A Study to Analyse The Customer Online Reviews and its Impact on their Purchasing Decision: Evidence from Indian: Gen Z with Reference to FOMO

Abstract

The objective of the study is to analyze the effect of online reviews of products/services on consumers' buying behaviour and the fear of missing out among Generation Z Indians in particular. Since the rise of e-commerce in India, there has been a tremendous surge in online reviews which have emerged as the leading forms of electronic word-of-mouth. A descriptive methodology was followed for the purpose of data collection and primary data were collected from 102 participants using a structured questionnaire form. In the research, several factors, including credibility, sensitivity towards ratings and positive/negative reviews were explored. Online reviews play a major role in shaping consumers' buying decision as the majority of participants relied more on reviews and ratings for purchases. It was seen that negative reviews have more power over customers than positive ones, implying negativity bias. Moreover, FOMO is an integral aspect in influencing consumers' purchase decisions through the element of popularity of the product. In conclusion, the purchase behaviour of the Indian Gen Z population is influenced by both rational assessment and emotions. The research provides an important contribution to the expanding field of digital consumer behaviour research, merging both behavioural and psychological aspects into one.