INCREASING CUSTOMERS’ BRAND AWARENESS WITH INFLUENCER MARKETING: A FOCUS ON INSTAGRAM

Abstract

As social media marketing is becoming an advantage for companies, they are increasingly investing in influencer marketing i.e. digital influencers to endorse their brands. Digital influencers are ordinary people that generate a base of followers by creating and posting content with an expertise in a certain area. They monetize their base by endorsing brands for a fee. This study examines social media users’ involvement in Instagram influencer following and their perceived trust in Instagram influencer branded content with the aim to determine how they affect customer’s brand awareness. For the purposes of the research study an online questionnaire was sent to Instagram users in the Republic of North Macedonia using the non-probabilistic purposive sampling method. The multiple linear regression method was applied to a set of effective 77 responses, using the statistical software SPSS to test hypotheses. The results indicate that involvement in Instagram influencer following positively affects customer’s brand awareness. This study is the first, as known by the authors, to examine the effect of involvement and perceived trust on customer’s brand awareness with the focus on Instagram. This study is also the first, as known by the authors, to examine the direct effect of involvement and perceived trust on brand awareness, as opposed to their mediating role being already analyzed in the literature. At the end of the study, conclusions along with theoretical contributions and practical implications, are given. Especially important are the recommendations given for companies and their marketing departments regarding influencer marketing activities on Instagram when it comes to improving customer’s awareness of the existence of their brand.