2 Literature Review
3.3 The Interview
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3.3 The Interviews
In addition to distributing surveys, in-depth interviews will also be conducted in the hope to provide supplementary insights for this study regarding the differences in consumer perception regarding celebrity and KOL endorsers. Three interviews will be conducted among professionals from various fields in the public relations and event planning industries. Furthermore, the author aims to provide not only first-hand insights from respondents, but also to share the essence of their experiences and knowledges these experts have acquired over the course of their careers.
Interview Personnel #1 John (Alias), 48 years old:
A senior event planner with over 20 years of event planning experience. For his work, he does everything involve in making sure events would go smoothly including choosing locations, hiring caterers, arrange entertainment shows, and other vendors.
Interview Personnel #2 Amelia (Alias), 52 years old:
A senior public relation manager with over 30 years of public relation experience. For her work, she is responsible for handling all aspects of planned publicity campaigns and public relation activities including writing and producing press releases to organizing promotional events such as press conferences, open days, product launches, exhibitions, etc.
Interview Personnel #3 Beatrice (Alias), 42, years old:
A senior marketing specialist with over 15 years of marketing experience specifically in cosmetic and commodities industries. For her work, she conducts market research to find answers about consumer requirements, habits and trends. Furthermore, she also assists in outbound or inbound marketing activities.
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4
Results Analysis
1. Population Age Group Distribution
Table 4.1
The population age group consisted of approximately two-thirds (65.8%) Generation-Z female and approximately one-third (33.5%) Generation-Y so called
“millennials” female population, of which six percent comprises of twenty-five to thirty year old. Ages thirty and above comprises less than one percent population of this survey. Survey population size is 150 with four invalid responses.
0.70%
6.80%
26.70%
65.80%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
30+
25-30 22-25 18-22
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2. Population Occupation Distribution
Table 4.2
Two-thirds of the survey population were aged eighteen to twenty-two, which resulted in near all college level student occupations. Graduate school students accounted for thirty percent of total population, slightly higher than subsequent age group twenty-two to twenty-five; most likely been caused by wider span of graduate school age enrollment. 3.4 percent of survey population were graduate school students withholding full-time employment status simultaneously.
3. Population Income Distribution
Table 4.3 3.40%
30.10%
66.40%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
Student/Full-Time Employee Grad School College
0.70%
0.70%
0.70%
2.70%
95.20%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
30-40K 40-50K Above 50K 20-30K Under 20K
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95.2 percent survey population had income lower than 20K New Taiwan Dollars, with 2.7 percent population receiving income between 20K to 30K. Income of and greater than 30K comprises of 2.1 percent of total population. This large income imbalance is mainly due to survey population age distribution, with 92.6 percent population being students with no full-time income, hence receiving less than the minimum wage of Taiwan. The remaining 2 percent of income at 40K of higher is closer to the average national wage. Income distribution levels is directly related to one’s purchasing power and will influence the results of this review. In-depth analysis of income-purchase decision-making relations will be discussed further in this review.
4. Population Distribution Following Social Media Influencers and/or KOL (Key Opinion Leaders)
Table 4.4
More than three quarters of population uses social media tools to follow social media influencers and KOLs which includes, but is not limited to, celebrities, fashion-gurus, and bloggers. Approximately one fifth population does not follow social media influencers or KOLs. This percentage is quite high as research shows 93 per cent of eighteen to twenty-nine-year-old Taiwanese uses social media tools Facebook and Instagram on a regular daily basis. However, respondents of “no” is also highly doubtable, as it is increasingly impossible for any social media user to completely not see posts from Social Media Influencers and/or KOLs regardless if the user is an active follower of the two.
21.20%
78.80%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
No Yes
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5. Frequency of Which Respondents Check for Updates on Social Influencers and/or KOL;
In Response to “Yes” Respondents of Question 4
Table 4.5
More than one-third of respondents check their followed Social Media Influencers and/or KOL more than once per day. Approximately one-fourth of respondents checked for updates once per day. These two groups totaling approximately 60 percent may be regarded as “high-frequency update checking” since Social Media Influencers and/or KOL have lengthier update frequencies. The average time spent on Social Media platforms in Taiwan per person, per day is 122 minutes, which may help explain the high percentage mentioned above.
6.10%
15.70%
19.10%
24.30%
34.80%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%
Once/4-5Days Once/5+ Days Once/2-3 Days Once/Day Several Times/Day
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6. Main Reasons for Following Social Media Influencers and/or KOLs (Multiple selections are accepted)
Table 4.6
100 of 115 respondents whom follow Social Media Influencers and/or KOLs, accounting for 87 percent, do so as a casual hobby. As an increasing number of Social Media Influencers shape their topics to wider scopes and not only focusing on their original focused topic, “life-styles” have become a major trend in portraying these Influencer’s attitudes to appeal to broader audiences. Hence may explain how this increases the time spent on Influencer social material by common audiences. 69 of 115 respondents, accounting for 60 percent, uses this as a means to search for new product unboxing experiences. The same product may be reviewed multiple times by different Influencers, however, various styles and attitudes of unboxing experiences appeal to different audiences as well, which may explain why this is the top second reason. 54 of 115 respondents, accounting for 47 percent, uses this to learn about the most up-to-date events and products of the season. The combination of leisure (social media browsing) and learning about the newest trends is perhaps the reason this accounts for such high percentage. An increasing number of businesses utilizes this channel to optimize awareness on updates and therefore cooperates with Social Media Influencers to do so.
1 Friends with the social media
influencer
Find it a way to relax To gain more knowledge To understand the most up-to-date
trend and hot topics To search for unboxing article or video of products I’m interested in As hobby and to kill time
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7. Main Reasons for Not Following Social Media Influencers and/or KOLs (Multiple selections accepted)
Table 4.7
28 of 31 respondents, 90.3 percent, whom do not follow Social Media Influencers and/or KOL, have no interest in this area and therefore uses social media platforms for other purposes. 18 of 31 respondents, 58.1 percent, considers this activity as time consuming. This however may be biased due to the fact that a user may have been uninterested in this topic or influencer, causing the user to view this activity as time-consuming. 11 of 31 respondents, 35.5 percent, and 10 of 31 respondents, 32.3 percent, responded either being unfamiliar with influencers or does not support sponsored social material or paid ads.
10 11
18
28
0 5 10 15 20 25 30
I’m not a fan of sponsored post I’m not familiar with social media
influences
I feel like it is very time consuming I do not have this habit/hobby
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8. Positive Influences of Social Media Influencers and/or KOLs (Multiple selections accepted)
Table 4.8
105 of 146 respondents, 72 percent, viewed Social Media Influencers as a new hobby and overall positive effect on daily life. This itself is an arguable topic to some however, is not the focus of this study and therefore will be viewed as valid. 103 of 146 respondents, 70.6 percent, perceived Influencers as positive channels of new information. This may be due to the highly-saturated advertisements market in the modern world, and consumers will be more inclined to Influencers, and a sense of
“belonging” compared to traditional means of business branding or product communication. 92 of 146 respondents, 63 percent, believes it generates new topics and set future trends as a positive effect. It is important to note that trend-setting is deeply intertwined in each domestic culture and by embedding business’ marketing campaigns with influencers and/or KOL, trend-setting can be a major positive means for a whole market to shift in any direction. A similar view can also be seen, as 82 of 146 correspondents responded positively for receiving product messages from brands.
1
I do not think there is any positive influence
It helps brand deliver their messages to consumers
It creates new trend and generate new topics
It allows consumers and audiences to acquire knowledge and…
As a new hobby to kill time
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9. Negative Influences of Social Media Influencers and/or KOLs (Multiple selections accepted)
Table 4.9
125 of 146 respondents, 85.6 percent, viewed influencer marketing as negative impact, especially on the grounds of false or misleading information regarding a product. One of the setbacks of influencers is indeed low information transparency as influencers tend to trigger emotional product reviews and less on actual effects, data, or research. There is also a fine line between what is viewed as paid promotion and authentic reviews as often times nowadays it can be hard to tell, and also no existing law regulates such activity. On the other hand, 103 of 146, 70.5 percent respondents believe rather than doubting the authenticity of influencer reviews, a majority of consumers may blindly follower influencers. However, one can argue this has been the case as far as the word “celebrity” has been invented, and practically everything endorsed by famous individuals may be categorized as “influencer-marketing”. It goes without saying that celebrity branding is a multibillion-dollar market, such as the historically high advertising contract between singer Beyoncé and Pepsi for 50 million USD in 2012, and Pepsi’s stock having doubled since the campaign started. The remaining 60.3 percent respondents reported confusion amongst different influencers as the influencer market saturates rapidly.
1
88 103
125
0 20 40 60 80 100 120 140 I do not think there is any negative
influence.
It may cause confusions as each influencer/KOL may be promoting
several products from various…
It may cause audiences to blindly follow these influencers and KOL.
It may cause these influencers and KOL to exaggerate the benefits of
products in sponsored posts.
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10. Product Purchase Decision Influenced by Social Media Influencer and/or KOLs (Multiple selections accepted)
Table 4.10
82 of 146 respondents, 56.2 percent, responded being influenced by Social Media Influencers during the purchases of cosmetic products. Three reasons may be directly related to the reason why cosmetic product have a greater presence and importance compared to other products in the influencer market. Firstly, cosmetic products average cheaper in price than other products per piece, giving the market a diverse and vast variation of possibilities. Secondly, combined with a lower average price, cosmetic products also include various segments such as make-up, care-products, and consumables, creating different areas of expertise among influencers. Lastly, cosmetics change with seasons and months, hence the cycle is live and continuously dynamic, always giving influencers ever-lasting new updates.
44 of 146 respondents, 30.1 percent, responded having not been impacted in anyway by influencers in the decision-making process of product purchasing. This could easily be biased as consumers may also be influenced by influencers into “not”
purchasing a product, or avoiding a product/brand altogether if influencers choose to portray negative images of such. The remaining product distribution including food, clothes, daily essentials, and electronics account for less than one-third of total respondents, but still may represent a large market in terms of purchasing power such as electronics.
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11. Average Price of Product Purchased Influenced by Social Media Influencers and/or KOLs
Table 4.11
The majority of products purchased that were influenced by influencers and/or KOL average around NT$ 500 per piece, indicating that these products are more pointed towards daily essentials or frequently changing products, such as clothing, which often have lower price tags. Commodities such as household electronics are mostly in the higher price ranges (< NT$ 1,000) therefore may or may not be heavily involved by influencers. One can also conclude that lower priced items may be triggered easily by influencers’ reviews whereas higher priced items tend to trigger logical thinking and therefore are not heavily reliant on only Social Media Influencers.
However, this data cannot conclude that higher priced items, such as phones, cars, or real-estate are not influenced by influencers, which is often purchased a greatly lower frequency.
0.70%
1.40%
6.20%
21.20%
70.50%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%
Above 3,000 2,001-3,000 1,001-2,000 500-1,000 Under 500
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12. The habit of using cosmetic products
Table 4.12
13. The frequency the respondent wear makeup
Table 4.13 25.60%
74.40%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%
No Yes
8.80%
14.70%
34.30%
42.20%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Once/Month Once/Week Everyday Several Times/Week
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14. Cosmetic Products Purchase Decision Influenced by Social Media Influencers or KOLs
Table 4.14
More than two-thirds of respondents have been or are influenced by Social Media Influencers during the process of purchasing cosmetics. This not only is most vivid in the 21st century with the introduction of video platforms such as YouTube and Instagram, where cosmetic brands are no longer just endorsed by a celebrity, but often gain greater traction through local influencers. This perhaps is largely due to the vital role of local influencers being able to relate to each market’s local population closer than that of a single celebrity. It is also perhaps the varying suitability of cosmetics due to different skin types, ages, purpose, price range, and etc., that influencers may choose a specific area and only relate to those audiences.
29.20%
70.80%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%
No Yes
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15. Reasons for Purchases of Cosmetics Influenced by Social Media Influencers and/or KOLs (Multiple selections accepted)
Table 4.15
69 of 146 respondents, 47.3 percent, responded to Social Media Influencers affecting their purchasing decisions of cosmetics through simply a trigger of interest into trying out the product. This is may be an argument for rational-irrational shopping habits, as the involved emotions of “buying” are usually complex and exact reason unattainable. 44 of 146 respondents, 30.1 percent, believed products recommended by influencers were of high value. This in turn means that the consumer has deep trust in the given influencer’s image and thus rely heavily on the trust itself. Well-known food critics have similar appeals to consumers in that the truthfulness of products/foods reviews are most vital and if once lost, is rarely fixable. 34 of 146 respondents, or approximately a quarter of consumers responded having a coincidence between the endorsed brand and self-interest of a brand.
1
24 34
44
69
0 10 20 30 40 50 60 70 80
A friend recommended this social media influencer/KOL.
I’m a fan of this social media influencer/KOL.
The recommended product just happened to be from my favorite cosmetic brand.
I believe the product recommended by this social media influencer/KOL will be a…
The sponsored post triggered my desire to try out the product.
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16. Reasons of Not Purchasing Product Endorsed by Social Media Influencers or KOLs (Multiple selections are accepted)
Table 4.16
Of the remaining respondents from the previous question above whom expressed that they were not influenced by Social Media Influencers into making successful purchases for cosmetics, the majority reason was due to a lack of demand for the product itself and hence does not prove to be linked with influencer effects. The second top reason is the consumer being used to conducting product research on their own basis which may prove itself biased if the research involves material created by influencers and not plain science. The least possible reason is due to consumers being biased against products endorsed by influencers and labeling so as inferior or unworthy products. This reason has increasingly become an issue as an increasing number of products are being sponsored by influencers of all magnitudes, from local individuals to international celebrities.
21 25
28
0 5 10 15 20 25 30
I do not find it credible as it is a sponsored post.
I prefer to conduct my own research when it comes to selecting and
purchasing products.
I’m not interested in the product. / I do not have a demand for this product.
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17. Please take a close look at the following ad and select the best fit price range for the promoted product in the ad. Products shown in each advertisement are different.
Product Name: Dior Addict Liquid Lipstick Market Price: NT$ 1,100
Table 4.17: Advertisement A (Celebrity)
Product Name: Lancôme Tient Miracle Foundation Market Price: NT$ 2,000
Table 4.18: Advertisement B (Celebrity) 6.20%
11%
12.30%
27.40%
43.20%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
3K+
2-3K
<1K 1.5-2K 1-1.5K
2.10%
9.60%
22.60%
25.30%
40.40%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
<1K 3K+
1-1.5K 2-3K 1.5-2K
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Product Name: Rimmel Scandaleyes Mascara Market Price: NT$ 199
Table 4.19: Advertisement C (Celebrity)
Product Name: Dior Addict Liquid Lipstick Market Price: NT$ 1,100
Table 4.20: Advertisement D (Social Media Influencer) 2.70%
5.50%
16.40%
22.60%
52.70%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
3K+
2-3K 1.5-2K 1-1.5K
<1K
0.70%
0.70%
0.70%
15.80%
76.70%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
3K+
2-3K 1.5-2K 1-1.5K
<1K
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Product Name: Chanel Healthy Glow Foundation Market Price: NT 1,990
Table 4.21: Advertisement E (Social Media Influencer)
Product Name: 1028 Hook Mascara Market Price: NT$ 390
Table 4.22: Advertisement F (Social Media Influencer) 0%
2.10%
8.20%
34.90%
54.80%
0% 10% 20% 30% 40% 50% 60%
3K+
2-3K 1.5-2K 1-1.5K
<1K
6.80%
17.80%
20.50%
26.70%
28.10%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
3K+
<1K 2-3K 1-1.5K 1.5-2K
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18. Please take a close look at the following ad and select the best fit feature or quality for the promoted product in the ad.
Product Name: Guerlain #77 Geraldine Lipstick Market Price: NT$ 1,700
Table 4.23: Advertisement 1 (Celebrity)
Product Name: Shu Uemura Lightbulb Fluid Foundation Market Price: NT$ 1,600
Table 4.24: Advertisement 2 (Celebrity) 6 Limited product and difficult to acquire Easy to purchase it from various channel Delicate packaging Limited product and difficult to acquire Not so pigmented Very pigmented Easy to purchase it from various channel Expensive
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Product Name: 1028 Miracle Mascara Market Price: NT$ 399
Table 4.25: Advertisement 3 (Celebrity)
Product Name: Bobbi Brown Milly Wow Limited Edition Lipstick Market Price: NT$ 1,050
Table 4.26: Advertisement 4 (Social Media Influencer) 8 Limited product and difficult to acquire Not so pigmented Very pigmented Easy to purchase it from various channel Expensive
Limited product and difficult to acquire Not so pigmented Expensive Delicate packaging Affordable price Easy to purchase it from various channel Very pigmented
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Product Name: Chanel Whitening Makeup Base Market Price: NT$ 1,560
Table 4.27: Advertisement 5 (Social Media Influencer)
Product Name: L’Oreal Infallible Les Chocolats Liquid Lipstick Market Price: NT$ 400
Table 4.28: Advertisement 6 (Social Media Influencer)
7
Limited product and difficult to acquire Expensive Delicate packaging Not so pigmented Very pigmented Easy to purchase it from various channel Affordable price Limited product and difficult to acquire Expensive Easy to purchase it from various channel Delicate packaging Affordable price Very pigmented
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Lawrence Celebrity Dior Addict
Liquid Lipstick NT$ 1,100 1 – 1.5K (43.20 %)
1.5 – 2K (27.40 %) Ad B Julia
Roberts Celebrity Lancôme Tient
Miracle Foundation NT$ 2,000 1.5 – 2K (40.40 %)
2 – 3K (25.30 %) Ad C Cara
Delevingne Celebrity Rimmel Scandaleyes
Mascara NT$ 199 < 1K Table 4.29: Compiled Responses for Questionnaire 17
Ads Endorser
(Celebrity / KOL)
Brand / Product Name
Product
Price Product Qualities Ad 1 Fan
Bing Bing Celebrity Guerlain #77
Geraldine Lip Stick NT$ 1,700 Pigmented; Expensive;
Delicate Packaging Ad 2 Rainie
Yang Celebrity Shu Uemura Lightbulb
Fluid Foundation NT$ 1,600 Expensive; Easy to Purchase; Pigmented
Ad 3 Dee Hsu Celebrity 1028
Miracle Mascara NT$ 399 Expensive; Easy to Purchase; Pigmented
NT$ 1,050 Pigmented; Easy to Purchase; Affordable
NT$ 400 Pigmented; Affordable;
Delicate Packaging Table 4.30: Compiled Response for Questionnaire 18
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Table 4.29 and Table 4.30 are compiled responses for questionnaire 17 and 18.
In Table 4.29, Advertisement A, B and C are advertisements starring well known celebrities including Jennifer Lawrence, Julia Roberts and Cara Delevingne. For Advertisement A and B, an average of 61.65% of the respondents evaluated the endorsed products being in the price range of NT$1,000 to NT3,000. For Advertisement D and E, an average of 91.10% of the respondents evaluated the endorsed products being in the price range of less than NT$1,000 to NT$ 1,500. In comparison, we can
In Table 4.29, Advertisement A, B and C are advertisements starring well known celebrities including Jennifer Lawrence, Julia Roberts and Cara Delevingne. For Advertisement A and B, an average of 61.65% of the respondents evaluated the endorsed products being in the price range of NT$1,000 to NT3,000. For Advertisement D and E, an average of 91.10% of the respondents evaluated the endorsed products being in the price range of less than NT$1,000 to NT$ 1,500. In comparison, we can