The effect of nano-influencers on Instagram toward consumer purchase decision on local skincare brand
List of Authors
  • Lie , Sherina Aprilla Marmora

Keyword
  • Instagram, Local Skincare Brands, Nano-Influencer, Purchase Decision

Abstract
  • Digital marketing that has been rapidly used these days such as social media marketing, specifically influencer marketing on Instagram, has a positive opportunity for promoting a brand. However, brands have a big challenge in determining which influencers are right to use to maximize their return on investment. Based on the cases of PT. Mustika Ratu Tbk. and PT. Martina Berto Tbk., they have used celebrity endorsements, but it was less effective in boosting product sales. Currently, many local skincare brands are starting to use nano-influencers to promote their products because of several advantages that nano-influencers have, though there are some drawbacks that marketers must consider. Influencer recommendations can raise consumer awareness and purchase decisions. Thus, this research will examine the effect of nano-influencers' reviews towards consumer purchasing decisions. The survey and interview method will be carried out to collect the data. The population are people in Indonesia who follow and have seen reviews from nano-influencers on Instagram about local skincare products, specifically MS Glow, Scarlett Whitening, and Somethinc, and have purchased the product from one of the three brands, with a total of 310 respondents. The data will be analyzed using PLS-SEM to examine the construct in this research. According to this research, Trustworthiness, Expertise, Likability, Informative Value, and Entertainment Value are influencing Trust. Then, Trust influences Brand Awareness and Purchase Intention. From that Brand Awareness, it significantly influences Purchase Intention and Purchase Decision. In addition, Purchase Intention also found to have influence on Purchase Decision. To summarize, marketers require a strategy to determine which nano-influencers are appropriate to promote their products, such as having the trust of their followers so that it has an effect on brand awareness, which leads to consumer purchase decisions.

Reference
  • 1. Aaker, D. A. (1991). Managing brand equity: capitalizing on the value of a brand name.

    2. Agmeka, F., Wathoni, R. N., & Santoso, A. S. (2019). The influence of discount framing towards brand reputation and brand image on purchase intention and actual behaviour in e-commerce. Procedia Computer Science, 161, 851–858. https://doi.org/10.1016/j.procs. 2019.11.192

    3. Al-Darraji, Z., Al Mansour, Z., & Rezai, S. (2020). Similarity, Familiarity, and Credibility in Influencers and Their Impact on Purchasing Intention [School of Business, Society & Engineering]. https://www.diva-portal.org/smash/get/diva2:1437746/FULLTEXT01. pdf

    4. Almeida, M. N. de. (2019). Influencer marketing on Instagram : how influencer type and perceived risk impact choices in the beauty industry. http://hdl.handle.net/10362/71585

    5. Ambolau, M. A. P., Kusumawati, A., & Mawardi, M. K. (2015). The Influence of Brand Awareness and Brand Image on Purchase Decision (Study on Aqua Consumers in Administrative Science Faculty Brawijaya University Class of 2013). Jurnal Administrasi Bisnis (JAB), 2(2), 1–8. https://www.neliti.com/publications/85572/the-influence-of-brand-awareness-and-brand-image-on-purchase-decision-study-on-a

    6. Ansari, S., Ansari, G., Ghori, M. U., & Kazi4, A. G. (2019). Impact of Brand Awareness and Social Media Content Marketing on Consumer Purchase Decision. Journal of Public Value and Administration Insights (JPVAI), 2(2), 5–10. https://readersinsight.net/ JPVAI/article/ view/896/718

    7. Bakker, D. (2018). Conceptualising Influencer Marketing. Journal of Emerging Trends in Marketing and Management, I(1), 79–87. http://www.etimm.ase.ro/RePEc/aes/ jetimm/2018/ETIMM _V01_2018_57.pdf%0Awww.etimm.ase.ro

    8. Balaji, M. S., Jiang, Y., & Jha, S. (2021). Nanoinfluencer marketing: How message features affect credibility and behavioral intentions. Journal of Business Research, 136, 293–304. https://doi.org/10.1016/j.jbusres.2021.07.049

    9. Bayu, D. J. (2021). Jumlah Pengguna Media Sosial di Dunia Capai 4,2 Miliar | Databoks. Databoks. https://databoks.katadata.co.id/datapublish/2021/02/18/jumlah-pengguna-media-sosial-di-dunia-capai-42-miliar

    10. Campbell, C., & Farrell, J. R. (2020). More than meets the eye: The functional components underlying influencer marketing. Business Horizons, 63(4), 469–479. https://doi.org/1 0.1016/j.bushor.2020.03.003

    11. Chi, H. K., Yeh, H. R., & Yang, Y. T. (2009). The Impact of Brand Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty. The Journal of International Management Studies, 4(1), 135–144.

    12. Cho, V. (2021). The Effectiveness of Advertising Strategy: The Impact of Informative and Entertainment Value on Consumer Trusts and Subsequent Engagement. International Journal of Business & Management Studies, 02(7), 2694–1449. https://ijbms.net/ assets/files/1628454588.pdf

    13. Dao, W. V.-T., Le, A. N. H., Cheng, J. M.-S., & Chen, D. C. (2014). Social media advertising value. International Journal of Advertising, 33(2), 271–294. https://doi.org/10.2501/ija-33-2-271-294

    14. Dapas, C. C., Sitorus, T., Purwanto, E., & Ihalauw, J. J. O. I. (2019). The Effect of Service Quality and Website Quality of Zalora.com on Purchase Decision as Mediated by Purchase Intention. Quality - Access to Success, 20(169), 87–92.

    15. Djafarova, E., & Rushworth, C. (2017). Exploring the credibility of online celebrities’ Instagram profiles in influencing the purchase decisions of young female users. Computers in Human Behavior, 68, 1–7. https://doi.org/10.1016/j.chb.2016.11.009

    16. Ducoffe, R. H. (1996). Advertising Value and Advertising on the Web. Journal of Advertising Research, 36(5), 21–35.

    17. Dwidienawati, D., Tjahjana, D., Abdinagoro, S. B., Gandasari, D., & Munawaroh. (2020). Customer review or influencer endorsement: which one influences purchase intention more? Heliyon, 6(11). https://doi.org/10.1016/j.heliyon.2020.e05543

    18. Erdogan, B. Z. (1999). Celebrity Endorsement: a Literature Review. Journal of Marketing Management, 15, 291–314. https://www.academia.edu/9586972/Celebrity_Endorse ment_a_Literature_Review_B_Zafer_Erdogan_1999

    19. Evans, D. (2008). Social Media Marketing: An Hour a Day (illustrate). Wiley Publishing, Inc.

    20. Fajria, I. (2018). Pengaruh Promosi Penjualan Celebrity Endorser Terhadap Keputusan Pembelian Produk Kosmetik Mustika Ratu. Jurnal Ilmu Manajemen, 6(1), 1–8. https://jurnal mahasiswa.unesa.ac.id/index.php/jim/article/view/22650

    21. Gunawan, J. (2022). Influencer Marketing Tips & Strategi untuk Tahun 2022. Meson. https://meson-digital.com/blog/kol-influencer-marketing-tips/

    22. Gunawan, L., Haryono, S., & Andreani, F. (2021). Social Media Influencer, Brand Awareness, and Purchase Decision Among Generation Z In Surabaya. Journal of Management and Entrepreneurship, 23(1). https://doi.org/10.9744/jmk.23.1.18–26

    23. Guruge, M. (2018). Comparison between Attributes related to Celebrity Endorsement and Social Media Influencer Marketing: A Conceptual Review. Sri Lanka Journal of Marketing, 4(1), 17–37.

    24. Haasiani, N. (2021, March 25). Data Penjualan Kosmetik Wajah: Brand Lokal Kuat Bersaing. Compas.Co.Id, 1–1. https://compas.co.id/article/data-penjualan-kosmetik/

    25. Hadiallah, S. (2018). Pengaruh Celebrity Endorser Dan Harga Terhadap Keputusan Pembelian Produk Kosmetik Mustika Ratu (Survei Pada Mahasiswa Feb Unpas Pengguna Kosmetik Mustika Ratu) [Universitas Pasundan]. http://repository.unpas.ac.id/ 38291/3/BAB 1.pdf

    26. Harshitha, S., Shetty, R., & Sairam, D. P. S. (2021). Social Media Marketing: B2B Marketing via Nano Influencers. Journal of University of Shanghai for Science and Technology, 23(07), 1377–1387. https://doi.org/10.51201/jusst/21/07335

    27. Hassan, S. H., Teo, S. Z., Ramayah, T., & Al-Kumaim, N. H. (2021). The Credibility of Social Media Beauty Gurus in Young Millennials’ Cosmetic Product Choice. PLOS ONE, 16(3). https://doi.org/https://doi.org/10.1371/journal.pone.0249286

    28. Heijden, E. van der. (2020). Do Followers Buy Products that Influencers Endorse Online? In Redboud Universiteit. https://theses.ubn.ru.nl/bitstream/handle/123456789/9395/ Heijden%2C_Eva _van_der_1.pdf?sequence=1

    29. Hublikar, P. (2020). The Study Of The Effect Of The Internet Influencers OnSmall Scale Restaurants In Dublin Using Instagram (Issue August) [National College of Ireland]. http://norma.ncirl.ie/4665/1/pratikhublikar.pdf

    30. Janssen, L., Schouten, A. P., & Croes, E. A. J. (2022). Influencer advertising on Instagram: product-influencer fit and number of followers affect advertising outcomes and influencer evaluations via credibility and identification. International Journal of Advertising, 41(1), 101–127. https://doi.org/10.1080/02650487.2021.1994205

    31. Jeremy, J., & Antonio, F. (2021). Antecedents of Trust in Brand Post on Brand Awareness and it Impacts to Purchase Intention. Enrichment: Journal of Management, 12(1), 290–295. https://enrichment.iocspublisher.org/index.php/enrichment/article/view/207/154

    32. Karouw, D. E. Z., Worang, F. G., & Pandowo, M. H. C. (2019). Millennial Trust Through Endorser Credibility on Local Influencer Endorsement on Instagram. Jurnal EMBA, 7(3), 3818–3827. https://ejournal.unsrat.ac.id/index.php/emba/article/view/24881/ 24586

    33. Keller, K. L. (2013). Strategic Brand Management (4th ed.). Pearson Education, Inc. http://brandabout.ir/wp-content/uploads/Keller_Strategic_Brand_ManagementBookFi.pdf

    34. Kemp, S. (2021). DIGITAL 2021: INDONESIA. Data Reportal. https://datareportal.com/ reports/digital-2021-indonesia

    35. Kim, D. Y., & Kim, H. Y. (2021). Trust me, trust me not: A nuanced view of influencer marketing on social media. Journal of Business Research, 134, 223–232. https://doi.org/10. 1016/j.jbusres.2021.05.024

    36. Kotler, P., & Keller, K. L. (2009). Marketing Management (13th ed.). Pearson Education, Inc. https://www.academia.edu/42247176/Philip_Kotler_Marketing_Management_13th_Ed_1_www

    37. Lertwilairatanapong, C. (2020). How Social Network Influencer Influences on Buying Process of Skincare Via Online Platform in Thailand. https://archive.cm.mahidol.ac.th/ bitstream/123456789/3553/1/TP MM.010 2020.pdf

    38. Lou, C., & Kim, H. K. (2019). Fancying the New Rich and Famous? Explicating the Roles of Influencer Content, Credibility, and Parental Mediation in Adolescents’ Parasocial Relationship, Materialism, and Purchase Intentions. Frontiers in Psychology, 10. https://doi.org/10.3389/fpsyg.2019.02567

    39. Lou, C., & Yuan, S. (2019). Influencer Marketing: How Message Value and Credibility Affect Consumer Trust of Branded Content on Social Media. Journal of Interactive Advertising, 19(1). https://doi.org/10.1080/15252019.2018.1533501

    40. Lu, B., Fan, W., & Zhou, M. (2016). Social presence, trust, and social commerce purchase intention: An empirical research. Computers in Human Behavior, 56, 225–237. https://doi.org/10.1016/j.chb.2015.11.057

    41. Martensen, A., Brockenhuus-Schack, S., & Zahid, A. L. (2018). How Citizen Influencers Persuade Their Followers. Journal of Fashion Marketing and Management, 22(3), 335–353. https://doi.org/10.1108/JFMM-09-2017-0095

    42. Müller, C. M. (2019). Disclosing or Disguising Influencer Marketing on Instagram? [University of Amsterdam]. http://www.digicomlab.eu/research-projects-2019/thesis-funding-grants-results-for-2019/thesis-grants-disclosing-or-disguising-influencer-marketing-on-instagram/

    43. Myers, S. (2021). Instagram Source Effects: The Impact of Familiarity and Likeability on Influencer Outcomes. Journal of Marketing Development and Competitiveness, 15(3). https://doi.org/10.33423/jmdc.v15i3.4540

    44. Nagel, D. M., Giunipero, L., Jung, H., Salas, J., & Hochstein, B. (2021). Purchaser Perceptions of Early Phase Supplier Relationships: The Role of Similarity and Likeability. Journal of Business Research, 128, 174–186. https://doi.org/10.1016/j.jbusres.2021.01.026

    45. Ngarmwongnoi, C., Oliveira, J. S., AbedRabbo, M., & Mousavi, S. (2020). The Implications of eWOM Adoption on the Customer Journey. Journal of Consumer Marketing, 37(7), 749–759. https://doi.org/10.1108/JCM-10-2019-3450

    46. Ohanian, R. (1990). Construction and Validation of a Scale to Measure Celebrity Endorsers’ Perceived Expertise, Trustworthiness, and Attractiveness. Journal of Advertising, 19(3), 39–52. https://doi.org/10.1080/00913367.1990.10673191

    47. Phung, L., & Luning, Q. (2018). Perception of Social Media Influencers - A study on evaluation of Social Media Influencer types for different beauty categories. https://www.diva-portal.org/smash/get/diva2:1213878/FULLTEXT01.pdf

    48. Rahmah, S., & Ren, D. (2019). The Impact Of Micro-Influencer Marketing On Millennials Purchasing Decision [SKEMA Business School]. https://doi.org/10.13140/RG.2. 2.26944.35841

    49. Rostanti, Q. (2021, March 17). Produk Kecantikan Lokal Makin Diminati Konsumen | Republika Online. Republika.Co.Id. https://www.republika.co.id/berita/qq43s5425/produk-kecantikan-lokal-makin-diminati-konsumen

    50. Satriawan, K. A., & Setiawan, P. Y. (2020). The Role of Purchase Intention in Mediating the Effect of Perceived Price and Perceived Quality on Purchase Decision. International Research Journal of Management, IT and Social Sciences, 7(3), 38–49. https://doi.org/1 0.21744/irjmis.v7n3.887

    51. Shan, C. C., Meng, L. W., Wen, T. R., & Wen, T. E. (2018). Impact Of Social Media Influencer On Instagram User Purchase Intention: The Fashion Industry [University Tunku Abdul Rahma]. http://eprints.utar.edu.my/3105/1/fyp_MK_2018_LWM.pdf

    52. Stephanie, C. (2021). Berapa Lama Orang Indonesia Akses Medsos Setiap Sehari? Kompas.Com, 1. https://tekno.kompas.com/read/2021/02/23/11320087/berapa-lama-orang-indonesia-akses-internet-dan-medsos-setiap-hari

    53. Suksan, M. (2021). Factors are Supporting Instagram Food Influencer to Gain Customer Loyalty. https://archive.cm.mahidol.ac.th/bitstream/123456789/4361/1/TP MM.034 2021.pdf

    54. Vodák, J., Novysedlák, M., Čakanová, L., & Pekár, M. (2019). Who is Influencer and How to Choose the Right One to Improve Brand Reputation? Managing Global Transitions, 17(2), 149–162. https://doi.org/10.26493/1854-6935.17.149-162

    55. Weismueller, J., Harrigan, P., Wang, S., & Soutar, G. N. (2020). Influencer Endorsements: How Advertising Disclosure and Source Credibility Affect Consumer Purchase Intention on Social Media. Australasian Marketing Journal, 28(4), 160–170. https://doi.org/10.101 6/j.ausmj.2020.03.002

    56. Wibawa, R. C., Pratiwi, C. P., & Larasati, H. (2021). The Role of Nano Influencers Through Instagram as an Effective Digital Marketing Strategy. Advances in Economics, Business and Management Research, 198. https://www.atlantis-press.com/proceedings/t-a-c-23-21/125965539

    57. Wielki, J. (2020). Analysis of the role of digital influencers and their impact on the functioning of the contemporary on-line promotional system and its sustainable development. Sustainability (Switzerland), 12(17). https://doi.org/10.3390/su12177138

    58. Zhang, Y., Lin, Y., & Goh, K. H. (2018). Impact of online influencer endorsement on product sales: Quantifying value of online influencer. Proceedings of the 22nd Pacific Asia Conference on Information Systems - Opportunities and Challenges for the Digitized Society: Are We Ready?, PACIS 2018. https://core.ac.uk/download/pdf/301375963.pdf.