The Impact of Social Networking Sites on Luxury Vehicles Purchase Decision Process in Gulf Cooperation Council Countries

Abstract

Social networking sites are becoming an essential part of consumer daily activities, with profound changes in purchasing behavior compared to traditional buying formats. This study investigates the possible impact of social networking sites on the purchasing decision process concerning luxury vehicles in one of the most important markets for such products, the countries of the Gulf Cooperation Council (GCC). The study also investigates the possible impact of relative demographics on the direct relationship between social networking sites (independent variable) and the purchase decision process (dependent variable) of luxury vehicles. In order to achieve this aim, a descriptive analytical methodology is utilized with quantitative survey strategy, with a five-point Likert-type questionnaire. Of 1,500 personally submitted questionnaires distributed over a non-probability quota sample to the main showrooms and dealerships in the GCC, 1,257 were retrieved (a response rate of 83.8%); after the filtration and screening process, 1,224 valid questionnaire forms were statistically analyzed. The results indicate that social networking sites have a significant positive direct impact on the purchasing decision process of luxury vehicles in the examined population, with the highest impact being for the first two stages of the process (need recognition and information search). As for the moderation effect of relative demographics, only income and time daily time spent on social media had positive significant moderating effects on the direct relationship between social networking sites and purchasing decision process, while education had a negative significant effect. The results also indicated particular roles of certain social networking sites, like YouTube, and the fact that females prefer Snapchat over other digital platforms. Discussion, implications, and future research recommendation are provided based on the results of the analyses.

Keywords:

• Social media
• consumer behavior
• demographic moderation
• durable goods
• automotive industry
• GCC
• need recognition
• information search
• evaluation of alternative
• purchase decision