International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue III, March 2022 | ISSN 2454–6186

Social Commerce Impact on Consumers’ Purchase Intention among Generation-Z Consumers in Sri Lanka

A.K.D.N. Dilshani, S.M.N. Praveeni, W.D.M. Wanigasekara
Department of Business Management, Faculty of Business StudiessWayamba University of Sri Lanka

Abstract: The rapid development of web 2.0, as well as the growing use of social media networks by individuals and businesses, has resulted in a remarkable shift from e-commerce to social commerce. It is very much noticeable that Generation Z is the most active Generation, in the usage of social media platforms in a high-intensity manner. Accordingly, the present study investigates the impact of social commerce on consumers’ purchase intention specially referring to Generation Z consumers in Sri Lanka. The motivation behind this study is due to the paucity of studies in such discipline in the Sri Lankan context. The present study is associated with four independent variables as social commerce constructs, perceived usefulness, perceived ease of use, and perceived risk. The nature of the present study is quantitative. The researchers follows the purposive sampling technique and survey strategy, under that questionnaire is used to collect data from the 360 respondents who are using social media to purchase products among the Generation of Z in Sri Lanka. Data was analyzed using univariate and multivariate techniques. Based on the results of the multiple regression analysis, social commerce constructs, perceived usefulness, perceived ease of use have significant and positive impacts while perceived risk has a significant and negative impact on purchase intention among Generation Z consumers in Sri Lanka. Thus, it was determined that social commerce has an impact on Generation Z consumers’ purchase intention in Sri Lanka. As a result, marketers can carefully plan and execute their marketing programs and policies by focusing on Generation Z consumers to grab the maximum benefits from social commerce.

Keywords- Social Commerce, Purchase Intention, Survey Study, Generation- Z Consumers, Sri Lanka

I. INTRODUCTION

With the rapid development of Web 2.0, online shopping has emerged as an essential component of modern life (Fagerstrom & Ghinea, 2010). In general, social commerce enables the delivery of e-commerce activities and transactions via the social media environment, primarily via social networks and Web 2.0 software. As a result, social commerce may be seen as a subset of e-commerce that includes the use of social media to assist e-commerce transactions and activities. In addition, social commerce refers to the use of Web 2.0 apps to enable people’s interactions in an online context where the user’s participation may aid in the purchase of items and services (Liang & Turban, 2011). Even social media is the future of commerce since it provides an easy way to connect millions of people to purchase and sell items in a fraction of a second (Wickramasinghe, 2020). According to that, social commerce is the latest trend of commerce not only in Sri Lanka but also in globe now. Therefore, today, social commerce is replacing e-commerce by creating a huge opportunity globally. When it comes to social media usage in Sri Lanka in the year 2020, 10.1 million of the population has internet access, out of them, 98% of internet users have access to social media and the internet through their mobiles. Today 6.4million active social media users in Sri Lanka and active social media users have increased by 8.3% between 2019 and 2020. The social media penetration ratio is stands at 30% now. Furthermore, Facebook.com & Youtube.com as social media networks are in the 2nd and 4th places among the most visited websites in Sri Lanka (Digital Global Overview, 2020). In Sri Lanka, average internet users check social media notifications at least seven times per hour, with users in the 19-24 age group checking social media notifications eight times per hour. And, also 26% of social media users report they have actually purchased a product or service more than once after seeing an advertisement on social media, with the majority of them being in the 19-24 age category and the top two brands trending in social media are Daraz and Dialog in Sri Lanka now (APIDM, 2020).