EFFECT OF SOCIAL MEDIA INFLUENCER ATTRIBUTES ON CONSUMER BEHAVIOUR: A CASE STUDY OF COSMETIC MULTINATIONAL FIRMS IN NAIROBI COUNTY BY MUHUNI JACKLINE KERU MCOM/ 072369 THESIS SUBMITTED TO THE STRATHMORE BUSINESS SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF COMMERCE OF STRATHMORE UNIVERSITY MAY, 2024 i DECLARATION I declare that this work has not been previously submitted and approved for the award of a degree by this or any other University. To the best of my knowledge and belief, the dissertation contains no material previously published or written by another person except where due reference is made in the dissertation itself. Name: Jackline Keru Signature: …J.K.M………… Date…30th May 2024………… Approval The research thesis has been submitted for examination with my approval as a university supervisor. Dr. Nancy Njiraini Strathmore University Signature: ……………………. Date…………………. ii ABSTRACT The changing environment of influencer marketing presents both opportunities and difficulties for multinational cosmetic companies in Nairobi, Kenya. A deep awareness of the qualities that lead to fruitful collaborations is necessary for the identification and engagement of suitable social media influencers. However, there is little research on the specific attributes of social media influencers and their effect on consumer behavior. This study sought to fill this gap by reviewing how various social media influencer attributes; perceived expertise, perceived trustworthiness and perceived loyalty have influenced consumer behaviour in cosmetic multinational firms in Nairobi County. The study was anchored on social influence theory and source credibility theory. The study was based on descriptive research design and positivism research philosophy. The unit of observation was 75 multinational cosmetic companies operating in Nairobi, Kenya. The unit of analysis was comprised of 5 consumers from each of the 75 selected multinational cosmetic companies, resulting in a total of 375 individual consumers. Therefore, a sample size of 375 was selected through systematic sampling. The study relied on primary data collected using questionnaires. Data was analyzed using descriptive and inferential statistics. Findings are presented in figures and tables. Results of the study depicted that there was a positive statistically significant effect of perceived expertise of social media influencers on consumer behaviour. Secondly, the study depicted that there was a positive statistically significant effect of perceived trustworthiness of social media influencers on consumer behaviour. Thirdly, there was a positive statistically significant effect of perceived loyalty of social media influencers on consumer behaviour. From the findings it can be concluded that social media influencers should enhance their expertise on the products that they serve as ambassadors to leverage their influential role on consumer preference and choices. Cosmetic products distributors in Kenya should evaluate their social media influencer collaborations and strictly engage those who demonstrate authenticity, reliability and capacity not only to connect but also influence consumer decision making. Consumers tend to develop affinity towards products whose social media influencers depicts loyalty on cosmetics they endorse that would nurture a culture of loyalty linked customer engagement. It was recommended that there is a need for development of training programs for employees and social media influencers, transparent dissemination of product information and development of social media influencer selection criteria. iii TABLE OF CONTENTS DECLARATION............................................................................................................................ i ABSTRACT ................................................................................................................................... ii TABLE OF CONTENTS ............................................................................................................ iii LIST OF TABLES ....................................................................................................................... vi LIST OF FIGURES .................................................................................................................... vii ABBREVIATIONS AND ACRYNOMS .................................................................................. viii OPERATIONAL DEFINITION OF KEY TERMS ................................................................. ix ACKNOWLEDGEMENTS ......................................................................................................... x DEDICATION.............................................................................................................................. xi CHAPTER ONE ........................................................................................................................... 1 INTRODUCTION......................................................................................................................... 1 1.1 Background of the Study ...................................................................................................... 1 1.1.1 Social Media Influencers ............................................................................................... 2 1.1.2 Attributes of Social Media Influencers .......................................................................... 4 1.1.3 Consumer Behaviour...................................................................................................... 6 1.1.4 Cosmetics Industry in Kenya ......................................................................................... 8 1.2 Statement of the Problem ...................................................................................................... 9 1.3 Objectives of the Study ....................................................................................................... 11 1.3.1 General Objective of the Study .................................................................................... 11 1.3.2 Specific Objectives of the Study .................................................................................. 11 1.4 Research Questions ............................................................................................................. 11 1.5 Scope of the Study .............................................................................................................. 11 1.6 Significance of the Study .................................................................................................... 12 1.7 Chapter Summary ............................................................................................................... 13 CHAPTER TWO ........................................................................................................................ 14 LITERATURE REVIEW .......................................................................................................... 14 2.1 Introduction ......................................................................................................................... 14 2.2 Theoretical Review ............................................................................................................. 14 2.2.1 Social Influence Theory ............................................................................................... 14 2.2.2 Source Credibility Theory ............................................................................................ 16 2.3 Empirical Literature Review ............................................................................................... 17 2.3.1 Perceived Expertise and Consumer Behaviour ............................................................ 17 2.3.2 Perceived Trustworthiness and Consumer Behaviour ................................................. 19 2.3.3 Perceived Loyalty and Consumer Behaviour............................................................... 21 2.4 Research Gaps ..................................................................................................................... 23 2.5 Conceptual Framework ....................................................................................................... 24 2.6 Chapter Summary ............................................................................................................... 26 CHAPTER THREE .................................................................................................................... 27 RESEARCH METHODOLOGY .............................................................................................. 27 3.1 Introduction ......................................................................................................................... 27 3.2 Research Philosophy ........................................................................................................... 27 3.3 Research Design ................................................................................................................. 28 3.4 Target Population ................................................................................................................ 28 iv 3.5 Sample Size and Sampling Technique ................................................................................ 29 3.6 Data Collection Instruments ............................................................................................... 30 3.7 Data Collection Procedures ................................................................................................ 30 3.8 Research Quality ................................................................................................................. 31 3.8.1 Reliability of Instrument .............................................................................................. 31 3.8.2 Validity of Instrument .................................................................................................. 32 3.9 Data Analysis and Presentation .......................................................................................... 32 3.10 Diagnostic Tests ................................................................................................................ 33 3.10.1 Multicollinearity Test ................................................................................................. 33 3.10.2 Heteroskedasticity Test .............................................................................................. 33 3.10.3 Normality Test ........................................................................................................... 33 3.11 Diagnostics Tests Results ................................................................................................. 34 3.11.1 Multicollinearity Test ................................................................................................. 34 3.11.2 Heteroskedasticity Test .............................................................................................. 34 3.11.3 Normality Test ........................................................................................................... 34 3.12 Ethical Considerations ...................................................................................................... 35 3.13 Chapter Summary ............................................................................................................. 36 CHAPTER FOUR ....................................................................................................................... 37 FINDINGS AND INTERPRETATIONS .................................................................................. 37 4.1 Introduction ......................................................................................................................... 37 4.2 Response Rate ..................................................................................................................... 37 4.3 Demographic Information ................................................................................................... 37 4.4 Descriptive Statistics on Perceived Expertise ..................................................................... 38 4.5 Descriptive Statistics on Perceived Trustworthiness .......................................................... 40 4.6 Descriptive Statistics on Perceived Loyalty ....................................................................... 41 4.7 Descriptive Statistics on Consumer Behaviour .................................................................. 43 4.8 Spearman’s Rank Correlation ............................................................................................. 44 4.8.1 Consumer Behavior and Perceived Expertise: ............................................................. 45 4.8.2 Consumer Behavior and Perceived Trustworthiness ................................................... 45 4.8.3 Consumer Behavior and Perceived Loyalty ................................................................ 46 4.8.4 Summary and Implications .......................................................................................... 46 4.9 Regression Analysis ............................................................................................................ 46 4.9.1 Model Summary ........................................................................................................... 46 4.9.2 ANOVA ....................................................................................................................... 47 4.9.3 Regression Coefficients ............................................................................................... 47 4.9.4 Implications .................................................................................................................. 48 4.10 Chapter Summary ............................................................................................................. 48 CHAPTER FIVE ........................................................................................................................ 49 SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS .................... 49 5.1 Introduction ......................................................................................................................... 49 5.2 Summary of Findings .......................................................................................................... 49 5.3 Discussions ......................................................................................................................... 50 5.3.1 Perceived Expertise and Consumer Behaviour ............................................................ 50 5.3.2 Perceived Trustworthiness and Consumer Behaviour ................................................. 50 5.3.3 Perceived Loyalty and Consumer Behaviour............................................................... 51 5.4 Conclusion .......................................................................................................................... 51 v 5.4 Recommendations ............................................................................................................... 52 5.5 Suggestions for Further Studies .......................................................................................... 55 5.6 Limitations of the Study ..................................................................................................... 55 5.7 Chapter Summary ............................................................................................................... 56 REFERENCES ............................................................................................................................ 57 APPENDICES ............................................................................................................................. 60 Appendix I: Introduction Letter ................................................................................................ 60 Appendix II: Institution Review Board Approval .................................................................... 61 Appendix III: NACOSTI Research Licence ............................................................................. 62 Appendix IV: Participant Consent Form .................................................................................. 63 Appendix V: Questionnaire ...................................................................................................... 67 Appendix VII: List of Multinational Cosmetic Firms .............................................................. 71 Appendix VIII: Dissemination Plan ......................................................................................... 73 vi LIST OF TABLES Table 2.1 Summary of literature gaps Table 2.2 Operationalization of variables Table 3.1 Reliability Analysis Table 3.2 Multicollinearity TestError! Bookmark not defined.Table 3.3 Heteroskedasticity Test Table 4.1 Response Rate Table 4.2 Background Information38Table 4.3 Descriptive Statistics on Perceived Expertise 39Table 4.4 Descriptive Statistics on Perceived Trustworthiness 40Table 4.5 Descriptive Statistics on Perceived Loyalty 42Table 4.6 Descriptive Statistics on Consumer Behaviour Table 4.7 Spearman’s Rank Correlation44 Table 4.8 Model Summary 47Table 4.9 ANOVA 47Table 4.10 Regression Coefficients vii LIST OF FIGURES Figure 2.1 Conceptual Framework 25Figure 4.1 Normality Test 35 ABBREVIATIONS AND ACRYNOMS NACOSTI National Commission for Science Technology and Innovation viii PWC Price Waterhouse Coopers SMIs Social Media Influencers SPSS Statistical Packages for Social Scientists ix OPERATIONAL DEFINITION OF KEY TERMS Consumer behaviour Lee and Young (2020) emphasizes that marketers' trust in influencers is influenced by their trustworthiness, subject matter knowledge, and authenticity, which in turn affects their intentions to partner with them. In this study consumer behaviour will be defined as perception of value, purchase intention, confidence and satisfaction. Perceived Expertise Refers to capacity of social media influencer to show authority on product information, been informative and knowledgeable (Chan, 2022) Perceived Loyalty Perceived Trustworthiness Refers to capacity to social media to have social proof, endorsement and attractiveness towards customers (Khasbulloh & Gede, 2022) Lou & Yuan (2019), the level of trustworthiness is determined by how much the audience believes the influencer to be sincere, honest, or true. In this study it will be defined as social proof, endorsement and attractiveness. x ACKNOWLEDGEMENTS I thank God Almighty for granting me strength to achieve this milestone. I thank my family for the support given to complete this thesis and for their encouragement through prayers, emotional support and understanding throughout this journey. I thank my supervisor Dr. Nancy Njiraini for challenging me and offering her guidance during the research journey and providing unaverred support. To my friends and colleagues that provided guidance and support along the way, thank you. xi DEDICATION I’m dedicating this thesis to my parents, husband and our lovely son Kieran King’ori. 1 CHAPTER ONE INTRODUCTION 1.1 Background of the Study Social media influencers (SMI), by virtue of their public presence and personal brand, are susceptible to controversies and scandals, which can have profound negative impacts on the brands they endorse (Maharaj, 2021). Influencer controversies can significantly alter consumer behavior. Consumer behaviour is defined as the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society (Hoyer & Pieters, 2016) . Erdogan (2019) states that when an influencer's behavior or actions lead to public outrage, the fallout can extend to associated brands, resulting in a loss of consumer trust, decreased sales, and long-term damage to brand reputation. Over the years, social media has grown quickly and significantly, and billions of people use it every day for a wide range of activities around the world. According to (Shah & Qureshi, 2019), about one-third of the world's population is online and regularly uses social media. This has changed consumer behavior. Social media has fundamentally transformed global marketing practices, enabling companies to engage with consumers across the world in real-time (Gaenssle & Budzinski, 2021). Social media influencers (SMIs) have become pivotal in these interactions, wielding considerable influence over consumer behaviors and brand perceptions. With the advent of platforms like Instagram, YouTube, and TikTok, influencers have emerged as key players in the marketing landscape (Berger & Iyengar, 2013). These influencers, who range from celebrities to niche content creators, leverage their large followings to promote products and services, thereby influencing consumer choices on a global scale (Khamia & Welling, 2017). Their global reach is enhanced by the internet's borderless nature, allowing influencers to connect with diverse audiences across different regions and cultures (De Veirman, 2017). Social media influencers have transformed marketing practices across various industries globally (Ahmad, N. et al. 2015). For instance, the cosmetics industry has witnessed a significant shift due to the influence of beauty bloggers and makeup artists on platforms like Instagram and YouTube. 2 Influencers like Huda Kattan, founder of Huda Beauty has amassed millions of followers, making her recommendations and reviews highly influential (Freberg & McGaughey, 2011). Huda Kattan started as a beauty blogger and successfully launched her own cosmetics line, which quickly became a global brand largely due to her social media influence and direct engagement with her followers (Freberg & McGaughey, 2011). In the context of Nairobi County, Kenya, social media influencers are playing an increasingly important role in shaping consumer behavior, particularly in the cosmetics industry. Cosmetic multinational firms in Nairobi leverage influencer marketing to navigate the competitive landscape and connect with consumers on a personal level ( (NJuguna & Njeru, 2020). Influencers such as Joanna Kinuthia and Patricia Kihoro have become prominent figures in the Kenyan beauty scene. Joanna Kinuthia, for instance, is known for her beauty tutorials and product reviews (Kinuthia, 2021). Her influence has led to collaborations with both local and international cosmetic brands, thereby impacting consumer purchase decisions and brand perceptions in Nairobi (Kinuthia, 2021). This study investigated the effect of social media influencer attributes on consumer behaviour in cosmetic multinational firms in Nairobi County. 1.1.1 Social Media Influencers Social Media Influencer (SMI) are defined as individuals with a sizable social media following who act as trustworthy authority and trend-setters in a particular business (De Veirman, 2017). In the quickly changing digital environment, we are witnessing the new symbols of these generations developing quickly. (Ruiz-Gomez, 2021) refers to these heroes as social media influencers due to their enormous social media following. According to (Mahmud, 2018) many academics view influencers as "special individuals" who possess the ability to create noteworthy content and a solid reputation in a certain sector. Customers' faith in influencers may stem from their expertise in their specific field. According to (Zhou & Jin, 2023)it has been demonstrated that using brand influencers increases view-through rates by 193%, that 35% of users learn about items and companies from influencers, and that 65% of users engage with the material when influencers post about them. Research on social media influencers (SMIs) has evolved significantly over the past decade, with scholars exploring various conceptualizations of influencers' roles and impacts across different 3 channels. (Solomon, 2017) states that despite the similarity of the platforms used such as Instagram, YouTube, TikTok, and Facebook the ways in which influencers are perceived, utilized, and studied can vary greatly. (Schiffman & Kanuk, 2010) opine that social media influencers (SMI) create and share content through social media platforms to drive engagement and increase awareness. (Solomon, 2017) opined that despite social media influencers having a significant influence on consumer behaviour the core benefits had not been exploited. (Simiyu, 2021) determined that SMI significantly influences consumer behaviour. Studies have explored influencers around parasocial relationships (PSRs), which describe the one- sided relationships that followers develop with influencers. (Horton, 2016) originally introduced the concept of PSRs to describe interactions between television personalities and viewers. The influence of these personalities can be attributed to their perceived authenticity and relatability, which traditional celebrity endorsements often lack (Kim, 2011). This concept has been extended to social media, where followers feel a sense of intimacy and friendship with influencers, despite the lack of reciprocal interaction (Chung, 2017). Influencers often share content related to lifestyle, beauty, fashion, and other consumer interests, making them valuable partners for cosmetic brands (Abidin, 2016). Other studies have categorized influencers into different archetypes based on their content and interaction styles. (De Veirman, 2017) identified different types of influencers, such as megastars, who have a large following but less personal interaction, and micro-influencers, who have smaller followings but higher engagement rates. Campbell & Farrel (2020) discovered one of the most often used classifications which included four distinct groups of influencers: macro, micro, nano, and mega influencers. Still, there is a lot of confusion around the considerations that consumers make when making a purchasing decision based on interacting with social media influencers’ contents. More recently, studies have started to focus on negative aspects such as influencer fatigue and the authenticity crisis. Influencer fatigue refers to the diminishing effectiveness of influencer marketing due to oversaturation and excessive commercial content, which can lead to consumer distrust and disengagement (Schouten & Verspaget, 2020). Authenticity is increasingly seen as a crucial factor, with research suggesting that consumers are more influenced by content that appears 4 genuine and relatable, rather than overly polished or promotional (Audrezet & Moulard, 2020). Negative traits such as inauthenticity, over-commercialization, and controversies can harm an influencer's credibility. For instance, scandals involving influencers can significantly damage their and the associated brand's reputation (Hwang & Zhang, 2018). In Kenya, the Shaffie Weru scandal exemplifies how negative publicity can impact public perception and trust (Wainaina, 2021). 1.1.2 Attributes of Social Media Influencers Social media influencer attributes are the distinct characteristics or qualities that define their effectiveness and impact on social media platforms (Dessart et al. 2015). These attributes shape how influencers are perceived by their audience, influencing followers' opinions, attitudes, and behaviors (Vrontis & Christofi, 2021). Studies have examined the role of influencer attributes such as credibility, attractiveness, and relatability in shaping consumer attitudes and purchasing decisions (Jin & Phua, 2014). However, there is a tendency to generalize findings across different demographic and cultural groups within the country, neglecting the diverse consumer segments that exist. For instance, the influence of social media personalities may vary significantly between urban and rural populations or among different ethnic groups, which has not been thoroughly explored (De Veirman, 2017) Previous studies have often conflated these attributes or generalized findings across diverse demographic and cultural groups (De Veirman, 2017). According to (Lou & Yuan, 2019) credibility encompasses the trustworthiness and perceived honesty of the influencer, which can significantly affect consumer attitudes towards promoted products. According to (Uzunoglu & Kip, 2014) credibility is mostly pertaining to the fact that the influencers have used the product themselves, and it has been demonstrated that this favorably influences followers' purchase intentions. Djafarova and Rushworth (2017) explored credibility but used a broad measure that included both trustworthiness and expertise without differentiating between them, potentially conflating their distinct impacts. Research indicates that higher credibility leads to greater persuasive power and influence over followers (Hovland et al. 2020). (Lou & Yuan, 2019) both found a direct correlation between a communication source's persuasiveness and level of influence. (Lou & Yuan, 2019) studied the effects of social media influencer marketing but did not distinctly define perceived expertise, 5 instead lumping it with overall influencer credibility. This broad approach may obscure the specific impact of expertise on consumer behavior. Freberg et al. (2011) examined public perceptions of social media influencers but did not isolate perceived trustworthiness as a separate construct, treating it as part of overall influencer appeal. This general approach can dilute the specific role of trustworthiness in influencing consumer behavior. Attractiveness is defined as a set of attributes that cause an individual to be favorably perceived by others. These attributes can include physical features such as facial symmetry, body shape, and grooming, as well as non-physical characteristics such as confidence, kindness, and intelligence (Langlois et al. 2000). The social and physical appeal of the influencers was characterized by (Delbaere et al. 2021) as attractiveness. Most prior studies have only been based solely on physical appearance. Lee & Watkins (2016) demonstrated that physical beauty encourages a certain behavior that the influencer has advocated to have significance in shaping brand views and to affect followers' purchase intentions. According to Sakib et al. (2020) influencers' ability to evoke strong feelings and create a sense of community had a positive effect on consumer’s purchase behaviour. Relatabilty measures the level of engagement between the influencer and their audience. High engagement indicates a strong connection and active communication, which can enhance the influencer's impact on their followers (Dessart & Thomas, 2015). Metrics such as follower count, post reach, likes, shares, and comments are used to evaluate an influencer's audience size and engagement rates (Kemp, 2021). Jin and Phua (2014) looked at social identification with celebrities but did not explicitly measure perceived loyalty to influencers, which could have provided deeper insights into consumer allegiance and repeated engagement with endorsed brands. The current study examined the effect of social media influencer attributes on consumer behaviour using the attributes: perceived expertise, perceived trustworthiness and perceived loyalty. Key attributes enhancing influencer effectiveness include perceived expertise, perceived trustworthiness, and perceived loyalty (Djafarova & Rushworth, 2017). This is as also ascribed in (Jepkoech, 2020) study. These measures were also used by Mwangi, J. (2018). The focus on these attributes is justified by their significant roles in shaping consumer behavior (Djafarova & Rushworth, 2017). 6 Perceived Expertise refers to the influencer's knowledge and proficiency in a specific domain, enhancing consumer confidence in product recommendations (Hovland et al. 2020). Consumers are more likely to trust and act on advice from influencers considered experts in cosmetics. Evans et al. (2017) found that influencers' expertise significantly impacts consumer attitudes and behaviors. Perceived trustworthiness involves the influencer's perceived honesty and integrity, which can significantly affect consumer attitudes towards promoted products (Xiao et al. 2018). Trustworthiness is enhanced when influencers use the products themselves and share genuine experiences (Uzunoglu & Kip, 2014). Djafarova and Rushworth (2017) emphasize that higher credibility leads to greater persuasive power and influence over followers. Perceived loyalty refers to the degree to which consumers feel a connection and commitment to the influencer, fostering a sense of loyalty and repeated engagement (Djafarova & Rushworth, 2017). This connection can enhance the influencer's impact by making their endorsements more personally relevant to the consumer (Horton & Wohl, 2016). High engagement indicates a strong connection, enhancing the influencer's impact on their followers (Dessart & Thomas, 2015). This study aims to provide a clearer understanding of the specific impacts of perceived expertise, perceived trustworthiness, and perceived loyalty on consumer behavior within the context of cosmetic multinational firms in Nairobi County. 1.1.3 Consumer Behaviour Consumer behavior is an intricate process encompassing the decision-making activities and actions involved in the acquisition, use, and disposal of goods and services. It includes searching for information, evaluating alternatives, and ultimately deciding whether to purchase or reject a product (Valaskova & Kovacova, 2015). Kotler and Keller (2016) highlight that consumer behavior also encompasses the experiential and emotional responses of consumers during and after the consumption process. For this study, Njeru's (2019) definition of consumer behavior is adopted, focusing on the various activities, decision-making processes, and social influences that drive individuals and households to purchase products in Nairobi County. The study of consumer behavior, including purchase intention, perceived value, and satisfaction, is informed by established theories such as the Theory of Planned Behavior (Ajzen, 1991) and the Consumer Loyalty Framework (Oliver, 1999). These frameworks provide a basis for 7 understanding how attitudes, intentions, and actual behaviors are influenced by external factors like marketing communications. To systematically study consumer behavior, the following constructs will be measured in this study: purchase intention, perceived value, and satisfaction. Purchase intention refers to the likelihood that a consumer will buy a product based on SMI recommendations. This will be assessed using likert scale items adapted from prior research (Chetioui & Lebdaoui, 2020). Studies show that influencer endorsements can lead to increased brand awareness, positive brand perceptions, and higher purchase intentions (Chetioui & Lebdaoui, 2020). In Nairobi County, where digital adoption is growing, the impact of influencers on consumer behavior is becoming increasingly significant, particularly among younger demographics who are active social media users (Kamau, 2020). Perceived value refers to consumers' evaluation of the benefits and costs of a product as influenced by an SMI. This will be measured using scales developed by Sweeney and Soutar (2001). When elucidating consumer behavior, it is paramount to consider unique individual traits such as culture, lifestyle, buying habits, and the surrounding environment (Zak & Maria, 2019). Waqas et al. (2021) argue that these attributes contribute to the creation of a context, thus producing unique experiences while consuming purchased products. Consumers often engage in repetitive purchases of similar products not solely for optimal satisfaction but to reduce cognitive effort in responding to their needs (Zak & Maria, 2019). Cognitive behavior can be described as the dynamic interaction of affection and cognition, behavior, and the surrounding environment (Khasbulloh & Gede, 2022). Given that consumption is behavioral, there is a need to explore the emotional and behavioral aspects attributed to an individual upon product consumption (Frah & Siew, 2021). Satisfaction refers to the post-purchase evaluation of a product endorsed by an SMI. The elucidation of consumer behavior should incorporate an examination of consumer purchasing decisions and their determinants. Mishra and Ashfaq (2023) argue that consumers behave in certain ways when consuming products, often purchasing those that provide maximum satisfaction. Thus, purchase decisions are based on satisfaction derived from financial investment and pleasant product service (Atika et al., 2019). Repurchase decisions are associated with products that elevate consumer satisfaction levels (Ahmed et al., 2023). Consumers are guided by consumption and experimentation in response to their needs. 8 Adopting Njeru's (2019) definition ensures that the unique cultural, economic, and social factors influencing Kenyan consumers are considered, making the study's findings more relevant and applicable to Nairobi County's market dynamics. This definition includes purchase intention, perceived value and satisfaction, offering a holistic view of consumer interactions with products. This comprehensive scope is essential for understanding the full impact of social media influencers (SMIs) on consumer behavior. 1.1.4 Cosmetics Industry in Kenya The cosmetics industry is a vibrant and rapidly expanding sector. In Kenya, the cosmetics market is robust and growing, driven by rising disposable incomes and increasing awareness of beauty (KIPPRA, 2021). According to a report by (Euromonitor, 2023), the Kenyan cosmetics market was valued at approximately USD 200 million in 2022, with an annual growth rate of around 7%. This growth is expected to continue, driven by a youthful population and increasing demand for beauty products. The cosmetics industry in Kenya can be broadly categorized into skincare, haircare, makeup, and fragrances (Kenya Cosmetics Industry Report, 2022). Skincare and haircare products dominate the market, accounting for over 60% of total sales. Makeup and fragrances are also growing segments, particularly among urban consumers (Kenya Cosmetics Industry Report, 2022). The cosmetics sector has recently emerged as Kenya's new investment hotspot, drawing significant interest from multinational firms through multimillion shilling acquisitions. Kenya is home to 226 foreign multinational corporations (Mwaniki, 2020), with Nairobi, as a commercial hub, hosting several multinational cosmetic firms that actively engage influencers to promote their products. According to data from the Kenya Chamber of Commerce (2023), 75 of these 226 multinational corporations are in the cosmetics sector. This market is characterized by the presence of both international and local brands competing on product quality, pricing, and brand loyalty. Major international players include L'Oréal, Unilever, and Procter & Gamble, while notable local brands comprise SuzieBeauty, Haco Tiger Brands, and Ashleys Kenya Limited. The marketing strategies of these companies have increasingly leaned towards digital platforms, with companies like Estée Lauder reporting that 75% of their marketing budget is now allocated to digital marketing, heavily focusing on influencers (Cohen, 2018). However, this strategy comes 9 with its own set of challenges. Mwangi (2021) argues that brands face several obstacles when utilizing influencer marketing in the Kenyan cosmetic sector. Consumers are becoming increasingly savvy and can often discern when an endorsement is genuine or purely transactional. Additionally, Gikandi (2021) highlights that indiscriminate promotion by influencers can erode trust among their followers, which can extend to the brands they endorse, negatively impacting both brand reputation and sales. Brands must ensure that the influencer’s audience aligns with their target market and that the influencer’s values match the brand’s image in order to navigate these challenges (Gikandi, 2021). Moreover, the market is flooded with influencers, making it difficult to identify those who genuinely have a substantial impact and those who might have inflated follower counts through unethical means (Njenga, 2021). Therefore, while the cosmetics sector in Kenya holds significant potential, leveraging influencer marketing effectively requires a strategic and discerning approach. 1.2 Statement of the Problem The vast and diverse landscape of social media platforms makes it difficult to identify influencers with the right demographics, interests, and engagement levels for a particular product or service (Smith, 2020). Some marketing campaigns have experienced negative outcomes that may be linked to the choice of social media influencers. Factors such as lack of authenticity, over- promotion, and controversies surrounding influencers have led to brand damage and loss of consumer trust (Johnson et al., 2019). Moreover, little is known about the characteristics that make an influencer successful for a particular marketing campaign. Furthermore, there is a homogeneity of the social media influencer attributes on consumer behaviour in different sectors. Existing studies have employed various methodologies, including experimental designs and mixed-method approaches. For example, Chung, Lee, and Kim (2023) adopted an experimental research design, which may not fully capture the complexities of real-world social media interactions. Additionally, Gong and Holiday (2023) used a combination of primary data (via questionnaires) and secondary data (through document content analysis), which highlights the need for a more integrated approach. Contextually, studies have drawn respondents from continents whose macro-economic aspects are not common thus they had documented mixed results. For instance, in Western markets, social media influencer individuality and authenticity 10 are highly valued, whereas in many Asian markets, collectivism and social proof may play a more substantial role in consumer decision-making (Hofstede, 2001). There is variability in how studies have conceptualized and operationalized social media influence. Many have not adequately defined key attributes such as perceived expertise, perceived trustworthiness, and perceived loyalty. For instance, (Lou & Yuan, 2019) studied the effects of social media influencer marketing but did not distinctly define perceived expertise, instead lumping it with overall influencer credibility. This study adopts a comprehensive methodological approach by employing systematic sampling to ensure a representative sample of consumers. It focuses on primary data collection through structured questionnaires tailored to capture nuanced consumer behaviors and attitudes towards social media influencers in the cosmetics industry. This approach allows for a more in-depth understanding of the specific context of Nairobi County, enhancing the robustness and relevance of the findings (Creswell, 2014). By focusing on Nairobi County, this study provides empirical insights specific to an African urban setting, which is underrepresented in existing literature. It examines how local consumers respond to social media influencers within the cosmetics industry, offering valuable empirical data that reflects the unique socio-economic and cultural environment of Kenya (Pew Research Center, 2019). This study specifically contextualizes the impact of social media influencers within Nairobi County, considering local economic conditions, internet penetration rates, and cultural factors. By doing so, it provides contextually relevant insights that can inform more effective influencer marketing strategies tailored to the Kenyan market (Mbogo, 2020). This study clearly defines and operationalizes these attributes, drawing on established theoretical frameworks such as Social Influence Theory and Source Credibility Theory. By focusing on perceived expertise, trustworthiness, and loyalty, it provides a structured and theoretically grounded approach to understanding influencer effectiveness (Hovland & Weiss, 1951). 11 1.3 Objectives of the Study 1.3.1 General Objective of the Study The general objective of the study was to examine the influence of social media influencers on consumer behaviour in cosmetic multinational firms in Nairobi Kenya. 1.3.2 Specific Objectives of the Study The specific objectives of the study were: i) To examine the effect of perceived expertise of social media influencers on consumer behavior in cosmetic multinational firms in Nairobi Kenya. ii) To examine the effect of perceived trustworthiness of social media influencers on consumer behavior in cosmetic multinational firms in Nairobi Kenya. iii) To examine the effect of perceived loyalty of social media influencers on consumer behavior in cosmetic multinational firms in Nairobi Kenya. 1.4 Research Questions The study was responding to the following research questions: (i) What is the effect of perceived expertise of social media influencers on consumer behavior in cosmetic multinational firms in Nairobi Kenya? (ii) What is the effect of perceived trustworthiness of social media influencers on consumer behavior in cosmetic multinational firms in Nairobi Kenya? (iii)What is the effect of perceived loyalty of social media influencers on consumer behavior in cosmetic multinational firms in Nairobi Kenya? 1.5 Scope of the Study This study focused specifically on the influence of social media influencer attributes on the consumer behaviour in cosmetic multinational firms in Nairobi, Kenya. The study sourced primary 12 data amongst customers of respective cosmetic multinationals. Quantitative data approach was adopted, and questionnaires administered among the consumers of MNCs in the Cosmetic industry. The study was executed in Kenya, Nairobi County in April 2024. Even though there are several social media influencers attributes, the current study was limited to perceived expertise, perceived trustworthiness and perceived loyalty. The study adopted multiple regression analysis, correlation, exploratory factor analysis and descriptive statistics to analyze the data. 1.6 Significance of the Study Accomplishment of the current empirical enquiry is advantageous to different stakeholders. Policy makers are guided on influencer selection criterion that would guide in investment of resources. This would be possible through understanding on how social influencer attributes resonate with consumers hence, companies would make informed decisions on their choice of social media influencers. The study will benefit management of cosmetic multinationals and they may rely on the findings to develop strategies that would enhance achievement of organization goals and objectives. Incorporation of social media influencers in marketing of cosmetic products would guide in development of customized marketing strategies in the respective target market. Further, since the business operation is dynamic there is a need for incorporation of non-traditional marketing strategies. An understanding of consumer behaviour would enable management in multinationals to develop strategies on integration of social media influencer in elucidation of purchasing decisions. An examination of the influence of influencer attributes would aid in identification of mechanisms for influencing consumer decisions in a digital market space. Further, the management would benefit in understanding the most optimal marketing strategy that would be customized to target audiences, hence increasing the effectiveness of firm marketing efforts. To theorists and empirical researchers, the study provides empirical and theoretical methods that can be applied in a wide variety of marketing. It serves as the basis of benchmarking future empirical studies to either refute or support existing findings and conclusions to be drawn on social 13 media influencers and consumer behaviours of marketing professionals in cosmetic multinational companies in Kenya. 1.7 Chapter Summary The foregoing chapter has presented the background of the study, statement of the problem, objectives of the study, scope of the study and significance of the study. In the subsequent chapter theoretical and empirical literature review will be presented. 14 CHAPTER TWO LITERATURE REVIEW 2.1 Introduction This chapter provides an extensive overview of existing literature related to the impact of social media influencer attributes on the consumer behaviour. The focus of this review is on the context of cosmetic multinational firms in Nairobi, Kenya. The chapter begins by discussing the theoretical foundations of the study. It then delves into the attributes of social media influencers that influence consumer behaviour. Finally, the literature review addresses the unique context of cosmetic multinational firms operating in Nairobi, Kenya, and their specific interactions with social media influencers. 2.2 Theoretical Review The study was grounded on the Social Influence Theory and Source Credibility Theory to understand the impact of social media influencer attributes on consumer behavior in the context of cosmetic multinational firms in Nairobi County. These theories offer a comprehensive framework for analyzing how influencer characteristics such as credibility, attractiveness, relatability, and expertise influence consumer decisions and brand perceptions. 2.2.1 Social Influence Theory Social Influence Theory explains how individuals change their attitudes, beliefs, and behaviors based on the social context and the influence of others (Kelman, 1958). This theory encompasses three processes: compliance, identification, and internalization, which are directly influenced by the perceived attributes of social media influencers (Kelman, 1958). Compliance occurs when individuals conform to the expectations of others to gain social approval or avoid social disapproval (Kelman, 1958). In the context of social media, followers might purchase products endorsed by influencers to align with perceived social norms or trends. For instance, Evans (2017) states that when followers perceive influencers as experts in cosmetics, they are more likely to internalize their recommendations, believing them to be knowledgeable 15 and credible sources. This internalization process leads consumers to adopt the influencer’s suggestions as their own beliefs and preferences. An influencer with a background in dermatology or extensive experience in makeup artistry can shape consumer behavior by providing expert advice on skincare routines or makeup application techniques, thereby influencing purchasing decisions (Lou & Yuan, 2019). Identification involves adopting behaviors and attitudes to establish or maintain a relationship with a person or group (Kelman, 1958). Followers often identify with influencers who they perceive as role models, leading to emulation of the influencer’s consumption behaviors. Trustworthiness enhances the likelihood of compliance and identification (Djafarova & Rushworth, 2017). Consumers are more likely to comply with recommendations from influencers they perceive as honest and reliable. Additionally, when consumers identify with a trustworthy influencer, they are more likely to adopt behaviors and attitudes that align with the influencer's (Lou & Yuan, 2019). An influencer who transparently shares both positive and negative aspects of cosmetic products builds trust, encouraging followers to follow their advice and fostering a deeper identification with their brand (Djafarova & Rushworth, 2017). Internalization happens when individuals accept influence because the content of the influence aligns with their value system (Kelman, 1958). When influencers are perceived as credible and knowledgeable, their endorsements can lead to genuine changes in consumer attitudes and behaviors (Lou & Yuan, 2019). Loyalty towards an influencer is often a result of strong identification. When followers feel a sense of loyalty, they are more likely to emulate the influencer’s behavior and purchase the products they endorse. This loyalty can lead to sustained consumer engagement and repeated purchases. Influencers who consistently engage with their audience and show genuine appreciation for their support cultivate a loyal following, which in turn influences consumer behavior and brand loyalty (Evans et al., 2017). Social Influence Theory helps explain how influencers shape consumer behavior through compliance, identification, and internalization processes. This theory is critical in understanding the psychological mechanisms behind consumer responses to influencer endorsements. 16 2.2.2 Source Credibility Theory Source Credibility Theory asserts that the persuasiveness of a message is significantly influenced by the perceived credibility of the source (Hovland & Weiss, 1951). This theory is particularly pertinent to understanding how social media influencers impact consumer behavior through attributes such as expertise, trustworthiness, and attractiveness (Lou & Yuan, 2019). Expertise refers to the perceived knowledge, skill, or experience of the source in a particular domain (Hovland & Weiss, 1951). Influencers with recognized expertise in cosmetics, such as those with professional training in dermatology or extensive experience in makeup artistry, are seen as more credible and persuasive sources of information (Lou & Yuan, 2019). Expertise is a core component of source credibility. An influencer’s knowledge and skill in cosmetics enhance their credibility, making their endorsements more persuasive (De Veirman, 2017). Trustworthiness denotes the perceived honesty, integrity, and reliability of the source (Hovland, Janis, & Kelley, 1953). Influencers who are perceived as trustworthy can effectively shape consumer attitudes and behaviors. Influencers who transparently disclose sponsored content and provide balanced reviews, including potential drawbacks of products, are perceived as more trustworthy, leading to a stronger influence on consumer behavior (Djafarova & Rushworth, 2017). Honest and ethical behavior from influencers leads to higher trust and more significant influence on consumer behavior (Freberg et al., 2011). Influencers who are transparent about sponsored content and provide honest reviews are more likely to build trust with their audience, leading to higher consumer loyalty and engagement (Djafarova & Rushworth, 2017). Attractiveness includes both physical attractiveness and personal charm or likability (Hovland, Janis, & Kelley, 1953). Influencers who are attractive in these ways are often more persuasive. Influencers who are perceived as likable and relatable can capture and retain audience attention, enhancing their persuasive power (De Veirman et al. 2017). While not a primary focus, attractiveness enhances the persuasive power of an influencer. Attractive influencers build strong relationships with their audience, increasing their influence (Jin & Phua, 2014). Source Credibility Theory emphasizes the importance of an influencer's perceived credibility— comprising expertise, trustworthiness, and attractiveness—in enhancing the effectiveness of 17 marketing messages (Lou & Yuan, 2019). Together, these theories provide a comprehensive framework for analyzing the impact of social media influencers on consumer behavior in the cosmetics market. 2.3 Empirical Literature Review The conceptual literature defines Social Media Influencers (SMIs) as individuals with significant followings on social platforms who act as trusted authorities and trend-setters in specific industries (De Veirman, 2017). Empirical studies align with these definitions by demonstrating the significant influence SMIs have on consumer behavior. 2.3.1 Perceived Expertise and Consumer Behaviour Serman and Sims (2020) explored how consumers' purchasing patterns are influenced by social media influencers. The study utilized cross sectional research design and gathered primary data through administration of 202 questionnaires. Univariate, exploratory factors and structural equation modeling examined the information. The study's findings showed that social attractiveness, sponsorship, perceived utility, trustworthiness, past experience, and subjective norms significantly influenced consumers' purchasing behavior. Further, social attractiveness displayed a statistically significant mediating effect on the attitude and intentions of consumers. The study has methodological and contextual gaps. Methodologically the study may have considered blending qualitative with quantitative data and there was need for documentation of diagnostic tests before modeling. Contextually, the study may have considered drawing data amongst management since they better understand the essence of social media influencers in relation to their brands. Chan (2022) examined social media influencers and the impact they have on consumer purchasing habits in the United Kingdom. The study asserted that brands collaborate with and exploit social media influencers to attain their target audiences, maximize revenue, enhance brand recognition, and enhance brand image. The study specifically aim,ed at identifying personality and content features which were elicited by SMIs, elucidate measures that can be deployed to increase consumer loyalty and investigate how demographic factors—such as gender, income, and education—affect the impact of SMIs. The study adopted descriptive research design and obtained 18 information by means of administration of questionnaires. The data were examined using multiple regression and univariate analysis. The study's findings showed that content features (closeness and interactivity) and personality features (perceived attractiveness and perceived credibility) had a statistically significant effect on customer loyalty and choice imitation. Further, there was a statistically significant mediating effect of customer loyalty on the effect of content features and personality features on choice imitation. Chopra and Gupta (2020) elucidated the impact of social media on consumer behaviour. Descriptive research design was used in the study to assess how customers obtain and analyze information before making a purchase as well as the role that social media plays at various phases of the decision-making process. Primary data was collected through administration of questionnaires. According to the study's findings, the majority of respondents preferred online shopping and spent an average of two hours each day on the internet. At least 60% of respondents followed brands in the social media and 61% perceived social media to have more superior information as compared to word of mouth. Moreover, 47% asserted that their brand vision was influenced by social media and 46% believed that their decision was influenced by social media through reviews and comments on given products. In addition, 88% believed that brand viability and attractiveness was anchored on social media feedback. Kumar and Vimal (2018) explored the impact of social media on consumer buying behaviour using technology acceptance model. The study hypothesized that purchase intention was influenced by perceived usefulness, perceived value and perceived risk. Descriptive research design was used in the study, and 265 postgraduate students were given questionnaires to complete in order to gather primary data. Univariate and multiple regression analysis analyzed the data. It was found that perceived usefulness, perceived value and perceived risk has a statistically significant effect on purchase intention whenever customers purchase intentions were influenced by social media. Through the study it was easy to stimulate organization products demand through use of social media. Hazar et al. (2022) examined the effect of social media attributes on the intention to buy. By using a descriptive research methodology, 439 questionnaires were sent out to participants in the study to gather primary data. Descriptive statistics and partial least squares models analyzed the data. 19 The study's findings showed that factors such as information quality, expertise, attractiveness, meaning transfer, and reliability significantly influenced consumers' inclinations to make purchases. It was concluded that company’s decision-makers should develop measures aimed at enhancing their sales and rely on social media influencers' insight since they can be relied on for customer engagement and influencing decision making. De Veirman (2017) and Ruiz-Gomez (2021) highlight the large followings and authority of influencers. Chan (2022) empirically confirms that perceived credibility, including influencer expertise and trustworthiness, affects customer loyalty and choice imitation. Mahmud (2018) notes the trust consumers place in influencers due to their expertise. This is reflected in Ahmed et al. (2023), who shows that source quality and argument credibility positively impact purchase intentions. 2.3.2 Perceived Trustworthiness and Consumer Behaviour Mishra and Ashfaq (2023) evaluated the influencers impact on consumer buying behavior and purchasing patterns in India. Descriptive research design was utilized in the study and relied on primary data that was gathered using 358 questionnaires. Data was analyzed using descriptive and bivariate statistics. Results of the study depicted that the majority of social media users aged between 18 to 30 years, 49.2% spent at least three hours per day on social media, majority of those who visited social media they were seeking for entertainment or food. 51.7% reported that Instagram gives them to follow influencers. Concerning the type of influencers, 26% preferred product reviews, 17.6% preferred sponsored posts and 30% had preference for live streams. Majority 46% reported that they do not regret having undertaken purchases through social media and it was agreed that the majority of social media influencers had a significant impact in introduction of new products in the market. Zak and Maria (2019) examined how social media influencers affect consumers' decision-making. The study applied cross sectional research design and relied on primary data that was sourced through administration of questionnaires. Through descriptive statistical analysis results of the study indicated that personalities from the sports were the highly regarded influencers, 55% perceived some social media influencers to better than others, 30% purchased products since they 20 were promoted by social media influencers and 45% alluded that social media influencer has the highest influence on their decision making. The study may have considered carrying out inferential statistics such as correlation or regression so as to examine the causality between social media influencers and consumers decision making. Rifki and Arif (2023) established the impact of social media influencers on consumer behaviours and intentions in Indonesia. The study used quantitative research methods, administering 180 questionnaires to gather data. The data were evaluated using multiple regression analysis and descriptive statistics. Results of the study indicate that there was a statistically significant influence of social media attraction, credibility, product sustainability and transfer of meaning on consumer attitudes and purchase intentions. Since the study applied multiple regression analysis there was a need for the study to report on diagnostic tests prior to modeling. This might have reduced the likelihood of making skewed judgments. Ahmed et al. (2023) studied the impact of social media influencers on consumers' wellbeing and purchase intention. The study applied experimental research design and issued 190 questionnaires among experimental and control groups. Structural equation modeling was applied to carry out multi group analysis. Results of the study depicted that source quality, argument credibility and kindliness had a positive statistically notable outcome on consumer intentions. Further, social media influencers had a positive statistically significant effect on purchase intentions. The study is methodological since the current study will apply multiple regression analysis to examine the influence of social media influencers on consumer behaviour. Frah and Siew (2021) explored social media influencers and their impact on consumers behaviour in Malaysia. The study adopted descriptive research design and sourced primary data through administration of 200 questionnaires among respondents who were selected through snowball sampling. To analyze the data, descriptive and inferential statistics were applied. Results of the study depicts that the majority 35% moderately agreed that they follow social media influencers for opinion. Majority reported that the social media influencers influenced their purchase decision. Further, there was a statistically significant influence of electronic words while making purchase decisions. Positive and negative social media comments had a significant effect on consumer decision making. 21 Mahmud (2018) and Zhou & Jin (2023) describe influencers as "special individuals" with noteworthy content and solid reputations. Empirical findings by Hazar et al. (2022) support this, showing that attributes like attractiveness and reliability significantly influence purchase intentions. Delbaere et al. (2021) and Lee & Watkins (2016) highlight the role of physical attractiveness. Serman and Sims (2020) find that social attractiveness mediates consumer attitudes and intentions, reinforcing attractiveness as a significant influencer attribute. Sakib et al. (2020) note the positive effect of influencers' ability to evoke strong feelings, which Frah and Siew (2021) support by showing that both positive and negative comments influence consumer decision- making. 2.3.3 Perceived Loyalty and Consumer Behaviour The impact of social media influencers on brand image, self-concept, and purchase intention was investigated by Atika et al. (2019). The study used descriptive methods and used 219 questionnaires to gather primary data. Data analysis was done using structural equation modeling and descriptive modeling. The study's findings showed that while there was a positive significant relationship between social media influencer and brand image, there was an inverse significant influence of both self-concept and social media influencer on purchase intention. The study may have considered documenting exploratory factor analysis prior to structural equation modelling. Zehra and Julian (2022) studied the social credibility theory through social media posting during COVID 19. Using a cross-sectional research methodology, 449 questionnaires were distributed to gather primary data for the study. For data analysis, structural equation modeling and descriptive statistics were used. The study's findings showed that credibility was positively impacted by reputation and trustworthiness, but expertise and promotional incentives had no discernible impact on credibility. Additionally, the study showed that the relationship between loyalty and credibility was mediated by the sharing of unverified information. Since the study was carried out in the service industry unlike multinationals that operate in different sectors there is a need for consideration of drawing data from alternative sectors so as to respond to existing contextual gaps. Habibi and Mevdi (2022) assessed the mediating role of electronic word-of-mouth marketing in the Iranian Jabama corporation in order to determine the impact of perceived value on customer 22 value. The study used a descriptive research approach and distributed 200 questionnaires to gather primary data. Descriptive and structural equation modeling analyzed the data. Results of the study depicted that perceived word of mouth has a positive statistically significant effect on customer value. Moreover, the impact of perceived value on customer value was positively mediated by electronic word-of-mouth marketing. The impact of perceived risk and perceived value on customer satisfaction and loyalty among Bukalap users was investigated by Khasbulloh and Gede (2022). 108 questionnaires were distributed in order to collect primary data for the descriptive study design. Structural equation modeling analyzed the data. Results of the study depicted that perceived risk has an inverse effect while perceived value has positive statistically significant effect on customer loyalty and customer satisfaction. There is a population gap because the study never took social media influencers into account. Anchal (2023) investigated how social media affects the preferences and behavior of consumers. The study used a descriptive research methodology and used questionnaires to collect primary data. Descriptive and inferential statistics analyzed the data. 88% reported that social media increased brand exposure amongst those aged between 18 to 24 years. Social media enhanced social proof since 70% of respondents agreed that they trusted internet review and evaluations from social media comments. Instagram availed an opportunity for evaluation of likes and comments of respective brands. The dominant social media platform was reported to be you-tube (73%) followed by face-book that accounted for 69% and Instagram at 40%. Further, 48% of respondents reported that they perceived companies that responded to enquiries in the social media as trustworthy and 79% argued that their purchasing decision was dependent on user generated contents. 80% reported that they can make purchase decisions through personalized experiences. The study may have considered incorporating inferential statistics so as to minimize the likelihood of making skewed judgments. 23 2.4 Research Gaps Table 2.1 Summary of Literature Gaps Author(s) Title Findings Research Gaps Zhou & Jin (2023) "The Efficacy of Social Media Influencers: Metrics and Measurements" Using brand influencers increases view-through rates by 193%, and 35% of users learn about products from influencers. The study conducted a need for longitudinal studies on the sustained impact of influencers on consumer behavior and brand loyalty. The current study examines the specific impacts of perceived expertise, trustworthiness, and loyalty of influencers on consumer behavior, aiming to provide a more detailed understanding of these attributes in the context of the cosmetics industry. Simiyu (2021) "Influence of Social Media on Consumer Behavior" SMIs significantly influence consumer behavior. The study provided a detailed analysis of the underlying psychological mechanisms of influencer impact on consumer decision-making. The current study focuses on the psychological constructs such as perceived expertise, trustworthiness, and loyalty, and their effects on consumer purchase intention, perceived value, and satisfaction. Schouten & Verspaget (2020) "Under the Influence: The Downsides of Influencer Marketing" Influencer fatigue and authenticity crisis are emerging issues. The study investigated long-term impacts of influencer fatigue and strategies to mitigate negative perceptions. The current study includes authenticity indirectly by focusing on perceived trustworthiness and loyalty, which contribute to an influencer's overall authenticity in the eyes of consumers. Audrezet et al. (2020) "Authenticity under Threat: When Social Media Influencers Need to Consumers are more influenced by genuine and relatable content. The study emphasized the need for empirical studies on how influencers can maintain authenticity while engaging in commercial activities. The current study distinctly examines perceived expertise, 24 Author(s) Title Findings Research Gaps Go Beyond Self- presentation" trustworthiness, and loyalty as separate attributes to understand their individual and combined effects on consumer behavior. Djafarova & Rushworth (2017) "Exploring the Credibility of Social Media Influencers and Its Impact on Consumers’ Purchase Intentions" Credibility impacts followers' purchase intentions, but often conflates trustworthiness and expertise. The study only gives a differentiation between the impacts of trustworthiness and expertise on consumer behavior. The current study distinctly examines perceived expertise, trustworthiness, and loyalty as separate attributes to understand their individual and combined effects on consumer behavior. Lee & Watkins (2016) "YouTube Vlogs as a Source of Information on Beauty and Lifestyle Products" Physical beauty of influencers encourages consumer behavior towards endorsed brands. The study investigated how influencers' non-physical attributes affect consumer behavior in the beauty and lifestyle sectors. The current study includes both physical and non-physical attributes (expertise, trustworthiness, loyalty) to provide a comprehensive view of how these characteristics influence consumer behavior in the cosmetics industry. 2.5 Conceptual Framework This diagram illustrates the relationship between the variables being studied. The current study postulates that social media influencer attributes influence consumer behaviour. Social media influencer attributes are conceptualized as perceived expertise, perceived trustworthiness, perceived loyalty and unverified information sharing. Consumer behaviour was operationalized as perception of value, purchase intention and satisfaction. Perceived expertise was operationalized as authoritative, informative and knowledgeable. Perceived trustworthiness was measured as social proof, endorsement and attractiveness. Perceived loyalty will be measured as multiple products like, customer churn and customer lifetime value. The hypothesized relationship is as shown in Figure 2.1. 25 Independent Variables Dependent Variable Figure 2.1 Conceptual Framework The aim of the study was to determine the relationship between social media influencer attributes and consumer behaviour in cosmetic multinational firms in Nairobi County. The study variables were operationalized as shown below. Perceived Expertise • Authoritative • Informative • Knowledgeable Perceived Trustworthiness • Social Proof • Endorsement • Attractive Consumer Behaviour • Perception of value • Purchase intention • Satisfaction Perceived Loyalty • Multiple products like • Customer churn • Customer lifetime value 26 Table 2.2 Operationalization of variables 2.6 Chapter Summary The foregoing chapter presents the empirical and theoretical review. The study was anchored on social influence and source credibility theory. The study conceptualized that social media influencer attributes affects consumer behaviour. Variable Type Indicators Measurement Source Perceived Expertise Independent variable • Knowledge • Skill level • Qualifications • Experience 5-point Likert Quantitative analysis Lou & Yuan (2019); Hovland et al. (1953) Perceived Trustworthiness Independent variable • Honesty • Reliability • Integrity 5-point Likert Quantitative analysis Djafarova & Rushworth (2017); Hovland et al. (1953) Perceived Loyalty Independent variable • Repeated interactions • Sustained interest • Consistent support 5-point Likert Quantitative analysis Evans et al. (2017); Oliver (1999) Consumer behaviour Depenedent Variable • Perception of value • Purchase Intention • Satisfaction 5-point Likert Quantitative analysis Kotler & Keller (2016); Schiffman & Kanuk (2000) 27 CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction A thorough examination of research design, study area, population, sample, data collection techniques and procedures, data validity and reliability, data analysis and presentation, and ethical considerations are presented in this chapter. 3.2 Research Philosophy Research philosophy is deemed to be a framework stipulating how data can be gathered and processed in response to research questions (Saunders, Lewis & Thornhill, 2014). It can be perceived to be the source of the methodological foundation that avails minimize variations and hastens understanding of empirical issues under examination (Sekeran & Bougie, 2013). According to Creswell (2014), there are four different research philosophies, namely positivism, constructivism, critical realism and pragmatism. Positivism research philosophy alludes that reality will always be stable, observable and be easily described in an objective point of view (Saunders et al., 2014). It is mostly applicable when issues under examination can be observed repetitively and notable differences avails information of elements under examination (Sekaran & Bougie, 2013). Though, applicable is social sciences it is not void of short comings since it relies on past predictions, but some may have had unmeasurable attributes. Interpretivism argues that to fully comprehend the research under interest then there is need for subjective interpretation. In this situation, the study ought to be carried out in nature settings where research implementers have no capacity to influence attributes under examination (Bryman & Bell, 2015). The current study adopted positivism research philosophy. Positivism was applied since the researcher aimed at collecting quantitative data to respond to research questions. 28 3.3 Research Design The step-by-step guideline stipulating how a research study is undertaken to attain study objectives is known as research design (Sekaran & Bougie, 2013; Saunders et al., 2014). Research design’s choice is pegged on research problem, resources endowment, study motivation and research ethics compliance (Sekaran & Bougie, 2013). This study adopted descriptive research design. The basic tenet of descriptive research is description of research phenomena in aspects such as what, where and how (Sekaran & Bougie, 2013). Descriptive research examined the events that lead to inferences and relationships between variables. Hence, it was vital in this study to identify the relationship between the research variables. Further, the design allowed for the examination of the study variables in its natural state with minimal interference. 3.4 Target Population The study population refers to all constituents of any clearly described group of people, events, or objects who are the focus of an investigation (Patten & Newhart, 2017). The focus of this research was 75 multinational cosmetic companies within Nairobi who are registered with the Kenya Chamber of Commerce (KNCCI, 2023). The unit of observation for this study consisted of the 75 multinational cosmetic companies operating in Nairobi (See Appendix VII). These companies have been selected based on their significant market presence and influence within the Kenyan cosmetic industry. The focus on multinational companies is motivated by their extensive reach and diverse consumer base, which provide a robust framework for understanding consumer behavior and preferences in the cosmetic sector. While the population of interest is the multinational cosmetic firms, data collection from customers allowed the researcher to gain insights into consumer behavior, perceptions, and preferences. Customers are the end-users of cosmetic products, and their opinions and experiences are valuable for understanding market trends and making strategic decisions (Lou & Yuan, 2019). Therefore, the unit of analysis in this study was comprised of 5 consumers from each of the 75 selected multinational cosmetic companies, resulting in a total of 375 individual consumers. While it may not have been feasible to survey all customers of each firm due to time and resource constraints, selecting 5 customers from each firm provided a representative sample that reflects the overall customer base. This sample size strikes a balance between obtaining sufficient data for analysis 29 and managing practical limitations. These consumers represent a diverse demographic cross- section, including variations in age, gender, socio-economic status. The selection of these consumers aims to capture a broad perspective on the consumption patterns, brand loyalty, and satisfaction levels associated with multinational cosmetic products. 3.5 Sample Size and Sampling Technique A sampling design is a process of developing a plan in which elements of interest are selected (Bloomfield & Fisher, 2019). The design outlines the probability of developing a reliable sample that is related to a population (Leavy, 2017). The sampling design consists of the sampling technique, the sample frame, and the sample size. The purpose of the sampling technique is to outline a process that was used to collect data that enables the researcher to make conclusions about the research population (Ghauri, Grønhaug, & Strange, 2020). The study was based on descriptive research design and positivism research philosophy. In this study the target population were cosmetic multinational firms operating in Nairobi. Systematic sampling will be used to select the consumers from each company. This technique ensures that the sample is spread evenly across the entire population, reducing the likelihood of bias. Therefore, each member of the population has a known chance of participating in the study (Creswell & Clark, 2017). According to Leavy (2017), when choosing a sample frame, one must consider the composition of the sample, the representativeness of the sample, and the size of the sample. The sample frame for this study was limited to 5 consumers of each of the 75 cosmetic multinational companies operating in Nairobi County. Selecting 5 customers from each firm was logistically feasible and manageable within the scope of the study. It allowed the researcher to collect a substantial amount of data while ensuring data quality and thoroughness in the analysis process. The sample size should be based on a general representation of a sample population (Bloomfield & Fisher, 2019). It is vital to select a sample size that provides accurate results and identifies differences. The selected sample size should give adequate power to the results of the study (Ghauri, Grønhaug, & Strange, 2020). The sample size for the research was computed as below: Sample size per company = 5 consumers Number of companies = 75 Total sample size = Sample size per company × Number of companies 30 = 5 consumers/company × 75 companies = 375 consumers So, the sample size for this study is 375 consumers. 3.6 Data Collection Instruments According to Saunders et al. (2014), instruments are the tools that was used to collect data and the methods by which they were created. The strength of questionnaires in social science studies is based on its degrees to sustain confidentiality, save time and is rarely faced with distribution logistical challenges because one can administer them online (Sekaran & Bougie, 2013; Saunders et al., 2014). Furthermore, Crewell (2014) supported questionnaires because they portray convenience for both researcher and respondent, therefore the researcher has high chances of gathering truth information and knowledge. Secondly, it is the best research tool for those researchers who are faced by budgetary and time constraints. 3.7 Data Collection Procedures A research procedure outlines the process that was followed to collect information about a research study (Bloomfield & Fisher, 2019). The research procedure of this study includes the development of a questionnaire that was reviewed and approved for distribution by the supervisor. This tool was designed to capture relevant data related to consumer behavior, perceptions, and preferences regarding multinational cosmetic products. Further, the study obtained any relevant approval from Strathmore University Ethic review committee, and it was used to seek research permit from National Commission for Science Technology and Innovation (NACOSTI). Additionally, hiring and training a research assistant was carried out. To achieve optimal efficiency and response rate, either the drop and pick method or self-administered questionnaires was used. The research agent was stationed at selected multinational cosmetic outlets within shopping malls across Nairobi County and the CBD. These outlets were chosen based on their popularity and representation of the target multinational cosmetic firms. As customers exited these outlets, the research agent identified potential respondents who had made purchases or visited the outlets. Upon identifying potential respondents, the research agent approached them and administered the questionnaire. The respondents were asked to complete the questionnaire on-site, providing their 31 responses to the questions included. The research agent played a crucial role in facilitating the data collection process. He aided the respondents, clarifying any questions or concerns they had about the questionnaire. Additionally, the agents ensured that respondents understood the purpose of the study and the confidentiality of their responses. After the respondents completed the questionnaire, they returned the completed documents to the research agent. The research agent then collected the completed questionnaires and ensured their safekeeping until the data collection process was concluded. Throughout the data collection process, quality control measures were implemented to ensure the accuracy and reliability of the gathered data. The research agent monitored the completeness and consistency of the responses, addressing any discrepancies or issues that arose during the administration of the questionnaire. 3.8 Research Quality The research conducted a pre-test of the study instrument with 10% of the study sample of 39 consumers of cosmetic products that were not included in the final research. The pilot test was vital to examining the reliability tests of the research instrument. Further, through the pre-test, the study tests for the validity of the instrument using the content validity and construct validity approach. This sample was appropriate since Sekaran and Bougie (2013) averted that a sample of ten percent of the actual study sample is appropriate for piloting the research instruments. 3.8.1 Reliability of Instrument Reliability is the extent to which a measure consistently produces similar results over time, in running several tests at different instances. This is also viewed as the consistency and stability of a measurement over time (Drost, 2011). Test-retest, parallel reliability, alternative forms, inter- rater, split-half, and internal consistency are among the tests used to determine reliability (Trochim, 2006). While test-retest includes giving the same exam twice, parallel reliability tests the same construct using two different copies of the assessment. Internal consistency measures the extent to which various assessments that probe the same construct yield comparable results, while inter-rater reliability measures the degree of agreement between raters (Lameck, 2013). The Cronbach Alpha coefficient, which has a range of 0 to 1, will be used to assess reliability. If it is 32 greater than 0.7, the research instrument is considered reliable. The reliability results in Table 3.1 depicts that the research tool was reliable with a minimum Cronbach Alpha of 0.772 and maximum of 0.812. Table 3.1 Reliability Analysis Variables Number of items Cronbach’s Alpha Comments Perceived expertise 10 0.812 Accepted Perceived trustworthiness 8 0.804 Accepted Perceived loyalty 7 0.772 Accepted Consumer behaviour 7 0.779 Accepted 3.8.2 Validity of Instrument According to Drost (2011), research validity refers to how useful a test is in measuring the things it was designed to evaluate, which can include internal, external, construct, or discriminant variables. According to Zohrabi (2013), internal validity refers to a research instrument's capacity to measure the things it is intended to measure, whereas external validity is the ability of data to be generalized. The degree to which scores on one scale correlate with those on other scales intended to measure the same construct is known as convergent validity. According to Lameck (2013), discriminant validity presupposes that the scale's scores do not correlate with those of other measures meant to measure distinct constructs. Validity in this study was assessed by determining whether the findings can be applied to all Kenyan county governments (Zohrabi, 2013). Supervisor input and remarks were taken into account throughout evaluation. 3.9 Data Analysis and Presentation Data analysis is the process of inspecting information for decision-making to draw a conclusion on the research questions (Bloomfield & Fisher, 2019). This study employed a quantitative data analysis method. Data collected using questionnaires was counter checked for completeness, coded and entered into Microsoft Access. It was cleaned and then exported to SPSS version 24. The study used both descriptive and inferential analysis. The descriptive analysis included frequency, percentages, a mean, and standard deviation, which analyses the participant's 33 characteristics and dominant patterns generated from the data. The study applied the following diagnostic checks, normality tests, collinearity tests and heteroscedasticity tests. The inferential analysis examined the use of regression analysis and correlation tests in determining the magnitude of the relationship and direction of the association, respectively. The analysed research data was presented using graphs, and tables. Multiple regression model used in this study is given as; Y= α + β1X1 + β2X2 + β3X3 + ε………………….………………...Equation 3.1 Y= Consumer behaviour; 𝛼 = constant; β1… β3= the slope; 𝑥1=Perceived expertise; 𝑥2= Perceived trustworthiness; 𝑥3= Perceived loyalty; and ε = error term. 3.10 Diagnostic Tests 3.10.1 Multicollinearity Test There is a strong link between independent variables and multicollinearity. This research employed Variance Inflation Factor (VIF) values to assess multicollinearity. To test for multicollinearity, tolerance limits was also employed. Baltagi (2005) asserts that multicollinearity exists when the variance in functions (VIF) exceeds 10 and when the tolerance limit is less than 0.1. 3.10.2 Heteroskedasticity Test Homoscedasticity is the fourth presumption made by the multiple linear regression analysis. Heteroscedasticity was tested using the Breusch Pagan Test. To determine whether there are significant differences between the samples, the multiple linear regression test divides the data into high and low values. 3.10.3 Normality Test The normalcy test was conducted using the histogram. The data may not be normally distributed if the p value is less than 0.05; otherwise, it is not normal. For the histogram normally distributed ought to have a mean of zero and standard deviation of 1. Normally distributed data ought to be bell shaped. 34 3.11 Diagnostics Tests Results Regression diagnostics tests were carried out prior to regression modelling. 3.11.1 Multicollinearity Test Multicollinearity test was carried out using variance inflation factors and tolerance limits. Results in Table 3.2 depicts the highest VIF was 3.64 and the least 1.87 a clear indication there was no multicollinearity. Table 3.2 Multicollinearity Test Collinearity Statistics Tolerance VIF Perceived Expertise 0.34 2.91 Perceived Trustworthiness 0.28 3.64 Perceived Loyalty 0.53 1.87 3.11.2 Heteroskedasticity Test Heteroskedasticity was carried out to examine the uniformity of variance among the error term. Results in Table 3.3 depicts that there was no enough evidence to warrant rejection of null hypothesis since the p value was greater than 0.05. Thus, it can be concluded that there was uniformity of variance of the error term. Table 3.3 Heteroskedasticity Test F statistics P value Breusch Pagan Test 32.54 0.0000 3.11.3 Normality Test Pictorial presentation in Figure 3.1 depicts that the error term was normally distributed with mean 0 and standard deviation of 1. Thus, there was no need to carry out data transformation prior to modelling. 35 Figure 3.1 Normality Test 3.12 Ethical Considerations In social science research ethics refers to a code of conduct or expected societal norm of behaviour while conducting research (Sekaran & Bougie, 2010). Moreover, Saunders et al., (2014) averred that ethical issues cannot be ignored in all research stages. Respondents ought to be allowed to withdraw from the study at any given time, their confidentiality must be protected, none of them ought to be exposed to stressful situations upon participation in data collection, respondents ought to be assured that their data will not be analyzed to contribute to other issues beyond academic objectives. Although different stakeholders are expected to benefit from the study, they ought to draw their benefits from processed data and not its raw form. In this study approval was sought both from Strathmore University School Ethical Review committee and the NACOSTI. These research approvals and permits were presented to human resources departments of respective cosmetic multinationals. 36 3.13 Chapter Summary The foregoing chapter has presented research philosophy, research design, sample size and sampling procedures, data collection instruments and data collection procedures and data processing and analysis as well ethical considerations. 37 CHAPTER FOUR FINDINGS AND INTERPRETATIONS 4.1 Introduction In this section data analysis, findings and interpretations will be presented. The study adopted descriptive statistics that include frequency, percentages, mean and standard deviation. Spearman’s rank correlation and multiple regression analysis. Before regression analysis diagnostic tests are presented on multicollinearity, heteroskedasticity and normality. 4.2 Response Rate The response rate for the current study was 81% whereby out of 375 questionnaires administered 303 were correctly filled and returned. The response rate was attributed to adoption of drop and pick and self-administration of questionnaires with aid of research assistant upon customers as their exited from different multinationals outlets dealing with cosmetics. Table 4.1 Response Rate Questionnaires Frequency Percentage Issued and completely filled 303 81 Not returned 72 19 Total 375 100 4.3 Demographic Information Study findings on the background of respondents was summarized using frequencies and percentages as tabulated in Table 4.2. It was found that 69.3% of the respondents were female while 30.7% were male a clear indication that cosmetic products were more attractive to females. On the age distribution 11.9% aged 30 years and below, 29% aged between 31 to 34 years and 48.5% aged between 35 to 40 years a clear indication that most of those who aged below 40 years 38 had preference for multinational cosmetic products. Concerning the level of education attained 40.9% had diploma qualifications, 25.4% had bachelor’s degree and 28.7% had certificate. On the years of experience with the products 46.2% had used the products for at most 10 years, followed by 28.1% who had used them for a period of 1 to 5 years and 19.5% had used for less than 1 year. This depicts that there were those who had used cosmetic products for a longer period while others were new entrants. Table 4.2 Demographic Information N % Gender Male 93 30.7% Female 210 69.3% Age Below 30 years 36 11.9% 31 - 34 years 88 29.0% 35 – 40 years 147 48.5% 41 – 44 years 30 9.9% 45 – 50 years 2 0.7% Highest level of education Certificate 87 28.7% Diploma 124 40.9% Bachelor’s Degree 77 25.4% Post graduate 15 5.0% Years of experience Less than 1 year 59 19.5% 1-5 years 85 28.1% 6-10 years 140 46.2% Over 10 years 19 6.3% 4.4 Descriptive Statistics on Perceived Expertise The first objective of the study examined the influence of perceived expertise on consumer beha