A Critical Review of Influencer Marketing’s Influence on Brand Perception and Consumer Buying Decisions

Abstract

Introduction: Influencer marketing has emerged as a dominant strategy in digital marketing, leveraging social media influencers to shape brand perception, build consumer trust, and drive purchasing behaviour. With the shift from traditional celebrity endorsements to digital influencers, brands increasingly rely on influencer collaborations to enhance engagement and authenticity. However, the effectiveness of influencer marketing varies based on factors such as influencer credibility, engagement rates, and consumer psychology.
Objectives: This review aims to critically analyse the role of influencer marketing in shaping brand perception and influencing consumer buying behaviour. It explores key psychological drivers such as social proof and FOMO, evaluates the impact of different influencer categories (macro, micro, and nano), and examines the ethical challenges surrounding transparency, fake engagement, and misleading content. Additionally, the study identifies research gaps and proposes future research directions to improve the measurement and effectiveness of influencer marketing strategies.
Methods: This study adopts a literature review approach, synthesizing insights from existing academic research, industry reports, and case studies. The review categorizes influencers based on follower count and engagement levels, compares influencer marketing with traditional advertising methods, and examines metrics used to evaluate campaign success. Key performance indicators (KPIs), ROI measurement models, and consumer trust-building strategies are analysed to assess influencer marketing’s impact on brand equity.
Results: The analysis reveals that influencer marketing is highly effective in building brand trust and influencing consumer behaviour, particularly when influencers maintain authenticity and transparency. Nano- and micro-influencers often generate higher engagement rates compared to macro-influencers, despite having a smaller reach. Social proof, personalized recommendations, and FOMO significantly impact consumer purchasing decisions. However, challenges such as secret sponsorships, fake followers, and the inability to track ROI hinder the credibility and performance of influencer marketing. Ethical practices and regulating authorities are necessary to ensure transparency and trust between brand-influencer collaborations.
Conclusions: Influencer marketing can impact brand attitudes and consumer behavior, but its success is contingent on thoughtful influencer selection, transparency, and ethics. Brands must integrate data-driven approaches to measuring influencer performance and maintain compliance with evolving regulatory demands. Future research agendas must prioritize empirical studies, cross-industry comparisons, and advanced ROI measurement approaches to enhance the sustainability and accountability of influencer marketing campaigns.