Influencers advertising on social media and customers’ purchase intention: Evidence from Saudi Arabia

Abstract

Abstract: Purpose: This thesis aims to explore the effects of the Informative value of social media influencers and their credibility on customers' purchase intention. We extended the analysis by highlighting the moderating effect of electronic word of mouth (E-WOM) between the informative value of social media influencers and trust in brands advertised in social media and between the credibility of social media influencers and trust in brand advertised in social media. The mediating effect of trust in brands advertised on social media was also investigated between the informative value of social media influencer and customers’ purchase intention and between credibility and customers’ purchase intention. Design\ methodology\ approach: This thesis is focused on a quantitative approach. Data were collected from respondents through focus group interviews. A questionnaire was prepared for the interviewee and integrates the scales of measurement develop by prior studies. We targeted Saudi social media users who are followers of social media fashion influencers. The total number of respondents was 138 respondents. Data analysis was performed using SPSS and SMART PLS. Findings: The results revealed that the informative value of social media influencers does not have a positive effect on trust in brands advertised on social media nor in customers’ purchase intention. In contrast, the credibility of social media influencers was found to positively affect trust in brands advertised on social media and customers’ purchase intention. The moderating effect of E-WOM between social media influencers’ informative value and users’ trust in the brand advertised on social media was significant. In contrast, the moderating effect of E-WOM between social media influencers’ credibility and social users’ trust in the brand advertised on social media was not significant. In addition, users’ trust in the brand advertised on social media positively affects social media customers’ purchase intentions. Finally, results highlighted that trust in brand advertised on social media does not mediate the link between social media influencer’s informative value and social media customers’ purchase intention. However, they revealed that trust in brand advertised in social media partially mediates the link between social media influencer’s credibility and social media customers’ purchase intention. Practical implications: This thesis can assist marketers and advertisers in determining how social media users perceive influencers and how this perception can affect their trust in brands advertised on social media and their purchase intention of these brands. According to our findings, businesses should target the right influencers who have a high level of credibility, who is trustworthy and expert in the domain of the advertised products. In addition, practitioners should use sponsored posts to increase the popularity and the influence of social media influencers and increase the effect of positive E-WOM and at the same time reduce the amount of negative E-WOM. Limitations: Like any other study this study has some limitations. First, the results were obtained according to the customers’ evaluation however, it would be more reliable if the study has adopted an observational method to observe the customers attitude instead of depending on their own evaluations. Also, several constructs that are considered as relevant factors are crucial to include such as the worldwide pandemic known as corona virus. Originality: The originality of this study lies in being one of the first study in Saudi Arabia testing the mediating effect of trust in brands advertised on social media between social media influencers’ credibility and informative value and customers’ purchase intention. In addition, this thesis pioneers the investigation of the moderating role of E-WOM in the link between social media influencers’ credibility and informative value and trust in brands advertised on social media. Recommendations: Future studies should specify only one platform through which the participants are followers of some influencers to be more specific. Further research could add other perspectives such as testing the moderating effects of gender and age. Future studies could test the specific impact of each social media influencer’s credibility dimension which are trustworthiness, expertise, similarities, attractiveness. Keywords: informative value, credibility, trust, purchase intention, brand. Social media, influencer | Title on cover : المؤثرون المعلنون على وسائل التواصل الإجتماعي ونية العملاء للشراء : أدلةمن المملكة العربية السعودية