Power of social media influencers on brand awareness, value, and consumer purchases Open Access

Nowadays, the use of the internet to gain information for shopping is increasing rapidly (Wuisan and Handra, 2023). The internet is important for us because it has introduced new ways to stay connected but has also changed the purchasing experience (Abu-AlSondos et al., 2023). Social media is widely used on the internet, where people share their personal information, likes and dislikes (Smith et al., 2023). Hence, this platform serves as a connecting medium for online customers, where their decisions are heavily influenced by the feedback and perspectives of others. This platform gathers the knowledge of its users to improve the online experience, making it easier for consumers to feel sure about their choices as they browse the internet (Gupta et al., 2022). In recent years, consumer buying behavior has experienced a significant transformation, driven primarily by the rise and impact of social media influencers (SMIs) (Lee and Hong, 2016). Social media has developed into a significant means of interaction. So, a new type of celebrity known as “social media influencers” is rapidly rising to the top of entertainment as a result of this trend (Ren et al., 2023). However, these influencers need to go beyond superficial self-presentation to succeed in influencer marketing (Colliander and Marder, 2018; Tafesse and Wien, 2018). On the other hand, marketers trying to reach more consumers and boost their sales have drawn attention to these SMIs. The reason for choosing these influences is because of their huge fan bases and active participation. Nowadays, most brands promote their products using social media marketing and SMIs, which are the most important and popular source of promotion for any brand (Chung and Kim, 2021).

Literature heavily claims that influencers have substantial social media followings and hold significant influence over their followers’ purchasing decisions (Trivedi and Sama, 2020). Thus, social media platforms ushered in a new era of influencers, who now play a pivotal role in shaping consumer choices (Delbaere et al., 2021). Brands increasingly recognize the value of collaborating with these influencers to expand their customer base and connect with their target audience (Ye et al., 2021). The intricate relationship between SMIs and consumer purchase intentions has become a focal point of academic research (Kim and Park, 2023). Empirical studies indicate that influencers have power to influence consumer at multiple stages, from initial awareness to the final purchase (Pop et al., 2022). SMIs have emerged as influential opinion leaders in the digital space (Vrontis et al., 2021). Xu and Marandola (2023) found that the use of influencer marketing has become an increasingly popular strategy to boost brand awareness and expand a brand’s reach through collaborations. Similarly, Andreani et al. (2021) argued that influencers can influence consumers’ purchase intentions by endorsing products and services on social media platforms. However, there is limited research on how SMIs influence purchase intentions in the context of brand awareness, perceived value and customer experience. While previous literature recognizes the impact of SMIs on consumer behavior, there is a gap in understanding the specific marketing mechanisms through which SMIs shape purchase intentions (AlFarraj et al., 2021). A deeper exploration of the mediating roles of brand awareness and perceived value addresses this gap, while the moderating effect of customer experience further illuminates its comprehensive role in consumer decision-making. Thus, this research aims to explore: How do SMI endorsements influence consumer purchase intentions, and what are the mediating roles of brand awareness and perceived value, as well as the moderating role of customer experience in this relationship?

The research introduces novelty by integrating brand awareness, perceived value and customer experience as mediators and moderators. Furthermore, it contributes to the field with practical insights that enhance the understanding of influencers’ power in marketing, enabling the creation of more effective campaigns to reach target audiences. The study also offers theoretical novelty through the application of stimulus–organism–response (SOR) theory. This theory explains how external stimuli, such as SMI endorsements, can influence consumer behavior, specifically in terms of purchase intention (the response). It provides a thorough psychological analysis of how SMI endorsements affect brand awareness and perceived value, ultimately influencing purchase behavior. Furthermore, by expanding the theory to include moderating variables, the research helps clarify how various factors impact the SOR process. As a result, the study’s findings suggest ways to enhance marketing strategies by highlighting the effect of SMIs on consumer purchase intentions. The research can also assist organizations in selecting the most effective influencer categories to collaborate with and in developing approaches for building brand awareness and perceived value. It holds important implications for businesses, consumers and the academic community. Overall, it addresses a timely and relevant issue in marketing and provides insights that can help businesses make more informed decisions about their marketing strategies.

The structure of the research study is comprised of an introduction that addresses the research question. The second part contains a detailed literature review, following the methodology outlining the data collection. The result part contains the analysis of mediation and moderation, following the discussion that interprets the findings. Finally, a conclusion summarizes the key insights, offers future implications and limitation of the study. The manuscript aims to cover the research’s objective by investigating the impact of social media influence on purchase intentions, with brand awareness and perceived value as a mediator and customer experience as a moderator.

SMI endorsement describes the practice of engaging “social media influencers” to promote the company’s goods and services. SMIs, as a type of micro-celebrities who present themselves on social media, get high attention from the public through the creation of an online image and, by using that image, engage a large number of followers in any activity (Khamis et al., 2017). Influencers on social media have a large following on sites like Instagram, YouTube, Tik Tok and other social media platforms (Chung and Kim, 2021). Due to their large following, they can support or promote any positive or negative activity on social media, which can have a great impact on followers (Dhanesh and Duthler, 2019). A well-known person who supports your brand can boost your company’s image, and this is especially true for low-involvement products (Fazli-Salehi et al., 2022).

Purchase intention is the customer’s conscious plan for purchasing a brand and making an effort to do so (Spears and Singh, 2004). The purchase intention is specifically related to customer buying behavior, in which customers show a positive attitude toward a brand due to specific attributes of the product and endorsers’ positive reviews toward products (Song and Kim, 2020; Lazaroiu et al., 2020). Over the years, social media sites have gotten more attention from companies for capitalizing on the purchase intentions of consumers (Weismueller et al., 2020). Hence, the following hypothesis has been developed:

Most companies are using electronic communication as a tool of marketing to promote their brands and products (Andreani et al., 2021; Andronie et al., 2021). These tools are used to increase corporate value and help strengthen company brand awareness. Nowadays, with the development of communication media, the emergence of human idol icons has been referred to as celebrities, and consumers prefer their lifestyle and likeness (Pop et al., 2022). Companies are using endorsers as influencers to introduce their brands and create a brand image in the customer’s mind (Hermanda et al., 2019).

Literature highlights the positive impacts of SMI endorsements on the promotion of brand sales of the products (Nurhandayani et al., 2019). When companies use SMIs as their promotional activity, it affects consumers` perceptions of a brand, and sometimes consumers are not fully aware of the brand, but they still use it just because of their influencers (Hermanda et al., 2019). Therefore, referring to the above explanation, there is a hypothesis that:

SMIs are attractive to their followers due to the value they create in what they wear, perform and consume. However, the value is not represented in terms of price or quality of the goods, whereas followers follow it to look good, as their SMI do. The endorsement of a SMI can increase a consumer’s desire to make a purchase, and the influencer presents the content in a way that makes them perceive a positive value in the purchase. Since perceived value acts as a bridge between brand equity and brand loyalty, it has been the subject of considerable research (Setyaningrum, 2021). According to past research, using famous influencers to attract consumers can enhance customer involvement as well as help customers perceive positive value in that brand and product (Ananda et al., 2016). Based on the literature, the following hypothesis has been developed:

Brand awareness is a crucial factor that influences consumers’ purchase intentions. When the customer decides to buy something, the first thing that comes to mind is the brand name and image (Rungsrisawat and Sirinapatpokin, 2019). Purchase intention is the consumer’s intention to purchase a good or service. Hence, a positive brand image amplifies brand awareness and makes them more likely to buy. When a brand’s image holds significant meaning in the consumer’s memory, it cultivates a positive intention toward that specific brand. Positive brand awareness tends to inspire customers and make their purchases (Mao et al., 2020). Similarly, Liu et al. (2019) claimed that customers make more purchases of those products whom they are aware of. Brand recognition and awareness, contribute toward brand loyalty and create a positive intention of consumers to purchase the brand (Chan et al., 2018). Hence, the following hypothesis has been developed:

The value was an overall assessment of a product of personal judgment, showing tribute to the evaluation criteria (Zhu et al., 2021). Several studies have found that a consumer’s perceived value is a strong indicator of whether they will decide to buy something. In the context of Web-based purchases, consumers’ perceptions of value are strongly associated with their intention to buy (Hsu et al., 2017). In marketing literature, perceived value is one of the essential concepts not only because of its credibility but also because of its positive outcomes, such as consumers’ satisfaction and loyalty (Itani et al., 2019). Customers give value to brands that are more familiar to them, and they have some background knowledge about them. Their value, which they are giving to the brands, enhances their intention to purchase that product (Jaya and Prianthara, 2020). When these expectations meet the brand’s quality, then they show their positive intention for purchasing that product. Therefore, the following hypothesis has been developed:

Brand awareness allows the customer to recognize their relevant needs and understand effective procedures (Samudro et al., 2020). If the customers are fully aware of the brand, it will help them make comparisons among different brands. When consumers follow their celebrity on social media and gain awareness about the brand, they feel satisfied with that brand and try to engage themselves in the purchasing process of the brand (Kanwar and Huang, 2022). In addition, brand endorsement helps companies promote their products on a cheap level. SMIs have access to different segments of followers, and they help to promote companies’ products on a cheap level as compared to celebrity endorsements (Algharabat et al., 2020). Due to these benefits, many companies are using SMIs as part of their promotional strategy because they know that they can gain more and more loyal consumers` because of SMI’s endorsement (Pop et al., 2022). Based on previous literature, the study draws a hypothesis that shows a link between SMI endorsement, brand awareness and purchase intention:

Previous research has shown the importance of customers’ value, which they perceive regarding any brand due to the different strategies of the company (Hanaysha, 2018). Now, due to high competition, companies are giving preference to customers’ value and their views regarding their brands (Keshavarz and Jamshidi, 2018). Many brands are competing and gaining an edge just because of customers’ perceived value (Algharabat et al., 2020). However, when customers evaluate the reviews of SMIs, companies cannot be fully sure whether the perception that customers are gaining due to influencers is positive or negative (Lou and Kim, 2019).

Sometimes, customers perceive negative value about a specific brand due to negative reviews from SMIs (Aljafari, 2019). Therefore, it is necessary to select those influencers who can give honest reviews about brands on their social media platforms so customers can gain a positive perception of the brand (Hsieh, 2023). The positive value addition helps the brands prevent negative intentions from consumers. These previous literature arguments show that perceived value can create a link between SMI endorsement and purchase intention, as follows:

The customer experience is one of the main factors that have the greatest influence on customers’ decision-making, particularly when they buy high-risk products. Experience has a considerable and beneficial effect on future brand perception and loyalty. Hence, it is necessary to increase brand recognition and loyalty. Alzoubi et al. (2022) also recommended that companies focus on customer satisfaction to develop a positive image.

Positive customer experiences have a positive perceived value. In the health-care industry, studies have shown that experience with a hospital or healthcare provider can influence patients’ perceived value of the care they receive (Miao et al., 2020). Customers’ familiarity with a brand and their experience with similar items affect their propensity to spend more on high-end apparel (Gonzalez-Mansilla et al., 2023). Similarly, Hoyer et al. (2020) also claim that quality and value perceptions were proven to have a significant effect on consumer recall, past purchases and future intentions to buy in the luxury industry. Perceived value and customer experience were revealed to be major factors influencing purchasers’ decisions. Based on the discussion, the following hypotheses are proposed:

Weismueller et al. (2020) claimed that SMIs have a positive relationship with purchase intention. Other studies found that celebrity endorsement supports the creation of brand awareness (Rahman, 2018) and perceived value (Norheim and Sønvisen, 2021). Hutter et al. (2013) asserted that user interaction on social media has a positive impact on brand awareness, which can enhance the likelihood of purchasing. Similarly, a positive customer experience can elevate the perceived value, making the product seem like a better investment. Based on these findings, the following conceptual framework has been developed (Figure 1).

A convenience sampling technique was adopted to collect the data. The sample size for the study initially comprised 290 respondents collected from the UAE, following the guidelines of ten responses per item established by Hair et al. (2014). However, to account for potential shortages in the required sample size and to accommodate the possibility of incomplete or missing questionnaires, an additional 10% was added to the original 290, resulting in a total distribution of 319 questionnaires among the respondents. We have contacted respondents in public places to fill out the online questionnaire on tablets, available in English language. The respondents were selected based on prior experience with social media, understand English language and being followers of any SMI.

SMI endorsements were measured by adapting a four-item scale from Yaacob et al. (2021) with an alpha value of 0.834. The sample item is “I purchase maximum products under the influence of influencers.” Brand awareness was measured by adapting a three-item scale from Molinillo et al. (2017) with an alpha of 0.894. The sample item is “I often purchase the product that I am aware of.” Perceived value items are adapted from Bushara et al. (2023), with an alpha of 0.879. The sample items are “My influencer-promoted product has a consistent level of quality” and “My influencer-promoted product has excellent value for money.” The moderating variable, the customer experience, was measured by adapting a 10-item scale from Jami Pour et al. (2021) with an alpha of 0.900. The sample item is “I am happy with products that are promoted by influencers.” Purchase intentions were measured by adapting a 5-item scale from Alwan and Alshurideh (2022) with an alpha of 0.85. These sample items are “I intend to become an online shopper” and “I intend to purchase more products when I see them being promoted by an influencer.” All scales were analyzed using a five-point Likert scale (1 = strongly disagree; 5 = strongly agree).

The demographic profile of respondent shows that 58.6% are female and 41.4% are male. About 27.6% fall in age bracket of 18–23. And 29.3% indicate that these are unemployed. The detail of demographic profile is in Table 1.

SPSS and Smart PLS software were used to analyze the data set. The mediation-moderation model was assessed through the process model.

The measurement models were evaluated by examining factor loadings. The item loadings show the strength of the relationship between each variable and its corresponding factor. Table 2 demonstrates that all the items have loadings above 0.6. A factor loading of 0.7 or higher indicates a strong relationship between the variable and the factor (Munir and Watts, 2024). The CR shows the internal consistency of each factor. A CR of 0.7 or higher is considered to be acceptable (Munir et al., 2024). Average variance extracted (AVE) is calculated by averaging the squared correlation between each item on a scale and the construct it is intended to measure. An AVE of 0.5 or higher is considered to be acceptable.

We conducted pilot testing on four respondents that were not part of main study. The items were improved based on pilot testing respondent’s feedback and two experts’ opinion. The reliability table presents the Cronbach’s alpha values for each construct, indicating the consistency of the items in measuring the same concept. The values of Cronbach’s alpha are within acceptable range. The Fornell–Larcker criterion is used to evaluate discriminant validity in a mediated moderation model, which measures the distinctiveness of constructs from one another. The diagonal elements in the table represent the square root of the AVE for each latent variable, while the off-diagonal elements show the correlations between latent variables. As shown in Table 3, the square root of the AVE for each latent variable exceeds the correlations between that variable and any other latent variables, confirming adequate discriminant validity.

To test the multicollinearity, the variance inflation factor test has been conducted. The results show that all values range between 2.567 and 3.429. All are below the threshold of 10. Hence, there is no evidence of common method bias in the study.

Table 4 shows that that the relationship between SMIs endorsement and purchase intentions is statistically positively significant (β = 0.370; p < 0.000), SMIs endorsement positively affected the brand awareness (β = 0.243; p < 0.000) and also has positively significant effect on perceived value (β = 0.308; p < 0.000). Similarly, brand awareness positively and significantly affected the purchase intentions (β = 0.232; p < 0.000) and perceived value positively and significantly affected the purchase intentions (β = 0.314; p < 0.005). These results supported the proposed H1, H2, H3, H4 and H5.

Table 5 shows the indirect effect of one variable on another through a third variable. The mediation effects of brand awareness and perceived value are calculated by multiplying the path coefficients between the independent variable, the mediator and the dependent variable. There is a significant indirect effect of SMI’s endorsement on purchase intentions through brand awareness. The (β = 0.124; p < 0.017; t-values = 2.363), the 95% confidence interval is (0.064, 0.171) and the hypothesis is accepted. There is also a significant indirect effect of SMI endorsements on purchase intentions through perceived value. The (β = 0.254; p < 0.005; t-values = 2.789), standard error is 0.091, the 95% confidence interval is (0.075, 0.419) and the hypothesis is accepted.

Table 6 shows the significance of the moderation effect. Customer experience has a moderating effect on the relationship between brand awareness and purchase intentions and also moderates the relationship between perceived value and purchase intentions. These proposed moderating effects were calculated using the interaction method. Table 6 shows the (β = 0.191; p < 0.007; t-values = 2.341), standard error is 0.091, the 95% confidence interval is (0.125, 0.244) and the hypothesis is accepted. There is a significant moderating effect of the customer’s experience on the relationship between brand awareness and purchase intentions. The (β = 0.147; p < 0.011; t-values = 2.038), the standard error is 0.056, the 95% confidence interval is (0.078, 0.293) and the hypothesis is accepted. It highlights that there is a significant moderating effect of the customer’s experience on the relationship between perceived value and brand awareness (Figure 2).

The research has investigated the complex dynamics of the relationship between SMIs’ endorsements and consumers’ purchase intentions, with a particular focus on the mediating roles of brand awareness and perceived value, along with the moderating influence of customer experience. Findings provide valuable insights into the complex world of influencer marketing and offer valuable insights for businesses and marketers. At its core, the research has confirmed the significant impact of SMIs as influential opinion leaders. The study found that leveraging influencers for social media marketing has been shown to effectively boost consumer awareness and purchase intentions. All nine hypotheses align with previous researches. It confirms that SMIs have a strong and positive impact on purchase intentions, consistent with Patmawati and Miswanto's (2022) findings. Dehghani et al. (2016) also claimed that when brands use image-based advertising (like influencer) on social media, the volume of positive content correlates with greater brand awareness. Consumers are more likely to become aware of a brand when their favorite influencers endorse it, which often leads to increased purchase intentions. These findings are also aligning with Lou and Yuan's (2019) research, which highlights influencer marketing as an effective tool for enhancing brand visibility and consumer interest. Furthermore, Lukito and Yustini (2019) and Peng et al. (2019) also found a significant positive relationship between influencer endorsements and perceived value. Influencers’ recommendations enhance the perceived value of a product, as their credibility and trust with followers encourage trust in their product suggestions, ultimately boosting the perceived worth of the endorsed items.

Current findings are aligned with Lukito and Yustini (2019) study, and perceived value is a crucial driver of purchase intentions. The mediating role of brand awareness align with Patmawati and Miswanto (2022) findings that influencer endorsements affect purchase intentions indirectly through brand awareness. The analysis shows that influencer endorsements not only directly influence brand awareness but also indirectly boost purchase intentions by enhancing brand awareness. Similarly, the role of second mediator shows that influencer endorsements not only improve perceived value but also elevate purchase intentions by enhancing consumers’ perception of the product’s worth. These findings offer valuable insights for marketers and businesses looking to incorporate SMIs into their marketing strategies (Taqatqa, 2023; Colella et al., 2021). In addition, customer experience plays a positive role in influencing purchase intentions (Gentile et al., 2007).

The study also examines the moderating effect of customer experience. While brand awareness and perceived value are crucial in influencing purchase intentions, the impact of these factors can be either amplified or diminished by the customer’s experience with the brand. The findings suggest that the effect of perceived value on purchase intentions varies based on the customer’s experience level. A positive experience can strengthen the influence of brand awareness and perceived value on purchase intentions, whereas a negative experience can reduce their impact. This highlights the comprehensive nature of consumer decision-making, where emotional and experiential factors play a significant role in shaping intentions and outcomes.

This research contributes to an understanding of the multifaceted dynamics within the influencer power. It confirms the significant impact of SMIs’ endorsements on purchase intentions and shows the mediating roles of brand awareness and perceived value in this process. Moreover, it highlights the critical role of customer experience as a moderator, emphasizing that successful marketing strategies must consider not only what influencers communicate but also how consumers experience and interact with brands. The study builds theoretical foundation on SOR theory that explains how external stimuli (SMI endorsement) can influence customer behavior in the form of purchase intention (response). It offers a comprehensive psychological analysis of how SMI endorsement can affect brand awareness and perceived value, ultimately impacting customer purchase behavior.

The findings recommend that leveraging the SMIs in marketing strategies can significantly enhance brand awareness and perceived value, which in turn has a substantial impact on consumer purchase intentions. Managers can benefit from this study by partnering with SMIs whose audience align with target demographic, using influencers to promote the brand. This approach helps create brand awareness, visibility and credibility, which foster positive perceptions and encourage purchasing behavior.

Manager need to scrutinize influencers based on their authenticity, credibility and ability to share detail product reviews in an influential manner that addresses both the rational and emotional drivers of consumers. Furthermore, manager should tailor influencer partnerships by providing relatable and clear content that addresses common product concerns and highlights advantages, guiding potential customers through the decision-making process.

Managers must also consider consumer experience levels. For example, more experienced consumers tend to seek credible endorsements and detailed product information before making a purchase decision. Hence, managers should select influencers who offer in-depth, transparent content to cater to these consumers. Businesses can fine-tune their marketing strategies by understanding the nuances between experienced and inexperienced consumers and chose influencers whose values, style and audience types resonate with the brand. This allows more targeted marketing campaigns that foster trust and drive sales.

Table 7 summarize the conclusion, theoretical and managerial implications

One limitation of the research study is that it did not select a consistent SMI and brand for surveys among the public. Future research could address this limitation by examining fixed SMIs and their endorsements of specific brand products. This approach would allow for a more precise comparison of how varying impressions of different fixed SMIs affect brand equity, enabling a more nuanced analysis of the impact of influencer marketing across cultures and contexts. Another limitation is based on study design, a comparative study between micro-influencers versus mega-influencers on purchase intentions could give deeper analysis on how different social media platforms like Tik Tok, Instagram, Facebook and YouTube moderate the impact of influencer endorsements. Moreover, checking the impact of negative publicity, how do negative actions or publicity surrounding an influencer impact brand perceptions and purchase intentions is important for understanding purchase decision.

Future studies need to incorporate the different types of influencers (micro or macro) and examine their influence on product promotion. Moreover, different customer experiences points to potential segmentation tactics for experience and less experienced customer types. It is necessary to develop understanding on how different consumers with different levels of product familiarity respond to endorsements, which may support getting a larger target audience. More in-depth analysis may require examining additional factors such as authenticity, trust and impact on a particular niche market.

Conflict of interest: The authors have no relevant financial or nonfinancial interests to disclose.

Data availability: Data is confidential and cannot be shared at the moment.