The Effect of Celebrity Endorsement on Instagram Fashion Purchase Intention: The Evidence from Indonesia

Halimin Herjanto,Elizabeth Wijaya,Hatane Semuel,Michael Adiwijaya

doi:10.15388/omee.2020.11.31

Halimin Herjanto, Elizabeth Wijaya + Show 2 more

Open Access

https://doi.org/10.15388/omee.2020.11.31

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Abstract

To maintain the significantly positive influence of celebrity endorsement (CE) on Instagram user consumption behavior, scholars and business practitioners are motivated to have a better understanding of this phenomenon. Literature on CE focuses on its direct effect on attitude toward various brand components; however, this study takes a different approach by developing a new conceptual model and a set of hypotheses that aims to generate a better picture of the relationship between two brand components (brand image and brand trust) and repurchase intention. The present study also examines the moderating role of CE in the relationship between brand image and brand trust as well as repurchase intention. The hypotheses were tested using online survey data from 220 Indonesian respondents. To test the theoretical model, this study employs ordinary least square regression (OLS), as well as Baron and Kenny’s (1986) method to test moderating hypotheses. The results show that the hypothesized model of CE on brand image, brand trust and repurchase intention fits the data. In addition, the findings also demonstrate that CE moderates the relationship between brand image and brand trust, and between brand image and repurchase intention. The findings offer important contributions to the academic by enriching the body of literature on online consumption behavior. They reveal the moderating effect of CE, and potentially inspire scholars to conduct further research. To business practitioners, this study suggests the importance of engaging with celebrities to endorse their brands. At the same time, to avoid the risk of reverse image, managers are recommended to think carefully about which celebrities are suitable to represent their brands.

Highlights

To improve their digital infrastructure, Indonesia introduced the Internet superhighway “Palapa Ring” that connects districts and cities across Indonesia (Beritasatu, 2019)
The results show that the hypothesized model of celebrity endorsement (CE) on brand image, brand trust and repurchase intention fits the data
The study hypothesized that CE moderates the relationship between brand image and brand trust as well as between brand image and purchase intention

Summary

Introduction

To improve their digital infrastructure, Indonesia introduced the Internet superhighway “Palapa Ring” that connects districts and cities across Indonesia (Beritasatu, 2019). 65% of Indonesian population, or 171 million Indonesians, have Internet access (Indonesia Investment, 2019) This Internet superhighway allows 96% of its users to experience online shopping through company websites and social media. The Indonesian fashion industry employs local celebrities to represent and endorse their brands on their social media, such as Instagram (Danniswara et al, 2017). Wahloonluck and Chokesamritpol’s (2013) study on Thai’s social media found that CE helps the ice cream industry reach its customers and promote its brands. To these authors, featuring celebrities on social media improves social media attractiveness. Other scholars have found that featuring celebrities on Instagram potentially lowers a brand’s perceived uniqueness (De Veirman et al, 2017)

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