Figure 1: Artevelde University College logo ARTEVELDE UNIVERSITY OF APPLIED SCIENCES How do Instagram influencers affect the consumer buying behaviour of Gen-Z? Jalean Wansi International Office Management BAP coach: Eef Scheerlinck, Elke Huyghebaert Artevelde University of Applied Sciences, Kantienberg 66, 9000 Ghent How do Instagram influencers affect the consumer buying behavior of Gen-Z? | Jalean Wansi 1 ARTEVELDE UNIVERSITY OF APPLIED SCIENCES How do Instagram influencers affect the consumer buying behaviour of Gen-Z? Jalean Wansi International Office Management BAP coach: Eef Scheerlinck, Elke Huyghebaert Artevelde University of Applied Sciences, Kantienberg 66, 9000 Ghent How do Instagram influencers affect the consumer buying behavior of Gen-Z? | Jalean Wansi 3 PREFACE With this research paper, I am completing the study of International Office Management. Consequently, I would like to thank the individuals who have supported me during the process of developing this research paper. First and foremost, I would like to thank my coach, Eef Scheerlinck. In addition, I would like to thank my secondary coach Elke Huyghebaert. I could at all times rely on swift advice, guidance, and feedback. Even during the difficult circumstances of the current COVID-19 crisis, I felt supported at all times. Next, I would like to thank IMA for welcoming me into the company and treating me as one of the team for the limited amount of time that I spent at the agency. Additionally, I want to thank Paulina Studniarek (Influencer Development Manager and Internship mentor) to allow me to join the world-leading Influencer Marketing Agency. Joining the Influencer Development team gave me the source of inspiration for my research question. With the support of Paulina and my buddy Maxime Van Bakel, I was able to work on my research during office hours and got the green light to finish my internship earlier than anticipated to focus on this research. Ultimately, I would like to thank my at-home support system for motivating and encouraging me to keep going. EXECUTIVE SUMMARY The Influencer Marketing Agency (IMA) grew from a fashion inspiration platform to the leading global agency for influencer marketing that it is today. On a daily basis, the agency connects brands to the most influential bloggers, vloggers and social media influencers on a global level. With the aim of creating unique and creative influencer marketing campaigns, the agency strives to achieve the predetermined marketing goals of their clients. Therefore, market-wide expertise and knowledge is from the utmost importance. As the digital social media environment is fast-moving, it is highly important to stay informed about the changes in the industry. The agency is exceedingly educated about the Millennials (born from 1980-94), as their workforce are mainly members of that generation. Yet, as Generation-Z (born from 1995- 2010) is growing older, and the eldest part of the generation is able to make consumer buying decisions, their importance is increasing. The problem the agency was facing was the lack of knowledge concerning Generation-Z. With the aim of educating and building a greater understanding towards the generation, the research question: “How do Instagram influencers affect the consumer buying behaviour of Gen-Z?” was created. Through the means of researching the core of influencer marketing: how it originated, the rise of Instagram, how influencer marketing is conducted throughout the platform, breaking down the influencer tiers and taking a closer look at the future perspective of the social media tool, the basis of the research was built. Moreover, explaining the business strategy of the agency provides a clear depiction about the importance of knowing the market and audience in order to set up successful campaign’s. The breakdown of Generation-Z, the influencer marketing methods towards the generation, the process of the consumer buying behaviour (of Gen-Z) and the differences with the Millennials formed the main pillar of the desk research. The field research was conducted by the means of a qualitative research method. Namely, ten one on one interviews with members of Gen-Z who are able to make consumer buying decisions. Based on the findings of the desk and field research, the following advice can be given to the Influencer Marketing Agency: • Authenticity is key when selecting influencers for influencer marketing campaigns. • Continuously educate marketing teams about the wishes, needs and desires of the generation and mix generations within marketing teams • Stimulate influencers to remain creative by personalising promotional content, producing true life content and creating more video content • Create more meaningful campaigns who support social matters To conclude, the Instagram influencers affect the consumer buying behaviour of Gen-Z by sparking the attention towards the product or service of a particular brand. Resulting into member of the generation going on the hunt for more information and starting their consumer buying behaviour journey. How do Instagram influencers affect the consumer buying behavior of Gen-Z? | Jalean Wansi 5 TABLE OF CONTENTS Preface ............................................................................................................................ 4 Executive summary ........................................................................................................... 5 Table of contents .............................................................................................................. 6 Table of figures................................................................................................................. 7 Abbreviations ................................................................................................................... 7 Process reflection ............................................................................................................. 8 Introduction ..................................................................................................................... 9 Introduction to influencer marketing .........................................................................10 1.1 What is influencer marketing ....................................................................................... 10 1.1.1 History of influencer marketing ..................................................................................................... 11 1.1.2 Influencer jargon from A-Z ............................................................................................................ 12 1.1.3 The rise of Instagram ..................................................................................................................... 13 1.1.4 Influencer marketing via Instagram ............................................................................................... 15 1.1.5 Influencer’s breakdown ................................................................................................................. 17 1.1.6 Future perspective of influencer marketing .................................................................................. 24 Influencer Marketing Agency explained......................................................................25 2.1 Who is IMA? ............................................................................................................... 25 Generation-Z ............................................................................................................26 3.1 Gen-Z breakdown ....................................................................................................... 26 3.1.1 Influencer marketing towards Gen-Z ............................................................................................. 28 3.1.2 Consumer buying behaviour.......................................................................................................... 30 3.1.3 Consumer buying behaviour of Gen-Z ........................................................................................... 32 3.1.4 Differences between Millennials and Gen-Z.................................................................................. 34 Outline desk research .................................................................................................................................. 36 Field research ..................................................................................................................37 3.2 Analysis of qualitative data .......................................................................................... 37 3.2.1 Methodology ................................................................................................................................. 37 3.2.2 Objective of the interview ............................................................................................................. 38 3.2.3 Part one: background information ................................................................................................ 39 3.2.4 Part two: social media behaviour .................................................................................................. 40 3.2.5 Part three: Influencers and social media advertising .................................................................... 45 Conclusion of influencers and social media advertising .............................................................................. 48 3.2.6 Part four: consumer buying decisions ..........................................................................................