1 Impact of Social Media Influencers on Consumer Behavior: Social Media Perspective Ahmed Nadeem Araiz Shaukat Faizan bin Faheem Minahil Khalid Noor-ul-Ain Zia Sania Manzoor Ms. Fatima Manzar Academic Writing 206 Lahore School of Economics 3rd April 2024 Impact of Social Media Influencers on Consumer Behavior: Social Media Perspective 2 Introduction: The expansion of social media platforms has given rise to a new form of marketing known as influencer marketing. Influencers, who are individuals with a significant following on social media, have emerged as powerful agents in shaping consumer behavior. They have the ability to change consumer preferences, purchasing decisions, and brand perceptions through their content. Understanding the impact of influencers on consumer behavior from a social media perspective is essential for businesses aiming to implement this marketing strategy effectively. Significance of the study: This study is really important for us as college students because it's about something we see every day: influencers on social media. We're looking into how these influencers affect what we buy and how we see brands online. Understanding this can help us in our future jobs, whether it's in marketing, business, or managing social media accounts. And since we're also consumers, this research helps us understand our own behavior better and how the world around us shapes what we choose to buy. Scope This research aims to explore the role of influencers in shaping leading markets across diverse industries such as fashion, beauty, technology, food, travel, and more. It will investigate how influencers leverage their platforms to impact consumer preferences, purchasing decisions, and brand perceptions. In addition to that, the study will examine the effectiveness of influencer marketing strategies, and the specific age groups whose behaviors are being influenced by this strategy the most. Literature review: It is easy to think that influencers have an impact on the consumer buying decision behavior as they create a feeling of trust with the followers (Ye et al., 2021) This relation encourages the followers to take their attitudes and beliefs and this makes it difficult for consumers to discern commercial content from noncommercial content (Evans, Phua, Lim and Jun, 2017). Moreover, this attachment may result in followers’ excessive use and problematic engagement with them (Farivar et al., 2022). Another concern is that social media design and content can induce addiction 3 (Farivar et al., 2022) associated with mental health problems such as stress, anxiety and depression which lead to reduced wellbeing. Indeed, literature on influencer marketing related to impacts on consumer behavior mostly focused on general use of social media (Naranjo-Zolotov, Turel, Oliveira and Lascano, 2021) but the role of the specific activities like following influencers has not been explored further. As followers are predominantly included in the young age groups, the people around 19-24 years old are more prone to follow influencers (Hein, 2017). This research would like to bridge this gap by exploring the role of the influencers related to behavior and especially for teenagers and young adults, part of the generation Z, between the age of 10 and 24 (Sawyer, Azzopardi, Wickremarathne and Patton, 2018), who are easily persuaded because of their cognitive abilities and advertising literacy not fully mature (Ye et al., 2021) while exploring the two points of view of those who influence and those who are influenced. Research Questions Primary research questions How the influencer marketing strategy impacts teenagers and young adults' behavior and purchase behavior? How do influencer marketing strategies vary across different industries, and what factors influence their effectiveness? Subsidiary research questions 1. What traits of influencers most affect consumer behavior? 2. How does platform choice affect influencers effectiveness? 3. In what ways do age, gender and income levels moderate the influence of social media influencers on consumer behavior? Research Methodology The sampling method we will use is random sampling. Where we will randomly select people willing to give the survey and then that data will be used as the primary source of information along with interviews. Where our target population is adolescents. The methodology will employ tools such as an interview and survey from which we will find out about the impact that social media influencers have on the purchasing behavior of consumers. An 4 interview will be conducted with the person who has some experience in being a social media influencer and has worked with brands for their product promotions. Moreover, a second interview will be conducted of a random consumer. For the data collection, both qualitative and quantitative will be collected through the survey and questionnaire. However, the collected data will be calculated and analyzed where the secondary resource that will contribute to the result is accurate. Implications Examining influencer’s role offer insights into how consumers make decision. We are able to investigate the ways in which consumers are impacted by a variety of element, which influencers frequently use including likability, authority and trendiness. The effectiveness of influencers marketing campaign to create brand awareness and effecting consumer’s purchasing decision is also analyzed which helps in examining how different influencers use different marketing strategies to have an effect on the consumer behavior. Furthermore, the research conducted analysis on the effectiveness of credibility, relatability and transparency that leads the consumers to trust influencers’ recommendations. Through addressing such implications in our research paper, we are able to have insights into the field of influencer marketing and consumer behavior in accordance to it. Anticipated Problems We might expect a delay in interviews due to unavailability of influencers. Respondents of questionnaires may not give honest answers. 5 Research Schedule Research phase Objectives Deadline Background research and Define research topic. 31st March literature review Developing framework. Research design and planning Design questionnaire. Finalize sampling and data 1st April analysis methods. Data collection and Sending out questionnaires. preparation Conducting interview with an 18th April influencer and a consumer. Data Analysis Transcription of interviews. Analyzing the survey data. Analysis of interview 25th April transcripts. Writing Compiling the results. Complete the full thesis draft. Meet with supervisor to 6th May discuss feedbacks and revisions. Revision Redraft based on feedback. Get supervisor’s approval for the final draft. Proofread. Print, bind and submit. 10th May 6