The Impact of Instagram Influencers

on Millennial Consumers in the

Fashion Market
GROUP NO. 5

Members:

Marco Mabanan
Rosario Estacio
Trishia Santos
Catherine Ralar

CM7: Communication Research

Prof. Ma. Cecilia Mariano Eugenio

October 08, 2024

INTRODUCTION

The rapid growth of social media platforms has significantly transformed marketing
strategies, with Instagram being one of the most influential channels for consumer
engagement, particularly in the fashion industry. With over a billion monthly active users,
Instagram has become a key platform where fashion brands interact with their target
audience. One of the most remarkable features of this platform is the rise of influencers
individuals who have cultivated a large and dedicated following through their content.
Influencers, particularly in the fashion industry, are now regarded as pivotal players in
shaping consumer behavior, brand perceptions, and purchasing decisions (Sijabat et al.,
2022)
Instagram influencers operate as a new form of celebrity endorsement, although with a more
personal and relatable connection to their audience. Unlike traditional celebrity
endorsements, influencers often come from the same demographic as their followers, which
helps to foster trust and authenticity in their endorsements (Glucksman, 2017). Their posts,
stories, and live sessions allow them to build a continuous dialogue with their followers,
often blending personal experiences with brand promotion. This kind of engagement,
according to Boerman et al. (2017), is more likely to resonate with younger consumers, such
as millennials, who prefer transparent and interactive marketing methods.
Millennial consumers, who grew up alongside the rapid evolution of the internet and social
media, are especially susceptible to the influence of social media content. According to a
report by Pew Research Center (2020), millennials are highly active on Instagram and are
more likely to trust influencers for product recommendations compared to other generations.
These consumers value the opinions of their favorite influencers, often making purchasing
decisions based on these endorsements (Jin & Phua, 2014). Studies show that millennials
are more inclined to engage with brands through influencers, and this engagement
frequently translates into increased brand loyalty (Hwang & Zhang, 2018)
The fashion industry has been particularly adept at utilizing influencer marketing. Fashion
brands frequently collaborate with influencers to increase brand visibility, reach new
audiences, and encourage consumer purchases. Influencers showcase clothing, accessories,
and beauty products in ways that resonate with their followers’ preferences and lifestyles,
creating a seamless blend between entertainment and promotion (Agrawal, 2016). This
personalized approach to marketing is vastly different from traditional advertising, where
brands communicate with consumers from a top-down perspective. Instead, influencers
enable a more grassroots form of brand communication, fostering community and
engagement among followers (Djafarova & Rushworth, 2017).
As the fashion industry continues to evolve in the digital age, the role of influencers is
becoming more central to marketing strategies. However, the extent of their influence,
particularly in fostering long-term brand loyalty among millennial consumers, remains a
subject of ongoing research. This study seeks to fill that gap by examining how Instagram
influencers contribute to brand loyalty and what specific influencer activities (e.g.,
sponsored posts, stories, and live sessions) are most effective in the fashion market. By
exploring these dynamics, the study aims to provide insights into the evolving relationship
between influencers and millennial consumers, offering valuable lessons for both marketers
and future researchers.
Statement of the Problem
The rise of Instagram influencers has significantly transformed the fashion market, among
millennial consumers. There have several concerns regarding their influence on purchasing
behavior, brand perception, and ethical implications. This study aims to seek answer to the
following questions:
1. How the activities of the Instagram Influencers may be described in terms of:
1.1 Sponsored posts
1.2 Stories
1.3 Live sessions
2. How does Instagram influencers contribute to brand loyalty of consumers terms of:
2.1 Engagement
2.2 Repeat Customer Sales
2.3 Brand mentions and hashtags
3. How do Instagram Influencers’ various activities affect brand loyalty among millennial
consumers?

Related Literature Review (RRL)

Influence of Instagram on Consumer Behavior

Instagram, with its visual-centric platform, has revolutionized the way consumers discover and
interact with brands, particularly in the fashion industry. It is a key player in influencer
marketing, where individuals with large followings promote products in a relatable and authentic
manner. Influencers act as mediators between brands and consumers, and their opinions
significantly shape consumer behavior. This personalized form of advertising creates a more
intimate connection with the audience compared to traditional marketing.

Recent studies suggest that influencers’ credibility and the relatability of their content are critical
to their success. Influencers who are perceived as trustworthy and authentic tend to have more
influence on their followers’ purchasing decisions. According to research conducted by Lou and
Yuan (2019), consumers often view influencer promotions as more reliable than conventional
advertising because they are embedded in personal, everyday experiences. This credibility drives
higher engagement rates, as followers are more likely to believe in the product’s value when it is
presented by a trusted individual.
Impact of Influencers on Brand Loyalty and Consumer Trust
The rise of influencer marketing has reshaped the consumer-brand relationship, particularly
among millennials and Gen Z, who prefer authentic and relatable brand interactions. According
to a meta-analysis by Ao et al. (2023), influencers’ personal connection with their followers
significantly enhances consumer trust, which is an essential driver of brand loyalty. Research
shows that consumers are more likely to develop loyalty toward brands endorsed by influencers
they trust, especially when the content is perceived as sincere and congruent with the influencer’s
image.

The literature reveals that consumer engagement with influencer content leads to both short-term
purchasing decisions and long-term brand loyalty. For instance, when influencers consistently
promote a brand, followers begin to associate that brand with the influencer’s personal values,
strengthening their connection to the product (Yüksel, 2022). This long-term exposure nurtures
brand loyalty, which is highly sought after in competitive industries like fashion.

The Role of Personalization and Engagement in Influencer Marketing

The ability of influencers to engage consumers through personalized content is what sets this
form of marketing apart from traditional methods. Influencers integrate products into their
everyday lives in a way that resonates with their followers’ preferences and lifestyles, creating a
seamless blend between entertainment and promotion. As suggested by the findings of Wong and
Chin (2023), interactive features such as Instagram stories, polls, and live sessions foster direct
engagement, making consumers feel more involved in the marketing process.

In comparison to traditional top-down marketing strategies, influencer marketing offers a more

grassroots approach. Djafarova and Rushworth (2017) argued that influencers enable a form of
brand communication that feels organic, as their followers often view them as friends or peers
rather than distant celebrities. This type of personalized, relatable content not only increases
engagement but also enhances the perceived authenticity of the marketing message.

Ethical Considerations and Transparency in Influencer Marketing

While influencer marketing offers brands many benefits, concerns regarding ethical transparency
have emerged. Studies by Boerman et al. (2017) highlight the importance of clear disclosure in
influencer marketing, as consumers often express skepticism when they perceive that the
influencer is solely motivated by monetary gain. According to Sprout Social (2024), influencers
who disclose sponsorships transparently maintain higher levels of trust among their followers.

As brands continue to explore influencer collaborations, the balance between authentic

promotion and commercial interest remains a key consideration. According to Mintel (2023),
influencers need to maintain a high level of transparency about their paid partnerships to avoid
damaging the trust they’ve built with their followers.
.

Significant of the study

1. Fashion Brands and Marketers: This research will help to refine their influencer
marketing strategies. By understanding which activities yield higher consumer
engagement and loyalty, brands can allocate their marketing resources more effectively.
2. Policymakers: The study can provide insights into the potential risks and benefits
associated with the growing influence of social media and influencer marketing. It can be
used to inform public policy and protecting consumers and promoting fair competition in
the fashion industry.
3. Influencers: Influencers will benefit from the study by gaining insights into which of
their activities most effectively build engagement and foster trust among their followers.
This research help influencers tailor their content strategies to maximize their Influence
on brand loyalty and consumer behavior.
4. Consumers: The study can provide consumers with a better understanding of how
influencer marketing works and how it can influence their purchasing decisions to help
consumers make more informed choices and avoid potential pitfalls, such as buying
products based on influencer endorsements rather than their own needs and preferences.
5. Academic Researchers: This study will be contribute to the academic body of
knowledge in marketing and consumer behavior, particularly in the context of digital and
social media marketing. Also can serve as a foundation for further research on the
psychological mechanisms at play in influencer marketing and its long-term impact on
consumer behavior.

Theoretical framework
This study is grounded in several models and theories that help explain the interaction between
Instagram influencers and consumer behavior, particularly in the fashion industry. The
framework draws on marketing, consumer behavior, and communication theories to create a
robust foundation for the research.
 Figure 1. Hierarchy of Effects Model
The Hierarchy of Effects Model is one of the most widely recognized frameworks in marketing
communication, developed by Lavidge and Steiner in (1961). This model posits that consumers
move through several stages before making a purchase decision. These stages include awareness,
interest, desire, and action, forming a linear path from exposure to decision-making.
For Instagram influencers, this model is highly relevant. Influencers generate awareness through
content like posts, stories, and live sessions. Over time, they cultivate interest through repeated
interactions with their audience. As consumers see more of their content, Leading them closer to
making a purchase (action). According to Kotler and Keller (2016), this model is particularly
effective in explaining how digital marketing influences consumer behavior. Instagram is a visual
platform that fosters the Awareness phase with visually appealing posts and stories. Influencers
often showcase products in a lifestyle context, which immediately generates consumer interest.
Research indicates that millennial consumers are more likely to engage with products endorsed
by influencers they follow and trust (Evans et al., 2019). Furthermore, personalized
recommendations by influencers enhance Desire by aligning product endorsements with
consumers’ tastes and preferences.
At the Action stage, influencers frequently include discount codes or direct product links,
allowing consumers to easily make a purchase. According to a study by Schouten et al. (2020),
this direct connection between the influencer’s recommendation and the consumer’s purchase
behavior is key to conversion.
After the purchase, influencers can contribute to this phase by maintaining ongoing engagement
with their followers, soliciting feedback, and offering further support (Ki, Cuevas, Chong, &
Lim, 2020). Influencers often share post-purchase experiences that reinforce consumer loyalty
and encourage repeat purchases.

Figure 2. Theory of Planned Behavior

This diagram is related to theory of Planned Behavior (TPB), developed by Icek Ajzen in (1991),
and illustrates how various factors influence a consumer’s decision-making process, especially in
contexts like influencer marketing. Research shows that the authenticity and credibility of
influencers are key drivers in shaping these behavioral intentions (Lou & Yuan, 2019; Yüksel,
2022). This theory guided by three key factors: attitudes, social norms, and perceived control.
Influencer marketing heavily influences each of these factors.
Attitudes: Influencers play a pivotal role in shaping consumers’ attitudes toward brands. Since
influencers often share personal stories and experiences with the products they endorse, they
create a level of trust that traditional advertising struggles to achieve. Jin and Muqaddam (2019)
found that influencer endorsements significantly increase positive attitudes towards products,
particularly when the influencer is perceived as authentic and credible.
Social Norms: Social media platforms like Instagram amplify social influence through visible
metrics (likes, comments, shares). According to Tran and Strutton (2020), consumers are likely
to adopt behaviors endorsed by influencers because they perceive these behaviors as socially
accepted or desirable. Millennials and Gen Z, in particular, are influenced by these digital
“norms,” leading them to purchase products that are popular within their social circles.
Perceived Control: The ease of engaging with products directly through Instagram (e.g., swipe-
up links, in-app purchases) increases consumers’ perceived behavioral control. The immediacy of
purchasing a product featured in a post or story heightens the consumer’s sense of autonomy and
accessibility. Research by Yadav and Rahman (2021) shows that consumers feel more
empowered to make purchasing decisions when they can seamlessly transition from seeing a
product in a post to buying it in a few clicks.

Conceptual framework
This framework follows the Input-Process-Output (IPO) model, which is commonly used in
research to describe the stages of a study and the variables involved. In this study, the input
refers to influencer activities, the process is the engagement of millennial consumers with these
activities, and the output is the impact on brand loyalty and purchasing decisions. This
framework allows for an organized analysis of how different influencer activities affect
consumer behavior and marketing outcomes.

INPUT PROCESS OUTPUT

OUTPUT

Increased Repeat
Like, Comments,
Sales
Sponsored Posts Shares, DMs
Higher Brand
Instagram Stories Polls, Interactions
Advocacy
Live Sessions Consumer
Brand Loyalty
Involvements
Metrics
Purchase Intentions