Social Media and Consumer Debt Accumulation Among the Lower Middle Class in Nairobi: A Focus on Instagram

Abstract

The rise in popularity of social media sites like Instagram has revolutionized communication and consumer behavior by promoting aspirational lifestyles, influencer marketing, and easy-credit advertisement on the internet. Although social media has improved connections and commerce, it can encourage overconsumption, especially for financially challenged people. This study sought to determine the effect of Instagram usage on consumer borrowing among the lower middle-class population in Nairobi County, Kenya. Following the theories of Consumer Socialization Theory and Social Cognitive Theory, the study used mixed method research design comprising 399 participants out of a target population of 543,450 lower middle-class people. Regression analysis was employed to analyze quantitative data whereas qualitative data was analyzed through thematic analysis. The results reveal that Instagram content, influencer communication and time spent on the platform affects borrowing behavior through increased consumption aspirations, advertisement of easy credit products, and social comparison. The study concluded that social media communication significantly affects consumer debt accumulation and recommends improving financial literacy programs and responsible digital lending and advertisement practices on social media.