CC BY
335
DOI 10.18551/rjoas.2019-06.37
THE INFLUENCE OF CELEBRITY ENDORSEMENT ON PURCHASE INTENTION
OF WARDAH LIPSTICK PRODUCTS THROUGH BRAND IMAGE AND BRAND
CREDIBILITY
Sandi Putri Rayining
Master's Program of Management, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia
Surachman, Yuniarinto Agung
Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia
*E-mail: putrirayining11@gmail.com
ABSTRACT
This study aims to analyze the influence of celebrity endorsement, brand image, brand credibility and purchase intention on consumers of Wardah lipstick products in Kediri City. The population of this study is consumers of Wardah lipstick products in the city of Kediri. The sampling technique used purposive sampling with 120 respondents and the data were analyzed using smartPLS 3.0. The test of research instruments includes the inner model test, outer model, path diagram conversion, and hypothesis testing. The results of this study indicate that celebrity endorsement directly does not affect the purchase intention of Wardah lipstick products. The role of brand image is able to mediate the influence of celebrity endorsement on purchase intention of Wardah lipstick products. The role of brand credibility is able to mediate the influence of celebrity endorsement on the purchase intention of Wardah lipstick products.
KEY WORDS
Celebrity endorsement, brand image, brand credibility, purchase intention.
Beauty is the basic capital for modern women who always want to show their existence in sociality. There are many ways that women can do in their efforts to achieve the coveted beauty. Cosmetics are the unique product because in addition to these products have the ability to fulfill women's basic needs for beauty at the same time is often a means for consumers to clarify their social identities in the eyes of society. Nowaday's beauty products have been found on the market, ranging from beauty products that are specific to certain skin types, to beauty products (cosmetics) that have halal licenses for Muslim women. Many cosmetic products offered provide benefits in the use that is needed by consumers drive the spirit of the producers to achieve existing business opportunities, so that from these opportunities produce maximum profits. Thus companies are required to make a marketing strategy to attract consumers that will lead to purchase intentions with these strategies in various ways, one of which is by providing information about products to attract attention and create positive associations (Pangastuti and Purnami, 2015).
Marketing has an important role in which companies must always adjust the strategies. This strategy is used so that the condition of a company will be better in driving fast sales as well as making consumers and customers feel satisfaction. In this case the marketer must be able to change the attitude of a person (consumer), how marketers communicate persuasively to someone (prospective customers) to be able to change their attitude (to choose to buy or not) (Solomon, 2018). One of the marketing strategies carried out by the company in order that their products win the market and attract the attention of consumers so that arise the intention to buy is through advertising, like Wardah produced by PT. Paragon Technology and Innovation. The advantage of Wardah products compared to other cosmetic products is that there is a halal guarantee that is authorized by MUI. In marketing Wardah lipstick products so that it can be accepted by the wider community, especially Muslim
women, Wardah performs various forms of sales strategies with the aim of attracting as many consumers as possible to buy Wardah products, especially in Kediri City. The city of Kediri is one of the cities with a population that is fairly dense because there are many universities, shopping centers. Life in the city is fairly luxurious, so if someone lives in an urban center, they will care more about their appearance.
One of the strategies used by Wardah in attracting people to buy Wardah products is through advertising. The advertising strategy that is popularly used today is the celebrity endorsement strategy which is the use of celebrities to make advertisements more attractive and easily known. Sonwalkar, et al (2011) states that celebrity endorsement is a form of communication where a celebrity acts as a spokesperson for a particular product or brand. Celebrity endorsement as an effort to introduce products is also conducted by PT. Pusaka Tradisi Ibu in promoting cosmetic products, namely wardah. Some research conducted concluded that Celebrity endorsement can have a positive effect on Purchase Intention, (Joseph, 2003; Liu et al, 2007; Jasmina Ilicic and Chintya, 2011) said that Celebrity endorsement has an effect on Purchase Intention, meaning that the use of celebrity endorsement can increase consumer buying interest. In Cormick's (2016) study, research findings show that there is no direct influence from celebrity endorsement on purchase intention. Cormick (2016) said that the experience with celebrity endorsement is not enough to cause purchase intention, an intermediary is needed to strengthen the relationship.
Wardah is a pioneer of halal cosmetics in Indonesia and is also one of the brands that succeeded in becoming the Top Brand of Indonesia compared to other brands. Wardah lipstick products include products that already have a good brand image and product quality and already have halal certificates from LP POM MUI. Celebrity endorsers can bring benefits to products and brands. Celebrity endorsers can increase the brand image of the products that they brought. Consumer assessment of a product is not only seen from celebrity endorsement factors, but also seen from the brand image of the product. Brand image can indicate a certain quality level, so that satisfied buyers can more easily choose products. Shimp et al in Sangadji and Sopiah (2014) said that brand image can be considered as a type of association that arises in the minds of consumers when remembering a particular brand. A pleasant or unpleasant feeling towards a brand will shape that image and will be stored in the consumer's memory. A good and positive brand image will create a good impression in the minds of consumers to consume a brand. Brands play an important role in consumer decision making and choice behavior (Erdem and Swait, 2004). To overcome this problem, companies can use the brand as a signal to effectively convey information about quality to consumers (Erdem and Swait, 2004).
Credibility is considered to be the most important characteristic of brand signals (Erdem and Swait, 2004; Spry et al., 2011). Brand credibility refers to the trust in the position of information on products or services contained in a brand (Erdem and Swait, 2004). In creating interest in buying, companies are required to be able to provide good brand credibility. Brand credibility can be influenced by the credibility of the information sources used in communicating these products. Celebrity endorsement can also be used to form a Brand Credibility of a product and also to drive fast sales.
This study aims to examine and analyze the influence of celebrity endorsement on the purchase intention of Wardah lipstick products through brand image and brand credibility.
LITERATURE REVIEW
Sonwalkar, et al (2011) states that celebrity endorsement is a form of communication where a celebrity acts as a spokesperson for a particular product or brand. The reason why that celebrities are very interested by manufacturers to advertise their products is that the messages delivered by interesting sources (celebrities that are popular) will get greater attention besides being very easy to remember (Royan, 2004). Celebrity can be a marketing tool for a product that is very important, the extraordinary attractiveness and having many fans can be things that no one else has.
Shimp et al in Sangadji and Sopiah (2014) says that brand image can be considered as a type of association that arises in the minds of consumers when remembering a particular brand. According to Tjiptono (2015) Brand image (Brand Image) is observation and trust that is held by consumers, as reflected in the association or in consumer memory."
From some of the opinions of the experts above, it can be concluded that brand image is a series of consumer beliefs about a particular brand so that the brand association is attached in the minds of consumers.
Brand credibility according to Baek and King (2012) is believability (the ability to be trusted) of the product and information embedded in the brand, which depends on consumer perception whether the brand has the ability and willingness to continue to give what has been promised. From the above opinion it can be concluded that brand credibility is the ability to be trusted from the brand of a product and information embedded in the brand, which also depends on consumer perceptions whether the product brand has the ability and willingness to continue to provide and be able to fulfill what has been promised.
Purchase intention is the tendency to buy a brand and in general based on the suitability of the buying motive with the attributes or characteristics of the brand that can be considered (Belc, 2004). Fandos and Flavian (2006) explain that purchase intention is a consumer behavior that can be predicted to occur in the near future regarding the repurchase of a product. Thus it can be concluded that purchase intention includes the interest of someone to buy a product.
Figure 1 - Conceptual Framework
Note:
= Direct influence =-Indirect influence
The hypothesis of this study are:
H1: Celebrity endorsement has a significant influence on Purchase Intention; H2: The role of brand image is able to mediate the influence of celebrity endorsement on purchase intention;
H3: The role of brand credibility is able to mediate the influence of celebrity endorsement on purchase intention.
METHODS OF RESEARCH
This study uses quantitative methods with explanatory research. The population and sample of this study are consumers of Wardah lipstick products in the city of Kediri. The sampling technique used purposive sampling, namely (10 x 11 (Indicator) = 110 respondents (Roscoe in Sugiyono, 2017), but researchers added as much as 10%, so it becomes 120 respondents. Sampling is done by data collection techniques through questionnaire distribution. Data from this study were analyzed using Partial Least Square (PLS) using smartPLS 3.0.
This study consisted of four variables, namely celebrity endorsement as an independent variable, brand image variable and brand credibility as intervening variables and purchase intention variables as dependent variables.
The variable of celebrity endorsement has three indicators namely Attractiveness, Trustworthiness, and Expertise (Shimp 2006 in Suki 2014), Brand image variables have two indicators, namely the superiority of brand associations, the strength of brand associations, and the uniqueness of brand associations (Kotler Keller, 2013), Brand credibility variable using indicators from Erdem and Swait (2006), namely Expertise and Trustworthiness and purchase intention variables have three indicators namely Transactional Interest, Referential Interest, and Preferential Interest (Ferdinand, 2006).
RESULTS OF STUDY
The results of path analysis of each variable are obtained as follows:
2
Table 1 - Results of the Determination Coefficient (R )
Variable Determination of Coefficient (R2)
Brand Image 0,559
Brand Credibility 0,532
Purchase Intention 0,584
Source: Primary Data Processed (2019).
After knowing the coefficient of R2 then the next step is to calculate Q -square predictive relevance as follows.
Q2 = 1 - (1 - R12)(1 - R22)(1 - R32) = 0,91414
Where: Q2 = predictive relevance; R^ = coefficient of determination of brand image; R22 = coefficient of determination of brand credibility; R32 = coefficient of determination of purchase intention.
Based on the results of the above calculations, it can be concluded that this research model is categorized on a strong/solid model (Ghozali & Latan, 2015). This means that 91,41% of purchase intention variables can be predicted by the variable of celebrity endorsement, brand image, and brand credibility. The rest which is equal to 8,59% is explained by other variables that not found in this research model.
Table 2 - Path Coefficient
Hypothesis Inter-Variable Relationships Path Coefficient t- statistics P-value Information
Independent Variables Dependent Variable
H1 Celebrity Endorsement Purchase Intention 0,083 0,643 0,521 Not significant / H1 rejected
Celebrity Endorsement Brand Image 0,748 14,751 0,000 Significant
Celebrity Endorsement Brand Credibility 0,729 12,757 0,000 Significant
Source: Data processing, 2019.
The results of the first hypothesis testing indicate that the H1 path coefficient value is 0,083 with the t-statistics value of 0,643 and the significance level (p-values) of 0,521. Looking at the parameter provisions the value of t-statistics > 1,96 and the significance level <0,05, then the H1 result is not significant. This shows that celebrity endorsement does not have a significant direct effect on purchase intention, thus Celebrity Endorsement does not have a significant effect on purchase intention.
The results of testing the second hypothesis indicate that the relationship of celebrity endorsement on purchase intention mediated by brand image has a t-statistics value that is greater than t-table (> 1.96) namely equal to 3,833, so that it can be declared significant. This shows that the image brand is able to mediate the influence of celebrity endorsement on
purchase intention. Thus the role of Brand Image is able to mediate the influence of Celebrity Endorsement on Purchase Intention.
Table 3 - Indirect Influence Results
Hypothesis Relationship Indirect Coefficient t-statistics P-value Information
H2 Celebrity endorsement ^ brand imaged purchase intention 0,301 3.833 0,000 Significant / H2 accepted
H3 Celebrity endorsement ^ brand credibility^ purchase intention 0,270 3,426 0,001 Significant / H3 accepted
Source: Processing data with PLS, 2019.
The results of testing of the third hypothesis indicate that the relationship of celebrity endorsement on the purchase intention mediated by brand credibility has a t-statistics value that is greater than t-table (> 1,96) which is equal to 3,426, so that it can be declared significant. This shows that brand credibility is able to mediate the influence of celebrity endorsement on purchase intention. Thus the role of Brand Credibility is able to mediate the influence of Celebrity Endorsement on Purchase Intention.
DISCUSSION OF RESULTS
Influence of Celebrity Endorsement On Purchase Intention. The findings in this study indicate that celebrity endorsement has no influence on buying interest. In other words, the use of celebrity endorsement received by consumers from Wardah brand lipsticks is not able to directly influence consumers' buying interest in Wardah brand lipstick. The results of this study contradict with the results of previous studies conducted by Joseph, (2003); Liu et al, (2007); Jasmina Ilicic and Chintya, (2011), As well as Krikitika Nagdev and Raman Preet Singh (2016).
The overall research shows that there is a direct influence of celebrity endorsement on purchase intention. The use of celebrities as endorsers becomes the prediction in influencing purchase interest Liu et al (2007). Jasmina Ilicic and Chintya, (2011), also agreed to this opinion and stated that the use of celebrities as endorsers was considered to get attention, be liked and impacted, although in general it was not considered too convincing or credible.
The credibility and trust that perceived from endorsers are found as two characteristics of the source with the greatest influence on product purchase intentions. However, Cormick (2016) states that celebrity endorsement is not enough to arise the purchase intentions. In order to create a consumer purchase intention, an intermediary or mediation is needed to strengthen the relationship. The findings of this study are in line with Cormick's (2016) study. The use of celebrities as an endorser of the Wardah brand lipstick products has not been able to create consumer buying intentions on Wardah lipstick products.
The role of Brand Image as a mediation of the influence of Celebrity Endorsement on Purchase Intention. Another finding in this study is that brand image has a mediating role in the relationship of the influence of celebrity endorsement on purchase intention. In this study, celebrity endorsement has not been able to provide direct influence on purchase intention. But when mediated by a brand image, a celebrity endorsement is found can affect purchase intention. n other words, the brand image here has a role as full mediation in accordance with the conditions conveyed by Hasan (2014), in the study, consumer celebrity relationships were assessed and emphasized that celebrity attributes (Local or Indian) were not too important to intend to buy existing products, but quality, brand image, and brand loyalty are key factors in the intention to buy. The results of this study are also in accordance with the research conducted by Adamantios Diamantopoulos, et al (2018), stating that a strong brand image has a positive impact on the product and can generate interest in consumer purchases, therefore, marketers must develop effective marketing communication programs that creating a brand image to motivate consumers to have purchase intentions.
Based on the analysis result, the reasons for respondents choosing Wardah is because of halal products from Wardah lipstick. These results indicate that Wardah succeeded in
creating a mindset as halal cosmetics in the minds of consumers and became a reason for some Muslim women to choose Wardah brand lipstick cosmetics.
The role of Brand Credibility as a mediation of the influence of Celebrity Endorsement on Purchase Intention. Another finding in this study is that brand credibility has a mediating role in the relationship of the influence of celebrity endorsement on purchase intention. Based on the discussion in the previous sub-chapter, it is known that celebrity endorsement has not been able to provide direct influence on purchase intention. But when mediated by brand credibility, celebrity endorsement found can affect purchase intention. According to Wang, et al (2017) in the previous sub-chapter, said that a company can work to build brand credibility driven by the quality of information conveyed by the company through a marketing strategy namely by using celebrity endorsement. So that buying interest arises from consumers to obtain these products because they have been well informed about the company's brand.
When consumers get positive and reliable information from Wardah lipstick, there is a deep sense of trust in Wardah brand lipstick products, this trust will affect them to make purchases on Wardah lipstick products.
CONCLUSION AND RECOMMENDATIONS
Based on the testing of the hypothesis, the results of the discussion, and the findings of the study, it can be stated the following conclusions:
• Celebrity endorsement has no effect on purchase intention. This means that as good as any use of celebrities as endorsers is increased, it is not able to increase interest in buying Wardah lipstick in the city of Kediri;
• Celebrity endorsement influences purchase intention with the brand image as full mediation. This shows that the more the brand image increases it can influence and determine the influence of celebrity endorsement on the purchase intention of consumers of Wardah lipstick products in Kediri City;
• Celebrity endorsement has an effect on purchase intention with brand credibility as full mediation / full mediation. This shows that a company can work to build brand credibility driven by the quality of information conveyed by the company through marketing strategies, namely celebrity endorsement, so that buying interest arises from consumers to obtain these products because they are well informed about Wardah brand lipstick products.
For further researchers it is recommended to add several variables that affect purchase intention, such as price, quality or other variables that can support research, so that able to increase product purchase intentions. Further researchers are advised to increase the age range of the sample, because the age of puberty from the age of 12 years already knows cosmetics.
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