The Role of Influencer Marketing in Building Brand

Trust and Customer Loyalty

BY

Manish Lamichhane

T.U. Reg. No: 7-2-745-20-2020

Report Submitted to

Faculty of Management,
Tribhuvan University

In the partial fulfillment of the requirements for the degree of

Bachelor of Business Studies

At

Newton International College

Narayantar, Kathmandu, Nepal

January, 2025

1
 Declaration

I hereby declare that the project work entitled “The Role of Influencer Marketing in Building
Brand Trust and Customer Loyalty” submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of NAMEE faculty
member NEWTON INTERNATIONAL COLLEGE and is submitted in partial fulfillment of
the requirement for award of the DEGREE OF BACHELOR OF BUSINESS STUDIES
(BBS). This project work report has not submitted to any other university or institution for the
award of any degree or diploma.

Signature

Manish Lamichhane

Date: JANUARY, 2025

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 Supervisors' Recommendation

The project work report entitled “The Role of Influencer Marketing in Building Brand Trust
and Customer Loyalty” submitted by Manish Lamichhane of NEWTON INTERNATIONAL
COLLEGE, Narayantar, Kathmandu, is prepared under my supervision as per the procedure and
format requirement laid by the Faculty of Management, Tribhuvan University, as partial
fulfillment of the requirements for the award of the DEGREE OF BACHELOR OF
BUSINESS STUDIES (BBS). I, therefore, recommend the project work report for evaluation.

Signature
Name of Supervisor: Dr.
NEWTON INTERNATIONAL COLLEGE
Date: JANUARY, 2025

3
 Endorsement

We hereby endorse the project work report “The Role of Influencer Marketing in Building
Brand Trust and Customer Loyalty.” Submitted by Manish Lamichhane of NEWTON
INTERNATIONAL COLLEGE, Narayantar, Kathmandu, Nepal, in partial fulfillment of the
requirements for award of the BACHELOR OF BUSINESS STUDIES (BBS) for external
evaluation.

……………………… ……………………..
Dr. Dr.
Chairman, Research Committee Campus Chief/ Principal
Date: JANUARY, 2025 Date: JANUARY, 2025

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 Acknowledgement

I would like express my gratitude to my respected supervisor Dr., Campus Chief of NEWTON
INTERNATIONAL COLLEGE, T.U for the valuable suggestions and encouragement without
which this work would not have been completed. I also extend my sincere gratitude to staff
members of my college for providing me continuous inspiration and support.

I must give special thanks to the respected teachers, library staffs compliment for their ideas,
opinions, suggestions and valuable time and effort in going through my work.

I found myself indebted to SBL and all the staff members of this bank, who provided us their
valuable time and the information required for this study, Family Members and Friends.This
report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and
efforts for the partial fulfillment of the requirements of internal evaluation for the
degree
Bachelor of Business Administration. However, it wouldn’t have been possible without the kind
support and help of many individuals. Therefore we would like to acknowledge with gratitude to
all of them.
We wish to express our deep sense gratitude towards faculty of E-commerce Mr. RoshanBhusal
for giving me the responsibility to prepare this report along with his guidance, valuable advice,
support, and inspiration. Our thanks also go to our colleagues and well-wishers for their valuable
comments, understandings, and encouragement when it was required.
This report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and
efforts for the partial fulfillment of the requirements of internal evaluation for the
degree
Bac
This report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and
efforts for the partial fulfillment of the requirements of internal evaluation for the
degree
Bac
This report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and
efforts for the partial fulfillment of the requirements of internal evaluation for the
degree
Bac
This report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and
efforts for the partial fulfillment of the requirements of internal evaluation for the
degree
Bac

I found myself indebted to all the staff members of this company, who provided us their
valuable time and the information required for this study, Family Members and Friends.

5
Finally, I offer thanks to all who directly or indirectly contributed to prepare this report.

Thank you

Manish Lamichhane

NEWTON INTERNATIONAL COLLEGE

TABLE OF CONTENTS
Title Page……………………………………………………………………………………. 1

Declaration………………….… ................................................................................. 2

Supervisors' Recommendation …................................................................................. 3

Endorsement……………………………………………………………………………………………4

Acknowledgement …................................................................................................................ 5

Table of Contents …................................................................................................................. 6

CHAPTER 1….................................................................................................................8

Introduction….................................................................................................................8

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Background of influencer marketing in Nepal and globally ………………………………8

Importance of brand trust and customer loyalty in marketing……………………………… 9

Research problem: How does influencer marketing impact consumer trust and loyalty
…......................................................................................................................................... 10

CHAPTER 2…...........................................................................................................................11

Literature Review……………………………………………………………………………..11

21. Influencer marketing: Definition and History………………………………11

2.2 Theories related to trust-building and brand loyalty ………………………………12

2.3 Case studies of successful influencer marketing campaigns………………………………13

2.4 Comparison between traditional and influencer marketing………………………………14

CHAPTER 3….................................................................................................................15

Research Methodology………………………………15

CHATER 4…..............................................................................................................................16

Result and discussion…............................................................................................................16

4.1. Analyzing the primary data collected during the research and comparing ……………………………16

4.2 Reliability scale….................................................................................................................18

4.3 Trust…….................................................................................................................18

4.4 Brand Loyalty….................................................................................................................19

CHAPTER 5….................................................................................................................20

Conclusion & Recommendations……...............................................................................20

Summary of key findings….................................................................................................20

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Recommendations for businesses using influencer marketing………………………………21

Limitations of the study and future research areas………………………………21

CHAPTER 1
INTRODUCTION

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1.1Background of Influencer Marketing in Nepal and Worldwide
Influencer marketing – that's the game businesses have been playing to connect with
consumers ever since the advent of social media. Essentially, it is a form of partnership
between brands and credible/ reputable people online. Be it celebrities or micro-
influencers, they got a backing from their platform to endorse products and services in a
more organic and personal way compared to traditional advertisements.

As digital platforms like Instagram, TikTok, YouTube, and Facebook gained traction,
brand communication has completely turned upon its approach to connecting audiences.
Hence, influencer marketing has become an inseparable part of the modern marketing mix.

Businesses across the globe have majorly reoriented a part of their ad budget to influencer
marketing—it is a very effective way to reach an engaged audience. Reports from industry
say that which takes influencer marketing to 20 billion US dollars by 2025. Companies in
many sectors like fashion, beauty, technology, fitness, and food work with these influencers
to carry out their brand awareness and consumer engagement operations. It is the faith of
an influencer's follower base in them that brands can capitalize on to increase their
product perception's benefit.

In the last couple of years, influencer marketing has begun to gain some footing in Nepal,
thanks to the growth of local influencers on social platforms like TikTok, YouTube, and
Instagram. At present, Nepalese businesses engage with social media influencers for brand
promotion, and this takes in e-commerce platforms, clothing brands, restaurants, and
many tech companies. Apart from this, unlike the traditional marketing forms, influencer
marketing does so in a very direct and interactive manner where the consumers can engage
in real-time, able to show their love through likes, comments and shares. This method has
been very successful, going strongly mainly with younger demographics that would depend
more on peer recommendations rather than conventional ads. However, such success of
marketing by influencers is principally dependent on the authenticity and credibility of the
influencer, which in turn gives rise to questions on its long-term impact on brand trust and
customer loyalty.

1.2. Importance of Brand Trust and Customer Loyalty in Marketing

Brand trust is a critical factor in determining a company’s success, particularly in highly

competitive markets. Consumers today have access to an abundance of information and reviews,
making trust an essential component of their decision-making process. A brand that is perceived

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as reliable, ethical, and consistent in delivering quality products or services is more likely to
attract and retain customers. Trust is not built overnight; it requires sustained effort through
transparent communication, positive customer experiences, and genuine brand representation.
Influencer marketing plays a crucial role in shaping trust, as consumers often view influencers as
relatable figures whose recommendations carry more weight than traditional corporate
messaging.

Customer loyalty, on the other hand, is what keeps consumers engaged with a brand over time. It
is the result of continuous positive experiences and the perception that a brand aligns with a
customer’s values and expectations. Businesses that successfully establish brand trust are more
likely to cultivate a loyal customer base, which leads to repeat purchases and long-term
engagement. Loyal customers not only contribute to higher sales but also serve as brand
advocates, spreading positive word-of-mouth recommendations.

Influencer marketing is an effective strategy for fostering both trust and loyalty by bridging the
gap between brands and consumers. When influencers share their personal experiences with a
product or service, they humanize the brand and create a sense of authenticity. Their
endorsement acts as a form of social proof, reinforcing the brand’s credibility and encouraging
consumers to make purchasing decisions with confidence. However, for influencer marketing to
truly enhance trust and loyalty, influencers must maintain their authenticity and avoid excessive
sponsorships that could make their endorsements appear insincere. Brands also need to carefully
select influencers who align with their values and target audience to maximize the effectiveness
of their campaigns.

1.3. Research Problem: In What Form Does Influencer Marketing Affect

Consumer Trust and Loyalty?
Although social media marketing is rising in relevance, many doubts still hang over its real
potential to connect businesses with a long-term relationship of trust and loyalty. It is often
assumed that influencer marketing works exceedingly well in giving exposure. Nonetheless, a

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debate has always existed as to whether influencer-driven promotions can ultimately result in a
lasting relationship between a customer and a business. Some hold the opposite view and argue
that influencer marketing is more effective in generating periodic engagements than building
long-term customer loyalty. In addition, the increased issue of fake followers, deceptive
advertisements, and sponsorships not being divulged has many times made consumers skeptical
of such recommendations, hence showing a lack of trust in the very process of building trust.

It is the interest of this research to understand the relationship between influencers marketing and
building consumer trust and loyalty toward a brand. This will further seek to understand how
customers perceive influencer endorsements, and thereby, whether influencer marketing provides
for real brand bonding with consumers, the factors that build an influencer as being worthy of
trust, and whether such a marketing strategy does result in repeat sales and retention of
customers for a long-term relationship. Secondly, this research will indicate whether micro-
influencers—those who have a relatively smaller but more "consumable" following—perform
better than celebrities in terms of trust, as their endorsement in many cases is seen not just as a
paid endorsement.

This research will be of importance to the businesses that already have or wish to use the power
of influencer marketing strategy by answering the following questions. The findings will finally
endow companies in using influencers' abilities to form genuine relationships and maintain
loyalty with their brand. However, the potential risks to consider in this study are the loss of
credibility emanating from over-promotion or information given by the influencers regarding the
brand values, which in essence are not true at all. Knowing such dynamics will enable businesses
in Nepal and beyond to create effective and trustworthy influencer marketing campaigns.

CHAPTER 2
LITERATURE REVIEW

2.1. Influencer Marketing: Definition and History

Influencer marketing is a marketing approach that utilizes the power of individuals who have a
strong social media presence and specialized knowledge in a particular area. These individuals,

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referred to as influencers, collaborate with brands to endorse their offerings, incorporate them
into their content, and engage in other forms of content marketing.
At present the influencer marketing is a key tool to influence buying behaviour and can be
defined as the process of exploring, identifying and engaging people involved in High impact
conversation. It is an important form of online marketing in which a marketer targets a sub
population of influential people instead of the entire population of potential buyers (Zak,S., &
Hasprova, M. 2020). Organization perceives influencers as potential leaders, mediating in the
distribution of information and facilitating its discrimination to their on-line followers. As a
result, they are becoming spokesperson or ambassadors of their brands (Wielki, J. 2020).

The research shows that Influencers can be used as facilitators for building empathy,
relationships and connect with consumers. However, personal relevance is more important than
peer influence hence using the right kind of Influencers for a particular product category is
essential (Chopra, A., Avhad, V., & Jaju, A. S. 2021). The millennials prefer social network
instead; social media is becoming the interest and tracking on a daily basis. Researches confirms
that 92% of consumers have trust on word-of-mouth recommendation of their acquaintance
friends, relatives and Influencers more than any type of advertising. 70% of teenage YouTube
subscribers trust influencers opinion more than traditional celebrities and 40% of millennials
says that their favourite YouTube personality ―understands them better than their friends‖. 81%
of marketers who have already used Influencers Marketing judged it to be effective (Kadekova,
Z., & Holienčinova, M. 2018).

In reality, the very roots of the development of influencer marketing date back to the early 20th
century when companies looked at brand credibility with celebrity endorsements. The real
shakeup for marketing came when digital media arrived in the early years of this century, the
most prominent ones being blogging platforms and social media channels such as Facebook,
Instagram, YouTube, and later TikTok, where people have been given a free hand to write
opinions and experiences about products. Businesses slowly identified the potential of these
influencers to change consumer behavior and, hence, started incorporating them into marketing
strategies.
The newer trends in marketing are focused on the micro-influencers—the people who have
somewhat less following, but highly engaged. Since micro-influencers do not fall into the
traditional category of celebrity, the audience perceives a sense of authenticity and trust—factors
leading to the recommendation having more impact than classical advertising, which results in
higher engagement and conversion rates. With the changing digital waves today, influencer
marketing has become of core importance for brands all over
2.2. Theoretical Foundations of Influencer Marketing

That would be possible through the understanding of psychological and sociological theories
which influence consumer-trust relationships and brand loyalty induction. Quite a several
theories elucidate the reason why consumers presently admire an influencer's endorsement and
how this endorsement creates a purchasing behavior. There are so many theories that can explain
the dynamics behind consumer-influencer relations which will also justify the relationship
creation between the two for purchasing a product or service. Social Proof Theory, Trust
Transfer Theory, and Source Credibility Theory are very applicable in such cases.

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Social Proof Theory

Developed by Robert Cialdini, the Social Proof Theory states that, in a state of uncertainty, an
individual is most likely to follow the lead of others. Normally, when consumers see their
positively liked or followed influencer recommending a product, it is most probable that trust
and adoption of the product will follow. This is extremely effective in digitally native
environments, especially when the influencer provides use case scenarios, testimonials, or even
speaks with the audience in real-time. Basically, platforms like Instagram and TikTok have used
this effect to the fullest to allow influencers in developing great content that drives brand
visibility and credibility.

Trust Transfer Theory

The theory of trust transfer explains that trust moves from the trusted source—influencer—to the
unknown, brand. Consequently, one can improve confidence in a promoted product or service
through an endorser who is considered genuine, competent, and refers to the receiver in a
friendly manner. However, the theory highlights an extremely high emphasis placed on the right
influencer-brand fit: it is only where values and demographic audience of an influencer marry
those of a brand's target market that allow for trust transfer. In contrast, working with someone
who does not seem authentic or whose personal value system often comes across as disingenuous
is more likely to result in trust transfer backfiring and negatively impacting the reputation of both
the influencer and the brand.

Theory of Source Credibility

According to this theory, one person can be persuasive to the extent that another views or
considers them an expert, trustworthy, or likable person. Henceforth, it is found that these are the
influencers who are expert in analyzing a particular category of products, give an honest opinion
regarding their review, and create some personal relatability level with the audience; are most
able to influence in the decisions of customers. Thus, the companies need to take their brands
very seriously in forging a partnership with only those influencers whose behavior projects those
attributes that will add to the campaign's effect.

2.3 Successful Influencer Marketing Campaign Case Studies

Influencer marketing has been embraced and applied by a good number of global brands to
provoke customer engagement, increase their brand awareness, and loyalty. Following are some
real-life instances with which best practices and the impact that collaboration with influencers
can bring to growing businesses have been detailed:

Case 3: Daniel Wellington: The Power of Micro-Influencers

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Conventionalized by a Swedish watch brand, the act of influencer marketing became a
scientifically proven method for exponential growth. Undeniably, instead of going for the
traditional channels of advertising, Daniel Wellington gifted watches to almost every micro-
influencer available, further motivating them to post about the brand. The company would then
offer the same micro-influencer a personalized discount code on their first purchase, thus
motivating them to make a first purchase, setting off a chain reaction of word-of-mouth
marketing. That enabled the brand to experience considerable visibility in the market in an
extremely short time and consequently escalate sales. This was a perfect example of how
effective collaboration with micro-influencers could be.

Nike: The Ultimate Dependence on Athletes and Social Media Influencers

Nike has always been using strategies related to influencer marketing, working with athletes,
fitness trainers, and even lifestyle influencers for its campaigns. Endorsement through long-
standing individuals inevitably pumps up the credibility and appeal of Nike amid sports
enthusiasts. For instance, campaigns like just Do It nowadays are coined and created to push
forward user-generated content in the form of an activism trend, where consumers actively
participate and not merely consume the brand. It will be an area of application for how
established brands are able to make their way toward reinforcing brand trust and loyalty using
digital influencers as a means.

Nepali Brands: The Rise of Influencer Marketing in Nepal

The next frontier for influencer marketing is here, in Nepal. If today's two leading e-commerce
platforms are Daraz and Pathao and a few local beauty and fashion companies, they are jumping
on the bandwagon of using social media influencers as their best means to gain the trust of their
customers. In this way, almost all the festive sales of Daraz are done with the help of some of the
most popular influencers in Nepal, who create promotional content and go live to boost up
engagement and sales. Likewise, Pathao managed to get customers after digital influencers
portrayed ride-hailing and food delivery services, which definitely showed the way in the
increased trend of influencer marketing in Nepal's digital economy.

2.4 Comparison Between Traditional and Influencer Marketing

Marketing strategies have significantly evolved, shifting from traditional approaches to digital-
first methods like influencer marketing. Understanding the differences between these approaches
helps businesses refine their advertising strategies.

Traditional Marketing

Traditional marketing relies on channels such as television commercials, print advertisements,

billboards, and radio spots. While these methods allow brands to reach a wide audience, they
often lack personalized engagement and are costly. Additionally, consumers today are more
skeptical of direct advertising, reducing the effectiveness of traditional marketing.

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Influencer Marketing

Influencer marketing, in contrast, is highly interactive and targeted. It allows brands to reach
niche audiences through trusted social media personalities. One of the primary advantages of
influencer marketing is its ability to foster two-way communication—consumers can directly
engage with influencers, ask questions, and receive authentic feedback. Additionally, influencer
marketing tends to yield a higher return on investment (ROI), as organic reach and word-of-
mouth play a significant role in driving conversions.

Another key difference is credibility. Traditional advertisements are created by brands and often
perceived as promotional, whereas influencer marketing leverages personal recommendations,
making it more trustworthy. However, influencer marketing is not without risks; if an influencer
loses credibility or promotes a product in authentically, it can harm both their reputation and that

CHAPTER 3

RESEARCH METHODOLOGY
The aim of this research paper is to determine the influence of influencer marketing on consumer
purchase behavior and brand loyalty. Additionally, it also aims to examine the productiveness of
influencer generated content in building brand awareness and consumer trust. In order to achieve
the stated objectives, primary and secondary sources of information were collected. The primary
data was collected through survey and the secondary data was collected through various sources
such as journals, internet, newspaper, etc.

15
To achieve these objectives, we used quantitative methods of inquiry. As a part of the study, we
applied a quantitative method of inquiry – questioning using an online questionnaire which was
circulated via Google forms. The data was collected from 103 respondents of the age group
varying from 16 to 28 years. The numerical data then was analyzed statistically to determine the
influence of influencer marketing. We conducted a percentage analysis to obtain insights into the
distribution of responses from our respondents. The calculation helped us summarize the
frequency of certain attitudes, opinions, behavior within our sample. We also calculated the
mean value as a measure of central tendency. The average response from the participants, giving
us an overall understanding of their views and actions regarding influencers marketing was
provided by mean. The sample of the study was done through convenient sampling techniques.
To enhance the reliability, we conducted reliability checks and used appropriate statistical
analysis.

CHAPTER 4

RESULTS AND DISCUSSION

4.1. Analyzing the primary data collected during the research and comparing
The main objective of the survey was to determine the influence of influencer marketing on
consumer purchase behavior and brand loyalty and also to know the productiveness of influencer
generated content in building brand awareness and consumer trust by the respondents. After
collecting the data, we conducted an analysis to examine the central tendency of the collected

16
variables. To present the findings in a clear and organized manner we have included a table that
showcases the result.

Table 1

QuestionNo. 5 4 3 2 1 Mean
Q1 0 0 52 28 21 2.3069307
Q2 0 0 57 23 18 2.3267327
Q3 0 0 2 77 21 1.7920792
Q4 0 0 32 21 48 1.8415842
Q5 0 0 47 21 33 2.1386139
Q6 0 0 47 22 32 2.1485149
Q7 0 0 38 50 13 2.2475248
Q8 0 0 37 22 41 1.9405941
Q9 0 0 46 15 39 2.049505
Q10 0 2 43 32 23 2.2178218
Q11 0 6 27 16 49 1.8415842
Q12 4 12 18 25 38 2.0792079
Overall 2.0775578
Mean

By analyzing the primary data collected during the research and comparing

them with earlier collected secondary data, several important conclusions can be drawn. The
findings of our survey aim to reveal the complex dynamics, surrounding influencers marketing
and its impact on consumer behavior, brand loyalty and brand awareness. The mean result of
2.0775578 gives a valuable insight into the perceived influence of influencers marketing on
consumer behavior and brand related outcomes. The mean of 2.0775578 suggest a moderate
overall influence of influencers marketing on consumer purchase behavior. While this value is

Above the midpoint, it indicates that, on average, respondents incline towards perceiving The
result doesn‘t strongly incline towards a high or low influence on brand loyalty. This could
suggest that Influencers play a varied role in influencing brand loyalty among respondents, and
their impact may not be uniform across the surveyed population. Average productiveness in
building brand awareness – The mean result being slightly above the midpoint put forward that,
on average, respondents perceive influencers generated content as moderately effective in
building brand awareness. This aligns with the 49% who strongly believe that Influencers
marketing is effective for brand awareness, indicating a positive overall percentage. Mixed
impact on consumer trust – The result doesn‘t strongly incline towards high or low effectiveness
in building consumer trust. This could suggest a mixed perception of trustworthiness in
influencers generated content. The survey results indicate a frequent engagement with influencer
generated content on social media with 78% of respondents either regularly or occasionally
following influencers. Regardless a moderate level of dubiousness about influencers genuineness

17
in recommendations (47%believing that are often biased) 70% agree that Influencers Marketing
increases brand credibility. When it comes to engaging with brand content endorsed by
influencers 42% are somewhat likely, indicating that Influencers play a significant role in
shaping consumer perception. This aligns with the 49% who strongly believe that Influencers
marketing is effective for building brand awareness. However, the impact of purchase decision is
subtle. While 36% have made a purchase based on an Influencers recommendation, 41% have
never done so. Trust in influencers is evenly split, with 20% finding them trustworthy, 31%
unsure, and 47% perceiving influencers as often biased. Engagement with brands is a large
extent low, with 59% rarely or never engaging. The stimulus for engagement varies, with 38%
driven by discount or promotion and 24% by interesting and relevant content. Moreover, the
significance of brand influencer collaboration for attaining loyalty is subjective, with 56%
expressing neutrality. This contrast with 22% who find it very important.

The result serves as a scope navigating the multifaceted terrain of influencers marketing. It
directs us to through landscape of moderate influence, varied brand loyalty considerations and
effectiveness in brand awareness. The result provides understanding of the influence of
influencers marketing, signaling a moderate impact on purchase behavior and brand related
outcomes.

4.2. RELIABILITY SCALE

We performed a factor analysis to determine if we can group our variables into one common variable, and
the variables loaded on the same factor. This was performed to group Trust variables, Behavioral Loyalty
and Attitudinal Loyalty. Before doing any analyses, a Cronbach’s Mean was carried to access the internal
reliability of the scale. It was carried to access the internal reliability of Likert Scale questions, mainly
“Trust” “Attitudinal Loyalty” and “Behavioral Loyalty”. The results showed a variation between .606 and
.781 which can be seen in Table 1, which we considered as good enough to group the variables.

Scales Initialnumberof Cronbach'sAlpha FinalnumberofItems

Items

Trustworthiness 5 .781 5

BehavioralLoyalty 4 .606 4

AttitudinalLoyalty 5 .698 5

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4.3. TRUST
First, we conducted a one-way ANOVA to evaluate and compare the effect of the independent variable
(Trustworthiness Exposure) on Trust. Respondents’ perceptions of their Perceived Trustworthiness were
assessed by asking the following questions: “I perceive this influencer as dependable”, “I perceive this
influencer as honest”, “I perceive this influencer as reliable”, “I perceive this influencer as sincere” and “I
perceive this influencer as trustworthy”. Results showed positive effect of the Genuineness Exposure on
Trust (F=8.59, p=.004). Combining the opinions about the influencer, in the Ungenuine condition, the
influencer was perceived more negatively than in the Genuine condition (MNOGENExp = 3.59, VS.
MGENExp = 4.01) which can be observed in Table 3

Dimension ConditionExposure Mean df F Sig.

Ungenuine 3.591 1 8.592 .004

(n=43)

Trustworthiness Genuine 4.018 1

(n=45)

4.4. BRAND LOYALTY

A one-way ANOVA was conducted to evaluate and compare the effect of the independent variable
(Genuineness Exposure) on both dependent variables (Behavioral Loyalty and Attitudinal Loyalty).
Results showed positive effect of the Genuineness Exposure on Behavioral Loyalty (F=4.106, p=.046).
When exposed to the Genuine Condition, respondents reported higher levels of Behavioral Loyalty than
in the Ungenuine Condition (MNOTRUSTExp = 3.86, VS. MTRUSTExp = 4.07). However, when testing
the Attitudinal Loyalty as dependent variable and Genuineness Exposure as the independent variable,
there was no statistically significant interaction (F=1.766, p=.187) However, when exposed to the
Genuine Condition, respondents did report higher levels of Attitudinal Loyalty than in the Ungenuine
Condition (MNOTRUSTExp = 3.87, VS. MTRUSTExp = 4.02).

Dimension ConditionExposure Mean df F Sig.

Ungenuine 3.826 1 4.106 .046

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 (n=43)
BehavioralLoyalty Genuine 4.078 1

(n=45)
Ungenuine 3.870 1 1.766 .187

(n=43)
AttitudinalLoyalty

Genuine 4.027 1

(n=45)

CHAPTER 5
CONCLUSION:
Influencer marketing is recognized as impactful for brand awareness and credibility. The research
emphasis the multifaceted nature of influencers marketing. While it crucially impacts brand awareness
and credibility, it‘s undeviating influence on purchase decision varies. The differing attitudes towards
influencers stress the significance of brand to navigate partnerships carefully, aligning with consumer
expectations and trust. Furthermore, the research focus on the needs for a comprehensive social media
strategy beyond influencers. Encompassing relevant content and promotions is important for deriving
meaningful engagement and amplifying overall marketing productiveness. The study offers valuable
insights into the intricate world of influencers marketing. It gives a scope for brands looking to leverage
this strategy effectively. The research findings contribute to the understanding of Influencer marketing,
guiding brands to navigate its problem strategically. The average influence on purchase behaviour
emphasis the significance of addressing challenges related to trust, authenticity, and individual consumer
perceptions. The extensive understanding will enable brands in developing a well-rounded social media
strategy that extend beyond influencers, incorporating diverse elements to increase overallengagement
and effectiveness.

5.1 Summary of Key Findings

The study reveals several key findings regarding the role of influencer marketing in building
brand trust and customer loyalty:

 Influencer Trust and Authenticity: Consumers place high value on the authenticity of
influencers. Influencers who provide transparent and genuine endorsements are seen as
more credible, leading to higher trust levels in the brands they promote.

20
  Impact on Brand Loyalty: Influencer marketing has a positive influence on brand
loyalty. Consumers who feel a connection with an influencer are more likely to develop
loyalty toward the brand they endorse, leading to repeat purchases and long-term
engagement.
 Micro-Influencers vs. Celebrity Influencers: Micro-influencers are perceived as more
relatable and trustworthy than celebrity influencers. Their smaller but highly engaged
following makes them more effective in fostering brand loyalty and driving conversions.
 Consumer Buying Behavior: Influencer marketing significantly affects consumer
buying decisions. A large percentage of consumers report making purchases based on
influencer recommendations, indicating the power of influencers in shaping consumer
behavior.

5.2 Recommendations for Businesses Using Influencer Marketing

Based on the findings, the following recommendations are proposed for businesses using
influencer marketing to build brand trust and customer loyalty:

 Focus on Authentic Influencers: Brands should collaborate with influencers who share
authentic, personal experiences with the product or service. Authenticity fosters trust and
makes the brand appear more reliable to the target audience.
 Long-Term Influencer Partnerships: Instead of one-off campaigns, brands should build
long-term relationships with influencers. Long-term collaborations enhance brand
visibility and create more meaningful connections between the brand, influencer, and
consumers.
 Leverage Micro-Influencers: Micro-influencers have a high level of engagement and a
more targeted audience, making them valuable for brands looking to build trust and
loyalty. Their smaller but loyal following can generate more meaningful interactions with
the brand.
 Personalize Influencer Collaborations: Brands should select influencers who resonate
with their target audience. The more aligned the influencer is with the brand's values and
customer base, the more successful the partnership will be.
 Track and Optimize Campaign Performance: Brands should continuously monitor and
evaluate influencer marketing campaigns to assess their impact on customer trust and
loyalty. Using performance metrics such as engagement rates and conversion rates will
help optimize future campaigns.

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5.3 Limitations of the Study and Future Research Areas

While this study provides valuable insights, it has several limitations that should be
acknowledged:

 Limited Sample Size and Scope: The study may not be representative of all
demographics or industries. A broader sample that includes diverse age groups,
geographic regions, and industries could provide more generalized insights.
 Self-Reported Data: The research relied heavily on self-reported data through surveys
and interviews, which can be biased. Respondents may have provided socially desirable
answers, especially regarding their trust in influencers or their purchasing behavior.
 Influencer Marketing Across Different Industries: The study primarily focuses on
general consumer behavior. Future research could investigate how influencer marketing
affects brand trust and loyalty in specific industries, such as beauty, fashion, technology,
or health.
 Changes Over Time: Consumer preferences and behaviors around influencer marketing
may change over time due to evolving social media trends or shifts in influencer content
strategies. Longitudinal studies could offer insights into how these changes impact brand
loyalty in the long term.

Future Research Areas:

 Cross-Platform Influencer Impact: Future research could examine the differences in influencer
effectiveness across different platforms (e.g., Instagram, YouTube, TikTok) to determine which
platform provides the highest ROI for brands.
 The Role of Influencer-Generated Content: Investigating how user-generated content and
influencer collaborations affect brand loyalty could provide brands with new strategies for
leveraging influencer marketing.
 Cultural Influences on Trust: Cross-cultural studies could explore how influencer marketing
works differently in various regions or cultures, helping global brands tailor their influencer
strategies accordingly.

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