A STUDY ON THE IMPACT OF INFLUENCERS IN TRANSFORMING E-COMMERCE

Abstract

The accelerating confluence of social media and online retail has fostered a revolutionary 
marketing paradigm: the influencer lead e-commerce model. This study investigates the 
significant and multifaceted impact of social media influencers (SMIs) on consumer purchasing 
decisions and the resulting growth of this e-commerce format, with a special emphasis on the 
unique consumer dynamics of Coimbatore city. Influencers, leveraging their perceived 
credibility and community trust, have emerged as pivotal intermediaries, offering personalized 
product discovery and authentic endorsements that eclipse traditional advertising. However, 
despite the powerful sales-driving effect, this trend raises critical questions regarding the 
transparency of paid promotions, the authenticity of endorsements, and the long-term efficacy 
of this model across diverse demographic groups. This research utilizes both primary survey 
data collected from respondents in Coimbatore and secondary data from existing literature to 
understand the benefits, barriers, and perceived trustworthiness of influencer-endorsed 
products. The analysis highlights that influencers strongly affect buying decisions across 
various demographic segments, while simultaneously revealing a moderate level of concern 
regarding transparency. The findings provide valuable insights for brands, digital marketers, 
and regulatory bodies to formulate transparent, targeted, and effective influencer marketing 
strategies, thereby ensuring responsible and sustainable growth of e-commerce in Coimbatore 
and beyond.