Celebrity Endorsement and Purchase Intention : The Role of Perceived Quality and Brand Loyalty

Due to cluttering in advertisements, firms are unable to communicate effectively with potential customers forcing them to use the celebrity endorsement strategy. This paper aims to examine the effect of celebrity endorsement (i.e. attractiveness, credibility and product match-up), perceived quality and brand loyalty on consumer purchase intentions. This study also examines the mediating role of perceived quality in brand loyalty and purchase intentions. A total of 800 questionnaires were distributed to young adult consumers out of which 560 usable responses were received. After preliminary statistical analysis, the Smart PLS software was used for estimating the measurement and structural models. The results suggest that three aspects of celebrity endorsement (i.e. celebrity attractiveness, credibility and product match-up) promote purchase intentions. Brand loyalty and perceived quality also promote purchase intentions. Moreover, perceived quality affects brand loyalty, while brand loyalty mediates the perceived quality and purchase intentions relationship. It is important for marketing managers to select the right celebrity for endorsement. Various celebrities may not be effective for several product categories and target audience. Therefore, it is recommended that marketing managers while selecting a celebrity must carefully consider product attributes, celebrity personality and the characteristics of the target audience. Moreover, the selected celebrity should not have endorsed too many products or competing brands. Ignoring these aspects may confuse consumers and adversely affect brand image. Firms should also not ignore brand quality and loyalty as both are important determinants of purchase intentions and brand image