Management Journals | Marketing Management

The IUP Journal of Marketing Management

Influence and Mediating Effects of Freebies on Purchase Intention of Gen Z Indians at Gourmet E-Stores: A Study Using S-O-R Model

Article Details

Pub. Date	: Nov, 2023
Product Name	: The IUP Journal of Marketing Management
Product Type	: Article
Product Code	: IJMM011123
Author Name	: Samrat Bharadwaj
Availability	: YES
Subject/Domain	: Marketing
Download Format	: PDF Format
No. of Pages	: 35

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Abstract

Using Stimulus-Organism-Response (S-O-R) model, the study examines whether two environmental stimuli, 'freebie type' and 'focal item price', during a gourmet food estore sales promotion campaign, influence Generation Z Indians' online purchase intentions, with consumer confidence and perceived risk as mediators. Intercept data was collected from 392 subjects in eight Indian metropolises, using a cross-sectional survey design and qualitative study. The hypotheses were tested using structural equation modeling and associated tests. For qualitative analysis, inductive content analysis was used. The study reveals that the price of the focal item and the type of freebie influence customer confidence and perceived risk, which in turn influences consumers' online purchase intention. The results show that utilitarian freebies are the most popular and identify important associated cognitive dissonance elements. Being one of the first such studies, it reveals consumer behavior during food marketing campaigns and informs e-gourmet food retailers of the crucial aspects influencing Gen Z's purchasing intentions. Additionally, it recommends strategies to increase consumer confidence and reduce perceived risk, which would aid in resolving cognitive dissonance.

Introduction

The retail sector in the 21st Century is evolving in two ways: marketing strategies and consumer groups (Blesch, 2015). Prior research has shown that many innovative marketing activities give different retail industry participants a competitive advantage. Marketers use monetary and non-monetary sales promotion strategies such as discounts, price bundles, and coupons to increase customer demand quickly. A majority of marketing funds are spent on sales promotion (van Heerde and Neslin, 2017). Studies have shown that sales promotions have a positive impact on purchasing behavior (Ramanathan and Dhar, 2010; and Laran and Tsiros, 2013).