Abstract:
The rise of digital communication, particularly on social media, has led to a
significant upwelling movement in user-generated content (UGC), impacting
businesses' performance. The pace at which the fast-food industry is changing
has been brisk and shows no signs of stopping while being extremely competitive
and altering consumption patterns. However, the industry is experiencing
substantial shifts in brand-switching habits and unequal buying patterns.
Nevertheless, consumers seek greater value, suitable, and less risky options,
which tend to rely more on the recommendations of others. Thus this study aims
to understand the influence of UGC on Facebook on online purchase intention in
the franchise fast food industry in the Colombo district, focusing on the reliability
of others' references over advertisements. Based on the information adoption
model and homophily theory, the vconceptualization of the study was developed.
This followed a positivist research philosophy and descriptive design. This
quantitative survey was conducted using a self-administered questionnaire
concerning Facebook users in the Colombo district. 324 usable responses were
collected under the purposive sampling technique and analyzed by using the
multiple regression method of SPSS Statistics 21 software. The findings of the
study revealed that information quality and perceived homophily significantly
impact on online purchase intention while perceived usefulness and perceived
credibility do not significantly impact online purchase intention. This study offers
valuable insights for digital marketers, fast-food industry players, and aspiring
entrepreneurs. In a fast-paced world where convenience matters, the research
underscores the practical significance of user-generated franchise fast food
content on Facebook in influencing online purchase decisions. Organizations can
use content to understand customer preferences, enabling strategic decision
making and enhancing online presence. This knowledge can be leveraged to
develop tactics that align with customer values and preferences.
