Investigating the Effects of Virtual Personas on Brand Image

Abstract

This chapter explores the transformative impact of virtual personas, particularly virtual influencers, on modern marketing strategies and brand image. It delves into the evolution of influencer marketing, showing how the industry has grown exponentially over the past decade. Virtual personas, including computer-generated virtual influencers, are highlighted as innovative tools for engaging with tech-savvy consumers, offering cost-effective alternatives, and reaching global audiences. The research methodology involves a literature-based approach, gathering insights from academic databases, journals, and industry reports. The chapter underscores the importance of virtual influencers in shaping brand personality, trust, and loyalty. It also emphasizes the need for authenticity, transparency, and customization when using virtual personas to enhance brand image. Ultimately, this investigation offers valuable insights for businesses seeking to leverage virtual personas effectively in their marketing strategies to create meaningful and lasting connections with consumers in the digital era.

1. Introduction

As the marketing business landscape is wholly overhauled by digital transformation, more and more brand campaigns are also embracing online digital platforms due to technological progress. Due to this rapidly evolving digital transformation, brands and companies communicating their marketing objectives with current and potential customers have also been forced to adopt newer techniques and technologies. One such nascent yet rapidly growing sector of the digital market space is social media and the various forms of direct and indirect marketing communication vehicles that this platform enables brands to use. While this new digital platform can be considered the sum total of a place for interactions between marketing and consumers of information, goods, or services, it is not limited to heavily trackable banner ads and customised promotional feeds. Social media influencers are a strong contender for the new communication channel of digital marketing campaigns. This industry-wide pivot towards what is now known as “Influencer Marketing” has taken the industry by storm, and this is obvious in the rapid growth it has seen since 2010. Over the past five years, the influencer marketing market has grown exponentially, ballooning from US$1.7 Billion in 2016 to US$10.39 Billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 33.4% from 2022 to 2030 [1].

This rapid increase in the projected value of the social media influencer industry shows how effective this platform is and the trend of brands investing in this concept (Figure 1) [1].

Figure 1.

US influencer marketing platform market.

1.1 Change in the market expectation and delivery through influencers

In the overall scheme of digital marketing, by the very nature of its operations on social media, influencer marketing has become the defining element for nearly every brand’s various social media campaigns [2]. Over the years, they have established themselves as the voice of these platforms, with some amassing hundreds of millions of followers and reaching unprecedented levels of acquaintances and reach that many brands could only hope to achieve through their in-house campaigns, but which usually are highly expensive and time-consuming. Thus, the level of engagement that people seem to have with these influencers is markedly higher than any form of communication that companies and brands typically put out. This is perhaps why communication, based on the personality and lifestyle of a given individual that people enjoy engaging with, is far more effective and influential compared to other forms of paid, relatively impersonal communication that brands often employ [3]. By extension, the cultural value that is derived and delivered to potential customers through the various activities that an influencer regularly does, such as blog posts, video logs, and even public appearances, is integral in nature [4]. What is more important to marketing is that it does not need to pay for and invest when it looks to use the influencers as a communication vehicle, making it much more cost-effective for a brand rather than trying to create it by themselves through paid media which can often be highly resource consuming. As aforementioned, because consumers are on social media platforms purely to engage with and receive information or entertainment from the influencers they follow, they essentially do not view even endorsements by the influencers as something commercial in nature. Instead, when done right, social media platforms, in general, are extremely conducive environments for using social media influencers as communication vehicles for promotions and branding. Even if something is overtly commercial, such as a direct sponsorship from the influencer a consumer follows, these sorts of campaigns usually play to the company’s strength, thus making any given social media campaign much more inspirational rather than informational about the brand or product [5].

1.2 Objective

The objective of this book chapter is to examine and analyse the effects of virtual personas on brand image in the context of modern marketing strategies. Drawing on existing literature, the chapter aims to explore the impact of virtual personas on consumer perception, brand engagement, and overall brand image, providing insights into their effectiveness as a marketing tool.

2. Methodology

2.1 Data sources and collection

As a literature-based research, the primary data sources were academic databases, online journals, and reputable industry reports. A systematic and comprehensive analysis of these data sources led to an unbiased collection of evidence on the importance and influence of virtual personas in building brands. This also helped us in deriving a scientific conclusion, reaffirming our faith that in cluttered. Social media platforms, virtual personas do kindle interest in brands in the minds of consumers (Figure 2).

Figure 2.

Critical areas for digital transformation.

2.2 Digital transformation and virtual influencer

Digital transformation (DT) is defined as the use of new digital technologies to empower businesses to progress at a greater speed than in earlier times [6] When the pandemic hit nations between 2019 and 2022, it affected all companies and forced them to close down their operations. However, with the advancement in technology, companies managed to overcome all challenges and ensured the work-from-home of employees as a new normal.

2.3 Digital marketing and virtual persona

Customers increasingly look for their brands on the digital platform and believe they get the best out of this search. The reason for the same is the expectation of a personalised and relevant experience. Personas provide rich details about the brands, which motivate the customers to get attached to such brands. Virtual Personas have been around for a long period of time, but their importance has started to grow during the last decade due to a variety of factors like (a) the speed of the internet, (b) ease of convenience to customers due to their fast life as it reduces their time for search (c) companies investing more and more on such personas with in-depth details about the brands (d) the investment in such personas are much cheaper than investments in advertisements (e) virtual persona can be changed frequently to suit the requirements of customers. (f) growing trust, faith and confidence of customers in such personas.

2.4 Emergence of virtual influencer

A virtual influencer refers to a computer-generated character or persona designed to resemble a human influencer and interacts with an audience through social media platforms ([7], p. 108).

However, as technology progresses, we are seeing an interesting variation in the kinds of social media influencers that have created substantial followings on various social media platforms, including inherently unconventional ones, such as the “Virtual Influencer”. In the widest of definitions, a virtual influencer is a personality that is usually computer generated while deliberately made to look humanoid in order to create a similar bond with consumers that traditional influencers do, allowing them to have a similar hold and sway on consumers. This, however, also allows fictional characters to have control over consumer attention, and from the trends that are currently being observed in this space, even on their willingness to listen to the commercial and promotional material of brands in a way that makes them indistinguishable from a conventional “real” influencer [8] are. Now, one could easily argue that these virtual influencers are not real people who actually exist within our reality; it would be very unlikely for consumers to view them as influencers. This is because consumers very easily relate to social media influencers as they believe that the two live similar lifestyles and are hence relatable. However, as mentioned before, since engagement for social media influencers hinges heavily on the consumers relatability to their lifestyle and persona rather than the fact that they are virtual personas, implying that just their nature does not dismiss them as viable communication vehicles that would function for brands in a similar way that conventional influencers do on these digital platforms. Research [9] has shown that even perceived realism as the feeling of relatability that one would get if they are sufficiently invested in the character personality and digital actions of a virtual avatar can grant authenticity to the information coming from an otherwise unreliable source, like a virtual influencer. This means that if virtual influencers fulfil the basic criteria of being prominent social media figures, who are likely to receive brand endorsements and sponsorships, then these virtual influencers will be perceived as real entities, justified by the fact that they have a sufficiently large following of people who keep up with them on a daily basis. They can be realistically and successfully used as effective vehicles of communication for advertising and other promotional materials [10] that could help companies build brand following and loyalty.

In today’s digital era, companies are constantly seeking innovative ways to engage with their target audiences and establish a strong brand image. One emerging strategy is the utilisation of virtual personas, also known as avatars or digital representatives, to interact with consumers in online environments. Virtual personas are computer-generated characters that mimic human behaviours, enabling companies to enhance customer interactions, personalise experiences, and create a distinct brand identity [11]. However, the impact of virtual personas on brand image remains relatively unexplored, presenting a gap between companies’ expectations and reality.

Brand image plays a crucial role in shaping consumer perceptions, preferences, and purchasing decisions [12]. It encompasses consumers’ mental associations, attitudes, and emotions towards a brand, which are often built through various marketing efforts and touchpoints. Traditionally, brand image has been constructed through advertising, packaging, store design, and other tangible elements. However, with the rise of digital platforms and social media, companies now have the opportunity to extend their brand image through virtual interactions.

Virtual personas offer a unique avenue for brands to humanise their digital presence and establish a deeper emotional connection with consumers [13]. By embodying a virtual persona, companies can simulate human-like characteristics, such as personality, voice, and appearance, thereby fostering a sense of familiarity and trust among consumers. Moreover, virtual personas can facilitate personalised interactions, provide tailored recommendations, answer inquiries, and resolve customer issues [14]. Such personalised experiences have the potential to enhance customer satisfaction, brand loyalty, and positive word-of-mouth.

Despite the potential advantages, there is limited empirical research exploring the effects of virtual personas on brand image. Previous studies have primarily focused on individual aspects, such as consumer perceptions of virtual personas or the impact of virtual interactions on customer satisfaction (e.g., [15, 16]). However, a comprehensive understanding of how virtual personas influence brand image, including its cognitive, affective, and behavioural dimensions, has not yet been fully explored and exploited by researchers.

2.5 Insights into virtual persona

Therefore, this study aims to bridge this gap by investigating the effects of virtual personas on brand image. Specifically, we will examine how the use of virtual personas in online brand interactions influences consumers’ perceptions of brand personality, trust, and loyalty. By exploring these dimensions, we seek to shed light on the underlying mechanisms through which virtual personas shape brand image and provide actionable insights for companies seeking to leverage this strategy effectively.

In the following sections, we will review the relevant literature, describe the research practice, present the results, and discuss the implications of our findings. Through this investigation, we aim to contribute to both theoretical and practical understandings of the role of virtual personas in shaping the brand image.

2.6 Literature review

Virtual influencers have become necessary for brands in today’s world due to several reasons. Firstly, they offer a unique and innovative way for brands to engage with their target audience. Virtual influencers provide a fresh and attention-grabbing approach to influencer marketing, capturing the interest of tech-savvy consumers [17].

Secondly, virtual influencers provide brands with more control over their brand image and messaging. Unlike human influencers, who may have their own personal beliefs and opinions, virtual influencers allow brands to maintain consistent messaging and portray the desired image [7].

Thirdly, virtual influencers offer cost-effective marketing opportunities. While human influencers often require significant financial investment, virtual influencers can be created and managed at a lower cost, making them a more affordable option for brands, especially smaller ones [18].

Lastly, virtual influencers have the potential to reach a global audience. With the rise of social media and internet connectivity, virtual influencers can transcend geographical boundaries and engage with consumers worldwide, allowing brands to expand their reach and build a global presence [19].

In summary, virtual influencers are necessary for brands in today’s world as they provide a unique engagement strategy, offer control over brand image and messaging, present cost-effective marketing opportunities, and enable global reach.

2.7 The importance and significance of virtual influencers

Virtual influencers, computer-generated characters that serve as social media influencers, have emerged as a novel phenomenon in the realm of digital marketing. This section explores the significance of virtual influencers and their impact on consumer behaviour, brand image, and marketing strategies.

2.8 Consumer engagement and uniqueness

Virtual personas allow brands to interact with consumers in a personalised and immersive manner, leading to increased engagement. Research by Lee and Watkins [20] suggests that interactive virtual personas can stimulate consumer involvement and foster a sense of co-creation, positively influencing brand perception and consumer decision-making. Furthermore, virtual influencers offer a unique and captivating way to engage with consumers. As digital creations, they possess an element of novelty that attracts attention and generates curiosity among social media users [21]. They are visually appealing and often resemble futuristic appearances. These factors, combined with their ability to create seemingly authentic content, captivate audiences and facilitate active engagement. Virtual influencers have the potential to create a buzz around brands, products, and campaigns, thus increasing consumer interest and fostering brand awareness [22]. Their unconventional nature and ability to transcend traditional marketing approaches contribute to the intrigue and allure, thus making them an intriguing phenomenon to explore.

2.9 Authenticity and aspirational appeal

One might assume that virtual influencers lack the authenticity that human influencers possess. However, research suggests that virtual influencers can still establish a sense of authenticity and relatability with their followers [23]. The scripted nature of virtual influencers’ content allows for careful curation, ensuring consistency in brand messaging and image. Moreover, virtual influencers often embody aspirational qualities, representing idealised versions of beauty, style, and lifestyle. These aspirational attributes can resonate with audiences, inspiring them and creating aspirations to emulate the virtual influencer’s persona [24]. By projecting an idealised image, virtual influencers can leverage consumers’ aspirations and desires, further enhancing their influence and impact on consumer behaviour.

2.10 Boundaryless marketing and global spread

Virtual influencers offer a unique advantage in terms of boundaryless marketing and global reach. Unlike human influencers, who may face constraints related to language, culture, or geography, virtual influencers transcend these barriers [25]. Their virtual nature allows them to transcend physical and cultural boundaries, appealing to a diverse range of audiences worldwide. Virtual influencers can communicate in multiple languages, adapt to various cultural contexts, and appeal to global consumer segments. This ability to connect with a broad and diverse audience allows brands to extend their reach and engage with consumers in new markets, facilitating globalisation efforts [26]. The global reach of virtual influencers enables companies to tap into new consumer segments and explore untapped markets, expanding their brand presence and potential customer base.

2.11 Transformation of marketing strategies

The rise of virtual influencers has also greatly changed the marketing landscape, prompting companies to rethink their strategies. Brands are increasingly integrating virtual influencers into their marketing campaigns to create unique and memorable experiences for their target audiences [27]. Collaborating with virtual influencers allows brands to leverage their digital presence, engage with tech-savvy consumers, and experiment with innovative approaches through storytelling and content creation. Furthermore, virtual influencers often provide marketers with greater control over brand messaging, allowing for precise alignment with brand values and objectives [28]. This transformation in marketing strategies not only reflects the evolution of digital marketing but also opens up new avenues for creativity and brand differentiation.

In conclusion, virtual influencers matter due to their ability to captivate and engage consumers, establish authenticity and aspirational appeal, transcend boundaries for global reach, and transform marketing strategies. The emergence of virtual influencers represents an exciting development in the field of digital marketing, presenting new opportunities for brands to connect with their target audiences and shape their brand image.

This section provides a comprehensive review of the existing literature on the effects of virtual personas on brand image, focusing on three key dimensions: brand personality, trust, and loyalty.

2.12 Brand personality

Brand personality refers to the set of human-like traits and characteristics associated with a brand [29]. Virtual personas offer a unique opportunity for companies to imbue their brand with personality traits by embodying a digital representative. Previous research has demonstrated that consumers tend to perceive virtual personas as more approachable, friendly, and relatable compared to traditional brand communication methods [13]. These human-like attributes can evoke emotional connections, enhance brand likability, and positively influence brand image [30]. Additionally, virtual personas can facilitate a sense of social presence, enabling consumers to interact with the brand on a more personal level [31].

2.13 Trust

Trust plays a crucial role in consumer-brand relationships and influences brand image [32]. Virtual personas have the potential to enhance trust by providing a sense of familiarity, transparency, and reliability in online interactions. Studies have shown that when consumers perceive virtual personas as competent and credible, they are more likely to trust the brand behind the persona [33]. Virtual personas can also offer personalised recommendations and tailored assistance, which further contribute to building trust [16]. However, it is important to note that the effectiveness of virtual personas in establishing trust may be contingent upon factors such as congruence between the virtual persona and the brand, as well as the overall quality of the virtual interaction [15].

Furthermore, Virtual personas can help build trust between consumers and brands. According to a study by Chen et al. [34], virtual personas that exhibit traits such as transparency, expertise, and reliability can enhance consumer trust in the brand, thereby influencing consumer decision-making.

2.14 Loyalty

Brand loyalty is a desirable outcome for companies, as it indicates consumers’ commitment, repeat purchase intentions, and positive word-of-mouth [12]. Virtual personas have the potential to foster loyalty by creating memorable experiences and emotional connections with consumers. When consumers perceive a virtual persona as helpful, responsive, and empathetic, they are more likely to develop a sense of loyalty towards the brand [16]. Additionally, personalised interactions facilitated by virtual personas can enhance customer satisfaction and strengthen the bond between consumers and the brand [14]. However, it is important to consider the potential limitations and challenges of virtual personas, as factors like perceived authenticity and ethical concerns may impact consumers’ loyalty [35].

Overall, the existing literature indicates that virtual personas have the potential to influence brand image through their impact on brand personality, trust, and loyalty. However, it is important to note that research in this area is still relatively limited, with a focus on specific aspects of virtual personas’ effects on brand image. Therefore, further empirical investigation is necessary to gain a more comprehensive understanding of the underlying mechanisms and to provide actionable insights for marketers.

3. Conclusion

In conclusion, our investigation into the effects of virtual personas on the brand image has shed light on the significant impact these digital representations can have on consumer perceptions. Through an analysis of existing literature and empirical research, we have identified several key findings that contribute to our understanding of this phenomenon. Virtual personas have the potential to enhance the brand image by creating a sense of authenticity and personal connection with consumers. Research by Smith and Johnson [36] demonstrated that virtual personas that exhibit human-like qualities and engage in meaningful interactions can foster trust and emotional attachment among consumers, leading to positive brand associations, leading to brand enhancement. This finding suggests that companies can leverage virtual personas as a powerful tool for building brand loyalty and increasing customer engagement.

Secondly, virtual personas can also influence brand image negatively if they come across as inauthentic or manipulative. Research conducted by Chen et al. [34] revealed that consumers are highly attuned to detecting inconsistencies or deceptive practices employed by virtual personas, which can lead to a loss of credibility and damage to brand reputation. Therefore, it is crucial for companies to ensure that their virtual personas align with their brand values and maintain transparency in their interactions to avoid any potential backlash. Furthermore, our investigation highlighted the importance of tailoring virtual personas to specific target audiences. The study conducted by Martinez and Lee [37] found that customisation and personalisation of virtual personas based on the preferences and characteristics of the target audience can significantly enhance brand image and increase consumer engagement. This suggests that a one-size-fits-all approach may not be as effective as a more targeted strategy when implementing virtual personas.

Based on this, we emphasise the need for companies to carefully manage and align virtual personas with their brand image and values. By creating authentic and relatable virtual personas, companies can enhance brand perception, foster trust, and cultivate lasting relationships with consumers. However, it is crucial for companies to be transparent, avoid manipulative practices, and customise virtual personas to cater to the specific needs and preferences of their target audience.