University of Kassel

Faculty of Economics and Management

DMCC – Dialog Marketing Competence Center

Prof. Dr. Ralf Wagner

Master Thesis Exposé

____________________________________________________

Influencer Marketing for Luxury Brands –

Implications of Parasocial Relations on Luxury Brand Perception

Submitted by: Laura Mareen Möller

Motzstraße 6

34117 Kassel

laura.mareen@gmail.com

Business Studies

Kassel,

19th October 2017

I

Abstract

Keywords

Social Media Marketing – Influencer Marketing– Luxury Marketing – Parasocial Interaction –

Parasocial Relation – Luxury Brand Perception

Background

Today, the use of social media cannot be neglected by many companies or brands. However, the

implementation of social media marketing can be particularly challenging for luxury brands, since

they have to maintain the image of exclusivity on a platform of mass access. A promising strategy for

these brands to practice a successful image and relationship building is the use of influencer

marketing. It is considered to be an authentic, intuitive and genuine communication, whose impact is

a result of parasocial interactions between media consumer and influencer.

Purpose

This study aims to fill a research gap concerning opinion leaders on image-sharing platforms. The

purpose is to find out if influencer marketing via Instagram leads to a parasocial relation between

media user and media personality. Moreover, the study seeks to analyse if this relation has an impact

on consumers’ perception of luxury brands and their buying intention towards luxe labels.

Method

The incurrence of parasocial relationships between media consumer and influencers and the impact

of this relation on consumers luxury brand perception will be surveyed in an empirical study. Relevant

concepts and research hypotheses will be developed by a first desk research on existing literature,

before an online survey will be conducted and displayed among users and non-users of Instagram,

respectively among followers and non-followers of selected social media influencers. To gather a

sufficient number of participants, the survey will be distributed in online forums, on social media sites

and in the personal circle of acquaintances of the author. The collected data will be evaluation using

structural equation modelling.

II

Table of Content

Abstract .................................................................................................................................................. I

Table of Content .................................................................................................................................. II

List of Figures ..................................................................................................................................... III

List of Tables ...................................................................................................................................... III

List of Abbreviations .......................................................................................................................... III

1 Introduction ................................................................................................................................... 1

1.1 Background ............................................................................................................................ 1

1.2 Purpose and Contribution ...................................................................................................... 2

1.3 Structure ................................................................................................................................. 2

2 Theoretical Background ................................................................................................................ 3

2.1 Forms and Perspectives of Social Media Marketing ............................................................. 3

2.1.1 Influencer Marketing ...................................................................................................... 4

2.1.2 Instagram ........................................................................................................................ 6

2.2 Luxury Brand Marketing in Social Media ............................................................................. 7

2.2.1 Defining Luxury ............................................................................................................. 7

2.2.2 Luxury Marketing in Social Media ................................................................................ 8

2.3 Concepts of Parasocial Interactions and Parasocial Relationships ........................................ 9

2.3.1 Characterisation and Distinction .................................................................................... 9

2.3.2 Parasocial Relations in Online Environments ................................................................ 9

3 Literature Review ........................................................................................................................ 11

4 Research Design .......................................................................................................................... 15

4.1 Research Question & Hypotheses ........................................................................................ 15

4.2 Methodology ........................................................................................................................ 19

4.2.1 Selection of Influencers & Brand ................................................................................. 19

4.2.2 Operationalization of Constructs .................................................................................. 20

4.2.3 Data Collection and Analyzation .................................................................................. 21

4.2.4 Sample Requirements ................................................................................................... 22

5 Preliminary Structure .................................................................................................................. 23

6 Schedule ...................................................................................................................................... 24

7 References ................................................................................................................................... VI

III

List of Figures

Figure 1: Research model by Lee & Watkins (2016, p. 5755) ........................................................... 16

Figure 2: Research model by Xiang et al. (2016, p. 335) ................................................................... 16

Figure 3: Research model ................................................................................................................... 19

List of Tables

Table 1: Literature review .................................................................................................................. 11

Table 2: Systemization of hypotheses ................................................................................................ 18

Table 3: Selection of influencer.......................................................................................................... 20

List of Abbreviations

e. g. exempli gratia; example given

UCG User Generated Content

PSI Parasocial Interaction

PSR Parasocial Relationship

SEM Structural Equation Model

UCG User Generated Content

1

1 Introduction

1.1 Background

For many users of social media Facebook, YouTube or Instagram do not longer only serve as

communication platforms, but as a repository of trends and source of inspirations. More precisely,

many users seek ‘advice’ regarding their next purchase from the social media community, especially

their friends. A study from Nielsen revealed that over 92% of consumers trust recommendations of

friends over any other form of advertising (The Nielsen Company, 2015).

The growing importance of social media channels has led to a power shift and has put power in the

hands of various stakeholders of social media channels, like bloggers and customers (Dubois, 2017).

An emergent marketing strategy that seizes upon this issue is influencer marketing. With this strategy,

brands and people with a high reach or certain status on social media – so-called influencers -

cooperate to benefit from mutual value. For brands it is an effective way to quickly gain a large and

qualitative social media coverage in their specific target group (Marwick, 2015). Compared to other

forms on advertising on social media, influencer marketing is rather intuitive, authentic and reaches

the consumer on a more personal level (Uzunoğlu & Misci Kip, 2014). Reasons for that are, that the

brand content is user generated and embedded in a genuine context. Moreover, media users have

already come to trust with the influencer through the suggestion of a cordial relation by the

influencer’s display of her or his every-day-life.

The theoretical foundation for this issue is found in the theory of parasocial interaction, which is

considered as the interpersonal involvement of a media user with the consumed subject (Rubin, Perse

& Powell 1985). Former only a phenomenon of mass broadcast media, parasocial interactions now

gain a new quality due to the emerge of social media. Parasocial interactions help to build up and

preserve intimate relationship between consumer, influencer and brand and therefore are considered

to be a relevant aspect for relationship marketing (Labrecque, 2014; Lee & Watkins, 2016).

Especially for luxe labels, marketing in social media is a demanding task, since they must upkeep the

image of exclusivity and desire on a platform of mass access. Therefore, the application of influencer

marketing and the associated parasocial interactions seem to be particularly worthwhile for luxury

brands.

2

1.2 Purpose and Contribution

Research on use of social media and especially influencer marketing for luxury brands is still limited

(Labrecque, 2014; Lee & Watkins, 2016). This study’s aim is to narrow this gap by investigating the

potential of social media influencers as luxury brand ambassadors. In this course, the impact of

parasocial interactions shall be surveyed. The purpose is to get a better understanding of mediating

variables on consumers’ luxury brands perception. Specifically, the effects of parasocial relations on

consumers luxury brand perception and buying intention shall be investigated. To close the research

gap, the popular image sharing platform Instagram and its users will be objects of this study.

1.3 Structure

First, the theoretical background regarding social media marketing and influencer marketing, as a

particular manifestation, will be outlined. Next, the characteristics of luxury and luxury marketing in

social media will be demonstrated. Within the context of influencer marketing, the underlying theory

of parasocial interactions is introduced and interferences of former research will be presented. Second,

the approach of this primary research will be suggested. The design of this study will be outlined and

research questions as well as hypotheses will be drawn. Subsequently, the methodology of this

research will be explained.

3

2 Theoretical Background

2.1 Forms and Perspectives of Social Media Marketing

The range of social media sites is already vast and still growing. These online platforms aim to

facilitate interactions, collaborations and the sharing of content in a digital environment. They offer a

two-way communication that allows users to interact by sharing information and opinions online.

Through-out the years social media channels have evolved and now take a variety of forms such as

blogs, social networking sites and content communities (Kim & Ko, 2012; Smith, Fischer & Yongjian,

2012).

According to recently published figures of ‘We Are Social’, a global agency for digital

communication, two billion internet users are currently active or passive consumers of social media.

In the U.S. already 90% of the 18- to 29 year olds, a generation holding great purchasing power, are

active on social media (We are Social, 2017). According to the Global Web Index, users spend 1,72

hours per day on social networks, making up 30% of the time spend online in 2014 (Global Web Index

2017). Expectations are that these figures will continue to rise with the increase of mobile internet

usage (ibid.).

Marketers try to benefit from this trend, and constantly increase their spending on social media

marketing, which is expected to make up 21.4% of marketing budgets by 2019 (VanMeter, Grisaffe

& Chonko, 2015). However, it is not only the growing audience that has convinced companies to

increase online marketing activities, but the power of influence that lies within this digital society.

According to Labrecque (2014, p. 134) “social media give marketers a means for direct interaction,

which constitutes an ideal environment for creating brand communities […], establishing and

reinforcing relationships, and for gaining a better understanding of consumers [...].”

Besides their own advertising activities, companies and their brands can become part of other users

streams of content. Such user-generated content (UGC) is an important means of expression and

communication within the online community. Since a large part of UGC within the diverse social

media landscapes is brand-related, e. g. by including product information, reviews or

recommendations, it has the potential to shape consumer brand perception and brand choice (Smith,

Fischer & Yongjian, 2012; Lee & Watkins, 2016 ; Dubois 2017).

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A way for marketers to adapt to this phenomenon is to include personalities, who function as so called

“digital influencers” in their brand communication.

2.1.1 Influencer Marketing

Influencer Marketing is an upcoming social media marketing approach, that can broadly be compared

to the use of testimonials. Influencer marketing focuses on opinion leaders of the digital world, who,

primarily due to their visibility and reach in social media, function as a guarantor for publicity. The

term ‘influencer’ however, does not include every individual with a significant number of social media

fans. Uzunoğlu and Misci Kip (2014) claim that, to be considered an influencer, the social media

person must offer expertise on a certain subject, be related to specific brands and have the ability and

network to affect the behaviour and attitudes of others.

Opinion leaders in social media can have different professional backgrounds. A considerable part

transfers their fame and fanbase from their original profession to their social media channels, where

they give a closer insight into their day-to-day lives. Such people are for instance the German model

Stefanie Giesinger (2.7 Mio. followers on Instagram) (Instagram/stefaniegiesinger, 2017) or the

German singer Lena Meyer-Landruth (1,6 Mio followers on Instagram) (Instagram/lenas_view,

2017). On the other side are ‘regular’, non-celebrity people like the German Caro Daur (1,2 Mio

followers on Instagram) or Italian Chiara Ferragni (9 Mio. followers on Instagram)

(Instagram/chiaraferragni, 2017). Ferragni has started her career with her personal fashion blog (The

Blond Salad, 2017) and now works full-time in social media, making a living through advertising and

cooperation with brands. For most of these people, their blogs form the basis of their work. However,

the usage of microblogging tools like, Facebook, Instagram and Twitter is inevitable to maintain a

daily and instant contact with their community.

Influencers can be found in almost any industry, e. g. tourism and travel, parenting and DIY, video

gaming and technology, fitness and food, fashion and beauty. Many consider themselves as “lifestyle

bloggers” and feature a mixture of these categories on their social media accounts (Gondorf, 2015).

Marketers pursue influencer marketing by approaching opinion leaders, who then incorporate their

brand, product or service in their social media posts. The corporation can differ in its intensity,

depending on brand communication objectives, target audiences and message content. A common

implementation is to supply influencers with product samples or inviting them to a brand related event.

In return, but on often a voluntary basis, the influencer is expected to embed the product, service or

5

brand in their social media appearance. Other corporations between influencers and brands are

stipulated by contract. The influencer is paid for each post with the particular product or service. In

this case, the influencer is mostly restricted in his creativity to report about the product or service by

demands of the company and brand, and at the same time is obliged to disclose the post as sponsored

or paid (Woods, 2016).

An example for a world-wide noticed collaboration of influencers and a luxury brand, has been the

millennial influencer walk of Dolce & Gabbana. In an effort to reach out to a socially-driven market,

Dolce & Gabbana casted primarily non-models, including social media influencers to walk their ‘fall

2017’ show in self-selected outfits (VOGUE, 2017). The German blogger and influencer Caro Daur

was one of the cast members (Instagram/carodaur, 2017). She documented this event extensively on

her Instagram account, tagging her content with a caption and content referring to Dolce & Gabbana

and the event. During the campaign Daur’s posts have generated over 300.000 likes. The Designer,

Stefano Gabbana, explained their choice of models by highlighting the representative status of

influencers for an entire generation. By bonding with these spokespersons, they try to get a better

understanding for the favours of their younger audience (VOGUE, 2017).

Influencers mediate communication between companies and consumers, resulting in considerable

benefits for marketers. Instead of approaching a wide mass on consumers, companies must only reach

few opinion leaders who appeal their target group. The Influencer will ‘spread the word’ and, in

addition, enhance the product or service with their approval. In their study concerning brand

communication through digital influencers Uzunoğlu & Kip (2014) show that influencers have a

central role in communicating and distributing innovations. Especially when it comes to the launch of

a new product or the introduction of an existing product to a new market, influencers can be the key

to quickly gain publicity at relatively low costs. Great benefits are the highly visible metrics of social

media success. Impressions – the number of followers of an account – or engagement – the number

of likes and shares of a post – can be easily and accurately measured, giving the marketer instant

feedback and control over their measure and encouraging influencers to actively foster their audience

(Uzunoğlu & Misci Kip, 2014).

Moreover, it is not only the rapid increase of brand awareness that makes working with influencer so

popular. Influencer marketing is more direct, more genuine and at a scale. It aims at the principle that

consumers look at fellow consumers to inform themselves about common trends. It is a form of virtual,

6

warm word-of-mouth-marketing, which greatest power lays in the embedding of commercial contents

in a natural context, since influencers are considered to be trustworthy and authentic consumers

(Uzunoğlu & Misci Kip, 2014). As Woods (2016) states, the blurring of lines between what is genuine

endorsement and what is a arranged engagement is what makes influencer marketing so powerful.

Moreover, on many social media platforms, the posts of influencers mingle with those of friends or

family members. They are presented in a steady stream of content that allows a further distinction

only on second glance. Hence, impressions of personal peer groups and public influencers blend. By

their self-display, the integration and documentation of personal experience offside any commercial

intentions, influencers provide their followers with ‘private’ insights of their day-to-day life. They

create the impression of being on cordial terms with their audience, aiming at the fact that users of

social media are more likely to positively perceive and react to messages that come from a trusted

personality over an advertisement (Woods, 2016).

2.1.2 Instagram

One social media channel that functions as a simple but effective platform for influencer marketing is

the photo-sharing platform Instagram. Instagram is a primarily mobile and image-driven application

that was launched in 2006 (Instagram, 2017). At this point of time over 400 Million people use

Instagram on a daily basis and over 1 Million brands are engaged (Instagram, 2017). Instagram is a

participatory media that promotes the posting of selective content. Besides the uploading of own

content, users can like, share and comment on other users uploads. Other than in Facebook for

instance, a unilateral following is possible. In October 2016 Instagram launched their new feature

‘Instagram Stories’, which allows instant video compilations that vanish after 24 hours.

The dynamics of Instagram and rapid growth of its community has soon enabled ‘regular people’ to

reach out to mass audiences, which in former times was only possible through broadcast media, and

thereby has been setting a precondition for the development of influencer marketing. Marwick (2015)

introduces the term ‘instafame’ as a condition of having a relatively high number of followers on this

platform. She further describes this status as a consequence of a strategically formulated profile, the

active reach out for followers and the revealing of personal information in order to ultimately increase

attention (ibid.).

The app itself focuses on imagery and aesthetics (Faßmann & Moss, 2016). Hence, it is a platform

that serves the modern branding, which is primarily characterized by emotions, feelings and non-

7

verbal impressions (Esch & Möll, 2005). Although it is possible for companies to publish

advertisement, the app is not used for direct advertisements in the first place. Instead, Instagram is a

location for creative and inspiring content, which is why marketers use Instagram primarily for content

marketing and storytelling (Faßmann & Moss, 2016). The emphasis on imagery offers brands the

opportunity of an emotional staging. Creative and well-acted-out posts are not perceived as

advertisement and, since the Instagram-community itself fosters aesthetic self-presentation, result in

a high identification of the audience with the featured brand. Moreover, users actively engage brand

content to strengthen their persona, as it is the case with social media influencers (ibid.). Because of

its aesthetic value and emotionality, Instagram provides sensorial experiences that permanently

positions the brand in consumer’s mind and supports the composition of a brand image (ibid.; Esch,

2005). These aspects illustrate that Instagram is not only a tool to increase brand awareness, beyond

that it, is an essential channel to maintain genuine relationship with customers, to build and position

a brand.

2.2 Luxury Brand Marketing in Social Media

One strategy for influencers is to concentrate on cooperation with luxury brands. Since this study

focuses on the impacts of such collaborations, the characteristics of luxury and its social media

marketing are demonstrated.

2.2.1 Defining Luxury

A basic definition of luxury comes from Heine (2011: 30), who states that luxury is “[…] anything

that is desirable and more than necessary and ordinary”. Urkmez and Wagner (2015: 20) adjoin and

define luxury as “an integrative term that arouses someone’s appetite and makes them envious of

others”. Heine (2011), as well as, Urkmez and Wagner (2015) highlight that luxury always depends

on perspective and is therefore a relative and subjective concept. However, luxury essentially comes

with certain characteristics like high quality and price, rarity an exclusivity, special aesthetics and

some kind of symbolic value (Lee & Watkins, 2016; Urkmez & Wagner; 2015). Okonkwo (2009)

notes that these characteristics and further aspects that are associated with luxury, like emotions,

originality and creativity, speak more to passion than reason. Consequently, luxury brands are

regarded as images in the minds of consumers which comprise associations about these characteristics

(Heine, 2011).

8

Common categories for luxury products and services are for instance: fashion, jewellery, cosmetics,

wine, automobile or tourism (Lee & Watkins, 2016). Especially fashion products are perceived by

consumers and scholars to have high aesthetics, high social and symbolic value (ibid.).

2.2.2 Luxury Marketing in Social Media

Research on how luxury brands use social media marketing is still limited (Lee & Watkins, 2016). A

reason for that is the initially conflicting notion of luxury marketing in an online environment. Central

features of the digital world, like a lack of physical contact, mass access and mass appeal regardless

of time and location seem to contradict the essential concept of luxury (Okonkwo, 2009). However,

the reality is that luxury is successfully positioned online and beyond that, luxury brands even take a

pioneering role in the use of social media (ibid.; Godey, et. al, 2016). Burberry, for instance, was one

of the first luxury fashion brands to successfully use social media marketing, resulting in an increase

of profits of 40% (Lee & Watkins, 2016; Dubois, 2017).

Kim and Ko (2012) and Godey et. al (2016) agree that luxury brands’ social media marketing efforts

involve five content dimensions: entertainment, interaction, customization, trendiness, and word of

mouth. If these dimensions are successfully developed, social media marketing has significate effects

on consumers’ favorable perception of the brand. As already mentioned in chapter 2.1.1 social media

should no longer be regarded as a way to reach consumers and enhance brand awareness, but in

addition it helps to intensify consumer relationships and serves as an cost-effective image-building

tool (Godey et al., 2016; Kim & Ko, 2012; Lee & Watkins, 2016).

Social media marketing is particularly important for premium brands as status associations emerge

from discussions of promising trends in the digital community (Dubois, 2017). More specifically,

luxury brand marketing in new media has been found to fuel consumers’ desire for luxury and

reinforces purchase intentions (Lee & Watkins, 2016). This in fact is striking, since the paradox that

lies in creating ‘desire’ and ‘exclusivity’ on “on the mass and classless Internet world” (Okonkwo,

2009: 304) is redressed. A possible explanation might be that social media channels like Instagram,

offer a visually appealing platform for the portraying of ‘the lifestyle of the rich and famous’.

Marwick (2015: 141) states that users like to devote themselves to content, which “they find

‘aspirational’: marketing jargon for something people desire to own but usually cannot”. Especially

the employment of influencers might help luxury brands to create content that awakens consumers’

desire, since these personalities appear as a like-minded person or even a trustworthy friend, who

9

random users emulate and strive to resemble. The psychological causes that support this assumption

will be discussed in the following chapters.

2.3 Concepts of Parasocial Interactions and Parasocial Relationships

2.3.1 Characterisation and Distinction

The concept of parasocial interactions (PSI) refer to the media users reactions towards a media

personality (Horton & Wohl, 1956; Rubin & Step, 2000; Labrecque, 2014; Ballantine & Martin, 2005;

Lee & Watkins, 2016; Yuan et al., 2016). As consumers of a media program become attached to

certain media characters, they perceive the performer as an intimate conversational partner and engage

in a interpersonal relationships with this person (Dibble et al., 2016; Yuan et al., 2016).

The notion emerged from the communications literature and has first been further described by Horton

and Wohl (1956). First research on PSI was limited to the context of traditional mass broadcast media,

such as radio and television. Horton and Wohl (1956) claim that media personalities often aim at

“breaking the fourth wall” and giving the illusion of a reciprocal relation, leading to the development

of a parasocial interactions or parasocial relationships (PSR) between media user and media

personality. Whereas PSI is restricted to a single contact situation, a PSR is considered to be a more

enduring relationship, that extends beyond this contact point (Dibble et al., 2016). In this case, an

interpersonal involvement is established in which the consumer approaches the persona as a “friend”,

seeking advice, guidance and comfort from him or her (Rubin et al., 1985; Labrecque, 2014).

Furthermore, Ballantine & Martin (2005) claim that characteristics of PSI and PSR resemble

interpersonal friendships, since they develop on a voluntary basis, provide companionship and are

driven by social attractiveness.

2.3.2 Parasocial Relations in Online Environments

With the emergence of social media as unmediated, direct and participatory media, scholars have

begun to regard PSR from a new perspective. PSR are no longer restricted to television and radio, but

receive another quality thorough communication in online environments, in which media consumer

and mediated persona interact on a closer level (Labrecque, 2014). Hence, Marwick notes (2015) that

social networks can transfer parasocial into potentially social interactions. However, although social

networks allow media users a closer, more genuine insight into the personal life of the media character,

the media person still controls reciprocation in their relation (Lee & Watkins, 2016). In their study on

YouTube personalities’ influence on consumer brand perception Lee & Watkins (2016) seize the

concept of a one-sided relationship in social media communication and apply PSR as a theoretical

10

framework to examine the relation between bloggers and their audience. A similar context is given by

the image and video sharing platform Instagram.

The setup of this social media channel offers a fast and easy access to the contents of “instafame”

personalities. Through features like ‘Instagram Stories’, followers can consume instant and

unmediated content of their favorite Instagrammer and start to get know them better day by day. As

in traditional media, the repeated exposure may elicit a similar feeling of relationship enhancement

by leading to the perception of trustworthiness and companionship.

11

3 Literature Review

Table 1: Literature review

Authors,

Year

Publication Title Topic Relevant Content

Heine, Klaus

(2011)

Dissertation,

Freie

Universität

Berlin

The Concept of

Luxury Brands

Luxury Brands Development of a

comprehensive

concept of luxury,

luxury as a relative

concept

Urkmez,

Taylan;

Wagner, Ralf

(2015)

Journal of

Euromarketing

Is Your Perception

of “Luxury”

Similar to Mine? A

Concept Made of

Absolute and

Relative Features

Luxury Brands Contribution to the

clarification of the

term luxury,

enhancement of

luxury as a relative

concept, further

defined by related

characteristics and

dimensions

Vigneron,

Franck;

Johnson,

Lester W.

(2004)

Journal of

Brand

Management

Measuring

Perceptions of

Brand Luxury

Luxury Brands Development of a

brand-luxury scale,

to measure the

perceived amount of

luxury contained in a

given brand

Kim, Angella

J.; Ko, Eunju

(2012)

Journal of

Business

Research

Do Social Media

Marketing

Activities Enhance

Customer Equity?

An empirical Study

of Luxury Fashion

Brand.

Social Media,

Luxury Brands,

Characterization of

luxury brands social

media activities and

their positive effects

on value equity,

relationship equity

and brand equity

Okonkwo,

Uché

(2009)

Journal of

Brand

Management

Sustaining the

Luxury Brand on

the Internet

Social Media

Luxury Brands

Demonstration of the

initial contradiction

of luxury marketing

in an online

environment and the

related challenges

that luxury brands

have to face in this

context

Godey,

Bruno; et al.

(2016)

Journal of

Business

Research

Social Media

Marketing Efforts

of Luxury Brands:

Influence on Brand

Social Media,

Luxury Brands

Demonstration of

social media

marketing efforts as a

holistic concept,

12

Equity and

Consumer

Behavior

including WOM and

trendiness; positive

effects a brand equity

(brand awareness +

brand image)

Dubois, David

(2017)

Springer Gabler Digital and Social

Strategies for

Luxury Brands

Social Media,

Luxury Brands

Distinction of social

channels for strategic

field of luxury

brands: social media

channels and their

stakeholders are

highly relevant for

the positioning of a

luxury brand.

Uzunoğlu,

Ebru; Misci

Kip, Sema

(2014)

International

Journal of

Information

Management

Brand

Communication

Through Digital

Influencers:

Leveraging blogger

engagement

Influencer

Marketing,

Brand

Management

Elaboration of digital

influencers’ role in

brand

communication,

introduction of the

two-step-flow theory

Woods,

Steven

(2016)

Honor Thesis

Projects;

University of

Tennessee

#Sponsored: The

Emergence of

Influencer

Marketing

Influencer

Marketing,

Brand

Management

Explanation of the

procedures and

characteristics of

influencer marketing

by conducting an

expert interview

Lee, Jung

Eun; Watkins,

Brandi

(2016)

Journal of

Business

Research

YouTube Vloggers'

Influence on

Consumer Luxury

Brand Perceptions

and Intentions

Social Media,

Influencer

Marketing,

Luxury Brands,

Parasocial

Interaction

Demonstration of

video blogs influence

on luxury brand

perception by means

of PSI and social

comparison theory,

definition of phys-

ical attractiveness,

social attractiveness,

and attitude

homophily

as antecedents of PSI

Faßmann,

Manuel;

Moss,

Christoph

(2016)

Springer

Fachmedien,

Wiesbaden

Instagram als

Marketing-Kanal

Instagram Instagram as social

media marketing tool

for emotional and

aesthetic staging of

brands

Marwick,

Alice E.

(2015)

Public Culture Instafame: Luxury

Selfies in the

Attention Economy

Instagram,

Luxury Brands

Instagram as a media

for extensive self-

presentation and the

promotion of a

13

luxurious lifestyle,

providing a

promising platform

for influencer

marketing of luxury

brands

Horton,

Donald;

Richard

Wohl, R.

(1956)

Psychiatry Mass

Communication

and Para-Social

Interaction

Parasocial

Interaction

Definition of typical

interaction patterns

between mass media

user and media

person as parasocial

interactions and

parasocial

relationships

Perse,

Elizabeth M.;

Rubin,

Rebecca B.

(1989)

Communication

Research

Attribution in

Social and

Parasocial

Relationships

Parasocial

Interaction

Incurrence of PSR

based on reduction of

uncertainty

Gong,

Wanqi; Li,

Xigen (2017)

Psychology &

Marketing

Engaging fans on

microblog: the

synthetic influence

of parasocial

interaction and

source

characteristics

on celebrity

endorsement

Parasocial

Interaction,

Social Media

Source credibility

and celebrity-product

congruence are

mediators between

PSI and endorsement

effectiveness.

Ballantine,

Paul W.;

Martin, Brett

A. S.

(2005)

Advances in

Consumer

Research

Forming Parasocial

Relationships in

Online

Communities

Parasocial

Interaction,

Social Media

Application of PSI in

online communities,

PSI taking a

mediating role

concerning

participation in

online communities

and consumption

behaviour

Labrecque,

Lauren I.

(2014)

Journal of

Interactive

Marketing

Fostering

Consumer–Brand

Relationships in

Social Media

Environments

Parasocial

Interaction,

Social Media

PSI’s influence on

the development of a

positive consumer

brand relationship;

PSI as a key to

preserve the one-to-

one characteristics of

luxury consumption

in a social media

environment; PSI as

14

driver of loyalty and

willingness to share

information

Xiang, Li; et

al.

(2016)

International

Journal of

Information

Management

Exploring

Consumers’

Impulse Buying

Behavior on Social

Commerce

Platform: The Role

of Parasocial

Interaction

Parasocial

Interaction,

Social Media

Demonstration of

perceived similarity

expertise and

likability as drivers

for PSR; PSI as

promoter of

impulsive buying

tendencies.

Yuan, Chun

Lin; Kim,

Juran; Kim,

Sang Jin

(2016)

Journal of

Business

Research

Parasocial

Relationship

Effects on

Customer Equity in

the Social Media

Context

Parasocial

Interaction,

Social Media

Identification of

source credibility as

antecedent of PSR;

Demonstration of the

positive correlation

of PSR and various

customer equity

drivers

Stever

& Lawson

(2013)

North

American

Journal of

Psychology

Twitter as a Way

for Celebrities to

Communicate with

Fans: Implications

for the Study of

Parasocial

Interaction

Parasocial

Interaction,

Social Media

Study on Twitter as

channel for

communication

between celebrities

and fans, “instant”

aspect of media

leading to feeling of

intimacy (PSI)

15

4 Research Design

4.1 Research Question & Hypotheses

Research on PSR highlighted that parasocial experiences resemble interpersonal relationships so

much that individuals “feel that they know and understand the persona in the same intimate way they

know and understand flesh-and-blood friends” (Perse & Rubin, 1989, p. 60; also cited by Labrecque

2014, p. 137 and Lee & Watkins, 2016, p. 5754). For instance, studies on traditional media have

revealed that those involved in a PSR aim to assert their relationship with the media personality by

increasing contact and engagement and even purchasing from the channels to which their attachment

figure is related to (Labrecque, 2014). If this notion is transferred to the setting of new media,

respectively social media, the question arises, whether popular image-sharing platforms like

Instagram and the actors in this setting, particularly digital influencers, can elicit a similar influential

relation.

In consequence, the first research question of this study is:

RQ1: How does influencer marketing on Instagram lead to the development of Parasocial

Relationships?

If influencer marketing is leading to the development of PSR, indeed, the question arises how

frequently Instagram users must be exposed to the content of a particular influencer, to develop such

a relation. Therefore, the first hypotheses of this study are:

H1: Long-Term exposure to Influencers on Instagram leads to the development of PSR.

H2: Short-Term exposure to Influencers on Instagram leads to the development of PSR.

Former PSI research detected several variables that influence the development of PSR in different

settings. Regarding online environments of social networks and the preservation of the illusion of a

one-to-one relationship, Labrecque (2014) detected two message components in communication of

media personalities that foster the development of a PSR: perceived interactivity and openness. In

online contexts, interactivity emerges not necessarily through technological possibilities but

principally through message cues, which are used to create the impression of a face-to-face interaction

(ibid.). Such cues can be a call for action or the appeal for viewers opinions on a specific topic.

Openness is created through the disclosure of personal information and therefore the reduction of

16

uncertainty in a relationship (Labrecque, 2014; Perse & Rubin, 1989). Yuan et al. (2016) demonstrate

that PSR is based on the three dimensions proximity, attraction and similarity. Furthermore, they

detect that source credibility, a construct resting upon the dimensions trustworthiness, expertise and

attractiveness, is an antecedent of PSR.

Similar antecedents of PSR are analyzed by Lee & Watkins (2016).

Figure 1: Research model by Lee & Watkins (2016, p. 5755)

They asses the influence of physical and social attractiveness as well as attitude homophily of video

bloggers on PSI. Likewise, Xiang et al. (2016) shed light on PSI in the context of social commerce

platforms and ascertain perceived similarity of media user and mediated persona, expertise and

likability of the media personality as positive drivers for PSR.

Figure 2: Research model by Xiang et al. (2016, p. 335)

The desk research on PSR study has revealed that certain constructs are central to the investigation of

PSI and PSR. For this study recurrently considered constructs and dimensions are clustered to two

antecedents of PSR: attractiveness & source credibility.

A possible third construct that has not yet been investigated in former research is admiration.

Influencer, who are associated with luxury brands, mostly live a lifestyle a lot of people aspire after.

Microblogs such as Instagram allow these influencers to edit their content in a way, that they often

draw a positively distorted picture of their real life. They appear to be optimistic and confident and

17

therefore, are often titled as role-models. Onu et al. (2015, p. 219) define admiration as “an

acknowledgment of the superiority of another person, as well as a sense of wonder at their excellence”

and propose that reflection and imitation are immediate consequences of this feeling. Hence, this study

suggests that feelings of admiration lead even further by eliciting a desire for closeness and eventually

the development of PSR.

To investigate the development of parasocial relationships under these assumptions, the study further

proposes the following hypotheses.

H3: Attractiveness positively affects the development of PSR.

H4: Credibility positively affects the development of PSR.

H5: Admiration positively affects the development of PSR.

As shown in former PSI research, parasocial interactions do not only influence the relation between

media person and media consumer, but this relation can have further impacts on consumers’ brand

perception. Yuan et al. (2016) find that PSR positively affect customer equity drivers such as brand

equity, value equity and relation equity, which in turn positively affect customer lifetime value.

Similarly, Lee & Watkins (2016) point out that PSI with YouTube personalities enhance a positive

luxury brand perception, which they claim to be compounded of the dimensions luxury brand value,

brand-user-imagery fit and brand luxury.

This study will seize the notion that parasocial relations affect consumers brand perception. In this

survey, the focus is on luxury brands and specifically the degree to which the consumers’ perception

of luxury may differ dependent on the relation with the brand ambassador.

Hence, the next research question and hypotheses are:

RQ2: How does PSR influence consumers luxury brand perception?

H6: A strong PSR with an influencer increases brand luxury.

Going beyond the construct of brand perception, Lee & Watkins (2016) point out that PSR even fosters

purchase intentions. Xiang et al. (2016) results indicate that PSI encourages impulsive buying

tendencies. Furthermore, Labrecque (2014) illustrates, that PSR can also increase brand loyalty and

willingness to provide information about oneself.

18

To extent this study the investigation of consumer behavior, as well, the final research question and

hypothesis, reads as follows:

RQ3: How does PSR-influenced luxury brand perception affect consumer behaviour?

H7: A strong PSR with an influencer increases consumer buying tendencies.

H8: A positive luxury brand perception increases consumer buying tendencies.

Table 2: Systemization of hypotheses

Hypotheses concerning antecedents of

PSI / PSR

Hypotheses concerning effects of PSI

on marketing constructs Research Design Authors (Year)

PSI forms through message cues that

increase perceived interactivity.

PSI forms through message cues that

signal openness in communication

Feelings of PSI increase loyalty

intentions.

Feelings of PSI increase willingness to

provide information

Object: Brand Relationships of

non-luxury brands

PSR Subjects: Users & Brand

account

Setting: social media

environments

Labrecque (2014)

Social attractiveness of the vlogger increases PSI

Physical attractiveness of the vlogger increases PSI

Attitude homophily with the vlogger increases PSI

High PSI with a vlogger increases positive luxury brand perceptions

a) Luxury brand value b) brand-user-imagery fit and

c) brand luxury

Luxury brand purchase intentions are

increased by positive luxury brand

perceptions: luxury brand value, brand-user-imagery fit and brand luxury

Object: Luxury Brand perception

PSR Subjects: Vlogger & Viewer

Setting: YouTube

Lee & Watkins (2016)

The similarity of other users on a SCP

positively affects the formation of PSI relationships.

The expertise of other users on a SCP positively affects the formation of PSI

relationships.

The likeability of other users on an SCP

positively affects the formation of PSI

relationships

Users’ PSI with other users on a SCP

positively affects their perceived

enjoyment in the SCP.

Users’ PSI with others positively affects

their impulse buying tendency on an

SCP

Object: Perception of SCP

PSR Subjects: Between Users of Social Commerce Platforms

Setting: Mogujie

Xiang, Lee &

Zhao (2016)

Motivations to use SNS will positively influence parasocial relationships.

Source credibility will positively influence parasocial relationships.

Parasocial relationships will positively

influence attitudes toward using SNS.

Parasocial relationships will positively

influence customer equity drivers — brand equity, value equity, and

relationship equity.

Object: Effects of PSI on customer equity / non-luxury brand

PSI Subjects: Media celebrity

(Lebron James) & social media

users

Setting: Social Media (general)

Yuan, Kim & Kim (2016)

Intensity of exposure affects the

development of PSR

Attractiveness positively affects the

development of PSR

Credibility positively affects the

development of PSR

Admiration positively affects the

development of PSR

A strong PSR with an influencer increases brand luxury

A strong PSR with an influencer increases buying tendencies

A positive luxury brand perception increases consumer buying tendencies

Object: Luxury Brand

Perception

PSR Subjects: Digital Influencer

& Instagram user

Setting: Instagram

This study

19

The formulated hypothese are outlined in the following research model:

Figure 3: Research model

4.2 Methodology

In order to answer the stated research questions, it is necessary to collect primary data. Hence, this

survey will be conducted as a quantitative research.

4.2.1 Selection of Influencers & Brand

Influencers for this research were chosen based on two criteria. First of all, they have to have a certain

number of followers on Instagram, to be considered “influential” and to increase the chances that

participants of this study are familiar with them. Therefore, only accounts of 100.000 + followers are

taken into account as an object of this study. Second, the influencers who run these accounts must be

associated with a luxurious lifestyle and thus display enough content in which luxury brands are

incorporated.

Table 3 shows the selected influencers for this study. The accounts of three female influencers will be

used in order to provide participants the opportunity to choose the person who they feel mostly related

to in the first place. All influencers are from Germany, so the chances increase that they are familiar

to the approached participants.

20

Many ‘Instagrammers’ possess, flaunt and coorporate with many diverse luxe labels. In order to serve

the purpose of this study, a brand had to be selected, which is recognized as luxury by the general

opinion and which is featured by the selected influencers. These criteria apply for the French luxury

brand Dior.

Table 3: Selection of influencer

Instagram Account

/ Blogger Gender Blog Follower

(October 2017) Topics

Excerpt of Luxury

Brands featured (Jan. 2017 – Oct. 2017)

Carodaur /

Caroline Daur Female carodaur.com 1.400.000

Fashion,

Beauty &

Travel

Dior, Dolce &

Gabbana, Fendi,

Gucci

Xeniaoverdose /

Xenia von der

Woodsen

Female xeniaoverdose.blogwalk.de 949.000

Fashion,

Beauty,

Lifestyle

Dior, Chanel,

MiuMiu, Tory

Burch, Gucci

Ohhcouture /

Leonie Hanne Female ohhcouture.com 1.200.000

Fashion,

Beauty &

Travel

Dior, Elie Saab,

Longines, Cartier,

Gucci

4.2.2 Operationalization of Constructs

Attractiveness

Recurring and related mediators of PSR are physical and social attractiveness, attitude homophily,

similarity and likability. Since Lee & Watkins (2016) have already demonstrated that social

attractiveness and attitude homophily are similar constructs, this study will consider attractiveness as

a holistic construct, with social and physical attractiveness as basic dimensions. These dimensions are

measured on multi-item, five-point Likert scales according to Lee & Watkins (2016) and Yuan et al.

(2016).

Credibility

Other recurrent mediators of PSR are openness, expertise and trust. Trust is a construct that is vital

for social relations and also highly acknowledged in relationship marketing (Morgan & Hunt, 1994).

Moreover, to be considered a credible source of information and trustworthy confidant, the influencer

needs a certain degree of expertise in his or her branch. In this study, trustworthiness and expertise

are recognized as dimensions of the construct credibility and are measured on multi-item scales

developed Yuan et al. (2016) and Rickman Cosenza et al. (2015).

21

Admiration

Onu et al. (2015) define admiration as an acknowledgment of the superiority of others, that leads to

reflection and imitation by the admirer. Therefore, the construct is approached on two scales, first on

the multi-item scale concerning admiration, and second on a multi-item scale concerning emulation.

Both scales are based on the study of Schindler et al. (2015).

PSI

Parasocial interactions and relations have been broadly investigated since these phenomena had been

originally put forth by Horton and Wohl (1956). Dibble et al. (2016) assessed measure of parasocial

interaction, like the most common PSI-Scale (Rubin et al., 1985) or newer ones like the EPSI-Scale

by Hartmann & Goldhoorn (2011). Since there is no study on parasocial phenomena in the setting of

Instagram, this research will draw on Lee & Watkins (2016) multi-item scale on PSI. They modified

Rubins et al. (1985) PSI-scale for the vlogger context, which is quite similar to the context of this

study, however, further adaptations to this particular topic must be made nonetheless.

Brand Luxury

To assess differences of luxury brand perception the by Doss & Robinson (2013) revised Brand

Luxury Index (BLI) (Vigneron & Johnson, 2004) is adduced. Vigneron & Johnsons (2014) BLI scale

depends on a conceptual model that identifies personal-oriented and non-personal-oriented

components of consumer luxury brand perceptions. The personal component includes the factors of

perceived uniqueness, conspicuousness and quality. The personal component comprises perceived

hedonism and extended-self. 20 Items on a semantic differential are provided to estimate these five

dimensions. Christodoulides et al. (2009) and Doss & Robinson (2013) both fault a lack of dichotomy

of terms. Hence, Doss & Robinson (2013) revised the item denotation.

Brand Purchase Intention

Finally, to approach the purchase intention of the participants a multi-item, five-point Likert scale will

be used. Thereby, three items come from Lee & Watkins (2016) and another two items originate from

Kim & Hyun (2011).

4.2.3 Data Collection and Analyzation

Since this study focuses on digital influencers an online questionnaire will be used to approach this

environment. The questionnaire will be developed using Sosci Survey, an online tool for survey design

22

that fulfils criteria of the methodological approach of this study. It is free of charges for academic

usage, allows filter questions and the conducted data can be converted to be later analysed via SPSS.

To gather enough participants for this study, the questionnaire will be distributed online in social

media and fashion forums, since it is assumed that the approached people using these channels will

well fit the sample requirements.

In the first part of the survey, the participants will be asked, whether they actively use Instagram and

if they know any of the presented influencers. Participants who do not have an Instagram account or

know any of the presented influencers will still be included, since the study is based on a between-

subject design. In a next step, participants have to choose the influencer they feel most related to and

then are confronted with a selection of the influencer’s posts. In all these posts, the influencer actively

promotes the selected luxury brand Dior. In the second part of the study the participants will have to

indicate their attitude towards the blogger, as well as their perception and their purchase intention

towards the brand Dior. The last part of the study will conclude with demographic specifications. To

assess measurements of the constructs and investigate relationships between latent and observable

variables structural equation modelling (SEM) is applied. The data will be quantitatively analysed in

SPSS Amos.

4.2.4 Sample Requirements

For this survey only two requirements have to be fulfilled by the participants. Firstly, they have to be

familiar with the fashion brand Dior, so they can associate with the brand. Furthermore, they should

be at least 18 years old, since it is assumed that a certain age, and likely a source of income, are

suppositions that luxury brands are purchased or at least considered by the participants. Since

Instagram is a worldwide successful social media channel and the selected influencers mainly post in

English, there are no restrictions on the participants nationality. However, since the survey will be

primarily spread among Germans, the questionnaire will be conducted in German and English. There

are no restrictions on gender either, since in luxury fashion serves both, female and male consumers.

There are several guidelines on SEM and the necessary sample size. In accordance to Boomsma

(1982) the minimal sample size is determined by the ratio (r) of items (n) to constructs (k):

r = n/k = 41/10 = 4,1. Applying the calculated ratio to Boomsma’s (1982) formula N>50r²-450r+1100

results in required sample size of N>95. Since Hair et al. (2010) state that an adequate estimation of

an SEM needs a minimum sample size of 100 subjects it is aspired to obtain at least these 100

participants.

23

5 Preliminary Structure

Abstract

Table of Content

List of Figures

List of Tables

List of Abbreviations

1. Introduction

1.1.1. Background

1.1.2. Problem Statement

1.1.3. Purpose and Contribution

1.1.4. Structure

2. Theoretical background

2.1.1. Forms and Perspectives of Social Media Marketing

2.1.1.1.1. Influencer Marketing

2.1.1.1.2. Instagram

2.1.2. Luxury Marketing

2.1.2.1.1. Defining Luxury

2.1.2.1.2. Luxury Marketing in Social Media

2.1.3. The Concept of Para-Social Interaction

2.1.3.1.1. Para-Social Interaction in Online Environments

2.1.3.1.2. Inferences of Existing Literature

3. Research Design

3.1. Research Question & Hypotheses

3.2. Methodology & Procedure

3.2.1.1. Selection of Influencers & Brand

3.2.1.2. Operationalisation of Constructs

3.2.1.3. Sample

3.2.1.4. Research Design

4. Analysis and Results

4.1. Results

4.2. Discussion

5. Conclusion

5.1.1. Theoretical Implications

5.1.2. Managerial Implications

5.1.3. Limitations and Future Research

6. References

7. Appendix

8. Statutory Declaration

24

6 Schedule

Period Topic Description

September – November Exposé Literature Review, Preparation

November – 1st December Research Design Development of research

model and questionnaire,

reparation of survey & pretest

1st December Thesis Registration

1st December – 15. January Running of Survey

1st December – 15. January Theoretical background,

Methodology

Elaboration of theoretical

background

15. January – 15. February Analysis Data analysis & interpretation

15. February – 1. March Conclusion Verifying / Falsifying of

hypothesis, concluding

discussion,

1st March Finalization Final revision and correction

15. March Submission Printed & digital version

(Thieme 2017)

VI

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