Impact of influencer marketing

The knowledge gap that this research seeks to fill is the effects of influencer marketing on consumer decision-making in the UK fashion retail sector. In assessing the strength as well as the weakness of the study, it is the hope of the research to offer guidelines on how brands can reposition themselves to cope with these dynamic outlay to meet growing customers' demand.

1.2 Research Question (s)

• What is the concept of influencer marketing in the context of the fashion retail marketing sector?
• What is the role of fashion retail influencer marketing in changing consumer decision-making positively?
• What are the influencer marketing obstacles that dissuade consumer decision-making within the fashion retail industry?
• What are influencer marketing strategies that can be used by fashion retailers to impact consumer decision-making?

1.3. Research problem

The use of influencer marketing in the UK fashion retail sector has become widespread and therefore the effectiveness and the drawbacks of this strategy and their impact on consumers are in question. Although influencers play the primary role of marketing brands, issues such as fake influencers, the reliability of sponsored content, as well as the overcrowding of social media with influencer contents act as barriers to consumers when making a purchase.  However, the opaque nature of the influencer collaborations is a problem that weakens consumer trust and increases the chances of market resistance to marketing messages. This problem was evidenced by a survey conducted in 2023 by Influencer Marketing Hub which showed that 38% of consumers could not tell the difference between normal and sponsored content (Influencer Marketing Hub, 2023b). At the same time, because the content of influencers is starting to flood social networks, their effect may be watered down and users may simply get tired of it. This research seeks to fill this knowledge gap by examining how influencer marketing can influence consumer decision making in the UK fashion retail industry both positively and negatively. Thus it seeks to outline the challenges and prospects in order to offer key recommendations that can help refine the marketing strategies of different businesses  (Haque, 2020).

1.4. Research rationale

The fashion retail market in the UK is saturated and brands are always looking for fresh ways to connect with consumers. Thus, influencer marketing provides a new way for building relationships with the target audience. Yet, the implications of this strategy for consumer behaviour are still largely unexamined, particularly in the British context. This research is important as it looks at the two fold side of influencer marketing, the potential and the downside  (Lim et al., 2017). As 80% of UK consumers use social networks, the influence of influencer marketing on the purchase decision is crucial for creating more efficient campaigns. In addition, this research extends the literature on ethical marketing practices by identifying obstacles, including authenticity and transparency.

The outcomes will be valuable to the fashion retailers, marketers, and scholars as it will provide the steps to embrace and augment the effectiveness of influencer marketing. Finally, the study aims at enabling the management of various organisations to benefit from influencers while avoiding the drawbacks, which will foster continued growth within the fashion retail industry in the UK (Eltoria, 2020).

1.5 Research Aims and Objectives

Research aim

To explore the impact of influencer marketing on consumer decision-making within the fashion retail sector of the UK.

• To determine the concept of influencer marketing in the context of the fashion retail marketing sector.

• To assess the role of fashion retail influencer marketing in changing consumer decision-making positively.

• To examine the obstacles of influencer marketing that dissuade consumer decision-making within the fashion retail industry.

• To evaluate influencer marketing strategies that can be used by fashion retailers to impact consumer decision-making.

Chapter 2: Literature Review

Introduction of Literature Review

The social media platforms have become popular with the latest being the social media marketing where influencer marketing became a popular way to reach out to the clients. The purpose of this literature review is to discuss the meaning of influencer marketing, its function, opportunities and threats, as well as suggested approaches applicable to the context of the UK fashion retail sector. Influencer marketing has turned out to be a useful strategy to use influential people to sway the consumer decision  (LinkedIn, n.d.). However, the approach has its limitations such as over-saturation, issues to do with transparency and the emergence of fake influencers which can seriously affect the success of the approach.  

In light of these challenges, this review synthesises the current literature to understand how fashion retailers leverage influencer marketing to foster brand loyalty and consumer engagement (Manoj, 2020). Moreover, it points out the deficiencies of the current literature, for example, the lack of approaches to culture and issues of opacity. The results presented offer some insight into how and in what way the dynamics of influencer marketing are changing in the fashion retail industry.  

• Empirical study

• Concept of influencer marketing

Influencer marketing which has been widely practiced in digital marketing introduces products and services through individuals with large followership on social media platforms. Coursera (2023), define influencer marketing as a process of reaching out to specific audiences through influencers who in turn help brands create credibility. This view supports McKinsey & Company (2023), opinion that endorsers perform as middlemen that relay brand messages with more efficiency than advertisement.

From a more recent perspective Shahzad et al., (2023), state that perceived credibility and trustworthiness of an influencer as well as his/her perceived professional competence dictate the effectiveness of influencer campaigns. They opine that only those influencers, who look real and genuine, are able to influence the consumers' buying behavior. Equally, holds the opinion that one of the greatest strengths of influencer marketing is the fact that it is difficult to tell where sponsorship ends and friendship begins. Such a strategy harnesses quite well the potential of influencer communication, but it has generated discussions regarding the openness and, respectively, the ethics of influencer practices.

However, sceptical opinions, like the opinion of Biaudet (2017), raise the question of sustainability of influencer marketing. Some of them argue that overuse of promotional content in the social media networks has demystified its effectiveness due to consumer fatigue. Furthermore, state that over- commercialization of influence can diminish consumer trust, especially when cooperation ,is not announced.

In spite of its difficulties, influencer marketing is one of the most effective tools in the modern approach to marketing. Cartwright et al., (2022), have posited that it's successful because it leverages social proof and peer pressure two important drivers of consumer behaviour. But they note that brands have to be very selective to choose the right partnerships that reflect the brand's values and the target market's inclinations.

To emerge, influencer marketing is regarded as being a strong strategy for improving brand awareness and consumer interaction because of these two ideas: All these elements have to be in harmony in order to ensure long term success of the company. 

• Role of fashion retail influencer marketing in changing consumer decision-making.

Fashion retail influencer marketing has taken root in the marketplace as one of the most effective strategies for persuading the consumer. ‌Zak and Hasprova  (2020), have it that influencers present a model who clients gravitate to since their lifestyle and choices are inspirational; thereby being a circus that elicits new attitudes towards buyers and purchasing. These trends are most visible in fashion niches where images are a primary way of engaging an audience.

According to Belanche et al (2019), influencers' actions of presenting products in familiar contexts improve consumers' emotional reactions to brands. When the fashion items are captured in day-to-day use or styled differently, the influencers establish credibility and make the consumer replicate their decisions. Similarly, Vrontis et al., (2021), argue that influencers are basically opinion leaders whose recommendations positively influence consumers' perceived value for fashion items. This is especially a common feature, in the Gen Z and Millennial generation where word-of-mouth influence trumps advertising influence.

However, critics as Campbell and Farrell (2020), say that while influencer marketing might have some benefits it is not all good. When the consumers are bombarded with numerous promotional contents, it results to doubt on the influencer's credibility. In addition, the notion of the ‘'fake'' influencer who uses fake followers or faked engagement rates can be referred from Haenlein et al., (2020). These practices can reduce impact efficient campaign and harm brand image.

The other key driver is the level of transparency. Lou and Yuan (2019), stress that hiding information about paid partnerships damages consumers' decision-making because the audiences expect the influencer to be truthful and transparent. Non-disclosure of sponsors attracts penalties, and the effectiveness of various marketing approaches is attenuated.

On the positive side, the paper by Koay et al., (2021), posited that well-selected influencer marketing strategies can change consumers' decision-making process through persuasion by social norms and social identification. They note that those two aspects are critical in achieving the maximum effect: the congruence between the influencer's image and the brand. ASOS and H&M are perfect examples of a company following this strategy by partnering with influencers that represent the target market's goals, thus boosting their brand constituency and sales. Therefore, fashion retail influencer marketing carries out a vital function of guiding individuals' choices while shopping, but it has its effectiveness contingent on the influential factors such as the realness of the influencer, their honesty, and the compatibility of their content with the business's selling objectives. These factors can be best managed to optimise the use of influencers, in ways that also addresses the associated threats of over-saturation and inauthenticity.

• Obstacles of influencer marketing that dissuade consumer decision-making within the fashion retail industry.

Despite the massive growth of influencer marketing in the fashion retail industry, several barriers impede the process of translating this marketing strategy into consumer decision-making. One emerging concern is that the specific field of influencer marketing is already filled to the brim with posts on social media. Masuda, Han, and Lee (2022), notes that such constant promotional posts over time, may cause consumer post-promotion fatigue, reducing the perceived credibility of influencers and the ability of brands to grab audience attention. Such a type of oversaturation negatively impacts the audience and creates doubt toward using influencers in marketing.

Transparency issues also present a big challenge to the success of the plans since the plans rely on the provision of information to the public. The authors Leung, Gu, and Palmatier, (2022), explain that sponsored posts erode trust because audiences expect more transparency regarding influencer partnerships. The UK Advertising Standards Authority has set rules on the labeling of paid sponsorships, but they continue to be violated: this erodes trust even further (ASA, 2022). Lack of transparency means that consumers are likely to develop doubts as to the rationale of endorsements, which slows down their decision making process.

New threats are also emerging: fake influencers are yet another problem. Gerstenecker, (2021), state that when influencers pay for followers or fake engagement they are being dishonest to both the brand and the consumers. This not only makes waste of the marketing budgets, but also erode the consumers' trust in the influencer campaigns. As per the Influencer Marketing Hub consumer survey conducted in 2023, 42% of the consumers were skeptical about influencer authenticity.

However, failure in matching influencers and brand values can affect campaign outcomes. According to Rosário and Silva, (2023a), the promotion evaluation issue occurs when influencers are not relevant to the brand's target customer or brand personality. This gap lowers the effectiveness of influencer marketing, discouraging consumer decision-making.

Cultural and social differences add to the issue of efficiency in influencer marketing. BuzzFame (2024), opine that there is a difficult task of choosing influencers depending on the various consumer markets in the global fashion brands. Inability to properly localize influencer campaigns means that potential buyers may be offended and/or simply not approachable, which in turn leads to lost sales.

Last but not least, the growing commodification of influencer marketing means that influencers are seen as advertisers. Anon (2023), note that this change erodes the interpersonal relationship that made influentials useful. If there is no relationship, consumers may ignore recommendations from the influencer as something untrustworthy and only for sale. To maintain the consumer's trust, it is crucial to resolve these problems, which are important for influencer marketing campaigns' success.

• Influencer marketing strategies used by fashion retailers to impact consumer decision-making

The fashion retailers use multiple tactics in the influencer marketing to influence consumers' decisions, it is because the social media platform is suitable for the visual and interactive approach. According to Chetioui, Benlafqih, and Lebdaoui (2020), the most popular approach is to work with influencers that have a large number of followers because of the increased reach. But they also note that it is not good to have a very large number of followers, as it can be misleading to think that this audience will engage, therefore, choosing micro-influencers with fewer followers but more involved might be more appropriate when it comes to the creation of trust and, therefore, sales.

Another powerful strategy which can be used is content personalization. From the analysis by Chopra, Avhad, and Jaju (2020), fashion retailers work with influencers to generate content that is relevant to their image and that clients will find appealing. For instance, tutorials, styling, or daily real-life or getting ready' type of post make the brand more relatable and realistic. This strategy helps consumers to think about how a product fits into their lives thereby increasing purchase consideration.

Another approach is to use the UGC by running the influencer campaigns. Leung, Gu, and Palmatier  (2022), state that fashion retail companies such as ASOS and Zara use influencers to promote their hashtag campaigns whereby fans are asked to upload material containing relevant merchandise. This not only enhances brand familiarization, but consumers feel there are others who are using the particular brand, therefore social approval plays a key role in decision making.

The role of the targeted application of platform-specific features cannot also be overemphasized. Masuda, Han, and Lee (2022), explain how use of swipe-up links and shoppable posts, both features of Instagram, allows influencers to offer smooth buying experiences. Retailers benefit from this by including direct calls-to-action, which removes obstacles for the consumers from the time they come across the products to the time they make the purchase. Another successful type of campaigns for young audiences is TikTok ones, with short videos.

However, as rightly pointed out by Ye et al., (2021), the key to successful strategies lie in truthfulness. Over-commercialized or having partnership deals that are not properly communicated may make consumers to turn away which will lead to poor performance of the campaign. Similarly, Jin, Muqaddam, and Ryu  (2019), note that there could also be appeal to risky and unsustainable kinds of influencer marketing, which should be diversified and incorporated into marketing mix.

Altogether, micro-influencers cooperation, the use of micro-targeted content, the integration of UGC, and fine-tuning of platform-specific features show efficiency in impacting consumer decision-making in fashion retailing. However, they have to be genuine, open and credible as well as in line with the consumer profile and expectations which is why planning plays a critical role.

• Literature gap

Although prior research offers some understanding of the effects of influencer marketing on consumer behavior, some research questions have not been addressed. Many of the papers like Krywalski Santiago and Moreira Castelo (2020)  and Levin (2020)that explore influencer communication strategies do not go into the details of these strategies' impact on the fashion retail domain. However, despite the extensive literature on the importance of authenticity and trust, there is relatively little information about how cultural and demographic factors affect the effectiveness of influencer marketing.  

Furthermore, the problems like oversaturation, fake influencers, and transparency, pointed by Lee and Kim (2020), do not have effective recommendations on how to counter these problems effectively. Likewise, although Chopra, Avhad, and Jaju (2020), talk about content customization, little research focuses on the effects of platform characteristics such as TikTok and Instagram on consumers in the long run. Closing these gaps is important for building a better foundation to understand the continuously shifting dynamics within influencer marketing within the fashion retail industry.  

2.3 Conclusion of Literature Review

From the literature review the concept of influencer marketing, its function, challenges and approaches will be discussed specifically in the context of the UK fashion retail industry. IM is defined as a strategy of reaching out to consumers through peers using influencers on social media where credibility and genuineness are considered key determinants of success (Krywalski Santiago and Moreira Castelo (2020) and Levin (2020). Nevertheless, criticisms with over-commercialization and transparency questions including ‘influencer' sponsored contents, the integrity and sustainability of Buzz is questioned  (Masuda, Han, and Lee, 2022)

And (Leung, Gu, and Palmatier, 2022).

The purpose of influencer marketing is highlighted by the fact that it aims to influence the consumer's decision by making them relate and feel affiliations with the content put across to them. Influencers are suitable to develop inspirational stories that appeal to the target audience, especially the Millennial and Gen Z customers (Gerstenecker, 2021, Rosário and Silva, 2023)

Still, the existence of fake influencers and corrupted partnerships does the opposite of these strategies, which is damaging the trust and loyalty of the consumers.  

The fashion retailers use methods that include using micro-influencers, developing custom content, and using Instagram Shopping and TikTok promotions. Hashtag campaigns, which enable users to generate content, promote community and extend brand awareness (BuzzFame, 2024).

However, influencer marketing is not without its problems such as issues of saturation, problems with the level of transparency and problems with compatibility with certain cultures. Real and effective solutions to these problems must be achieved through the utilization of authentic, transparent, and well-aligned strategies to enhance the influencer marketing effect on the consumers' decisions.

Chapter 3: Methodology

The chapter on methodology provides an overview of the research strategy, method and approach used in the study of influencer marketing on consumer decision making in the UK fashion retail industry. Preceded by informed consent, this paper gives a stepwise account of the research process, research approach, research strategy, research instrument, sampling methods, and consideration of ethics with the aim of showing the credibility and dependability of the study.

3.1 Research Process

The approach to undertake for this study is going to be research oriented to systematically solve the research question to meet the goal of the study that is to determine the effects of influencer marketing on the consumers' decision making within the fashion retail industry of the United Kingdom. It starts with the development of research questions like: Analyzing the state and purpose of influencer marketing, revealing its challenges, and assessing the approaches applied by fashion retailers (Gupta and Gupta, 2022). Previous publications were reviewed comprehensively in order to identify theory and develop the survey instrument.

Survey data was collected from consumers in the United Kingdom already following fashion influencers on Instagram, TikTok, and/or YouTube. In probability sampling, simple random technique was employed so that everybody in the target population could be equally selected to take part in the research (Saharan et al., 2020). Frequency distribution was used in the analysis of the survey data to establish trends and pattern among consumers. A number of charts and graphs were used in order to present the findings in a concise and precise method. The research process of the study guarantees that the study meets the reliability validity and ethical considerations hence providing insights on influencer marketing to the UK fashion retail industry.

3.2 Research Approach

This research uses a quantitative research method to examine the impact of influencer marketing on consumer behavior. Research strategy is derived from the deductive research approach in which theoretical propositions are postulated from the literature and empirically analyzed by means of a structured questionnaires. This approach is ideal when testing hypothesis in areas of interest like consumer trust in influencers, perceived authenticity and purchase intentions (Pandey and Pandey, 2021).

Quantitative research approach facilitates collection and analysis of large data sets and the patterns and trends exhibited can be easily identified. It also allows the generalisation of the findings to the population, giving insights on the role and issues of influencer marketing in the UK fashion retail sector (Mukherjee, 2019). Through the systematic approach in the research execution, the study guarantees the achievement of the stated goals and objectives in addition to adding on to the existing literature on influencer marketing.

3.3 Research Strategy

Regarding the research strategy, the objective of data collection is carried out through a structured survey. Questionnaires are useful in quantitative research as they enable the researcher to get large data within a short duration. It gives a systematic approach to collect quantifiable data regarding consumer perception, involvement and attitude towards the concept of influencer marketing within the context of the UK fashion retail industry.  Due to the reasons of validity and reliability, the survey is inclusive of closed-ended questions only. Some of the sections cover the research objectives like, consumer trust in influencers, perceived efficacy of influencer marketing campaign, and perceived hindrances  (Kumari et al., 2023). By using Likert scales, MCQs, and demographic questions it is confident that the data being collected will be both wide-ranging and accurate. Since the target population is to be represented in its entirety, probability sampling is used and includes the use of simple random sampling in this study. This approach reduces prejudice and increases the credibility of results to the research study.

3.4 Research Methodology and Tools

As a result, this work applies a primary quantitative research approach to examine the influence of the IM on consumer decisions in the UK fashion retail industry. The quantitative data collection method that is employed is the online survey as it is effective, comprehensive and flexible enough to capture the population's data (Nayak and Singh, 2021).

The survey questionnaires are of structured and closed type to elicit measurable data responses. The questions are grouped according to the primary research goals of the study, namely: trust in influencers, perceived efficacy of the IMT strategies, and issues with influencer campaigns. They are Likert scales, which is used to measure the level of agreement; choices; and, lastly, demographic questions to identify the participants (Ellingsen, Størksen, and Stephens, 2021).

With regard to data analysis, the collected data is analyzed applying the method frequency distribution which shows the frequency of certain responses. This method makes it easy to establish trends and pattern like the percentage of users who rely on influencers in their purchase decisions. Charts like the bar charts and pie graphs are used to bring out lucid information dissemination of the results (Mahuika and Mahuika, 2020). The chosen methodology helps to achieve the research objectives step by step and gain practical insights into the dynamics of influencer marketing in the UK fashion retail industry.

3.6 Sampling Approach

The study applies probability sampling; specially, simple random sampling method to guarantee that every person within the target population has similar likelihood of being chosen. The market sample consists of 18 and above year's old UK consumer who use social media platforms including Instagram, TikTok, and YouTube where the use of influencer marketing is common (Mishra and Alok, 2022).

The target participation of the survey is approximately participants, so that there would be enough data for statistical processing and drawing relevant conclusions. Simple random sampling reduces the chances of selection bias and also makes the sampled population hallmarks of the whole population thus increases validity and reliability of the research findings.

3.6 Ethical Implications

To avoid causing harm to the participants the following ethical considerations are accommodated in the study. The following questions have been asked to the respondents before their participation in the study: Purpose of the study, participation is voluntary and the respondent has right to withdraw at any time (Van Haute, 2021). The participants are all asked to sign consent before they proceed to answer the survey questions.

To minimize the threat to the participant's privacy, their identity is not captured in the study in any way. Participants' information that we collect is kept confidential and is only utilized for analytical research which complies with UK GDPR. Moreover, none of the questions in the survey is sensitive, intrusive or leading hence respondents feel comfortable and secure when answering the questions (Hasan et al., 2021). The study adheres with the ethic standards of the identified academic inn and permission from the ethic committee is sought before data is collected. COMPLIANCE to these ethical principles instills the scientific sound and ethical quality of the undertaken research.

Chapter 4: Findings (Data presentation) 

Row Labels	Count of How often do you shop for fashion products?
2-3 times a month	11
Occasionally	16
Once a month	11
Weekly	5
Grand Total	43

 

Figure 3: Often do you shop for fashion products

Table 4: familiar with the concept of influencer marketing in fashion retail

Figure 4: familiar with the concept of influencer marketing in fashion retail

Table 5: extent agrees that fashion influencers positively impact your purchasing decisions

Figure 5: extent agrees that fashion influencers positively impact your purchasing decisions

Table 6: Often purchase fashion products recommended by influencers

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