The Effect of Nano-Influencers on Instagram Toward Consumer Purchase Decision on Local Skincare Brand

Abstract

Digital marketing that has been rapidly used these days such as social media marketing, specifically influencer marketing on Instagram, has a positive opportunity for promoting a brand. However, brands have a big challenge in determining which influencers are right to use to maximize their return on investment. Based on the cases of PT. Mustika Ratu Tbk. and PT. Martina Berto Tbk., they have used celebrity endorsements, but it was less effective in boosting product sales. Currently, many local skincare brands 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 and purchase decisions. Thus, this research will examine the effect of nano-influencers' reviews towards consumer purchasing decisions. The survey and interview method will be carried out to collect the data. The population are people in Indonesia who follow and have seen reviews from nano-influencers on Instagram about local skincare products, specifically MS Glow, Scarlett Whitening, and Somethinc, and have purchased the product from one of the three brands, with a total of 310 respondents. 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, Trust 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. To summarize, marketers require a strategy to determine which nano-influencers are appropriate to promote their products, such as having the trust of their followers so that it has an effect on brand awareness, which leads to consumer purchase decisions.