Megan Cunningham, Verrazzano Class of 2026, completed a major in Business Marketing
User-generated content (UGC) is content created by consumers rather than by the brand. Content can include social media posts and product-review videos. For my research, I examined how UGC on social media platforms can affect brand loyalty and compulsive buying among Gen Z consumers. UGC can positively impact brand loyalty by building trust and creating emotional connections with consumers. Consumers prefer content from real users because of its authenticity. The more authentic the content is, the more trust the consumers have in the brand and the creator. Consumers trust UGC content because they can relate to the creator, who is just like them and uses the product in the way they would. The Parasocial Interaction Theory is a one-sided, imaginary relationship between an individual and a famous media personality. It explains how consumers establish an emotional connection with these content creators. The more creators interact with their fans, the more emotionally connected the fans feel, which builds loyalty and an imagined close friendship. If they recommend a product to use, this could lead to an increase in brand loyalty.
UGC can also positively impact compulsive buying tendencies
among Gen Z consumers by triggering FOMO (Fear of Missing Out) and intensifying
materialistic values. Compulsive buying is an uncontrollable, excessive amount
of shopping that results in a need to buy regardless of the consequences. FOMO triggers
the sense of urgency to buy a product. Materialism is the desire for validation
through one's purchases. The Social Comparison Theory explains how individuals
evaluate their own opinions and desires by comparing themselves to others. By
using this theory as a framework, UGC causes FOMO and materialism, and can lead
to impulsive and possibly compulsive buying.
I was motivated
to write about social media because, like many other Gen Z consumers, I
frequently view and create UGC on platforms such as TikTok and Instagram. As a
Business Marketing student, I wanted to gain insight into the effects of UGC on
consumers and understand what businesses should and should not do in their
social media marketing strategies. I expected this topic to be challenging
because UGC is new, and my assumption was that there would be limited research available.
However, I found a large number of studies on UGC and brand loyalty. The main challenge
was that there were not many articles specifically focused on how UGC impacts
compulsive buying tendencies. Also, some
studies had limitations such as focusing on specific platforms or content
formats, using a small sample size, using a single gender, or concentrating on one
business sector.
During my research, I was surprised to discover that the UGC does not directly impact compulsive buying. Instead, it contributes to impulsive behavior, which may develop into compulsive behavior over time. One key takeaway from this research is the need for further research on the long-term effects of UGC on brand loyalty and compulsive buying among Gen Z. Future research should focus on different types of UGC across multiple platforms and use larger, more diverse sample sizes to support this hypothesis.
