FOMO's Impact on Consumer Loyalty: Beverage Industry Study in the Social Media Age

This study investigates the rise of the brand ‘MIXUE’ that operates in the beverage sector, especially tea and ice cream-based drinks. They are known for their fresh tea products and unique ice cream variants. It explores the transient nature of hype in the franchise sector, particularly how the feeling of Fear of Missing Out (FOMO), driven by Social Media Marketing (SMM), product quality, value for money, and service quality, impacts customer loyalty and purchase intentions. Employing a deliberate sampling method, the research gathered data from 233 participants through questionnaires and analysed using SPSS and SEM-LISREL tools. The findings reveal that FOMO, alongside SMM, product quality, perceived value, and service quality, significantly influences customer loyalty. Notably, FOMO greatly affects loyalty and buying intent, but surprising dynamics are at play, such as the negative impact of excessive SMM and purchase intentions on loyalty. The results suggest that while value for money may decrease FOMO, it enhances purchase intention and loyalty, underscoring the importance of providing substantial value. This research provides new insights into the management strategies, indicating the effectiveness of using FOMO in marketing to boost loyalty, but warns against overusing SMM. It also highlights the roles of product quality, service, and value in cultivating FOMO and loyalty. The study's theoretical contribution lies in exploring how FOMO, SMM, product quality, value, and service influence consumer behaviour, suggesting that further research is needed to understand these dynamics fully. Keywords: Fear of Missing Out (FOMO), Social Media Marketing (SMM), product quality, value for money, purchase intention.