Customer Behavior and Social Media Influencer Influence

This dissertation investigates the significant influence of social media influencers on consumer behavior within the luxury beauty industry. It begins by establishing the background, research problem, aim, objectives, and questions that guide the study. The initial chapters cover an in-depth literature review of consumer behavior, social media influencers, and the luxury beauty market, including factors influencing purchase decisions, the role of influencers, and the impact on customer behavior, with a conceptual framework to guide the analysis. The methodology chapter details the research philosophy, design, approach, data collection and analysis methods, ethical considerations, and limitations. This includes a thorough review of relevant literature, ensuring the research is grounded in established academic frameworks and recent developments in the field. The study aims to analyze the extent to which social media influencers affect customer decisions in the luxury beauty sector and provide recommendations for brands to leverage influencers effectively. The research also addresses the ethical implications of influencer marketing and its impact on consumer choices.

Running head: SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
A STUDY TO ANALYZE THE EXTENT TO WHICH THE SOCIAL MEDIA
INFLUENCERS IMPACT THE CUSTOMER BEHAVIOR IN THE PARTICULAR
CONTEXT OF THE LUXURY BEAUTY INDUSTRY
Name of the Student:
Name of the University:
Author’s Note:

1SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
Table of Contents
Chapter 1: INTRODUCTION.........................................................................................................4
1.1 Introduction.......................................................................................................................4
1.2 Background of the Study...................................................................................................4
1.3 Research Problem..................................................................................................................5
1.4 Research Aim.........................................................................................................................5
1.5 Research Objectives...............................................................................................................5
1.6 Research Questions................................................................................................................6
1.7 Rationale of the Study...........................................................................................................6
1.8 Significance of the Study.......................................................................................................7
1.9 Structure of the Study............................................................................................................8
1.10 Summary..............................................................................................................................8
Chapter 2: LITERATURE REVIEW..............................................................................................9
2.1 Introduction............................................................................................................................9
2.2 Consumer Behavior...............................................................................................................9
2.3 Social Media Influencers.....................................................................................................10
2.4 Overview of Luxury Beauty Products.................................................................................10
2.5 Factors influencing the purchase of luxury beauty products...............................................12
2.5.1 Brand and its value.......................................................................................................12
2.5.2 Quality of the products.................................................................................................13

2SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
2.5.3 Marketing strategies used by the Luxury Beauty Brands.............................................14
2.5.4 Price..............................................................................................................................15
2.6 Social media influencers in the luxury beauty industry.......................................................15
2.7 Impact of the social media influencers on customer behavior in the luxury beauty industry
...................................................................................................................................................16
2.8 Conceptual Framework........................................................................................................17
2.9 Literature Gap......................................................................................................................18
2.10 Summary............................................................................................................................18
Chapter 3: RESEARCH METHODOLOGY.................................................................................20
3.1 Introduction..........................................................................................................................20
3.2 Research Philosophy............................................................................................................20
3.2.1 Justification for the Selected Research Philosophy......................................................21
3.3 Research Design..................................................................................................................21
3.3.1 Justification for the Selected Research Design.............................................................22
3.4 Research Approach..............................................................................................................22
3.4.1 Justification for the Selected Research Approach........................................................22
3.5 Data Collection Method.......................................................................................................23
3.5.1 Justification for the Selected Data Collection Method.................................................23
3.6 Data Analysis Method.........................................................................................................23
3.6.1 Justification for the Selected Data Analysis Method....................................................24

3SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
3.7 Ethical Considerations.........................................................................................................24
3.8 Limitations of the Study......................................................................................................24
3.9 Summary..............................................................................................................................25
References......................................................................................................................................26

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Chapter 1: INTRODUCTION
1.1 Introduction
This chapter outlines the research problem, research questions, research aim, research
objectives and other important entities on the basis of which the entire research would be
undertaken by the researcher. Along with these, the researcher had also outlined the structure
which would be used for the conduct of the study.
1.2 Background of the Study
As per Forbes.com (2019), the demand for luxury beauty products in the UK between the
years 2015 to 2018 surged up by more than 71% and it had been seen that more than 34% of the
global luxury beauty brands selected UK as their preferred market for the launch of the luxury
beauty products offered by them. Furthermore, the net worth of the luxury beauty industry of UK
in the year 2016 was around £19.94 billion and this value of the industry under discussion here is
expected to grow even further (Sawer and Betts 2019). In this relation, Liu, Shin and Burns
(2019) have noted that an integral factor that had contributed towards this exponential growth of
the luxury beauty industry of UK can be attributed to the effective usage of the social media and
social media influencers by the different luxury beauty brands in the concerned nation. For
instance, the different luxury beauty brands had been able to almost double its market share
worldwide through the effective usage of social media influencers on the different social media
platforms and also YouTube (Elmhirst 2019). Furthermore, the Boadicea Perfume had been able
to do the same through the influence of the Kuwaiti Blogger Ahood Alenezi whereas brands like
Guerlain, MAC and others are also trying to do the same by organizing different trips as well as
through the usage of different social media influencers (Jin and Ryu 2019). It is in the backdrop

5SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
of this influence that the social media influencers are presently wielding within the luxury beauty
industry of UK that the researcher intends to conduct the study.
1.3 Research Problem
The extensive usage of social influencers by the luxury beauty brands had given rise to
the situation wherein the free will of the customers related to the purchase is getting subverted
and they are merely following the recent trend over social media and other media platforms for
the purchase of the luxury beauty products (Pentina, Guilloux and Micu 2018). More
importantly, this had come at the cost of the disregard of the personal needs or the requirements
of the customers, who are merely falling into the pit of beauty standards which are dominant in
the present times (Audrezet, De Kerviler and Moulard 2018). Furthermore, the usage of the
social influencers have helped the luxury beauty brands to attain a substantial amount of success
yet when considered from the perspective of the customers it becomes highly unethical or for
that matter detrimental (Jiménez-Castillo and Sánchez-Fernández 2019). Therefore, it is
important for the luxury beauty brands to ethically use the social media influencers for the
purpose of influencing the buying behavior of the customers.
1.4 Research Aim
The aim of this dissertation is to analyze the extent to which the social media influencers
impact the customer behavior in the particular context of the luxury beauty industry.
1.5 Research Objectives
1. To understand the factors which influence the customer behavior for the purchase of
luxury beauty products in the luxury beauty industry

6SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
2. To evaluate the manner in which the social media influencers influence the customer
behavior in the luxury beauty industry
3. To evaluate the relationship between the influence wielded by the social media
influencers and the decisions made by the customers in the luxury beauty industry
4. To recommend ways through which the luxury beauty brands can take the help of social
media influencers for effectively influencing the customer behavior in the luxury beauty
industry
1.6 Research Questions
1. What are the factors which influence the customer behavior for the purchase of luxury
beauty products in the luxury beauty industry?
2. How the social media influencers influence the customer behavior in the luxury beauty
industry?
3. What is the relationship between the influence wielded by the social media influencers
and the decisions made by the customers in the luxury beauty industry?
4. What are the ways through which the luxury beauty brands can take the help of social
media influencers for effectively influencing the customer behavior in the luxury beauty
industry?
1.7 Rationale of the Study
The issue that had been selected by the researcher for analysis in this study is the
influence wielded by the social media influencers in influencing the customer behavior within
the luxury beauty industry. This is an important topic from the perspective of the luxury beauty

7SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
brands because of the fact that the success or for that the exponential growth that they have been
able to attain worldwide is hugely reliant on the effectiveness with which they are being able to
use the social media influencers. In this relation, it needs to be said that presently there are
various online bloggers as well as influencers who are wielded a substantial influence on the
purchase decisions made by the customers regarding the purchase of luxury beauty products all
over the world (Hamilton, Kaltcheva and Rohm 2016). For instance, it had been seen that the
majority of the customers blindly believe the recommendations or the luxury beauty reviews
written by the bloggers or the social media influencers for the purchase of the luxury beauty
products (Jin and Muqaddam 2019). Thus, it had become important for the luxury beauty brands
to take the help of the different social media influencers so as to sustain the growth attained by
them recently. The researcher in this study intends to analyze the impact of the social media
influencers in the purchase decisions made by the customers or for that matter the behavior
displayed by the customers for the purchase of luxury beauty products which in turn would help
the luxury beauty brands to utilize them effectively so as to sustain their recent growth or
success.
1.8 Significance of the Study
This research will be a significant one from the perspective of the different luxury beauty
brands since it will elucidate the manner in which they can utilize the social media influencers
not only for sustaining the recent growth attained by them but also to enhance this growth as
well. More importantly, the study in a succinct manner will also highlight the manner in which
the luxury beauty brands can influence the customer behavior or for that matter the purchase
decision of the customers related to the purchase of luxury beauty products for the enhancement

8SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
of the amount of profitability earned by them. In the light of these aspects, it can be said that this
research, will be a really important one for the luxury beauty brands.
1.9 Structure of the Study
Figure 1: Proposed Structure of the Study
Source: (Created by the Author)
1.10 Summary
To sum up, the researcher in the above discussion had highlighted the research aim,
research objectives, research questions, research problem and other important aspects on the
basis of which the entire study would be conducted.
C h a p te r1 : In tro d u c tio n
C h a p te r 2 : L ite ra tu re R e v ie w
C h a p te r 3 : R e se a rc h M e th o d o lo g y
C h a p te r 4 : F in d in g s a n d D is c u s s io n
C h a p te r 5 : C o n c lu s io n a n d R e c o m m e n d a tio n s

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Chapter 2: LITERATURE REVIEW
2.1 Introduction
The research in this chapter had undertaken a critical review of the past literature related
to the topic of the impact of the social media influencers on the buying or the purchase decisions
made by the customers in the particular context of the luxury beauty industry. Thus, the
researcher had taken the help of the theoretical concepts, models, frameworks, arguments and
others presented in the past secondary literature related to the topic under discussion here.
2.2 Consumer Behavior
As stated by Boardman et al. (2019), consumer behavior refers to the branch of study
which is concerned with the analysis of the manner in which the customers, individuals or for
matter groups select, purchase, use and finally dispose the different products or services. Adding
to this, Morra et al. (2018) have observed that the customers are likely to opt only for those kinds
of products or services which fulfill their basic needs like psychological needs, self-actualization
needs, basic needs and others. Furthermore, as per the consumer buying behavior model there are
five steps that the customers before finally undertaking the actual process of the purchase of the
commodities. The five stages are need recognition, information search, a critical evaluation of
the alternatives, the actual purchase and finally the post-purchase evaluation (Santos, Au-Yong-
Oliveira and Branco 2018). In addition to these, it is seen that there are several factors which
influence the entity of customer behavior like price, brand image, quality of the products or
services and others (Jin and Ryu 2019). More importantly, within the particular context of the
luxury beauty industry it is seen that the different luxury beauty brands are taking the help of the
process of social media marketing or more precisely using the diverse social media influencers

10SOCIAL MEDIA INFLUENCERS AND CUSTOMER BEHAVIOUR
for the purpose of influencing the customer behavior and thereby gain the desired level of growth
or profitability.
2.3 Social Media Influencers
Leiss et al. (2018) have found that the social media influencers have become an important
part of the contemporary business world and their emergence in the present times can be traced
to the digitalization that had taken place in the contemporary times. As discussed by Santos, Au-
Yong-Oliveira and Branco (2018), social media influencers can be defined as an individual who
is an active social media user and also boasts of a substantial amount of credibility within the
framework of a particular industry. More importantly, because of the global reach of the different
platforms of social media it is seen that the social media influencers have the opportunity to
persuade a large number of people through the different blogs, posts and other updates shared by
them over the different social media platforms (Jin and Ryu 2019). The different social media
influencers are being extensively used by the diverse business corporations as part of their digital
marketing strategy because of the global reach as well as the authenticity regarding the posts,
updates, blogs and others that they post over the various platforms of social media (Schouten,
Janssen and Verspaget 2019). Thus, the different business corporations through the effective
usage of the diverse social media influencers have been able to effectively influence the buying
behavior or for that matter the purchase decisions made by the customers.
2.4 Overview of Luxury Beauty Products
Ki and Kim (2019) are of the viewpoint that the luxury beauty products are described as
the kind of beauty products which are not an essential requirement of the individuals yet are still
desired by the individuals and the consumption of the same is often considered to denote the
social-position or for that matter the status of the individuals. As discussed by Arora et al.

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(2019), the demand for the different luxury beauty products like skin care creams, perfumes,
cosmetics and others have surged substantially in the present times in the face of the diverse
beauty that has gained popularity. More importantly, Schouten, Janssen and Verspaget (2019)
have noted that an important change that had taken place within the luxury beauty industry is the
fact that unlike the earlier times wherein it was seen that the women were the major consumers
of the luxury beauty products however presently it is seen that the male individuals are also using
the same as well. For instance, presently it had been seen that not only the luxury beauty
products are being produced keeping into perspective the requirements of the male customers but
they are being consumed by the male customers as well (Jin and Ryu 2019). This in turn had not
only substantially increased the target market of the different luxury beauty brands but also the
profit earned by them in the present times. The different luxury beauty brands are actively taking
the help of various innovative marketing or for that matter the promotional strategies like digital
media marketing, the usage of social media influencers and others for the purpose of effectively
influencing the buying or the purchasing decisions made by the customers (Merk and Michel
2019).
Arora et al. (2019) have noted that the different luxury beauty products can be
categorized as per the different layers of the Luxury pyramid. For instance, it had been seen that
there are five layers of the luxury pyramid which denotes the different kinds of luxury products,
namely, mass-market products, premium products, accessible luxury products, aspirational
luxury products and absolute luxury products (Audrezet, De Kerviler and Moulard 2018). The
mass-market luxury products are not highly priced and therefore can be easily purchased by the
majority of the individuals. The premium luxury products are priced a little higher than the mass-
market luxury products whereas the accessible luxury products are priced still higher.