Persuasive power of social media: exploring its impact on tourist psychology, spending behavior and financial well-being using mixed-method approach

Purpose This study aims to investigate the influence of social media characteristics on tourists’ psychological states and spending behaviours, which subsequently affect their financial well-being. This study highlights the need to comprehend social media’s persuading potential in the tourism sector, along with how it may lead to financial strain through behavioural and psychological pathways. Design/methodology/approach Using a mixed-method approach, the phenomenon was thoroughly investigated. In phase one, qualitative analysis identifies the attributes of social media that influence users’ psychological reactions and behaviour of tourists. A quantitative phase that involved surveying 551 young and middle-aged social media users who often interact with content about luxury hotels was carried out to further validate the framework, using structural equation modelling. Findings This study demonstrates that social media characteristics have a detrimental influence on financial well-being through parallel and serial mediation by social media intensity, fear of missing out and impulsive spending. Research limitations/implications By extending the stimulus-organism-behaviour-consequence (S-O-B-C) paradigm into a digital and luxurious hospitality context, this study contributes to the literature on tourism and tourist behaviour while providing marketers, tourism and hospitality industry professionals and practitioners of financial wellness with both theoretical and practical implications. Originality/value To the best of the authors’ knowledge, this research is one of the first to use the S-O-B-C framework in the context of social media and luxury hotels, specifically linking content on social media to financial outcomes, impulsive buying and psychological reactions. This study closes a significant gap in the literature on tourist behaviour, digital influence and financial well-being in the luxury tourism and hospitality sector.