The Role of Price Perception in the Effect of Instagram Influencer Perception on Brand Equity and Purchase Intent

Abstract

Purpose - The purpose of this study is to investigate the effects of influencer perception on Instagram on consumer-based brand equity and purchase intention, and to examine the moderating roles of price perception and brand equity dimensions in these relationships.
Design/ methodology/approach - A quantitative research design was adopted. Data were collected from 487 Instagram users using a survey method. Validity and reliability analyses, correlation analysis, and hypothesis testing were conducted using SPSS and SmartPLS, employing partial least squares structural equation modeling (PLS-SEM).
Findings - Among the dimensions of influencer perception, trustworthiness was found to have a positive and significant effect on purchase intention (β = 0,099), whereas attractiveness exerted a significant negative effect (β = −0,181), and the effect of expertise was not statistically significant. All dimensions of influencer perception positively and significantly influenced all sub-dimensions of consumer-based brand equity. In turn, all brand equity dimensions significantly and positively increased purchase intention. Furthermore, price perception played a significant moderating role in the relationship between trustworthiness and purchase intention, as well as in the effects of influencer perception on brand equity.