Abstract

An evolution from industrial to a consumer-driven economy, and now to a knowledge economy, has transformed employment and income of individuals. Initially dominated by manufacturing and farming, the economy shifted to services by the 1950s. With the internet era, the knowledge economy gave birth to the creator economy, where individuals monetize their skills and interests online. Influencers are social media users with significant follower bases, who now act as a crucial component in marketing by leveraging their credibility and connectivity to affect consumer decisions, sales, and brand engagement. They are perceived as more trustworthy and relatable than renowned individuals, resulting in higher engagement rates. Companies increasingly use influencers to build brand awareness, positioning them as key brand ambassadors. Despite the growing use of influencers, research on their impact on customer loyalty remains limited. Existing studies focus on influencer characteristics such as attractiveness, trustworthiness, and credibility, which influence customer loyalty. The frequency and quality of communication between influencers and their audience also impacts loyalty to both the influencer and the brand. Studies show influencer marketing is effective for e-commerce goals, with variations based on gender and age. Customer equity comprising value equity, brand equity, and relationship equity significantly influences customer loyalty and mediates the relationship between customer experience and loyalty. This study aims to measure the impact of the three elements of customer equity on brands using influencers in e-commerce, thereby influencing customer loyalty. By addressing this gap, the study provides insights into the strategic role of influencer marketing activities in enhancing customer loyalty in e-commerce.
Keywords: Influencer Marketing Activities, Customer Loyalty, Influencer Marketing, E-commerce, Structural Equation Modelling