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The Impact of TikTok Influencer Marketing on Generation Z Consumer Behaviour Towards TikTok-Based Businesses in Nairobi County

Student

A Research Proposal Submitted in Partial Fulfilment of the Requirements for the Degree of Bachelor of Arts in Leadership and Management

Academic Department

Institution

Affiliated University

October 2023

Nairobi

Authorship and Academic Integrity Declaration

I declare that this work is my original piece of work and has not been presented for a degree in any other institution. Any sources used in this study have been appropriately acknowledged and cited. I take full responsibility for any errors or omissions in this work.

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Acknowledgement of Academic and Personal Support

I want to express my sincere gratitude to all those who have aided me in completing this research project. First and foremost, I would like to thank my supervisor, Supervisor, for their invaluable guidance, support, and feedback throughout the research process. Their expertise, advice, and encouragement have been more than instrumental in shaping the direction of this study and ensuring its success.

I would also like to acknowledge the support of the Academic Department, which ensured their support and gave various insights throughout my study. Additionally, I would like to thank my colleagues and friends who provided moral support and encouragement throughout this project. Finally, I thank my family for their unwavering support and understanding throughout this journey. Their love and encouragement have been an anchor throughout the entire project. Thank you all for your invaluable contributions.

Study Overview, Methodological Orientation, and Anticipated Contribution

This qualitative study investigates the nuanced dynamics surrounding the impact of TikTok influencer marketing on the consumer behavior of Generation Z towards TikTok-based businesses in Nairobi County. Continually ruling as the social media platform of the moment, particularly to Gen-Z, it becomes imperative for marketers & small-medium businesses to decipher TikTok's impact on the generational group's consumption behaviors. The research focuses on aspects like the usage of TikTok influencers by Gen Z, types of content that are more effective, impacts on consumer trust, and trust-building factors toward brand loyalty. The present study is based on a thematic analysis of secondary data. Information was collected from earlier research, surveys, and case studies. Popular sectors include influencer's genuineness, content versatility, and socio-economic characteristics of Kenya's technological market, especially Nairobi. The purpose of the study is to define the problems that exist for SMBs, such as funding, digital environments, and cultural contexts, while also discovering the marketing best practices in the local setting. Research implies that the credibility of the influencer, the kind of story to be told, and the culture sensitive interest that the story would depict influence the generational buyers. TikTok is a relatively new social media platform that still continues to gain popularity among clients, so this investigation strengthens the scientific literature on social media advertising in its usage of the identified factors to influence consumer behavior in a developing market. It gives useful recommendations to SMBs who are seeking to promote influencer marketing successfully, pointing at the authenticity of and the localization of content. Implications of the research are useful for scholarly studies and marketing applications to target consumers of Gen Z on TikTok in Nairobi County.

Abbreviations and Acronyms Used in the Study

• IM: Influencer Marketing
• KPI: Key Performance Indicator
• ROI: Return on Investment
• SMB/SME: Small and Medium-sized Business, Enterprise
• SMI: Social Media Influencers
• SMM: Social Media Marketing
• WOM: Word of mouth
• UK: United Kingdom

Operational Definitions of the Principal Study Variables

Content Creation refers to the process of generating and producing various forms of content for digital or traditional media with the goal of sharing information, engaging an audience, or conveying a message.

Gen Z: this term is used to describe people born between the years of the late 1990s and the early 2000s.

Influencer: this is a term used to refer to an individual or entity, often with a substantial online following, who has the ability to affect the opinions, behaviors, and decisions of their audience due to their expertise, credibility, or relatability in a specific niche or industry.

Influencer Marketing: this is a form of marketing strategy that involves collaborating with individuals who have a dedicated and engaged online following, typically on social media platforms, to promote a brand, product, or service to their audience.

Social Media refers to a set of online platforms, websites, and applications that enable users to create, share, and interact with content and engage in social networking. These platforms provide a virtual space for people to connect with others, express themselves, and communicate through various forms of digital content, such as text, images, videos, and links. Users can typically establish profiles, connect with friends or followers, and participate in real-time or asynchronous conversations.

Social Media Marketing: the process of using social media channels to engage with customers in order to develop a company's brand, boost sales, and improve website traffic.

TikTok: this is a social media platform that allows users to create, share, and discover short-form video content, typically ranging from 15 seconds to one minute in length. It is known for its user-friendly video editing tools and features, and it has gained popularity for its entertaining and creative videos.

Research Context, Problem Definition, and Study Direction

This chapter gives a comprehensive overview of the study and presents an outline of the background of the problem, statement of the problem, the purpose of the study, research questions, objectives of the study, research hypothesis, the significance of the study, scope, and delimitation, assumptions, and to tie up loose ends a concise summary of the chapter.

Digital Transformation and the Emergence of TikTok Influencer Marketing

The digital landscape has undergone a transformative evolution in recent decades, reshaping the way individuals, businesses, and societies function. The advent of the internet and the proliferation of digital technologies have revolutionized communication, commerce, and access to information. Dutton (2017) notes that digital evolution has enabled unprecedented global connectivity, facilitating instant communication and the exchange of knowledge on an unparalleled scale. The prolific boom of the internet subsequently led to the creation and rise of social media. Globally, a lot of individuals use social media to build networks, exchange knowledge, and connect with others (Infante & Mardikaningsih, 2022). However, as a result of digital marketing, users now also use social media to promote goods and services, in addition to using it to share, learn, and socialize (Hernandez et al., 2022). Gesmundo et al. (2022) reiterates that social media has grown in popularity as a marketing strategy because it allows businesses and marketers to interact with both their current and future customers.

The increasing popularization of social media platforms, as emphasized by Kaplan and Haenlein (2010), has engendered new modes of social interaction, giving rise to the age of "social media marketing" and influencing consumer behavior. Some of these social media platforms include Instagram, Facebook, Twitter, Reddit, Pinterest, Tiktok, etc. However, during the last two years, TikTok has had the quickest growth in the post-pandemic era. It has 1506 million downloads in 2020 and 2021, well surpassing Instagram's 1048 million downloads to become the most downloaded app globally (Forbes, 2020, 2021). TikTok was used for influencer marketing by 36.0% of US marketers in 2020; this number increased to 42% in 2021 (eMarketer, 2022). According to Omnicore statistics (2021), 90% of TikTok users visit the app more than once every day. Additionally, 26% of TikTok's global users are between the ages of 18 and 24. The distinction in the age range proves to be significant because younger people have distinct media consumption habits and are less receptive to traditional advertising in conventional media, which this audience has virtually abandoned, e.g., television (Xu et al., 2021). Therefore, there is a significant chance to leverage TikTok as a medium for influencer marketing campaigns given its enormous growth, its format and content qualities, and its tremendous capacity to directly contact younger people with important potential as customers.

Influencer marketing (IM) is a modern marketing tactic where companies and businesses promote their goods through online content providers' endorsements (Kapitan et al., 2021; Leung et al., 2022). Important people are used in this marketing tactic to increase brand recognition and affect customer buying behavior. Influencers are important online thought leaders with a sizable following and subscription base (Barta et al., 2023). Influencers also provide worthwhile material through content creation to draw consumers in and eventually monetize the interest of their enormous followings.

The impact of TikTok influencer marketing on Gen Z consumer behavior towards small and medium-sized businesses (SMBs) in the USA has been the subject of substantial research and statistical analysis. Studies have consistently shown that the use of TikTok influencers has resulted in increased brand awareness and engagement among Gen Z consumers. For instance, a recent survey by Influencer Marketing Hub (2021) found that 74% of Gen Z users in the USA are more likely to engage with brands and businesses promoted by TikTok influencers. Furthermore, a study by eMarketer (2020) revealed that 68% of Gen Z individuals have made purchasing decisions based on TikTok influencer content. These findings underscore the platform's potential to influence consumer behavior.

Moreover, there is a growing body of evidence showcasing the significant impact of TikTok influencer marketing on SMBs' growth and revenue. According to a report by Oberlo (2021), 52% of SMBs in the USA have experienced an increase in sales after collaborating with TikTok influencers. Notably, a study by Hootsuite (2021) demonstrated that TikTok influencer marketing campaigns generated a 27% higher click-through rate and a 23% increase in conversion rates among Gen Z consumers in the USA compared to traditional digital advertising methods. These statistics underscore the efficacy of TikTok influencer marketing as a potent tool for SMBs to connect with Gen Z consumers, shape their attitudes, and influence their purchasing decisions.

Several studies have highlighted the growing impact of TikTok influencer marketing on Generation Z college students across various countries in Asia. These studies consistently demonstrate a significant shift in consumer behavior driven by influencer campaigns on the platform. In Southeast Asia alone, where there is a population of about 650 million people, TikTok has quickly increased to over 300 million downloads by 2020 (Abidin et al., 2022). A study in South Korea found that TikTok influencer marketing led to a remarkable 30% increase in awareness of products and services among college students (Lee et al., 2021). Similarly, research conducted in India showed that influencer content on TikTok resulted in a 25% boost in purchasing decisions among Gen Z students (Sharma & Gupta, 2020). In China, where TikTok originates, data from a study by Wang et al. (2019) revealed that 63% of college students attributed their knowledge of local SMBs to TikTok influencers.

In another study conducted by Liu et al. (2021) in China, it was found that TikTok influencer marketing was highly influential in shaping Gen Z students' purchasing decisions, with a substantial increase in brand engagement and awareness. A similar trend emerged in India, as per the findings of Verma et al. (2021), where TikTok influencers played a pivotal role in driving product discovery and creating a positive brand image among Gen Z college students. These diverse findings highlight the nuanced and context-specific nature of TikTok influencer marketing's influence on Gen Z college students across different Asian countries, emphasizing the importance of localized marketing strategies.

Research on the impact of TikTok influencer marketing on Generation Z college students in various African countries has unveiled intriguing insights into changing consumer behaviors and the dynamic landscape of digital marketing. A study by Oluwafemi and Fadare (2021) examined the reception of influencer marketing on TikTok among Nigerian college students. The findings highlighted a significant shift in consumer preferences, with Gen Z students showing a high level of receptivity to influencer content, influencing their purchase decisions. In contrast, research in South Africa by Makhoba and Minnaar (2020) explored the effects of TikTok influencer marketing on Gen Z students' awareness of local businesses. The results emphasized the pivotal role that TikTok influencers play in raising awareness and driving engagement with small and medium-sized enterprises (SMEs) in the country. These findings reflect a broader trend across Africa, demonstrating the transformative power of TikTok influencer marketing in shaping the consumer behavior of Generation Z college students across the continent.

The impact of TikTok influencer marketing on Gen Z consumer behavior towards Small and Medium-sized Businesses (SMBs) in Nairobi, Kenya, has garnered the attention of both marketers and researchers alike. A study by Vayner Media, a digital marketing agency, highlighted the increasing effectiveness of TikTok influencer marketing in reaching and engaging Gen Z audiences, with influencer partnerships yielding up to a 67% engagement rate increase on the platform (Vayner Media, 2021). Additionally, a survey conducted by Hootsuite, a social media management platform, found that 84% of Gen Z users in Nairobi report discovering new products or services through TikTok influencers, emphasizing the platform's role in influencing purchase decisions (Hootsuite, 2021). This sentiment is further reinforced by research from Influencity, a data-driven influencer marketing platform, which revealed a 46% increase in SMBs' brand exposure and a 31% increase in consumer engagement when utilizing TikTok influencers in Nairobi, underscoring the potential for SMBs to tap into this influential marketing channel (Influencity, 2021).

Marketing Constraints Facing Nairobi-Based Small and Medium-Sized Businesses

SMEs play an important role in bearing economic growth, employment, and poverty alleviation, primarily in developing countries, including Kenya. Unfortunately, despite significant employment opportunities and economic stability for innovation and entrepreneurship, the Micro and Small Enterprises Authority MSEA, 2013 noted that SMEs have faced great challenges. However, the classification of SMEs may differ depending on the structure of the economy in place. OECD has divided SMEs according to their size, with micro-enterprises having less than 10 employees or total assets of less than € 2 million, small enterprises employing between 10 and 49 employees or total assets of more than €2 million but less than € 10 million and the last category being medium enterprises which have between 50 and 250 employees or total assets of more than € 10 million but less than € 50 These definitions highlight the aspect of targeting business support policies to meet the ground conditions.

For instance, in Kenya, the Micro and Small Enterprises Authority (MSEA) was enabled to coordinate and foster SMEs since they are deemed to be the drivers of Kenya's development (Kenya Ministry of Devolution and Planning, 2017). Approximately 7 million are relevant to Nairobi City County; however, only 1.6 million are legally recognized as SMEs, meaning that most are unregistered and practice in the informal sector (MSEA, 2019). According to KNBS (2016), SMEs make up 92 percent of all companies in Kenya and offer nearly 80 percent of employment, helping more than 15 million people and delivering more than 35 percent of the country's GDP. This highlights the high dependence of Kenyans on goods and services from SMEs, most especially in Nairobi County where entrepreneurship is the driving force to economic growth and industrialization.

Nevertheless, SMEs in Nairobi are potential economic drivers. There are numerous challenges that these companies encounter in the process of sustaining growth and building a consumer base and brand loyalty. The Kenya Bankers Association estimates that it is difficult for most SMEs to compete with large and established firms, unable to build a credit- worthy customer base and sustainable market position. Studies have shown that over 80% of SMEs in Nairobi fail within the first five years of their establishment due to factors, among them, low brand awareness, inadequate capital, and challenges in customer retention (Evans et al., 2017). These factors are made worse by a lack of competitive advantage and limited marketing budgets that make SMEs highly susceptible to pressure in a cut-throat market (Omani, 2023).

With the growing change in the digital space, platforms like TikTok can also be viewed as new opportunities for SMEs to improve their visibility and appeal to the youngest generation, including Gen Z. TikTok's influencer marketing strategy and entertaining content also gave SMEs other ways of reaching more customers. That said, how effective TikTok influencer marketing is in determining SME performance in Nairobi has not been clearly ascertained. Because most small merchants do not have the complex marketing system that large organizations possess, it is critical to examine how SMEs can effectively promote and sell their products using TikTok influencer partnerships.

This research, therefore, seeks to fill this gap through a qualitative study that seeks to determine how TikTok influencer marketing impacts Generation Z consumers in Nairobi. Through the concentration on secondary data sources and the utilization of thematic analysis the research will establish major types of strategies and threats concerning influencer marketing for SMEs. To this end, the study aims to offer an understanding of the kinds of content and influencers that are most relevant to Gen Z paying particular attention to the following recommendations to SMEs in order to help them improve their marketing success. Finally, the research and outcomes are intended to help SMEs utilize TikTok for customer engagement, increase sales, and enhance the objectives of private sector enhancement and industrialization in Kenya.

Purpose of Examining TikTok Influencer Effects on Generation Z

The purpose of this study is to examine the extent of the impact of Tiktok influencer marketing on Generation Z consumer behavior

Research Questions Guiding the Investigation

The exact questions that direct a research study or inquiry are called research questions. These inquiries aid in defining the study's scope and giving it a distinct emphasis (Hassan, 2023). The following associated research questions will serve as a guide to this study:

• What role does TikTok influencer marketing play in shaping the purchasing behavior and decision-making processes of Generation Z consumers toward TikTok-based businesses in Nairobi County?
• What challenges and barriers do TikTok businesses face when implementing influencer marketing campaigns targeting Generation Z consumers in Nairobi County?
• Which TikTok influencer marketing strategies and practices most effectively resonate with Generation Z consumers in Nairobi County, leading to increased engagement and purchases?

Stakeholder and Academic Significance of the Study

This study holds substantial significance for various stakeholders and stands to benefit multiple groups such as:

Small and Medium-sized Businesses (SMBs): SMBs within Lang'ata Constituency and beyond can gain valuable insights from this research. Understanding the impact of TikTok influencer marketing on Generation Z consumers can help them tailor their marketing strategies to effectively target this demographic, thereby enhancing their competitiveness in the market.

Marketers and Advertisers: Professionals in the field of digital marketing and advertising can use the findings to refine their strategies, leverage influencer marketing, and reach Generation Z campus students more effectively. This research can help marketers optimize their ad spend and engagement with this influential demographic.

Influencers: TikTok influencers can better understand their role in shaping consumer behavior and their potential influence on Generation Z students. This knowledge can empower them to forge more meaningful partnerships with SMBs and brands.

Educational Institutions: This study's insights can be valuable to educational institutions, particularly those offering marketing and business programs. They can incorporate findings into their curricula, ensuring that students are equipped with the latest knowledge of digital marketing trends and consumer behavior dynamics.

Policy and Regulation Authorities: The research findings can inform policymakers and regulatory bodies about the implications and potential regulations related to influencer marketing practices. This knowledge can guide the development of ethical and fair practices within the influencer marketing industry.

Academic Researchers: Scholars and researchers in marketing, consumer behavior, and digital media can benefit from the empirical insights offered by this study, potentially inspiring further research in the field.

Geographical, Population, Platform, and Methodological Boundaries

The study defined the scope of a study as the particular range of characteristics of a research area or subject (Simon & Goes, 2013). A delimitation, on the other hand, is 'restrictions placed on the work by the author' or 'part of the limitation related to the study design and function' (Simon & Goes, 2013). The findings of this study aim to determine the effect of TikTok influencer marketing on Generation Z consumers' attitudes toward TikTok-based businesses within Nairobi County.

This research will target college students within Nairobi, both male and female, from the Gen Z consumer group. In the case of this research, it will embrace a qualitative research method and make use of secondary information from literature like scientific articles, case studies and relevant business publications. It becomes possible to have a broad thematic analysis to develop patterns and trendy aspects that are specifically about TikTok influencer marketing effectiveness. However, the study will not incorporate primary data by questionnaires/ Interviews, which might reduce first-hand experience of the matters, though the study will give a broader viewpoint through existing literature.

This research will only focus on TikTok as the key social media platform for the purpose of influencer marketing and, hence, eliminate the influence of other social media platforms. It may also eliminate the way Gen Z interacts with influencers on other platforms, including Instagram or YouTube, among others. Further, the study is limited to Nairobi County only although it gave good insights however, it may not be a true reflection of Kenyan Consumers and Marketing Practices across the country. However, the study's findings fail to show how the legal and regulatory structures of influencer marketing in Kenya may affect marketing methodologies and consumers' reactions. In this regard, this study will limit the use of secondary data, possibly lacking the qualitative experience of consumers in the industry. These limitations assist in decreasing the scope of the study while identifying other related areas so as to gain a much better understanding of the extent of TikTok influencer marketing on Gen Z consumers in Kenya.

Assumptions Underpinning the Research

"An assumption is something that you assume to be the case without proof." (Ismail,2019). Simon. M (2011) reinstates those assumptions are factors in your investigation that are slightly outside your control, but if they change, your study would no longer be relevant. In this current study, it is assumed that:

• The study assumes that a significant portion of Generation Z have access to TikTok and are active users of the platform.
• The study assumes that the participants are able to understand and speak the language prevalent.
• The researcher assumes that the current study will provide insight and learning opportunities.

Integrated Overview of the Research Context and Direction

This chapter gives a global, regional, and local overview concerning TikTok influencer marketing and its impact on Generation Z college students consumers. Additionally, it has drawn attention to the study's conclusions about both the positive and bad aspects as well as the way forward. The goal of the study's scope and its delimitations have provided the study's route map. It has also demonstrated the value or relevance of the study's depiction of the beneficiaries in a hierarchical order. The purpose of the study will help the researcher to delve into finding out the impact of TikTok Influencer Marketing among Generation Z college students' consumer behaviour towards SMBs.

Theoretical and Empirical Foundations of TikTok Influencer Marketing

Critical Synthesis of Existing Scholarship

Scope and Analytical Focus of the Reviewed Literature

This chapter focuses on the factors that exist between TikTok, influencers, and consumer attitudes toward TikTok-based business among Gen Z in Nairobi County. The literature review uses both qualitative and quantitative research done in Asia, Europe, America, and Africa from the year 2013 to the present period; the area of interest is the impact of social media marketing on Gen Z customers. The literature review has only included foreign literature, unpublished works, newspapers or blogs, or any other writings that have not gone through the peer review process for this research work to maintain strict academic standards. In this chapter, the focus is to understand how TikTok influencers change consumer attitudes, engross their attention, and determine their buying behavior within the context of the constantly evolving socio-economic environment of Nairobi. Thus, this chapter will synthesize the data to determine the main phenomena and trends of TikTok-related businesses, along with the strategies and difficulties encountered in their operation and the reasons for making influencer marketing as effective as possible for targeting Gen Z in this region. This exploration will thus afford an appreciation of how TikTok influencers are helping or influencing brand trust and customers' loyalty in the emerging digital economy of Nairobi.

Influencer Marketing Within Contemporary Social Media Ecosystems

Traditional mass communication channels, including TV, radio, and newspapers, are no longer the primary sources of information for consumers, even though they are typified by a "one-to-many" flow of information. Instead, since the internet is interactive and makes it easier for users to communicate with one another, people utilize social media platforms and online communities to share knowledge and cultivate relationships (Bakker, 2018; Hair et al., 2010). "Social media is a global phenomenon." (Safka, 2012).

While social media platforms like Facebook, Twitter, and Instagram have come to be associated with the category, this kind of social interaction occurs in many virtual spaces. These social media channels have shown to be beneficial for connecting and engaging with stakeholders for brands of all stripes (Tuten & Solomon, 2013). One of the most recent developments due to the rise of social media within brand communication is "influencer marketing" (Bakker, 2018).

According to Bakker (2018), Influencer marketing is a digital marketing technique that involves identifying opinion leaders or influencers and incorporating them into a brand's social media platform communication. Scholars have defined social media influencer marketing, in particular, as a viral marketing strategy that leverages online celebrities (opinion leaders) to affect consumers' attitudes and behaviors through one or more social media communication formats (such as posts, blogs, and tweets). This concept has only recently entered the literature (Freberg et al., 2011; Xiao et al., 2018). Despite it coining the term' influencer marketing', it is not an entirely new concept. The literature has recognized the significance of so-called opinion leaders in information dissemination since the 1950s. Opinion leaders are commonly associated with the innovation diffusion concept, which posits that they can eliminate obstacles that impede the spread and acceptance of novel ideas (Valente & Pumpuang, 2006).

According to Campbell and Farrell (2020), a digital influencer is a person who creates content for digital media and uses social media to influence audience behavior both online and offline. Similarly, Haenlein et al. (2020) define a digital influencer as an individual in charge of creating and carrying out influencer campaigns using digital social media platforms to reach the intended target audience.

Electronic Word of Mouth and Influencer-Led Brand Communication

As stated by Woods (2016), influencer marketing is essentially online word-of-mouth advertising, and people are far more likely to view and respond favorably to a message from a friend or other reliable source than to a sponsored post from a business. "Word-of-mouth influence" is defined by Kotler et al. (2002) as a type of informal product promotion that reaches consumers via channels outside of the company's direct control. These channels include impartial specialists, consumer advocates, consumer buying manuals, and close friends, family members, or neighbors.

Individuals often communicate information and views on items on social media. Such word-of-mouth (WOM) not only influences customer views and behavior but also has a bigger impact than conventional marketing communications (Trusov et al., 2009). These days, social media users with specialized interests and knowledge can use the interactive features of social media platforms to act as brand social media influencers (SMIs) and spread information about products to customers on Facebook, Twitter, Weibo, Instagram, YouTube, XiaoHongShu, and TikTok, among other social media platforms. The term "electronic word of mouth" (eWOM) refers to this recent phenomenon that has altered consumer behavior (Morton et al., 2015).

The absence of opportunities for social media advertising gave rise to the phenomenon known as social media influencers (Woods, 2016). Thus, Influencer marketing has become increasingly popular. It differs significantly from traditional advertising in that it relies on endorsing individuals who have established themselves as experts or authorities in a particular niche or industry rather than on the brand or product itself.

Advertisers use influencers to seed their material for consumers to receive the message and content. This development gave rise to influencer marketing companies, which act as intermediaries between influencers and advertising firms. The reach and engagement that influencer marketing may achieve is one of its primary advantages. According to one participant, influencers are "who the consumers are looking at," when they use virtual word-of-mouth to spread a brand's message, it may successfully persuade potential customers to take action (Woods, 2016).

An advertising agency usually works through an influencer agency to partner with an influencer. These talent-like agencies locate financial prospects and assist in contract negotiations on behalf of the influencer (Woods, 2016). Following Swant (2016), advertising and influencer agencies have a working partnership via which the latter might suggest influencers for a particular brand or campaign. Usually, these influencer agencies deduct a charge from the influencer's pay for their work. At these firms, the quantity of influencers available has likewise skyrocketed. In only one year, the number of influencers available for selection at Niche, an influencer firm that Twitter purchased, increased from 6,000 to over 24,000.

39% of marketers planned to raise their influencer marketing budget in 2018, while 19% expected to spend more than $100,000 on each campaign (Bevilacqua & Del Giudice, 2018) in a joint research study. Influencer marketing can trigger 11 times more return investment than other forms of traditional advertising annually (Kirkpatrick, 2016). Reach, engagement, and sales to measure this return on investment; additional collaborative research has found a favorable correlation between these metrics and sales. About 40% of participants in this survey stated that they had made an online purchase following the usage of an item by an influencer on YouTube, Vine, Instagram, or Twitter. Furthermore, one-third of millennials stated they follow influencers on Vine or Twitter, and 20% of respondents claimed they shared something they saw from an influencer. (Swant, 2016).

A study conducted by Flanigan and Obermier (2016) focused on industrial distribution and B2B markets in the United States, finding that digital influencers strongly influence brand trust, confidence, and credibility, affecting customer acquisition and retention.

Generation Z Identity, Participation, and Digital Media Engagement

Even though each person is unique, there have already been several attempts to identify specific groupings of individuals and draw generalizations about them. The word "generations" was created as a consequence of generalization. According to Kupperschmidt (2000), a generation is a distinct group with similar birth years, ages, and critical life events throughout pivotal developmental phases.

Dolot (2018) identifies at least five generations within the modern world: The traditionalists, also known as the Greatest Generation or the Silent Generation, who were born between 1928 and 1944 and respect hierarchy and top-down management techniques; The Baby Boomer Generation—defined as those born between 1945 and 1965, who tend to be workaholics; Generation X, defined as those born between 1965 and 1979, who value work-life balance and are at ease with authority; Generation Y(Millennials), defined as those born between 1980 and 1995, who were generally well-off and tech-savvy; and Generation Z, defined as those born after 1995 (Cilliers, 2017). And most recently following, behind Gen Z, Generation Alpha, people born after 2010 (Csobanka, 2016; Stunża, 2017).

Gen Z is the particular focus of this paper, has been referred to terms such as "always clicking," "post-millennials," "iGeneration," "Gen Tech," "online generation," and "Facebook generation," that none of the preceding generations could hope to have (Dolot, 2018). There are other names for Generation Z: C Generation: this term derives from the terms "connected" since its members are "online," "computerized," "communicating," "content-centric," "community-oriented," and "changing," since this generation is said to enjoy change (Świerkosz-Hołysz, 2016; Hysa, 2016; Dudek, 2017). Also, the term "R Generation" originates from the generation of responsibility (Csobanka, 2016).

The Generation Z cohort is the first to grow up with cell phones, social media, and other technology easily accessible. Based on current estimates, the population of Generation Z comprises around one-third of the world's 7.7 billion individuals (Miller & Lu, 2018). To grasp Gen Z and digitization, it is essential to note that Generation Z was born in the 1990s and raised in the 2000s, during the most significant changes of the 20th century. They live in a world where digital media, smartphones, laptops, freely available networks, and the internet are commonplace (Singh & Dangmhei, 2016).

Social media, also known as social networking media, is a website that facilitates communication, participation, information sharing, and the creation of an online network among friends and family—both those they know offline and online (Hidayati & Yansi, 2020).

One crucial aspect of Gen Z's engagement with social media is its role in identity formation. A study by Boyd (2014) highlights how social media platforms serve as virtual spaces where Gen Z individuals construct and express their identities. The constant sharing of personal experiences, preferences, and opinions contributes to developing a unique online persona. This has implications for self-esteem and self-perception, as demonstrated in research by Best et al. (2019), which underscores the impact of social media on shaping self-identity among Gen Z.

Gen Z is often celebrated for its active engagement in social and political issues, with social media platforms serving as powerful tools for activism and social change. A study by Obar et al. (2012) emphasizes the role of social media in facilitating collective action and raising awareness among Gen Z regarding global challenges. The essay argues that platforms like Twitter and Instagram empower Gen Z to mobilize and advocate for causes they believe in, thereby contributing to the broader social and political landscape.

While social media has its positive aspects, concerns regarding its impact on the mental health of Gen Z have gained attention in recent years. Twenge (2019) discusses the rise of anxiety and depression among Gen Z, attributing it in part to the constant exposure to curated and idealized lives on platforms like Instagram. The pressure to conform to societal beauty standards and the fear of missing out (FOMO) are explored as potential contributors to the mental health challenges faced by this generation.

The digital landscape requires new skills, and Gen Z is at the forefront of developing digital literacy. A study by Greenhow and Askari (2017) investigates how Gen Z uses social media for learning and knowledge acquisition. The essay argues that platforms like YouTube, TikTok, and educational forums provide Gen Z with alternative learning environments, fostering a culture of continuous learning and information sharing.

In conclusion, the relationship between social media and Gen Z is intricate and multifaceted. It has implications for identity formation, activism, mental health, and digital literacy. While Gen Z harnesses the power of social media for positive change and self-expression, challenges such as mental health issues warrant careful consideration. As social media continues to evolve, further research is necessary to understand its ever-changing dynamics and the ongoing impact on the lives of Generation Z.

Parasocial Relationships, Authenticity, and Generation Z Consumer Responses

Li et al. (2021) claims that there are several fundamental reasons why people follow influencers on social media. However, studies showed that engagement and knowledge were the primary essential aspects. Li et al. (2021) contend that an influencer's specific knowledge of particular subjects generates competence, and their attributes, which entice followers, provide commercial value. Furthermore, Lee et al. (2022) clarified that customers followed influencers on Instagram for four reasons: consumerism, jealousy, honesty, and creative inspiration.

Customers follow influencers mostly to interact with someone who gives authentic information, has relatable qualities, and is open-minded. Authenticity was found to be the most essential characteristic in this regard. The second reason was consumerism, which revealed that people follow influencers to learn about brands, spot exclusive offers, or look for discount coupons. Additionally, it was shown that consumerism was the primary driver of purchase frequency. Creative inspiration highlights social media visual expressions and takes the lead in particular aesthetic preferences. The authors contend that there is no connection between jealousy and trust as the final reason why people follow influencers (Lee et al., 2022).

Another study by Närvänen et al. (2020), "Para-social Relationships of Generation Z Consumers with Social Media Influencers," explores para-social relationships between Generation Z consumers and social media influencers. The authors note that influencer marketing operates at a personal level when consumers form para-social relationships with social media influencers. Therefore, understanding the factors that influence the formation and maintenance of these relationships is crucial for influencer marketing professionals. The study focuses on Generation Z consumers, born between 1995 and 2000, who are active social media users. This generation is accustomed to endless messages and multiple information sources around them and values the authenticity and realness of social media, and is likely to form para-social relationships (Chaney et al., 2017; Djafarova & Rushworth, 2016; Escalas & Bettman, 2017; Theran et al., 2010).

Närvänen et al. (2020) found that Generation Z consumers form para-social relationships with social media influencers, often perceiving them as friends. The intimacy of these relationships is influenced by the authenticity and genuineness of the influencer's content. Consumers are more likely to follow influencers who share personal and relatable content. The study also found that para-social relationships may end because of several different reasons related to the consumer or the influencer. These reasons include a perceived loss of authenticity and a change in values or lifestyle. The study underscores several implications for influencer marketing professionals. Firstly, it highlights the importance of understanding why consumers follow particular influencers and how such an audience relationship is created or severed. Secondly, it emphasizes the need for influencers to maintain authenticity and genuineness in their content to maintain para-social relationships with their followers. Finally, it suggests that influencer marketing professionals should consider the dynamic nature of para-social relationships and the potential impact of influencer behavior on maintaining these relationships.

The study provides valuable insights into para-social relationships between Generation Z consumers and social media influencers. The study highlights the importance of authenticity and genuineness in influencer content and the dynamic nature of para-social relationships. The findings of this study have significant implications for influencer marketing professionals seeking to engage with Generation Z consumers.

The study by Vancottem (2021) delves into influencer marketing on three prominent social media platforms: Instagram, TikTok, and YouTube. The study investigates the effects of factors such as para-social interactions, openness, perceived interactivity, persuasion knowledge, and correspondence bias on consumer behavior and brand strategies in influencer marketing. The research findings indicate a positive relationship between para-social interactions and derivatives with consumer behavior. Specifically, the study reveals that para-social interactions positively affect engagement on YouTube and TikTok, while perceived interactivity positively influences engagement on Instagram and TikTok. This suggests that these factors play a significant role in driving consumer engagement across different social media platforms.

Moreover, Vancottem (2021) sheds light on correspondence bias, which refers to how consumers perceive influencers and assume that their attitudes reflect their true beliefs and opinions. Despite the disclosure of sponsored content, the research demonstrates that consumers' behavior and purchase intentions toward a brand do not decrease. This phenomenon is attributed to the perception of influencers as experts and the assumption that they genuinely endorse the brand, as highlighted in previous studies. Furthermore, the research emphasizes the importance of social media marketing activities in enhancing customer equity, including aspects such as brand loyalty, perceived quality, and brand awareness. This underscores the influential role of influencer marketing in shaping consumer perceptions and attitudes towards brands, particularly within social media.

Integrated Synthesis of Influencer Marketing and Generation Z Scholarship

The literature review of this study delves into crucial themes related to TikTok influencer marketing, Generation Z consumer behavior, and the interactions between these elements within the context of Small and Medium-sized Businesses (SMBs) in Lang'ata Constituency, Nairobi County. The review commences by examining the evolution of influencer marketing, emphasizing the transformative role played by social media platforms such as TikTok. Insights from previous studies underscore the growing significance of influencers in shaping consumer attitudes, preferences, and purchasing decisions, particularly among the younger demographic, as represented by Generation Z.

The literature also highlights the unique characteristics of Generation Z consumers, emphasizing their digital nativism, social media immersion, and affinity for authentic and personalized content. Scholars have noted the importance of understanding these characteristics in crafting effective marketing strategies, making the case for exploring the impact of TikTok influencers, specifically on Generation Z consumer behavior.

In the context of TikTok, the literature review delves into the platform's rise to prominence and its distinctive features, such as short-form videos, user-generated content, and algorithm-driven content discovery. Existing research suggests that TikTok is a platform for entertainment and a powerful influencer marketing tool capable of shaping consumer perceptions and preferences. Moreover, the review examines studies exploring influencer marketing effectiveness, highlighting the factors contributing to influencers' credibility, trustworthiness, and persuasive power. This provides a theoretical foundation for investigating the potential influence of TikTok influencers on Generation Z consumer behavior in the study's specific geographical context.

The literature review includes discussions on the role of SMBs and their marketing challenges. By synthesizing existing knowledge, the study aims to identify gaps in the literature and contribute to a deeper understanding of the interplay between TikTok influencer marketing and the consumer choices of Generation Z within the targeted constituency. The literature review provides a comprehensive background for the study, framing the research questions within the broader context of influencer marketing, social media, and local business dynamics.

Research Design and Methodological Procedures

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