FOMO Economics: How Social Media Influencers Create Financial Decisions in the Digital Age
FOMO Economics: How Social Media Influencers Create Financial Decisions in the Digital Age
1Yagna Pankaj Vyas, 2Asha B L, 3S. Krithiga Maheswari, 4Krishna M. Lakhani,
5Bindu.A. Baby
1Smt. R. P. Chauhan Arts and Smt. J. K. Shah and Shri K. D. Shah Commerce College, Vyara, Veer Narmad South Gujarat University, Surat, Gujarat.
2School of Management Studies, REVA University, Bengaluru, Karnataka.
3PG & Research Department of Commerce (General), Shri Krishnaswamy College for Women, Anna Nagar, Chennai, Tamilnadu, India
4Smt. R. P. Chauhan Arts and Smt. J. K. Shah and Shri K. D. Shah Commerce College, Vyara, Veer Narmad South Gujarat University, Surat, Gujarat.
5Department of B. Com (Bank Management), Shri Krishnaswamy College for Women, Anna Nagar, Chennai, Tamilnadu, India
Abstract
Social media's quick expansion has changed consumer behavior and financial decision-making processes. Today, influencers have become strong opinion-makers who can sway consumer perceptions, attitudes and buying decisions. This conceptual paper presents the concept of FOMO Economics and explores the impact of FOMO Economics and social comparison on financial decisions in digital environments and how it relates to influencer credibility. The study draws on the theories of behavioral finance, consumer psychology, and digital marketing to create a conceptual framework that depicts the relationship between these factors and financial decisions. When people see that others are buying the product, it fosters a sense of urgency and creates an emotional pressure that makes them feel they need to make the purchase, and when influencers are considered reliable and trustworthy, their recent purchase of the product also helps to build consumer trust and persuasion. When consumers feel that others are purchasing the product, it creates an urgency and an emotional pressure for them to make a purchase; when they see the influencers are considered reliable and trustworthy, then their recent purchase of the product helps to build trust and persuasion. The study brings together psychological and economic aspects to the developing field of digital consumer behavior. It also leads the future way to study the impact of influencers on consumer finance in the modern digital economy for consumers, marketers and policy.
Keywords: FOMO Economics, Influencer Credibility, Social Comparison, Financial Decision-Making, Social Media Influencers, Behavioral Finance