The Effectiveness of Korean Celebrity Endorsement Towards Purchase Intention Mediated by Brand Image in the Case of Somethinc.

Dylan Gregory, Jason Evander Chan

Abstract


Over the last several years, Indonesia's cosmetics and skincare sector have exploded. Regardless of age or gender, more individuals are becoming more concerned about their physical appearance, health, and self-care. With such a large market, many Indonesian entrepreneurs are starting their own skincare companies, like Somethinc. A significant marketing budget is required for a new brand to gain notoriety and brand awareness. The endorsement of South Korean celebrities is one of the most recent trends followed by Indonesian skincare firms. The utilization of celebrity endorsements and an appealing special package will improve the customer's perception of the company's brand image. A positive perception between the customer and the firm will impact customers' and future purchase intentions. This study aimed to see how celebrity endorsement influenced purchase intentions for Somethinc cosmetics by using the brand image as a mediator. This study was conducted by giving questionnaires to people who were at least 17 years old, lived in Indonesia, using skincare or/and make-up in their daily basis, and aware with the Somethinc brand. The quantitative research uses simple random sampling and the data is analyzed using Smart Partial Least Square (PLSM) technique. The findings show there is a significant influence of celebrity endorsement towards purchase intentio and brand image, also brand image towards purchase intention. In addition, brand image has a complementary or partial mediation between celebrity endorsement and purchase intention.


Keywords: celebrity endorsement, brand image, purchase intention, Somethinc.


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