Emerging markets are developing countries whose economies are growing rapidly (Amankwah-Amoah, Boso & Debrah, 2018). The main aim of an emerging market is to advance its economy (Saksiriruthai 2019). Emerging markets are essential for the global economy because they comprise 80% of the global population and 70% of total global gross domestic product (GDP) (Corporate Finance Institute 2021). In general, emerging markets experience rapid growth, high productivity levels and rising standards of living (Amankwah-Amoah et al., 2018). However, there is a high degree of instability and volatility in these markets, which are susceptible to inflation, price changes in commodities and fluctuating currencies and interest rates (Tsagkanos, Siriopoulos & Vartholomatou 2019). Amadeo (2020) inferred that instability and volatility increase the risk of doing business with emerging markets. However, for most foreign investors, higher risks equate to higher returns, which increase the attractiveness of such markets. Globally, the top five emerging markets are Brazil, Russia, India, China and South Africa (BRICS) (Asongu, Akpan & Isihak 2018). However, numerous other emerging markets, especially in Africa, have been identified to provide major opportunities for foreign investors (Amankwah-Amoah, Boso & Debrah 2018).

South Africa is one of the fastest-growing economies on the continent (Asongu et al. 2018). It has high market potential, a well-established democracy, macro-economic stability, a stable business climate and a strategic geographical location, making it attractive to foreign investors and international brands (Asongu et al. 2018; Masipa 2018; Meyer & Habanabakize 2018). A report by the United Nations (World Network 2019) found that foreign direct investment in South Africa increased from US$1.3 billion in 2017 to US$7.1 billion in 2018 (a massive increase of 446%), confirming the attractiveness of South Africa as an emerging market. Despite large disparities between consumer income groups and high levels of unemployment and poverty, South Africa is the second largest e-commerce market in Africa and one of the most developed markets with regard to smartphone penetration and telecommunications infrastructure compared with other emerging African markets (Chetty et al. 2018; Tandwa 2020). South African e-commerce has grown because of an improved telecommunications infrastructure, reduced data costs and improved digital literacy, especially amongst Generation Z consumers and is the focus of this study (Chetty et al. 2018; Tandwa 2020).

Generation Z is a demographic cohort comprising individuals born between 1995 and 2010 (Loveland 2017). Debb, Schaffer and Colson (2020:44) posited that Generation Z consumers–also called ‘digital natives’–were born into a digital age in which internet and mobile technologies were already in place. Generation Z consumers are thus described as the most technologically savvy generation in relation to their predecessors (Loveland 2017; Thomas, Kavya & Monica 2018). The most commonly used technological device amongst Generation Z consumers is the smartphone (Ayuni 2019; Zhitomirsky-Geffet & Blau 2016). Globally, Generation Z consumers value maintaining social connections, as well as interacting and engaging with each other. Alanko (2018) and Duffett (2017) explained that interaction and engagement are key drivers for sharing electronic word-of-mouth (eWOM) reviews–the focus of this study. In South Africa, Generation Z consumers share similar needs and characteristics with the global cohort. However, they are significantly affected by external environmental factors.

In South Africa, many Generation Z consumers are cautious about the brands they purchase (Deloitte 2014; Peyper 2017). These consumers are fickle and often switch to brands that offer them the best value for money (Hanbury 2019; Priporas, Stylos & Fotiadis 2017). They are thus less brand loyal than their predecessors. Ordun (2015) reinforced that these consumers are obsessed with value for money. Despite being known for brand switching, South African Generation Z consumers prefer brands that reflect their values and understand them as consumers (Jenkins 2019). These brands should also be authentic and genuine and should resonate with Generation Z consumers (Hanbury 2019; Munsch 2021). This increases the likelihood that Generation Z consumers will become emotionally attached to such brands and love them (Kowalczyk & Pounders 2016; Mody & Hanks 2018; Skeldon 2019). Many consumers share their love for a brand on social media through eWOM (Bigne et al. 2019; Ruiz-Mafe & Veloutsou 2017).

Generation Z represents one-third of South Africa’s population (Ronnie 2018). Of South Africa’s entire population, approximately half lives in poverty. This implies that a large proportion of Generation Z consumers live in poverty and have limited disposable income (Fourie 2017; Gomo 2019). Not only that, South African Generation Z consumers face high unemployment rates, which further sap disposable income (Jordaan 2019). This implies that Generation Z consumers are selective about the brands they choose to purchase. However, many are brand- and status-conscious and their preference for international brands is higher than for local brands, which supports developed market economies rather than emerging market economies (Cronje, Jacobs & Retief 2016; Pavlić & Vukić 2019). South African Generation Z consumers’ preference for international brands stem from the greater exposure of these brands, in comparison to local brands, on social media sites, which are commonly accessed using smartphones (Ayuni 2019; Cronje et al. 2016). Despite their increased use of smartphones, only 30% South African Generation Z consumers make brand-related purchases online as compared with the global average of 61% (Fourie 2017; Stastista 2018; Thompson 2017). Other factors that affect South African Generation Z consumers’ online purchases include cybercrime, the inability to afford data and an inadequate telecommunications infrastructure in rural areas (Fourie 2017; Killian, Kabanda & Kilian 2017; Malapane 2019). Despite low online purchase statistics, 76% of Generation Z consumers in South Africa read online (eWOM) reviews that can influence their shopping decisions (Thompson 2017).

Over the past 10 years, eWOM has grown in popularity, becoming a significant driver of many purchase decisions (Prasad, Gupta & Totala 2017). Erkan and Evans (2016) attributed the growth in popularity of eWOM to the development of social media, which allow consumers to interact and engage with one another. Through that interaction and engagement, consumers become informed about products and brands through eWOM reviews posted by fellow consumers on social networks (Narangajavana et al. 2017; Shan & King 2015). Generation Z consumers, in particular, prefer to obtain eWOM reviews about brands from social media and influencers (Riivits-Arkonsuo & Leppiman 2015). These consumers appreciate the authenticity and honesty associated with eWOM reviews on social media and rely on this information to inform their online purchase decisions (Cruz 2016). Jenkins (2019) added that authentic, honest brands that are aligned with Generation Z consumers’ values lead to brand love. This fosters customer retention and loyalty, which for many brands is the most highly desired outcome (Huang 2017; Islam & Rahman 2016; Skeldon 2019). To investigate the influence of eWOM on consumer decision-making, Sussman and Seigal (2003) developed the information adoption model (IAM).

The IAM is used in this study to investigate the influence of eWOM on brand love. Many prior studies, including those of Charo et al. (2015) and Zhu, Chang and Luo (2016), have explored the impact of the IAM on consumer decision-making by adding behavioural constructs such as purchase intention and purchase decision. However, few have determined the effect of the IAM constructs on brand-specific consumer behaviour. Understanding the influence of IAM on brand-specific behaviour is crucial in relation to Generation Z consumers, who show little loyalty towards brands, yet display high levels of brand love (Bıçakcıoğlu, İpek & Bayraktaroğlu 2018; Ordun 2015). Because of the reliance of these consumers on social media and eWOM to obtain brand-related information, it is important to identify whether eWOM adoption affects brand love. This is because brand love drives many purchase decisions of Generation Z consumers (Ordun 2015). A report by Euromonitor (2018) predicted that Generation Z consumers will become the largest online consumer market. However, in South Africa, prior research on this market segment is scant.

The research problem is threefold: (1) There is a lack of research on Generation Z consumers in emerging markets, (2) Generation Z consumers in South Africa often switch brands and (3) South African Generation Z consumers prefer to accept information through eWOM; however, marketers are unaware of the full extent of the influence of eWOM on Generation Z consumers.

Most prior research on Generation Z consumers, eWOM and brand love has been conducted in developed markets, which differ significantly from those of emerging markets (Mehta & Dixit 2016). An in-depth understanding of consumers in emerging markets is needed, given the attractiveness of these markets for international trade, including their booming economies, high growth potential and increasing demand for products (Aregbeshola 2018). Currently, most market research is focussed on millennials; however, Duffett (2020) stated that Generation Z consumers have entered the workforce and have increasing disposable income to purchase brands. Hodgson (2018) added that the largest consumer cohort in emerging markets is projected to be Generation Z consumers; however, research in this field is scant, particularly South Africa. South African Generation Z consumers are expected to become the largest online market by 2030 because of their entrepreneurial predisposition (Diaz 2019; Stats SA 2019b). South Africa is classified as an emerging market as it has the fastest-growing economy and the second-largest e-commerce market in Africa (Asongu et al. 2018; Masekesa 2020). E-commerce in South Africa surpasses most other emerging markets in Africa, with online sales accounting for 50% of total sales nationally, making it an attractive market for international trade and brands (Kemp 2019; Mou et al. 2017). Kemp (2019) noticed that one of the most popular e-commerce activities is searching for information, carried out by 88% of South African consumers.

South Africans in general, tend to use social media as a means of obtaining information (Kemp 2019). The popularity of social media in South Africa has grown rapidly over the last 5 years because of increasing smartphone purchases, an improved telecommunications infrastructure and better digital literacy skills, particularly amongst Generation Z consumers (Chetty et al. 2018;Poushter, Bishop & Chwe 2018;Tandwa 2020). These consumers accept and adopt eWOM reviews of brands by fellow consumers and influencers, as they perceive this content to be more credible than marketer-generated advertisements and content (Riivits-Arkonsuo & Leppiman 2015). Furthermore, many Generation Z consumers ‘follow’ and ‘like’ brand-specific social media pages that they feel are genuine and authentic, which thereby become drivers of brand love (Hanbury 2019; Munsch 2021). However, despite the prevalence of brand love amongst Generation Z consumers, many of them switch between brands that offer the best value for money (Priporas et al. 2017). Brand switching presents challenges for marketers, including low customer retention rates, negative effect on customer satisfaction and brand love and lack of brand loyalty (Bıçakcıoğlu et al. 2018; Rizwan et al. 2013). Brand switching is more prevalent in South Africa, where consumers are faced with the threat of unemployment, which leads to less disposable income. It is therefore more challenging for marketers to retain Generation Z consumers (Stats SA 2019a; World Bank 2019). To prevent such brand switching, marketers should strive to establish brand love through eWOM as brand love drives Generation Z consumers’ brand-related purchases and brand loyalty (Bıçakcıoğlu et al. 2018; Verma 2021).

Numerous studies have examined eWOM through the prism of the IAM (Erkan & Evans 2018; Hussain et al. 2016; Phung et al. 2020). These studies demonstrated that source credibility, argument quality and information usefulness are positively associated with eWOM adoption. Charo et al. (2015), Erkan and Evans (2016) and Rahmi, Sekarasih and Sjabadhyni (2016) have extended the IAM by including other behavioural outcomes, such as purchase intention and purchase decision. However, very few studies have focussed on brand-specific behavioural outcomes such as brand love. A study of the influence of eWOM on brand-specific outcomes such as brand love amongst South African Generation Z consumers would provide useful insights for marketers, allowing them to effectively retain these customers and prevent brand switching.

The aim of this study is to add to the limited body of literature on Generation Z consumers in South Africa and to apprehend important drivers of eWOM adoption and brand love using the IAM.

The theoretical framework outlines the key concepts and constructs to be investigated in this study. These concepts and constructs, which identify the determinants of eWOM using the IAM, have been adopted from Erkan and Evans (2016), Shamhuyenhanzva et al. (2016) and Sussman and Seigal (2003). These studies have demonstrated that constructs of the IAM–source credibility, argument quality, information usefulness, information adoption–are determinants of eWOM; they have therefore been used in this study. Other studies, such as those of Bıçakcıoğlu et al. (2018) and Vernuccio et al. (2015), have discovered that positive eWOM is an outcome of brand love, which implies that consumers must first love the brand before they generate positive eWOM. However, the present study investigates the opposite view–that is, whether eWOM influences brand love. The motivation behind this aim is the highly interactive nature of the internet, which allows consumers to generate their own content (Zahra, Qayyum & Rashid 2019). This content is often generated by consumers and therefore outside the control of the brand and hence, it may influence consumers’ love for the brand (Bhandari, Rodgers & Pan 2021). Brands should therefore identify which of the IAM constructs affect eWOM and use these constructs to positively influence eWOM to increase brand love amongst consumers. The proposed relationship between the constructs is presented in Figure 1.

This study followed a positivist approach to obtain objective, quantifiable and observable data. Through a deductive approach, this study examined the influence of eWOM adoption on brand love. A descriptive, quantitative research design was selected to gain insight into the influence of the four IAM constructs on brand love. These constructs have been previously investigated in several empirical studies, including those by Charo et al. (2015), Erkan and Evans (2016) and Rahmi et al. (2016), demonstrating that IAM influences behavioural outcomes such as purchase intention and purchase decision. However, the influence on brand love for Generation Z consumers in South Africa is yet to be discovered. Because there are numerous quantitative studies on IAM and eWOM, a descriptive rather than exploratory approach was deemed more suitable for this study, thus it used already developed scales. Hair et al. (2015) stated that this type of research design is selected to gather large amounts of data to establish key patterns and statistical relationships. This ensures that the views of the population at large are accurately reflected.

Overall, the results indicated that three of the four hypotheses could be accepted. Source credibility was shown to have an insignificant effect on information usefulness (β = 0.220, p = 0.018). This finding disproved most prior studies, including those of Erkan and Evans (2016) and O’Reilly et al. (2016), who demonstrated that source credibility was essential to information usefulness. Conversely, argument quality was proven to have a positive, significant influence on information usefulness (β = 0.530, p = 0.01). This finding was in line with those of Charo et al. (2015) and Hussain et al. (2016), who stated that consumers who perceive eWOM to be of a higher quality find it more useful and relevant to their needs.

It is evident from the results that South African Generation Z consumers’ do not perceive the credibility of the source as being important to their perception of the usefulness of the information obtained from eWOM reviews. This suggests that the knowledge, expertise, reliability and experience of the source does not influence Generation Z consumers’ perception of the information usefulness of a brand. Therefore, marketers who target Generation Z consumers in South Africa should not concern themselves with the credibility of the source used to market a brand, but rather with the type of information shared. Information perceived as complete, comprehensive, correct, accurate and reliable increased argument quality, as demonstrated by the findings.

Higher perceived argument quality of eWOM reviews leads to the perception that the information is useful. Information perceived as useful is more likely to be adopted (Erkan & Evans 2016; Hussain et al. 2016; Moran & Muzellec 2017). The results of this study confirm that relationship, as information usefulness had a strong, significant, positive relationship with eWOM adoption (β = 0.740, p = 0.01). Information is perceived as useful if eWOM reviews are valuable, informative and helpful. Lastly, it was discovered that eWOM adoption had a significant, positive relationship with brand love; however, the relationship was weak (β = 0.270, p = 0.01). Brand love was determined by whether the brand made respondents feel good, awesome and happy. It was evident from the findings of this study that eWOM adoption had a weak effect on whether South African Generation Z consumers loved their brands. This finding presents new insights into the influence of eWOM on brand love, as prior studies on the topic are scant.

The study’s findings indicate that, overall, eWOM adoption influences South African Generation Z consumers, especially if there is high perceived argument quality, which increases the perceived usefulness of the information and thus the adoption of eWOM. Marketers can therefore harness the power of eWOM and devise strategies to target Generation Z consumers in South Africa more effectively. Recommended practices are listed here:

Despite the weak relationship between eWOM adoption and brand love, the following is recommended:

As with all research, this study has limitations. Firstly, the sample was limited to one city in South Africa and so, it is not representative of all South Africans. Future research should consider geographic areas in South Africa that have the second- and third-highest internet usage rates in the country. Secondly, because of the quantitative nature of the study, gaining an in-depth understanding of why eWOM has a limited effect on brand love could not be achieved. Future studies could use a more qualitative approach to build on the existing study and so gain a deeper understanding of Generation Z consumers’ perceptions of eWOM and brand love. Thirdly, this study focussed on brand love in general and respondents were able to select any brand. Future studies of brand love could be applied to specific industries such as the fashion and beauty industry, where brand love is more apparent.

This study investigated the influence of eWOM on brand love amongst Generation Z consumers in South Africa. It was discovered that Generation Z consumers adopt information conveyed through eWOM reviews provided there is high perceived argument quality. Despite their willingness to adopt the eWOM reviews, the findings revealed a positive yet weak relationship between eWOM and brand love. Marketers could use the results obtained from this study to encourage eWOM by using influencer marketing. Influencer marketing can enhance perceived argument quality, information usefulness and information adoption of eWOM, which will, to some extent, positively influence brand love amongst Generation Z consumers in South Africa.