Group Member Names:

Alina Haq #52708

Shahan Majeed #52684

Anas Rizwan #53507

Jalees Ur Rehman #53994

Area: Marketing

TOPIC: The impact of influencer marketing on consumer product purchasing

in Pakistan.
Contents
Acknowledgement:..........................................................................................................................5
Chapter 01: Introduction..................................................................................................................6
1.1 Introduction:..........................................................................................................................6
1.2 Background of the Digital marketing industry in Pakistan:..................................................6
1.3 Research Problem:.................................................................................................................7
1.5 Research Question:................................................................................................................8
1.6 Significance of the Project:....................................................................................................8
Chapter 02: Literature Review:.....................................................................................................10
2.1 Concept of Influencer Marketing:.......................................................................................10
2.2 Effectuality Between Influencer Marketing and Customer Engagement:...........................10
2.3 Digital Media and Social Network Marketing:...................................................................11
2.4 Hypothesis:..........................................................................................................................13
2.5 Model...................................................................................................................................13
Chapter 3: Methodologies..............................................................................................................14
3.1 Research Approach..............................................................................................................14
3.2 Research Design..................................................................................................................14
3.3 Data collection:....................................................................................................................15
3.3.1 Primary Data:................................................................................................................15
3.3.2 Secondary Data:............................................................................................................15
3.4 Procedure of Data Collection...............................................................................................16
3.5 Sampling Technique:...........................................................................................................16
3.6 Sample Size:........................................................................................................................16
3.7 Data Analysis technique:.....................................................................................................17
3.8 Ethical considerations:.........................................................................................................18
3.8.1 Informed consent:.........................................................................................................18
3.8.2 Invasion of privacy:......................................................................................................18
Chapter 04......................................................................................................................................19
Result & Discussion......................................................................................................................19
4.1 Descriptive Analysis:...........................................................................................................19
4.1.1Gender Descriptive Analysis:........................................................................................19
 Graph 1:.................................................................................................................................20
4.1.2 Age Descriptive Analysis:............................................................................................20
4.1.3 Profession Descriptive Analysis:..................................................................................21
4.1.4 Education Descriptive Analysis:...................................................................................22
4.2 Reliability/ Cronbach Alpha Analysis:................................................................................23
4.3 Assessment of Measurement Model....................................................................................24
4.4 Internal Consistency Reliability..........................................................................................25
4.5 EFA......................................................................................................................................25
4.6 Reliability Statistics.............................................................................................................29
4.7 Discriminant Validity..........................................................................................................29
4.8 Assessment of Significance of the Structural Model...........................................................30
4.8.1 Direct Relationships the Measurement Model.................................................................31
4.8.2 Correlations.......................................................................................................................31
4.8.3 Direct Relationships with Purchase Intention...................................................................32
 Acknowledgement:

Starting with the Almighty on whom we depend for sustenance and guidance. The project being

small or big it is successful due to determination of all group members. We appreciate the

motivation, direction and support from our lecturer Dr. Sara Khurram who invested his precious

time to complete this project. We would also like to expand our deepest gratefulness to all those

who have directly and indirectly guided us in the completion of this project.
 Chapter 01: Introduction

1.1 Introduction:

The world is evolving in the better way considering the advertisement. Since, the world is

becoming globalize and considering as one village the bar of technology is also raising high.

Companies are becoming multinational working across the borders in the search of new

customers. The basic way to make a customer convert into a final purchase every company

around the globe advertise their product and brand. However, since people are getting aware of

technology companies are trying to find out new ways and techniques to influence their already

warm customers and target their new customers.

According to the researcher, the impact of advertisement becomes more impactful over

the customers since the introduction of digital media around the globe. Not only the digital media

but also the celebrity endorsements has turned the shape into influencer marketing taking the

advertisement to the next level. According to the newspaper, the Space X the company of Elon

Musk has collaborated with the advertisement company of Canada to advertise the brands in the

space. They had planned to launch a satellite in the space who can display the logos or brand

endorsements from the space on the place where large people could see it. Thus, these facts are

taking the advertisement on the whole new level.

1.2 Background of the Digital marketing industry in Pakistan:

Pakistan is being considered as the underdeveloped country however, from the past

decade 2011-2020 it has grown itself from television media to digital media. According to the

researcher, a general company has an average spend of $4000-7000 over digital media ads &

influential marketing to attract more customers and sustain their brand goodwill in the market.
On the other hand, the customers in Pakistan also getting aware of technology and internet is

being available now even in the remote areas. According to the researcher, Pakistan Online

population has grown up to 68% of which 50% has the average time spend of 20’ minutes over

the Facebook and Other social media around the country. According to the study of Ipsos and

Quantum, in the Pakistani market brands are 3-4x times more likely to reach their shopper more

online then from physical store. The major ways to interact with their customers are digital

media and Influential marketing.

According to the research, influential marketing in Pakistan has grown via YouTube and

Instagram which has given growth to more Online SMB (Small Medium Business). Thus, the

stats have shown that the influential marketing or Personal relationship packages giving the

growth to business all over the country. According to the newspaper, people in Pakistan are more

influential towards TikTok & Instagram influencers where they endorse the product and people

are highly likely to convert. According to the stats of We-find application, the rate of

engagement and purchasing via an influential endorsement is 12% (depends on the Goodwill of

the influential). Thus, digital media and Influencer marketing is impacting the purchasing

behavior of the buyer.

1.3 Research Problem:

According to the researcher, Pakistan brands are now going towards influencer

marketing. It has become the go-to method for doing marketing covering all the segments at

ones. The problem which being researched in this study is to identify whether influencer

marketing and digital media truly effecting the consumer buying behavior in Pakistan.

Additionally, this study will explore and investigate the impact of social network marketing on

consumer purchase behavior and how does influencer marketing affect customer engagement
which benefits the brands. This study focused on the development of research model to test how

does digital marketing influences purchase intention. Digital marketing is being considered as

playing an important key role in customer purchase behavior, this study aimed at measuring the

influence of digital media on consumer purchase behavior.

1.4 Research objective:

 To determine effectiveness of internet advertisement over Consumer behavior in

Pakistan.

 To examine the relationship between an influencer and the customer purchase decisions

 To identify whether digital media advertisement making the customer loyal or giving too

many choices over digital media the losing the loyalty of a brand increases.

1.5 Research Question:

 Does celebrity or public figure endorsement affect the buying behavior of the customer in

Pakistan?

 How influencer marketing making growing in Pakistan and How brands easily using this

technique?

 How digital media (FB Ads, Google Ads and Virtual Reality Ads) are affecting the

online purchasing concept of the people of Pakistan?

 Does Digital media strategies are helping brands to grow and build a relationship with the

consumer in the market of Pakistan?

1.6 Significance of the Project:

This project very significance from the perspective, is to understand the digital

advertisement impact over the customer buyer behavior in Pakistan specially to study about the
impact of influential marketing over the consumers thought process of purchasing. The major

purpose is to understand the new marketing tactics and its behavior over customer choice of

purchasing that’s why it’s more significant for Pakistan marketing industry.

1.7 Limitation of the Study:

According to the researcher, limitation of the study is when an analysist could only allow

to walk to the end of the block. In this article of research, the limitation was the sample size.

Limiting the sample size for boarded research is always seems tough since, the research is on

consumer buying behavior via digital media and influencer marketing. However, we had to

choose only 1 city out of all the population. Therefore, we had limited the sample size for this

research.
 Chapter 02: Literature Review:

2.1 Concept of Influencer Marketing:

Gretzel (2018); Jin, et al. (2019) described influential marketing as a fast-growing

dynamic industry on the promotion of products and services with content distributed by social

media users, they are considered influential. In addition, it is shown as a technology that relies on

the organization of accessibility, prominence and the importance of improving word of mouth or

free of charge to minor influences. According to the study of Kim and Kim (2019), marketing the

word influencer is a brand-new concept to many advertisers and most of them do not use its

marketing strategy. In addition, Cha et al. (2010) have shown that promoter marketing is

considered a viable strategy that contributes to consumers to change their behavior and attitude

towards products and services. So, influencer marketing has opened new doors of awareness

among financial product in Pakistan.

2.2 Effectuality Between Influencer Marketing and Customer Engagement:

The most important role in marketing is to increase the understanding and perception of

customers product and service terms. Therefore, the main purpose of influential marketing is to

increase profits, production and availability of products and services (Choudhury, 2014). Use of

social media is now available enabled customer engagement through effective advertising.

Impact marketing has a direct impact on a complete customer decision that leads to their

satisfaction and comfort. Moreover, good the result shown in influential marketing is that it has

strong customer communication (Van Staden and Van Niekerk, 2018). There are various theories

used in this study related to effective advertising, however using the most appropriate method

related to this study. As a theory of data fraud deliberately that unreliable communication works
inappropriately because it secretly violates ethics manage conversations (BenYoussef & Breton,

2016). Behavioral reform theory that speaks of certain motivations that change the consumer

behavior that includes the effect of the majority and minority influence (Dongmei & Xinxin,

2018). Theory Impact Theory is referent the behavior and attitude of others across three

procedures which are internal performance, identification and compliance. All beliefs have a

different meaning associated with impact marketing and emphasizing the availability of ideas for

this study. The concept of these ideas suggests that behavioral predictions and consumer

perceptions of certain Pakistani products. By combining the above-mentioned concepts into the

marketing function, the Pakistani market can increase customer engagement by promoting

products.

2.3 Digital Media and Social Network Marketing:

Because of that technological change happening around the world, social media is

thriving in all sectors communication and as a result, there has been a new invention means of

communication between people. The arrival of social media influences how companies build

relationships with their customers and the services provided by social media are not only high

technology but also fast, efficient and easy. They happen automatically, they are visible and they

can be is distributed in almost every part of the world as long as the Internet is available. As

users of these social media platforms, potential consumers are thus involved themselves as

groups with certain interests and it is this aspect of their appearance allows for seamless

marketing strategies (Well, Valette-Florence, and April, 2012). Social networking sites work

with specific social networking sites allowing users to create their profiles, share information,

collaborate and interact with other users on similar sites (Kaplan & Haenlein, 2010). Social

media marketing is used by smart marketers as a marketing tool because these social networking
sites are very popular among the individual and thus become visible advertising sites. Other

rather than its useful access, locations can be customized combine customer profiles. Therefore,

the help of social networking site depends on vendors, who have the option of exploit and

improve the advertising room as much as possible and building a marketing room according to

needs as well consumer trends. Research on communication categories consumers as participants

who submit ideas or as viewers / fans who only watch and watch what others do posts

(Schlosser, White, & Lloyd, 2006; Shoa, 2009). According to Yusufzai (2016), Internet users in

Pakistan are numerous and may use social media including Facebook, Twitter, and Instagram,

for the purpose of accessing government outreach programs, businesses and entertainment

industries. This means that Pakistan is similar to other countries when it comes to social media

use. However, although it depends on its reliability in social media various access, little research

focused on its impact on the consumer to buy. In a few studies conducted, Nasir, Vel, and

Mateen (2012) examine how social media has influenced the purchasing power of Pakistani

women. Their research shows that Pakistani women think the traditional word of mouth for

advertising to be more reliable rather than advertising on social media in making related

purchasing decisions clothing. While this research provides some insight into social media

consumption in Pakistan, with a focus on women and the clothing industry only. In this regard, it

prevents the production of results from occurring in general. In another study, Nawaz et al.

(2015) investigated the social impact the media through the decision-making process of the 126

respondents working on higher education institutions in Pakistan. Their study reveals that the

decisions made by social media users have been influenced by criticism and information shared

by other users. Assessing social acceptance media among high school students of high public

institutions, Arif and Kanwal (2016) noted that most respondents are aware social media
technology and Facebook seem to be the most important frequently used. Research continues to

show the use of tangible, controlling behavior and perceived behaviors as potential contributors’

users to use social media. As these courses focus on training and in the field of education, the

findings may not be able to show what the size of the communication can affect the performance

of the purchase of social media users in Pakistan. Therefore, the current study aims to complete

these books gap.

2.4 Hypothesis:

H1 = Influencer has a positive effect over purchase intention

H2 = Influencer has a positive effect over trust of a buyer

H3 = Trust being the Mediator has a positive effect over Purchase intention

2.5 Model:

Trust

Influencer

Purchase intention
 Chapter 3: Methodologies

3.1 Research Approach

Research approach is a systematic procedure that provides a means to identify the most

appropriate strategies for conducting research. It involves employing various techniques and

tools to answer questions related to the purpose, motive, nature and delimitations of research and

also assists in achieving objectives (Williams, 2014).

The approach that has been chosen for this project is inductive approach, which will

examine how digital media and influencer marketing will assist an organization in improving and

synchronizing the entire marketing process and would help in learning consumer buying

behavior. The examined results will be compared to the academic literature and will be helpful

for the marketing executives as well as consumer behaviors experts.

3.2 Research Design

Research design is the process of collection and analysis of data. The three steps for

research design are: Description, Measurement, and Validity. Research design is used when

collecting and interpreting information about any given subject being studied (Leedy & Ormrod

2001; Williams, 2011). A research design is very important because it basically helps researchers

to decide on what kind of data they will collect for their research. The other parties involved in

carrying out the research, that is, the researcher, and participants will have something to refer by

while doing the experiment.

3.3 Data collection:

Exploratory research helps to identify the problems, which are unclear or ambiguous and

to help improve the research design (Zwinderman, 2014). Exploratory research aims to build

upon existing knowledge and extend this knowledge base instead of establishing new facts. It is

also used to identify research related issues in qualitative research.

Quantitative research is used to study the behavior and thinking of people through

surverys and by conducting interviews (Tona, 2017). The results of quantitative research are

basically in variables and an explanation between the two-variable giving a first-hand result.

3.3.1 Primary Data:

Primary data is information that is gathered for the particular research problem at hand,

which uses methods to best fit the research problem (Hox et.al, 2005). The survey would be

conducted from different buyer intention people from a sample size to evaluate the effect of

celebrity endorsement and influencer marketing over people purchases. Moreover, this data

would also evaluate the scope of the marketing technique by figuring out the results from the

public that really help business to grow.

3.3.2 Secondary Data:

In the field of market research, secondary data is a compilation of data that has already

been collected for some other purpose. Business analysts use this information to determine all

kinds of trends and how they're affecting companies. Secondary data will also be used for this

research. Data would be collected through various instruments such as questionnaire, surveys

and reading.

3.3.3 Reliability and/or Validity of Instrument

 The validity and reliability are based on the instrument of data collection used.

The instrument of data collection provides the measurement scale where this research

will include a developed measurement instrument to measure the variables.

3.4 Procedure of Data Collection

For this research, a survey will be performed in which necessary information would be

obtained and analyzed. This understanding highlights the effect of the determinants on the

efficiency of the marketing process in this research. Questionnaires, readings and surveys, as

well as the secondary data collection is the main source of data collection. close-ended questions

will be included in the questionnaire and would be available to the respondents in the easiest

form available.

3.5 Sampling Technique:

Choosing the right sampling technique in analyzing the research is very important. It is

basically an approach thorough which the primary data has collected for the article. In this

research, Probability sampling in which simple random sampling would be the basic core type

use to collect the data. Simple random sample is referring to as where from a large population,

every participant has equal chances to get selected. Moreover, the chances of getting biased in

the research becomes less. Since, this article research is based over the consumer behavior over

purchasing the product by the influence of digital media and specifically influencer marketing

choosing the people from the large group randomly would give better results.

3.6 Sample Size:

Since, this research is being taken place only in Karachi. Therefore, the population group

would be considered as Pakistan and among that the sample size would be Karachi. However,
among them 200 random participants (customers of online purchase) would be choose to be the

participants of this research.

Characteristics of the people being in the Sample size:

 Frequent Online purchaser

 Follow certain number of influencers.

 Known about digital interaction

 Being over virtually presented Snapchat, Instagram & Facebook

 Have done an online purchase in last 6 months.

3.7 Data Analysis technique:

According to Hwang & Fu, (2018), the data collection technique is one of the major

aspects of any research article. The major reason behind i.e., it specifies the way for the

researcher to go further in the study, test the hypothesis and review the results. Researchers may

use two ways to collect day primary and secondary. Primary is first-hand information collected

by interviews, questionnaires, etc. however, on the other hand, secondary data is being collected

by articles, web posts, etc. The method used in this study is secondary data and primary data

both, where secondary data being collected by articles, research materials, and web post. while

on the other hand Primary data would get collected with the sample size of 200 participants. The

researcher will use close-ended questions. Since, in this research the variables are being tested

and the main purpose to find out the major variable impact over the consumer behavior therefore,

regression analysis would be use to analyses the data. Moreover, since the collection method is

Questionnaire with close ended questions having 10 questions the tool that would be use for

testing would be SPSS.

3.8 Ethical considerations:

Various ethical considerations are found associated with the following research study,

some of which are mentioned as under

3.8.1 Informed consent:

The consent of the participants volunteering in this study was free of consent. The

decision to be part of this study of every participant was their nobody was forced or

dragged into this.

3.8.2 Invasion of privacy:

The privacy measures of the study were taken care of with all good. The

researcher had made sure that any privacy measure wouldn’t be breached during the

research.
 Chapter 04

Result & Discussion

The respondents of this survey were taken from the Karachi, Pakistan. Moreover, the sample size

of this study was finalized at 201 respondents and below data is of the study conducted among

the participants.

4.1 Descriptive Analysis:

Following are the frequency tables and associated graphs derived from the SPSS.

4.1.1Gender Descriptive Analysis:

Table 1:
gender of study
Frequen Valid Cumulative
cy Percent Percent Percent
Valid male 91 45.3 45.3 45.3
femal 110 54.7 54.7 100.0
e
Total 201 100.0 100.0

Table 2:
Statistics
gender of study
N Valid 201
Missin 0
g
Mean 1.5473
Median 2.0000
Std. Deviation .49900
Variance .249
Range 1.00
Sum 311.00

Graph 1:

According to the above graph it is shown that the most the respondents of the study are female

having 54.7% of the total participants. The major

reason of this huge numbers that during the

research is shown that womans are more inclined

towards influencers are online shopping

comparing to Male gender.

4.1.2 Age Descriptive Analysis:

Table 3:
age of the participants
Freque Valid Cumulative
ncy Percent Percent Percent
Valid Less than 77 38.3 38.3 38.3
21
21 to 30 124 61.7 61.7 100.0
Total 201 100.0 100.0

Table 4:
Statistics
age of the participants
N Valid 201 Graph 2:
Missin 0
g According to the
Mean 1.6169
above graph it is
Median 2.0000
Std. Deviation .48735
Variance .238
Range 1.00
Sum 325.00
shown that most of the respondents are from 21 to 30 age. Since, the most online shopping and

following of influencers interest find in this sector of age.

4.1.3 Profession Descriptive Analysis:

Table 5:
Profession of the participants
Valid Cumulative
Frequency Percent Percent Percent
Valid own 64 31.8 31.8 31.8
business
employee 68 33.8 33.8 65.7
student 69 34.3 34.3 100.0
Total 201 100.0 100.0

Table 6:
Statistics
profession of the
participants
N Valid 201
Missin 0
g
Mean 2.0249
Median 2.0000
Std. Deviation .81509
Variance .664
Range 2.00
Sum 407.00

Graph 3:
According to the table and graph it is shown that all the profession are almost equal. With own

business having 31.8% and employee 33.8% and students with 34.3%

4.1.4 Education Descriptive Analysis:

Table 7:
education of the participants
Frequen Valid Cumulative
cy Percent Percent Percent
Valid graduate 98 48.8 48.8 48.8
undergraduate 71 35.3 35.3 84.1
Intermediate/A 32 15.9 15.9 100.0
level
Total 201 100.0 100.0

Table 8:
Statistics
education of the
participants
N Valid 201
Missin 0
g
Mean 1.6716
Median 2.0000
Std. Deviation .73596
Variance .542
Range 2.00
Sum 336.00
Graph 4:

According to the table it has been showed

that most of the respondents were graduate

with almost 48.8%.

4.2 Reliability/ Cronbach Alpha Analysis:

There are 3 variables in our research purchase intention, trust (mediator) and influencer

(independent variable). The below are the reliability analysis of the variables in the

questionnaire.

Table 9
Reliability of
Purchase Intention
Statistics
Cronbach's N of
Alpha Items
.749 3

Since the dependent variable purchase intention has 3 items of questions in the survey.

According to the SPSS the reliability of the variable purchase intention is 0.749 which is greater

then 0.6. Thus, the purchase intention variable is reliable.

According to the researcher, the best value of reliability is greater or equal to 0.7 however, in the

consumer behavior perspective the value with greater or equal to 0.6 could be well considered.

Table 10:
Reliability
Statistics of Trust
variable
Cronbach's N of
Alpha Items
.675 3
In this study, Trust is performing as the mediator between the purchase intention and influencer.

According to the SPSS, the data which being collected on the variable of trust by the respondent

is 0.675 which is greater then 0.6. thus, the data of variable trust is reliable.

Table 11:
Reliability
influencer variable
Statistics
Cronbach's N of
Alpha Items
.840 3

In this study, influencer is being performing as the independent variable. According to the SPSS,

the data which being collected on the variable of trust by the respondent is 0.840 which is greater

than 0.6. Thus, the data of variable influencer is reliable.

4.3 Assessment of Measurement Model

Hair et al. (2011; 2014) state that while analyzing the inner consistency reliability, the

dependability substance legitimacy, discriminant legitimacy, and convergent legitimacy of the

specific item must all be considered. As previously stated, the model's validity and reliability

were evaluated using the Vinzi et al., (2010) rule of thumb, which indicated that the external

loading of individual items should be 0.5 or larger, and the average variance extricated should be

greater than 0.5. According to Vinzi et al., (2010), all objects with an external loading greater

than 0.5 should be wiped one at a time, and those with lesser loading should be wiped one at a

time; this method is also recommended by for improving data quality (Hair et al., 2013).
4.4 Internal Consistency Reliability

The phrase "extent to which all items on a specific subscale are measuring the same notion"

refers to the "extent to which all items on a specific subscale are measuring the same concept"

(McCrae, Kurtz, Yamagata, & Terracciano, 2011). The Fornel and Larcker criterion states that

adequate esteem is 0.7, which should not exceed 0.7 for the threshold value of 0.7, and

acceptable esteem is at least 0.5. (1981). All of the components in this study's composite

reliability and AVE esteem are consistent with (Hair et al., 2014). According to the table below,

all of the variables appear to be quite trustworthy, with AVE values more than 0.50, indicating

that the estimation show is reliable for the proposed investigation. The Cronbach alpha was also

computed in this study to check the internal consistency of the data, according to George and

Mallery's (2003) rule of thumb: > 0.9- Excellent, 0.8- Excellent, 0.7- Acceptable. The AVE,

Cronbach alpha, and composite reliability ratings for all variables are listed in the table below.

4.5 EFA

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy. .742

Bartlett's Test of Approx. Chi-Square 923.169

Sphericity Df 36
Sig. .000
Interpretation: The sig value of KMO and Bartlett's Test is 0.000 which is less than 0.05,
which indicates that there is a correlation in the matrix. The value of KMO is 0.742 which is
more than 0.50, which means the correlation among the variables is affecting.

Communalities

Initial Extraction
IM1 1.000 .813
IM2 1.000 .803
IM3 1.000 .774
TR1 1.000 .762
TR2 1.000 .810
TR3 1.000 .786
PI1 1.000 .808
PI2 1.000 .839
PI3 1.000 .787

Extraction Method: Principal Component Analysis.

Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared

Initial Eigenvalues Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Variance % Total Variance % Total Variance %
1 3.140 34.892 34.892 3.140 34.892 34.892 2.438 27.089 27.089
2 2.157 23.967 58.859 2.157 23.967 58.859 2.388 26.535 53.624
3 1.884 20.930 79.789 1.884 20.930 79.789 2.355 26.165 79.789
4 .389 4.318 84.107
5 .357 3.967 88.074
6 .311 3.454 91.528
7 .291 3.232 94.760
8 .258 2.862 97.622
 9 .214 2.378 100.000

Extraction Method: Principal Component Analysis.

Interpretation: Cumulative % is 79.789, which is more than 60%, so it indicates that there is
correlation between the statements. Factors are extracting at 70%.

Component Matrix(a)

Component
1 2 3
IM1 .532 .657 .313
IM2 .519 .668 .296
IM3 .539 .660 .219
TR1 .626 -.010 -.608
TR2 .600 -.048 -.668
TR3 .652 -.078 -.595
PI1 .621 -.501 .414
PI2 .607 -.549 .413
PI3 .605 -.533 .371

Extraction Method: Principal Component Analysis.

a 3 components extracted.

Rotated Component Matrix (a)

Component
1 2 3
IM1 .067 .898 .044
IM2 .044 .893 .049
IM3 .022 .871 .122
TR1 .073 .104 .863
TR2 .051 .041 .897
TR3 .137 .070 .873
PI1 .892 .076 .080
PI2 .913 .031 .075
PI3 .881 .027 .106
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 4 iterations.

Scree Plot

3
Eigenvalue

1 2 3 4 5 6 7 8 9
Component Number
Interpretation: Eigenvalue are on maximum loading till 1 therefore, we have the highest
slope or loading till point 2. This shows that point till 2 can be extracted as they have the highest
loading.

4.6 Reliability Statistics

Cronbach's N of
 Alpha Items
.765 9

Validity and Reliability Test:

Question design in research is measured by Cronbach’s Alpha that shows “Reliability” between

dependent and independent variables. The data of 200 respondents shows a strong Internal

Consistency as the “Reliability” is 0.765 which is more than 60%. Hence, the questionnaire is

reliable.

4.7 Discriminant Validity

Discriminant validity is defined by Farrell and Rudd (2009) as "the degree to which a given

latent variable is distinct from other latent variables." The AVE values published by Fornell and

Larcker as criteria were used in this investigation to assess folding discriminant validity (1981).

To establish discriminant validity, the square root of AVE and the correlation between the latent

variables were used (Fornell and Larcker, 1981). To measure discriminant validity, Fornell and

Larcker (1981) propose using average variance recovered with a score of 0.50 or above. The

square root of AVE, according to Fornell and Larcker, should be greater than the value of latent

variables indicating discriminant validity (1981).

4.8 Assessment of Significance of the Structural Model

After determining the quality of the route model, the following stage was to examine the

hypotheses. The structural model was evaluated using the PLS-SEM (PLS algorithm and

bootstrapping) method (Chin, 2010). The predictive capacity of the structural model was initially

evaluated using the coefficient of determination (R2 values) of the endogenous construct and the

significance level of the route coefficients (Chin, 2010; Henseler et al., 2009). (2014) (Hair, Hult,

and colleagues). Table 4.6 shows that the R2 for each endogenous latent variable in this study is

0.732 for Influencer Marketing and 0.563 for Purchase Intention.

Table 4.1:

R-square of Endogenous Latent Constructs

Construct R Square Result
Influencer Marketing 0.732 Substantial
Purchase Intention 0.563 Substantial

4.8.1 Direct Relationships the Measurement Model

Non-significant or displaying indications in the opposite direction of the expected do not support

hypotheses, but significant routes empirically demonstrate the claimed causal link, according to

Hair et al. (2013). This is how the route coefficients were generated:

4.8.2 Correlations
 IM TR PI
IM Pearson Correlation 1 .160(*) .094
Sig. (2-tailed) .024 .187
N 200 200 200
TR Pearson Correlation .160(*) 1 .179(*)
Sig. (2-tailed) .024 .011
N 200 200 200
PI Pearson Correlation .094 .179(*) 1
Sig. (2-tailed) .187 .011
N 200 200 200

*Correlation is significant at the 0.05 level (2-tailed).

Firstly, the basic purpose of this study is to focus on examination of direct relationships with the

dependent variable (Purchase Intention) and secondly test the hypothesized relationships among

the constructs through structural model. In this study, two hypothesis which have direct

relationships with Purchase Intention (dependent variable) were tested all were proven to be

supported. Furthermore, table 4.2 explains the direct effect of every latent variable on the

dependent variable.

4.8.3 Direct Relationships with Purchase Intention

Hypothesis 1: Influencer marketing has a positive effect over Purchase Intention.

A positive and significant association between IM and PI (β = 0.22, t = 4.97) was found. Hence,

hypothesis 1 was supported.

Hypothesis 2: Trust being the Mediator has a positive effect over Purchase Intention.

A positive and significant association between TR and PI (β = 0.19, t = 4.32) was found. Hence,

hypothesis 2 was supported.

Table 4.2

Results of hypothesis testing direct relationship with (PI)

Hypotheses Relationship Beta SE t-value P-value Decision

H1 IM-> PI 0.22 0.04 4.97 0.00 Supported
H2 TR -> PI 0.19 0.04 4.32 0.00 Supported

Note: PI – Purchase Intention; IM – Influencer Marketing; Trust – TR

Hypothesis 3: Influencer has a positive effect over trust of a buyer.

A positive and significant association between IM and TR (β = 0.20, t = 3.46) was found. Hence,

hypothesis 3 was supported.

Table 4.3:

Results of hypothesis testing mediating relationship with (PI)

Hypotheses Relationship Beta SE t-value P-value Decision

H3 IM -> TR 0.20 0.05 3.46 0.001 Supported

Note: IM – Influencer Marketing; Trust – TR

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