Abstract
ABSTRACT This paper investigates if celebrity endorsement offsets the negative effect low prices have on quality perceptions. This research highlights the interactive effect between celebrity endorsement and pricing on purchases (Study 1) and shows that celebrity endorsers’ level of expertise improves perceptions of low-priced offerings and increase purchases. Study 2 finds the mediated effect of price on purchase intentions via quality perceptions is moderated by endorser type such that a celebrity improves the quality perceptions of low-priced products. Study 3 shows price-quality perceptions mediate the effect of price on purchase intentions. Results suggest celebrity endorsements are effective in promoting low-priced offerings.
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