. It suggests that individual behavioral tendencies are influenced by the needs for competence, relatedness, and autonomy. Furthermore, self-determination theory, along with organic integration theory, indicates that individual behavioral tendencies are also affected by internal psychological motivations and external situational factors.

Self-determination theory has been validated by scholars in the study of online user behaviors. For example, Sweet applied the theory to the investigation of community building in online networks, analyzing knowledge-sharing behaviors among online community members (Sweet et al., 2020 ). Further literature review reveals the applicability of self-determination theory to consumer engagement behaviors, particularly in the context of influencer marketing advertisements. Firstly, self-determination theory is widely applied in studying the psychological motivations behind online behaviors, suggesting that the internal and external motivations outlined within the theory might also apply to exploring consumer behaviors in influencer marketing scenarios (Itani et al., 2022 ). Secondly, although research on consumer engagement in the social media influencer advertising context is still in its early stages, some studies have utilized SDT to explore behaviors such as information sharing and electronic word-of-mouth dissemination (Astuti & Hariyawan, 2021 ). These behaviors, which are part of the content contribution and creation dimensions of consumer engagement, may share similarities in the underlying psychological motivational mechanisms. Thus, this study will build upon these foundations to construct the Organism (O) component of the S-O-R model, integrating insights from SDT to further understand consumer engagement in influencer marketing.

Consumer engagement

Although scholars generally agree at a macro level to define consumer engagement as the creation of additional value by consumers or customers beyond purchasing products, the specific categorization of consumer engagement varies in different studies. For instance, Simon and Tossan interpret consumer engagement as a psychological willingness to interact with influencers (Simon & Tossan, 2018 ). However, such a broad definition lacks precision in describing various levels of engagement. Other scholars directly use tangible metrics on social media platforms, such as likes, saves, comments, and shares, to represent consumer engagement (Lee et al., 2018 ). While this quantitative approach is not flawed and can be highly effective in practical applications, it overlooks the content aspect of engagement, contradicting the “content is king” principle of advertising and marketing. We advocate for combining consumer engagement with the content aspect, as content engagement not only generates more traces of consumer online behavior (Oestreicher-Singer & Zalmanson, 2013 ) but, more importantly, content contribution and creation are central to social media advertising and marketing, going beyond mere content consumption (Qiu & Kumar, 2017 ). Meanwhile, we also need to emphasize that engagement is not a fixed state but a fluctuating process influenced by ongoing interactions between consumers and influencers, mediated by the evolving nature of social media platforms and the shifting sands of consumer preferences (Pradhan et al., 2023 ). Consumer engagement in digital environments undergoes continuous change, reflecting a journey rather than a destination (Viswanathan et al., 2017 ).

The current study adopts a widely accepted definition of consumer engagement from existing research, offering operational feasibility and aligning well with the research objectives of this paper. Consumer engagement behaviors in the context of this study encompass three dimensions: content consumption, content contribution, and content creation (Muntinga et al., 2011 ). These dimensions reflect a spectrum of digital engagement behaviors ranging from low to high levels (Schivinski et al., 2016 ). Specifically, content consumption on social media platforms represents a lower level of engagement, where consumers merely click and read the information but do not actively contribute or create user-generated content. Some studies consider this level of engagement as less significant for in-depth exploration because content consumption, compared to other forms, generates fewer visible traces of consumer behavior (Brodie et al., 2013 ). Even in a study by Qiu and Kumar, it was noted that the conversion rate of content consumption is low, contributing minimally to the success of social media marketing (Qiu & Kumar, 2017 ).

On the other hand, content contribution, especially content creation, is central to social media marketing. When consumers comment on influencer content or share information with their network nodes, it is termed content contribution, representing a medium level of online consumer engagement (Piehler et al., 2019 ). Furthermore, when consumers actively upload and post brand-related content on social media, this higher level of behavior is referred to as content creation. Content creation represents the highest level of consumer engagement (Cheung et al., 2021 ). Although medium and high levels of consumer engagement are more valuable for social media advertising and marketing, this exploratory study still retains the content consumption dimension of consumer engagement behaviors.

Theoretical framework

Internal organism factors: self-disclosure willingness, innovativeness, and information trust.

In existing research based on self-determination theory that focuses on online behavior, competence, relatedness, and autonomy are commonly considered as internal factors influencing users’ online behaviors. However, this approach sometimes strays from the context of online consumption. Therefore, in studies related to online consumption, scholars often use self-disclosure willingness as an overt representation of autonomy, innovativeness as a representation of competence, and trust as a representation of relatedness (Mahmood et al., 2019 ).

The use of these overt variables can be logically explained as follows: According to self-determination theory, individuals with a higher level of self-determination are more likely to adopt compensatory mechanisms to facilitate behavior compared to those with lower self-determination (Wehmeyer, 1999 ). Self-disclosure, a voluntary act of sharing personal information with others, is considered a key behavior in the development of interpersonal relationships. In social environments, self-disclosure can effectively alleviate stress and build social connections, while also seeking societal validation of personal ideas (Altman & Taylor, 1973 ). Social networks, as para-social entities, possess the interactive attributes of real societies and are likely to exhibit similar mechanisms. In consumer contexts, personal disclosures can include voluntary sharing of product interests, consumption experiences, and future purchase intentions (Robertshaw & Marr, 2006 ). While material incentives can prompt personal information disclosure, many consumers disclose personal information online voluntarily, which can be traced back to an intrinsic need for autonomy (Stutzman et al., 2011 ). Thus, in this study, we consider the self-disclosure willingness as a representation of high autonomy.

Innovativeness refers to an individual’s internal level of seeking novelty and represents their personality and tendency for novelty (Okazaki, 2009 ). Often used in consumer research, innovative consumers are inclined to try new technologies and possess an intrinsic motivation to use new products. Previous studies have shown that consumers with high innovativeness are more likely to search for information on new products and share their experiences and expertise with others, reflecting a recognition of their own competence (Kaushik & Rahman, 2014 ). Therefore, in consumer contexts, innovativeness is often regarded as the competence dimension within the intrinsic factors of self-determination (Wang et al., 2016 ), with external motivations like information novelty enhancing this intrinsic motivation (Lee et al., 2015 ).

Trust refers to an individual’s willingness to rely on the opinions of others they believe in. From a social psychological perspective, trust indicates the willingness to assume the risk of being harmed by another party (McAllister, 1995 ). Widely applied in social media contexts for relational marketing, information trust has been proven to positively influence the exchange and dissemination of consumer information, representing a close and advanced relationship between consumers and businesses, brands, or advertising endorsers (Steinhoff et al., 2019 ). Consumers who trust brands or social media influencers are more willing to share information without fear of exploitation (Pop et al., 2022 ), making trust a commonly used representation of the relatedness dimension in self-determination within consumer contexts.

Construction of the path from organism to response: self-determination internal factors and consumer engagement behavior

Following the logic outlined above, the current study represents the internal factors of self-determination theory through three variables: self-disclosure willingness, innovativeness, and information trust. Next, the study explores the association between these self-determination internal factors and consumer engagement behavior, thereby constructing the link between Organism (O) and Response (R).

Self-disclosure willingness and consumer engagement behavior

In the realm of social sciences, the concept of self-disclosure willingness has been thoroughly examined from diverse disciplinary perspectives, encompassing communication studies, sociology, and psychology. Viewing from the lens of social interaction dynamics, self-disclosure is acknowledged as a fundamental precondition for the initiation and development of online social relationships and interactive engagements (Luo & Hancock, 2020 ). It constitutes an indispensable component within the spectrum of interactive behaviors and the evolution of interpersonal connections. Voluntary self-disclosure is characterized by individuals divulging information about themselves, which typically remains unknown to others and is inaccessible through alternative sources. This concept aligns with the tenets of uncertainty reduction theory, which argues that during interpersonal engagements, individuals seek information about their counterparts as a means to mitigate uncertainties inherent in social interactions (Lee et al., 2008 ). Self-disclosure allows others to gain more personal information, thereby helping to reduce the uncertainty in interpersonal relationships. Such disclosure is voluntary rather than coerced, and this sharing of information can facilitate the development of relationships between individuals (Towner et al., 2022 ). Furthermore, individuals who actively engage in social media interactions (such as liking, sharing, and commenting on others’ content) often exhibit higher levels of self-disclosure (Chu et al., 2023 ); additional research indicates a positive correlation between self-disclosure and online engagement behaviors (Lee et al., 2023 ). Taking the context of the current study, the autonomous self-disclosure willingness can incline social media users to read advertising content more attentively and share information with others, and even create evaluative content. Therefore, this paper proposes the following research hypothesis:

H1a: The self-disclosure willingness is positively correlated with content consumption in consumer engagement behavior.

H1b: The self-disclosure willingness is positively correlated with content contribution in consumer engagement behavior.

H1c: The self-disclosure willingness is positively correlated with content creation in consumer engagement behavior.

Innovativeness and consumer engagement behavior

Innovativeness represents an individual’s propensity to favor new technologies and the motivation to use new products, associated with the cognitive perception of one’s self-competence. Individuals with a need for self-competence recognition often exhibit higher innovativeness (Kelley & Alden, 2016 ). Existing research indicates that users with higher levels of innovativeness are more inclined to accept new product information and share their experiences and discoveries with others in their social networks (Yusuf & Busalim, 2018 ). Similarly, in the context of this study, individuals, as followers of influencers, signify an endorsement of the influencer. Driven by innovativeness, they may be more eager to actively receive information from influencers. If they find the information valuable, they are likely to share it and even engage in active content re-creation to meet their expectations of self-image. Therefore, this paper proposes the following research hypotheses:

H2a: The innovativeness of social media users is positively correlated with content consumption in consumer engagement behavior.

H2b: The innovativeness of social media users is positively correlated with content contribution in consumer engagement behavior.

H2c: The innovativeness of social media users is positively correlated with content creation in consumer engagement behavior.

Information trust and consumer engagement

Trust refers to an individual’s willingness to rely on the statements and opinions of a target object (Moorman et al., 1993 ). Extensive research indicates that trust positively impacts information dissemination and content sharing in interpersonal communication environments (Majerczak & Strzelecki, 2022 ); when trust is established, individuals are more willing to share their resources and less suspicious of being exploited. Trust has also been shown to influence consumers’ participation in community building and content sharing on social media, demonstrating cross-cultural universality (Anaya-Sánchez et al., 2020 ).

Trust in influencer advertising information is also a key predictor of consumers’ information exchange online. With many social media users now operating under real-name policies, there is an increased inclination to trust information shared on social media over that posted by corporate accounts or anonymously. Additionally, as users’ social networks partially overlap with their real-life interpersonal networks, extensive research shows that more consumers increasingly rely on information posted and shared on social networks when making purchase decisions (Wang et al., 2016 ). This aligns with the effectiveness goals of influencer marketing advertisements and the characteristics of consumer engagement. Trust in the content posted by influencers is considered a manifestation of a strong relationship between fans and influencers, central to relationship marketing (Kim & Kim, 2021 ). Based on trust in the influencer, which then extends to trust in their content, people are more inclined to browse information posted by influencers, share this information with others, and even create their own content without fear of exploitation or negative consequences. Therefore, this paper proposes the following research hypotheses:

H3a: Information trust is positively correlated with content consumption in consumer engagement behavior.

H3b: Information trust is positively correlated with content contribution in consumer engagement behavior.

H3c: Information trust is positively correlated with content creation in consumer engagement behavior.

Construction of the path from stimulus to organism: influencer factors, advertising information factors, social factors, and self-determination internal factors

Having established the logical connection from Organism (O) to Response (R), we further construct the influence path from Stimulus (S) to Organism (O). Revisiting the definition of influencer advertising in social media, companies, and brands leverage influencers on social media platforms to disseminate advertising content, utilizing the influencers’ relationships and influence over consumers for marketing purposes. In addition to consumer’s internal factors, elements such as companies, brands, influencers, and the advertisements themselves also impact consumer behavior. Although factors like the brand image perception of companies may influence consumer behavior, considering that in influencer marketing, companies and brands do not directly interact with consumers, this study prioritizes the dimensions of influencers and advertisements. Furthermore, the impact of social factors on individual cognition and behavior is significant, thus, the current study integrates influencers, advertisements, and social dimensions as the Stimulus (S) component.

Influencer factors: parasocial identification

Self-determination theory posits that relationships are one of the key motivators influencing individual behavior. In the context of social media research, users anticipate establishing a parasocial relationship with influencers, resembling real-life relationships. Hence, we consider the parasocial identification arising from users’ parasocial interactions with influencers as the relational motivator. Parasocial interaction refers to the one-sided personal relationship that individuals develop with media characters (Donald & Richard, 1956 ). During this process, individuals believe that the media character is directly communicating with them, creating a sense of positive intimacy (Giles, 2002 ). Over time, through repeated unilateral interactions with media characters, individuals develop a parasocial relationship, leading to parasocial identification. However, parasocial identification should not be directly equated with the concept of social identification in social identity theory. Social identification occurs when individuals psychologically de-individualize themselves, perceiving the characteristics of their social group as their own, upon identifying themselves as part of that group. In contrast, parasocial identification refers to the one-sided interactional identification with media characters (such as celebrities or influencers) over time (Chen et al., 2021 ). Particularly when individuals’ needs for interpersonal interaction are not met in their daily lives, they turn to parasocial interactions to fulfill these needs (Shan et al., 2020 ). Especially on social media, which is characterized by its high visibility and interactivity, users can easily develop a strong parasocial identification with the influencers they follow (Wei et al., 2022 ).

Parasocial identification and self-disclosure willingness

Theories like uncertainty reduction, personal construct, and social exchange are often applied to explain the emergence of parasocial identification. Social media, with its convenient and interactive modes of information dissemination, enables consumers to easily follow influencers on media platforms. They can perceive the personality of influencers through their online content, viewing them as familiar individuals or even friends. Once parasocial identification develops, this pleasurable experience can significantly influence consumers’ cognitions and thus their behavioral responses. Research has explored the impact of parasocial identification on consumer behavior. For instance, Bond et al. found that on Twitter, the intensity of users’ parasocial identification with influencers positively correlates with their continuous monitoring of these influencers’ activities (Bond, 2016 ). Analogous to real life, where we tend to pay more attention to our friends in our social networks, a similar phenomenon occurs in the relationship between consumers and brands. This type of parasocial identification not only makes consumers willing to follow brand pages but also more inclined to voluntarily provide personal information (Chen et al., 2021 ). Based on this logic, we speculate that a similar relationship may exist between social media influencers and their fans. Fans develop parasocial identification with influencers through social media interactions, making them more willing to disclose their information, opinions, and views in the comment sections of the influencers they follow, engaging in more frequent social interactions (Chung & Cho, 2017 ), even if the content at times may be brand or company-embedded marketing advertisements. In other words, in the presence of influencers with whom they have established parasocial relationships, they are more inclined to disclose personal information, thereby promoting consumer engagement behavior. Therefore, we propose the following research hypotheses:

H4: Parasocial identification is positively correlated with consumer self-disclosure willingness.

H4a: Self-disclosure willingness mediates the impact of parasocial identification on content consumption in consumer engagement behavior.

H4b: Self-disclosure willingness mediates the impact of parasocial identification on content contribution in consumer engagement behavior.

H4c: Self-disclosure willingness mediates the impact of parasocial identification on content creation in consumer engagement behavior.

Parasocial identification and information trust

Information Trust refers to consumers’ willingness to trust the information contained in advertisements and to place themselves at risk. These risks include purchasing products inconsistent with the advertised information and the negative social consequences of erroneously spreading this information to others, leading to unpleasant consumption experiences (Minton, 2015 ). In advertising marketing, gaining consumers’ trust in advertising information is crucial. In the context of influencer marketing on social media, companies, and brands leverage the social connection between influencers and their fans. According to cognitive empathy theory, consumers project their trust in influencers onto the products endorsed, explaining the phenomenon of ‘loving the house for the crow on its roof.’ Research indicates that parasocial identification with influencers is a necessary condition for trust development. Consumers engage in parasocial interactions with influencers on social media, leading to parasocial identification (Jin et al., 2021 ). Consumers tend to reduce their cognitive load and simplify their decision-making processes, thus naturally adopting a positive attitude and trust towards advertising information disseminated by influencers with whom they have established parasocial identification. This forms the core logic behind the success of influencer marketing advertisements (Breves et al., 2021 ); furthermore, as mentioned earlier, because consumers trust these advertisements, they are also willing to share this information with friends and family and even engage in content re-creation. Therefore, we propose the following research hypotheses:

H5: Parasocial identification is positively correlated with information trust.

H5a: Information trust mediates the impact of parasocial identification on content consumption in consumer engagement behavior.

H5b: Information trust mediates the impact of parasocial identification on content contribution in consumer engagement behavior.

H5c: Information trust mediates the impact of parasocial identification on content creation in consumer engagement behavior.

Influencer factors: source credibility

Source credibility refers to the degree of trust consumers place in the influencer as a source, based on the influencer’s reliability and expertise. Numerous studies have validated the effectiveness of the endorsement effect in advertising (Schouten et al., 2021 ). The Source Credibility Model, proposed by the renowned American communication scholar Hovland and the “Yale School,” posits that in the process of information dissemination, the credibility of the source can influence the audience’s decision to accept the information. The credibility of the information is determined by two aspects of the source: reliability and expertise. Reliability refers to the audience’s trust in the “communicator’s objective and honest approach to providing information,” while expertise refers to the audience’s trust in the “communicator being perceived as an effective source of information” (Hovland et al., 1953 ). Hovland’s definitions reveal that the interpretation of source credibility is not about the inherent traits of the source itself but rather the audience’s perception of the source (Jang et al., 2021 ). This differs from trust and serves as a precursor to the development of trust. Specifically, reliability and expertise are based on the audience’s perception; thus, this aligns closely with the audience’s perception of influencers (Kim & Kim, 2021 ). This credibility is a cognitive statement about the source of information.

Source credibility and self-disclosure willingness

Some studies have confirmed the positive impact of an influencer’s self-disclosure on their credibility as a source (Leite & Baptista, 2022 ). However, few have explored the impact of an influencer’s credibility, as a source, on consumers’ self-disclosure willingness. Undoubtedly, an impact exists; self-disclosure is considered a method to attempt to increase intimacy with others (Leite et al., 2022 ). According to social exchange theory, people promote relationships through the exchange of information in interpersonal communication to gain benefits (Cropanzano & Mitchell, 2005 ). Credibility, deriving from an influencer’s expertise and reliability, means that a highly credible influencer may provide more valuable information to consumers. Therefore, based on the social exchange theory’s logic of reciprocal benefits, consumers might be more willing to disclose their information to trustworthy influencers, potentially even expanding social interactions through further consumer engagement behaviors. Thus, we propose the following research hypotheses:

H6: Source credibility is positively correlated with self-disclosure willingness.

H6a: Self-disclosure willingness mediates the impact of Source credibility on content consumption in consumer engagement behavior.

H6b: Self-disclosure willingness mediates the impact of Source credibility on content contribution in consumer engagement behavior.

H6c: Self-disclosure willingness mediates the impact of Source credibility on content creation in consumer engagement behavior.

Source credibility and information trust

Based on the Source Credibility Model, the credibility of an endorser as an information source can significantly influence consumers’ acceptance of the information (Shan et al., 2020 ). Existing research has demonstrated the positive impact of source credibility on consumers. Djafarova, in a study based on Instagram, noted through in-depth interviews with 18 users that an influencer’s credibility significantly affects respondents’ trust in the information they post. This credibility is composed of expertise and relevance to consumers, and influencers on social media are considered more trustworthy than traditional celebrities (Djafarova & Rushworth, 2017 ). Subsequently, Bao and colleagues validated in the Chinese consumer context, based on the ELM model and commitment-trust theory, that the credibility of brand pages on Weibo effectively fosters consumer trust in the brand, encouraging participation in marketing activities (Bao & Wang, 2021 ). Moreover, Hsieh et al. found that in e-commerce contexts, the credibility of the source is a significant factor influencing consumers’ trust in advertising information (Hsieh & Li, 2020 ). In summary, existing research has proven that the credibility of the source can promote consumer trust. Influencer credibility is a significant antecedent affecting consumers’ trust in the advertised content they publish. In brand communities, trust can foster consumer engagement behaviors (Habibi et al., 2014 ). Specifically, consumers are more likely to trust the advertising content published by influencers with higher credibility (more expertise and reliability), and as previously mentioned, consumer engagement behavior is more likely to occur. Based on this, the study proposes the following research hypotheses:

H7: Source credibility is positively correlated with information trust.

H7a: Information trust mediates the impact of source credibility on content consumption in consumer engagement behavior.

H7b: Information trust mediates the impact of source credibility on content contribution in consumer engagement behavior.

H7c: Information trust mediates the impact of source credibility on content creation in consumer engagement behavior.

Advertising information factors: informative value

Advertising value refers to “the relative utility value of advertising information to consumers and is a subjective evaluation by consumers.” In his research, Ducoffe pointed out that in the context of online advertising, the informative value of advertising is a significant component of advertising value (Ducoffe, 1995 ). Subsequent studies have proven that consumers’ perception of advertising value can effectively promote their behavioral response to advertisements (Van-Tien Dao et al., 2014 ). Informative value of advertising refers to “the information about products needed by consumers provided by the advertisement and its ability to enhance consumer purchase satisfaction.” From the perspective of information dissemination, valuable advertising information should help consumers make better purchasing decisions and reduce the effort spent searching for product information. The informational aspect of advertising has been proven to effectively influence consumers’ cognition and, in turn, their behavior (Haida & Rahim, 2015 ).

Informative value and innovativeness

As previously discussed, consumers’ innovativeness refers to their psychological trait of favoring new things. Studies have shown that consumers with high innovativeness prefer novel and valuable product information, as it satisfies their need for newness and information about new products, making it an important factor in social media advertising engagement (Shi, 2018 ). This paper also hypothesizes that advertisements with high informative value can activate consumers’ innovativeness, as the novelty of information is one of the measures of informative value (León et al., 2009 ). Acquiring valuable information can make individuals feel good about themselves and fulfill their perception of a “novel image.” According to social exchange theory, consumers can gain social capital in interpersonal interactions (such as social recognition) by sharing information about these new products they perceive as valuable. Therefore, the current study proposes the following research hypothesis:

H8: Informative value is positively correlated with innovativeness.

H8a: Innovativeness mediates the impact of informative value on content consumption in consumer engagement behavior.

H8b: Innovativeness mediates the impact of informative value on content contribution in consumer engagement behavior.

H8c: Innovativeness mediates the impact of informative value on content creation in consumer engagement behavior.

Informative value and information trust

Trust is a multi-layered concept explored across various disciplines, including communication, marketing, sociology, and psychology. For the purposes of this paper, a deep analysis of different levels of trust is not undertaken. Here, trust specifically refers to the trust in influencer advertising information within the context of social media marketing, denoting consumers’ belief in and reliance on the advertising information endorsed by influencers. Racherla et al. investigated the factors influencing consumers’ trust in online reviews, suggesting that information quality and value contribute to increasing trust (Racherla et al., 2012 ). Similarly, Luo and Yuan, in a study based on social media marketing, also confirmed that the value of advertising information posted on brand pages can foster consumer trust in the content (Lou & Yuan, 2019 ). Therefore, by analogy, this paper posits that the informative value of influencer-endorsed advertising can also promote consumer trust in that advertising information. The relationship between trust in advertising information and consumer engagement behavior has been discussed earlier. Thus, the current study proposes the following research hypotheses:

H9: Informative value is positively correlated with information trust.

H9a: Information trust mediates the impact of informative value on content consumption in consumer engagement behavior.

H9b: Information trust mediates the impact of informative value on content contribution in consumer engagement behavior.

H9c: Information trust mediates the impact of informative value on content creation in consumer engagement behavior.

Advertising information factors: ad targeting accuracy

Ad targeting accuracy refers to the degree of match between the substantive information contained in advertising content and consumer needs. Advertisements containing precise information often yield good advertising outcomes. In marketing practice, advertisers frequently use information technology to analyze the characteristics of different consumer groups in the target market and then target their advertisements accordingly to achieve precise dissemination and, consequently, effective advertising results. The utility of ad targeting accuracy has been confirmed by many studies. For instance, in the research by Qiu and Chen, using a modified UTAUT model, it was demonstrated that the accuracy of advertising effectively promotes consumer acceptance of advertisements in WeChat Moments (Qiu & Chen, 2018 ). Although some studies on targeted advertising also indicate that overly precise ads may raise concerns about personal privacy (Zhang et al., 2019 ), overall, the accuracy of advertising information is effective in enhancing advertising outcomes and is a key element in the success of targeted advertising.

Ad targeting accuracy and information trust

In influencer marketing advertisements, due to the special relationship recognition between consumers and influencers, the privacy concerns associated with ad targeting accuracy are alleviated (Vrontis et al., 2021 ). Meanwhile, the informative value brought by targeting accuracy is highlighted. More precise advertising content implies higher informative value and also signifies that the advertising content is more worthy of consumer trust (Della Vigna, Gentzkow, 2010 ). As previously discussed, people are more inclined to read and engage with advertising content they trust and recognize. Therefore, the current study proposes the following research hypotheses:

H10: Ad targeting accuracy is positively correlated with information trust.

H10a: Information trust mediates the impact of ad targeting accuracy on content consumption in consumer engagement behavior.

H10b: Information trust mediates the impact of ad targeting accuracy on content contribution in consumer engagement behavior.

H10c: Information trust mediates the impact of ad targeting accuracy on content creation in consumer engagement behavior.

Social factors: subjective norm

The Theory of Planned Behavior, proposed by Ajzen ( 1991 ), suggests that individuals’ actions are preceded by conscious choices and are underlain by plans. TPB has been widely used by scholars in studying personal online behaviors, these studies collectively validate the applicability of TPB in the context of social media for researching online behaviors (Huang, 2023 ). Additionally, the self-determination theory, which underpins this chapter’s research, also supports the notion that individuals’ behavioral decisions are based on internal cognitions, aligning with TPB’s assertions. Therefore, this paper intends to select subjective norms from TPB as a factor of social influence. Subjective norm refers to an individual’s perception of the expectations of significant others in their social relationships regarding their behavior. Empirical research in the consumption field has demonstrated the significant impact of subjective norms on individual psychological cognition (Yang & Jolly, 2009 ). A meta-analysis by Hagger, Chatzisarantis ( 2009 ) even highlighted the statistically significant association between subjective norms and self-determination factors. Consequently, this study further explores its application in the context of influencer marketing advertisements on social media.

Subjective norm and self-disclosure willingness

In numerous studies on social media privacy, subjective norms significantly influence an individual’s self-disclosure willingness. Wirth et al. ( 2019 ) based on the privacy calculus theory, surveyed 1,466 participants and found that personal self-disclosure on social media is influenced by the behavioral expectations of other significant reference groups around them. Their research confirmed that subjective norms positively influence self-disclosure of information and highlighted that individuals’ cognitions and behaviors cannot ignore social and environmental factors. Heirman et al. ( 2013 ) in an experiment with Instagram users, also noted that subjective norms could promote positive consumer behavioral responses. Specifically, when important family members and friends highly regard social media influencers as trustworthy, we may also be more inclined to disclose our information to influencers and share this information with our surrounding family and friends without fear of disapproval. In our subjective norms, this is considered a positive and valuable interactive behavior, leading us to exhibit engagement behaviors. Based on this logic, we propose the following research hypotheses:

H11: Subjective norms are positively correlated with self-disclosure willingness.

H11a: Self-disclosure willingness mediates the impact of subjective norms on content consumption in consumer engagement behavior.

H11b: Self-disclosure willingness mediates the impact of subjective norms on content contribution in consumer engagement behavior.

H11c: Self-disclosure willingness mediates the impact of subjective norms on content creation in consumer engagement behavior.

Subjective norm and information trust

Numerous studies have indicated that subjective norms significantly influence trust (Roh et al., 2022 ). This can be explained by reference group theory, suggesting people tend to minimize the effort expended in decision-making processes, often looking to the behaviors or attitudes of others as a point of reference; for instance, subjective norms can foster acceptance of technology by enhancing trust (Gupta et al., 2021 ). Analogously, if a consumer’s social network generally holds positive attitudes toward influencer advertising, they are also more likely to trust the endorsed advertisement information, as it conserves the extensive effort required in gathering product information (Chetioui et al., 2020 ). Therefore, this paper proposes the following research hypotheses:

H12: Subjective norms are positively correlated with information trust.

H12a: Information trust mediates the impact of subjective norms on content consumption in consumer engagement behavior.

H12b: Information trust mediates the impact of subjective norms on content contribution in consumer engagement behavior.

H12c: Information trust mediates the impact of subjective norms on content creation in consumer engagement behavior.

Conceptual model

In summary, based on the Stimulus (S)-Organism (O)-Response (R) framework, this study constructs the external stimulus factors (S) from three dimensions: influencer factors (parasocial identification, source credibility), advertising information factors (informative value, Ad targeting accuracy), and social influence factors (subjective norms). This is grounded in social capital theory and the theory of planned behavior. drawing on self-determination theory, the current study constructs the individual psychological factors (O) using self-disclosure willingness, innovativeness, and information trust. Finally, the behavioral response (R) is constructed using consumer engagement, which includes content consumption, content contribution, and content creation, as illustrated in Fig. 1 .

Consumer engagement behavior impact model based on SOR framework.

Materials and methods

Participants and procedures.

The current study conducted a survey through the Wenjuanxing platform to collect data. Participants were recruited through social media platforms such as WeChat, Douyin, Weibo et al., as samples drawn from social media users better align with the research purpose of our research and ensure the validity of the sample. Before the survey commenced, all participants were explicitly informed about the purpose of this study, and it was made clear that volunteers could withdraw from the survey at any time. Initially, 600 questionnaires were collected, with 78 invalid responses excluded. The criteria for valid questionnaires were as follows: (1) Respondents must have answered “Yes” to the question, “Do you follow any influencers (internet celebrities) on social media platforms?” as samples not using social media or not following influencers do not meet the study’s objective, making this question a prerequisite for continuing the survey; (2) Respondents had to correctly answer two hidden screening questions within the questionnaire to ensure that they did not randomly select scores; (3) The total time taken to complete the questionnaire had to exceed one minute, ensuring that respondents had sufficient time to understand and thoughtfully answer each question; (4) Respondents were not allowed to choose the same score for eight consecutive questions. Ultimately, 522 valid questionnaires were obtained, with an effective rate of 87.00%, meeting the basic sample size requirements for research models (Gefen et al., 2011 ). Detailed demographic information of the study participants is presented in Table 1 .

Measurements

To ensure the validity and reliability of the data analysis results in this study, the measurement tools and scales used in this chapter were designed with reference to existing established research. The main variables in the survey questionnaire include parasocial identification, source credibility, informative value, ad targeting accuracy, subjective norms, self-disclosure willingness, innovativeness, information trust, content consumption, content contribution, and content creation. The measurement scale for parasocial identification was adapted from the research of Schramm and Hartmann, comprising 6 items (Schramm & Hartmann, 2008 ). The source credibility scale was combined from the studies of Cheung et al. and Luo & Yuan’s research in the context of social media influencer marketing, including 4 items (Cheung et al., 2009 ; Lou & Yuan, 2019 ). The scale for informative value was modified based on Voss et al.‘s research, consisting of 4 items (Voss et al., 2003 ). The ad targeting accuracy scale was derived from the research by Qiu Aimei et al., 2018 ) including 3 items. The subjective norm scale was adapted from Ajzen’s original scale, comprising 3 items (Ajzen, 2002 ). The self-disclosure willingness scale was developed based on Chu and Kim’s research, including 3 items (Chu & Kim, 2011 ). The innovativeness scale was formulated following the study by Sun et al., comprising 4 items (Sun et al., 2006 ). The information trust scale was created in reference to Chu and Choi’s research, including 3 items (Chu & Choi, 2011 ). The scales for the three components of social media consumer engagement—content consumption, content contribution, and content creation—were sourced from the research by Buzeta et al., encompassing 8 items in total (Buzeta et al., 2020 ).

All scales were appropriately revised for the context of social media influencer marketing. To avoid issues with scoring neutral attitudes, a uniform Likert seven-point scale was used for each measurement item (ranging from 1 to 7, representing a spectrum from ‘strongly disagree’ to ‘strongly agree’). After the overall design of the questionnaire was completed, a pre-test was conducted with 30 social media users to ensure that potential respondents could clearly understand the meaning of each question and that there were no obstacles to answering. This pre-test aimed to prevent any difficulties or misunderstandings in the questionnaire items. The final version of the questionnaire is presented in Table 2 .

Data analysis

Since the model framework of the current study is derived from theoretical deductions of existing research and, while logically constructed, does not originate from an existing research model, this study still falls under the category of exploratory research. According to the analysis suggestions of Hair and other scholars, in cases of exploratory research model frameworks, it is more appropriate to choose Smart PLS for Partial Least Squares Path Analysis (PLS) to conduct data analysis and testing of the research model (Hair et al., 2012 ).

Measurement of model

In this study, careful data collection and management resulted in no missing values in the dataset. This ensured the integrity and reliability of the subsequent data analysis. As shown in Table 3 , after deleting measurement items with factor loadings below 0.5, the final factor loadings of the measurement items in this study range from 0.730 to 0.964. This indicates that all measurement items meet the retention criteria. Additionally, the Cronbach’s α values of the latent variables range from 0.805 to 0.924, and all latent variables have Composite Reliability (CR) values greater than the acceptable value of 0.7, demonstrating that the scales of this study have passed the reliability test requirements (Hair et al., 2019 ). All latent variables in this study have Average Variance Extracted (AVE) values greater than the standard acceptance value of 0.5, indicating that the convergent validity of the variables also meets the standard (Fornell & Larcker, 1981 ). Furthermore, the results show that the Variance Inflation Factor (VIF) values for each factor are below 10, indicating that there are no multicollinearity issues with the scales in this study (Hair, 2009 ).

The current study then further verified the discriminant validity of the variables, with specific results shown in Table 4 . The square roots of the average variance extracted (AVE) values for all variables (bolded on the diagonal) are greater than the Pearson correlation coefficients between the variables, indicating that the discriminant validity of the scales in this study meets the required standards (Fornell & Larcker, 1981 ). Additionally, a single-factor test method was employed to examine common method bias in the data. The first unrotated factor accounted for 29.71% of the variance, which is less than the critical threshold of 40%. Therefore, the study passed the test and did not exhibit serious common method bias (Podsakoff et al., 2003 ).

To ensure the robustness and appropriateness of our structural equation model, we also conducted a thorough evaluation of the model fit. Initially, through PLS Algorithm calculations, the R 2 values of each variable were greater than the standard acceptance value of 0.1, indicating good predictive accuracy of the model. Subsequently, Blindfolding calculations were performed, and the results showed that the Stone-Geisser Q 2 values of each variable were greater than 0, demonstrating that the model of this study effectively predicts the relationships between variables (Dijkstra & Henseler, 2015 ). In addition, through CFA, we also obtained some indicator values, specifically, χ 2 /df = 2.528 < 0.3, RMSEA = 0.059 < 0.06, SRMR = 0.055 < 0.08. Given its sensitivity to sample size, we primarily focused on the CFI, TLI, and NFI values, CFI = 0.953 > 0.9, TLI = 0.942 > 0.9, and NFI = 0.923 > 0.9 indicating a good fit. Additionally, RMSEA values below 0.06 and SRMR values below 0.08 were considered indicative of a good model fit. These indices collectively suggested that our model demonstrates a satisfactory fit with the data, thereby reinforcing the validity of our findings.

Research hypothesis testing

The current study employed a Bootstrapping test with a sample size of 5000 on the collected raw data to explore the coefficients and significance of the paths in the research model. The final test data results of this study’s model are presented in Table 5 .

The current study employs S-O-R model as the framework, grounded in theories such as self-determination theory and theory of planned behavior, to construct an influence model of consumer engagement behavior in the context of social media influencer marketing. It examines how influencer factors, advertisement information factors, and social influence factors affect consumer engagement behavior by impacting consumers’ psychological cognitions. Using structural equation modeling to analyze collected data ( N  = 522), it was found that self-disclosure willingness, innovativeness, and information trust positively influence consumer engagement behavior, with innovativeness having the largest impact on higher levels of engagement. Influencer factors, advertisement information factors, and social factors serve as effective external stimuli, influencing psychological motivators and, consequently, consumer engagement behavior. The specific research results are illustrated in Fig. 2 .

Tested structural model of consumer engagement behavior.

The impact of psychological motivators on different levels of consumer engagement: self-disclosure willingness, innovativeness, and information trust

The research analysis indicates that self-disclosure willingness and information trust are key drivers for content consumption (H1a, H2a validated). This aligns with previous findings that individuals with a higher willingness to disclose themselves show greater levels of engagement behavior (Chu et al., 2023 ); likewise, individuals who trust advertisement information are more inclined to engage with advertisement content (Kim, Kim, 2021 ). Moreover, our study finds that information trust has a stronger impact on content consumption, underscoring the importance of trust in the dissemination of advertisement information. However, no significant association was found between individual innovativeness and content consumption (H3a not validated).

Regarding the dimension of content contribution in consumer engagement, self-disclosure willingness, information trust, and innovativeness all positively impact it (H1b, H2b, and H3b all validated). This is consistent with earlier research findings that individuals with higher self-disclosure willingness are more likely to like, comment on, or share content posted by influencers on social media platforms (Towner et al., 2022 ); the conclusions of this paper also support that innovativeness is an important psychological driver for active participation in social media interactions (Kamboj & Sharma, 2023 ). However, at the level of consumer engagement in content contribution, while information trust also exerts a positive effect, its impact is the weakest, although information trust has the strongest impact on content consumption.

In social media advertising, the ideal outcome is the highest level of consumer engagement, i.e., content creation, meaning consumers actively join in brand content creation, seeing themselves as co-creators with the brand (Nadeem et al., 2021 ). Our findings reveal that self-disclosure willingness, innovativeness, and information trust all positively influence content creation (H1c, H2c, and H3c all validated). The analysis found that similar to the impact on content contribution, innovativeness has the most significant effect on encouraging individual content creation, followed by self-disclosure willingness, with information trust having the least impact.

In summary, while some previous studies have shown that self-disclosure willingness, innovativeness, and information trust are important factors in promoting consumer engagement (Chu et al., 2023 ; Nadeem et al., 2021 ; Geng et al., 2021 ), this study goes further by integrating and comparing all three within the same research framework. It was found that to trigger higher levels of consumer engagement behavior, trust is not the most crucial psychological motivator; rather, the most effective method is to stimulate consumers’ innovativeness, thus complementing previous research. Subsequently, this study further explores the impact of different stimulus factors on various psychological motivators.

The influence of external stimulus factors on psychological motivators: influencer factors, advertisement information factors, and social factors

The current findings indicate that influencer factors, such as parasocial identification and source credibility, effectively enhance consumer engagement by influencing self-disclosure willingness and information trust. This aligns with prior research highlighting the significance of parasocial identification (Shan et al., 2020 ). Studies suggest parasocial identification positively impacts consumer engagement by boosting self-disclosure willingness and information trust (validated H4a, H4b, H4c, and H5a), but not content contribution or creation through information trust (H5b, H5c not validated). Source credibility’s influence on self-disclosure willingness was not significant (H6 not validated), thus negating the mediating effect of self-disclosure willingness (H6a, H6b, H6c not validated). Influencer credibility mainly affects engagement through information trust (H7a, H7b, H7c validated), supporting previous findings (Shan et al., 2020 ).

Advertisement factors (informative value and ad targeting accuracy) promote engagement through innovativeness and information trust. Informative value significantly impacts higher-level content contribution and creation through innovativeness (H8b, H8c validated), while ad targeting accuracy influences consumer engagement at all levels mainly through information trust (H10a, H10b, H10c validated).

Social factors (subjective norms) enhance self-disclosure willingness and information trust, consistent with previous research (Wirth et al., 2019 ; Gupta et al., 2021 ), and further promote consumer engagement across all levels (H11a, H11b, H11c, H12a, H12b, and H12c all validated).

In summary, influencer, advertisement, and social factors impact consumer engagement behavior by influencing psychological motivators, with influencer factors having the greatest effect on content consumption, advertisement content factors significantly raising higher-level consumer engagement through innovativeness, and social factors also influencing engagement through self-disclosure willingness and information trust.

Implication

From a theoretical perspective, current research presents a comprehensive model of consumer engagement within the context of influencer advertising on social media. This model not only expands the research horizon in the fields of social media influencer advertising and consumer engagement but also serves as a bridge between two crucial themes in new media advertising studies. Influencer advertising has become an integral part of social media advertising, and the construction of a macro model aids researchers in understanding consumer psychological processes and behavioral patterns. It also assists advertisers in formulating more effective strategies. Consumer engagement, focusing on the active role of consumers in disseminating information and the long-term impact on advertising effectiveness, aligns more closely with the advertising effectiveness measures in the new media context than traditional advertising metrics. However, the intersection of these two vital themes lacks comprehensive research and a universal model. This study constructs a model that elucidates the effects of various stimuli on consumer psychology and engagement behaviors, exploring the connections and mechanisms through different mediating pathways. By differentiating levels of engagement, the study offers more nuanced conclusions for diverse advertising objectives. Furthermore, this research validates the applicability of self-determination theory in the context of influencer advertising effectiveness. While this psychological theory has been utilized in communication behavior research, its effectiveness in the field of advertising requires further exploration. The current study introduces self-determination theory into the realm of influencer advertising and consumer engagement, thereby expanding its application in the field of advertising communication. It also responds to the call from the advertising and marketing academic community to incorporate more psychological theories to explain the ‘black box’ of consumer psychology. The inclusion of this theory re-emphasizes the people-centric approach of this research and highlights the primary role of individuals in advertising communication studies.

From a practical perspective, this study provides significant insights for adapting marketing strategies to the evolving media landscape and the empowered role of audiences. Firstly, in the face of changes in the communication environment and the empowerment of audience communication capabilities, traditional marketing approaches are becoming inadequate for new media advertising needs. Traditional advertising focuses on direct, point-to-point effects, whereas social media advertising aims for broader, point-to-mass communication, leveraging audience proactivity to facilitate the viral spread of content across online social networks. Secondly, for brands, the general influence model proposed in this study offers guidance for influencer advertising strategy. If the goal is to maximize reach and brand recognition with a substantial advertising budget, partnering with top influencers who have a large following can be an effective strategy. However, if the objective is to maximize cost-effectiveness with a limited budget by leveraging consumer initiative for secondary spread, the focus should be on designing advertising content that stimulates consumer creativity and willingness to innovate. Thirdly, influencers are advised to remain true to their followers. In influencer marketing, influencers attract advertisers through their influence over followers, converting this influence into commercial gain. This influence stems from the trust followers place in the influencer, thus influencers should maintain professional integrity and prioritize the quality of information they share, even when presented with advertising opportunities. Lastly, influencers should assert more control over their relationships with advertisers. In traditional advertising, companies and brands often exert significant control over the content. However, in the social media era, influencers should negotiate more creative freedom in their advertising partnerships, asserting a more equal relationship with advertisers. This approach ensures that content quality remains high, maintaining the trust influencers have built with their followers.

Limitations and future directions

while this study offers valuable insights into the dynamics of influencer marketing and consumer engagement on social media, several limitations should be acknowledged: Firstly, constrained by the research objectives and scope, this study’s proposed general impact model covers three dimensions: influencers, advertisement information, and social factors. However, these dimensions are not limited to the five variables discussed in this paper. Therefore, we call for future research to supplement and explore more crucial factors. Secondly, in the actual communication environment, there may be differences in the impact of communication effectiveness across various social media platforms. Thus, future research could also involve comparative studies and explorations between different social media platforms. Thirdly, the current study primarily examines the direct effects of various factors on consumer engagement. However, the potential interaction effects between these variables (e.g., how influencers’ credibility might interact with advertisement information quality) are not extensively explored. Future research could investigate these complex interrelationships for a more holistic understanding. Lastly, our study, being cross-sectional, offers preliminary insights into the complex and dynamic nature of engagement between social media influencers and consumers, yet it does not incorporate the temporal dimension. The diverse impacts of psychological needs on engagement behaviors hint at an underlying dynamism that merits further investigation. Future research should consider employing longitudinal designs to directly observe how these dynamics evolve over time.

The findings of the current study not only theoretically validate the applicability of self-determination theory in the field of social media influencer marketing advertising research but also broaden the scope of advertising effectiveness research from the perspective of consumer engagement. Moreover, the research framework offers strategic guidance and reference for influencer marketing strategies. The main conclusions of this study can be summarized as follows.

Innovativeness is the key factor in high-level consumer engagement behavior. Content contribution represents a higher level of consumer engagement compared to content consumption, as it not only requires consumers to dedicate attention to viewing advertising content but also to share this information across adjacent nodes within their social networks. This dissemination of information is a pivotal factor in the success of influencer marketing advertisements. Hence, companies and brands prioritize consumers’ content contribution over mere viewing of advertising content (Qiu & Kumar, 2017 ). Compared to content consumption and contribution, content creation is considered the highest level of consumer engagement, where consumers actively create and upload brand-related content, and it represents the most advanced outcome sought by enterprises and brands in advertising campaigns (Cheung et al., 2021 ). The current study posits that to pursue better outcomes in social media influencer advertising marketing, enhancing consumers’ willingness for self-disclosure, innovativeness, and trust in advertising information are effective strategies. However, the crux lies in leveraging the consumer’s subjective initiative, particularly in boosting their innovativeness. If the goal is simply to achieve content consumption rather than higher levels of consumer engagement, the focus should be on fostering trust in advertising information. There is no hierarchy in the efficacy of different strategies; they should align with varying marketing contexts and advertising objectives.

The greatest role of social media influencers lies in attracting online traffic. information trust is the core element driving content consumption, and influencer factors mainly affect consumer engagement behaviors through information trust. Therefore, this study suggests that the primary role of influencers in social media advertising is to attract online traffic, i.e., increase consumer behavior regarding ad content consumption (reducing avoidance of ad content), and help brands achieve the initial goal of making consumers “see and complete ads.” However, their impact on further high-level consumer engagement behaviors is limited. This mechanism serves as a reminder to advertisers not to overestimate the effects of influencers in marketing. Currently, top influencers command a significant portion of the ad budget, which could squeeze the budget for other aspects of advertising, potentially affecting the overall effectiveness of the campaign. Businesses and brands should consider deeper strategic implications when planning their advertising campaigns.

Valuing Advertising Information Factors, Content Remains King. Our study posits that in the social media influencer marketing context, the key to enhancing consumer contribution and creation of advertising content lies primarily in the advertising information factors. In other words, while content consumption is important, advertisers should objectively assess the role influencers play in advertising. In the era of social media, content remains ‘king’ in advertising. This view indirectly echoes the points made in the previous paragraph: influencers effectively perform initial ‘online traffic generation’ tasks in social media, but this role should not be overly romanticized or exaggerated. Whether it’s companies, brands, or influencers, providing consumers with advertisements rich in informational value is crucial to achieving better advertising outcomes and potentially converting consumers into stakeholders.

Subjective norm is an unignorable social influence factor. Social media is characterized by its network structure of information dissemination, where a node’s information is visible to adjacent nodes. For instance, if user A likes a piece of content C from influencer I, A’s follower B, who may not follow influencer I, can still see content C via user A’s page. The aim of marketing in the social media era is to influence a node and then spread the information to adjacent nodes, either secondarily or multiple times (Kumar & Panda, 2020 ). According to the Theory of Planned Behavior, an individual’s actions are influenced by significant others in their lives, such as family and friends. Previous studies have proven the effectiveness of the Theory of Planned Behavior in influencing attitudes toward social media advertising (Ranjbarian et al., 2012 ). Current research further confirms that subjective norms also influence consumer engagement behaviors in influencer marketing on social media. Therefore, in advertising practice, brands should not only focus on individual consumers but also invest efforts in groups that can influence consumer decisions. Changing consumer behavior in the era of social media marketing doesn’t solely rely on the company’s efforts.

As communication technology advances, media platforms will further empower individual communicative capabilities, moving beyond the era of the “magic bullet” theory. The distinction between being a recipient and a transmitter of information is increasingly blurred. In an era where everyone is both an audience and an influencer, research confined to the role of the ‘recipient’ falls short of addressing the dynamics of ‘transmission’. Future research in marketing and advertising should thus focus more on the power of individual transmission. Furthermore, as Marshall McLuhan famously said, “the medium is the extension of man.” The evolution of media technology remains human-centric. Accordingly, future marketing research, while paying heed to media transformations, should emphasize the centrality of the ‘human’ element.

Data availability

The datasets generated and/or analyzed during the current study are not publicly available due to privacy issues. Making the full data set publicly available could potentially breach the privacy that was promised to participants when they agreed to take part, and may breach the ethics approval for the study. The data are available from the corresponding author on reasonable request.

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Acknowledgements

The authors thank all the participants of this study. The participants were all informed about the purpose and content of the study and voluntarily agreed to participate. The participants were able to stop participating at any time without penalty. Funding for this study was provided by Minjiang University Research Start-up Funds (No. 324-32404314).

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Conceptualization: CG; methodology: CG and QD; software: CG and QD; validation: CG; formal analysis: CG and QD; investigation: CG and QD; resources: CG; data curation: CG and QD; writing—original draft preparation: CG; writing—review and editing: CG; visualization: CG; project administration: CG. All authors have read and agreed to the published version of the manuscript.

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Correspondence to Chenyu Gu .

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Gu, C., Duan, Q. Exploring the dynamics of consumer engagement in social media influencer marketing: from the self-determination theory perspective. Humanit Soc Sci Commun 11 , 587 (2024). https://doi.org/10.1057/s41599-024-03127-w

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The Survey of Consumer Attitudes and Behavior series (also known as the Surveys of Consumers) was undertaken to measure changes in consumer attitudes and expectations, to understand why such changes occur, and to evaluate how they relate to consumer decisions to save, borrow, or make discretionary purchases. The data regularly include the Index of Consumer Sentiment, the Index of Current Economic Conditions, and the Index of Consumer Expectations. Since the 1940s, these surveys have been produced quarterly through 1977 and monthly thereafter.

The surveys conducted in 2021 focused on topics such as evaluations and expectations about personal finances, employment, price changes, and the national business situation. Opinions were collected regarding respondents' appraisals of present market conditions for purchasing houses, automobiles, computers, and other durables. Also explored in this survey were respondents' types of savings and financial investments, loan use, family income, and retirement planning.

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AN IMPACT STUDY OF SOCIAL MEDIA MARKETING ON CONSUMER BEHAVIOR IN AJMER

• Marcel Chaudhary Research Scholar, Engineering College, Ajmer
• Dr. Varsha Maheshwari Assistant Professor, Sophia Girls’ College, Ajmer
• Ms. Yuvnika Sogani Research Scholar, Engineering College, Ajmer

In recent years, the proliferation of social media platforms has revolutionized marketing strategies, offering businesses unprecedented opportunities to engage with consumers. This study aims to investigate the impact of social media marketing on consumer behavior in Ajmer, a culturally rich city in India. Through a mixed-methods approach, combining qualitative interviews and quantitative surveys, this research explores how social media marketing practices employed by businesses in Ajmer influence consumer perceptions, attitudes, and purchasing decisions. A structured survey was conducted among a diverse sample of consumers in Ajmer to quantify the extent to which social media marketing influences their purchasing behavior across various product categories. Key variables such as demographic factors such as age, gender, and socioeconomic status will be examined to understand how they moderate the relationship between social media marketing and consumer behavior.

The findings of this study are expected to provide valuable insights for businesses in Ajmer and beyond, enabling them to optimize their social media marketing strategies to effectively target and engage consumers. Furthermore, the research contributes to the existing body of knowledge on the evolving dynamics between social media marketing and consumer behavior in the context of a culturally distinct city like Ajmer.

I. Chaffey, D., & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation, and Practice (7th ed.). Pearson Education Limited.

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III. Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the promotion mix. Business Horizons, 52(4), 357-365.

IV. Ryan, D., & Jones, C. (2009). Understanding digital marketing: Marketing strategies for engaging the digital generation. Kogan Page Publishers.

V. Smith, A. N., Fischer, E., & Yongjian, C. (2012). How does brand-related user-generated content differ across YouTube, Facebook, and Twitter? Journal of Interactive Marketing, 26(2), 102-113.

VI. Strauss, J., & Frost, R. (2016). E-Marketing (7th ed.). Routledge.

VII. Tuten, T. L., & Solomon, M. R. (2017). Social media marketing (2nd ed.). Sage Publications.

VIII. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.

IX. Hair, J. F., Celsi, M. W., & Ortinau, D. J. (2017). Marketing Research (4th ed.). McGraw-Hill Education.

X. Kothari, C. R. (2004). Research Methodology: Methods and Techniques (2nd ed.). New Age International.

XI. Malhotra, N. K., & Birks, D. F. (2007). Marketing Research: An Applied Approach (3rd European ed.). Pearson Education.

XII. Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill Building Approach (7th ed.). Wiley.

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The changing face of grocery demand

The pandemic-fueled rise in grocery retail spending will likely persist even after the pandemic abates. Contributing factors include the transition to hybrid- and remote-work arrangements and the increase in dining at home. As grocery demand grows, however, consumers are seeking more value, quality, and convenience. Their spending behavior is also blurring the distinction between ordering prepared food for dining at home (restaurant takeout) and buying groceries for home cooking.

About the authors

Asean consumption continues to grow.

Within the next decade, the Association of Southeast Asian Nations (ASEAN) is projected to become the fourth-largest economy in the world, powered by an expected population of more than 700 million by 2030. The World Economic Forum estimates that domestic consumption, which fuels roughly 60 percent of ASEAN’s GDP today, will double to $4 trillion by 2030. 1 Future of consumption in fast-growth consumer markets: ASEAN , World Economic Forum, June 5, 2020. While citizens of tier-one cities are expected to account for the majority of consumption, spending outside of major cities will make up close to $1.7 trillion from 2020 to 2030 (Exhibit 1).

About the research

Vietnam is a particularly interesting example. Consumption has been largely concentrated in the nation’s two major economic hubs, Hanoi and Ho Chi Minh City, which accounted for 37 percent of all Vietnamese households with income of more than $22,000 a year (in 2011 purchasing-power parity). However, our analysis reveals that the number of middle-class households in smaller cities (and even rural areas) is rising at a CAGR of 8 percent, outpacing Hanoi and Ho Chi Minh City, which are at 5 percent. Moreover, the Mekong River and Red River Deltas, which are densely populated but not fully urbanized, are becoming significant consumption pools, attracting the attention of modern retailers (Exhibit 2). These trends will cause the share of middle-class households in Hanoi and Ho Chi Minh City to fall to 31 percent in 2030. (For more on our analysis, see sidebar, “About the research.”)

Consumer demand in ASEAN is underpinned by three themes

As in other regions, the pandemic has had a pronounced—and potentially lasting—impact on consumer behaviors and preferences. Retailers seeking to keep pace should focus on three themes (Exhibit 3).

Better value

Amid a period of economic volatility and inflationary prices, consumers are looking for ways to stretch their dollars. For example, they are actively comparing product prices: in Indonesia and Vietnam, around 60 percent of consumers said they would do more in 2022 to save money while shopping. Consumers are also seeking out the best promotions, even if it means making separate purchases across stores and splitting purchases between offline and online channels. Last, shoppers are switching to less-expensive alternatives, such as private-label brands, with Indonesian consumers (44 percent net intent) 2 Net intent is calculated by subtracting the percentage of respondents stating they expect to decrease switching to less-expensive alternatives from the percentage of respondents stating they expect to increase this behavior. and Vietnamese consumers (13 percent net intent) leading the charge. This trend was especially prevalent in grocery food items deemed staples (such as rice and cooking spices) and nonfood necessities (for example, bathroom tissue).

Another byproduct of the pandemic is that consumers have increased their focus on improving their physical wellness. They are devoting greater attention to healthy eating and nutrition, resulting in more bal­anced diets and reduced consumption of highly processed food products. This shift is demonstrated by the overwhelming net intent among Indonesian and Vietnamese respondents to purchase healthier products (61 percent and 78 percent, respectively).

Despite the overall shift toward maximizing value on essentials, consumers are also spending on high-quality products and paying more to purchase goods that are perceived to be healthier—particularly fresh produce. This behavior is found in mature markets such as Singapore, as well as in developing markets such as Indonesia (44 percent net intent) and Vietnam (49 percent net intent). Rural consumers increased their direct purchases from local farms and producers thanks to the perception of heightened freshness and quality.

While ASEAN trails other mature Asian markets, such as South Korea, in online spending, adoption has accelerated during the COVID-19 pandemic. Sixty-five percent of Indonesian consumers and 69 percent of Vietnamese consumers have increased their online purchases with scheduled deliveries during the pandemic. Moreover, they expect to continue buying through online channels in the near future. Similarly, purchases made online with self-collection at stores or other pickup locations also have risen, with around 60 percent of Indonesian and Vietnamese consumers indicating an increase in click-and-collect purchases.

While online purchasing behaviors are likely to persist among urban and suburban consumers in Indonesia and Vietnam, rural consumers are likely to switch back to offline traditional retail as the pandemic stabilizes. This could result from a shortage of suitable delivery slots, as well as from consumers’ concerns about overall quality and freshness due to inadequate cold-chain infrastructure in online offerings.

While online purchasing behaviors are likely to persist among urban and suburban consumers in Indonesia and Vietnam, rural consumers are likely to switch back to offline traditional retail as the pandemic stabilizes.

In the shopping mindset of ASEAN consumers, three primary factors contribute to the move to online channels:

• Better prices . Demand is fueled by e-commerce players, who offer deep promotions at high frequency to attract and retain consumers.
• Personal safety . During the early stages of the pandemic, consumers made safety a top priority and adapted their behavior accordingly. As ASEAN consumers look to the future, public safety may be a lesser concern, though it is still expected to remain a key driver of online purchasing behavior in parts of the region.
• Convenience . Consumers have embraced the option to shop anytime, anywhere and to have their purchases delivered straight to their doorsteps. This proposition is further extended by expectations of fast, free delivery, which is often subsidized by e-commerce players as yet another means of customer acquisition and retention.

Tomorrow’s ASEAN consumer: More sophisticated and more discerning

Rising incomes will give ASEAN consumers more discretionary income: through 2023, consumer spending is projected to grow by nearly 5 percent a year across the region (Exhibit 4). In the process, consumers will become increasingly discerning and develop more sophisticated needs.

The following themes, which reflect current consumer preferences in mature global markets, will underpin future trends in ASEAN:

• Heightened awareness for supporting local businesses and communities . During the pandemic, consumers increased the demand for locally sourced, fresh produce and demonstrated greater awareness and support of local microbrands in packaged food products (for example, locally produced or formulated snacks).

Rising incomes will give ASEAN consumers more discretionary income. In the process, consumers will become increasingly discerning and develop more sophisticated needs.

• Increased attention to environmental sustainability . Consumers are seeking to buy products that are manufactured or produced in environmentally friendly ways. One indication of this is the increased awareness and acceptance of alternative proteins, which are perceived as better for the environment (though not necessarily healthier). The attention to environmental sustainability also extends to other facets and touchpoints along the consumer shopping journey, such as biodegradable product packaging and sustainably sourced or grown produce.
• Growing demand for transparency in production, particularly with premium fresh produce . Consumers are increasingly well-informed and knowledgeable; they demand not only validation of label information (for example, a clear indication of the certifying body for label claims) but also heightened transparency in sourcing (such as the country of origin) and in formulation and production (for instance, the composition of ingredients).

The evolving ASEAN consumer base means that retailers must adapt their value propositions. The region remains one of the fastest-growing and most exciting markets in the world for modern grocery retail operators, but the competitive landscape is changing fast.

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Retail Outperforms, But for How Long? 2024 Forecast

Spring Retail Report | 2024

Our latest report delves into the dynamic interplay between consumer behavior and how retailers’ evaluate their growth strategy in the rapidly evolving retail landscape.

We predict a slowdown in consumer spending in 2024, with overall growth slower than in 2023. This could have a profound impact on retailer strategies, as consumers are likely to form resiliency by being judicious with their spending dollars. Other factors may come into play as household incomes fluctuate and the aging population—baby boomers and retirees—maintain their spending habits despite higher interest rates.

Retailers respond to economic apprehension by adopting various strategies to meet consumer demands for essential items like food and healthcare. Non-essential retailers may need to work harder to attract customers. As consumers retreat from eating out in favor of cheaper options, restaurant owners are worried about profits in 2024, and some are exploring AI technologies to manage employee costs and potentially improve efficiency.

In the context of ongoing economic uncertainty and market-specific wage increases that are exerting pressure on retailers and altering market dynamics, we examine the resilience and flexibility of retail brands as they chart their course into the future.

Related Experts

Anjee Solanki

National Director, Retail Services & Practice Groups

San Francisco

AREA OF EXPERTISE

In Anjee’s current role, as National Director, Retail Services and Practice Groups for the U.S., she provides strategic leadershipto more than 500 retail professionalsnationally across 156 offices withinColliers — covering investment sales,agency, retailer representation, andasset repositioning advisory services.

Anjee Solanki brings 30 years of focused retail estate experience, and world-class expertise regarding everything retail to Colliers International. She provides strategic retail advisory services to enhance value for her clients with her expertise in lifestyle, community, power center, neighborhood, mixed-use retail/residential, and resort retail. 

She has developed and manages strong working relationships with institutional and private clients such as State of Florida, State of Michigan, Heitman, Invesco, Grosvenor Americas, American Realty Advisors, TH Realty, PNC, and Zurich to name a few.

Her strategy identifies current market and property inefficiencies to capture untapped value through asset repositioning, releasing, redevelopment, rehabilitation, proactive management, and enhanced marketing. 

Creative problem-solving is her specialty, and she becomes a key stakeholder with national and international retailers, such as JPMC, Opry City Stage/Ole Red and Tim Hortons, and many others. Her highly focused approach reduces the risk profile and provides clients with a thoughtful approach executing strategic multi-year planning initiatives. 

BUSINESS BACKGROUND

Previously, Anjee served as Executive Vice President, Retail Services for Madison Marquette. She successfully assisted with repositioning community centers to lifestyle projects and identified opportunities to create value, resulting in higher returns for her clients. She also provided strategic analysis on complex redevelopment projects to address both the asset’s financial stabilization and/or the client’s exit strategy

Anjee continues to be an insatiable collector of all things retail. She’s a student of culture living next door to future shoppers, whose fleeting trends constantly change the retail landscape … driving retailers, landlords and developers crazy! Read her Blog at:  https://knowledge-leader.colliers.com/author/anjee-solanki 

COMMUNITY INVOLVEMENT

Anjee is originally from Southern California and currently resides in San Francisco.  She is active in the Rincon Hill neighborhood residential improvement group, which participates in the public review of the highly anticipated Salesforce Transit Center in San Francisco.  

Nicole Larson

Manager, National Retail Research

Fort Lauderdale

As the National Research Manager for Retail Services, Nicole is responsible for studying conditions within the retail sector, collecting and reporting statistical data, and analyzing the data to identify significant trends and opportunities. Based in South Florida, she partners with national and local teams across the United States to deliver market intelligence initiatives to drive national competitive advantage through research strategy, development, and analytics.

Nicole has been in the commercial real estate industry since 2014, is bilingual in Spanish, and holds a Florida Real Estate Associate License. Enthusiastic about exploring the dynamic realms of the retail industry, she enjoys continual learning, seamlessly blending curiosity and enjoyment in every pursuit.

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Malaysian Consumer Shopping Behaviour 2024: Habits & Attitude

In the realm of consumer behaviour, understanding how people shop is essential. Our analysis of Q1 2024 purchases uncovers valuable insights into why people make purchases and how they make decisions. This article delves into these aspects, as well as explores consumer perspectives on value. Join us as we reveal these insights, shedding light on the ever-evolving landscape of consumer habits. 

Methodology  

This survey was conducted from 23rd February to 11th March 2024 using Vodus’ proprietary OMTOS online survey method that enables a survey audience sampling reach of 17 million Malaysians (53% of population) through a network of major online media platforms [1]. In total, Vodus has surveyed 19,697 respondents nationwide to gather data and insights that accurately represent the Malaysian consumer population. 

Shopping Habits & Decision Making  

To gain a better understanding of the shopping habits and decision-making processes of Malaysian consumers, we gained key insights into price comparison practices across different purchasing channels, as well as sought to understand whether Malaysians were willing to pay a higher price for quality. 

Our findings show that whether purchasing from physical retail stores, online or through ecommerce marketplaces, 42% of consumers in Malaysia always compare pricing before making a purchase. In particular, consumers between the ages of 45 and 54 are more inclined to compare prices (81%) in order to determine the best option, potentially saving money and maximising their budget. 

We uncovered a range of attitudes towards paying a premium for quality among those surveyed. A noteworthy 23% of respondents consistently prioritise quality, showing a strong willingness to invest in superior products regardless of price. Conversely, a substantial 44% of participants demonstrate a more flexible approach, indicating that they would occasionally pay a higher price for quality. This diversity in consumer attitudes highlights the intricate balance between price and quality considerations in purchasing decisions, reflecting the diverse preferences and priorities of modern consumers. 

These consumers primarily consist of individuals from the M40 group, with a monthly household income (MHI) ranging from RM5,000 to RM8,000 (76%), and the T20 group, with an MHI of RM12,000 and above (79%). Notably, 73% of the Chinese segment prioritise quality and are willing to pay a higher price for it. 

Chart 1: Frequency of Engaging in Price Comparisons and Paying Higher Price  

The incidence of consumers in comparing prices varies across different categories. When it comes to daily necessities and discretionary items like F&B (77%), personal care/hygiene products (78%), clothing (81%), health & wellness (76%), beauty & cosmetics (78%), consumer electronics (76%), and home improvement products (78%), consumers exhibit a keen eye for value. They actively compare prices between physical and online stores, showcasing a channel-agnostic approach in their quest for the best deals. This dynamic behaviour underscores consumers' determination to make informed purchasing decisions and maximise the value of their expenditures. 

Consumers shopping for specific-purpose items such as pet products, baby & childcare essentials, and office supplies tend to focus their price comparisons on various ecommerce websites and marketplaces. In these categories, consumers prioritise specific features or brands, motivating them to scour the internet for the best deals and options available. 

In contrast, prioritising a higher price for better quality is more prevalent among buyers of indulgence items such as tobacco & cigarettes and alcoholic beverages, rather than engaging in price comparisons. This suggests that factors other than price, such as quality and brand reputation, may take precedence for consumers in these categories. 

Chart 2: Incidence of Price Comparisons across Categories and Paying Higher Price

Consumer Attitudes Towards Value  

In Malaysia's bustling marketplace, businesses regularly introduce new products and services. However, consumer responses vary. Some eagerly embrace innovation, while others prefer familiar options for a sense of security. This diversity in preferences underscores the importance of understanding consumer attitudes to effectively launch successful offerings. 

Our survey reveals that a significant 73% of Malaysian consumers are adventurous when it comes to grocery shopping, readily exploring new products or brands that offer better value. Notably, younger consumers aged 18–34 years (83%), those of Chinese ethnicity (81%), and individuals from lower M40 households with an MHI of RM5K–8K and lower T20 households with an MHI of RM12K-16K show a strong inclination towards embracing new products or brands. 

Moreover, regular users of social media platforms such as Facebook, TikTok, Instagram, and X are more likely to be receptive to new products and brands, with an impressive 80% showing openness. As such, marketers should leverage social media platforms to effectively market any new products and services. 

Chart 3: Willingness to Try New Products  

Get a deeper understanding of our findings by checking out "Malaysian Consumer Sentiment Behaviour 2024: Online Preferences & Spending" There, we unveil the influences steering purchasing decisions and which products Malaysian consumers are most likely to purchase online. Click here to explore the factors driving consumer behaviours and discover their online shopping preferences.  

For more info on the product category level and demographic deep dive analysis, or if you want to know more about our proprietary OMTOS survey technology, please contact us in the form below or email us at [email protected] .   

• Vodus proprietary OMTOS survey technology surveys Internet users across popular online platforms from Media Prima, Astro, The Star, and Sinar Harian Karangkraf.

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