International Journal For Multidisciplinary Research

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The Influencer Equity Equation: Analyzing Influencer Marketing's Effect on Brand Equity via the Perspectives of Authenticity, Credibility, and Engagement

Author(s) Dr. Simon Suwanzy Dzreke, Ms. Semefa Elikplim Dzreke
Country United States
Abstract The rapid expansion of influencer marketing necessitates a paradigm change from tactical execution to strategic brand equity architecture. To resolve long-standing theoretical ambiguities regarding how influencers create sustainable brand value, this study presents and empirically validates the Influencer Equity Transfer Model (IETM), a comprehensive framework. We show that brand equity arises from the synergistic interdependence of credibility, authenticity, and engagement rather than from discrete strategies by combining source credibility theory, elaboration likelihood pathways, social identity dynamics, and trust transfer mechanics. Importantly, a significant multiplicative interaction (β = 0.31, p <.001) that increases purchase intention by 26% beyond additive predictions (F(1,168) = 12.8, η² = 0.07) indicates that authenticity functions as a catalytic multiplier, validating credibility through economically rooted costly signaling mechanisms. Reach-based selection paradigms are fundamentally challenged by this synergy, which explains the disproportionate impact of micro-influencers (βauthenticity = 0.63 vs. 0.41 for mega-influencers). By emphasizing authenticity as a key component of high-elaboration processing, the IETM helps academics reconcile inconsistencies in the body of existing literature. It offers practitioners actionable architecture in the form of multifaceted credibility audits, authenticity protocols that incorporate vulnerability-driven storytelling (which increases brand recall by 22%) and organic disclosures (r = 0.42), and equity diagnostics that take the place of vanity metrics. Beyond business, research informs ethical governance—regulatory-aligned authenticity standards could improve marketplace trust while also reducing the documented negative effects of social media on mental health by normalizing imperfection. Boundary conditions include generational perception gaps and moderators of product involvement (βengagement→loyalty = 0.57 high vs. 0.32 low involvement). Cross-cultural validation, neuroscientific authentication, and virtual influencer adaptations must be given top priority in future studies. In attention economies where trust is the most valuable asset, this work reinterprets influencer marketing as strategic equity engineering, enabling brands to turn digital voices into lasting value.
Keywords Social media strategy, Micro-influencers, Brand equity, Engagement, Credibility, Authenticity, Trust transfer, Influencer marketing, and Expensive signaling
Field Business Administration
Published In Volume 7, Issue 3, May-June 2025
Published On 2025-06-19
DOI https://doi.org/10.36948/ijfmr.2025.v07i03.48683
Short DOI https://doi.org/g9qw86
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