Influencer Marketing Impact on Consumer Decision-Making: A Review

This literature review explores the multifaceted impact of influencer marketing on consumer decision-making, with a specific focus on its application within the restaurant industry, particularly in the UAE. The review encompasses several key themes, including the fundamental concepts of influencer marketing and its influence on consumer choices, the direct links between consumer decision-making processes and influencer strategies, the effective use of influencer marketing within the restaurant sector, and recommendations for optimizing the impact of influencer marketing campaigns. The review highlights the increasing importance of social media marketing, the role of micro-influencers, and the significance of building trust and credibility with consumers. It also examines how influencers influence the restaurant industry, increasing customer visits and profitability. Finally, the review offers recommendations for enhancing the effectiveness of influencer marketing to increase its influence on consumer decision-making.

LITERATURE REVIEW

TABLE OF CONTENTS
LITERATURE REVIEW................................................................................................................1
Overview......................................................................................................................................1
Theme 1 Concept of Influencer Marketing and Consumer decision-making..............................1
Theme 2 Link between Consumer decision-making and Influencer Marketing.........................2
Theme 3 Concept of Influencer Marketing influencing the Restaurant industry........................4
Theme 4 Recommendations to increase effect of Influencer Marketing on Consumer decision
making.........................................................................................................................................5
Summary......................................................................................................................................6
REREFENCES................................................................................................................................7

LITERATURE REVIEW
Overview
Marketing is one of the most important factors that helps the organizations to ensure
successor failure of products and services. There are various kinds of marketing that are being
used by the organizations for enhancing sales of their products and services. Influencer
marketing is one of the well- known marketing ways which is being focused on by organizations
for enhancing their overall sales (Childers, Lemon and Hoy, 2019). Influencer marketing can be
defined as a kind of marketing which majorly focuses on using key leaders to drive brand’s
message to larger market. It not only helps them to enhance their overall sales and profitability
but it also helps the business to increase customers loyalty among their consumers abut their
products and services. In UAE, restaurant industry is one such industry which is getting
benefitted by influencer marketing as they can easily reach their target customer base and
enhance their overall sales of their products and services.
Theme 1 Concept of Influencer Marketing and Consumer decision-making
According to the view of Xiao, Wang and Chan-Olmsted, (2018) Influencer Marketing one
of the most important form of online or social media marketing. It is a combination of both old
and new modern marketing tools. Influencer marketing completely revolves around influencers
present within online settings. It helps organizations to influence purchase decision making of
customers. Instead of simply promoting a product online, most of the organizations today are
focusing upon adaptation of influencer marketing in order to increase their overall sales of their
products and services. It is a kind of marketing in which product or service endorsement is
mentioned from influencers who have appropriate social following and are viewed as experts
within their niche. Lim and et al., (2017) explains that, influencer marketing majorly works and
is successful because maximum amount of people who trust their influencers and follow things
that have been recommended by them. They work as a form of social proof for potential and
targeted customers of the organization. Social networking sites is one of the best platforms for
Influencer Marketing. Some of the people have even turned influencer marketing into a full- time
career. Many brands have built partnership with some influencers in order to increase popularity
of their products and services which further helps them to increase overall sales of their services
as well as of products. According to a research more than 90 percent of people believes that
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products recommended from a known person must be good and starts using it (Ofek, Libai and
Muller, 2018).
As per the view of Anand, Dutta and Mukherjee, (2019) Consumer decision-making is a
process through which consumers select most appropriate products and services out of various
alternatives. Today it has become one of the most important process which should be researched
on by the organizations so that they can understand what are the main factors that influences
customers purchase or buying decision making. Decision making process of consumers goes
through a series of steps that starts from research of product to purchasing to after purchase
experience (Mehran, Kashmiri and Pasha, 2018). It is important for organizations to focus on
fulfilling needs and requirements of customers and resolve their issues so that their problem can
be resolved and their overall satisfaction can be increased. As cited by, Wellman and et al.,
(2020) explains that, Consumer decision making starts from recognition of their problems or
needs which helps in motivating customers to understand their problems and starts gathering
information about products or services that can fulfil their needs or can resolve their problems.
After gathering information about products and services customers start evaluating various kinds
of available products in the market. Evaluation of products and service helps them to take
decision about purchase of a product. Post purchase decision making of a customer’s completely
depends upon their experience with the product that has been purchased by them. If expectations
of customer is fulfilled, then this can lead to repeat purchase of product by the consumer which
can further help in influencing the customers and can lead to increase in brand loyalty among
customers.
Theme 2 Link between Consumer decision-making and Influencer Marketing
According to the view of Kurien, Sharma and Das, (2016) In past few years maximum
usage of social media platform has changed buying behaviour of the customers as well as has
also influenced selling techniques used by organizations. Organizations have been affected by
excessive usage of social media platforms, restaurant industry and retail industry are one of them
as their customers purchase their products and services either on the basis of their past purchase
of on the basis of influencer marketing that can influence their purchase or buying decision.
Influencer marketing is a extension of word of mouth marketing but it focuses on social content
which is performed in a professional manner. As cited by, Mehran, Kashmiri and Pasha,
2018Qutteina and et al., 2019Parth, Kraft and Raif, (2017) explains that, relationship between
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influencer marketing upon customers is quite strong which helps the organizations to increase
loyalty among their customers and enhance trust upon products and services of the organization.
Influencer marketing is divided into two sub practises that helps an organization to strengthen
their relationship with their customers(Mehran, Kashmiri and Pasha, 2018). First kind of sub-
practise is earned influencer marketing. This is done by unpaid or pre-existing relationship of
organizations with third party or influencer who focuses on promoting their products and
services to their own social followers. Second kind of influencer marketing is paid in which
organizations focus on sponsoring influencer marketing campaigns. Both the kind of influencer
marketing has different effect on their target customer base which further helps the organization
in strengthening their relationship. Budget of both the kind of marketing is completely different.
As per the view of van Lohuizen, Barrera and Fischer, (2016) retail industry, fashion
industry and restaurant industry, these are the three kinds of industries that are benefitted by the
influencer marketing as it helps such industries to deliver their message to their customers and
helps in attracting more number of customers. There are various kinds of platforms that helps
organizations to influence their customers through influencer marketing. There are various kinds
of online and social media platforms for example: Facebook, Instagram etc. that are used by
influencers to influence their followers about a certain product or service. Usage of social media
platform helps in strengthening relationship between influencer marketing and consumers of a
product or service. According to a research it was observed that more than 70 percent people get
influenced and buy a product if that particular product or service is endorsed by a non- celebrity
influencer (Davainyte and et al., 2019).
Figure 1 Platforms used by influencers to strengthen their relationship product customers.
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As illustrated by Au-Yong-Oliveira and et al., (2019) further explains that, there are
various kinds of influencers who have opted influencer marketing as a profession and has created
their own blogs, social media pages and focus on strengthening their relationship with their
followers so that they can endorse a product and reach to their followers in a much easier
manner. Creation of individual pages or blogs helps the influencers to strengthen their
relationship with their followers this further helps them to understand what the needs and
requirements of their followers what are the things that can influence them about purchasing a
certain product or service. This strong relationship of influencers with their followers increases
success rate of influencer marketing about a product or service.
Theme 3 Concept of Influencer Marketing influencing the Restaurant industry
According to the view of Yang, Kim and Sun, (2019) Restaurant industry is one such
industry completely revolves around their target customers. It has been observed that influencer
marketing is quite fruitful for the restaurants to increase their customer visits and increase their
overall profitability. Especially micro influences such as restaurant reviewers, food bloggers
have provided that their exceptionally well work helps in enhancing positive reviews about a
restaurant, drives their local branding and marketing of their restaurant’s products and services.
Marketing done by these micro influences are impacting overall business of restaurants in many
different ways and which is also helping them to attract a greater number of customers. As cited
by, Han, Moon and Hyun, (2019) explain that ‘influencers help the restaurants to increase
interest of their customers within their food and beverage product s as well as within their service
that they provide to their customers’. These micro influencers also help the restaurants to
understand needs and desire of their customers in a much better manner. This is mainly because
these food bloggers or restaurant reviewers help the customers to relate each content posted by
them or videos to their personal level. According to a research it was observed that UAE is one
such country which extremely advance in technology and more than 70 percent restaurants over
there uses influencer marketing in order to expand their business and enhance sales of their food
and beverages. Same research explains that more than 60 percent of the customers get influenced
by the marketing of restaurants and its products that are done by mini influencers (Lin, Bruning
and Swarna, 2018).
As per the view of da Fonseca and Gustavo, (2020) As compared to macro influencers,
micro influencers are much more effective that macro influencers would post only 1 or 2 post of
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a restaurant in a day but micro influencers would be posting approximately 10 to 12 post a day.
There are various factors that helps in explaining impact of influencer marketing for the
restaurants. Today it has become important for restaurants to become socially credible as most of
the customers before visiting a restaurant prefers to check what others have posted or what kind
of reviews have been provided by other customers for the restaurant, its products as well as for
its service. As illustrated by, Vassakis and et al., (2019) explains that, it helps the restaurants to
become more cost effective i.e. instead of spending more on marketing of food and beverages
through various other kinds of marketing options they can focus on budget and get few micro
influencers so that they can post and provide reviews on the behalf of the restaurant. With the
help of influencer marketing restaurants can target a larger customer base. This is mainly
because influencers have a close and strong relationship with their followers who are loyal to
them as well. This increases chances for the restaurants to attract a greater number of customers
from different demographic and wide interest and influence them to visit their restaurants. But
most importantly it helps the restaurants to get more amount of online exposure for their brand.
Theme 4 Recommendations to increase effect of Influencer Marketing on Consumer decision
making
According to the view of Chen and Jai, (2018) there are various ways through which
organizations can focus on increasing effect of influencer marketing on decision making of their
customers. First is to get to know their followers, their needs, things liked by them, things
disliked by them, their requirement in a better manner. It is one of the main priorities of the
influencers as it will further help them to strengthen their relationship with their followers which
will further help them to enhance effect of Influencer Marketing on Consumer decision making.
As cited, Kim, Lee and Goh, (2017) explains that, most of the customers today focus on healthy
lifestyle, influencers can focus on marketing of the products and services which will further their
followers to enhance their healthy living lifestyle.
As per the view of Yang, Kim and Sun, (2019) today most of the customers also focus on
products that are cheap and healthy. Influencers can focus on laying emphasis on overall price or
costing of the product they are promoting or doing marketing off. This will directly influence
their followers and will help them to attract their followers or customers towards a product and
service and will also influence their decision making for a particular service or a product. These
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recommended ways are quire beneficial as it will help them to increase their overall customer
base and loyalty of their customers.
As illustrated by, Davainyte and et al., (2019) illustrated that, it is extremely important to
choose correct and appropriate social media platform for effective influencer marketing.
Choosing an appropriate platform increase chances of successful marketing by at least 50 percent
and it will help them to reach a greater number of customers easily. For restaurants it is
extremely important to focus on choosing appropriate platform for influencer marketing as it can
directly impact number of customer wo would be willing to visit their customers.
From the above review of literature, it can be summarized that usage of influencer marketing is
continuously growing in this digital world. As the number of social networking sites users are
increasing a greater number of companies are focusing on influencer marketing. Restaurants in
UAE are focusing on using influencer marketing in order to reach to their target customer base
and enhance their overall sales and profitability of their business. influencer marketing is also
helping restaurants in increasing their brand value and brand reputation among their potential
customer base. It has also been summarized that with the help of there are many different ways
though which restaurants can increase include of influencer marketing on their targeted
customers base so that they can increase their customer visit within their restaurant.
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REREFENCES
Books and Journals
Anand, A., Dutta, S. and Mukherjee, P., 2019. Influencer marketing with fake followers. IIM
Bangalore Research Paper, (580).
Au-Yong-Oliveira, M., and et al., 2019, June. Strain Effect-A Case Study About the Power of
Nano-Influencers. In 2019 14th Iberian Conference on Information Systems and
Technologies (CISTI) (pp. 1-5). IEEE.
Chen, H.S. and Jai, T.M., 2018. Waste less, enjoy more: forming a messaging campaign and
reducing food waste in restaurants. Journal of Quality Assurance in Hospitality &
Tourism. 19(4). pp.495-520.
Childers, C.C., Lemon, L.L. and Hoy, M.G., 2019. # Sponsored# Ad: Agency Perspective on
Influencer Marketing Campaigns. Journal of Current Issues & Research in
Advertising. 40(3). pp.258-274.
da Fonseca, P.D.R. and Gustavo, N., 2020. Trends in Digital Marketing Capable of Attracting
Millennials: Impact of Instagrammers on Consumer Travel Behaviour. In Strategic
Business Models to Support Demand, Supply, and Destination Management in the
Tourism and Hospitality Industry (pp. 21-49). IGI Global.
Davainyte, L., and et al., 2019. The influence of Instagram usage on cosumers ‘choice of
restaurants and meal preparation at home.
Han, H., Moon, H. and Hyun, S.S., 2019. Uncovering the determinants of pro-environmental
consumption for green hotels and green restaurants. International Journal of
Contemporary Hospitality Management.
Kim, H., Lee, S.H. and Goh, P.E., 2017. Factors influencing university students’ perception on
vegetarian restaurants. Culinary Science & Hospitality Research. 23(1). pp.1-9.
Kurien, D., Sharma, J. and Das, S., 2016. Restaurant Image Parameters and its Importance in
Building Children's Perception for Multinational Fast Food Restaurants. IITM Journal
of Management and IT. 7(2). pp.38-47.
Lim, X.J., and et al., 2017. The impact of social media influencers on purchase intention and the
mediation effect of customer attitude. Asian Journal of Business Research. 7(2). pp.19-
36.
Lin, H.C., Bruning, P.F. and Swarna, H., 2018. Using online opinion leaders to promote the
hedonic and utilitarian value of products and services. Business Horizons. 61(3).
pp.431-442.
Mehran, M.M., Kashmiri, T. and Pasha, A.T., 2018. Effects of brand trust, brand identification
and quality of service on brand evangelism: a study of restaurants in Multan. Journal of
Arable Crops and Marketing. 2(1). pp.07-22.
Ofek, E., Libai, B. and Muller, E., 2018. Customer lifetime social value (CLSV).
Parth, M., Kraft, P. and Raif, H., 2017. Influencer Marketing: Eine empirische
Multimethodenanalyse zur Markenwahrnehmung von Sportmodenherstellern auf
Instagram. Munich Business School Working Paper Series.
Qutteina, Y., and et al., 2019. What do adolescents see on social media? A Diary Study of Food
Marketing Images on Social Media. Frontiers in Psychology, 10, p.2637.
van Lohuizen, A.W., Barrera, A.T. and Fischer, A., 2016. A taste of the influence of online
reviews on restaurants.
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Vassakis, K., and et al., 2019. Location-based social network data for tourism destinations.
In Big data and innovation in tourism, travel, and hospitality (pp. 105-114). Springer,
Singapore.
Wellman, M.L., and et al., 2020. Ethics of Authenticity: Social Media Influencers and the
Production of Sponsored Content. Journal of Media Ethics, pp.1-15.
Xiao, M., Wang, R. and Chan-Olmsted, S., 2018. Factors affecting YouTube influencer
marketing credibility: a heuristic-systematic model. Journal of Media Business
Studies, 15(3), pp.188-213.
Yang, X., Kim, S. and Sun, Y., 2019, August. How do influencers mention brands in social
media? sponsorship prediction of Instagram posts. In Proceedings of the 2019
IEEE/ACM International Conference on Advances in Social Networks Analysis and
Mining (pp. 101-104).
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