Social Media Referral Marketing and Consumer Engagement in Sri Lanka's Cosmetics Industry: Unravelling the Moderating Impact of Social Ties

Abstract

The aim of this research is to examine the influence of many variables, including brand, rewards, and celebrity endorsement, on consumer participation in social media referral marketing campaigns in the cosmetic sector. Furthermore, this study investigated the moderating effect of social ties on the influence of these factors on consumers' propensity to participate in referral marketing initiatives. A self-administered survey questionnaire was utilized to collect a total of 384 responses from individuals in Sri Lanka who utilize WhatsApp, Instagram, Facebook, and Linkedin. The researchers employed a convenience sampling strategy to choose the sample. The researchers conducted the final data analysis utilizing a structural equation model. The findings of this study indicate that the influence of brand and rewards on customer willingness to participate is greater compared to the impact of celebrity endorsement. Furthermore, based on the findings, it can be concluded that the presence of a social tie moderates only the impact of brand on customer willingness to participate, and it does not moderate the impact of rewards and celebrity endorsement on customer willingness to participate. This study corroborates certain findings from prior research while also presenting contradictory outcomes. Implications and suggestions for future research are discussed.