THE IMPACT OF PERCEIVED CREDIBILITY OF INSTAGRAM USER GENERATED CONTENTS TOWARDS PURCHASE INTENTION WITH THE MEDIATING ROLE OF CUSTOMER ATTITUDE: SPECIAL REFERENCE TO COSMETIC INDUSTRY IN WESTERN PROVINCE OF SRI LANKA

Abstract

The cosmetic industry is a versatile and rapidly growing sector that encompasses the creation, manufacturing, advertisement, and sale of cosmetic products. Therefore, it can be concluded that the cosmetic industry is ever-evolving, both globally and in Sri Lanka. The purpose of this study is to identify the impact of perceived credibility of Instagram user-generated content on purchase intention, with customer attitude as the mediating variable. The influence of the perceived credibility of Instagram user-generated content on purchase intention, incorporating customer attitude as a mediating factor, represents an empirical gap across different market contexts. This study investigated the impact of perceived credibility on purchase intention through three dimensions: attractiveness, expertise, and trustworthiness, each containing five indicators. This study was conducted as a quantitative method for deductive investigation. The sample was limited to 384 respondents, focusing solely on the cosmetic industry within the Western Province of Sri Lanka; therefore, the findings are unlikely to have broader implications for other regions, countries, or industries. A cross-sectional survey was conducted using a structured questionnaire administered through convenience sampling. Questionnaires were distributed to consumers of cosmetics who use Instagram in the Western Province of Sri Lanka. Data were analyzed using the Statistical Package for Social Sciences (SPSS) version 26. The findings indicate that the three main dimensions of perceived credibility have a significantly positive impact on purchase intention. Furthermore, customer attitude partially mediated the relationship between perceived credibility and purchase intention. Based on these findings, it is recommended to ensure the authenticity and quality of user-generated content, actively engage with the audience, and consistently maintain a reliable brand image. Additionally, future research could expand beyond the cosmetic industry, extend the geographical scope beyond Western Province, and incorporate other social media platforms, such as Facebook, TikTok, and YouTube, for comparative analysis.