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.

Keywords: {'name': 'Perceived Quality'}, {'name': 'Brand Loyalty'}, {'name': 'Celebrity Endorser'}, {'name': 'Purchase Intention'}

Authors & affiliations

Sri Setyo Iriani
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1177/002224379403100204

DOI: 10.2307/41165845

Agung, A. P., Solikhah, & Pamungkas, B. A. P. (2017). Analisis Pengaruh Kredibilitas Selebriti Endorser dan Kredibilitas Merek terhadap Loyalitas Merek. Proceedings National Conference on Applied Business (NCAB), 72-80.

DOI: 10.4172/2165-7912.1000152

DOI: 10.1016/S2212-5671(16)00078-2

Daud, I., & Fitrianto, M. E. (2015). Peran celebrity endorser dalam membentuk perceive value dan purchasing intention. Jurnal Manajemen dan Bisnis Sriwijaya, 13(3), 359-376.

DOI: 10.24843/EJMUNUD.2019.v08.i08.p05

DOI: 10.1177/002224379102800305

Gupta, R., Kishore, N., & Verma, D. (2015). Celebrity Endorsements in Advertising: Impact on Consumers’ Perception, Attitude and Purchase Intention. Australian Journal of Business and Management Research New South Wales Research Centre Australia (NSWRCA), 5(3), 1–15.

DOI: 10.20547/jms.2014.1502202

DOI: 10.1509/jppm.21.1.78.17600

Hussain, M., & Manzoor, S. R. (2011). Relationship of Celebrity Endorsement with Consumers Impulse Buying in Peshawar, Khyber Pakhtunkhwa, Pakistan. Interdisciplinary Journal of Research in Business,1(10), 67-72.

International Coffee Organization. (2020). Coffee Development Report 2020.

DOI: 10.31580/jmi.v4i1.18

Jones, M. J., & Schumann, D. W. (2000). The strategic use of celebrity athlete endorsers in Sports Illustrated: An historic perspective. Sport Marketing Quarterly, 9(2), 65–76.

Khan, M. M., Memon, Z., & Kumar, S. (2019). Celebrity endorsement and purchase intentions: The role of perceived quality and brand loyalty. Market Forces, 14(2), 1-22.

Koththagoda, K. C., & Weerasiri, S. (2015). Celebrity Endorsement and Purchase Intention of Telecommunication Industry in Sri Lanka. International Journal of Science and Research, 6(6), 635–638. https://doi.org/10.21275/30051703

Kotler, P. (2000). Marketing management: The millennium edition (Vol. 199). Upper Saddle River, NJ: Prentice Hall.

DOI: 10.1108/17473611211203939

DOI: 10.1016/j.apmrv.2015.03.005

DOI: 10.5539/ibr.v3n3p63

DOI: 10.1016/S0148-2963(98)00070-8

Malik, M. E., Naeem, B., & Munawar, M. (2013). How does customer satisfaction nurture brand loyalty? Empirical Examination of brand trust as partial mediator. Journal of Basic and Applied Scientific Research, 3(11), 500-507.

DOI: 10.1086/209217

DOI: 10.1086/209217

DOI: 10.1108/JPBM-10-2017-1625

DOI: 10.1108/08876049810219502

Mowen, J. C. & Minor, M. (2002). Perilaku Konsumen (Jilid 1), Edisi Kelima, Jakarta: Erlangga.

DOI: 10.1080/10696679.2018.1534070

DOI: 10.1007/s11846-017-0251-2

Terence, A. S. (2007). Periklanan Promosi (Aspek Tambahan Komunikasi Pemasaran Terpadu). Jilid I, edisi Terjemahan, Jakarta : Erlangga.

DOI: 10.4135/9781446280096.n12

DOI: 10.1504/IJEMR.2008.019813

DOI: 10.1177/0047287514541008

DOI: 10.1108/APJML-09-2017-0203

DOI: 10.1080/15332969.2013.827020

Stephanie, E., Rumambi, L. J., & Kunto, Y. S. (2013). Analisa Pengaruh Rio Dewanto Dan Donita Sebagai Celebrity Endorser Terhadap Minat Beli Produk Axe Anarchy Dengan Daya Tarik Iklan dan Efek Iklan Sebagai Variabel Intervening. Jurnal Manajemen Pemasaran Petra, 1(2), 1–9.

TopBrand-Award.com. (2021). No Title. (https://www.topbrand-award.com/top-brandindex/?tbi_year=2021. Accessed on July 1, 2021).

DOI: 10.21776/ub.jam.2018.016.03.04

Vien, C., Yun, C., & Fai, P. (2017). The Effect of Celebrity Endorsement on Brand Attitude and Purchase Intention. Journal of Global Business and Social Entrepreneurship (GBSE), 1(4), 141–150.

DOI: 10.1108/APJML-08-2017-0176

DOI: 10.1108/APJML-09-2017-0226

DOI: 10.1016/S0148-2963(99)00098-3

DOI: 10.1177/002224298805200302