The effects of influencer endorsements on purchasing behavior in the Icelandic retail market

Abstract

Influencer marketing has experienced an exceptional rate of growth where social media has become the primary platform for influencer marketing, allowing brands the chance to use influencers to promote their products. The aim of the thesis was to explore the effects of influencer endorsements on purchasing behavior in the Icelandic retail market. Two qualitative research were conducted, which consisted of in-depth interviews with marketing managers and influencers. The interviews were conducted to gain a better insight into the process of influencer endorsements. To gain a better understanding of consumers’ perspectives on influencer endorsements and the potential influence it has on their purchasing decisions, quantitative research in the form of a web survey on social media was published. The results show that influencer endorsements can have an effect on consumers purchasing behavior by encouraging them to further familiarize themselves with the products advertised. Moreover, consumers are more likely to further increase their familiarity with a product when there is congruence between an influencer and the product being endorsed. Additionally, the results indicate that influencers play a role in influencing consumers’ product choices.Keywords: influencers, influencer endorsements, digital marketing, purchasing behavior, social media, word-of-mouth, match-up hypothesis