The impacts of social media influencers on purchase intention towards cosmetic products in ho chi minh city

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY DO THI MAI HUONG THE IMPACT OF SOCIAL MEDIA INFLUENCERS ON PURCHASE INTENTION TOWARDS COSMETIC PRODUCTS IN HO CHI MINH CITY GRADUATION THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PhD NGUYEN VAN THUY HO CHI MINH CITY - 2021 MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY DO THI MAI HUONG THE IMPACT OF SOCIAL MEDIA INFLUENCERS ON PURCHASE INTENTION TOWARDS COSMETIC PRODUCTS IN HO CHI MINH CITY GRADUATION THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PhD NGUYEN VAN THUY HO CHI MINH CITY - 2021 TÓM TẮT Influencer Marketing trở thành chiến thuật Digital Marketing gần Nghiên cứu thực để nhằm xác định tác động nhiều đặc điểm người có sức ảnh hưởng mạng xã hội ảnh hưởng đến ý định mua mỹ phẩm người tiêu dùng phạm vi Thành phố Hồ Chí Minh Dữ liệu thu thập thơng qua bảng biểu câu hỏi trực tuyến Google Khảo Sát kích thước mẫu 301 Để phân tích liệu, tác giả sử dụng phần mềm SPSS Dựa theo liệu phân tích yếu tố người có sức ảnh hưởng mạng xã hội gồm: Mức độ uy tín, Sự đáng tin cậy, Mức độ tiếng Đánh giá người có tác động đáng kể đến ý định mua mỹ phẩm người tiêu dùng Tuy nhiên, hai yếu tố khác mà tác giả có đề cập tới Sự thân thiện Sự tương đồng không gây tác động đến ý định mua mỹ phẩm khách hàng Cuối cùng, nghiên cứu nêu ứng dụng, khuyến nghị mặt nghiên cứu chưa làm để hỗ trợ cho nghiên cứu tác giả sau Từ khóa: mạng xã hội, influencers, ý định mua hàng ABSTRACT Social media influencer marketing is a new digital marketing tactic that has arisen recently This research report aims to determine the impact of various social media influencer traits on customer purchase intention towards cosmetic products in Ho Chi Minh City The data was collected via an online questionnaire using Google Forms, and the sample size was 301 For data analysis, the quota sampling strategy was utilized, and structural equation modeling using SPSS was used According to the research result, credibility, trustworthiness, popularity, and influencer reviews all have a impact on the intention to purchase cosmetics Likeability and resemblance, on the other hand, were not significant Lastly, the research and practical implications, as well as possibilities for future study, were discussed Keywords: social media, influencers, purchase intention, cosmetic iv DECLARATION I declare that this thesis was written entirely by me and that it has not previously been presented, or in whole part, in any prior application for a degree Unless otherwise stated by reference or credit, the material given is completely by my own The research was carried out at the Banking University of Ho Chi Minh City, Vietnam, under the supervision of Dr Nguyen Van Thuy Thesis’s Author Do Thi Mai Huong v ACKNOWLEDGEMENT First and foremost, I would like to express my heartfelt gratitude to my supervisor, Dr Nguyen Van Thuy, for providing me with important information as well as good recommendations for my bachelor's thesis, as well as for his patience, enthusiasm, and inspiration Furthermore, I am grateful to not just the professors and lecturers from Banking University of Ho Chi Minh City who supplied me with vital information and skills throughout my time there Last but not least, I also want to thank the examiners for devoting their significant time to reviewing my thesis vi TABLE OF CONTENTS CHAPTER INTRODUCTION 13 1.1 Background of the study 13 1.2 Research Objectives and Reasearch Questions 14 1.3 Research Subjects 15 1.4 Research Methodology 15 1.5 The Scope of Research 15 1.6 Structure 16 CHAPTER 2.1 LITERATURE REVIEW 18 Concept and Definitions 18 2.1.1 Social Media 18 2.1.2 Social Media Marketing 22 2.1.3 Purchase Intention 24 2.1.4 The theory of planned behavior (TPB) 26 2.2 Previous Empirical Studies 27 2.2.1 The research of Chetoui Youssef and Hind Lebdaoui (2020) 27 2.2.2 (2020) The research of Hanif Adinugroho Widyanto and Cahya Rahmania Agusti 28 2.2.3 The research of Saima & M Altaf Khan (2020) 30 2.2.4 The research of Widyanto and Agusti (2021) 31 2.3 Hypothesis and Conceptual Model 31 2.3.1 Hypothesis 31 2.3.2 Conceptual Model 36 CHAPTER THE RESEARCH METHODOLOGY 37 3.1 Research process 37 3.2 Research methods 38 3.2.1 Qualitative methods 38 3.2.2 Quantitative methods 39 3.3 Sample description 41 3.4 Survey design 41 3.4.1 Scale used in survey 41 3.4.2 The questionaire design 42 CHAPTER RESEARCH RESULT 46 4.1 Sample description 46 4.2 Testing the reliability of cronbach’s alpha 50 4.2.1 Credibility 50 4.2.2 Trustworthiness 50 4.2.3 Likeability 51 4.2.4 Similarity 52 4.3 Attitude 53 4.3.1 Popularity 54 4.3.2 Purchase Intention 54 4.4 Exploratory Factor Analysis – EFA 55 4.4.1 Independent Variables 55 4.4.2 Dependent Variables 59 4.5 Pearson correlation analysis 60 4.5.1 Representative variables 60 4.5.2 Pearson correlation analysis 61 4.6 Multivariate Regression Analysis 62 4.7 ANOVA test on different groups of samples 63 4.7.1 Gender 63 4.7.2 Age 64 4.8 Discussion 65 CHAPTER CONCLUSION 67 5.1 Conclusion 67 5.2 Implications 70 5.2.1 Academic Implications 70 5.2.2 Practical Implications 70 5.3 Limitations and suggestions for future research 72 BIBLIOGRAPHY 73 APPENDIX 78 LIST OF FIGURES Figure - Theory of planned behaviour 26 Figure - The research model of Chetoui Youssef and Hind Lebdaoui (2020) .28 Figure - The research of Hanif Adinugroho Widyanto and Cahya Rahmania Agusti (2020) 29 Figure - Proposed Research Model 36 Figure - The research process 38 LIST OF TABLES Table 3-1 - Credibility scale 43 Table 3-2 Trustworthy scale 43 Table 3-3 Likeability scale .43 Table 3-4 Similarity scale 44 Table 3-5 Influencer’s review scale 44 Table 3-6 Popularity scale .45 Table 3-7 Purchase intention scale 45 Table 4-1 - Gender Distribution 46 Table 4-2 - Age Range Distribution 46 Table 4-3 - Social Media Usage 47 Table 4-4 - Frequency of Using Social Media 47 Table 4-5 - The number of influencers that each person follows on social media 48 Table 4-6 - Frequency of participants using social media to look for cosmetics information 49 Table 4-7 - Frequencies of social media that consumers use to look up for cosmetic products .49 Table 4-8 - Reliability Statistics of Credibility 50 Table 4-9 - Reliability Statistics of Trustworthiness 51 Table 4-10 - Reliability Statistics of Likeability .51 Table 4-11 - Reliability Statistics of Similarity 52 10 utilize social media to gather information about cosmetic products Because it's a terrific setting for discovering new items and businesses This indicates that if marketers want to promote a cosmetic product, they should strongly consider supporting that product or brand on social media However, it is critical to understand what to invest in and the best manner to communicate on social media According to the study, social media influencers are becoming an important participant in the current marketing campaign of the beauty sector since consumers who have seen the product reviews made by them are more likely to purchase cosmetic items However, the identity of social media cannot have the same impact When customers see a celebrity's product review, they have a much greater degree of purchase intention for cosmetics As a result, despite the fact that the expense of cooperating with a celebrity is often higher, social media influencer appears to have a grow and thrive in influencer marketing 5.2 Implications 5.2.1 Academic Implications Influencer marketing has been the subject of several studies There has previously been study done on the impacts of social media influencers in disseminating a message or on brand attitudes Despite this, there hasn't been much research on the features of social media influencers that influence purchase intent This study uncovers fresh information that is important to the issue and might serve as a springboard for additional research 5.2.2 Practical Implications To enhance sales of their products and services, cosmetic manufacturers and marketers often depend too much on recommendations from influencers They may overestimate the information and availability that today's consumers have, making them less readily swayed in their purchase intention 70 As a result, my thesis may give some insight on the real level of influence exerted by the influencers with whom marketing managers interact - how influential are the influencers? Meanwhile, the findings of this thesis may compel marketing managers and brand marketing departments to focus their efforts on identifying and working with influencers who exhibit the characteristics indicated here These characteristics, when combined with other circumstances, may have a beneficial impact on customers' purchasing intent As a result, the products and services of such businesses that collaborate with influencers will have higher sales and a longer shelf life Thesis might also be beneficial to the influencers themselves Adapting their strategy and exposure to better reflect their reputation, trustworthiness, legitimacy, and honesty might be beneficial Staying faithful to these ideals and traits will be helpful in the long run, especially if their popularity rises - Marketers should consider getting a beauty influencer who is physically appealing and an expert in the beauty area to serve as a spokes person, increasing the purchase intention of cosmetic items - Marketers could also evaluate Influencers that have a high level of interaction with their social media following Followers who connect with Influencers often are said to have the desire to be perceived as Influencers, which leads to the purchase of promoted items In other words, marketers may not have to select a well-known influencer It is considered that the marketers will be more effective if they selects influencers who has a high level of interaction with their followers - Marketers should select Influencers that are creative and distinctive in their content creation, making it easier for their audience to grasp the material that provides the necessary value to the consumer Furthermore, the intended value that is supplied to the client may boost the brand image, which leads to the brand's buy intention 71 5.3 Limitations and suggestions for future research Despite the study's intriguing theoretical and practical implications, it has several drawbacks Because of the short time frame for completing this study, which was just ten weeks, the author was limited in terms of the number of survey participants and the breadth of the research A lengthier research timeframe may have allowed for the conduct of interviews with influencers in order to include their perspectives in a comparative analysis Furthermore, the generalizability of the findings for this study is restricted due to the qualitative character of the research, in which individuals in the study sample are often chosen based on specific criteria Unlike in quantitative research, where the sample of the study is likely to be numerically representative of the wider population of interest, the conclusions from such studies can be extrapolated to that group Future study using mixed approaches might be advantageous in overcoming this constraint as well as enriching and broadening the acquired data and, as a result, the empirical findings Another restriction is the possibility of bias in the survey participants' responses and interpretations This is a disadvantage of taking an online survey since some respondents may be impacted and may not argue the topics in the same manner they would if they were questioned in person, for example A longitudinal study lasting a number of years might be used for future research Such research may be influenced by the ongoing advancement of technology, social networking sites, and communication Another intriguing component for future study may be to look at the varying levels of social media engagement of customers, since different levels may effect buy intent differently 72 BIBLIOGRAPHY Abdullah, T., Deraman, S N., & Zainuddin, S A (2020) Impact of social media influencer on instagram user purchase intention towards the fashion product European Journal of Molecular & Clinical Medicine, 2589-2598 Abidin, C (2020) Mapping Internet Celebrity on TikTok: Exploring Attention Economies and Visibility Labours Ajzen, I (1991) “The theory of planned behavior”, Organizational Behavior and Human Decision Academic Press, 197-211 DOI:10.1016/0749- 5978(91)90020-T Ajzen, I (2011) The theory of planned behaviour: Reactions and reflections Psycology & Health, 1113-1127 DOI:10.1080/08870446.2011.613995 Amancio, M (2017) “Put it in your Story”: Digital Storytelling in Instagram and Snapchat Stories DOI: urn:nbn:se:uu:diva-324812 Brown, D., & Hayes, N (2008) Influencer Marketing - Who really influences your customers? 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Never Rarely Sometimes Most of the time Always 78 What social media you use e to seek recommendations on cosmetic products? Facebook Instagram Youtube Tiktok Other How many social media influencers you follow Equal to or less than 10 11 - 20 21 - 30 More than 30 Have you ever discovered a new cosmetic product/brand through social media? Yes No SECTION 3: SOCIAL MEDIA INFLUENCERS AND PURCHASE INTENTION I Credibility Strongly agree Agree My favourite SMI is an expert in cosmetics field My favourite SMI have experiences about cosmetic 79 Neutral Disagree Strongly disagree My favourite SMI is knowledgeable about cosmetic My favourite SMI is participate in many activities in cosmetic field II Trustworthiness Strongly agree Agree My favourite SMI is trustworthy My favorite SMI always test products before recommending My favorite SMI always gives objective reviews My trust level increased after using the cosmetics recommended by favorite SMI III Likeability 80 Neutral Disagree Strongly disagree Strongly agree Agree Neutral Disagree Agree Neutral Disagree Strongly disagree My favourite SMI is friendly My favorite SMI always answers people's questions about cosmetics enthusiaticly My favourite SMI is approachable My favorite SMI always takes feedback with a positive attitude IV Similarity Strongly agree My favourite SMI have the same thoughts like me My favourite SMI have the same age, hobby, job,… like me My favorite SMI and I have the same lifestyle 81 Strongly disagree It is easy to communicate with my favorite SMI My favourite SMI have interaction with me V Influencer’s review Strongly agree Agree The review and information shared by my favourite social media is convincing The review and information shared by my favourite SMI is good Reviews and information shared by my favorite SMI are widely shared on social media Reviews and information shared by my favorite SMI receive positive 82 Neutral Disagree Strongly disagree feedback from many consumers VI Popularity Strongl Agre Neutra Disagre y agree e l e The popularity of SMIs are depending on how many followers/likes/subscriber s they have The credibility of SMIs can be evaluated by the content they shared on social media When a large number of people follow, subscribe, or like a SMI's content, I feel more secure in it When a large number of people like or comment on a piece of social media content, it changes my view on the information 83 Strongl y disagree VII Purchase Intention Strongly Agree agree I would like to know and understand more about a cosmetic product endorsed by one of my favorite SMIs I will buy cosmetic products that my SMI loves I intend to buy a cosmetic product recommended by my favorite SMI I'll purchase cosmetic a product promoted by one of my favorite SMIs 84 Neutral Disagree Strongly disagree ...MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY DO THI MAI HUONG THE IMPACT OF SOCIAL MEDIA INFLUENCERS ON PURCHASE INTENTION TOWARDS COSMETIC PRODUCTS. .. determine the impact of various social media influencer traits on customer purchase intention towards cosmetic products in Ho Chi Minh City The data was collected via an online questionnaire using... investigation method to carry out the topic's official study step Step 1: Determining the factors affecting the purchase intention of cosmetics of customers in Ho Chi Minh City Step 2: Building