Celebrity Endorsement on Purchase Decision: The Mediation Analysis of Women’s Price Perception

Abstract

As one of the most interesting research topics recently, social media marketing reveals many new and/or advanced research variables, and one of such variables is an endorsement of social media celebrity. According to the literature, a celebrity endorsement is seen as a strategy of marketing, which involves through the use of a well-recognized person’s service, such as a celebrity in order to promote a brand of product and/or service. However, this study reveals that there are lack studies explain the role of celebrity endorsement on purchase decision in Asian research context. Following this phenomenon, this study then aims to apply a quantitative research method in order to reveal the role of celebrity endorsement on purchase decision. As a research novelty, this study also reveals that there are few studies explain the role of celebrity endorsement on purchase decision with the mediation role of price perception. With the sample size is 100 female respondents, as theoretical contribution, this study then finds that there is no significant moderation role of women’s price perception on the relationship between customer endorsement and purchase decision. As for managerial contribution, the findings of this study are considered to be important for business owners, who primarily promote and sell a cosmetic product, in crafting a proper social media marketing strategy that later helps to maximize and improve revenue.