The role and effectiveness of social media influencers in advertising
Introduction
This chapter develops a critical literature analysis on the topic. As illustrated under the proposal stage, it is evident that there is a rising rate in the sue and adoption of social media as a marketing tool. Additionally, it is clear from global statistics that entities are increasingly sourcing the help and support of social influencers in their marketing strategies. The emerging questions include the theoretical rationale and basis for using social media influencers, how their participation enhance marketing success, and how can their presence be leveraged in entities. In addressing the above literature sections, this literature analysis section is clustered into three primary levels. The first section is an evaluation of applicable and related theoretical model and frameworks. They help explain theoretically how social media influencers support the marketing function. This is then followed by a second section that denotes the existing empirical findings. In particular, the empirical findings section has two subsections, on the role of social influence in building customer trust, and in expanding the potential customer base. The third section narrows down to critically examining the literature discussions to form the developed study conceptual framework. Finally, there is a conclusion section summarising the critical discussions within the chapter.
Theoretical Analysis
The first section of the study analysis is an analysis and an evaluation of the existing and applicable theories on the connection and the rise of social influencers role in the marketing function. Although there could be a wide range of relevant theories, the study narrowed down its focus on two core theories namely the Technology acceptance model (TAM) and the theory of reasoned action (TRA), respectively. This section analyses each of the theories and explains their application and relevance at the study topic and objectives. Don't use plagiarised sources.Get your custom essay just from $11/page
The Technology Acceptance Model (TAM)
The TAM theory is a model developed to explain the adoption of technology products. On its part, unlike other models, it argues that the approval and acceptance of using a technology product are pegged and based on the features of such a product. This is an argument that as Lee, Xiong and Hu (2012) noted applies in the case of using social media as a marketing platform. In this regard, to use social media influencers, it was critical to understand the basis through which they function. The main target base is on social media platforms. Thus, the TAM theory helps in explaining the variable and influencing factors dictating on the use of social media and the social media influencers by business entities globally. Overall, Hackney, Rauniar, Rawski, Yang and Johnson (2014) noted that the theory points out at the specific influencing factors as indicated in the figure below.
Figure 1: The TAM Model
Source: Hackney, Rauniar, Rawski, Yang and Johnson, 2014
From the above theoretical analysis, there are two main influencing factors, the perceived usefulness (PU) and the perceived ease of use (PEOU). On the one hand, as Lin and Kim (2016) described it, the perceived usefulness of a technology product is based on the value that the users derive from the system use. In the case of social media marketing, there is a perceived value by the customers as well as the entities.
On the one hand, for the entities, the value is based on the fact that social media platforms are free for users. Thus, it means that there is a large number of potential and existing customers on the online platform, making them easier to reach out to. For the customers, the perceived value is equally on the no cost for accessing social media platforms. The second level of the theory application is PEOU. This is significantly high due to the low skills and expertise required in suing social media platforms. As Lee, Xiong and Hu (2012) argued, unlike other technology systems and marketing platforms, the social media platforms are easy to use and navigate for the users. This makes them user-friendly for the users. As such, a critical evaluation of the above findings demonstrates that the use of social media, as a marketing platform, has gained popularity due to its perceived value and the ease of using such platforms. Thus, the above analysis indicated that the rise of social media influencers use is partly because social media is emerging as a potential marketing base. Statistically, it is estimated that in Saudi Arabia, as of 2019, there were an estimated 23 million social media users. This is an estimated proportion of slightly over 68% of the population (GMI, 2019). The above assertions indicate that the PU and the PEOU among Saudi Arabia customer on social media platforms are high. This creates the need for organisations to examine and explore the ideal and best approaches’ through which to target and market to this customer base. This explains the rise in the use and tapping into social media influencers roles.
The Theory of Reasoned Action
After explaining the rationale behind the rising need for social media influencers use in Saudi Arabian marketing landscape, this section develops an examination of the extent to which the use of these social media influencers and impacts on the customers. This is established by adopting the TRA theory. The theory argued that the customers’ intention and willingness to purchase a product is pegged and hedged on the external influencing factors. The influencing factors as enumerated under the TRA theory are as demonstrated in the figure below.
Figure 2: The TRA Theory
Source: Erkan and Evans, 2016
From the above figure analysis, is clear that the behavioural intention to purchase or not purchase a product is influenced by two variables, (a) the attitude and (b) the subjective norms. It is the combination of these variables that determines if the customer has a positive or a negative purchase intention. Overall, the use of social media influencers, as Davies, Waite, Pookulangara, Hawley and Xiao (2011) and Lee and Hong (2016) studies illustrated serves as a basis for supporting and enhancing the realisation of a positive purchase intention.
On the one hand, the Davies, Waite, Pookulangara, Hawley and Xiao (2011) study argued that the use of social media influencers seeks to create high brand visibility. Through their massive following, they have an opportunity to increase the brand visibility index. Through such increased visibility, there is the creation of awareness’ which in turn allows for a high perception and a positive attitude among the customers. This means that the use of social media influencer has a theoretical basis for increasing the customers’ positive attitude towards a brand (Lee and Hong, 2016).
Secondly, the Cassell and Blake (2012) study was an examination of the Saudi Arabian market context. The analysis indicated that under the Hofstede cultural dimensions model, society is highly collective. Thus, the subjective norms, that are the opinions and contributions of society play a critical role in determining customers purchase decisions. This is a value that is significantly promoted by the fact that social media influencers create online communities. It is through these communities that interaction and information sharing is enhanced. Thus, as predominantly a collective society, the Saudi Arabian customer is influenced by the emerging feedback and contributions within the virtual communities to make such product purchase, thus improving their intention to purchase a product index. The use of social media influencers in Saudi Arabia is based on the fact that they have the potential to positively impact on the attitude and the subjective norms dimensions in the customers purchase decision making process.
Empirical Analysis
This section develops a critical analysis and examination of the existing empirical studies and reviews on the topic. In particular, based on the examined theoretical analysis, it is evident that the use of social influencers has an impact on trust and in expanding the customer base and reach, respectively. This section develops a critical analysis of the above assertions, as demonstrated in the discussion below. In examining the merits of using social media influencers, this analysis examines their benefits and value both to the entity and the customers, respectively.
Reduce Marketing Costs
On the one hand, there is value for the entities in the market. This as Hu, Milner and Wu (2016) indicated allows for the reduction in cost in the marketing process. As the analysis demonstrated, the use of social media influencers allows for the reduction of the expenses in the market. The marketing function is an additional expenditure base for organisations not only in Saudi Arabia but also globally. In this regard, besides the direct costs of production in goods and services, the market is considered an indirect cost. This is a cost that is not directly linked to the products/services but critical in ensuring that the products are availed in the market. As Lee and Hong (2016) illustrated, marketing costs have a direct impact on the profitability of products. This influences the overall costs and as such, reducing the profitability margins. Thus, to add value and profitability margins, it is critical for organisations to develop marketing strategies that have a high value and return on investment while lowering the cost of production in marketing. This is the virtual and gains derived under the use of the social media influencer marketing. The purpose of influencer marketing, as Zietek (2016) indicated allowed for the reduction in the associated marketing costs. This is because when marketing on social media through the influencers, the expenses incurred in the marketing process is low since the social media platforms are free to use.
Additionally, the use of social media influencers allows for the reduction in overhead marketing costs. Rather than recruiting internally for marketing, social media influence use allows for outsourcing of the marketing function. Consequently, this increases the value acquired in marketing while lowering marketing costs. The value of social media influence use could be validated through the cost-benefit analysis model. Under this model, the value of a strategy and business practice is heeded on having higher net benefits over the costs in the market. Thus, as illustrated above, the costs in marketing are lowered through its outsourcing ability while the gains are amplified. Hence, his validates and demonstrates that social media influencer marketing is a viable marketing strategy.
Increase Customer Trust and Positive Brand Attitude
Moreover, social media influencer marketing has its value through its riding on the influencer trust and influence in the market. This means that the market brand does not need to create a trust and confidence level of their own in the market. Instead, through social media influencers, they are jump-started into the trust and confidence levels in the market, matching those of the influencers. This is an aspect illustrated by the Jung, Kim and Kim (2014) and Lou and Yuan (2019) studies, among others.
On the one hand, Lou and Yuan (2019) study illustrated that the use of social media influencers as a marketing tool allows for increased customer confidence and trust. In this case, in most of the instances, the social media influencers are often and mostly the celebrity role models. In its analysis, Jung, Kim and Kim (2014) study illustrated that a majority of the used and exiting social media influencers are celebrity models. These celebrities serve as role models. As such, the customer base already has a high trust level on personalities. As such, they are expected to have a high integrity index and level.
Consequently, the use of social media influencers ensures that there are high trust and dependability. Due to their status in the market, the social media influencers are expected to validate the advertised products and services base and reliability before marketing them. This is because the wrongful promotion of services/products would dent their social media influence and perception online. In this regard, the analysis demonstrated that the use of social media influencers allows for trust levels rise in the market. Therefore, this is merit in the sense that it boosts trust and confidence among customers. The customers, although could be unaware or not conversant with the brand have a high trust level on the marketed product, this is a trust level that matched the confidence level they have on their social media influencers. This is a basis and a foundational aspect through which a positive attitude is created among the existing and potential bran customers.
Enhance Subjective Norms
Additionally, social media influencer marketing allows for the creation of high subjective norms and the creation of brand virtual online communities. This is an aspect that is adequately demonstrated in the Lien and Cao (2014) and Ladhari and Michaud (2015) studies, respectively. On the one hand, the Lien and Cao (2014) analysis was an investigation of the impact of social influencers on customers reach and influence among potential customers. In this regard, the study demonstrated that through social media influence use, the effect allowed for a conversation online. This is a conversation and feedback base that creates a basis for virtual communities’ creation. Thus, it enables the customers to not only serve as recipients of the information and adverts but also includes them as a part of the advertisements. This allows for a high engagement index among the customers and the brand. This is a system that adds value to the advertising and marketing process. In this context, Ladhari and Michaud (2015) study demonstrated that the inclusion of customers through online communities created by the social influence allows for an effective feedback system. The customers offer real time response and contributions. As such, this serves as not only an advertising platform for organisations. Instead, it helps and provides a basis for creating and stimulating feedback and an improved system. This is a platform that adds value unlike other platform and strategies such as mass media marketing that has no room for customer engagement or feedback system creation. Hence, this analysis asserts that social media influencer marketing adds value to the marketing process by creating virtual communities and a feedback system for marketed products.
Expand Potential Customer Reach
Further social media influencer marketing allows for a broad customer reach. This is unlike the other marketing strategies, as Booth and Matic (2011) and Schivinski and Dabrowski (2016) asserted. Booth and Matic (2011) illustrated that the use of social media influencers created an opportunity for reaching out to a broader customer base. This is a population and customer base hedged on the social media following by the influencers.
Additionally, an evaluation of the social media platforms indicates aspects such as the ability by the contents to be shared and re-shared beyond the original following base. Through elements such as hashtags and re-tweeting, among others, such contents have a ripple effect online where they shift and expand their reach from the original following absent a significant spread online. To this end, Schivinski and Dabrowski (2016) argued that social media influencer marketing is one of the ideal strategies and platforms through which there is the possibility of expanding the reach beyond the original scope. Thus, this analysis states that the use of social media influencer marketing allows for an expanded customer base reach. This is value adding strategy as it enables entities to use a low budgetary allocation while accruing a high-value index from the marketing functions.
Conceptual Framework and Literature Gap
Based on the established study findings, this analysis develops a critique of the existing literature and as such, established the existing study gap. It is pegged on the difference that a conceptual study framework, that guided the study was developed. A critical examination of the above findings indicates an expansive reach of the existing conclusions. However, a critical evaluation demonstrates that a majority of the results have been in the Western and the Asian market contexts. This means that there are minimal study and literature focus on the Middle East and in particular, the Saudi Arabian market context. As such, this created the need to develop an empirical finding with a Saudi Arabian background. The conclusions of the analysis would help illustrate if the role and effectiveness of social media influencer marketing in other markets are replicated in the Saudi Arabian context. In addressing the study goals and needs, the analysis was pegged on the below developed conceptual framework.
Figure 3: The Study Conceptual Framework
The above figure analysis was the adopted conceptual model. The model variables indicate the actual measures and extent to which effectiveness was evaluated. The main focus of the study, as illustrated under the study aim and objectives, was to determine how effective the use of social media influencers was effective. As such, the study needed to demonstrate and determine the scope and measures of the effectiveness extent. This was established through the above literature analysis. It was shown that effectiveness in marketing could be measured through three different avenues including (a) the cost of marketing against the value gained, (b) the impact on customer trust and intention to purchase, and (c) the impact on the market goodwill in the form of the market subjective norms, respectively. The above variables formed the core basis for the creation of the above conceptual framework. The framework formed the basis for the study data collection and analysis.
Summary
In summary, this section has developed a critical evaluation and examination of the existing literature. The focus of the literature analysis was to establish the existing gaps and as such, establish a study conceptual model and framework. In its analysis, the study was guided by two main theories, the TAM and the TRA theories. Both theories indicated the rationale for using social media influencers and the impact they have, albeit theoretically on the customers’ purchase intention and decisions. In its critical analysis, the literature review demonstrated the value of social media influencer marketing. Among the listed and noted merits included the reduced cost of marketing, increased customer reach and trust, as well as the impact on the customer subjective norms thus impacting on their purchase decisions. The three avenues formed the basis of the variables used as a basis of evaluating how social media influencers marketing has been effective in the Saudi Arabian market context.
References
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