I feel like it’s expensive! Role of influencer type on price perception

Purpose Influencer marketing is a widely used digital marketing strategy. Marketers consider follower count as one of the key criteria when deciding promotion strategies using influencers. However, past studies have primarily studied the impact of follower count on engagement, reach and purchase-related outcomes. The effect of follower count on price perception has not been studied. This research employs the signaling theory to examine how an influencer’s follower count impacts the price perception of the product they endorse. Perceived competence and status explain this effect. Lastly, we elucidate the boundary condition for this effect through thinking styles. Design/methodology/approach We conducted three experimental studies (N = 460) to empirically test our theorization, employing different product categories and respondents from the USA and India. Findings The findings suggest that consumers are likely to perceive products promoted by mega (vs micro) influencers as more (vs less) expensive. The perceived competence and status serially mediate the relationship between influencer type and price perception. Thinking style moderates the hypothesized effect. Practical implications Given the growth in influencer marketing and its impact, this study has important implications. The findings suggest that marketers need to exercise caution and be conscious of the impact of social media influencers on their product perceptions. Originality/value This is possibly the first research study to investigate the effect of the types of influencers on consumers’ perception of price. We not only demonstrate the effect but also explain the process. The research advances the influencer marketing literature by understanding consumers’ perceptions from a pricing perspective.