The rhythm (and decisions) of the night: how FoMO and place identity explain decision-making, nighttime economy usage and expenditure

Purpose The purpose of this research is to provide theoretical and practical insight into the night-time economy (NTE), which is underpinned by services that provide consumers with a “third place”. Specifically, the research examines the critical decision-making factors that encourage NTE use and expenditure, and how these are explained by place identity and individuals’ level of fear of missing out (FoMO). Design/methodology/approach This research uses a cross-sectional survey of 577 participants in the Sunshine Coast region of Australia. The data are analysed using partial least squares structural equation modelling and PROCESS Macro, with mediation and moderated effects tested. Findings The results confirm four key decision-making factors: safety, transport, quality and social, which have a significant impact on NTE usage and expenditure. Place identity plays a key mediating role in explaining these relationships between decision-making factors and NTE usage and expenditure. Furthermore, these relationships are stronger for individuals who report higher levels of FoMO. Originality/value This research contributes to understanding how an NTE can be conceptualised as a sustainable ecosystem in which both social outcomes (senses of place identity) and economic outcomes (usage and expenditure) can be achieved. In doing so, it also draws greater scholarly attention to NTE, a sector embedded in services such as tourism, hospitality and retail, yet underexplored in the services marketing literature. Furthermore, the research addresses the fragmented understanding of factors influencing NTE usage by synthesising, validating and modelling key decision-making factors, along with establishing their quantified associations with NTE usage and expenditure.