The influence of personalized marketing on Gen Z's purchasing decisions in Ho Chi Minh City

Abstract

Competitive markets around the globe are becoming more and more fierce, requiring businesses to take different approaches to attract potential customers. Among those, personalized marketing has also become a very useful approach, especially for Gen Z - a generation of difference. There have been studies related to this topic for a long time, but there is a lack of recent updates. Specifically, in Vietnam, there are still relatively few in-depth studies on this subject. This study examines how personalized Marketing affects consumers ' attitudes when experiencing, thereby influencing their purchasing decisions. Include factors such as: receiving useful information, entertaining experiences and privacy concerns. Data for analysis in the study were collected from 300 customers of Gen Z (aged 16-25 years), which took place in Ho Chi Minh City. Based on the theory of planned behavior and the theory of personalized cognition, through quantitative research methods using survey questionnaires. This shows the user's perception of Personalized Marketing and measures how strongly and weakly the factors impact purchasing decisions. The study uses SmartPLS software to analyze data from which the testing scale includes consistent reliability, aggregate reliability, convergence validation and differential validation, thereby generating a new model after the testing. Evaluate the impact of factors through structural model testing using corrective R-square coefficients, f-square impact coefficients, and multi-linear plurality testing. The results show that Personalized Marketing has helped customers receive information quickly and more usefully and provides entertainment when experiencing. These two factors play an important role in positively influencing purchase decisions. In addition, privacy concerns inadvertently created by personalization also negatively affect consumer attitudes and purchases. However, this impact is not great in the study. This may be due to limitations in conducting small-scale surveys, being limited by age, etc., so it has not been able to access the scale of participants