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The Role of Social Media Influencers in Launching New Product
- 1. The Role of Social Media Influencers In Launching New Products Course Name: MKT344 (Consumer Behavior) Section: 12 Semester: Spring 2023 Submitted to: Syed Kamrul Islam Senior Lecturer, Department of Marketing and International Business Submitted by: Team 6 Student Name Student ID Ishmam Uddin 1913056630 Mohammad Tauhidul Islam Khan Rifat 2031052630 Ahm Riaz Rahman 2031431630 Samiha Naz 2031253630 Sajid Ahmed 2031562630
- 2. Letter of Transmittal 24th May, 20223 Syed Kamrul Islam (SKI) Senior Lecturer, Department of Marketing and International Business North South University Subject: Consumer Research Report on The Role of Social Media Influencers in launch- ing new products Respected sir, We are pleased to inform you that here is the research report assigned on the subject per your command. We have completed the project utilizing the knowledge we gained in MKT 344, Con- sumer Behavior." We gave our unwavering dedication and effort to make this research report, and in the mean time we all gained invaluable knowledge and information about how to analyze con- sumer behavior in order to predict the consumer decision making and gain in-depth knowledge about effectively performing marketing strategies. We would also like to express our gratitude to all the participants who generously shared their time and inputs to make this research possible, their contribution is deeply acknowledged. We compiled as much information as possible to create this business plan. Hence, we respectfully ask that you accept our efforts in compiling this consumer research report and forgive us for any mistakes we may have made. Yours sincerely, Ishmam Uddin Mohammad Tauhidul Islam Khan Rifat Sajid Ahmed Ahm Riaz Rahman Samiha Naz
- 3. Introduction The advent of social media has fundamentally changed the way a business functions in order to reach their target audience and promote their products and services. In the midst of this technolog- ical wave; individuals with a pretty significant following on their social media handles such as Facebook, Instagram, TikTok are called Social Media Influencers. Few years back it used to be famous celebrities from the field of sports or entertainment etcetera endorsing a new brand or product on the broadcast media for announcing its arrival in front of millions of people. However, the marketing and brand promotion arena has drastically transformed over the last few years as these Social Media Influencers have proved to be an impactful catalysts and numerous companies have rightfully so leveraged their reach and popularity through these individuals. In this consumer research report, we have examined the role of social media influencers in launching a new product and determine the extent to which these influencers can contribute to creating brand awareness, generating buzz for product never-seen-before. Objective The objective is to examine how social media influencers contribute to creating awareness and shaping consumers' perceptions about a new product. This involves investigating the extent to which influencers' recommendations, reviews, and endorsements influence consumers' attitudes, beliefs. Find out how much social media influencers contribute to spreading the word about new products to their followers and the larger online community. Analyze the influencer content's reach, engagement, and virality in relation to the new product. Through this reach we aim to offer insights to companies or business on how to effectively use their marketing strategy and harness the power of social media to maximize the success of their new product launches. Analyze the influencers' role in influencing customers' decision to consider, assess, and ultimately purchase the goods. Find out what influences the influencer's capacity to turn awareness into actual sales and what hinders it. Additionally, this study will examine the factors that contribute to the effectiveness of social media influencers in influencing consumer perceptions, purchase intent, and brand en- gagement during new product launches.
- 4. Research Methodology We are adopting a quantitative research design to collect data and analyze the role of social media influencers in launching new products. Through the collection of numerical data, we are going to analyze statistically to draw conclusions based on empirical evidence. For our primary data collection, we have conducted a survey through google forms which consisted of relevant questionnaires, which contained close-ended questions and Likert Scale, pertaining to the aforementioned research topic. As per the instructions provided, we have managed to obtain responses from over 40+ respondents. Our target audience for the survey indulge in heavy social media usage and have come across social media influencers recommendations for new products. For our secondary data collection, we compiled resources from the internet through numerous blogs, articles and websites. During the compilation of this survey, we have experienced few limitations such as, the generali- zability of this finding might be limited to this particular section of audience and not apply to other sections of population. Secondly, few respondents might have ticked off some answers hastily for the sake of attending the survey, thus which might have slightly deviated the survey from an ac- curate real-world outcome. As our report is majorly based on quantitative data, it might not provide nuanced qualitative insights.
- 5. Data Analysis In this segment, we have analyzed the survey questions that have been conducted. We surveyed 13 questions which were answered by 43 respondents. Out of the 43 respondents, 51.2% were female. The majority age range was between 22-25 and 88.4% of the respondents were unem- ployed. 90.7% of the respondents were unemployed. 1. What is your average time of social media usage per day? Our first question was quite straightforward, yet it is critical to our theme. We were interested in finding how much time the people we surveyed spent on social media each day. Most of our re- sponders (41.9%) spend 0-5 hours daily. 30.2% spend 6-8 hours per day. The remaining 16.3% and 11.6% spend 8-10 hours and above, respectively.
- 6. 2. Which social media platform do you prefer to use? In our second question, we wanted to know the platform people use to which 67.4% answered that they use Facebook. Second to that was 30.2% which was Instagram. Therefore, it is quite evident Facebook still runs the digital media platform and continues to influence customers through their advertisement. 3. Which type of social media influencers do you follow? In our third question, we wanted to know the type of social media influencers our respondents follow. We have multiple options for the respondents. The majority (58.1%) prefers influencers who promote stuff about lifestyle and also like to follow people who posts about travel.
- 7. 4. Have you ever purchased a product or availed a service on social media? Through this question, we wanted to know if people buy products or avail services from social media. From the responses, we learned that 88.4% of our respondents have purchased a product or availed services from social media. This gives us a hint that maybe digital marketing or influencers may provoke viewers to buy products from social media. 5. How likely are you to purchase a new product if it is recommended by a social media influencer you trust? We wanted to see if individuals were persuaded by influencers and bought things as a result of it. 34.9% voted indifferent, while 30.2% said they are moderately affected by social media influenc- ers. 20.9% feel they are extremely likely to be persuaded by social media influencers. Given that the majority of our survey respondents are female, we believe that fashion influencers can persuade girls to buy beauty products by presenting them with accurate product benefits and disadvantages.
- 8. 6. How do social media influencers influence your purchasing decisions? In the 6th question we asked in our survey about how do influencers influence them in their pur- chasing decisions. The options we gave are written above and allowed them to choose all f the options if necessary. Through our survey we found out that people are most influenced when a new product comes into the market and they get to know about it through the influencers. The percentage of that option was 58.1%. Second to that was 44.2% which was when influencers create awareness about the product. Third option was joint by two options which was to provide recom- mendations about the product and when influencers share their personal experience after using that product. These are the prime factors which our respondents believe that influence them in their purchasing decisions through influencers.
- 9. 7. How often do you make purchases influenced by social media influencers? We wanted to see how frequently consumers buy after being persuaded by social media influencers in this query. The majority, 41.9%, replied 'rarely'. The option 'Occasionally' came in second with 37.2%. Only 11.6% stated they are regularly influenced by influencers and purchase products. We may deduce from this poll that consumers buy the items they require. Influencers most likely pro- vide them the push they need to acquire the goods they want. 8. What factors do you consider when evaluating the credibility of a social media influ- encer? We asked what variables individuals consider when judging the legitimacy of a social media in- fluencer in this inquiry. Trustworthiness was selected by 53.5% of respondents. Authenticity, com- petence, and product knowledge were tied for second place at 46.5%. Positive feedback and testi- monials are also shown. We may conclude that individuals are only swayed if they trust the person reviewing the goods. In addition, the individual assessing the product should be knowledgeable about it.
- 10. 9. Do you feel that social media influencers genuinely use and endorse the products they promote? In the above question, we wanted to discover how people felt about influencers who advertise items and whether or not they use them. The majority feel that they may occasionally use the goods they are marketing, while 34.9% say they do not utilize the products they are promoting. 10 How likely are you to recommend a new product or brand to others based on a social media influencer's recommendation? We asked here if people would recommend others about the products which influencers pro- mote. We found out that most people do not care about recommending others. (32.6%). While 27.9% said they do recommend to others about products promoted by influencers.
- 11. 11. What types of content from social media influencers do you find most persuasive when it comes to new product recommendations? This question was asked to figure out the types of content consumers find most persuasive. Through our survey, we found out that the review about the product matters the most to people. It influences them the most. Previously we saw that personal experience matters the most for people to get influenced here also they have voted for that. 12 Do you believe that social media influencers have a significant impact on shaping con- sumer trends and preferences? We tried to find out if social media influencers have a significant impact of shaping customer trends and preferences. Through our survey, we have found out that 95.3% think positively about it. We can conclude that social media influencers do play a significant role on consumer trends and preferences. They influence people in their buying habits mostly.
- 12. Discussion From our survey, we can deduce that most of the respondents said that they are influenced by social media influencers which pushes them to buy products which are advertised by them. We can conclude that these customers have the following attitudes. Trust in Influencers: These customers have a lot of faith in social media influencers. They think influencers possess expertise, knowledge, and experience in the things they promote. Influencers may be regarded as trustworthy sources of information and suggestions. Our survey also showed that they are only influenced by influencers they trust the most. They wont trust people with paid promotions. Emotional Connection: Consumers may develop an emotional connection with social media in- fluencers. They may appreciate and relate to influencers' personalities, lives, or experiences, and buying things advocated by influencers seems like a stronger connection with them. Emotions are important in their decision-making process. For example, people with makeup videos for most of the girls. Convenience and simplicity: Influencer-driven consumers may value the simplicity and conven- ience of purchasing things straight through social media platforms. They like the seamless integra- tion of information and purchasing, which makes it simple to explore and purchase things without leaving the platform. Information Overloaded: Consumers who rely on social media influencers may be overloaded by the amount of information available online. They select and simplify their options by using influ- encers as a filter. They may reduce their selections and make better informed judgments by follow- ing certain influencers. Desire for Novelty: Consumers that are influenced by others may have a high demand for new and fashionable things. They are more inclined to follow the newest trends and try out new items based on the suggestions of influencers. They want to be viewed as early adopters in their social circles and try to remain ahead of the trend.
- 13. Recommendation 1- Companies leveraging social media influencers for new product launches: Identify influencers whose values, content, and audience match those of your new product audience. Build long-term relationships with influencers to build credibility and credibility. Work with influencers to co-create content that highlights the unique features and benefits of new products. Leverage the expertise and creativity of influencers to develop engaging and informative product demonstrations and reviews. Encourage influencers to share their personal experiences and real-world testimonials to build trust and credibility. 2- Strategies for selecting the right influencers, designing effective campaigns, and measur- ing effectiveness: Conduct in-depth research to assess influencer relevance, reach, engagement and credibil- ity. Consider factors such as audience demographics, content quality, engagement rates, and past brand collaborations. Develop clear campaign goals and align them with the influencer's strengths and expertise. Create engaging, customized content that resonates with both your influencer audience and your target audience.
- 14. Monitor and measure key performance indicators (KPIs) such as reach, engagement, con- version rate, and brand sentiment to assess campaign effectiveness. Track and attribute sales and conversions directly influenced by influencers with tracking links, unique discount codes and affiliate programs. 3- Guidelines to foster genuine partnerships between influencers and brands: Focus on building genuine, mutually beneficial relationships with influencers. Respect the creative freedom of influencers and allow them to maintain their own unique voice and style. Give influencers early access to new products and enable authentic, in-depth reviews. Encourage influencers to be transparent about their partnerships to maintain credibility and comply with regulations. Set up clear communication channels to ensure collaboration and feedback between brands and influencers. Fairly reward influencers for their time, effort and influence, taking into account factors such as reach, engagement and exclusivity.
- 15. Conclusion The main findings of this study suggest that social media influencers play an important role in new product launches. They have the ability to raise awareness, generate excitement, and drive con- sumer adoption. By using influencer her marketing, companies can effectively reach and increase engagement with their target her users during new product launches. The practical implications when a company launches a new product or service are: Integrate influencer marketing into your overall marketing strategy for new product launches. Allocate sufficient resources and budget to identify, engage with, and reward relevant in- fluencers. Monitor and measure the impact of your influencer campaigns using the right metrics and tools. Continuously adjust and refine your influencer strategy based on audience feedback and campaign performance. Bring transparency and trust to your influencer partnerships and build trust with your con- sumers. In summary, social media influencers are powerful catalysts for successful new product launches. The ability to create authentic connections with your audience, combined with the reach and en- gagement of social media platforms, makes them a valuable asset for companies looking to max- imize the impact of their product launches. Future research may explore emerging trends in influ- encer marketing and explore the long-term impact of influencer partnerships on brand equity and customer loyalty.