PACIS 2021 Proceedings

Paper Type

FP

Paper Number

362

Abstract

With the growing use of brand-related user-generated content on Instagram, influencer advertising becomes more popular. Due to the lack of clear and detailed regulations concerning the disclosure of sponsorship in social media, some ethical and legal questions have emerged within influencer marketing. To shed light on potential influences on regulations on economic outcomes, we conducted a between-subject study (N=441) with four experimental conditions in order to investigate the effect of Instagram-based influencer posts on consumer behavior outcomes (e.g., credibility perceptions, purchase intention, consumer brand attitudes, and the attitude towards influencer). Moreover, we investigated whether and how the parasocial relationship (followers vs. non-followers) differentiates consumers’ responses to sponsorship disclosures. This paper thus contributes to consumers’ information procession on social media, and we derive practical implications for three key entities involved in influencer marketing: brands, influencers, and their followers.

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