The Effect of Korean Celebrity Endorsement on Perceived Product Quality and Brand Loyalty: Case of Indonesian Skincare Brand in DKI Jakarta
Main Article Content
Abstract
According to Indonesian Cosmetic Association, the beauty industry in Indonesia has rapidly increased as the number of brands varied. To attract more customers, many local brands adopt a celebrity endorsement strategy with Korean stars. In recent years’ Korean celebrity endorsement has brought the eye of the public and has benefited businesses in increasing the awareness from fans and sometimes even selling out. However, it becomes a concern whether this strategy can bring the intended result and bring actual buying behavior. The purpose of this research is to examine the impact of celebrity endorsement on perceived product quality and brand loyalty among 100 young-adult women exposed to Somethinc skincare brand and NCT who have previously purchased the product in DKI Jakarta. This study uses quantitative analysis with Partial Least Square Equation Modeling (PLS-SEM) to analyze the data. The result of this study shows that Celebrity Endorsement shows a positive relationship with Perceived Product Quality. And
Perceived Product Quality positively affects Brand Loyalty. This study provides empirical evidence that the above-mentioned relationships do exist, and companies can strategically leverage the facts to their advantage and drive customer perceptions of quality and loyalty through the promotion of appropriate celebrity endorsements.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
International Journal of Business Studies by Sekolah Tinggi Manajemen IPMI is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a CC BY-SA Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
4. Copyright Transfer Agreement Form can be downloaded HERE.