Effect of Influencer Marketing and Peer Pressure on Compulsive Buying Behavior through Panic Behavior Disorder: Empirical Evidence from Cosmetic Industry of Pakistan

Abstract

In the contemporary era, prodigious growth has been experienced by beauty products due to the influencer marketing and peer pressure. Various studies showed that cosmetic companies, marketing agencies, and   influencer marketing aim to determine significant factors affecting the Buying Behavior and recommendation of consumers in the beauty and cosmetics industry.  The objective of current research study is to examine the effect of influencer marketing and peer pressure on compulsive buying behaviour through panic behaviour disorder. Moreover, the study would explore the consumer panic behavior disorder related to cosmetic products. The study has conducted an in-depth contemporary literature review regarding the influence of peer pressure and influencer marketing towards compulsive buying behavior via panic behaviour disorder. Hence, data was collected by gathering primary data from 319 female student respondents from Lahore. Structural Equational Modeling (SEM) was used as an appropriate methodology because it suitably identifies the causal relationship between factors. Moreover, the validity and reliability of the scales was examined using Confirmatory Factor Analysis (CFA). The data would be analysed using AMOS and SPSS in order to get results of hypothesis. The study results showed that influencer marketing (stimulus factor) arouse panic behavior disorder (Organism), which lead the customer to response behavior in the form of compulsive buying behavior. One of the important contribution of the study is the primary analysis of effect of influencer marketing and peer pressure on compulsive buying behaviour through panic behaviour disorder which have never been tested by previous researchers. The research study would be helpful to contribute different ideas and knowledge to cosmetic companies, compulsive buyers and marketing researchers. Hence, it would make researchers capable so they could get insight about consumers’ buying behaviour and devise different policies respectively.