A Causal Relationship between Buying Behavior and Online Purchase Intention among Millennials: An Application of Generational Cohort Theory
Dr. Adel Abdulmhsen Alfalah
Assistant Professor
Department of Management,
University of Ha'il, Saudi Arabia
Dr. Saqib Muneer
Associate Professor
Department of Economics and Finance,
University of Ha'il, Saudi Arabia
Abstract
The preferences of young Saudis regarding their use of the internet to make purchases are investigated in this study. There will also be an effort to build and test a theory about how young people shop online. This study examine the moderation effect of online shopping familiarity on consumer motives and online purchase intention's relationship. Convenient sampling techniques is used to collect the data from 315 college students in Saudi Arabia.Structure equation modeling and smart-PLS were applied to conduct the analysis of the data.Based on the results it is clear that all independent variables, i.e., attitude, social motive, escapism motive, and value motive, have stronglyrelatedto online purchase intention. Furthermore, results show that the familiarity of online shoping is significantly moderates the relationships between consumer motives and intention to purchase online. Through highlighting their different aims, aspirations, and characteristics, the findings of this article will assist marketers and policymakers in better comprehending and appealing to this young demographic. The study adds to the litarature through relating the generational cohort theory to online purchasing behavior, illuminating this demographic's unique values and characteristics. The finding of this study can be used by the marketers to better tailor their products and services to the preferences of people of this age.
Keywords: Consumer Motivation, Online Shopping, Purchase Intention, Generational Cohort, Digital Marketing
Introduction
The number of people using sites of social networking has skyrocketed over the past decade. People may experience a sense of obligation to "keep" their profiles on online social networks even though the primary function of SNSs is to facilitate social interaction(Pahlevan Sharif & Yeoh, 2018). Young people are especially at risk of being addicted to social networking sites like Facebook and Twitter. It is improbable that someone will entirely quit using the internet (and, by extension, SNSs) because they are so firmly integrated into today's professional and leisure activities(Brewer & Sebby, 2021; Pillai & Nair, 2021). This contrasts with other addictions, which are more likely to be overcome. An increase in people's propensity to purchase online is one of the unforeseen consequences resulting from this trend(Das et al., 2021; Laroche et al., 2022). According to Liu et al. (2021), Saudi Arabia, which has a relatively young population, provides an ideal environment to investigate how monetary attitudes influence technology use's effect on young adults' behaviors. Only 10% of the Saudi people of 6 million individuals are aged 65 or older. In 2020, the median age of the Saudi population was just 30 years old, making it one of the world's most populous countries while having a relatively young population(Jamil et al., 2022). The presence of a sizable youth population is associated with its own unique set of problems for society.
Studies have been done on the association between using the internet and being addicted to buying, but the effect of social networking sites on this kind of shopping and the reasons behind it are still mostly unknown(Noel, 2021). It is becoming increasingly vital to investigate the aspects that lead to obsessive online purchasing to examine the factors that contribute to compulsive offline shopping since online shopping is becoming increasingly popular(Bylok, 2022; Hussain et al., 2021).Consumers' spending is subject to considerable sway from demographics and personal, social, and psychological aspects. To apply the control over a specific market, marketing experts and lawmakers have traditionally relied on using such features to precisely designate a homogenous division of customers. This allows them to target their efforts more effectively. Because generational groupbrands provide more consistent consumer insights than age range grouping, they are frequently employed in the academic and practitioner literature to break customers into digestible pieces. This is because generational group brands provide more consistent consumer insights(Baig et al., 2020).
Consumers' money is subject to considerable sway from psychological, personal, demographics andcultural aspects(Katta & Patro, 2021; Yang, 2021). Marketing experts and lawmakers have traditionally relied on using such features to precisely designate a homogenous subset of consumers to apply their influence over a specific market. This allows them to effectively target their efforts(Radwan et al., 2021). Because generational cohort labels provide more consistent consumer insights than age range grouping, consumers are frequently categorized in academic and practitioner literature depending on their generation(Song et al., 2021). This is because generational cohort labels have been used more regularly. The generational cohort hypothesis developed by Inglehart in 1977 postulates that persons of the same generation are likely to have similar worldviews since they simultaneously experienced similar formative moments in society and the economy(Gul et al., 2021; Puriwat & Tripopsakul, 2021). In this study, the generational cohort theory is utilized to analyze the online purchasing behaviors of the millennial generation as well as their plans to make purchases(Z. Li et al., 2021). This is due to the general acceptability and usefulness of this theory. The Millennial generation has the highest level of technical competence of any previous generation(Wang et al., 2021). In addition, the demographic has a growing preference for shopping online. It has been hypothesized that the "coming of age" stages experienced by millennials were marked by special happenings, which in turn may have contributed to the generation's penchant for online retail therapy(N. L. Kim et al., 2021). As a result, this study aims to investigate the influence of millennial-specific characteristics, such as attitudes and motives, familiarity with online shopping (OSF), and search behavior, on the shopping behaviors of younger customers who do their shopping online(Masuda et al., 2022). According to the findings of Liu et al. (2021), marketers and policymakers can better connect with millennials if they tailor their efforts to this generation by considering the distinctive values and characteristics that define this generation. In other words, they should consider the millennial generation's unique values and factors(Zhu & Kanjanamekanant, 2021). Therefore, there is value in this subject on various levels, ranging from the theoretical to the practical. To summarize, the purpose of this study was to investigate 1) the effect that excessive use of social networking sites (SNS) has on various aspects of youths' attitudes and online purchase intention, and 2) the role that youths' online shopping familiarity (OSF) play as a moderating factor in the relationship between these two variables. Therefore, the study aims provide the answersof the below mentioned questions:
R.Question1: How do young consumers’ motives influence online purchase intention?
R.Question2: Does online shopping familiarity moderate between consumer motives and online purchase intention?
It was hypothesized that the people who participated in this survey were young Saudi customers. In this research, we demonstrate that a customer's familiarity with online shopping might moderate the connection between their motives and their propensity to make a purchase.
This investigation is broken up into three distinct parts. First, a literature review on how millennials shop online is carried out to get started. Second, before presenting the technique and the outcomes, we make some assumptions regarding customers' intent to purchase online.
Theoretical Background-Literature Review
Generational Cohort Theory
There is not necessarily a direct association between demographic traits such as age or generation and purchasing behaviors and the factors influencing them(Eger et al., 2021). Examples of demographic features include Cohorts, cohorts of peopleswho born in the same year, and going through life together(Kanter, 1977). Based on their ages, the individuals who make up a particular generational cohort can be segmented into groups with similar beliefs and are simpler to market to(Thangavel et al., 2021). Conflicts, economic transformations, and technical developments all took place during the formative years of the cohort members, and these aspects significantly impacted the members' individual development as a result of their occurrence(Lissitsa & Kol, 2021). In particular, "defining moment" experiences in the later stages of adolescence or the early stages of adulthood are more likely to develop values consistentlythroughout a cohort's entire lifetime.
Consequently, it is not unusual to find generational disparities in a nation's values and views, as these may be influenced by the history of the country and significant events that have occurred inside it(Mohsin et al., 2022; Thangavel et al., 2022). For example, those who reached adulthood in the United States during World War II are now considered to be some of the most patriotic people in the country since they were able to see the victories of the war on television. In a similar vein, after firsthand experiencing the horrors of World War II, members of the same generation in England began to lay less emphasis on being patriotic(Scandurra et al., 2021). This demonstrates, in accordance with the generational cohort theory, that the same products and events can be interpreted in a different waycrossways generations and countries due to differences in the values that are established during "coming of age" experiences. This is the case even though the events and products are the same. This is the true regardless of whether or not those nations and generations are the same. This is true even though the events and things remain the same(Sharma et al., 2022).
The millennial Cohort
According to the findings of Brink & Zondag (2021), anyone born after 1981 is included in the millennial generation. This is even though the classification of generations is notoriously tricky. The millennial generation is the only one in industrialized countries' history with a more diverse racial and ethnic makeup than any other generation(Roth-Cohen et al., 2022). They are proactive and dedicated to achieving their goals, open to new experiences and points of view, and invested in the communities in which they live because they are driven by the desire to put a positive impact on the world(Eger et al., 2021; Jamil et al., 2022). On the other hand, millennials in various parts of the world may have very diverse perspectives and values. The financial crisis that began in 2008 had a particularly severe impact on older millennials (people aged 27 to 35).Consequently, they place a higher priority than the current generation on the concept of financial thrift (those between the ages of 18 and 26). Despite their obsessive behavior, they are frugal "deal seekers" who emphasize saving money(Thangavel et al., 2022).
According to the research done so far, age differences in online behaviors have been found to exist(Gao et al., 2021). There is a specific emphasis placed on internet-born millennials who were exposed to a formative experience in their lives when they were connected to people all over the world through the internet(Leslie et al., 2021; Mohsin, Jamil, et al., 2022). This generation has been called "digital natives" because of their inherent familiarity with and interest in technology. Members of this generation are more likely to be online than those of other generations because of their natural comfort with and interest in technology(Yawson & Yamoah, 2021). Most Saudi millennials are active users of at least one social networking site, and the role that these platforms play in developing their interpersonal connections is important(Goldring & Azab, 2021). In addition, searches for brand and product information, buy intent, and information sharing during the purchasing process are all influenced among millennials by online shopping and social media(Mustafa et al., 2022; Pillai & Nair, 2021). Millennials are the generation that is currently in their 20s and 30s. This generation is a promising target group for online retailers because of their high internet and social media use(Das et al., 2021; Naiwen et al., 2021).
Purchase Intention and Attitudes towards online shopping
In contrast to traditional retailers with brick-and-mortar locations, online marketplaces condense the various selling steps into a single interface(Gao et al., 2021). As a result, customers enjoy greater convenience when they make their purchases online because no geographical or temporal barriers are involved in the transaction process. On the other hand, people who shop online cannot physically evaluate the quality of the product by tasting or touching it before making a purchase(Leslie et al., 2021). There is a lot of room for improvement when it comes to understanding client sentiment using the usual indications for internet marketing. The perception that a consumer has of a product does, however, influence the likelihood that they will purchase that good(Jamil et al., 2021; Yawson & Yamoah, 2021). An individual's consistent feelings, behaviors, and evaluations regarding a particular thing or concept are the components that make up their attitude toward that thing or idea. However, previous studies of consumer attitudes regarding internet purchasing have mainly concentrated on technological and demographic variables as the driving forces behind those sentiments(Goldring & Azab, 2021; N. Li et al., 2021).
Both the knowledge that consumers have about the possible disadvantages of the convenience that comes with online shopping and the actual experiences that they have had with it combine to provide the basis for the attitudes and behaviors of consumers regarding online shopping(Daroch et al., 2021). Compared to previous generations, millennials have a more sophisticated grasp of the advantages and disadvantages of internet purchasing because they have grown up in the digital age(Çebi Karaaslan, 2022). Because members of Generation Y are typically adept at avoiding the risks associated with internet shopping, they have developed a favorable attitude toward the activity as a whole(Melović et al., 2021). Previous research on consumer behavior has discovered a correlation between an individual's attitude toward making purchases via the internet and the individual's propensity to make any purchases via the internet(Muhammad et al., 2019; Puriwat & Tripopsakul, 2021). Thus, we posit the following:
Hypothesis1: Online purchase intention of young consumers is positively relate to approach towards online shopping.
Purchase Intention and online shopping motives
The fundamental reasons a customer makes a purchase ultimately determine that customer's choice; those reasons serve as the determinants(Adamczyk, 2021; Mohsin et al., 2021). There are two different kinds of shopping motives, rational and emotional, according to the concept of motivation, which can be found in shopping(Alhaimer, 2022). Hedonic and utilitarian motivations have garnered more research and attention than social, escapist, and value-based drivers of behavior. Millennials have greater access to and an increased understanding of technology than previous generations, resulting in more sophisticated purchasing concerns and options(Bezirgani & Lachapelle, 2021; Naseem et al., 2019). Additionally, millennials have many friends and are worried about the public image they project as consumers. When making purchases, individuals of a cohort are sensitive to the judgments of those in their immediate environment because they care about receiving social approval(Moh’d Al-Dwairi & Al Azzam, 2021). Because they have access to a wealth of information and tools, members of Generation Y are more than eager to "be their own boss" when purchasing. There is a possibility that specific shopping motivations will emerge due toMillennials' distinctive values and qualities (such as their insatiable need for acceptance and their capacity for self-control).
"Social reasons" refers, for this article, to the extent to which an individual is driven to engage in online purchasing so that others can observe them engaging in said activity(Alimamy & Gnoth, 2022). This can be done for various reasons, including the desire to appear successful or cool in front of others. However, a lot of research has not been done looking at how vital social motivations are in customers' decision-making processes(Lixăndroiu et al., 2021). On the other hand, Kaur & Singh (2007)found that young Indian consumers frequently mimic the shopping behaviors of their parents and grandparents. According toParment (2013), adolescent consumers in the Western world are becoming less dependent on their parents and more interested in pursuing their interests and passions. This discussion, which is not clear, has to be clarified. Therefore, the below hypothesis is posited:
Hypothesis2. Social motives are positively associated with young consumers’ online purchase intentions.
The Internet is a fantastic tool for breaking one out of monotonous daily routines(Gupta et al., 2021). For example, young individuals may find that doing their shopping online is an enjoyable way to pass the time(Smaldone et al., 2021). In addition, previous research has indicated that young people resort to online social networks and video games when they need to escape their problems(Atulkar & Singh, 2021).Based on the above agrument the following hypothesis is formulated:
Hypothesis3:Online purchase intention of young consumers afftects an escapism motive.
Value motivation can be broken down into its parts, which include a transaction's costs, benefits, and prices(Koch et al., 2022). Millennials are known for placing a high value on the here and now; consequently, their actions are frequently congruent with the significance that they assign to the present moment(Müller et al., 2022). Because millennials place a premium on efficiency above all else, this quality plays a role in the products and services they purchase(De-Juan-Vigaray et al., 2021). These "discount hunter" millennials know the benefits of online buying, including the ability to compare prices and locate the best offer.
Hypothesis4:Online purchase intention of young consumers is associated with value motive.
Moderating effect of Online Shopping Familiarity (OSF)
Consumers with a high level of self-confidence are more likely to educate themselves independently(Ghali, 2021). Consumers with a high level of self-confidence often understand the sources from which they receive data and the processes they use to obtain it. These characteristics are considered in addition to the new and old product data in a database that is being compared(Sumarliah et al., 2022). On the other hand, the brand X interactive matrix represents the quantity of pertinent external information; hence, the earlier build is, the more applicable(Tan et al., 2021). The latter structure, on the other hand, reveals the purchasing habits of customers and their awareness of product categories (asking about the type of knowledge considered in this article). According to Chung & Karampela (2021), consumers' familiarity with the various product categories influences their capacity to search for relevant information and make judgments based on that information. The findings that were anticipated to be reliable from these forecasts, however, did not materialize (Silva et al., 2021). Numerous studies have found either a negative association between seeking and having more knowledge or no correlation between the two. Yunpeng & Khan (2021)assert that the results of knowledge and information searches are incongruent.
Because they have grown up with the internet, members of Generation Y are the most tech-savvy and enthusiastic online shoppers(J. J. Kim et al., 2021). Similarly, the vast majority of millennials will research a product online before making a purchase(T. Liu et al., 2021). This is done to better understand the products, their prices, and any bargains, discounts, or other special offers currently being offered(Oday et al., 2021). When making a purchase, it is always to a customer's advantage to have as much information available to them as possible(Md Husin et al., 2022). This holds especially true in light ofyounger consumers' propensity to conduct internet research before making a purchase. Hence, the following hypotheses are posited:
Hypothesis5: There is moderation effect of OSF on attitude and purchase intention relationship.
Hypothesis6: There is significant moderation effect of OSFon social motive and purchase intention relationship
Hypothesis7: There is a moderation effect of OSFon escapism and purchase intention relationship
Hypothesis8: There is significant moderation effect of OSFon value motive and purchase intention relationship.
Conceptual Framework
Figure 1 shows direct and moderating relationships between the variables.
Figure 1: Conceptual Framework
Methodology
In light of these hypotheses, a questionnaire was adapted to get the accurate information from the studentsof Saudiuniversities. Questionnare was analyzed by the academican with the marketing bekground and final questionnaire was revised after making suggestions to make it more accessible to the study's respondents. The familiarity with online purchasing and the social motive items have been recommended for minor textual modifications. The questionnaire was translated into Arabic with the assistance of a native-speaking volunteer. Questinnare were distributed with Arabic and English both languages to get the required information. A convenient sampling was used to chose the participants from different univerties in Saudi Arabia. Kline (2015) suggested criterion was utilized to determine the number of participants in the study. He recommended for each question include ten or more options. Given that 20 items were used, a sample size of at least 200 was necessary. To boost the study's reliability and validity, researchers distributed and promptly received 315 questionnaires from study participants.
Measures
In order to investigate the respondents' attitudes towards the practice of shopping online, we modified three measures taken from the study ofAhn et al. (2007) and Khare & Rakesh (2011). The level of convenience that participants experienced when it came to purchasing online was evaluated based on their responses to three questions that were derived from earlier studies of Flavián et al. (2006)as well as (Khare & Rakesh, 2011). We used three items to measure social motive, and Çelik (2011)study was useful to adat the items for this question as well as the study of Christodoulides & Michaelidou (2010). Furthermore, Hill et al. (2013) study items were used to measure the escapism motive. Then, in order to evaluate potential future acquisitions, four factors were consideredfromKhare& Rakesh (2011).
Results
The measurment model's analysis is used to elucidates the relationship of latent variables dimensions, the characteristics of the measurements used to assess them, and the things visible to the observer. Further, relaibilty, validity and internal consitancy of the items will be examined in this section (Alfalah, 2023; Azam et al., 2022; Hair et al., 2011; Henseler et al., 2009).The twenty-piece set serves to illustrate the five model components. The PLS algorithm was adaptable to any reflective structure which is also used to chehck the validity and relaibilty of the items (Usman Shehzad et al., 2022).
In order to determine the degree to which this item was dependent on that variable, we investigated the first-order construct (Table 1). Attitude toward the online purchase is based on the three items. All items were significant with the level value of 0.5 based on the T-statistics resluts but outer loadings fluctuated to 0.881 from 0.761. Further,T-statictics shows thatconcerned items were significant with 0.5 level value.Moreover, fluctuation to 0.51 from 0.651 is associated with the OSF items. Three items were assessed for social motive, three for escapism motive, and four for value motive.
Table 1: Constructs Validity and Relaibility
|
Constructs, Items |
Loading |
AVE. |
CR. |
Α. |
|
Attitude toward online shopping |
|
|
|
|
|
AOS1 |
0.881 |
0.899 |
0.919 |
0.641 |
|
AOS2 |
0.761 |
|
|
|
|
AOS3 |
0.869 |
|
|
|
|
OSF |
|
|
|
|
|
OSF1 |
0.799 |
0.821 |
0.849 |
0.601 |
|
OSF2 |
0.651 |
|
|
|
|
OSF3 |
0.851 |
|
|
|
|
SM |
|
|
|
|
|
SM1 |
0.871 |
0.829 |
0.891 |
0.659 |
|
SM2 |
0.809 |
|
|
|
|
SM3 |
0.570 |
|
|
|
|
EM |
|
|
|
|
|
EM1 |
0.809 |
0.879 |
0.921 |
0.739 |
|
EM2 |
0.819 |
|
|
|
|
EM3 |
0.801 |
|
|
|
|
VM |
|
|
|
|
|
VM1 |
0.763 |
0.856 |
0.895 |
0.733 |
|
VM2 |
0.701 |
|
|
|
|
VM3 |
0.848 |
|
|
|
|
VM4 |
0.740 |
|
|
|
|
PI |
|
|
|
|
|
PI1 |
0.881 |
0.839 |
0.891 |
0.691 |
|
PI2 |
0.769 |
|
|
|
|
PI3 |
0.871 |
|
|
|
Table 2: Discriminant Validity
|
ATT |
SM |
EM |
VM |
OSF |
PI |
|
|
ATT |
0.880 |
|
||||
|
SM |
0.867 |
0.870 |
|
|||
|
EM |
0.658 |
0.646 |
0.763 |
|
||
|
VM |
0.762 |
0.726 |
0.671 |
0.868 |
|
|
|
OSF |
0.860 |
0.753 |
0.652 |
0.840 |
0.841 |
|
|
PI |
0.821 |
0.732 |
0.750 |
0.810 |
0.832 |
0.860 |
Proposed measures of structural fit, R-squared, and Q-squared, were used in the analysis (Hair Joe F. et al., 2016). The cutoff for a moderate R-squared (or the coefficient of determination) is 0.33.(Chin, 1999). Purchase intention has an R-squared value of 74.1. Acceptable values for Q2 are those that are greater than "zero." Q values in the squared form are positive, meaning they are greater than zero(Ringle et al., 2015). The study's reliability predictive method is demonstrated by the Q2 values of the construct (exogenous)(Awan et al., 2022; Hair et al., 2016). Henseler et al.(2015)have found that R2 can be utilized as a proxy for a model's predictive efficacy.
Table 3: Model Relevency (Predictive)
|
R Square |
R Square Adjusted |
|
|
Purchase Intention |
0.741 |
0.739 |
The results indicate that attitude toward online shopping significantly impacts the purchase intentionwith t-value=12.41 and at p-value = 0.000 which is an evidnece in the favour of Hypothesis 1. Further, results show that purchase intention is positiviely effected by social motivewith β=0.051 and t-value=3.21 as well as at p-value = 0.003 which validates the hypothesis 2. Escapism motiveimpact purchase intention's results (β =0.121, t-value=4.49, p-value = 0.001) support the hypothesis 3. Moreover, the value motive on purchase intentionresults (β =0.131, t-value=2.19, p-value = 0.031) supported the hypothesis 4.
Table 4: Hypotheses Testing
|
Sample size |
Mean of sample |
S. Deviation |
T. Statistics |
P.Values |
|
|
ATT→PI |
0.639 |
0.639 |
0.049 |
12.41 |
0.000 |
|
SM→PI |
0.051 |
0.051 |
0.021 |
3.21 |
0.003 |
|
EM→PI |
0.121 |
0.121 |
0.031 |
4.49 |
0.001 |
|
VM→PI |
0.131 |
0.131 |
0.061 |
2.19 |
0.031 |
Whenever a third variable (the "mediator") either weakens or strengthens the association between the two primary variables (the "independent" and "dependent"), we say that the link between them has been "moderated" (Lindley & Walker, 1993). It is called a moderator when and how one variable affects another (Baron & Kenny, 1986).Several approaches have been predicted for moderating testing impacts to check weather its categorical or continuous.Smart PLS-SEM is used to examine the moderation effect a variable as we can compare th impact on reflective and formative measure as well as the statictical power(Vinzi et al., 2010). There is strong positive effect of shoping familiarity on the relationship between consumer motives and purchase intention based on the study resultsas shown in Table 5.These results also support the moderating hypothesis 5 6 7 and 8.
Table 5: ModerationAnalysis
|
|
Sample |
Mean of sample |
S. Deviation |
T. Statistics |
P.Values |
|
ATT*OSF→PI |
0.069 |
0.069 |
0.009 |
5.31 |
0.000 |
|
SM*OSF→PI |
0.119 |
0.119 |
0.019 |
5.19 |
0.000 |
|
EM*OSF→PI |
0.059 |
0.059 |
0.018 |
3.18 |
0.001 |
|
VM*OSF → PI |
0.221 |
0.221 |
0.016 |
4.23 |
0.002 |
Discussion and Implications
During the period encompassing the information age, the Millennial generation has "reached maturity" (Inglehart, 1977; Rogler, 2002). The pervasiveness of the internet in their day-to-day lives has affected the shopping habits that they have developed. The widespread and proficient use of the internet by millennials has contributed, in general, to their familiarity with online purchasing. Millennials were born between 1980 and 2000. The results of this study lend credence to the conclusions reached by Khare & Rakesh (2011) and Vazquez & Xu (2009), namely, that there is a positive correlation between the attitudes that young people have toward online shopping and their intentions to do so (H1). The advantages of accessing the internet are more readily apparent in the routine activities of those living in industrialized nations(Bylok, 2022; Laroche et al., 2022). The Saudi are known for being early adopters of new technologies and reaping the benefits of these developments. The Internet is becoming more broadly available, more quickly, and more user-friendly as technology progresses(Alfalah, 2021). In addition, the development of new technologies has enabled internet shops to provide improved customer service. These transactions help create a positive picture of the internet and purchasing online.As a consequence of this, consumers' propensity to make purchases online is influenced by their optimistic outlooks. According to the findings of this study, young customers have a favorable attitude toward buying online, which encourages them to make purchases. Because of this, online firms must focus on young customers.
This study indicates that the propensity of individuals to make purchases online can be influenced by severalelements for various reasons. Surprisingly, a study shows that concern about the opinions of others has a detrimental influence on people's propensity to make purchases online. Previous research has shown a significant connection between social motivation and consumer behavior(Christodoulides & Michaelidou, 2010) and Indian adolescent groups. These findings were found in studies conducted by (Christodoulides & Michaelidou, 2010). For example, millennials of legal age in the United States have been made acutely aware of the impacts of the financial crisis that occurred in 2008. Today's kids come from a wide variety of families and cultures, but one thing they all value is living in the "now lives."
Both countries' younger generations share a cultural characteristic: they are less likely to be swayed by the opinions held by their parents' and grandparents' generations (Parment, 2013). In addition, members of Generation Y search for societal validation of "who they are" (W. Hill et al., 2013). Young people make their own decisions about how they want to live and look to their social networks to accept "who they are." In reality, they may be only browsing prominent e-commerce websites to look cool in front of their friends(P. Liu et al., 2021; Noel, 2021). It is less likely that young people will choose to purchase online if their need to be accepted by their friends and their tendency toward frugality are satisfied. Young people are more likely to shop at physical stores. The relevance of "window shopping" and other forms of internet surfing that do not involve purchasing a product is highlighted by this discovery. There haven't been many studies on the social and escapism-related motivations behind internet window shopping. Digital marketers may help by creating online shopping platforms with social cues in mind. For example, they could make it simple to browse, "like" items, share them on social media, and read and write product evaluations. In addition, this research raises questions concerning the durability of the path-to-purchase and the utilization of cookies, the Facebook pixel, and retargeting tools to engage with customers over a more extended period(Bylok, 2022; Lissitsa & Kol, 2021; Pahlevan Sharif &Yeoh, 2018). For example, a youthful customer might just be browsing online stores today, but purchase reminders might convince them to make a purchase tomorrow.
Both hedonistic and utilitarian considerations play a vitalpart in determining the propensity of young people to engage in internet shopping (H3 and H4). The internet has evolved into a familiar venue for individuals to pass their free time and participate in a wide variety of activities, a significant number of which entail the acquisition of goods and services(Masuda et al., 2022; Wang et al., 2021). Our experiences seem to point in the direction of this theory (H3). When people are adolescents, they frequently feel the need for a haven to which they may run away from their problems (W. Hill et al., 2013). Purchasing products and services over the internet instead of physically doing it at a store is referred to as "online shopping." It's possible that doing your shopping online can provide a quick release that will boost your mood. Customers are more likely to follow through with their purchase plans. They may even resort to making spontaneous purchases as a result of the positive emotions that are triggered by internet shopping. Value concerns have a beneficial effect on young adults because they are known to be "careful spenders" and "deal hunters" (Debevec et al., 2013; Phau & Woo, 2008). According to the research on H4, one of the most critical considerations for younger customers with discretionary cash is how much something costs. This was the case even though most of the sample reported having jobs. They can have a smaller spending limit, making it more necessary for them to shop for the most fantastic deal possible. As a result of the facts we obtained concerning Hypotheses 3 and 4, we believe that firms should establish pricing strategies that not only account for the discretionary money of millennials but also excite the generation as a whole. Extending the period over which a discount is offered is one strategy that can be utilized to achieve this goal.
The results of both H5 and H6 Research studies provide credence to the idea that millennial generation members are the most tech-savvy and "digital native" generation basd on the results of hypothesis 5 and 6(Obal & Kunz, 2013). Young people in the United States and Australia are fluent in the "language" of the internet and the digital world, making them ideal clients for businesses that operate only online(Md Husin et al., 2022; Sumarliah et al., 2022). Customers have a greater propensity to purchase if they comprehensively comprehend the subject matter at hand and can quickly and easily discover and access relevant pre-purchase information. In addition, younger people are more likely to use online businesses to conduct research on a product before actually purchasing it. Their research efforts on the internet provide them with access to additional information regarding the product, which ultimately increases the possibility that they will buy it. This result emphasizes the significance of online customer reviews and product descriptions that are truthful, detailed, and extensive.
Future Directions and Limitations
There are some limitation for this study as we have selected less number of respondent for this study. To get started, we looked at young individuals from two different prosperous nations, one of which was Saudi Arabia. It is possible that conducting a study on young adults in wealthy and developing countries will help researchers obtain more nuanced results and widen the scope of future studies. Second, even though our model does account for several psychological, motivational, and behavioral antecedents of online purchase intentions, more variables can be studied. In this study, just the millennial generation was analyzed as a demographic group. By taking a longitudinal approach or employing an experimental design, one may obtain more definitive explanations regarding the observed correlations and the mechanism beneath them. In addition, it has been suggested that future research study the extent to which internet use may be responsible for the influence of social networking sites on customer behavior. There is still cause for optimism regarding the potential for subsequent research to replicate these findings throughout multiple generations. Because it would make it possible to make generational comparisons and conduct in-depth research, this would be beneficial to online marketers. Finally, the individuals who took the poll were the ones who chose every one of the internet retailers. An intriguing new concept to consider is selecting internet retailers based on predetermined criteria (e.g., product category).
Conclusion
The conclusions of this study on millennials are useful not only to researchers but also to people in business. The outcomes of this study indicate that certain millennial features do have an effect on their habits of online buying, leading them to make slight alterations to their routines for social reasons. This study was conducted to investigate this hypothesis. Compared to their parents' generation, millennials are more inclined to purchase online than any other generation because of the favourable perception they have of the convenience it offers. The findings shed light on the significance of value and affordable shopping to the millennial generation as well as the influence that escapism has on purchasing decisions. It should come as no surprise that social incentives had a negative influence on the tendency of millennials to shop online. This finding suggests that while they may engage in some online window shopping, they are not compelled to buy for the sake of looks. The plethora of experience that millennials have with online shopping has ingrained in them the habit of conducting exhaustive research prior to making a purchase. You may increase the likelihood of a customer making a purchase by providing them with information.
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