Advances in Consumer Research
Issue 4 : 4279-4291
Research Article
Digital Nostalgia Marketing: How Past-Centric Ads Affect Gen Z Consumption
 ,
1
Assistant Professor, IPS Academy, Institute of Business Management and Research, Indore (M.P.), India
2
Associate Professor, IPS Academy, Institute of Business Management and Research, Indore (M.P.), India
Received
Aug. 1, 2025
Revised
Aug. 15, 2025
Accepted
Sept. 4, 2025
Published
Sept. 22, 2025
Abstract

In the digital age, nostalgia has emerged as a compelling marketing strategy, particularly in influencing Generation Z—a cohort characterized by digital nativity and cultural fragmentation. This study explores how past-centric advertisements leverage emotional recall to drive consumer engagement and purchase intentions among Gen Z. Through a mixed-method approach incorporating content analysis of nostalgic digital ads and a structured survey of 386 Gen Z respondents across urban India, the research uncovers that digital nostalgia significantly influences brand affinity, trust, and impulsive buying. The findings highlight the role of nostalgia intensity, cultural familiarity, and brand-story alignment in shaping consumer behavior. The study contributes to both theory and practice by offering a psychological-behavioral model of nostalgia consumption and guiding brands on crafting emotionally resonant campaigns. The paper concludes with limitations and suggestions for future research in emerging markets and evolving media landscapes.

Keywords
INTRODUCTION

Background

In recent years, nostalgia has evolved from a sentimental emotion to a powerful strategic tool in digital marketing. Originally defined as a longing for the past, nostalgia today is actively leveraged by marketers to evoke emotional responses that enhance brand engagement and consumer loyalty. What was once a private feeling has become a public, shareable, and monetizable emotion in the age of social media and on-demand content. As digital platforms increasingly embrace retro aesthetics, past-centric soundtracks, vintage visuals, and classic pop culture references, the marketing landscape has witnessed the emergence of Digital Nostalgia Marketing (DNM).

 

DNM utilizes nostalgic cues to reconnect consumers with their perceived “good old days,” often creating emotional bridges between past and present. This approach has gained remarkable traction among Generation Z (Gen Z) consumers—those born between 1997 and 2012—who paradoxically crave a past they never lived. Despite being digital natives, Gen Z is exhibiting a strong affinity for retro fashion, early 2000s video games, vinyl records, and 90s sitcoms. This paradox of “new nostalgia” presents a compelling psychological landscape for marketers.

 

The Gen Z Paradox

Unlike older generations who experienced the eras they reminisce about, Gen Z’s relationship with nostalgia is vicarious. Their nostalgic experiences are shaped by second-hand exposure through YouTube videos, Netflix reboots, curated Instagram aesthetics, and TikTok throwback trends. Consequently, their nostalgia is not rooted in lived experiences but in media-mediated representations of the past. This makes them uniquely susceptible to retro-themed advertising that invokes familiarity, security, and identity reinforcement in a fast-changing digital environment.

 

Moreover, Gen Z consumers are known for being skeptical, socially aware, and emotionally driven. They respond more to authenticity and relatability than to traditional marketing tactics. Thus, digital nostalgia becomes a clever tool to bypass commercial resistance by framing products within emotionally resonant contexts. Campaigns like Coca-Cola's "Real Magic" retro ads, Levi’s 90s throwbacks, and Nike’s revival of classic sneaker lines are examples of successful DNM strategies that tap into this sentimentality.

 

Problem Statement

Despite the growing adoption of nostalgia in digital campaigns, empirical research on its psychological and behavioral impact on Gen Z consumers remains limited. While previous studies have examined nostalgia’s influence on older demographics (Boomers and Millennials), few have analyzed how Gen Z—who never directly experienced the referenced eras—reacts to nostalgic stimuli in advertising. This study fills this gap by exploring how digital nostalgia influences Gen Z’s perceptions, emotions, and consumption behavior.

 

Research Questions

  • To address the problem stated above, the research seeks to answer the following key questions:
  • How do digital nostalgic advertisements affect the emotional engagement of Gen Z?
  • What is the role of nostalgia intensity and media familiarity in shaping Gen Z’s purchase intentions?
  • How does Gen Z differentiate between authentic nostalgia and manufactured or forced nostalgia in advertising?

 

What are the key mediators or moderators (e.g., brand trust, personal relevance) in the nostalgia-consumption relationship?

 

Objectives of the Study

The primary objectives of this study are:

  • To assess the emotional and psychological impact of nostalgia-based digital ads on Gen Z consumers.
  • To identify the most influential nostalgic elements (e.g., music, design, language) in digital campaigns.
  • To analyze how nostalgia interacts with brand perception and trust among Gen Z.
  • To offer a conceptual model explaining the nostalgia-driven consumption pathway for Gen Z.

 

Significance of the Study

This study holds significance both academically and practically. From a theoretical perspective, it contributes to the growing body of literature on nostalgia marketing by introducing a Gen Z-specific framework, extending beyond traditional nostalgia models. From a managerial standpoint, it helps marketers, content creators, and branding agencies design more effective digital campaigns that are emotionally intelligent and culturally sensitive. In a world saturated with ads, nostalgia may offer a unique opportunity to cut through the noise.

 

Structure of the Paper

This paper is structured as follows:

  • Section 2 reviews existing literature on nostalgia marketing and Gen Z consumer behavior.
  • Section 3 identifies the research gap and articulates the study objectives.
  • Section 4 outlines the theoretical framework based on affective response theory and brand relationship models.
  • Section 5 presents the research methodology, including design, sample, and tools used.
  • Section 6 analyzes the data through charts and tables to derive insights.
  • Section 7 discusses the implications of findings.
  • Section 8 Conclusion and future directions.
LITERATURE REVIEW

Evolution of Nostalgia in Marketing

The term nostalgia originated from the Greek words nostos (return home) and algos (pain), originally describing homesickness (Davis, 1979). In consumer research, nostalgia has been framed as a bittersweet emotion that influences affective and cognitive decision-making (Holbrook & Schindler, 1991). Nostalgia-based advertising appeals to consumers' memories, producing emotional resonance and increased brand affinity (Stern, 1992). Traditionally applied to Baby Boomers and Gen X, nostalgia marketing was intended to revive shared cultural memories that generated trust and familiarity with a brand (Pascal, Sprott & Muehling, 2002).

 

In the digital age, nostalgia has been remediated and digitized through platforms like YouTube, Instagram, and TikTok. These platforms make retro content easily accessible, curating nostalgia not through personal memory but through aesthetic references, music, and visual motifs (Guffey, 2006). Brands today recreate vintage packaging, re-release retro product lines, and adopt old-school storytelling to foster connection with modern consumers.

 

Nostalgia and Consumer Behavior

Research shows that nostalgic advertisements elicit stronger emotional responses compared to non-nostalgic ones, resulting in higher purchase intentions (Muehling & Sprott, 2004). Emotional appeal influences cognitive processing, enhancing brand recall, loyalty, and trust (Pearsall & Ashley, 2019). Affective responses to nostalgic cues lead consumers to interpret brands as familiar and comforting, especially in uncertain times (Marchegiani & Phau, 2013).

 

According to Wildschut et al. (2006), nostalgia enhances psychological well-being by increasing social connectedness and existential meaning, which may influence consumption behavior as a coping mechanism. Thus, nostalgia acts not only as a promotional device but also as an emotional anchor during identity development—a critical aspect for Gen Z.

 

Generation Z: Digital Natives with a Retro Soul

Generation Z is often referred to as digital natives, having grown up with smartphones, social media, and algorithmically curated content. Despite their technological fluency, Gen Z has demonstrated strong emotional and cultural ties to the aesthetics of the past (Turner, 2020). Studies suggest that Gen Z's affinity for retro media is not based on lived experience but a stylized appreciation of the past, constructed through visual storytelling and communal nostalgia (Alfasi & Weiss, 2022).

 

Brands like Polaroid, Nintendo, and MTV have tapped into this trend, reintroducing older products and themes with a contemporary twist. Social media platforms reinforce these behaviors by promoting vintage filters, throwback hashtags, and trend cycles that glamorize the past (Hein, 2021).

 

Emotional Branding and Nostalgia

Emotional branding, as defined by Gobé (2001), aims to create a relationship between the consumer and the brand that transcends transactional value. Nostalgia serves as a bridge between the emotional self and the marketed object, especially when consumers face digital burnout or content saturation. When brands invoke shared memories or symbolic pasts, they foster deeper emotional connections and parasocial relationships with consumers (Russell & Levy, 2012).

 

Past-centric ads use familiar cultural cues—such as classic jingles, pixelated graphics, VHS aesthetics, or retro logos—to trigger emotional recall (Merchant & Rose, 2013). When done authentically, this strategy enhances perceived brand sincerity and emotional authenticity (Fournier, 1998).

 

Authentic vs. Manufactured Nostalgia

A growing area of inquiry involves perceived authenticity of nostalgic content. According to Zhao et al. (2021), consumers are more receptive to nostalgic advertising when the brand’s retro messaging aligns with its historical brand identity. For example, a nostalgic ad from Coca-Cola or Nike is seen as more genuine than a start-up adopting random vintage styles. Consumers today are highly sensitive to "aesthetic exploitation"—when nostalgia is used in a way that feels forced, opportunistic, or inauthentic (Brown, 2001).

 

This has particular relevance for Gen Z, who are known for their critical digital literacy. They can distinguish between emotionally manipulative advertising and storytelling that feels culturally or personally relevant (Southgate, 2022).

 

Gaps in Existing Research

While extensive work has been conducted on nostalgia and consumer psychology, few studies focus explicitly on Gen Z's unique consumption patterns within the digital nostalgia space. Moreover, most prior research relies on Millennial or Boomer samples and does not account for media-mediated nostalgia—a concept highly relevant in the age of TikTok and AI-generated retro filters. There is also a limited understanding of how different nostalgic elements (e.g., audio vs. visual) differentially impact emotional and behavioral responses among Gen Z.

 

Research Gap and Objectives

Identified Research Gap

Despite the growing prevalence of digital nostalgia in advertising, existing literature remains primarily focused on older generations, such as Baby Boomers and Millennials, who experienced the eras referenced in nostalgic content. However, Generation Z—who did not directly experience the 80s, 90s, or early 2000s—displays an unexpected affinity for retro aesthetics and past-centric themes.

 

While some studies have recognized Gen Z’s engagement with nostalgic content (Alfasi & Weiss, 2022; Turner, 2020), there is a lack of empirical analysis on how nostalgia influences their consumer behavior, especially in the context of digital media. Additionally, no unified framework currently explains the emotional, cognitive, and behavioral pathways through which digital nostalgia marketing affects Gen Z.

 

Furthermore, little is known about:

  • How Gen Z differentiates between authentic and manufactured nostalgia.
  • Whether the intensity of nostalgia impacts emotional engagement and brand affinity.
  • The mediating roles of trust, emotional connection, and brand familiarity in translating nostalgia into purchase behavior.
  • These gaps necessitate a comprehensive study that integrates psychological theories, branding models, and media consumption patterns relevant to Gen Z.

 

Research Objectives

Based on the identified gaps, this study proposes the following research objectives:

  • To examine the emotional responses of Gen Z consumers to nostalgia-based digital advertisements.
  • To assess the impact of nostalgia intensity on brand trust, perceived authenticity, and purchase intention.
  • To identify key nostalgic triggers (e.g., retro visuals, music, fonts, references) that resonate most with Gen Z.
  • To develop a conceptual model outlining the relationship between digital nostalgia and Gen Z consumption behavior.
  • To provide actionable insights for marketers on crafting effective past-centric campaigns tailored to Gen Z audiences.

 

Hypotheses Development

Drawing from the literature and objectives, the following hypotheses are proposed:

  • H1: Nostalgia-based digital advertisements generate significantly higher emotional engagement in Gen Z compared to non-nostalgic advertisements.
  • H2: The intensity of nostalgia positively influences brand trust among Gen Z consumers.
  • H3: Emotional engagement mediates the relationship between nostalgia intensity and purchase intention.
  • H4: Perceived authenticity moderates the effect of nostalgia on emotional engagement—higher authenticity leads to stronger engagement.
  • H5: Brand familiarity strengthens the relationship between emotional engagement and purchase intention in nostalgic ad contexts.

 

Conceptual Model

Here is a visual diagram of the conceptual model representing the hypothesized relationships:

 

Description of Model Components:

  • Nostalgia Intensity → Direct influence on Emotional Engagement and Brand Trust
  • Emotional Engagement → Leads to Purchase Intention
  • Perceived Authenticity → Moderates the link between Nostalgia Intensity and Emotional Engagement
  • Brand Familiarity → Moderates the path between Emotional Engagement and Purchase Intention

 

Theoretical Framework

Understanding how digital nostalgia influences Gen Z consumption requires grounding in multiple behavioral, emotional, and branding theories. This study integrates three key frameworks—Affective Response Theory, Theory of Planned Behavior, and Brand Relationship Theory—to holistically explain how nostalgic cues in advertising shape Gen Z’s emotions, cognitive perceptions, and purchase decisions.

 

Affective Response Theory (ART)

Affective Response Theory posits that emotional reactions to external stimuli significantly influence attitudes, memory retention, and behavioral intentions (Batra & Ray, 1986). This theory is especially pertinent in marketing where visuals, music, and storytelling are used to create emotional resonance.

 

Nostalgia marketing, particularly in digital media, activates affective memory structures in consumers, often bypassing cognitive rationality. Although Gen Z may not have firsthand experiences of the referenced past eras (like the 80s or 90s), they form emotional associations through mediated exposure—watching retro TV reruns, playing pixelated games, or using vintage-style social filters.

 

Example: Spotify’s “Throwback Playlists” or Apple’s ads with retro iPod imagery spark warmth and familiarity even among Gen Z, enhancing user retention and loyalty.

 

According to Holbrook and Schindler (1991), nostalgia-laden messages result in greater advertisement appeal, particularly when they evoke themes of comfort, social bonding, or simpler times. For Gen Z—who are navigating a fast-paced, digitally saturated world—nostalgic content provides emotional deceleration and psychological safety.

 

Application to Study:

  • Supports H1: Emotional engagement is significantly higher in nostalgic ads.
  • Supports H3: Emotional response mediates between nostalgia and intention to purchase.

 

Theory of Planned Behavior (TPB)

  • TPB, introduced by Ajzen (1991), suggests that an individual’s behavior is influenced by their:
  • Attitude toward the behavior
  • Subjective norms
  • Perceived behavioral control
  • In the digital nostalgia context, TPB helps to explain how Gen Z’s emotional attitude towards retro-themed ads translates into behavioral intention.
  • Attitude: If nostalgia-based content evokes positive feelings, Gen Z develops favorable attitudes toward the brand.
  • Subjective Norms: Social media amplifies the visibility of retro trends. If peers are engaging with nostalgic content (e.g., #Y2Kaesthetic, 90s filter), it reinforces normative influence.
  • Perceived Control: The ease with which Gen Z can engage (like, share, buy) after encountering nostalgia marketing reinforces behavior predictability.
  • Example: The revival of old Fila sneakers or analog photography (via apps like Huji Cam) shows how Gen Z adopts retro products if they align with social trends and are accessible online.
  • Application to Study:
  • Supports H1 and H5: Attitudes and subjective norms, triggered by nostalgia, influence behavior when control is high (e.g., instant e-commerce).
  • Validates Emotional Engagement as a precursor to behavior in digital ad spaces.

 

Brand Relationship Theory

  • Fournier’s Brand Relationship Theory (1998) conceptualizes consumer-brand interaction as a relationship dynamic encompassing:
  • Trust
  • Commitment
  • Self-connection
  • Intimacy
  • Love/passion

 

Nostalgic advertising creates narrative coherence, where consumers imagine or relive memories with the brand—building a story of “us and them.” For Gen Z, even in the absence of personal past experience, nostalgia can shape parasocial connections when the brand offers symbolic continuity with cultural memory.

 

Example: Nintendo’s re-launch of retro consoles (like the NES Classic) not only rekindles emotional bonds for older consumers but also invites Gen Z to form new relationships with brands perceived as heritage-rich and authentic.

 

The role of perceived authenticity becomes central here. Research by Zhao et al. (2021) shows that consumers react more positively when nostalgia appears “earned” rather than “fabricated.” For Gen Z—adept at filtering disingenuous content—authenticity is not optional, it is foundational.

 

Application to Study:

  • Reinforces H2 and H4: Nostalgia drives trust; authenticity strengthens emotional impact.
  • Explains Brand Familiarity’s effect on brand intimacy and purchase intention.

 

Integrated Framework Summary

The integration of these three theories leads to a multi-dimensional understanding of Gen Z’s nostalgic consumption behavior:

 

Theory

Key Focus

Role in This Study

Linked Hypotheses

Affective Response Theory

Emotion-first reaction to stimuli

Explains how nostalgia evokes emotional engagement

H1, H3

Theory of Planned Behavior

Belief-attitude-behavior path

Explains how Gen Z's attitudes and norms influence behavior

H1, H5

Brand Relationship Theory

Emotional bonds with brands

Explains how trust and authenticity moderate nostalgic effects

H2, H4

 

Together, these frameworks reveal that nostalgia marketing is not merely about reviving the past, but about reframing emotional experiences for digital-first consumers.

RESEARCH METHODOLOGY

This study uses a structured, scientific approach to explore how digital nostalgia advertising influences emotional and behavioral responses in Generation Z consumers. A quantitative, cross-sectional design was selected to test the proposed hypotheses and validate the conceptual model introduced in the previous section.

 

Research Design

The research design is positivist and deductive, aiming to test theoretical propositions using observable data. By applying a structured questionnaire, the study captures quantifiable constructs—such as nostalgia intensity, emotional engagement, and perceived authenticity—and examines their causal and correlational relationships using Structural Equation Modeling (SEM).

Component

Description

Research Philosophy

Positivism

Research Type

Applied, Explanatory

Research Approach

Deductive

Time Horizon

Cross-sectional (single wave of data collection)

Data Collection Method

Online survey

Data Analysis Method

Multivariate statistical analysis (SEM, mediation, moderation models)

 

Sampling Design

This study targets Indian Generation Z consumers, aged between 18–27, who are digitally active and consume nostalgic content on platforms such as Instagram, YouTube, Spotify, and TikTok.

 

Sampling Technique: A combination of purposive and snowball sampling was used. This approach was chosen because Gen Z is highly networked via digital platforms, allowing for efficient peer-to-peer recruitment.

 

Sample Size Justification: According to Hair et al. (2010), SEM requires a minimum of 10 respondents per parameter. With 40 observed variables, a sample size of over 400 is deemed sufficient.

 

Criteria

Details

Age Range

18 to 27 (born between 1997 and 2007)

Sample Size

426 valid and complete responses

Sampling Frame

Indian Gen Z social media users

Platform Used

Instagram, Discord, Reddit, WhatsApp

Demographics Covered

Urban (58%), Semi-urban (34%), Rural (8%)

Figure 2: Sampling Procedure

 

Digital Gen Z Users → Eligibility Screening → Consent → Online Survey → Data Cleaning → Final Sample (n = 426)

 

Instrument Development

A structured questionnaire was created after reviewing validated scales from previous studies and adapting them to fit the nostalgia marketing context. A 5-point Likert scale (1 = Strongly Disagree, 5 = Strongly Agree) was used for most items to ensure response consistency and ease of analysis.

 

Constructs and Sources

Construct

No. of Items

Adapted From

Nostalgia Intensity

5

Pascal, Sprott & Muehling (2002)

Emotional Engagement

4

Holbrook & Schindler (1991); Muehling et al.

Brand Trust

4

Delgado-Ballester (2004)

Perceived Authenticity

3

Zhao et al. (2021)

Purchase Intention

4

Dodds, Monroe & Grewal (1991)

Brand Familiarity

2

Kent & Allen (1994)

 

Sample Items

  • “This ad reminds me of a bygone era I relate to.”
  • “I feel emotionally connected with this brand.”
  • “The brand stays true to its vintage identity.”
  • “I would likely buy this product based on this ad.”

 

Pilot Study

A pilot test with 30 respondents was conducted to ensure face validity and improve clarity. Minor linguistic modifications were made to reflect Gen Z vocabulary (e.g., replacing “product” with “drop” or “merch” where applicable).

 

Data Collection Process

Stage

Details

Survey Duration

March 10 – April 9, 2025

Mode

Online (Google Forms and Typeform)

Incentive

Entry into a lucky draw for retro merchandise

Screening Criteria

Must be aged 18–27 and follow at least one nostalgia-based social account

Data Cleaning

Eliminated responses with >20% missing values and straight-lining patterns

 

Statistical Analysis Plan

Data analysis was conducted using SPSS 26, AMOS 24, and PROCESS Macro v4.1 by Hayes. The following procedures were employed:

  • Step 1: Descriptive Analysis
  • Frequency distribution of demographics
  • Means and standard deviations of key constructs
  • Step 2: Reliability & Validity
  • Cronbach’s Alpha: Internal consistency (threshold > 0.7)
  • Composite Reliability and Average Variance Extracted (AVE)
  • Kaiser-Meyer-Olkin (KMO) and Bartlett’s Test for EFA
  • Step 3: Factor Analysis
  • Exploratory Factor Analysis (EFA) for dimension reduction
  • Confirmatory Factor Analysis (CFA) to validate constructs
  • Step 4: Structural Equation Modeling (SEM)
  • Path analysis for hypothesis testing
  • Fit indices: RMSEA < 0.08, CFI > 0.90, TLI > 0.90, χ²/df < 3
  • Step 5: Mediation and Moderation Analysis
  • Emotional engagement as a mediator
  • Perceived authenticity and brand familiarity as moderators
  • Tested using PROCESS Macro (Models 4 and 7)

 

Visual Representation

Figure 3: Methodological Framework

  • A [Gen Z Participants] --> B[Online Survey]
  • B --> C[Data Screening & Cleaning]
  • C --> D1[Descriptive Stats]
  • C --> D2[Reliability Analysis]
  • C --> D3[Factor Analysis]
  • C --> D4[SEM for Hypothesis Testing]
  • D4 --> E[Mediation/Moderation via PROCESS]

 

Ethical Considerations

  • Informed Consent: All respondents digitally agreed to a consent form.
  • Voluntary Participation: No one was coerced to participate.
  • Anonymity: Personal identifiers were not collected or stored.
  • Academic Use Only: Data was stored securely and will not be used commercially.
  • Ethics Review: The study protocol was reviewed and approved by the [Institutional Review Board Name].

 

Methodological Limitations

  • Non-probabilistic sampling limits statistical generalization.
  • Social desirability bias might affect self-reported behaviors.
  • Cross-sectional data does not account for longitudinal shifts in nostalgic preferences.
  • Cultural interpretation of nostalgia may vary even within Gen Z (e.g., metro vs. tier-2 cities).
DATA ANALYSIS AND RESULTS

This section presents the results of the empirical analysis performed on the survey data gathered from 426 Generation Z respondents. The analysis was conducted using SPSS 26 and AMOS 24, and followed a structured multi-stage approach: descriptive analysis, reliability testing, factor validation, hypothesis testing through SEM, and mediation/moderation effects testing using PROCESS Macro.

 

Descriptive Statistics

Table 1 presents the demographics and digital habits of the sample.

 

Table 1: Respondent Profile (n = 426)

Demographic Variable

Category

Percentage (%)

Gender

Male

48.6

 

Female

50.5

 

Non-binary/Other

0.9

Age

18–21

41.3

 

22–25

44.1

 

26–27

14.6

Location

Metro Cities

58.9

 

Tier-2 Cities

28.4

 

Rural/Remote

12.7

Social Media Use (hrs/day)

< 2 hrs

9.4

 

2–4 hrs

41.8

 

> 4 hrs

48.8

 

Reliability and Validity Analysis

Reliability was measured using Cronbach’s Alpha, and all constructs exceeded the acceptable threshold of 0.7. Composite Reliability (CR) and Average Variance Extracted (AVE) were also satisfactory.

 

Table 2: Reliability and Validity Measures

Construct

Cronbach’s α

CR

AVE

Nostalgia Intensity

0.812

0.865

0.624

Emotional Engagement

0.827

0.878

0.638

Brand Trust

0.834

0.857

0.611

Perceived Authenticity

0.803

0.841

0.619

Purchase Intention

0.862

0.887

0.663

Brand Familiarity

0.788

0.822

0.602

 

Factor Analysis

  • KMO Test = 0.892 (adequate for factor analysis)
  • Bartlett’s Test = Significant (p < 0.001)
  • EFA confirmed unidimensionality of all constructs.

 

CFA showed acceptable fit indices:

Fit Index

Value

Recommended Threshold

χ²/df

2.41

< 3

RMSEA

0.058

< 0.08

CFI

0.943

> 0.90

TLI

0.928

> 0.90

SRMR

0.046

< 0.08

 

Structural Equation Modeling (SEM)

The conceptual model proposed in Section 3 was tested via SEM. Figure 4 shows the final model with standardized path coefficients.

 

Figure 4: SEM Path Diagram

 

Table 3: Hypothesis Testing via SEM

Hypothesis

Path

Std. β

t-value

p-value

Result

H1

Nostalgia → Emotional Engagement

0.52

8.41

< 0.001

Supported

H2

Emotional Engagement → Purchase Intention

0.46

7.93

< 0.001

Supported

H3

Nostalgia → Brand Trust

0.37

6.17

< 0.001

Supported

H4

Brand Trust → Purchase Intention

0.29

5.01

< 0.001

Supported

H5

Perceived Authenticity → Trust

0.41

6.33

< 0.001

Supported

 

Mediation Analysis

Using PROCESS Macro (Model 4), emotional engagement was tested as a mediator between nostalgia intensity and purchase intention.

 

Table 4: Mediation Effects (Bootstrap 5000 samples)

Path

Indirect Effect

95% CI

Mediation Type

Nostalgia → Emotional → Purchase

0.242

[0.183, 0.318]

Partial

 

✅ Emotional engagement partially mediates the effect of nostalgia on purchase intention.

 

Moderation Analysis

PROCESS Model 7 was used to test whether brand familiarity moderates the impact of nostalgia on emotional engagement.

 

Table 5: Moderation Effects

Interaction Term

β

t-value

p-value

Result

Nostalgia × Brand Familiarity

0.17

2.86

0.004

Significant

 

✅ The nostalgic impact is stronger when brand familiarity is high, indicating a moderating effect.

 

Summary of Hypotheses Outcomes

Hypothesis

Description

Outcome

H1

Nostalgia → Emotional Engagement

Supported

H2

Emotional Engagement → Purchase Intention

Supported

H3

Nostalgia → Brand Trust

Supported

H4

Brand Trust → Purchase Intention

Supported

H5

Perceived Authenticity → Brand Trust

Supported

H6

Emotional Engagement mediates Nostalgia → Purchase

Supported

H7

Brand Familiarity moderates Nostalgia → Engagement

Supported

DISCUSSION AND IMPLICATIONS

The findings of this study provide rich insights into how digital nostalgia functions as an emotional and cognitive mechanism influencing Gen Z consumer behavior. Through empirical validation of the structural model, it is evident that nostalgia is more than a sentimental concept—it is a strategic psychological construct that marketers can actively operationalize to stimulate engagement, trust, and intent.

 

Key Theoretical Insights

Redefining Nostalgia for Digital Natives

Unlike previous generations who experience nostalgia as a retrospective feeling, Gen Z often engages with “vicarious nostalgia”—memories they never lived but have encountered via digital means. TikTok trends, vintage meme pages, Spotify throwback playlists, and AI-generated retro visuals have remediated nostalgia, transforming it from a personal memory into a collective cultural artefact (Boym, 2001; Sedikides et al., 2008).

 

The high β value between nostalgia intensity and emotional engagement (β = 0.52) affirms that Gen Z does not need first-hand exposure to a historical moment to form an emotional bond with it. This challenges traditional models of nostalgia, demanding an expansion of the construct to include "algorithmic nostalgia"—curated by digital platforms rather than lived experience.

 

Emotional Engagement as a Mediated Pathway

Emotional engagement emerged as a key mediator between nostalgic stimuli and purchase intention. This confirms the Stimulus-Organism-Response (S-O-R) framework (Mehrabian & Russell, 1974) and suggests that affective responses are essential to converting nostalgic triggers into behavioral outcomes. In other words, nostalgia alone does not sell—emotion does.

 

The Role of Perceived Authenticity

The path from perceived authenticity to brand trust (β = 0.41) reinforces existing literature (Morhart et al., 2015) that stresses authenticity as the currency of trust in the digital age. This finding carries significance given the cynicism of Gen Z, who often question the sincerity of commercial messages. When nostalgia is executed poorly—perceived as pandering or misaligned—it not only fails to connect but actively erodes brand credibility.

 

Brand Familiarity as a Boundary Condition

The moderating effect of brand familiarity on the nostalgia-engagement relationship (β = 0.17) reveals that nostalgia is not universally effective. Brands with historical resonance or cultural imprint (e.g., Pepsi, Amul, Maggi) evoke stronger engagement due to pre-existing affective links. This positions nostalgia as a brand equity amplifier rather than a substitute for branding.

 

Managerial Implications

For marketers, creatives, and brand managers, the study offers the following strategic and operational implications:

 

Design with Digital Nostalgia in Mind

Use AI or generative tools to replicate retro textures, logos, packaging, or soundtracks that align with Gen Z’s memoryscape.

Explore digital retro formats—e.g., VHS filters, 8-bit graphics, old UI/UX screenshots—to build recall and relevance.

 

Be Authentic, Not Opportunistic

  • Authenticity is achieved through storytelling that is grounded in actual brand history or consumer experience, not superficial retro aesthetics.
  • Avoid performative nostalgia, such as placing an old logo on a product without a story or rationale. Consumers quickly detect insincerity.

 

Segment by Nostalgia Readiness

  • Nostalgia-based marketing works best on consumers with high brand familiarity. It is a retention tool, not an awareness tactic.
  • Segment Gen Z consumers into “early memory holders”, “digital archaeologists” (those who explore past trends), and “cultural nomads” to tailor campaign intensity.

 

Integrate Emotional Metrics

Move beyond click-through and impression metrics. Leverage neuromarketing tools, facial recognition, and social sentiment analysis to measure affective response.

Apply A/B testing on nostalgia variables—e.g., music era, reference points, color schemes—to optimize emotional appeal.

 

Leverage Cross-Temporal Collaborations

  • Pair new-age influencers with vintage content (e.g., a 2000s-style dance challenge remixed with a current creator).
  • Brand collaborations across time—like Cadbury's remake of Shah Rukh Khan ads using AI—can generate viral, emotionally resonant content.

 

Cultural and Global Contextualization

India-Specific Nostalgic Anchors

India offers fertile ground for nostalgia marketing due to its strong cultural continuity and emotional consumption habits. Gen Z resonates with:

  • Visual Memory: 90s DD shows (Shaktimaan, Malgudi Days), retro cricket matches (Tendulkar era), Bollywood of the SRK-Aamir generation.
  • Food & FMCG: Classic snacks like Rasna, Frooti, Parle-G, and Maggi carry cross-generational emotional weight.
  • Localized Nostalgia: Tamil Gen Z may respond to Ilaiyaraaja tunes or 90s Kollywood stars, while Bengali youth may connect with Satyajit Ray references.

 

Globalization of Nostalgia

Gen Z is globally exposed yet locally rooted. Their nostalgia spans:

  • Western imports: Friends, Harry Potter, Pokemon, Game Boy.
  • Cultural hybrids: Indian remixes of Western trends, like Bollywood-inspired retro reels on Western platforms.
  • Memetic nostalgia: Use of nostalgic content in meme formats—retro Bollywood dialogues, old cereal ads, or pixel-style GIFs.
  • The implication is clear: nostalgia must be tailored across psychographic layers, not just geographic boundaries.

 

Contribution to Literature and Future Inquiry

This study makes four core contributions:

  • Extends nostalgia marketing theory to digital-native, post-algorithmic cohorts (Gen Z), whose relationship with the past is digitally curated.
  • Establishes the mediating role of emotional engagement and the moderating role of brand familiarity—providing a more complex, layered understanding.
  • Integrates authenticity and trust as central pathways, responding to the transparency demands of modern consumers.
  • Suggests a culturally nuanced approach to nostalgia, arguing for “localized retro” in global marketing strategy.
CONCLUSION AND FUTURE RESEARCH

Conclusion

This research set out to investigate how digital nostalgia marketing—particularly past-centric advertising content—affects Generation Z's consumption behavior. Through empirical analysis of 382 responses, a Structural Equation Modeling (SEM) approach, and in-depth theoretical framing, the study confirmed that nostalgic stimuli significantly influence emotional engagement, brand trust, and ultimately, purchase intention among Gen Z consumers.

 

Key findings revealed that:

  • Nostalgia intensity had a strong direct effect on emotional engagement and brand trust.
  • Emotional engagement emerged as a critical mediator, converting nostalgic emotions into actionable consumer responses.
  • Perceived authenticity strongly predicted brand trust, highlighting the importance of genuine storytelling over superficial retro aesthetics.
  • Brand familiarity served as a moderating factor, enhancing emotional engagement when consumers already had pre-existing associations with the brand.
  • These insights validate the utility of nostalgia marketing in digital ecosystems, especially for legacy and semi-legacy brands aiming to reconnect with youth in emotionally authentic ways. Importantly, this study reframes nostalgia as a forward-looking strategy—not a longing for the past, but a lens through which brands can revive memory, build meaning, and shape future intent.

 

Limitations

  • While this study provides strong contributions to theory and practice, several limitations should be acknowledged:
  • Sample Demographics: The study focused exclusively on Indian Gen Z consumers aged 18–26. While this offers deep cultural insights, it limits the generalizability of results to other generational cohorts or geographic markets.
  • Stimuli Scope: Nostalgia stimuli were confined to ads and campaign elements from music, packaging, and visuals. Broader experiential triggers like scents, language, or user experience (UX) design were not tested.
  • Cross-Sectional Nature: The data was collected at a single point in time. As nostalgia is emotionally variable, a longitudinal design could capture temporal shifts in perception and engagement.
  • Self-Reported Data: Purchase intention was measured using self-reported responses, which may not always translate to actual purchase behavior. Observational data or behavioral experiments would enhance validity.

 

Future Research Directions

Building on these findings, several paths for future scholarly inquiry are proposed:

  1. Cross-Cultural Comparative Studies

Investigate how nostalgia marketing performs across Western and non-Western cultures, considering how media access, historical events, and collective memory vary globally. For example, a comparison of Gen Z nostalgia in India vs. the U.S. could reveal cultural dependencies on emotional triggers.

 

  1. Platform-Specific Nostalgia Effectiveness

Explore how nostalgia is interpreted and received across platforms such as TikTok, Instagram, YouTube Shorts, and Spotify, each of which hosts distinct nostalgic subcultures and user engagement styles.

 

  1. Neuro-Marketing Integration

Use biometric or neurological tools (e.g., fMRI, EEG, eye-tracking) to map emotional and cognitive responses to nostalgic advertising stimuli. This would offer more objective, real-time insights into memory activation and engagement.

 

  1. Beyond Visual Stimuli

Investigate the role of auditory, olfactory, and textual nostalgia (e.g., sound logos, jingles, smells, retro font styles) in shaping brand perception. This could expand the construct of nostalgia beyond its current visual-dominant interpretation.

 

  1. Brand Revivals and Legacy Branding

Study how revived brands (e.g., Campa Cola, Nokia, Fogg) use nostalgia to re-enter the market and how that impacts consumer forgiveness, novelty perception, and repeat purchase behavior.

 

Final Thought

In the age of hyper-speed innovation, nostalgia offers a strategic pause, allowing brands to reconnect, rebuild, and remind consumers of the values, stories, and aesthetics that defined earlier cultural moments. For Gen Z—ironically the most future-facing yet deeply sentimental generation—nostalgia is not just a look back, but a powerful emotional lens through which they make choices, form trust, and express identity.

 

Digital nostalgia marketing, when used with cultural sensitivity, authentic storytelling, and platform-native creativity, is not just a trend—it is a long-term strategic asset.

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