The Impact of Influencer Marketing on Consumer Behavior

The Impact of Influencer Marketing on Consumer Behavior and Purchase Decisions

If you were to ask us which marketing method has the most influence on consumer behavior and purchasing decisions, we’d say without a doubt that it is influencer marketing.

Influencers and content creators create and impact trends; they influence the purchases of their audience members and can contribute to brands’ growth and sales.

Marketers and brands are increasingly turning to influencers to collaborate on product launches and to gain insights into various demographic segments, and more and more are forming long-term collaborations. From SEO marketing to video content and email marketing to livestream shopping, influencer marketing strategies have become integral parts of effective marketing strategies, and their effects on consumer behavior and purchases are significant.

In this article, we’ll discuss the impact of Influencer Marketing on purchasing decisions in 2023 and beyond.

Impact on Consumer Behavior

It’s clear that influencer marketing plays a significant role when it comes to impacting purchasing decisions.

In 2023, and beyond, we’ll continue to see a rise in influencers and popular content creators, and in turn, this will play a significant role in how consumers navigate their purchase journey.

Social media platforms were originally designed to help people connect with each other on a personal level. However, these sites have since evolved into highly valuable platforms for promoting brands and products through influencers.

These influencers, ranging from social media personalities to live streamers, have a profound impact on their audience’s buying habits. Social media influencers, for instance, have a powerful sway over their followers’ purchasing decisions.

Guidance Seeking

A staggering 49% of consumers reportedly seek guidance from these influencers before making a purchase.

When an influencer endorses a product or service, their followers often associate it with positive attributes, thereby increasing the likelihood of a purchase. Live streamers, on the other hand, offer a unique shopping experience by broadcasting product demonstrations and interacting with their viewers in real-time.

Two influencer types

A study conducted in May 2023 examined the impact of two types of influencers, VTubers and streamers, on the purchase intention of Otaku* and non-Otaku respondents.

The study found that both types of influencers significantly impacted the gaming industry by shaping consumer behavior, promoting games and platforms, and influencing the development of new titles.

They effectively influenced purchasing decisions and created loyal fan bases for games and platforms. The study also highlighted the importance of attractiveness in shaping viewers’ perceptions of influencers. Streamers relied more on their physical appearance to attract viewers, while VTubers depended on their virtual avatar’s appearance and interaction with viewers.

*The term “Otaku” is used to describe those who are incredibly passionate and dedicated to a particular interest, such as Manga or Anime. Enthusiasts of these often seek out anything and everything that features their favorite character, connecting with others who share their same fervor. If you’re looking to feed your passion, Otaku shops that offer Japanese Manga or Animation tapes (commonly known as Animate) are the perfect place to do so!

The Psychology of Influence

Before we look at the role of trust and authenticity and the impact of influencer marketing on consumer behavior, let’s start with the basics: What is the psychology of influence and why is it so powerful?

The psychology behind this influence is rooted in our innate human tendencies and desires. People naturally crave social proof and validation, a phenomenon that influencers leverage to their advantage.

Fashion Influencers

When a fashion influencer shares a trendy new look or a travel influencer showcases a luxury hotel, followers often feel compelled to mimic their behavior. This desire to fit in and conform to societal norms is a powerful motivator, driving individuals to align their actions with those they perceive as authoritative or popular.

Influencers also wield significant power through their perceived authority and expertise. They are seen as trusted figures within their respective domains, whether it’s fashion, gaming, travel, or any other niche.

This trust is often transferred to the brands or products they promote, creating a psychological conformity effect on their followers. As a result, followers assimilate this new information into their own preferences and choices, leading to increased brand awareness, loyalty, and conversions.

Streamer Influencers

When it comes to streamers, the relationship between a streamer and their audience is particularly unique. Over time, a parasocial relationship can form, where viewers invest emotional energy, time, and interest in the streamer, often without the streamer’s awareness.

This perceived connection can be so strong that it mirrors the trust and loyalty typically reserved for real friends. Streamers build their audience by engaging with them in real-time, promoting their streams on various social media platforms, hosting giveaways, networking with industry influencers, and leveraging video on demand (VOD). They also create a sense of community by addressing their audience directly and sharing intimate aspects of their lives, further strengthening the bond between them and their viewers.

In conclusion, the psychology behind the influence of content creators and streamers is complex and multifaceted, tapping into our most natural tendencies, emotions, and desires. By understanding these dynamics, brands can effectively leverage influencer marketing to reach and engage their target audience, ultimately driving increased conversions and business growth.

Impact of Influencer Marketing

We’ve seen that when it comes to purchasing choices, influencer marketing can have a significant impact as consumers are more likely to trust other people’s opinions and experiences than an advertising campaign.

There are many factors that will influence consideration for purchasing choices with influencer marketing. Now, let’s explore some of these factors:

Authenticity & Transparency

Influencers should be transparent about any partnerships or sponsorships they have with brands to maintain credibility with their audience.

Authenticity plays a big role in consideration. Consumers are able to detect if an influencer is transparent or not.

Influencers should only endorse products or services that they genuinely believe in and that align with their personal brand and values. It can sometimes be easy to detect when an influencer doesn’t genuinely like a product. This is where working with influencers in various niches helps since they are most likely to be knowledgeable and have a genuine passion for specific product categories.

Trust

The next aspect we need to look at to understand the impact of influencer marketing on consumer behavior is the role of trust:

Trust plays a pivotal role in consumer decision-making. A consumer’s trust positively affects their intention to purchase, extending the valence framework that recognizes the impact of perceived risk and benefit on the purchase decision. Trust is a critical variable as it can directly influence the success of a company by attracting and retaining loyal customers, leading to more sales.

Influencers and content creators with their carefully crafted images and lifestyles, create an aspirational halo that surrounds them. When they endorse a product or service, their followers are likely to associate it with positive attributes, increasing the chances of a purchase. The right influencer marketing campaign can help build trust, loyalty, and authenticity, convincing consumers that making a purchase is an opportunity they cannot afford to miss.

Moreover, influencers can transfer their established social proof to help create brand awareness, build brand loyalty, and drive increased conversions.

However, building trust is not a one-time event; it requires consistent effort and transparency. Brands need to ensure that they follow through on their claims, as nothing destroys trust faster than hollow promises.

For instance, if a company claims to value and support environmental sustainability, it must have a highly visible program that does just that.

Live streaming

Live streaming is another avenue where trust and credibility play a crucial role in influencing consumer purchase decisions.

During a live stream, consumers can observe the evaluations and purchase behaviors of other consumers, which can help reduce risks or increase confidence in their own purchase decisions. Interactions during live streams can promote both social presence and consumer conformity, thereby enhancing their purchase intentions.

Authenticity and Trust: Conclusion

Authenticity and trust are vital in driving consumer purchase decisions, especially in the context of influencer marketing and live streaming. As we navigate the digital landscape, understanding the dynamics of trust and credibility becomes even more essential for brands aiming to influence consumer behavior and drive growth.

The influence of content creators and streamers on purchase decisions is non debatable. As modern consumers look for personal recommendations from someone they view as a friend, marketers are increasingly turning towards celebrity-endorsed products to increase their brand visibility and drive sales.

Product endorsements

Product endorsements come in various forms. Notable examples include:

Gillette x Dr DisRespect

Twitch streamer Dr DisRespect and shaving and razor supplies company Gillette have finally teamed up officially.

UberEats x Ninja

Popular Twitch streamer and Fortnite player Tyler ‘Ninja’ Blevins’ promotion with Uber Eats reached its maximum amount of redemptions – in the span of a single day.

KFC x DrLupo

KFC tied up with DrLupo and Anthony Kongphan for promoting KFC as a dinner.

McDonalds x Travis Scott

McDonald’s teamed up with American rapper Travis Scott in September of 2020. The meal they created, called “The Travis Scott,” became one of the chain’s best selling menu items.

Brand Awareness and Loyalty

The statistics don’t lie, and countless brands have the results to prove the need for influencer marketing and the impact influencers have on purchasing decisions. Content creators have changed how we buy; they’ve become the bridge between many consumers and brands, allowing brands to streamline the consumer journey and contribute to purchasing decisions.

It’s no longer a matter of if brands should leverage influencer marketing, but a matter of when more brands will decide to explore this opportunity.

The future of marketing lies in the hands of influencers, and it’s up to us to use this marketing vertical to our advantage.

The Principles of Influence

These days, most markets are saturated by brands. In order to generate brand awareness, brands need to stand out from the crowd and offer something unique to consumers. Consumers need to believe that a brand offers enhanced value. In other words, to be successful, companies need to apply at least one of Cialdini’s Principles of Persuasion in order to convince consumers to buy into the brand.

This knowledge is very powerful for marketers as it explains how consumers can be influenced. In other words, what the core principles of influence are.

So, What are these principles?

Dr. Robert Cialdini, a renowned psychologist and marketing expert, has revolutionized our understanding of the art of persuasion with his groundbreaking book, “Influence: The Psychology of Persuasion.”

This seminal work, which has sold over five million copies worldwide and has been translated into 41 languages, outlines seven core principles that govern the way we are influenced and how we influence others.

Reciprocity

This principle is based on the human tendency to want to give back when something is received. People feel obligated to reciprocate in kind what another person has provided them. In the case of marketing, consumers are more likely to favor your brand if they believe they will get something in return.

Commitment and Consistency

Once we make a choice or take a stand, we strive to behave consistently with that commitment. We feel a pressure to align our future actions and attitudes with our past commitments. Influencers can use this principle by consistently promoting a brand or product, which in turn influences their followers to do the same.

Social Proof

We look to what others do to guide our behavior. If a large number of people are doing something, we're more likely to do it too. In the world of influencer marketing, followers often purchase products or services because they see their favorite influencers using them.

Authority

We tend to obey authority figures. If an expert or someone in a position of authority endorses a product or idea, we're more likely to trust it.

Liking

We are more likely to be persuaded by people we like. This can be due to physical attractiveness, similarity, compliments, contact and cooperation. This is why brands often choose influencers who are likable and relatable to their target audience.

Scarcity

Perceived scarcity generates demand. If we believe that something is in limited supply, we want it more. Influencers often use this principle by promoting limited-time offers or exclusive products.

Unity

The newest addition to Cialdini's principles, Unity refers to the shared identity that makes one person influential over another. The more we identify ourselves with others, the more we are influenced by these others. Influencers often build communities around shared interests or identities, making their promotional messages more effective.

These principles, backed by decades of scientific research, provide a comprehensive guide to understanding the subtle mechanics of persuasion in our everyday lives.

Influencer marketing is essentially built on these principles of influence. Brands and influencers use these principles to build trust, foster relationships, and ultimately, influence consumer behavior.

Whether you’re a marketer seeking to boost sales, a leader aiming to inspire your team, or simply an individual trying to understand the forces that shape your decisions, Cialdini’s principles offer invaluable insights into the complex world of influence and persuasion.

Benefits to Businesses

Using influencer marketing can have a lot of benefits for brands when it comes to how people decide what to buy and how they buy. An obvious benefit is that influencers frequently have followers who are really interested in specific things, like games, beauty or sports, which can help brands reach people who are more likely to be interested in what they’re selling. This can help brands drive more sales and ultimately be more successful.

Brands that work with influencers also have access to more creative ideas. Many influencers and content creators have large portfolios of successful campaigns, and they know what type of content delivery tends to work best with their audience and in their niche.

Conclusion

When it comes to making purchasing choices, consumers have a lot to consider. They look for trusted recommendations, authentic reviews, and a connection to the brand or product they are considering. Influencer marketing can provide all of these elements, making it a powerful tool for brands looking to influence consumer behavior.

Influencers should be transparent about any partnerships or sponsorships they have with brands to maintain credibility with their audience. Transparency plays a big role in consideration as most times consumers are able to detect if an influencer is transparent or not.

By understanding the psychology of influence and leveraging the power of influencers, brands can make a significant impact on consumer behavior and purchase decisions. Influencer marketing is a powerful tool that should not be overlooked in today’s competitive market.

So, are you ready to harness the power of influencer marketing? The opportunities are endless, and the impact on consumer behavior is undeniable. Get in touch! Whether you’re a brand or an influencer, we’ll find your perfect match!

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