Do you (still) hire celebrities to increase purchase intention?

Abstract

The development of the coffee industry in Indonesia is growing significantly, as it is driven by the number of coffee shops that are developing both in villages to urban areas as a balancer for people's lifestyles who like to drink coffee while enjoying activities outside the home. This phenomenon makes the level of competition for coffee brands in packaging very hypercompetitive. Consumer intentions in deciding to buy packaged coffee are strongly influenced by the perception of the quality of the coffee, so it is not surprising that currently there are many different flavors and brands. To market coffee products, many producers use celebrity endorsement services. However, as time goes by and the marketing strategy through endorsement has become massive, it is necessary to study whether this strategy is still effective in increasing the number of sales. It turns out that currently, endorsements do not really affect consumer purchasing decisions. From the results of the study, it can be concluded that: (1) perceived quality influences the intention to purchase packaged coffee, and perceived quality also influences brand loyalty in packaged coffee; (2) celebrity endorsement does not influence the intention to purchase packaged coffee, but celebrity endorsement influences the brand loyalty; and (3) brand loyalty influences the intention to purchase packaged coffee. So that in general brand loyalty is able to mediate the influence of perceived quality and celebrity endorsement on the intention to purchase packaged coffee.