Exploring Consumer and Influencer Perceptions of Influencer Marketing and AI-Driven Branding in the Formation of Brand Equity within the Digital Fashion Industry on Instagram and TikTok

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Aulia Resty Rahmadhani

Abstract

The convergence of influencer marketing, algorithmic content distribution, and artificial intelligence (AI)-driven branding is fundamentally reshaping how brand equity is formed in the digital fashion industry. This qualitative study explores how consumers and influencers perceive the interplay between influencer endorsements, social media algorithms, and AI-generated content in shaping brand perceptions and loyalty on Instagram and TikTok. Drawing upon in-depth interviews with three fashion influencers and two active fashion consumers, this research employs thematic analysis to examine the mechanisms through which brand equity emerges in contemporary digital ecosystems. The findings reveal that algorithmically curated content discovery, influencer-triggered awareness, and multi-source trust validation function as interdependent pathways to brand consideration, yet brand equity itself remains contingent upon product quality and consumption experience rather than mere exposure. AI-driven branding engenders ambivalent consumer responses, perceived as both a marker of modernity and a potential threat to authenticity. This study contributes to the literature by proposing an integrated theoretical model wherein brand equity formation in digital fashion contexts is understood as the outcome of complex interactions among algorithmic distribution systems, influencer credibility, consumer cross-validation behaviors, and experiential consumption outcomes. The findings offer practical implications for fashion brands navigating the tension between technological efficiency and relational authenticity in their digital marketing strategies.

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