The Influence of Social Media Influencers on Consumer Decision-Making: A Comprehensive SEM Analysis

Abstract

In recent times, social media influencers and their marketing campaigns have gained significant popularity and attention. The aim of this study is to identify the extent to which social media influencers impact consumer decision-making and buying behaviors. The paper examines influencer marketing as a form of electronic word-of-mouth (eWOM) and how it affects the consumer purchase journey. Framework is developed using existing literature on topics like consumer decision-making, eWOM, opinion leadership, source credibility, and digital interaction. The methodology utilizes a deductive research approach with a cross-sectional quantitative survey. The target population comprises consumers in Karachi who regularly use social media. The study uses Structural equation modeling (SEM) analysis to identify the relationship between social media word mouth, quality of information, Digital interaction, Digital Attractiveness, and Digital interaction on consumer decision-making with the mediation effect of opinion leaders.    Convenience sampling is employed to collect data from over 150 respondents. The results provide empirical evidence that opinion leadership and source credibility significantly influence consumer decision-making when it comes to influencer marketing. This implies that the personality and perceived trustworthiness of the influencer matter more than their attractiveness or expertise. However, digital expertise is not found to have a positive effect. Overall, the findings highlight the need for brands to partner with credible influencers who can leverage their leadership to steer audience opinions and purchases. Future research can build on this by investigating negative eWOM, commercialism, and manipulating tactics used by influencers. The paper contributes to the growing research on social media marketing and how online opinion leaders shape consumer behaviors.