The Effect of Social Media on Perceived Information Credibility and Decision Making

Abstract

Abstract Studies have found that information from celebrities, social media influencers, and people whom they know in real life affects millennial consumers’ purchasing decisions. This study investigates how celebrities, influencers, and people whom consumers know personally impacts the ways in which millennials utilize social media information to gain information about consumer products. The study also addresses factors that contribute to trusting that information. Using data from millennial college students, the authors found that Instagram was most utilized for apparel information, while YouTube was most relevant for cosmetic and hair products. However, information from people whom they knew personally was still deemed more trustworthy than that from other sources. Although research suggests that celebrities and social media influencers’ have a positive impact on raising product awareness, marketers should be cognizant that consumers still trust endorsements from people whom they know personally, above all else, regarding their purchasing decisions. Relying on celebrities and social media influencers to promote products does not substitute for or replace targeted marketing efforts to build consumers’ trust. Implications for research and practice are discussed.