Does size matter?
A qualitative research on micro influencers creation of brand awareness for startups
[Degree Paper]
Author: Jonas Hansson 960408, Filip Hjertqvist 940210 & Malcolm Sanchez Adolfsson 980131
Supervisor: Christine Tidåsen Examiner: Selcen Özturkcan
Abstract
Influencer marketing has in recent years developed as a new concept for both companies and individuals. Social media has presented a new way for
companies to market themselves. The emerge has produced influencers and nowadays influencers need to be divided into different levels according to the number of followers. Companies have proven that they easily look blindly at the number of followers, which has meant that the emergence of micro influencers has not received the publicity it deserves. The purpose with this degree project is therefore to investigate micro influencers and see the brand awareness they create. The authors will apply the conducted research on startup companies.
The research was conducted through a qualitative study were semi-structured interviews created the empirical findings chapter. The data were later
analyzed and discussed by the authors in the analyze part of the degree project. The analyze was compared with an early conducted literature review to find similarities and differences by the literature review.
The conclusion of this degree project is that micro influencer is a useful marketing method for startups. If micro influencers are used correctly, which means that the company has analyzed its target group, it helps startups to create brand awareness for a favorable price.
Key words
Micro Influencer, Influencer Marketing, Brand Awareness and Startup Companies.
Acknowledgments
Firstly, the authors of this degree project want to deliver appreciation to all individuals that have contributed to this degree project. High praise would be given to the respondents that dedicated their time and energy for the
fulfillment of this degree project. We would also like to send our most heartfelt thanks to our supervisor Christine Tidåsen, for her motivation and keen insight throughout this degree project. Further, we would like to thank examiner Selcen Öztürkcan, who gave valuable feedback and inspiration.
Finally, we would like to send thanks to the opponent groups for their constructive criticism which were vital for the quality of this degree project.
Linnaeus University Kalmar, 26 May 2021
_____________ _____________ _____________
Jonas Hansson Malcolm Sanchez Adolfsson Filip Hjertqvist
Table of content
1 INTRODUCTION ... 6
1.1BACKGROUND ... 6
1.2.1 Theoretical Problematization... 13
1.2.2 Managerial Problematization ... 15
1.3RESEARCH GAP ... 16
1.4RESEARCH QUESTIONS ... 16
1.5PURPOSE ... 16
1.6DELIMITATIONS ... 17
2 LITERATURE REVIEW ... 18
2.1INFLUENCER MARKETING ... 18
2.1.1 Micro Influencers ... 19
2.2BRAND AWARENESS ... 22
2.3SUMMARY ... 25
2.4THEORETICAL FRAMEWORK ... 26
3 METHODOLOGY ... 28
3.1RESEARCH APPROACH ... 28
3.2RESEARCH STRATEGY ... 30
3.3RESEARCH DESIGN ... 30
3.4TYPE OF DATA ... 31
3.5RESEARCH METHODS ... 32
3.5.1 Semi-structured interviews ... 33
3.5.2 Collection of Data ... 34
3.6OPERATIONALIZATION ... 34
3.7.SELECTION OF CASES ... 35
3.7.1 Sampling ... 35
3.7.2 Company Criteria... 36
3.7.3 Clarification of Table of Interviews ... 37
3.7.4 Table of Interviews ... 37
3.8DATA ANALYSIS ... 37
3.8.1 Thematic analysis ... 38
3.9QUALITY OF RESEARCH ... 39
3.9.1 Reliability in qualitative research ... 39
3.9.2 Validity in qualitative research ... 40
3.9.3 Alternatives in qualitative research ... 40
3.10PROJECT SIGNIFICANCE AND IMPLICATIONS ... 40
3.11ETHICAL CONSIDERATIONS ... 41
3.12SUSTAINABILITY CONSIDERATIONS ... 42
3.12.1 Social sustainability ... 43
3.12.2 Economic sustainability ... 43
3.12.2 Environmental sustainability ... 43
4 EMPIRICAL FINDINGS ... 45
4.1EMPIRICAL SUFFICIENCY ... 45
4.2INTERVIEWS... 46
4.2.1 Nordic Nest... 46
4.2.2 Aller Media... 46
4.2.3 Company A ... 47
4.2.4 Wieden+Kennedy ... 47
4.4MICRO INFLUENCER ... 50
4.5BRAND AWARENESS ... 52
4.6THE LINK BETWEEN MICRO INFLUENCERS AND BRAND AWARENESS ... 54
5 ANALYSIS... 56
5.1INFLUENCER MARKETING ... 56
5.2MICRO INFLUENCER ... 57
5.3BRAND AWARENESS ... 59
5.4THE LINK BETWEEN MICRO INFLUENCERS AND BRAND AWARENESS ... 61
5.5ANALYSIS FRAMEWORK ... 62
6 CONCLUSION ... 64
6.1ANSWERING THE RESEARCH QUESTION ... 64
6.1.1 Will startups usage of micro influencers create stronger brand awareness? ... 64
6.2LIMITATIONS ... 65
6.3SUGGESTIONS FOR FUTURE RESEARCH ... 66
7 ALPHABETIZED LIST OF REFERENCES ... 68
APPENDICES ... 73
APPENDIX 1–OPERATIONALIZATION ... 73
APPENDIX 2-INTERVIEW GUIDE ENGLISH VERSION ... 74
APPENDIX 3-INTERVJUGUIDE SVENSKA... 75
APPENDIX 4–AUTHORS INDIVIDUAL CONTRIBUTION -JONAS HANSSON... 1
APPENDIX 5–AUTHORS INDIVIDUAL CONTRIBUTION –FILIP HJERTQVIST ... 1 APPENDIX 6–AUTHORS INDIVIDUAL CONTRIBUTION –MALCOLM SANCHEZ ADOLFSSON 2
1 Introduction
The authors will during this introduction chapter introduce the topics that will be covered and discussed in this degree project. Firstly, a background of the research to continue with the problem discussion where the authors will present why this is relevant and presenting the research gap that was identified. Finally, the research questions, the purpose with this degree project and the delimitations will be presented. This chapter is influenced in its entirety by a research proposal paper written by the same authors (Hansson, Hjertqvist & Sanchez Adolfsson 2021) which were submitted on 21 February 2021, in the preparation course “Business Administration III - Perspectives on Retail Research” for this final degree paper.
1.1 Background
Influencer marketing can shortly be described as content spread on social media through influencers (Imagency n.d). It is about partnering with developers of social content. The developers usually have a large audience that follow them on different platforms such as Instagram, Facebook,
YouTube, Twitter etc. where they satisfy both the company and the audience (KI 2019). Furthermore, influencer marketing is not a new phenomenon in the marketing industry, and to build strong relationships between
organizations and all the different customer variables by using transparent, personal and focused communication tools (Taylor and Kent 2014). It is reported that 63% of companies in 2020 will increase their marketing strategies focused on influencer marketing (the influencer marketing hub 2020). Trust and independence of the influencers have increasingly been seen as paramount to receive the desired outcome of the choice consumer group (De Veirman 2017). It is seen that the credibility of the message that is being given will be defined as the extent to which the consumers will think about the message in factors of factually based, impartial and believable
(Appelman and Sundar 2016). This in turn means that the marketeers increasingly are searching for influencers that are compatible with their marketing objectives. The factors that they are searching for are the influencers that have idol attachments that can create worshippers of their followers. These idol attachments will create opportunities for a willingness for purchase and awareness (Wang 2009).
The title of a social media influencer is regarded as a popular practice, even though the literature in academic context is limited, the term SMI has created a revolution of the common practice of service dominant logic (Freberg et al.
2011). SMI works as a unique in-between place of consumers and the people they trust, to categorize it you could say that influencers become a mix of friends and acquaintances (ibid). Today brand and influencers have become interchangeable links and the use of personal and relationship-based
marketing strategies via social media is becoming important to stay relevant.
The negotiations need to be focused on a message that is both effective and co-existent with the company's view, but also needs to have qualities of authenticity and credibility from the influencer (Freberg et al. 2011).
To create good influencer marketing strategies companies need to look at what kind of outcome they want to achieve, if it is hedonic or utilitarian needs (Lin, Bruning and Swarna 2018). Hedonic needs can be symbolized as products that are more symbolic in nature and can be defined as a jacket from the most renown fashion brands. The utilitarian needs are more focused on the function and need of the consumer and can be formulated as a camping Gore-Tex jacket with heat infusers. By using opinion leaders to build attachments to a consumer's Hedonic needs companies can make their
marketing campaigns more personally appealing to the consumer (Miller and Mushfiq Mobarak 2015).
Influencers are often split into different categories to define both their impact but mostly their following and influence, these categories are defined
differently depending on the source where some are split into 4 groups and others only two. In this degree project the parameters of two defining influencer groups as a theory are being used, as presented in (Kay, Mulcahy and Parkinson 2020).
Macro influencers is the title that symbolizes people that usually have the biggest following and influence. Macro influencers have a big reach and are seen mostly on channels like podcasts, vlogs and social media (Kay,
Mulcahy and Parkinson 2020). These influencers are good to use if a
company wants to create fast and wide awareness between different targeting groups. Macro influencers are often called micro celebrities (Hartley,
Burgess and Brun 2013). In a marketing context macro influencers are greatly recognized as more brand ambassadors and psychological representations of an idol or a person who often gets paid to think in a specific way. So even though the message is being broadcasted to a wider range of audiences the message has been shown to get less recognized as an effective eWOM (electronic word-of-mouth) and the targeted audience will therefore resist it (Friestad and Wright 1994). It has been shown that
messages that are being seen as more persuasive are being statically more inclined to have results of resistances for action (Friestad and Wright 1994).
Macro influencers have been greatly recognized as hedonic needs focused opinion leaders, where the emotionally significant and symbolic variables are greater focused on. Micro influencers are the second group. According to Wissman (2018) is a term described as influencers that is specialized and defined to a single topic. Micro influencers are often seen as more involved with their following, where they create an insight of expertise’s and the creation of deeper relationships. These kinds of influencers are being used to
create deeper relationships with their consumers and have greater expertise than their counterpart (Wissman 2018).
It has been shown that micro influencers create higher forms of product knowledge for their audience, and consumers are determining that less is more (Kay, Mulcahy and Parkinson 2020). Studies have shown that marketing strategies of hedonic needs have been greatly influenced by the emotionally retable message of the marketing information. Because of how the population looks at consumption today, consumers have lesser behavioral loyalties and the message or the products, needs to create emotional
attachments with a consumer's values and lifestyles. Aaker (1991) held a seminar that was focused on brand equity. In this seminar he stated that strong brand equity is based on awareness, association, perceived quality and brand loyalty. This was later supported by Keller (1993) who formulated that Customer-based brand equity (CBBE) occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand
associations in memory. CBBE has since become a vital part of any company that wants to enhance and measure their brand equity (Romaniuk and
Nenycz-Thiel 2013). In the beginning CBBE was categorized as four
different dimensions that were brand identity, brand meaning, brand response and resonance (Keller 1993). But has since been interpreted and redefined as described by Ekinci and Whyatt (2011) as a model that can be categorized by five smaller dimensions that contributes to the consumers association of a brand. These are the physical quality, staff behaviour, brand identification, ideal self-congruence and lifestyle congruence. These effects will in turn create brand satisfaction as the desirable direct outcome. There are more variables to consider in the case to gain buying customers. CBBE stands for perceived quality, loyalty and brand associations and these variables have a more significant relationship with purchase intentions.
Romaniuk and Nenycz-Thiel (2013) describe the formula differently, where the authors concur with the statement that the model is indeed multifaceted, the given dimension of the model is not as easily defined. The core concept of CBBE lies in the brand association network, The functional qualities, benefits and purchase consumption situations (Keller 1993). This is more closely linked to the pyramid formula but has nuances with recent
interpretations (Keller 1991). Even though the examples and definitions of CBBE have changed, all these different approaches to the formula can agree that these variables have a direct connection with the consumers' satisfaction (Ekinci and Whyatt 2011) and brand associations (Romaniuk and Nenycz- Thiel 2013).
This result at first glance, is in turn only the perceived value that is created by the consumer or the result of the company. The second desirable outcome of CBBE is brand loyalty. Brand loyalty is the indirect result of an effective CBBE model and a direct result of customer satisfaction and can be seen as the long-term goal of the CBBE formula (Ekinci and Whyatt 2011). Brand loyalty in term has been seen as a common definition as a repeated purchase of a product or service from a consumer that has experienced a good brand association, where both frequency and quantity is important (Yi and Jeon 2003).
This description focuses on the key variable that brand loyalty has on the buyer decision process that can be categorized as the behavioural loyalty aspect of brand loyalty (Ekinci and Whyatt 2011). The other aspect of brand loyalty is called attitudinal loyalty and can be defined as psychological commitment that consumers have of a brand (Ekinci and Whyatt 2011).
Since the expansion of e-commerce and social media the term opinion leaders and brand communities has been closely linked to consumers'
attitudinal loyalty of a brand (Laroche et al. 2012). The increasingly relevant
channels of social media have created new platforms for consumers to meet and both express their brand love with others and also express their brand hate (Marzocchi, Morandin and Bergami 2013). This development has given consumers the advantage to co-create the attitudinal loyalty of brands via electronic word of mouth functions like social media groups and e-commerce functions.
Behavioral loyalty numbers like sales can be seen as the product of a customer’s positive attitudinal loyalties outcome, but the understanding of the underlying reasons behind these numbers are nearly impossible to modify by using behavioral loyalty functions (Russell-Bennett and Rundle-Thiele 2003). To understand what makes consumers loyal to a brand today is complex, but the understanding of emotional attachments via communities, opinion leaders and good company interactions will create the attitudinal loyalty that culminates in the sales reports which the company indicates as behavioral loyalty (Romaniuk and Nenycz-Thiel 2013). In recent years these developments of attitudinal loyalty have shown that the vital part of
consumers perceived quality and brand identity, in turn it means that theories by that describe loyalty as a four-step process instead the classical way of viewing it in terms of customer satisfaction as Aaker (1991) describes.
The implication that a company’s marketing campaigns focused on creating brand awareness and in extent brand attachment into a result of attitudinal loyalty should use a macro influencer, because of their broader and longer reach and hedonic value focused communication has been greatly
questioned (Mulcahy and Parkinson 2020). Because of the trust and
authenticity of the message from the influencer has been seen as a vital part of an effective marketing source, the micro influencer will have a stronger influence on the chosen consumer because of their greater insight and stronger following (Gupta and Mahajan, 2019).
The importance of finding the right micro influencer is vital but can be difficult since the low follower number (Berné and Marzo 2020).
Gupta and Mahajan (2019) mention that in many cases the micro influencers do not get paid in salary, they get promoted with the products from the brand.
The potential in finding the right influencer is a key for a successful
influencer marketing campaign, and the audience for micro influencers can be more specific and dedicated (Gupta and Mahajan 2019). These advantages according to Gupta and Mahajan (2019) can be seen as economically
superior than larger influencers that desire payments rather than
collaborations. This can therefore be utilized by organizations that are new on the market and do not have the same marketing budgets as larger competitors, for example startup companies (Petrucci 2018).
A startup is a new business entity, which starts hiring at least one paid employee during the given time period, and which is neither a subsidiary nor a branch of an existing firm independent (Luger and Koo 2005). Not only influencers' size can affect these relationships but also the company's size.
Chen, Ji and Men (2017) mentions that studies in China have shown that startups can utilize social media to generate awareness, information sharing and word-of-mouth, cultivating long term relationships with stakeholders, developing new businesses, and building image and reputation. Start-ups often lack the same economical advantages that older or bigger companies have. To create effective marketing strategies these kinds of companies therefore utilize effective and economical sound actions to create competitive advantages and needs to focus on brand awareness to stay relevant (Chen, Ji and Men 2017).
Last but not least is the effect of environmental elements. Many startups fail due to lack of attention to environmental elements, such as the existing trends, limitations in the markets, legal issues, etc. While a supportive
environment facilitates the success of startups, a maleficent one could result in failure (Salamzadeh and Kawamorita 2015). According to different
sources like Petrucci (2018) mentions startups as a key role in the innovation process. Through the startup phase many new ideas and innovations are brought to light and through these, enterprises are formed. Petrucci (2018) also opens up the possible limitations that startups have where it is explained that the resources that they have, both with the basis of personal and the economic aspects can create a hindrance for creativity.
Marketing campaign focused on building brand awareness could be stronger represented and received around segmented micro influencers that have personally invested followings that coincide with the intended targeting groups, rather than one macro influencer that have a huge following that only perceive the message but not take it to heart (Kay, Mulcahy and Parkinson 2020). New studies show that micro influencers create more engagement on social media than the macro, if it is in a certain branch. As mentioned, micro influencers are perceived as harmless in the context of manipulation and the follower base experience them more as their friend than the influencer they are (Kay, Mulcahy and Parkinson 2020). The emergence of micro influencers is relatively new, and you can see from studies that they give back more to their followers, which for companies nowadays gives much for less money (Kay, Mulcahy and Parkinson 2020).
1.2 Problem discussion
1.2.1 Theoretical Problematization
Micro influencers can create the same kind of engagement from their followers even though they do not have the same reach (Kay, Mulcahy and Parkinson 2020). The reason that micro influencers, in the context of brand awareness will be the focus in this research paper is the attachment that
consumers have for a brand has been increasingly more important in all markets. Emotional attachments and ethical consumer choices can be seen as the new ways brands can create long lasting relationships with their
consumers because of how they create the desired outcome of authenticity (Enberg 2018). And because authenticity is at the core of what brands desire, they've started looking more toward smaller influencers with high
engagement rates (Enberg 2018). These kinds of smaller influencers or also called micro influencers, are defined as influence leaders with a smaller following but with a larger engagement ratio (Kay, Mulcahy and Parkinson 2020).
The theory of an influencer involving strong brand attachments and the building of brand engagement is a subject that has been greatly examined and is why this degree project will research on how these advantages can be utilized. According to Wissman (2018) brand awareness strategies using influencers, can build stronger brand attachments for their audience than other methods, and will continuously create the ratio of brand engagement to become higher. Influencers are based on the theory of leaders in a group dynamic. Hogg (2005) explains in his theory that focuses on the cognitive processes that explore the associated psychological need of a member in a group to feel a form of belonging. This theory concluded that group membership provides people with a sense of identity and leaders' roles in these processes is to shape the group identity (Hogg 2005).
These theories symbolize the base conditions that form influencers, actors that create deeper relationships in the stage of consumer marketing.
Influencers maintain a high degree of authenticity because of how people connect with them, where they feel as if they're a person just like them (Abidin and Ots 2015). These theories are what this research paper will
explore, where authenticity can be analyzed and utilized for startup
companies to build stronger relationships in their brand awareness strategies.
The choice of influencer in the theory of influencer marketing has many variables, where the demographic, geographic, platform based and the size of the influencer can affect the outcome (Alqadi 2020). Abadin and Ots (2015) interestly involves two new unique aspects of personal and social attachment that influencers have, which needs to be present as the variable that is a unique factor that influencers have over other marketing actions. These two new factors are further explored as reference points in this degree project, where the relevance and quantity can influence the result.
1.2.2 Managerial Problematization
Influencer marketing and especially micro influencers is a relatively new subject since social media created a new business platform according to Alalwan et al. (2021). Recent studies on micro influencers related to the engagement they create and how companies can leverage on micro influencers (Kay, Mulcahy and Parkinson 2020). Studies also show that micro influencers are a marketing tool both for small and large businesses but are more common in smaller markets since it is cheaper (Gupta and Mahajan 2019). The research will be based on how micro influencers can help startup companies to create brand awareness. As mentioned above, earlier researchers have focused on the engagement that micro influencers create, this statement will help us on how these opinion leaders build
awareness. Micro influencers are nowadays more relevant than ever, it makes these researchers even more operative.
Previous research has shown that both influencers and traditional advertising are good tools to build brand awareness (Kaplan and Hanlein 2010). It is important to focus on the right content to become perceived as desired. To go
further, companies need to take new advice into consideration. It is clear that being among potential buyers and the channels they appear on, further leads to favorable results for the business (Mecke et al. 2004; Mičík and Mičudová 2018).
1.3 Research Gap
During the problem discussion it was identified that there was a lack of research on the implementation of micro influencers for startup companies.
Therefore, it can be seen as a gap on how micro influencers can help startup companies to create brand awareness. This degree project will be based on the awareness that micro influencers create, and how startup companies can benefit from brand awareness that reach a smaller audience but with a larger brand engagement ratio.
1.4 Research Questions
From the earlier presented research and the identified research gap the authors have determined one research questions that will collect information to answer the research gap:
• Will startups usage of micro influencers create stronger brand awareness?
1.5 Purpose
The purpose with this degree project is to examine micro influencers and see if they can help startup companies to create brand awareness. Further on, the aim is to gain knowledge in the field of influencers and investigate if micro influencers are purposeful or not for startup companies. It is crucial to identify the connection between customers, startup companies and external marketing objects in the context of attachments and awareness.
1.6 Delimitations
This degree project focuses on startup companies in Sweden. Every type of industry using micro influencers could contribute with interesting findings within the field, a special industry has not been taken into consideration for this degree project and its purpose. This degree project focuses on the field of potential buyers, companies and marketing. It is written out of a perspective from the startups point of view and how the micro influencers could be beneficial.
Within this research, the perspective of the end customer will be taken into consideration, thus it is necessary for the startup company to know how their target market will react to content. The concept of startups will only be provided in depth in the analysis because it will generate a perception of it, it will further on not be discussed as a concept but only as a measuring tool.
2 Literature Review
The authors will during this chapter present the literature review. The chapter is divided into two main concepts that this degree project is based on, Influencer marketing and Brand awareness. Earlier concepts and findings that help the authors will be presented during this chapter. This chapter is influenced in its entirety by a research proposal paper written by the same authors (Hansson, Hjertqvist & Sanchez 2021) which were
submitted on 21 February 2021, in the preparation course “Business Administration III Perspectives on Retail Research” for this final degree paper.
2.1 Influencer Marketing
To describe an influencer, it is a person who at a marketplace has an average or high impact through word of mouth (Gupta and Mahajan 2019). Social media is nowadays a platform for content that engages people. That is why this platform creates value for business as well, as it helps companies reach potential customers globally (Alalwan et al. 2021). However, the growth of influencers became a reality when opinion leaders were needed on the social media platform. Influencer-marketing is described by academic sources to be a relatively new subject that lacks consistency of a specific definition. For example, Kay, Mulcahy and Parkinson (2020) suggests three types of
influencers, micro, macro and celebrity. Other sources suggest just two types, and that is micro and macro (Kay, Mulcahy and Parkinson 2020). An
influencer's following is not the only viable statistic to measure, the credibility ratio increases if an influencer in context of both macro and micro, has a positive like follower ratio (Kay, Mulcahy and Parkinson 2020).
Nowadays influencer marketing strategies are common by marketers
(Jayasinghe 2021). Influencer marketing is defined as a marketing tool that is
targeting a specific target group or individual rather than the market as a whole (ibid). Jayasinghe (2021) has defined influencer marketing as a new third party that creates emotions and changes attitudes on the consumer and buying behavior. KI (2019) agrees and states that the strategy used in influencer marketing is about targeting the right audience and building relationships. By creating relationships with influencers companies gain the same audience as the influencer, where the influencer becomes the face of the brand and creates long term value for the company through their audience (KI 2019).
2.1.1 Micro Influencers
New studies show that less is more, that means that micro influencers in some cases can be more beneficial than macro influencers for the brand. The results showed us that consumers show higher product knowledge when gaining information from micro influencers (Kay, Mulcahy and Parkinson 2020). This finding shows higher product knowledge is gained which results in higher purchase intentions for micro influencers, so in influencer
marketing less can be more (Kay, Mulcahy and Parkinson 2020). Berné and Marzo (2020) in extension mentions how influencer marketing furthers the goals of relationship marketing. Since the start of influencer marketing, companies objectives with their advertisement have shifted from customer acquisition to retention and commitment from the customer. However, many keywords apply for both influencer marketing and relationship marketing as consumer-segmentation and loyalty-building, the brand wants to deliver a brand message to the wider market (Berné and Marzo 2020). According to Wissman (2018) micro and macro influencers need to be separated since they reach different goals. In general, and in the past, the overall following
number matters more than anything else. Nowadays they mention that a bigger following number just generates attention, not engagement, that is the key factor to success with influencer marketing. Furthermore, Wissman
(2018) mentions that brands nowadays focus more on the interaction between the influencer and their followers in likes, comments and the trust between them. Wissman (2018) mentions that micro influencers have higher
engagement with their fan-base since they care more for them, but also about the campaign they are launching.
Relationship marketing and influencer marketing apply both in the same brand goals (Berné and Marzo 2020). Relationship marketing is in many ways a more relevant and cheaper marketing tool and is also more relevant for small and new started businesses. Micro influencers can gain higher credibility since they often are experts in some niched area, for customers that increase attractiveness and trustworthiness. Studies show that micro influencers do not only have the strength in the intentions in the buying process, they increase the brand awareness since they happily share the posts for promoting the brand (ibid). In the end, that creates credibility since the eWOM spreads with viral intentions, not only the standard like, comments and brand you already follow. In this case followers recommend it to others which in many cases is seen as credible for customers. The return of
investment (ROI) is still difficult to measure via influencer marketing, especially micro influencers (Berné and Marzo 2020). Although Gupta and Mahajan (2019) mention that the ROI is higher on micro influencers since the payment is much less if they compare to macro influencers. Micro influencers are in many cases not paid in salary, they get promoted with products of the brand. Micro influencers are showing higher values, interactions and more, but with less followers it can be difficult for
companies to find the ultimate micro influencers potential. If companies find the right micro influencer they can reach a more specific and dedicated audience. (Berné and Marzo 2020).
Moreover, there is a critical line where followers do not help brands
anymore. Chen (2016) mentions that there is an existing term that symbolizes the meaning of being too popular. Influencer marketing is shortly described as brands that advertise through opinion leaders Gupta and Mahajan (2019), as mentioned before followers is not everything and that is why micro influencers are in many ways a new marketing tool. Gupta and Mahajan (2019) mention that micro influencers are a perfect marketing tool for new and small businesses and that is supported by Chen (2016). Further, they mention an example of a big company in a niched branch. If they collaborate with a macro influencer with 2 million followers, probably 90% of them do not care about the industry. Instead by using 30-40 micro influencers, brands are able to convert on a higher level, probably since using micro influencers engage more and the brand can reach different demographics and more.
Finally, the idea of micro influencers has already gained market share. Micro influencers consist of friends and family, which are more trustworthy
mentions both (Kay, Mulcahy and Parkinson 2020; Chen 2016). They mention that micro influencers get an average of two to five times more engagement on social media compared to macro influencers. Influencer marketing is new, especially micro influencers and it will remain relevant since they present higher mean values of interactions. Influencer marketing relates to relationship marketing which is a proven marketing tool for many years (Berné and Marzo 2020). However, since micro influencers create more engagement and are more costly, Gupta and Mahajan (2019) mention that it is a way of marketing for all kinds of companies, especially in niche markets when brands do not just care about reach.
2.2 Brand awareness
Brand Awareness (BA) is about a potential buyer´ s capacity to recognize a brand or recall it. Studies have shown that BA has a big part in the decision making in the buying process due to the effect an already known brand has on a customer. The two main parts of BA are brand recall and brand recognition. Recall is about the capacity to recall a brand's name when referring to a specific category while recognition refers to recalling it correctly from its name by having come across it recently. Further on, it is one more crucial role affecting the decision-making process for a potential buyer. It is about how strong brand associations are in the brand image, which also is necessary for recalling a brand from the memory. Brand nodes should have been established in the memory (Keller 1993).
At the same time, research from Kaplan and Hanlein (2010) has highlighted specific methods for creating BA. A big part of world companies is using different kinds of activities within social media for their marketing. Whether it is about public relations or just traditional posting. It states that it is good for building a brand in the context of specifically brand awareness because of the big number of active users all over the world. Mičík and Mičudová (2018) notes it is about to be among the potential buyers of a specific product because of the ability to contribute to favorable results for business. While this research points out that it is still important to take others in consideration as well. Azzari and Pelissari (2020) notes that brand awareness does not directly contribute to purchase intention and financials.
It is not only enough to say that BA is the thing to work towards. Shimp (2003) shows that brand awareness is vital to work towards, but also that it is reported that it becomes vital because of the length it is important to create certain relations. It is vital for companies to have brand awareness among the market. Whenever a customer is about to purchase the name of the brand or
the product comes to mind (Shimp 2003). Kaplan and Heinlein (2010) instead, points at the weight of brand awareness in the whole but it is also important to get to know the different amount of brand awareness to picture what different levels could achieve. It is shown that recall is a factor of the amount of brand awareness a specific company could have and furthermore be connected to (Shimp 2003). While Mičík and Mičudová (2018) mentions that a good brand awareness in the length contributes to favorable results, both financially and for the brand. But to be able to know what to achieve with brand awareness Chankson and Thabhinrak (2019) points at the
importance of different methods within BA. The research of WOM, BA and relations has also shown that emotional attachment and brand relationship have a correlation. Further, this means active online users have a role in positive WOM when it comes to spreading the word. Further, it means BA has a role in positive WOM for brands (Chankson and Thabhinrak 2019).
It is clear that BA is the way to create goodwill for a company. To create BA, it is necessary to also use the right tools, Chankson and Thabarak (2019) research also pointing at the role of technology-based apps and their ability to create emotional attachment, with that being said relations and that this leads to influence WOM. Yuvaraj (2014) pointed out that the increasing use of the internet by not only younger people but also the majority of people, has to do with globalization. The availability of the internet and the following media has made it easier to access but also building opinions towards brands and cooperation. There is not the same control, and it is quicker to build a brand among people. That means building brand awareness through media will also do good for example, marketing, HR and sales for gaining customer satisfaction (Yuvaraj 2014).
Other research highlights another side of the positive outcomes from the use of electronic apps. Dülek and Saydan (2019) do also show the positive
outcomes of brand awareness in the social media spectra but there are also some examples of what the risks could be and what to look out for. Their study examines social media and the impact from advertisement, the
different types of outcomes and how they could be combined, how it belongs together and how it can benefit from each other. It has shown the difference between brand awareness and social media advertisement awareness. Their research resulted in advertising social media awareness that did not have a good combination with brand image, but it showed that it could increase the total level of brand awareness. While brand image has a stronger connection with the brand attitude. The brand attitude has further, a positive take on the loyalty of customers. The material published is the material for customers to build their own picture from. Furthermore, it is found that if social media is used in the right way with advertising campaigns, companies have power to build brand awareness towards their brands, a strong brand image and develop a good attitude that could increase the level of loyalty (Dülek and Saydan 2019).
In the case of brand awareness and what it has to do with being where the customers are, research from Kudeshia and Kumar (2017) showing the opportunities for upcoming companies when aiming for brand awareness.
Social media opens new ways for competing against already established companies on the market because it minimizes the distance between smaller and bigger brands through the searching information (Kudeshia and Kumar 2017). Further, other research does not only focus on the new ways and what it could do for a company, it also focuses on the financial aspects (Langaro, Rita and Salgueiro 2018).
Research of investing in social media strategies and the outcomes on how it effects on building brands has shown that there is a positive effect on having BA connected to attitudes (Langaro, Rita and Salgueiro 2018). Research
from (ibid) also highlighted that companies on social media that were exposed with their logo, photos, advertisements, different categories and usage-related content had a higher ABPP (active brand like page
participation), that is to say more active followers. Other research of being active online further on, showing the outcomes of working with influencers towards the market for building brand awareness (Melzer and Zech 2018). It states that it is a big value exchange for companies working with influencers and that they open new ways in communicating with the market because of the engagement with the companies’ content and participating in
conversations within the industry to build brand awareness out of the opinions (Melzer and Zech 2018).
2.3 Summary
Earlier research can confirm that influencer marketing and micro influencers have made an impact on marketing strategies. Influencer marketing has helped companies to develop and reach potential customers globally since it engages people and creates value (Alalwan et al. 2021) Earlier research has given the information that less can be more in influencer marketing.
Wissman (2018) gives the information that influencers need to be separated and divided into different groups since they reach different goals. Earlier the following number was the priority for companies, nowadays research has conducted information that followers only generate attention, not
engagement which is a key factor.
Furthermore, brand awareness is about a potential buyer´ capacity to
recognize a brand or recall it. Research shows that BA often is economically valid for companies but notes that it does not directly contribute to purchase intention and the financial variables (Azzari and Pelissari 2020). Other studies have examined social media and the impact from advertisement. It
showed that it could increase the total level of brand awareness for a
company but not necessarily contribute to an increasing level of brand image (Melzer and Zech 2018).
Substantiation research has been conducted in a short time and therefore there is a lack that will be researched in this degree project. Great amount of research is conducted but the comparison of micro influencers and brand awareness does not exist. Therefore, there is a need for further research in this topic to investigate the relationship between the concepts and see the impact it creates and how it can benefit startups.
2.4 Theoretical framework
The key concepts defined in the literature review formulates what aspects that are relevant in startups usage of micro influencers for the creation of brand awareness. The illustration (Figure 1) presents the different variables that define influencers in the scope of brand awareness in marketing. The illustration is a visualization of the theories that previously been determined in literature review and tries to comprehend the variables that most startups struggle with and the possibilities that micro influencers can contribute. The relevant category in this visualization are influencers through social media, as presented by Kudeshia and Kumar (2017). The visualization shows where the lack of research lies. Startups as shown by Petrucci (2018)
problematization, have limited budgets and a lack of exposure. Micro Influencers creation of engagement, validity and credibility is shown in this visualization as variables of micro influencers strength in creating brand awareness (Wissman 2018).
Figure 1 own model
3 Methodology
This chapter contains the different approaches, strategies and methodologies that are used by the authors. It is to provide and help the reader to
understand how the research has been conducted. Further the type of data, methods and quality of studies are presented. Lastly the author concludes a discussion on their ethical and sustainable considerations during this degree project. This chapter is partly influenced by a research proposal paper written by the same authors (Hansson, Hjertqvist & Sanchez 2021), which was submitted on 21 February 2021 in the preparation course “Business Administration III Perspectives on Retail Research” for this final degree paper.
3.1 Research Approach
The topics of this degree project relate to startup companies, micro
influencers and brand awareness. This degree project is based upon research from previous theories and research in the literature review. It will therefore investigate earlier research. Further on, collect data from interviews with experts in the field which will be the ground for responding to the research questions. A qualitative research method will therefore be used to analyze and further will lead to a more general outcome analyzed with variables and concepts (Bryman and Bell 2017).
The research approach contains two different approaches when connecting theory with research, deductive and inductive. For this degree project, a deductive approach will be used. Deductive research is based on previous research and then tested. Inductive starting with collecting of data and what is found in the empirical findings is the ground for the theory (Saunders, Lewis and Thornhill 2009).
As previously mentioned, the aim of the degree project is to gain knowledge in the field of micro influencers and how startups could benefit from them when it comes to brand awareness. This degree project will have an approach that is connected with first investigating theory and then be tested and
analyzing it in the progress of empiricism (Bryman, Bell and Harley 2019).
At the same time Saunders et al. (2016) agrees and means that deductive approach is when theory is divided into different categories and can be equalized with the hypothesis and further on be tested. If the findings are correct the conclusions are as well.
With help from the literature review former research was discovered and the topic for this degree project was decided. There is also from here the
groundwork for the theory is made. According to Kumar (2018) the theory based on various sources could be collected from academic articles, books, peer-reviewed articles etc. For this degree project it was mainly collected from various data bases such as OneSearch and BSU (business source ultimate) and EBSCO and more. The first step was therefore to create design search terms which should suit the above-mentioned topics of our degree project, “Micro-influencers'', “brand awareness”, “retail”, “startups” and
“Word-of-mouth”.
The area of this is quite unexplored. Previous research has focused on the field of influencers as a whole and what they could achieve. Not micro influencers and their ability to create and what is most beneficial economically and so on. Even so, the empirical findings could be the groundwork for the theory and therefore apply it on a deductive approach (Bryman and Bell 2017).
3.2 Research Strategy
The basis of the research questions in this degree project are of deductive approach where results often need to be analyzed with a theoretical
foundation and the preposition of common arguments and opinions on these theories needs to be put into context. The argument of a qualitative research strategy was therefore easily motivated (Bryman and Bell 2017).
The qualitative data will function as the strategy that focuses on generating non-numerical data (Saunders et al. 2009). A qualitative implementation in the analysis of the research question needs to be explored (Bryman and Bell 2017). According to Bryman (1984) qualitative research methodology is seen as the optimal choice for social sciences and research.
Since the purpose of this strategy creates possibilities of analyzing a research question with an open-ended approach, this choice becomes optimal
(Bryman and Bell 2017). The underlying emotional and value-based theories like brand awareness of this research paper will therefore be more easily implemented. The empirical findings as an answer of the results can also be achievable.
3.3 Research Design
Research design is described by Bryman and Bell (2011) as a framework of how the researchers will collect and analyze the data that is collected for the research. Furthermore, Bryman and Bell (2011) mention five different types of research design that can be used; experimental, cross-sectional,
longitudinal, case study or comparative design. The research design that was selected for the degree project was a comparative design. The comparative design is a popular design in the business research area since it provides a detailed comparison logic by increasing understanding through multiple
cases (ibid). Bryman and Bell (2011) mention that a comparative design minimum need to be two cases, but more cases help the authors to generalize the findings. A comparative design has been provided since an interview study of four companies will be presented and generalized in the empirical findings. Furthermore, a comparative design can be similar to a case study, but the difference is that the focus is more on generalizing the different cases in the study. Using a qualitative research strategy and comparative design creates an understanding between the different organizations where the authors hopefully can distinguish the features between the different cases.
3.4 Type of Data
For a degree projects research questions there are two types of data to use, primary data and secondary data. The combination between the researcher and the collected data decides what is primary and what is secondary data (Gray 2019). Primary data is collected directly from the original source that is published for everyone. It also is collected directly from the main source with no external sources involved. It means it is shared directly from a researcher that answers their own research questions (Saunders, Lewis and Thornhill 2009). It is often the most valuable source due to it is often also the most objective and authentic. Primary data could for instance be collected from a previous degree project original source, focus groups, interviews, observations and surveys. It is often an expensive, difficult and time- consuming source to gather compared to secondary data but as previously mentioned is more accurate (Kumar 2018).
However, secondary data is basically collected from a source that refers to the original source. It could be called an intermediator. It includes raw data from the original source but also includes translations that could be perceived wrongly but also even better if the transcription has become easier to
understand from for instance a company or institution. Even though it is very affordable and easier to access compared to primary data. It could also be crucial in order to make faster conclusions when it comes to being able to answer research questions (Saunders, Lewis and Thornhill 2009).
For this specific degree project primary data was collected from qualitative research methods from semi-structured interviews. It was necessary due to the lack of research within this field. Interviews helped along the way to gain knowledge in the field of micro influencers. It created better communication between everyone involved, due to the several topics chosen but with the ability to change order of the questions. The experts were able to answer from their point of view on the link between micro influencers and brand awareness and their perceived thought on it.
Further on Secondary data was collected from previous studies focused on the variables on CBBE introduced by (Aaker 1991;Keller 1993). Secondary data was also implemented in a smaller quantity, by using other academic sources and scientific journals for presenting.
3.5 Research methods
This degree project is based on previous research theories and is further tested with the help of interviews. The technique of method that has been used is qualitative. The technique of research method provides the degree project with relevant data and how it is collected (Saunders, Lewis and Thornhill 2009). It is important to gain knowledge and to see what data that is useful and trustworthy for the specific project and what is not. For this degree project it is necessary to collect the best data possible to gain
knowledge in the field of micro influencers. A main focus has been targeted at experts in the field which also provided the degree project with most
relevant data. As previously mentioned, it is necessary to collect data from companies working towards other companies (B2B) because no industry is chosen. Experts in the field of micro influencers, working at companies have been given the opportunity to choose which way of conducting the interview is best suited for them. It is necessary to take the world situation into
consideration when both looking at the ongoing pandemic but also to make it possible for every type of company structure to be able to answer the
questions the way that suits them. Often it is effective to hold the interview face to face, but also through telephone or via diverse digital media, such as Skype as an example (Bryman and Bell 2011).
3.5.1 Semi-structured interviews
The qualitative research method that will be used for this degree project includes semi-structured interview techniques. Bryman and Bell (2011) mention that there are two possible techniques, unstructured and semi- structured. Both unstructured and semi-structured research methods make it possible for both the interviewer and the respondent to go off topic to explain the question or make it clearer. It was determined that the semi-structured was best suited for this degree project since it has an ability to both use a structured list of topics and questions but further on to decide the following question. An unstructured would instead contribute to that the interviewer decides the questions and topics during the interview (Bryman and Bell 2011). By focusing on the experts at big companies and their knowledge in the field of micro influencers, it was possible to use a wider and deeper questionnaire and therefore use a prepared guide. Multiple questions and topics were used to collect the answers from the interviews. Due to the several topics chosen but with the ability to change the order of the following questions depending on the respondent's answer it also creates better
communication between everyone involved (Bryman and Bell 2011).
3.5.2 Collection of Data
To ensure the quality of the qualitative research the authors established an interview guide. By establishing an interview guide the authors could plan and in an easier way ensure that the interview stayed within the limits of information that was needed to access. Furthermore, the interview guide helped the authors to establish questions to the different cases. Different questions could be answered in the interviews, by using the interview guide the authors could benefit by using the same concepts but adapt the questions accordingly towards the case.
The authors will before the interviews conduct information and study the company to prepare and be up to date. Before each interview the authors will update the interview guide and be prepared with relevant questions. The interview will be scheduled during week 18 May 2021, and will be conducted online on the preferred tool for the participant. Furthermore, during the interview the authors will be divided into different tasks and responsibilities. Since the authors of this degree project are three students, two of them will hold the interview and one will take notes to simplify the transcription part. To ensure the quality of the sound all three authors
recorded the interview so that no errors would occur prior to the transcription that was established immediately after each interview. All interviews are recorded, transcribed and are presented in the empirical finding chapter in this degree project.
3.6 Operationalization
After conducting a summary of the literature review the authors conducted the interview guide on the research gap. By creating an interview guide the authors established topics that are based on the research questions.
Furthermore, the questions during the interviews were open-ended since the
participants could answer in detail. By using open-ended questions, the authors encourage the participants to answer in an elaborative way to ensure the quality of the interview. To avoid repetition during the interviews, the authors did not answer all questions if a question already was answered previously. Moreover, non-scripted follow-up questions are included and encouraged by the authors to gain more information from the participants if necessary, in the format of semi-structured interview. The operationalization is attached in the appendices as Appendix 1.
3.7. Selection of Cases
3.7.1 Sampling
It is important to gather enough data when it comes to making inferences about a population, also to strengthen the validity. Therefore, there are several sampling methods to choose from. When generalizing the result from a population, it is more appropriate to choose a method that is general and could contribute to data that fits for the specific work. The sample will help the authors to contribute the data from the research to answer the research question of this degree project (Saunders et al., 2009; Bryman & Bell, 2011).
This degree project contains a purposive sampling method due to its capacity to add crucial data for smaller samples. The data collected helped the authors to understand the concepts from new perspectives, with increased theoretical knowledge. Also, to understand the comparative design and create certain knowledge for participants. Qualitative samples are more useful. They are connected with a subject or topic. A strict approach includes rules to follow that would prevent this degree project (ibid).
The purpose of this research is aimed towards micro influencers, brand awareness and startups. Therefore, the sampling is made on experts in the
field of influencer marketing within Sweden. Mainly, people with insight in larger companies that have grown. Further on, it is easier to gain information and knowledge and provide the participants with even more information. It means that it is necessary to get a deeper understanding of people’s thoughts on them but also answer the research question and achieve the objective of the study (Bryman & Bell, 2011).
3.7.2 Company Criteria
Bryman and Bell (2011) mention that it is vital to determine the criteria of cases that are sampled during a purposive sampling research. Therefore, the authors have conducted following criterias of the companies and participants.
Criteria of company:
• Head Office
• Experience of influencer marketing and a micro influencer marketing strategy implemented.
Criteria for the participation of the interview:
• Employed in the field of influencer marketing
• Minimum one years of experience in influencer marketing.
Before selection of the cases the authors made research of companies that could participate. Lately, a first contact with the participants was made to describe the degree project and what the purpose of the interview was.
Interview questions were handed out beforehand, in order for the participant to be prepared. All interviews were conducted through Zoom since the pandemic of Covid-19 hindrance of physical interviews.
When the authors conducted interviews, it was not taken into account that it needed to be a startup that this study focuses on. To obtain data, the authors have chosen established companies that have experience of micro
influencers, to lately apply to startups.
3.7.3 Clarification of Table of Interviews
If the company and participant answered yes on the third question in the appendix 2 and wanted to be anonymous, the company and participants will be referred as Company and Participant, if more than one company will be anonymous, they will be divided in alphabetical order as Company A, Participant A and Company B, Participant B.
3.7.4 Table of Interviews
Company Participant Position Interview Date
Interview Length Company A Participant A Marketing
Campaign Manager
2021-05- 07
40 min
Nordic Nest Josefin Beijer
Influencer Marketing &
PR
2021-05- 04
35 min
Aller Media Cecilia Nordqvist
Product Leader
2021-05- 06
40 min
Wieden+Kennedy Gustav von Platen
Lead Motion Designer
2021-05- 11
45 min
3.8 Data Analysis
This degree project benefits from the data collected for the method. Both categorical and numerical data has been implemented for the cause of a deductive approach, which is also the ground to answer the research
questions. The analysis part of qualitative data is not a final step for the data, instead it is seen as an ongoing analysis process between data collection and analysis of it (Merriam and Tisdell 2016). Further on, for analyzing the qualitative data collected, there are two preferrable approaches, thematic analysis and grounded theory. Thematic analysis is based on already existing
data and research on themes that already are chosen, it is also the most commonly used within qualitative data (Bryman and Bell 2011).
Furthermore, grounded theory is a more complicated approach due to it is time consuming and it is also demanding knowledge within the method. It is based on an ongoing comparison or analysis between several data and categories until new is found (Saunders 2009).
3.8.1 Thematic analysis
This degree project contains a thematic analysis due to its preferable approaches when it comes to not be time consuming and easy to access. It also provided the degree project with rich and complex results in influencer marketing. The authors benefited from this analysis to categorize the themes within the data to further on find connections in the qualitative data which also opened for a certain amount of interpretation. The themes are
established from the results of the findings, which means that certain categories describe the data and its characteristics. A theme is therefore identified for helping the authors with answering the research question (Gray 2019) Further on, the analysis helped identify certain themes within
influencer marketing to understand different perspectives of a marketing strategy. However, the reason further on led to understanding different perspectives a startup company challenges which also answered the research question. By going through the data collected from qualitative interviews meticulously the thematic analysis provided the degree project with many crucial themes which further on was presented in the chapter of empirical findings. The themes were connected with the categories in the chapter of operationalization for the ground of the research questions. Therefore, the data collected from the interviews was analyzed in comparison with previous data presented in the literature review to answer the research questions on how startups could benefit from working micro influencers.
3.9 Quality of Research
The two most implemented methods to measure according to Bryman and Bell (2011) is reliability and validity. Therefore, the authors will use these methods to measure the quality. Further, this section will be divided into Reliability in qualitative research and Validity in qualitative research.
However, the reliability and validity in qualitative research have been questioned as necessary, therefore adaptions have been done. Therefore, Bryman and Bell (2011) propose that trustworthiness should be evaluated and discuss four more parameters to take into account. These four aspects will be discussed later during this chapter.
3.9.1 Reliability in qualitative research
Reliability in qualitative research refers to the question if the result of the research is repeatable or not. In addition, if other researchers used the same case study and got the same findings, reliability is achieved. According to Bryman and Bell (2011) it is difficult for researchers to refer to the repeatable in qualitative research since the social environment and the contact between people differs and affects responses from the participants.
To ensure the reliability in this degree project the authors presented the methodological chapter as detailed as possible to understand the process the authors and participants went through. Further, a clear methodological
chapter gives the stakeholders of this degree project the insight of the process in the empirical findings and the analysis. However, during the qualitative research a semi-structured interview technique was used, in order to generate reliable answers from the participant. Therefore, the question did not follow the same structure during the interviews but to ensure the quality the authors established an interview guide to strengthen the reliability through use of the same main subjects during the interviews. The interview guide will be referred to as Appendix 1 and will be attached in the degree project. Finally,
