Fear of Missing Out (FoMO) and Recommendation Algorithms: Analyzing their Impact on Repurchase Intentions in Online Marketplaces

Abstract

The rapid growth of e-commerce has intensified consumers’ Fear of Missing Out (FoMO), influencing their repurchase intentions. This study aims to examine the impact of online FoMO on repurchase intentions in marketplaces, emphasizing the role of personalized recommendations and promotional strategies. A quantitative approach was employed, collecting data from 300 respondents who actively shop on online marketplaces. The study utilized Structural Equation Modelling (SEM) to analyze the relationships between FoMO, trust, perceived value, and repurchase intentions. The findings reveal that FoMO significantly influences repurchase intentions, both directly and indirectly, through trust and perceived value. Additionally, personalized recommendations and time-limited promotions amplify FoMO, further strengthening consumers’ intention to repurchase. These results highlight the necessity for e-commerce platforms to strategically implement AI-driven personalization and gamification elements to optimize customer retention. The study contributes theoretical insights by integrating psychological and technological perspectives in understanding consumer behavior in digital marketplaces. The originality of this research lies in its empirical validation of the FoMO- repurchase intention relationship using SEM, offering novel insights into how marketplace features shape consumer decision-making. Practically, the findings provide actionable strategies for businesses to enhance customer engagement and retention through behavioral-driven marketing approaches.