Impact of Social Media User Generated Content (UGC) on Online Purchase Intention: with Special Reference to Retail Fashion Industry, in Sri Lanka

Abstract

Online purchasing has become a pivotal aspect of the global market. In the Sri Lankan retail fashion industry, there has been an increase in online sales values. However, there has been a noticeable decline in the rate of sales growth over recent years, and this trend is projected to continue. Concurrently, the use of Facebook, Instagram, and content creation has surged, with user-generated content (UGC) being employed to share customer experiences. This type of content significantly influences customer purchasing decisions. Given the limited literature on UGC as a distinct factor, it is crucial to investigate its impact on online purchase intention, specifically within the retail fashion industry in Sri Lanka. A research model was developed based on various studies, and a quantitative research design and deductive approach were employed for this investigation. Data were collected using a structured questionnaire from 220 respondents, consisting of both female and male Facebook and/or Instagram users in the Western Province of Sri Lanka. A non-probability, convenience sampling method was used. Data presentation and analysis were conducted using descriptive analysis, correlation, and regression analysis, with the Statistical Package for the Social Sciences (SPSS) serving as the analytical tool. The findings indicate a positive and significant impact of perceived credibility, perceived usefulness, and perceived risk on online purchase intention. This study highlights the effect of social media UGC on online purchase intention and underscores the importance of enhancing social media strategies and effectively managing UGC as a crucial tool.