Relationship Between Influencer Marketing and Consumer Loyalty to Fast-moving Consumer Goods in Kasarani, Nairobi

Abstract

This study addresses the FMCG industry's challenges in Nairobi, where low customer loyalty amid market growth, competition, and profit reduction prompted an examination of influencer marketing's role in enhancing customer loyalty and FMCG performance. The objective of the study was to assess the impact of influencer marketing on consumer loyalty within the FMCG sector in Kasarani, Nairobi, drawing from theoretical frameworks including associative learning theory, source credibility theory, and the match-up hypothesis. Employing a descriptive research design, the study targeted all customers of various supermarkets and large retail shops in Kasarani Constituency. A total of 150 respondents were sampled through simple random sampling. The primary method of data collection involved distributing structured questionnaires via online surveys, with subsequent data analysis employing descriptive, correlation, and regression analyses, leading to tabulated results. In the findings, Respondents demonstrated moderate influence from influencer marketing, reflecting substantial awareness and engagement, particularly in considering influencer-endorsed products, underscoring its effectiveness in shaping consumer decisions. The study found a substantial correlation between influencer marketing and consumer behaviour in the FMCG industry. The study's correlation and regression analyses unveiled a statistically significant positive relationship between influencer marketing and consumer loyalty, with Pearson’s Rho of .635 and a P-value less than 0.05 (P<0.05). The model explained about 40.3% of the variance in consumer loyalty. This suggested that influencer marketing not only attracted consumers but also significantly contributed to maintaining their loyalty, fostering enduring customer relationships. Consequently, the study recommended the development of industry guidelines for influencer marketing practices to enhance transparency and authenticity and for businesses in the FMCG sector to strategically integrate influencer marketing to boost brand awareness, engagement, and customer loyalty. The study faced limitations in self-reporting through questionnaires and a narrow focus on influencer marketing, thus, future studies should explore broader factors influencing consumer loyalty and examine diverse industries and regions to enhance generalizability and consider deeper psychological aspects of loyalty.