THE INFLUENCE OF USER GENERATED CONTENT (UGC) FACTORS TOWARDS THE CONTENT UTILIZATION FOR CUSTOMER PURCHASE DECISIONS ON INSTAGRAM AMONG GENERATION Z IN FASHION ONLINE SHOPPING ENVIRONMENTS

• Main Author: Rahma Aurellia, Almira
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49479
• Institution: Institut Teknologi Bandung

Referring to the outstanding growth of Instagram, it is considered to be the most effective social media to reach customers especially in Indonesia since according to the Country Director of Instagram in Indonesia, Sri Widowati, Indonesia is the social media's biggest market in the Asia Pacific Region with 45 million Instagram users in 2018. As a photosharing media and due to the openness characteristic of Web 2.0, Instagram contributed on making content marketing getting the highlight including user generated content or commonly said as UGC, a content that is created and consumed by the consumers. UGC is seen as essential for customers in influencing their online purchase decision especially for fashion products. However, there are still limited studies that discuss UGC and its utilization by consumers for purchase decisions in the fashion industry whereas the fashion industry is considered as a high involvement product. Therefore, this research conducted to explore and expand previous literatures of UGC factors that influence the customers utilization towards UGC itself especially for fashion product purchase decisions focusing on Generation Z. There are 278 respondents as the sample size and the data gathered was analyzed using SEM-PLS approach and utilizing SmartPLS application in order to find the causal relationship among variables. The result of SEM-PLS analysis shows that it has succeeded to measure the UGC utilization based on four factors which are perceived credibility, perceived risk-reduction, perceived usefulness, and perceived homophily, through attitude. At the end, the analysis is expected to provide recommendations for fashion product marketers that should be considered which will be beneficial both for the customers and the marketersitself.