Impact of Social Media Influencers on Local Brand Loyalty in Retail Chains

Thesis Abstract

The rapid rise of social media as a marketing channel has transformed consumer-brand interactions, yet the extent to which local retailers benefit from influencer campaigns to foster brand loyalty remains underexplored in empirical field settings. This study addresses the problem of limited evidence on how local social media influencers affect brand loyalty in retail chains, discerning the mechanisms through which influencer credibility, parasocial relationships, and perceived authenticity translate into repeat purchase intent and advocacy within local markets. The aim is to quantify the direct and indirect effects of influencer-driven exposure on local brand loyalty, and to identify contextual factors that moderate these effects, such as store proximity, consumer involvement, and perceived influencer fit. Specific objectives are (i) to examine the relationship between influencer credibility, parasocial interaction, and perceived authenticity with local brand loyalty; (ii) to assess the mediating role of perceived value and emotional attachment in the influencer–loyalty linkage; (iii) to evaluate the moderating influences of store proximity and consumer involvement on the influencer effects; and (iv) to compare influencer-driven loyalty across two urban localities with distinct retail clusters. The study adopts a cross-sectional explanatory field design, drawing a stratified sample of 600 adult shoppers from two metropolitan retail chains across City A and City B, with equal representation of frequent and occasional shoppers. Data will be collected via a structured 7-point Likert-scale survey instrument adapted from established scales for influencer credibility, parasocial interaction, perceived authenticity, perceived value, emotional attachment, and brand loyalty, supplemented by self-reported behavioral proxies (repeat purchase intentions and advocacy). The instrument will undergo content validity checks with a panel of marketing academics and pretested with 60 respondents, and reliability will be assessed using Cronbach’s alpha and composite reliability. Quantitative data will be analyzed using structural equation modeling (SEM) to test the proposed causal model and mediation effects, complemented by multi-group analysis to explore regional differences. Regression analyses will examine direct effects, while bootstrap procedures (5000 resamples) will determine the significance of indirect effects. Theoretical grounding rests on source credibility theory, Uses and Gratifications theory, and the Theory of Planned Behavior, integrated into a comprehensive model of influencer-mediated loyalty. Anticipated findings include robust positive effects of influencer credibility, parasocial interaction, and perceived authenticity on local brand loyalty, with perceived value and emotional attachment mediating these relationships; store proximity and higher consumer involvement are expected to strengthen these effects, whereas greater distance between consumer and influencer may attenuate credibility transfer. The study contributes to knowledge by operationalizing influencer impact within local retail ecosystems, delineating the psychological mechanisms that convert online influence into durable loyalty, and providing a comparative regional analysis that informs targeted influencer marketing strategies for urban retailers. Practically, findings will guide retailers in selecting compatible local influencers, designing authentic content that enhances perceived value, and calibrating campaign intensity based on consumer involvement and store proximity. Policy and managerial implications include recommendations for aligning influencer partnerships with brand positioning, ensuring ethical disclosures, and fostering sustainable loyalty through integrated omnichannel experiences. The conclusion will articulate a nuanced understanding of when and how social media influencers translate online engagement into tangible local loyalty outcomes, and the recommendations will emphasize measurement, governance, and resource allocation for influencer marketing initiatives in retail chains.