Analyzing the Influence of Korean Celebrities as Brand Ambassadors toward Customer Loyalty in Indonesia

Abstract

K-Wave, also known as Hallyu, has taken over Indonesia, particularly among millennials. It is getting more challenging to find luxury brands that do not hire K-pop stars or Korean celebrities as their global ambassadors. Due to their promising engagement, several brands in Indonesia are currently courting Korean celebrities to become brand ambassadors. It is important to note that customers may be aware that the artist may not use products from all of the brands. Consequently, brands in Indonesia continue to employ Korean celebrities as brand ambassadors. Developing strong brand loyalty is one strategy to achieve success in a market that is saturated with competitors and where the costs of switching from one seller to another are very low. To cultivate consumer loyalty, brands should give opportunities for consumers to engage in activities they enjoy. Young Indonesians were attracted to K-pop because it gave them a sense of escape and community. Whether through personality congruence between the company and the celebrity or through fan engagement, leveraging Korean celebrities to create customer loyalty for brands in Indonesia. This research mostly employs quantitative methods to collect data. A questionnaire-based online survey will serve as the research tool. Respondents were offered a series of questions requiring multiple-choice, likert-scale, and short-answer responses. The survey was made accessible to respondents via multiple online platforms. Due to the widespread circulation of survey links via the internet, a screening question was necessary to validate that respondents are qualified to finish the survey. The screening questions determined whether or not respondents had purchased products or services from the brand whose brand ambassadors are Korean celebrities. In order for their future survey response to be valid, the requirement must be met. According to the data analysis results, personality congruence and fan engagement have a significant impact on strengthening customer brand loyalty through brand attachment and brand love. The majority of respondents believe that Korean celebrities are attractive and that purchasing their endorsed products is a sort of support for them. The results of this study also indicated that the type of items purchased had no effect on consumer loyalty. Therefore, brands in Indonesia are not required to develop a marketing strategy that is especially targeted to their products. Implementing brand matching and gamification techniques, as well as developing an exclusive ecosystem for their products, are a few things Indonesian companies should do if they want to maximize the impact of Korean celebrities as brand ambassadors.