THE IMPACT OF ONLINE MARKETING INFLUENCERS ON CONSUMER
PURCHASE DECISIONS: A CASE STUDY OF GHANA
AUTHORS:
FRIMPONG, ALBERT OWUSU KHURSHED, ALAM
School of Business, Society & Engineering Course: Master Thesis in Business
Administration
Course code: FOA403 15 cr
Supervisor: Konstantin Lampou Date: 2020/06/08
1 ABSTRACT
Date: 2020/06/08
Level: Master thesis in Business Administration, 15 cr
Institution: School of Business, Society and Engineering, Mälardalen University Authors: Frimpong, Albert Owusu & Khurshed, Alam
(87/04/28) (92/03/15)
Title: The impact of Online Marketing Influencers on Consumer Purchase Decisions: A Case Study of Ghana Tutor: Konstantin Lampou
Keywords: Influencers, Online influencers, Online marketing and Purchase intention Research question: How does online marketing influencers affect consumer purchase in Ghana?
Purpose: The aim of this study primarily is to examine the impact of online marketing influencers on consumer purchase intention in Ghana. In doing so the factors that come to play to impact or to influence the decision makings of consumers would be examined. Method: In pursuing to achieving the purpose of the study, primary data was collected. This was done through a semi-structured telephone interview and data was collected from ten participants of diverse background including age, educational background and professional career.
Conclusion: Online marketing is trending in Ghana and a lot more consumers are getting involved. It is also apparent that people buy more fashion products online than any other category of product. Also, influencers use social media platforms to influence the purchase intention and buying behaviour of consumers and that several firms are deploying different strategies to attract the young generation and deliver value for money. To this end, influencers play a significant role in shaping consumer purchase intentions as they continue to expand their fan base. Also, social media platforms are becoming more useful and brands and retailers are adapting to them. By acknowledging the power of online marketing influencers, brands are innovating to remain relevant in the future and are exploring to create a space that connects both the digital and the physical world.
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Acknowledgements
First and foremost, we would like to thank God almighty for granting us grace and mercies throughout this journey of writing our thesis. We would also like to show our profound gratitude to our supervisor Konstantin Lampou and co-assessor Aswo Safari for their guidelines and directions in producing this paper. A special thanks go to our course mates who acted as opponents. Their contributions in making this paper a better one are invaluable. We would also like to show gratitude to all participants who accepted the challenge and gave us interviews. What else can we say to our families? We pour our hearts out to them for their enormous support and unquenchable love during this long stressful journey.
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TABLE OF CONTENTS Introduction
1.0 Background of study...5
1.1 Statement of the problem...6
1.2 Aim and research question...10
Literature Review 2.0 Source Credibility Theory...11
2.1 Match-up Hypothesis Model...12
2.2 Influencers and features of influencers...12
2.2.1 Expertise...12
2.2.2 Trustworthiness...13
2.2.3 Credibility...14
2.2.4 Attractiveness...15
2.3 Social proof and identifying influencers...16
2.4 Purchasing intention and online purchase intent...16
2.5 Factors influencing the purchase intention and online purchase intent...18
2.6 Conceptual model...18
Methodology 3.0 Research strategy...20
3.1 Data collection and procedure...21
3.2 Research sampling and procedure...22
3.3 Operationlization of the study...23
3.4 Data analysis and procedure...26
3.5 Ethics and confidentiality...26
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3.6.1 Reliability...27
3.6.2 Validity...28
Findings and data analysis 4.1 Theme 1: Trend of online marketing and consumer’s influencer knowledge...30
4.2 Theme 2: Online purchase intentions and contributing factors...33
4.3 Theme 3: The role of online marketing influencers...35
4.4 Theme 4: Features of marketing influencers...38
Conclusions and Recommendations 5.0 Conclusions...42 5.1 Limitation of study...43 5.2 Recommendation...44 5.2.1 Managerial implications...44 5.2.2 Future studies...45 6.0 Reference list...47 7.0 Appendix...53
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INTRODUCTION
This phase begins with an introduction to the topic under review. It further discusses the problem and why this thesis has to be studied, thereby, introducing the research question; how does online marketing influencers affect consumer purchase intention?.
1.0 Background of the study
The introduction of internet and telecommunication systems has made the world a global village and therefore, there is more inter-connectivity with the world with different people from all countries, cultures and ages (Starkov, 2003). This has influenced shoppers to trade online minimizing physical contacts with shows and malls which further enhances socialization (Starkov, 2003). In this regard, firms seeking to boost sales performance uses various marketing and sales strategies according to a social media report by Nielsen (2016). The internet has thus become a platform on which marketing and sales activities are executed in modern times, which has brought about the emergence of influencer marketing and online influencer marketing (Brown et al., 2007).
Mendoza (2010), states that influencer marketers are ordinary individuals who have built for themselves a brand name within the digital atmosphere, and they mostly dominate with social presence using Instagram, YouTube, Facebook, and other forms of social networking platforms. Influencer marketing, on the other hand, is a form of marketing that integrate all the activities that are targeted at building a sustainable relationship with individuals who have can exert influence on prospective buyers ( Wong, 2014).
(Senft, 2008), argues that an influencer is not necessarily a celebrity but any individual with the right connection and strong social pull. However, an endorsed celebrity will offer a different level of influence than a trusted friend who endorses the same products. Hence, identifying the
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right influencer is important because they impact the buying decision of consumers (Kim & Han, 2009).
A lot more consumers nowadays are active participants on social media, they follow certain personalities they consider influential and admire (Mendoza, 2010). A such, firms are leveraging on the mutual relationship between influencers and consumers to improve their sales (Mendoza, 2010). Akritidis et al. (2011), assert that influencers impact consumer’s decision making through a piece of synthesized information they share on a certain brand of a product. Consumers are therefore stimulated to buy one product over the other (Brown & Hayes, 2007). This activity is effectively achieved if the influencer propagates the information, at the right time and the right place (Wu, 2012).
Influencers share their lived experiences with their opinions concerning a certain subject, product or service all to impact consumer buying decisions (Wu, 2012). They do this through various media channels such as Blogs, Facebook, Instagram, Twitter and etcetera, a platform which consumers also share (Alsulaiman, Forbes, Dean & Cohen, 2015; Alhidari, Iyer & Paswan, 2015). Therefore, firms seeking to increase sales and popularise their product now delegate this aspect of their marketing activities to influencers, with the belief that they can influence their followers to like the products being endorsed by them (Solis, 2016).
1.1 Statement of the problem
The importance of marketing influencers cannot be overemphasized as their importance and the role they play in consumer decision making has been shown in some studies across the world (Courtney, 2019; Mangold & Faulds, 2009).
In developed economies, the role and impact that influencers play and have on consumer decision making have been well established. Example, a study by Pew Research Center in the
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US showed that 69 percent of American adults use social media and further stated that their buying decisions are as a result of recommendations, opinions and pieces of information they receive from personalities they consider influential and have affection for (Courtney, 2019). Similarly, Eurostat’s survey in 2016 on the availability of information and communication technologies (ICT) revealed that 79 percent of the population in the European Union who are between 16-74 use the internet almost every day. By their assessment, two-thirds of the internet users had used the internet to purchase one product or the other, a purchase decision they make because some sort of a celebrity (influencer) had endorsed such product ( Eurostat, 2016).
The impact of influencers has also been studied further in even relatively less developed economies such as India in Asia. A study conducted by Sudha and Sheena ( 2017) on the impact of influencers in consumer decision making in the fashion industry revealed the tremendous impact influencers have on consumers’ decision making. In their study, it was revealed that a majority of about 57.5 percent buy one cosmetic product or the other based on celebrity endorsement of those products. In the view of consumers, the opinions of influencers carry weight and they see them as experts in their own right (Sudha et al., 2017). The authors argued therefore that influencers thus play a significant role in consumer decision making, and determine what and what not to buy since their opinions in the view of consumers are sacrosanct.
Additionally, the subject of influencers and their impact on consumer decision making has been studied in other areas such as tourism and culture in other jurisdiction (Chatzigeorgiou, 2017; Magno, 2017; Francesca et al., 2018,). According to Francesca et al. (2018), the phenomenon of using social influencers for endorsement purposes even in this area is on the rise since the influencers exert a huge influence on their followers and can affect their buying decisions.
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However, in the context of Africa, the subject of marketing influencers is not new per se especially in the supposedly bigger economies such as South Africa. Nonetheless, the impact of marketing influencers on consumer decision making has not been broadly studied compared to other continents as discussed earlier. Meaning there is little or no empirical study on the impact influencers have on consumer purchase decisions. Researchers who however have attempted to study in this area mostly focus on South Africa which is among the biggest economy in the continent, and also focus on the broader subject of ”social media” and its impact on consumer behaviour.
Example, a quantitative study conducted by Yavisha et al. (2013) in South Africa on ”exploring the youth market” concentrated on social media browsing and its impact on consumer behaviour. It was found out that a majority of 92 percent of the respondents reported that social media does influence their buying decisions but the role influencers play was not reported. A later study conducted by Carew (2015) on ”Online Environmental Activism in South Africa” only concentrated on the use of Twitter for communication purposes. In the findings, it was established that influencers were loosely mentioned by respondents regarding the impact they have on their behaviours.
From the practical point of view, a report by renowned business and economic journalist Finbarr (2017) indicates that a lot more Africans are now on one social media platform or the other and follow some influencers ( celebrity, blogger, journalist ect), and further claims that their presence on social media has not only changed their communication channels but also their consumption behaviours. To this end, it can be inferred that influencer marketing is fairly a novel concept in Africa even among the relatively developed markets there and a such a possible lack of enough literature available, specifically how marketing influencers impact consumer decision making. In this regard, this study seeks to fill in the gap to an extent by
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examining the impact of online marketing influencers on consumer decision making using Ghana as a place of focus.
According to the Ghana Business News report (2019), there is a considerable increase in the number of consumers who make one or more purchase via the internet. It is indicated that a lot more consumers now have access to digital gadgets such as smartphones, and there are more middle-class consumers and tech freak youths, for which reason online purchase has seen a surge in Ghana over the past few years (Ghana business news, 2019). In a survey conducted by Ghana Business News titled “Digitize or Die”, it was found out that businesses are exploiting social media for their marketing purposes and the more established firms do so through the use of some active marketing influencers for both marketing and communication purposes.
Furthermore, Oxford Business Group report on Ghana indicates that factors such as the resilient economy, rise in population growth and urban settlement are having some positive impact in the Ghanaian marketing environment (Oxford business group, 2019). The report indicates that internet shopping over the years was not the norm due to poor internet infrastructure, however, in the more recent years, a lot more of Ghanaian consumers desire to use the internet for making a certain purchase because comparatively, internet services currently are now good and relatively cheaper than before. Also, Ghana’s internet user in 2017, was estimated at 10.1 million according to Oxford Business Group (2019). For this reason, internet transactions, both selling and buying has been on the ascendency making e-commence more viable in the country (Oxford business group, 2019).
As more consumers see it as a norm to make purchases via the internet in modern times, it will be interesting to know how their purchasing decisions are affected by utilizing online marketing influencers. This is important to the extent that, as established in the Ghana business news
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report, some firms use online marketing influencers for their marketing and communication purposes and as such would be interesting to study how these influencers impact consumers decision making in Ghana.
1.2 Aim and research question.
This study aims to examine the impact of online marketing influencers on consumer purchase intention in Ghana. In doing so the factors that come to play to impact or to influence the decision makings of consumers would be examined. In this regard, the below research question would be posed:
a) How does online marketing influencers affect consumer purchase intention in Ghana? The aim of the study is relevant to the extent that theoretically, it will fill up the gap of missing literature on the impact of online marketing influencers in Ghana. More specifically it will serve as a blueprint for further studies by other researchers with similar interest in the subject matter.
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LITERATURE REVIEW
Chapter two of this study on assessing the impact of online marketing influencers on consumer purchase decisions examines theoretical and conceptual review on the study. It discussed two relevant theories, the source credibility theory and match-up hypothesis theory. It further discussed other subjects which we deem beneficial to the study.
2.0 Source Credibility Theory
Ohanian (1990), posits that source credibility is an accepted trait of advocators leading to an acceptance of the message being propagated to the target audience. Attractiveness and trustworthiness is a major dimension in this model (Park & Lin, 2020). Attractiveness refers to the familiarity and likeability of the source (the endorser) which affect the objectivity of the consumer during purchase decision making (Brain & Busler, 2000). It is deduced that consumers develop certain affection for their attractive celebrities and this positive attitude transmit to the acceptance of products being endorsed by them (Park & Lin, 2020). In other words, a likeable celebrity may influence the purchase decisions of consumers.
Trustworthiness, on the other hand, is consumer’s perception of honesty, belief and integrity for the endorser Brain and Busler (2000). They argue that this dimension of the model is critical especially when the products being endorsed do not require the endorser’s expertise. Hence, Chung and Cho (2017), assert that celebrities perceived trustworthy highly affect consumers attitude towards a brand and equally affect their purchase decisions. This implies that when judgement passed on endorsed products are perceived valid, consumers will make a buying decision in favour of the products and vice versa (Djafarova et al., 2017). The importance of source credibility model in this study is to address the issue of trustworthiness and attractiveness in the conceptual model.
12 2.1 Match-up Hypothesis Model
Match-up hypothesis is another relevant theory that is employed by some scholars when examining influencers and consumer purchase intentions or decision making (Brain et al., 2000). The theory shows that endorsers (influencers) will receive greater output when there is a “fit” between the endorser and the endorsed product (Kamins, 1990). For this study, the term fit will be explained as the compatibility of the influencer and the product being endorsed. To ensure effective communication between the sender (influencer) and the receiver (consumer) there must be evidence of compatibility between the endorser and the product (Seiler et al., 2017). The model also stresses the need for a match-up between the influencer and the consumer as it solidifies the relationship between them (Choi & Rifon, 2012).
The issue of credibility has also become relevant in discussing this model in recent times. Example, Stafford et al. (2002) suggest that there will be perceived credibility in the message communicated if Harrison Ford endorses a restaurant than a bank. Meaning, consumers will view endorsers and their messages as more credible and would be persuaded if there is an element of fit (Lawrence et al. 2006).
The main focus of the match-up hypothesis has been on the physical attractiveness of the endorser, however, to utilize this model effectively the endorser credibility has to be considered and evaluated (Stafford et al., 2002). The essence of this theory is justified in this thesis because it will examine the element of credibility in the conceptual model as admonished by Stafford et al.
2.2 Influencers and features of the influencers
2.2.1 Expertise
In this study, expertise will be defined as having knowledge or experience with a product. The match-up hypothesis theory mainly focused on the physical attractiveness of endorsers, a point
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which has been criticized in further studies (Lynch and Schuler (1994; Brain et al, 1998). According to Brain et al. (1998), in their study of ”attractiveness versus expertise,” it was established that consumers put more premium on expertise than mere attractiveness of product endorsers do endorse, however, not to underestimate the importance of the later on their purchase decision making. Lynch et al. ( 1994) also illustrated the relevance of expertise showing that there would be perceived expertise when a muscular endorser endorses gym equipment than any other individual. A later study suggested that the perceived expertise of endorsers is closely associated with consumer purchase intention than only physical attractiveness (Holt, 2002). In effect, perceived expertise is more useful than physical attraction, hence, consumers react more positively when they perceive an endorser has knowledge or experience consuming a product ( Holt, 2002).
2.2.2 Trustworthiness
Consumers perceive trust as the degree of confidence that a source is motivated to communicate valid assertions Willemsen, Neijens, Bronner and Ridder (2011). It is argued that this feature is most relevant when influencers are endorsing a service because, the impact can only be felt post-purchase and consumers have no benefit of seeing prior payment (Brain et al., 2000). In an online market setting, consumers can neither physically touch, sense nor interact with the product and the seller (Beldad & Steehoud, 2010). Thus, people experience high uncertainty hence, trust is a key ingredient to form a positive purchase decision and therefore, with the absence of trust, people will be reluctant to interact online (Beldad & Steehoud, 2010). According to Beldad and Steehoud (2010), trust is generally related to reliability and confidence. Meaning, a person’s willingness to be vulnerable and predict that other people will perform well toward them. Influencers trust, therefore, becomes extremely important if they are to have a positive impact on consumer decision makings. By delivering trust and transparency,
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online influencers can build long-term relationships with their followers (Liat & Wuan, 2014). Trustworthiness is a critical condition for repeated buying in that if a consumer gets satisfaction in a service or a product endorsed by a celebrity it influences his or her decision positively in future buying decision making and vice versa (Djafarova et al., 2017).
2.2.3 Credibility
In the view of Chu and Kamal (2008) perceived credibility is an important feature through which influencers become effective promoters or endorsers. In an online setting where consumers are denied the chance to feel and touch a product before purchasing, the credibility of the endorser thus becomes a vital persuasion factor to the consumer (Everard & Galetta, 2006; Pornpitakpan, 2004b). According to Metzger (2007), the excessive reliance on social media for information by people and the relatively cheaper means for people to upload information on the internet has raised the issue of credibility of online information. Metzger (2007) in referencing Hovland et al. 1953 defined credibility as the ”believability of some information and or its source.” With this in mind, it is thus believed that message receivers do judge the credibility of the information they receive. Freeman et al. (2004) assert that the credibility of the received information is judged based on objectivity, which is quality and accuracy of the information as well as judging by subjectivity which is the trustworthiness, expertise and attractiveness of the source.
Metzger (2007) posits that there is a plethora of information from several sources both trusted and untrusted, and further states that in this digital era, everyone at all can be an author and disseminator of information, hence credibility of the sources of information has become more necessary than ever before. Accordingly, Walthen et al. (2002) had earlier proposed a model for users to evaluate the credibility of online information. They proposed a three-way step firstly, users impression on the site credibility by examining features like colours; typo errors
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etc.. Secondly, the credibility is evaluated by examining the characteristics of the source such as trustworthiness and expertise. Lastly, by examining the mental state of the user at the time of the evaluation. However, for this study, the first two steps are relevant for the researchers. Credibility has thus become essential to the growth of bloggers and micro-celebrities if they are to have a long-lasting relationship with followers, as it enhances their effectiveness, media image and self-brand (Chu & Kamal, 2008). There is a correlation between influencer perceived credibility and consumer purchase intent in that, the higher the influencer credibility the higher the consumer purchase intent (Silvera & Austad, 2004).
2.2.4 Attractiveness.
Physical attraction is judged by people to mean weight, height and facial beauty (Agam, 2017). This thought of physical attraction creates certain perceived credibility on an endorser and positive stereotype of such people (Ohanian 1990, 1991). Agam (2017), asserts that physically attractive endorsers are more successful in changing the belief system of consumers compared to unattractive endorsers. In other words, a physical attractive endorser can influence a customer to choose one product over the another, hence, marketers employ the services of attractive celebrity endorsers for their promotional purposes (Said et al., 2015). However, there must be a match-up between the influencer (the endorser) and the endorsed product, as that will raise the advertisement outcomes ( Friedman & Friedman, 1979). Agam (2017) affirms that If the physical attractiveness of the endorser is related to the product being endorsed, consumers tend to be persuaded and make a favourable purchase decision for the product. Another study equally affirmed that attractive celebrities do well and are a better fit in endorsing products that are used to enhance one’s self and that consumers make favourable buying decisions for such products (Brain et al., 2000). According to a research on the Physical Attractiveness, Expertise, and the Role of Fit on Brand Attitude, Purchase Intent and Brand Beliefs, Brain et al., (2000) found out
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that some consumers even associate expertise with celebrities they consider attractive and therefore are persuaded to make a purchase on products they endorse.
2.3 Social proof and identifying influencers
Identifying influencers is a very important role of companies and those identified must be able to use their influence to generate higher sales and bigger profits (Galeotti & Goyal, 2009). The process might seem difficult but achievable (Kirby & Marsden, 2006).
Baer and Naslund (2011), argue that social proof is what makes a person acceptable and legitimate in social media circles. Influencers boost their acceptability through the conversation they initiate, frequent engagement with followers and the level of trust their followers perceived them to have (Baer et al., 2011). Online social proof is mostly indicated by the number of “Likes”, comments, shares, or retweets a person receives. However, they argued that the number of followers is a sign of popularity and not good performance. Furthermore, Baer et al. (2011) posit that it is the influence that matters and not mere popularity. Marketers, therefore, focus on seeking influential influencers whose fan base is characterized with responding and commenting, a position that is affirmed by (Schaffer, 2013). Influence is measured by the degree of followers involvement. For example, feedback on e-mails and purchases and future purchases as a result of a referral link.
2.4 Purchasing intention and online purchase intent
One of the major facts and central to online purchasing is the intents that one carries. The desire of researchers to look into the subject of purchasing intent is as a result of consumer buying behaviour, the two are interrelated (Goyal, 2014). Studies have shown that intentions are indicators of to what extent are people willing to show a certain behaviour and how much efforts
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are exerted in wanting to show that behaviour (Ajzen, 1985), in essence, intentions are strong signs of future events (Vineyard, 2014).
Meskaran et al. (2013), defines online purchasing intention as the willingness of a consumer to make online transactions. To make a purchase online is a process which begins first of all with an intent. This triggers the consumer to browse products, which may result in the final purchase of the said product (Vineyard, 2014). Vineyard, therefore, concludes that purchasing intention is the likelihood of a customer to buy a specific product or service. In the view of Goyal (2014) purchasing intention is also the propensity to make a future purchase of a product.
Moreover, the idea of purchase intention could be linked to the components of consumer cognitive behaviour, thus how consumers plan and intend to buy a certain product or procure a certain service (Hosein, 2012). To have an intention and finally make a purchase, consumers will have to gather pieces of information, evaluate them and make a determination all through their former experiences, preferences and external environment (Chi, Yeh, & Tsai, 2011). By implication, purchasing intent has a significant bearing on actual purchase decisions. Hence, marketers treat even purchase intent as an important purchasing factor because it is connected to their desire to maximize sales and increase revenue (Hosein, 2012).
However, it is instructive to know that online purchasing differs from the traditional offline purchase that the ordinary consumer is used to due to the intangibleness involved in online purchases (Hong & Kim, 2011). The upsurge in online purchase has afforded consumers some level of convenience and flexibility in terms of time and the opportunity to review information on a product before making a purchase (Shareef, et al. 2015). According to research, consumers are sometimes sceptical when making an online purchase due to the lack of opportunity to feel a product before buying (SastryT et al. 2017; Shareef et al., 2015). To help mitigate this challenge and to encourage an online purchase and repeated buying, firms must enhance the
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reliability of engaging in online purchases. Ling et al. (2010) therefore, proposes that to influence the decision making of an online consumer there must be an element of trust. Hong and Kim (2011), assert that consumers trust level for a certain product helps them to determine whether to make a purchase or not. To that extent, the lack of trust in an online purchase is, therefore, an important problem facing electronic commerce (e-commerce) development (Liu, He, Gao, & Xie, 2008).
2.5 Factors influencing the purchase intent and the online purchase intent
Fashion consumers routinely gather information from advertising magazines, celebrities, online peers, and bloggers upon which they make their decisions, consumers, therefore, go through a series of a tedious task to select their fashion preference (Beer, 2015), it requires detailed involvement of one’s self. The modern fashion community is largely influenced by journalists, celebrities, bloggers and brand advocates, these are influential individuals who impact customers purchasing decisions (Belch & Belch, 2003). They turn to dictate what becomes a trend due to their perceived expertise, position and authority and often succeed in influencing consumers on “must-have” fashion (Brown & Hayes, 2007). By implication, the contemporary consumer is significantly influenced by social influencers to a greater extent than before. 2.6 Conceptual framework FEATURES OF INFLUENCERS Credibility Expertise Trustworthiness Physical attraction ONLINE MARKETING INFLUENCERS PURCHASE INTENT
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Figure 1: The impact of online marketing influencers on consumer purchase intent/decision The model above depicts that marketing influencers and purchase intention are very much connected as affirmed by Belch and Belch (2003), although indirect as is the case in this model because there are mediating variables. The features of influencers example (attractiveness, trustworthiness, authenticity and credibility) serve as the mediating variables or the link between the influencers and purchase intention. The model explains that before consumers could treat the messages, opinions and information of online influencers they like and follow upon which their purchase intentions are influenced, there must be certain positive characteristics present. Hence, online marketing influencers according to the model must possess these traits and upon that consumers will see them as worthy enough to listen to when they share the opinion of a product or a service.
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RESEARCH METHOD
This chapter deals with the methodology employed in writing this thesis. Arguments were made for why this study is qualitative in nature. It further discussed the purposive sampling used and the entire procedure in collecting the data. This follows with building arguments for the analysis technique employed in analysing the data, which is the narrative analysis technique.
3.0 Research Strategy
The purpose of this research is to examine the impact of marketing influencers on consumer decision making in Ghana. To achieve this objective a qualitative study had to be conducted to gain insightful exploration of the subject under study. To justify this approach for this thesis, what qualitative research is and when it is most applicable has to be explained.
Qualitative research is explained as a form of a systematic and or procedural empirical study into a phenomenon Shank (2002). It is a method that ”attempt to study things in their naturally occurring settings without any intervention or manipulation of variables” Nassaji (2015). Qualitative research is interpretive, and it examines things in their natural environments therefore, researchers attempt to make sense of a phenomenon according to the meanings people bring to them Nassaji (2015). It is inductive and examines things based on how individuals see their social world (Bryman & Bell, 2015). By this, findings will be made from the participants’ true and real experiences rather than the researcher’s own formed assumptions (Cunningham and Haley 2000).
This approach is justified and appropriate for this thesis because it will enable the researchers to explore the topic into details from the viewpoint of the respondent (consumer). An in-depth understanding of the subject will be obtained. Secondly, this approach is applicable where there seems to be a lack of enough literature under certain circumstances and this seems to be the
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case in this current study. As already mentioned, the subject matter in this thesis is a novel one in Ghana and therefore there is a limited or almost no literature available. Hence, through a qualitative approach, the researchers can elicit enough opinions from the participants about the topic being studied.
3.1 Data collection and procedure
To achieve the objective of this study which is to catch from the viewpoint of consumers what impact marketing influencers have on their purchase decisions, some data sources were employed which has been identified below. One such source is the primary data, and according to Bryman and Bell (2011), primary sources are direct sources from which the researcher directly collects data that have not been previously collected. In soliciting for the primary data a semi-structured interview was conducted. This was done to minimise the use of assumptions by the researchers which might not be factual in this thesis. This also will help to establish the true reflection of the respondent’s sentiments about the subject.
Bryman et al. (2015), posit that interviews are often adopted for exploratory kind of studies. And a lot more of marketing influencers who used qualitative approach also adopted interviews to obtain the real experiences of the participants Courtney (2019). For this thesis, a semi-structured interview was used. A Semi-semi-structured interview is a type which has “some degree of predetermined order but still ensures flexibility in the way issues are addressed by the informant” (Longhurst, 2003). This method was adopted so that interviewees could speak freely thereby presenting an opportunity to the interviewers (researchers) to elicit more robust responses. Apart from the primary data, other sources of data were collected to build the literature review and to generate a conceptual model. An example includes Google scholar, MDH library search and published marketing reports.
22 3.2 Research sampling and procedure
Before to the main interview for this thesis, it was necessary to determine the suitability of the participants for the interview questions and broadly for the objective of this study. Hence, a pre-interview was conducted via telephone. The subject matter of this study was introduced and the skeletal interview questions relating to the topic was asked. This was done to establish the prospective participant’s knowledge in the subject matter under study.
The participants that were chosen for this study comprises of ten individuals of diverse professional and educational background with different gender groups and age groups. All participants are Ghanaians and were obtained through the social network of one of the researchers who also is a Ghanaian. Participants were contacted via telephone because the researcher has an established relationship with them and it was easy to reach them through that channel. The number of participants available for this thesis was the saturation point for the researchers since they were the people confirmed to have met all criteria for selection, and therefore are considered relevant for this study because the researchers can solicit from them rich data for making analysis.
Their selection is based on purposive sampling and is in line with the recommendations of Saunders, Lewis and Thornhill (2009). The purposive sampling method also known as judgemental or selective sampling is a non-probability sampling where the units that are to be investigated are based on the judgement of the researcher ( Saunders et al. 2009). The main goal here was to focus on particular characteristics of a population that are of interest, which will best enable the researcher to answer the research question and obtain the objective in this study. The criteria for selection were based on the following:
(i)Respondents who have social media accounts and/ or read blogs/online content (ii) Respondents who use social media to communicate (iii) Respondents who are aware of influencers (iv) Respondents who have purchased online at least once in their life.
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See figure 1 in the appendix for the profile of respondents. 3.3 Operationalization of the study
Each participant was interviewed with the general structured questions from the researchers. The questions were mainly open-ended questions to allow the participants to express their views on the subject matter. However, when a follow-up question needed to seek clarification on a point made the interviewer jumped in. The questions were asked having in mind the theories discussed and the literature reviewed.
The first phase of the interview comprised three sets of questions and these were intended predominantly to investigate the trend of online marketing in Ghana and also to investigate consumers in-depth knowledge on online marketing influencers. The second phase was to investigate the subject of online purchase intentions and its contributing factors. To do this, two major questions were posed but with further follow-up questions. To fully understand the roles of online marketing influencers on consumer purchase intentions the third phase of interview questions which comprised three major sets of questions were asked. This phase also sorts to examine the impact of influencers on consumer purchase intentions. The last phase had two sets of questions which sort to examine what features of influencers do consumers consider important which every marketing influencer has to possess.
NO. QUESTION PURPOSE THEORY AND
CONCEPT
1 Do you buy a product online? Why? To examine the trend of online marketing in Ghana and also
The trend of online marketing in Ghana.
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the purchase intent of participants.
2 Which products do you mostly buy online? Why?
To examine if respondent product choice matches with their personality.
Match-up theory. (Seiler et al., 2017; Kamins, 1990).
3 What influences you to buy online? To examine participants’
purchase intentions.
Consumer purchase intent. (Goyal, 2014; Vineyard, 2014)
4 Are you aware of any marketing influencer who sells online in Ghana? (Blogger, celebrity etc.)
To examine the element of social proofing and also match-up theory
Social proof (Schaffer, 2013; Baer and Naslund (2011
5 Do you follow any of such influencers? Why?
To examine if
respondents celebrity type matches with their personality
Match-up theory (Seiler et al., 2017).
6 How often do they share information on their media handles?
To know the functions that the influencers play through their media handle.
Role of online marketing influencers
25 7 Do you adhere to the
recommendations and opinions they share? Why?
To know how consumers view and accept the advice of influencers
Source credibility theory (Ohanian, 1990)
8 What do you consider before buying products endorsed by a marketing influencer?
To further probe to know what inspires consumers to buy products endorsed by a certain influencer
Purchasing intention and online purchase intent
9 How do you ascertain the validity of the information they share on a product? To determine further how consumers evaluate sources of influencers information Source credibility theory.
10 How important do you find marketing influencers advertising online? To determine the relevance of the marketing influencers in consumer decision making Role of online marketing influencers.
26 3.4 Data analysis and procedure
Narrative descriptive analysis was used in analysing the data obtained from the interview to have a meaningful, valid and reliable conclusion, and make relevant recommendations. Anderson (2007), explains this as a descriptive or narrative presentation of qualitative data collected through interviews. It involves finding patterns and themes to aid in the analysis (Anderson, 2007).
Following the principles of this method and for this thesis, the researchers first needed to familiarise themselves with the collected data. To do this all recorded audios/tapes obtained through the telephone interview were transcribed initially into manual writing and later transferred to word document with added comments from the researcher. This was done so that there will be no information lost and researchers can have access to the information at any point in time as recommended (Saunders, et al. 2012).
After the familiarisation through transcription, the data were summarized and further put in different categories and well structured. This the researchers did so that a relationship and themes could be established. A common pattern was identified and such were placed in a common theme for analysis.
3.5 Ethics and Confidentiality
Issues of ethics and confidentiality are important and therefore has to be observed to the highest point in conducting any studies ( Bryman & Bell, 2015). This assertion is not different in writing this thesis. According to Saunders, Lewis and Thornhill (2015), researchers must open up and be transparent enough if they are to get a participant’s full cooperation in conducting their studies. In this regard and for this thesis, ethical and confidential matters were duly observed. For example, respondents were informed on the purpose of this study and that it was for academic purposes and nothing more. Upon that their permission was sought for a recorded
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telephone interviewed before they were considered. Most especially, they were assured of anonymity since they were required to share their personal life experience concerning the objective of this thesis. Hence, respondents have been referred to as PARTICIPANT 1, PARTICIPANT 2 etc in this thesis.
3.6 Reliability and Validity
For a research paper to be generally accepted certain key precautions has to be taken, if the paper is to contribute to the knowledge of field such as reliability and validity (Bryman & Bell, 2015). The term reliability and validity have been cautioned against in qualitative type of research as its use questions the quality of the study (Stenbacka, 2001). On the contrary, some has argued for these terms since it causes no harm to the study. Patton (2001), posits that reliability and validity are important elements to be considered in a qualitative study as it enhances the quality of the study.
3.6.1 Reliability
Reliability is the extent to which a research method will produce the same result if they were to be conducted at another time (Golafshani, 2003). However, due to some influential factors such as changes in time and circumstances a result derived through a certain research method is not necessarily required to produce exactly that same result (Marshall & Rossman, 1999). It is therefore important to document all research processes to aid other researchers to understand the method used in future studies (Marhall et al., 1999).
For this thesis to past the reliability test and having in mind the relatively newness of the subject matter, all procedures and protocols were fully documented and reported to help readers and future researchers to understand the methods used. To enhance reliability in this study, all
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interview question responses were documented as said by the respondents, and to avoid wrong assumptions further clarifications were sort on answers where necessary.
3.6.2 Validity
In the view of Thomas et al. (2011), validity in qualitative research is the presence of elements that allows respondents’ shared experiences to be felt by readers. In other words, when other persons who share the same experiences can connect with the documented participants’ experiences then qualitative research is said to be valid. Golafshani (2003), asserts that some qualitative scholars have argued against the term validity in qualitative studies, but stressed the need for some form of a check to approve their work.
For this thesis to pass the test of validity, Patton (2001) suggestion of triangulation in qualitative research was used. Triangulation is a strategy usually employed to evaluate the findings of the research (Golafshani, 2003). According to Patton (2001), this approach combines different methods in protecting the sanctity of collected data. Accordingly, in this thesis, all interviews were recorded and notes were taken which they were further reviewed. This processes became necessary because the researchers did not forget the fact that some information could be lost during transcribing which could lead to making wrongful analysis and conclusions. To also avoid information overload and possibly loss of some data a relatively small number of respondents were used which in the view of the researchers were participants who could provide rich data to achieve the objectives of this study.
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FINDINGS AND DATA ANALYSIS
All findings received from participants during the interview was duly recorded upon. Themes were formed out of the transcribed data, upon which analysis was made using narrative analysis technique.
4.1 Theme 1: Trend of online marketing and consumer’s influencer knowledge.
When asked whether the participants buy products online, all the participant representing 100 percent revealed that they buy one product or the other from online. Some revealed that they get advertisement and sometimes recommendations on their social media platforms. Even though it is not all products they buy online, there was some form of attestation that from time to time they do buy some products online. Several reasons were given by different participants as to why they buy products online and the issue of ” it is the trend” was dominant. Example, participant 2,3,5 and 7 mentioned the issue of convenience as a primary reason they buy online. Participant 5 mentioned specifically that ”it is now a common practise so i also have to partake in it”. Equally, participant 4 also mentioned it is an ongoing trend and also mentioned that it saves time to purchase online especially when you are the busy type. Participant 1 however, had no specific reason(s) but only mentioned ”when it is necessary i do buy online”. In a follow-up question to ascertain what their understanding of marketing influencer is, the respondents indicated that social media influencers wield influence using social media platforms to sell products.
When asked about the type of products that the participants buy from online, it came to light that several products were mentioned from various product categories. It was not surprising to know that participants products choice was hugely dependant on one’s gender. Female participants buy female dominant products and male participants mentioned male dominant
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products. Participant 2 said, ”like a lady, it is obvious i will shop for bags, dress, shoes and make-up”. Likewise, participant 8 said, ” you should know i will definitely mention things like dresses, cosmetics and bags”. However, participant 6,9 and 10 mentioned electronic products such as TV and sound system. Specifically, participant 9 said, ”recently i purchased a Hisense television and i did that online”. He indicated that as a young man i should, by all means, have a television in my room. Participant 4, however, prefer to buy things like wristwatch from online.
When asked about whether they are aware of any social media influencer who sell online, the participants mentioned celebrities like Stone boy (Musician), Shata Wale (Musician), Nadia Boari (Actress), Nana Am Mackbrown (TV personality and actress) and Nana Aba Anamoah who is also a television personality. There were others such as Kwami Sefa Kayi, (Radio personality), Funny Face (Commedia), Kojo Nkansah (Actor) Akwasi Boadi (Actor) and Jackie Appiah (Actress), Bella Mundi (Radio personality). Two celebrity names were dominant, Mackbrown and Kwami Sefa Kayi (KSK). It was revealed that every celebrity sells one product or the other that is quite different from what other celebrities does. One participant indicated that KSK whom i follow do endorsements for Shell petroleum and Unilever Ghana which i haven’t seen any other celebrity ever doing. The participant thinks that KSK has developed a certain image for himself which fit the profile of the companies for which reason he has been given such endorsement responsibilities. Another participant indicated ”Hisense is Macbrown and Macbrown is Hisense”. People have come to accept that Macbrown is the face and ambassador of Hisense products. ”To me, she can’t do anything better than this”, according to the participant. A participant said, ”Jackie Appiah we all know is very beautiful and i am not surprised at what she does promote”. When participants were asked if Funny Face the
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”comedian” would be good for a bank advertisement, it came out that it will be a wrong call since the celebrity involved is not noted for that.
By these findings, it is an indication that a lot more people are becoming aware of the phenomenon; marketing influencers and online marketing. This is so to the extent of participants stating that to buy online is now a trend. This position seems to agree with the view of Finbarr (2017). According to him, a lot more Africans are now on one social media platform or the other and follow some influencers. The participants also confirmed the point of Finbarr (2017) that by virtue of their being presence online could affect their consumption behaviours. Participants showed that from time to time they do buy one product or the other from online. By implication, consumers buy products that are advertised on the internet. This could be either on social media platforms or on other internet applications. In effect, if they buy from online, they are likely to be motivated by an online marketing influencer. This position could be valid because according to literature firms who seek to boost their sales target hire the services of marketing influencers to use their platforms to sell their products Mendoza (2010).
The participants believed that the form of influencers varies depending on the type of products that they are selling. This point suggests meaning that some influencers will be noted for a common product category, while others will market for every product once they get the opportunity to do so if it fits their personality, as argued by the match-up theory (Kamins, 1990). The literature posits that to raise the advertisement outcomes there must be a fit between the endorser and the product (Friedman & Friedman, 1997). Accordingly, as revealed by the findings, consumers on a regular basis will shop for products that match with their personality type as all female participants opted to buy female dominant products. In effect, marketing influencers must endorse products that fit with their personality type as they are likely to catch the attention of consumers as established by Agam (2017). According to him, if the physical
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attractiveness of the endorser is related to the product being endorsed, consumers tend to be persuaded and make a favourable purchase decision for the product.
It is deduced that these influencers do influence their followers a lot when it comes to buying one product or the other. However, a majority of influencers would have a greater effect on their followers when they endorse a fashionable product. This could be so because these are well attractive personalities, and promoting products that enhances ones’ attractiveness would naturally be accepted. Fashion product also matches with their personality type and as suggested in the match-up theory consumers will develop a positive buying behaviour towards this Kamins (1990)- influencers will receive greater output when there is a “fit” between the endorser and the endorsed product.
4.2 Theme 2: Online purchase intentions and contributing factors
In responding to what influences participants from buying online, some respondents indicated that buying online makes products accessible to them and can make their choices properly before that actual purchase. Participant 5 also revealed that she gets influenced to buy online when people within her circles endorse such a product.” as for me when someone i know tells me something is good most times i am tempted to try it provided i can afford, and i find nothing wrong with that”. The interview also revealed that respondents get influenced sometimes if they notice the product they would like to have has been used by someone important (influencer). Here fashion products were dominant according to the examples they put out. One female commented, ”imagine attending a ceremony and i find Bella Mundi wearing the same dress like mine, it will be very nice”.
In responding to what considerations they do consider before buying products endorsed by a marketing influencer, some of the participants mentioned they would first consider their personal experience with the product if they have used it before. Participant 1 directly said” i
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consider my personal experience with the product and also ask how credible is this person endorsing? Participant 6 also said, ”for me, trust and credibility are important especially if i haven’t used the said product before”. Participant 4 was of the view that he mostly considers the quality of the argument and persuasive strength of the influencer as a vital requirement. ”Website” was mentioned as a factor to consider since some respondents previously have had a bad experience shopping from a certain website. ”I once bought something from a certain website and trust me it was bad. Since then i always check the credibility of a website before buying anything from there. I don’t even care if the product has been endorsed by someone i like and follow” according to a participant.
By these findings, there is an indication that there are multiple factors that influencers or would influence a consumer to purchase online. Even though buying online can be disadvantageous as what is seen online might not be exactly the case, it helps to make a good choice of a brand they want. This point of disadvantages involved in online purchase is supported by the literature. According to (SastryT et al. 2017; Shareef et al., 2015), consumers are sometimes sceptical when making an online purchase due to the lack of opportunity to feel a product before buying. However, through the mode of advertisement, a consumer’s purchase decision could be tilted. Participants believe that social media offers influencers the opportunity to generate conversation, drive engagement and set a pattern that creates trust for the brand being advertised, a position which seems to agree with literature. Influencers boost their acceptability through the conversation they initiate, frequent engagement with followers and the level of trust their followers perceived them to have (Baer et al., 2011), a process which could impact consumer’s decision making during purchase.
Also, as it was indicated by a respondent, referrals have the tendency to impact on consumers purchase intention. This assertion is reflected in some studies as indicated by Pemberton (2016), that over 70 percent of consumers make purchases through recommendations by others. By this
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revelation, it is indicative that online consumers will take referrals from influencers (celebrities and bloggers) if they are to be employed by brands for advertisement purposes. According to Pemberton (2016), influencers in niches such as fashion and beauty hold a significant amount of influence of consumers who patronise those products. In effect, their recommendations and referrals will be wholly accepted, a situation which contributes to consumers purchase intent. As recorded in the findings, consumers get influenced sometimes if they notice the product they would like to have has been used by someone important (influencer). According to literature, this user-generated effect is more common among the ”Generation Z” (young adults) group, as stipulated by Pemberton (2016)- a majority of 84 percent of young adults groups get influenced to make a purchase due to user-generated effect. Indeed, while influencers and peers may hold the most influence over young adults purchasing decisions, it is deduced that consumers will be greatly influenced when they are engaged as indicated by Baer et al. (2011). Once they are engaged, they are likely to become loyal to the brand and therefore their purchasing decisions would be influenced. This means that not only would brand loyalty influence purchasing decisions, but it would also further drive important recommendations from social media. 4.3 Theme 3: The role of online marketing influencers
All participants were of the view that once they were connected or tagged by the advertisements of the influencers, they are often connected to them. Two female participants were almost unanimous by saying; ”for me the celebrities i follow on a regular basis share information because i visit their pages almost every time and at every moment i see something new. Sometimes it is about themselves or a product they are launching”. ”I follow KSK a lot and he is always sharing something new. He also endorses some of Unilever’s products and also advertises for shell petroleum so whenever there is something new he let his followers know about it. So i will say KSK on regular basis shares information”, said participant 3. Participants
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indicated that they follow influencers they love and connect to them on their social media handles, with the most common ones being Facebook and Instagram.
In trying to know if participants adhere to the opinions and recommendations of influencers, participants shared the opinion that the influencers (celebrity, blogger, journalist) recommendations are valuable and it makes sense to follow it but some said that with a caveat.” I try to obey the celebrity i follow advice and recommendations especially when i have no prior knowledge on what they are saying. I just believe it and want to try it”. Said some participant. Another respondent said but with a caveat that he adheres to such recommendations only when he feels it makes sense. He said,” i am human myself and therefore i try to evaluate what he says and if it makes sense practically i fully obey because i like him”. Participant 2 indicated ” i trust my celebrity’s sense of judgement so if i really need what is being recommended why not try it”?
In finding out what importance they attach to marketing influencers advertising online, participants thought that it is a good practise having marketing influencers advertise online because it affords consumers the opportunity to know beforehand which brand of a product one should buy especially when they can trust the influencer. One participant said, ”if i don’t have experience with some product and somebody i trust tells me it is good then i have little or no risk in buying such a product. To me, they are a great source of information to us that we buy online”. ”I see it as a positive thing because they clear your doubts and uncertainties on a product especially when it is a new product before you buy. However, you must trust the person, and he or she has to be credible enough” some respondents indicated. ”To me, it is good especially when the person tells you i use this product it is so good. Then i know somebody important is guaranteeing for the product so i can buy without the fear of me throwing money away” according to a participant.
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By these findings as indicated it seems that influencers have a massive reach and they have the ability to increase brand exposure and boost brand awareness. When an influencer recommends or endorses a brand, their followers are likely to take notice. In addition, coming from a trusted influencer, such recommendations are often considered credible. These recommendations mostly are made via their social media handles. The social media platforms are very powerful tools in advertisement and campaigns. In the view of Kaplan and Haenlein (2010) social media services as a group of internet-based platforms developed on the ideological and technical foundation which allows the creation and exchange of content and information between users. In addition, the study of Kim and Ko (2010), reported that businesses have been using social media platforms as part of their communications channels to engage their clients. This implies that marketing influencers have a significant role to play using their media handles in shaping consumer purchase decisions. In this view, social media affords an organization the opportunity to reach a larger customer base through the services of marketing influencers.
However, influencers have to be timely with their role of recommendation and general information sharing. As indicated in the findings, a recommendation would be accepted if it makes sense and there is a need for it. Meaning that a piece of important information could lose its relevance if unduly delayed, a position supported by the literature. Moe (2003) asserts that whenever the influencer recommends a product that highly fits with the consumer’s need, purpose and interest, the higher is the purchasing intention for buying that product. Wu (2012), also support this view by asserting that, influencers are more effective with their propagated messages if delivered at the right time and the right place. That can be to a degree linked to consumers who are goal-oriented. They carefully look for information before making any purchase decision towards a specific product in order to satisfy a particular need.
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Influencers, as seen from the findings, play an important role in consumer purchase decisions through their role of advertisement. They are a major source of information especially when consumers have no prior product knowledge. According to the literature, marketing influencers have a special role in the virtual market community, in that they generate and share important contents through their media handles (Alsulaiman, Forbes, Dean & Cohen, 2015; Alhidari, Iyer & Paswan, 2015). Their personal experiences expressed goes a long way to allay the fears of consumers who would want to purchase from online because they feel someone important has guaranteed for the genuineness of using such a medium to transact business as indicated by one respondent.
4.4 Theme 4: Features of marketing influencers
In ascertaining why participants follow certain influencers interviewees mentioned different reasons why they decide to follow one influencer (celebrity, blogger) or the other. Initially, participants mentioned attraction/beauty, to be updated, entertainment, likeability and fan to be some of the reasons they follow a certain influencer. However, when the interview was advanced and the same question was asked, participants mentioned a completely new set of reasons as to why they would follow one influencer or the other. They listed trust, attraction, reputation, social impact and fame as some of the reasons they consider before following an influencer. The element of attraction was heavily mentioned even though it was used interchangeably with likeability, beauty and nice. Respondents are enthused to follow someone who is very appealing in terms of physical attraction. The issue of trustworthiness was very prevailing. Followers considered trust as a very important element when they decide which influencer to follow. This even becomes more important when participants needed influencers opinions and judgement on certain products before making a purchase
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In a further question to know how participants ascertain the validity of the information influencers share on a product, participants mentioned influencers past records, credibility and trustworthiness as some of the means to validate an influencer’s current pronouncements. One participant illustrated by saying ” if somebody slim tells me to try something that will make me gain weight, straight away i know the information shared is not valid because i see a disconnect between the messenger and the message”. Another male participant narrated by saying ” if a man comes to me and says i should buy this pant for my wife or girlfriend and that it will be nice on her i will question the validity of such information. For me i know he hasn’t worn women pants before so how can you sell something which you haven’t used before or will never use in your life. However, if a woman says that to me i will belive because the pant and the endorser has a relationship”.
According to the findings, consumers follow influencers for different reasons. However, depending on the reason which a consumer will follow any influencer, some critical features are looked out for. When it happened that a follower will follow a celebrity just for fun and entertainment reasons, no special features were looked out for. On the contrary, when consumers were made to know how these influencers could shape up their purchasing decisions some important features were mentioned to be considered. Participants and by extension consumers want to have a relationship with someone credible or with high reputational records, a point which is in line with an assertion by (Chu & Kamal, 2008). Credibility is an essential element to the growth of bloggers and micro-celebrities if they are to have a long-lasting relationship with followers, as it enhances their effectiveness, media image and self-brand (Chu & Kamal, 2008).
The element of attraction is interchangeably used with likeability, beauty and nice. Participants were enthused to follow someone who is very appealing in terms of physical attraction. This
