International Journal of Financial and Investment Studies (IJFIS) DOI: 10.9744/ijfis.2.1.

50-62
Vol. 4 No. 1, April 2023: 50-62
e-ISSN 2745-3952

THE EFFECT OF CELEBRITY ENDORSEMENT ON PURCHASE INTENTION

Ruth Srininta Tarigan1, Juliana Caesaria Tandung 2, Ansell Kevyn Sutrisno3, Viriyani4
1,2,3,4 School of Business and Management, Petra Christian University
Jl. Siwalankerto 121-131, Surabaya, INDONESIA
Corresponding author: [email protected]

ABSTRACT

The utilization of celebrity endorsement as a marketing strategy has gained widespread popularity across various
industries, including the electronic industry. The objective of this study is to assess the correlation between celebrity
endorsement and purchase intention, specifically through brand image. The analysis compares the relationship between
variables at two levels: industry and brand, each at varying levels of maturity. Results indicate that at the industry level,
brand image plays a positive mediating role in the relationship between celebrity endorsement and purchase intention,
despite a negative direct relationship between the two. At the brand level, celebrity endorsement has a negative impact
on purchase intention for Samsung, while exhibiting no significant effect on Vivo brand. However, brand image positively
mediates the relationship between the two. Furthermore, multigroup analysis reveals that the difference in effect between
the two brands is not statistically significant.

Keywords: brand image, celebrity endorsement, indonesia, purchase intention, smartphone industry.

INTRODUCTION

The use of celebrity endorsements in marketing has become increasingly popular over the years due to its
potential to attract attention, create positive associations, and enhance brand image. Brands are intensively
enhancing their advertising effort in order to come out as the winner in the market and reap as much market
share as possible. Celebrity endorsements are known to have potential to give brands an increase in revenue
as much as 20% on average (Foong & Yazdanifard, 2014). Thus, making it a great strategy for brands to
stay ahead in the competition.

Celebrity endorsement is a form of advertising where a celebrity acts as a spokesperson for a brand or
product (Solomon, 2009). Celebrity endorsement can help to increase the likelihood of a purchase to happen.
This argument is proved by research conducted by Andita, Najib, Zulfikar, & Purnamasari (2021) stating that
a celebrity endorsement can significantly increase sales of the brand endorsed. A good example is Ryan
Reynolds endorsement with Mint Mobile which resulted in an increase of 50,000% of its sales revenue in a
span of 3 years (Weinstein, 2021).

Similarly, celebrity endorsement has an influence on brand image. Business owners use celebrity endorse-
ment as a tool to obtain better campaign effectiveness, brand awareness, and brand recall (Spry et al., 2011).
For example, when Nike used Michael Jordan as their ambassador promoting their shoes. It created a strong
association between the brand and the world's greatest basketball player, which helped to establish Nike as
a dominant player in the athletic footwear industry (Ponsford, 2019). Following up the previous example, the
researchers strongly believe that brand is an intangible asset that enables companies to execute premium
pricing and entice purchase intention. A viral collaboration between Charles & Keith and ITZY released a
Moss Gabine Belted Hobo Bag that is sold at a premium price as much as Rp 1,200,000.00 (Dark Moss
Gabine Belted Hobo Bag: Charles & Keith). Since the collaboration hits viral, the endorsement’s hype will
enable prospective customers to have the intention to buy.

The present study delves deeper into the impact of celebrity endorsements on purchase intention in the
smartphone industry, while considering the mediation of brand image. Building on the research conducted by
Adiba et al. (2020), which focused on celebrity endorsements in Indonesia by Samsung and Vivo, this study
aims to compare the two brands and examine the effect of these variables on customer purchase intentions-
-a topic that has received limited attention. The researchers contend that Samsung and Vivo are represen-
tative of the entire smartphone industry, catering to different markets and complementing each other. According
to a survey by Statcounter in Indonesia, Samsung leads the market with 21.55% ownership, as reported by
the authors.

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In June 2022, Vivo's market share in Indonesia was recorded as 14.81% according to Statcounter (2023).
Samsung's brand ambassador, Raisa, has gained immense popularity and was nominated as one of the top
100 influential celebrities in the book "Asia's 100 Digital Star 2020" by Watson (2020). Similarly, Maudy
Ayunda's multi-talented achievements in the music, acting, and education industries have landed her a spot
in Forbes under 30 list of influential figures. These companies carefully select the most suitable celebrity to
represent their brand and create a successful marketing campaign. The aim of this research is to analyze the
impact of celebrity endorsement on purchase intention through brand image for Samsung and Vivo. Both
brand-level and industry-level analyses will be conducted to objectively understand the overall relationship
between the variables.

LITERATURE REVIEW

Celebrity Endorsement

Celebrity endorsement has been widely used by companies and brands today to capture larger audiences
and gain more trust. To understand celebrity endorsement, McCracken (1989) described celebrity endorsement
as a modern marketing technique by creating personal testimonials campaigns which are capable of arousing
the sense of similarities between the customers and celebrities. Furthermore, a research done by Van der
Waldt, M van Loggerenberg, & Wehmeyer (2011) stated that celebrity endorsement might change the perception
of a brand in a positive way according to what the companies and brands intend to.

Brand Image

Brand image can be understood as the value of the brand captured by customers targeted as a result of
marketing efforts done (Keller, 1993). According to Aaker & Biel (1994) (as cited in Annissa & Paramita,
2021), how good a product is created does not contribute to how great it resides in the minds of customers.
Hence, a company's success in converting sales from potential clients is not guaranteed by the quantity of
marketing channels it uses.

According to Keller (1993), there are three factors that determine brand image: brand strength, favorability,
and uniqueness Brand’s strength can be understood as how many times a brand is being “reinforced” as a
result of advertising efforts, meaning a more relevant advertising reinforces brands better. In addition, brand’s
favorability is addressing how accepting each customer is towards the brand; thereby it leads to more positive
attitudes. Last but not least, brand uniqueness refers to the distinction in values that a brand generates and
that other companies cannot imitate.

On the other hand, according to Fianto et al. (2014), brand image’s dimensions are mentioned as follows: 1)
Saliency 2) Reputation 3) Familiarity 4) Trustworthiness. Saliency revolves around how a brand is conspicuous
and easily noticeable i.e. relevance. Reputation describes the level of acceptance of a brand, somewhat
equivalent to familiarity. While, trustworthiness focus is placed on how the company doesn't let its clients down
with its offerings.

Purchase Intention

Purchase intention is defined as a customer’s propensity to purchase a certain product or do a specific action
in connection with a purchase, which can be measured by their likelihood to purchase the product (Luqman
et al., 2022). Purchase intention is also tied to attitudes due to their personal nature. When a customer is
drawn to a product, they would be encouraged to engage in a variety of actions to obtain the desired product.
Furthermore, purchase intention can be indicated by the desire to purchase the product, the consideration to
purchase the product, the intention to purchase the product, and the intention to purchase the product in the
future (Lin et al., 2013).

However, according to Ferdinand (2006), purchase intention can be identified with four different dimensions
namely transactional interest, referential interest, preferential interest, and exploratory interest. Transactional
interest refers to the customer’s willingness to purchase the product. Referential interest refers to the customer’s
willingness to refer or endorse the product to other people. Preferential interest refers to the customer’s

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likelihood to select the product over other similar products. Lastly, exploratory interest refers to the customer’s
willingness to do research to dig up more information about the product. Based on the stated definitions, the
researcher summarizes purchase intention as a customer’s inclination to purchase a product, which can be
measured by their transactional interest, referential interest, preferential interest, and exploratory interest.

The Impact of Celebrity Endorsement on Brand Image

The effect of celebrity endorsement on brand image has been a topic of marketing research for many years.
Till, B. D., & Busler, M. (2000) found that endorsement enhances brand perception considering the originality
of the endorsement; it affects how well it works to promote brand recognition and image. This is explained by
customers' emotional connections to brands, which are strengthened through celebrity endorsement.

Be that as it may, deriving from Ohanian (1991), irrelevant celebrity could bring about the opposite effect to
brand image. According to Ohanian (1991), celebrities can enhance a brand's image by possessing a variety
of qualities, such as credibility, attractiveness, recognition, and likeability. If these conditions are not met, the
endorsement won't be as effective, leaving customers with weak impressions and doing less to improve the
brand's image. According to Lomboan (2013), a successful endorsement is heavily reliant on the celebrity's
capacity to improve the brand's image.

Findings from a recent research done by Naomi & Ardhiyansyah (2021) showed that a brand ambassador
has a strong direct impact towards brand image. Naomi & Ardhiyansyah (2021) also showed that a celebrity’s
popularity, charm, and public image influences the brand image. However, this would also mean that if the
brand ambassador has a poor public image, it would also poorly affect the brand. A research by Masato
(2021) supports this relationship theory between celebrity endorsement and brand image. Thus, celebrity
endorsement can have an impact on a brand's image if the celebrity's unique characteristics are considered
and accentuated. Surely, the endorser must align with the brand's image and value.
H1 : Celebrity endorsement significantly influences the brand image of smartphone brands.
H1s: Celebrity endorsement significantly influences the brand image of Samsung.
H1v: Celebrity endorsement significantly influences the brand image of Vivo.

The Impact of Brand Image on Purchase Intention

In this market where there are countless brands fiercely competing with one another, brand image has
become a very important tool to differentiate themselves and gain competitive advantage. Brand image
represents a brand’s personality and identity, showcasing their strength and uniqueness. A good brand image
gives the brand better credibility and reputation, which would influence the customers’ consideration to buy
their product (Wijaya, 2013).

Thus, a brand that builds a better brand image would subsequently lead to higher purchase intention (Adiba
et al., 2020). Especially with a relatively sizable purchase such as a handphone, a better brand image would
drive customers to find out more information about the brand and their products, which would lead to their
consideration to purchase the product (Shahid et al., 2017).

According to a research done by Benhardy et al. (2020), brand image directly has a positive influence on
purchase intention. Other research done by Zufikar et al. (2022) and Isyanto et al. (2020) further supports the
existence of a significant positive relationship between brand image and purchase intention. These research
results prove that brand image is an important factor to build in order to increase customers’ purchase
intention.
H2 : Brand image significantly influences the purchase intention of smartphones.
H2s: Brand image significantly influences the purchase intention of Samsung smartphones.
H2v: Brand image significantly influences the purchase intention of Vivo smartphones.

The Impact of Celebrity Endorsement on Purchase Intention

The influence of celebrity endorsement on consumers' desire to make purchases cannot be overlooked. As
Kim and Ko (2012) note, using the influence of celebrity endorsement to inform potential buyers about a

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brand's goods or services is a successful strategy. Customers are more inclined to trust and appreciate a
company when a well-known and well-respected celebrity backs it. Keller (2012) asserts that celebrity
endorsement may also raise a brand's popularity, respectability, and allure.

Keller (2012) proposes that consumers frequently hold off on making a purchase in order to wait for cues as
an additional explanation of the effect of celebrity endorsement on purchase intention. Celebrity endorsement
can have an impact on these cues since it serves as a "cognitive" shortcut that makes it simpler for buyers to
determine whether or not to purchase a product (Keller, 2012). Moreover, celebrity endorsement may inspire
groups and movements started by the celebrity, encouraging people to participate and feel welcomed (Keller,
2012). Celebrity endorsement can boost the chance of a sale by boosting consumers' faith in the product.

According to Erdogan's (1999) research, celebrity endorsement is a type of marketing communication

technique that makes use of well-known people to support a company's image or line of goods. It has been
discovered that the employment of celebrities in advertising has a favorable effect on customer behavior,
including purchase intention. First off, a buyer who trusts the endorser will feel more comfortable and
confident, which will increase their propensity to buy the goods (Erdogan, 1999). Second, people frequently
try to imitate the celebrities they find attractive, which improves their likelihood of purchasing the recom-
mended item (Erdogan, 1999). Thirdly, choosing celebrities wisely may boost perceived competence, which
in turn can strengthen buying intentions. Finally, a strong influence on purchase intention is the emotional
connection that exists between the celebrity and the audience (Erdogan, 1999). Supporters of the celebrity
are more likely to buy the endorsed goods because they want to follow whatever the celebrity does.

A research done by Masato (2021) showed that celebrity endorsement has a significant and positive influence
towards the brand’s purchase intention. The result of a research by Aliyev (2021) also supported this theory
and showed that celebrities’ fan base feels a strong emotional connection towards the celebrity. Therefore,
they pay attention to the celebrities’ daily lives and the products that they use. Thus, celebrity endorsements
could significantly influence their fan base’s purchase intention.

Overall, it is proved that celebrity endorsement can have a significant influence on consumers' desire to make
a purchase. Customers are more likely to make a purchase owing to admiration of the celebrity as stated by
Choi and Rifon (2012). To optimize the advantages of celebrity endorsement, it is crucial for brands to carefully
choose the ideal celebrity.
H3 : Celebrity endorsement significantly influences the purchase intention of smartphones.
H3s: Celebrity endorsement significantly influences the purchase intention of Samsung smartphones.
H3v: Celebrity endorsement significantly influences the purchase intention of Vivo smartphones.

The Mediating Effect of Brand Image between Celebrity Endorsement and Purchase Intention

As shown by Kim and Ko (2012), there is a direct relationship between celebrity endorsement and purchase
intention as customers tend to trust a brand or a product more when a celebrity that they look up to backs it
up. Thus, the customer’s faith in a celebrity could lead to an increase in sales (Keller, 2012). At the same time,
Prilia & Ardhiyansyah (2021) showed that celebrity endorsement strongly and directly impacts brand image.
Celebrities are able to improve how well customers view and perceive a brand with the celebrities’ various
qualities (Ohanian, 1991). Furthermore, brand image also directly affects purchase intention (Benhardy et al.,
2020). A brand with a stronger positive image would, as a result, achieve higher purchase intention (Adiba et
al., 2020). This means that celebrity endorsement could build and shape better brand image, and better brand
image would result in a higher purchase intention. Therefore, brand image is able to mediate the relationship
between celebrity endorsement and purchase intention.
H4 : Brand image mediates the relationship between celebrity endorsement and purchase intention of
smartphones.
H4s: Brand image mediates the relationship between celebrity endorsement and purchase intention of
Samsung smartphones.
H4v: Brand image mediates the relationship between celebrity endorsement and purchase intention of Vivo
smartphones.

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METODOLOGY

Description of Population and Sample

This research is a comparative study that compares two top smartphone brands in Indonesia, namely
Samsung and Vivo. Since this research mainly focuses on rank comparison done through likert scales, this
research uses primary data i.e. quantitative as the source of data and the data is collected through self-
administered questionnaires distributed through a valid survey generator website, namely Survey Monkey
and Populix. We created two separate questionnaires, one for Samsung and Raisa, and another one for Vivo
and Maudy Ayunda. The respondents chose one questionnaire with the smartphone and celebrity pairing
they are more familiar with to answer.

Moreover, the population suitable to be in this research must fulfill 4 criterias as follows: 1) Live in Indonesia
2) Familiar with the brand 3) Familiar with the celebrity 4) Know that the brand currently is taking the celebrity
as their brand ambassador. Following that, to enhance objectivity and minimize subjectivity, the researchers
implement unrestricted or simple random sampling as the sampling design.

Data Analysis Technique

This research is using PLS-SEM analysis by Hair et al. (2014) through multiple regression owing to several
reasons, namely better accuracy, better correlation results, and better avoidance towards sensitivity in variable
measurements. In general, there are two main stages of analysing the model and testing the hypotheses of
the research model: assessment of the measurement model and evaluation of the structural model.

There are two analyses in this research: (1) industry level, in which data from both brands are combined, and
(2) brand-level, in which separate analysis is done to both brands followed by a Multi Group Analysis (MGA)
is done to test if the path differences are significant.

The analytical tools used is Smart-PLS Software due to its flexibility in interpreting graphical outputs also
enables the researcher to have easiness in changing the elements of each data.

ANALYSIS AND DISCUSSION

The two surveys from both brands collected a total of 379 valid respondents. 193 respondents filled in the
survey for Samsung and Raisa, and 186 respondents filled in the survey from Vivo and Maudy Ayunda. 48%
of them are between 17 – 24 years old, 19% between 25-32, and 14.51% between 33-41 years old. Almost
half of the respondent are high-school graduated (49%), followed by Undergraduate (44%) and Master
graduate (4.22%)

Industry-Level Analysis

This analysis utilizes the combined data set of 379 samples to conduct an industry-level assessment. Firstly,
the measurement model is evaluated using Composite Reliability (CR) and Average Variance Extracted
(AVE) to ensure the reliability of all items in measuring their respective constructs and to detect any
multicollinearity issues. The next step is to test for convergent and discriminant validity among constructs.
During the convergent validity test, one indicator (CE34) demonstrated a loading factor below 0.5 and was
subsequently removed from the test. The remaining indicators successfully passed the convergent validity
test with factor loading above 0.5. Additionally, Average Variance Extracted (AVE) showed values exceeding
0.5 for all variables tested, indicating the achievement of external consistency. Internal consistency was
assessed using three parameters, namely Cronbach's Alpha, rho_A, and composite reliability, which all
yielded satisfactory results.

After the model is declared to meet all the requirements in the evaluation of the measurement model, the next
step is to evaluate the model structurally. The structural model is a model that describes the relationship
between variables. Evaluation in this section is carried out with several exploratory parameters, namely the
values of R2, f2, Q2, and the parameter of Goodness of Fit (model fit).

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Table 1. Industry level structural model evaluation

Beta Std Dev t-stat pvalue f2 Q2 VIF
Direct
Celebrity Endorsement → Brand Image 0.616 0.052 11.916 0.000 0.611 0.266 1.000
Brand Image → Purchase Intention 0.834 0.037 22.593 0.000 1.055 0.457 1.611
Celebrity Endorsement → Purchase
-0.116 0.048 2.43 0.015 0.020 - 1.611
Intention
Indirect
Celebrity Endorsement → Brand Image →
0.514 0.055 9.287 0.000 - - -
Purchase Intention
Total
Celebrity Endorsement → Brand Image 0.616 0.052 11.916 0.000 - - -
Brand Image → Purchase Intention 0.834 0.037 22.593 0.000 - - -
Celebrity Endorsement → Purchase
0.398 0.064 6.244 0.000 - - -
Intention

Figure 1. Industry path model

There are four main findings from the Table 1.

1. Celebrity endorsement has a positive significant effect towards brand image (H1 is accepted, p-value
<0.05)
2. Brand image has a positive significant effect towards purchase intention (H2 is accepted, pvalue <0.05)
3. Celebrity endorsement has a negative, significant effect towards purchase intention (H3 is accepted,
pvalue >0.05).
4. Despite a significant negative direct effect between Celebrity Endorsement and Purchase Intention, Brand
Image positively mediates the relationship between the two (H4 is accepted, p-value <0.05).

Brand-level Analysis

In the second analysis, we divide the data into two groups: Group Samsung – Raisa, and Group Vivo –
Maudy. We want to compare if there is a difference in the effect among the variables given that the two brands
are distinctively different.

The measurement model test for both groups are as follows:

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International Journal of Financial and Investment Studies (IJFIS), Vol. 4, No. 1, April 2023: 50-62

1. During the convergent validity test, there was one indicator (CE34) which achieved loading factor <0.5 for
both groups: 0.419 for Samsung-Raisa, and 0.417 for Vivo-Maudy. The indicator is dropped and the
indicators are tested again. The result shows that the rest of indicators pass the convergent validity test
(factor loading >0.5). Average Variance Extracted (AVE) shows value >0.5 for all variables tested in the
model which means that external consistency on which the convergent validity is based has been
achieved.
2. The reliability test shows that the variables in both groups are reliable. The value of Cronbach’s Alpha,
rho_A, and composite reliability are >0.70. Indicators on each of the variables indeed measure the variable
in question consistently and are related to one another.
3. Diagonal values in the Fornell-Larcker matrix for the Samsung-Raisa group are bigger than other values
in the matrix. It’s the same case for Vivo-Maudy’s Fornell-Larcker matrix. This indicates that each variable
measures specific things and differs from one another.

After the model in both groups is declared to meet all the requirements in the evaluation of the measurement
model, the next step is to evaluate the model structurally. The result are shown inTable 2.

Table 2. Structural model evaluation – Samsung-Raisa

Hubungan Variabel Beta Std Dev t-stat pvalue f2 Q2 VIF
Direct
Celebrity Endorsement → Brand Image 0.717 0.066 10.923 0.000 1.056 0.328 1.000
Brand Image → Purchase Intention 0.795 0.076 10.430 0.000 0.727 0.432 2.056
Celebrity Endorsement → Purchase
-0.052 0.089 0.584 0.560 0.003 - 2.056
Intention
Indirect
Celebrity Endorsement → Brand Image →
0.570 0.083 6.849 0.000 - - -
Purchase Intention
Total
Celebrity Endorsement → Brand Image 0.717 0.066 10.923 0.000 - - -
Brand Image → Purchase Intention 0.795 0.076 10.430 0.000 - - -
Celebrity Endorsement → Purchase
0.518 0.085 6.092 0.000 - - -
Intention

Figure 2. Samsung-Raisa path model

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 Tarigan: The Effect of Celebrity Endorsement on Purchase Intention

Table 3. Structural model evaluation – Vivo - Maudy

Hubungan Variabel Beta Std Dev t-stat pvalue f2 Q2 VIF
Direct
Celebrity Endorsement → Brand Image 0.573 0.068 8.482 0.000 0.489 0.242 1.000
Brand Image → Purchase Intention 0.859 0.046 18.857 0.000 1.197 0.450 1.489
Celebrity Endorsement → Purchase
-0.193 0.067 2.864 0.004 0.060 - 1.489
Intention
Indirect
Celebrity Endorsement → Brand Image →
0.493 0.074 6.663 0.000 - - -
Purchase Intention
Total
Celebrity Endorsement → Brand Image 0.573 0.068 8.482 0.000 - - -
Brand Image → Purchase Intention 0.859 0.046 18.857 0.000 - - -
Celebrity Endorsement → Purchase
0.300 0.093 3.239 0.001 - - -
Intention

Figure 3. Vivo-Maudy Ayunda path model

There are four main findings from the Table 3.

1. In the case of both brands, Samsung and Vivo, Celebrity Endorsement has a positive and significant effect
to Brand Image (H1s and H1v are accepted, p-value <0.05)
2. In the case of both brands, Samsung and Vivo, Brand image has a positive significant effect towards
purchase intention (H2s and H2v are accepted, p-value <0.05)
3. In the case of Samsung, Celebrity Endorsement does not have a significant effect towards Purchase
Intention (H3s is rejected, p-value >0.05), but in the case of Vivo, Celebrity Endorsement does have a
negative significant effect towards Purchase Intention (H3v is accepted, p-value <0.05)
4. In the case of both brands, Samsung and Vivo, Brand Image mediates the relationship between Celebrity
Endorsement and Purchase Intention. The indirect effect of Celebrity Endorsement towards Purchase
Intention through Brand Image is, surprisingly, positive and significant (H4s and H4v are accepted, p-value
<0.05), regardless of a non-significant effect between Celebrity Endorsement in the case of Samsung, a
negative significant effect in Vivo.

After knowing the relationship between variables at the level of each group, then we want to compare whether
there are differences in the effect between the variables between Group Samsung and Group Vivo. The tool
used is Multigroup Analysis (MGA). To be able to use the MGA analysis, Modified Iterative Communication

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(MICOM) testing was first performed to confirm the differences between the two groups were caused by
differences between the variables.

The MICOM analysis comprises three stages, namely: (1) ensuring the model structure is consistent across
both groups. In the present study, the model structure utilized for both Samsung and Vivo is identical,
indicating completion of this stage; (2) examining compositional invariance. Results indicate that the Original
Correlation value is greater than or equal to the value in the Correlation Permutation Mean column, signifying
the consistency and validity of the analysis despite varying data characteristics; and (3) assessing the
similarity of the model's mean and variance across the two groups. Findings reveal that there is a mean
difference in the Brand Image and Purchase Intention variables, as evidenced by the values in the Mean -
Original Difference column falling outside the 2.5% to 97.5% range. However, the average variance of the
variables across the groups shows no difference.

All three MICOM stages show good results except for the mean similarity parameters between Brand Image
and Purchase Intention. Considering that there are more parameters that are met, the process can proceed
to MGA analysis.

Table 4. MGA analysis result

Path Coefficients-diff p-Value original 1-tailed p-Value new
Path
(Grup A - Grup B) (Grup A vs Grup B) (Grup A vs Grup B)
Brand Image →
-0.064 0.773 0.454
Purchase Intention
Celebrity Endorsement →
0.143 0.070 0.140
Brand Image
Celebrity Endorsement →
0.141 0.095 0.191
Purchase Intention

From the Table 4 it can be concluded that there was no significant difference between the relationship variables
in Samsung brand data and Vivo brand data (all variable relationships had a p-value > 0.05).

Discussion

Through the examination of both brand and industry levels, it has been determined that Celebrity Endorse-
ment has a positive impact on Brand Image and subsequently, Brand Image has a positive impact on
Purchase Intention. These findings confirm our initial hypothesis.

Further analysis conducted on the Vivo-Maudy group suggests that in the industry level, Celebrity Endorse-
ment negatively impacts Purchase Intention. However, in the case of Samsung, the findings suggest that the
effect is not significant. Research conducted by Malik & Qureshi (2016) supports this, indicating that negative
effects can occur when endorsers endorse multiple products.

Despite the non-significant or even negative direct effects between Celebrity Endorsement and Purchase
Intention, Brand Image has been found to positively mediate the relationship between the two on both industry
and brand level analysis. These results suggest the vital role that Brand Image plays in mediating the
relationship between Celebrity Endorsement and Purchase Intention.

After conducting an MGA analysis, it has been observed that there is no significant difference in the impact
on the relationship between variables when comparing a well-established global brand such as Samsung
and a newcomer like Vivo. It is noteworthy that the effect of celebrity endorsement on purchase intention was
not deemed significant in the case of Samsung; however, it had a negative effect on Vivo.

CONCLUSION AND RECOMMENDATIONS

This study emphasizes the significance of brand image in determining purchase intention. It was found that
celebrity endorsements may not have the desired effect on purchase intention when the brand image is not
already established in the consumer's mind. However, celebrity endorsements can be an effective marketing
technique in creating favorable attitudes towards a brand or product. It's important for marketers to note that

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while there is a positive relationship between celebrity endorsement and brand image, the same cannot
always be said for purchase intention. Thus, it is crucial to carefully assess the impact of celebrity
endorsements on purchase intention before implementing advertising strategies.

Based on the conclusions of the study, the authors recommend the following suggestions:
1. Further research can investigate the correlation between the variables by utilizing varying celebrity personas,
such as those who are controversial versus those who are likeable, to examine the impact of persona on
brand image and purchase intention. Additionally, it would be intriguing to explore the disparities among
brand types, such as luxury versus affordable brands, and the influence of celebrity endorsement on
purchase intention. For instance, despite its reputation as a luxury smartphone brand, Apple has refrained
from using celebrity endorsements (Sertoglu, Catli, & Korkmaz, 2014).
2. Further research should also focus on the impact of consumer demographics on the relationship between
celebrity endorsement, brand image and purchase intention as it is likely to have an influence (McCormick,
2016).

By exploring these topics, a better understanding can be gained in relation to how effective celebrity
endorsements can be in influencing customers.

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 Tarigan: The Effect of Celebrity Endorsement on Purchase Intention

Appendix

Operational Definition of Variables

Operationalization of Customer Engagement

Dimensions Elements Items Items (in Bahasa)

Expertise Expert (CE11) Raisa is an expert in the

Raisa ahli di industri entertain.
entertainment industry.

Experience (CE12) Raisa has a lot of experience in Raisa mempunyai banyak

the entertainment industry. pengalaman di industri entertain.

Knowledgeable Raisa has extensive knowledge Raisa memiliki wawasan yang luas
(CE13) of the entertainment industry. mengenai industri entertain.

Qualified (CE14) Raisa is well qualified in her line Raisa memenuhi kualifikasi dalam
of work as an actress. bidang pekerjaannya sebagai artis.

Skills (CE15) Raisa is skilled at doing her job as Raisa terampil dalam melakukan
an actress. pekerjaannya sebagai artis.

Trustworthiness Dependable (CE21) Raisa can be counted on for her Raisa dapat diandalkan
professionalism. profesionalitasnya.

Honest (CE22) Raisa is an honest person. Raisa merupakan sosok yang jujur.

Reliable (CE23) Raisa is a reliable person. Raisa merupakan sosok yang dapat
diandalkan.

Sincere (CE24) Raisa is a genuine person. Raisa merupakan sosok yang tulus.

Raisa is someone you can trust. Raisa merupakan sosok yang dapat
Trustworthy (CE25)
dipercaya.

Attractiveness Raisa is a person who looks Raisa merupakan sosok yang

Attractive (CE31)
attractive. berpenampilan menarik.

Raisa is a classy person. Raisa merupakan sosok yang

Classy (CE32)
berkelas.

Beautiful or Raisa is a beautiful figure.

Raisa merupakan sosok yang cantik.
handsome (CE33)

Elegant (CE34) Raisa is an elegant figure Raisa merupakan sosok yang elegan.

Sexiness (CE35) Raisa is a sexy figure Raisa merupakan sosok yang seksi.

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International Journal of Financial and Investment Studies (IJFIS), Vol. 4, No. 1, April 2023: 50-62

Operationalization of Brand Image

Dimensions Items Items (in Bahasa)

Brand’s The Samsung brand is a well-known

Strength (BI1) Merek Samsung adalah merek yang terkenal.
brand.

Brand’s
I have a favorable opinion of the Saya memiliki opini yang baik mengenai merek
Favorability
Samsung brand. Samsung.
(BI2)

Brand’s The Samsung brand is more unique

Merek Samsung lebih unik dibandingkan
Uniqueness than other brands in the same industry
brand-brand lain di industri yang sama (ex:
(BI3) (ex: product design, promotion strategy,
desain produk, strategi promosi, dll).
etc.).

Operationalization of Purchase Intention

Dimensions Items Items (in Bahasa)

Transactional I intend to buy a Samsung phone in the Saya berniat untuk membeli handphone
(PI1) future. Samsung di masa mendatang.

Preferential Samsung is my preference when I need Samsung merupakan preferensi saya jika saya
(PI2) a phone. membutuhkan atau menginginkan handphone.

Exploration Before buying Samsung products, I look Sebelum membeli handphone Samsung, saya
(PI3) for information about Samsung phones mencari informasi mengenai handphone
first. Samsung terlebih dahulu.

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