THE EFFECT OF NANO-INFLUENCERS ON INSTAGRAM TOWARD CONSUMER PURCHASE DECISION ON LOCAL SKINCARE BRANDS

• Main Author: Sherina Aprilla Marmora, Lie
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66897
• Institution: Institut Teknologi Bandung

The rapid development of digital marketing has made traditional marketing change to digital marketing day by day. Social media marketing, specifically influencer marketing on Instagram, is one example of digital marketing that has a positive opportunity for a brand to promote its products or services. However, brands have a big challenge in determining which influencers are right to use in order to maximize their return on investment. It can be seen in the cases of PT. Mustika Ratu Tbk. and PT. Martina Berto Tbk. that they have used celebrity endorsements, but it was less effective in boosting product sales. Currently, many local skincare brands such as MS Glow, Scarlett Whitening, Somethinc, etc. are starting to use nano-influencers to promote their products because of several advantages that nano-influencers have, though there are some drawbacks that marketers must consider. Influencer recommendations can raise consumer awareness, which leads to purchase decisions. Thus, this research will examine the effect of nano-influencers' reviews on consumer purchasing decisions on local skincare brand products. In this research, the survey method through an online questionnaire and interview will be carried out to obtain the primary data. The population in this research are people in Indonesia who have followed and seen reviews from nano-influencers on Instagram about local skincare products, specifically MS Glow, Scarlett Whitening, and Somethinc, and have purchased at least one product from one of the three brands, with a total of 310 respondents. Then the data will be analyzed using PLS-SEM to examine the construct in this research. According to this research, Trustworthiness, Expertise, Likability, Informative Value, and Entertainment Value are influencing Trust. Then from that Trust, it influences Brand Awareness and Purchase Intention. From that Brand Awareness, it significantly influences Purchase Intention and Purchase Decision. In addition, Purchase Intention also found to have influence on Purchase Decision based on this research. To summarize, marketers require a strategy to determine and choose which nano-influencers are appropriate to promote their products, such as having the trust of their followers so that it has an effect on consumer purchase decisions.