Role of celebrity credibility on banking service providers

Abstract

PurposeThis study examines the role of celebrity credibility in fostering loyalty and long-term commitment toward the financial service provider (banking services in this study) through the development of trust in the service provider. The relationship combines the commitment-trust theory, the source credibility, and the meaning transfer model.Design/methodology/approachThe proposed model uses online survey data from 855 participants. The data are analyzed using structural equation modeling. The relationship between celebrity credibility, commitment, and loyalty to the service provider is explored, with trust in the service provider acting as a mediator. The profession and gender of celebrities are considered moderators.FindingsTrust in service providers partially mediates the relationship between celebrity credibility, customer loyalty, and commitment. Moderation results across multiple groups show that male and sports celebrities are more persuasive in expertise, and customers find women and movie stars to be more effective endorsers in the attractiveness dimension.Research limitations/implicationsThis study focuses only on banking services with data collected from a single country to examine a celebrity’s role as a spokesperson.Practical implicationsConsidering the benefits of having a well-known celebrity as a spokesperson for financial services like banking is intriguing. Given the unique characteristics and significant perceived risk associated with financial services, marketers may consider hiring celebrity endorsers to increase tangibility and reduce risk.Originality/valueThe results of this study may provide a deeper understanding of the combined effect of celebrity credibility and trust in financial service providers, which provides tangibility and helps establish a strong customer relationship.