THE ROLE OF CELEBRITY CREDIBILITY ON PURCHASE INTENTION OF LOCAL FASHION BRAND IN INDONESIA

• Main Author: GEDE DAWAN ADI BAGASKARA (19015198), DEWA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26548
• Institution: Institut Teknologi Bandung

Local fashion brand in Indonesia has been growing rapidly due to the enthusiasm of Indonesian young consumer in searching for a local fashion brand online especially in Instagram. Therefore, it is seen as a promising business since it has a large number of potential consumers. Plenty number of local fashion brands utilize Instagram as their marketing channel that creates a tight competition among local fashion brands in Instagram. To survive in this competitive market, celebrity endorsement practice is deemed as one of the solution in advertising strategy on Instagram. Celebrity is perceived more attractive and persuasive. However, choosing the right celebrity to endorse local fashion brands which may lead to purchase intention is still questionable. This research investigates the effect of celebrity endorser’s credibility on purchase intention of local fashion brand in Instagram by examining the mediating role of attitude toward advertisement between celebrity credibility and purchase intention. The effect of celebrity credibility will be measured by using source credibility (expertise and trustworthiness) and source attractiveness. The data is collected by spreading a survey through online questionnaire. There are 300 valid respondents. To analyze the data, this research uses PLS-SEM. <br /> <br /> Finding shows that attractiveness significantly affects attitude toward advertisement and purchase intention of local fashion brand. Meanwhile, purchase intention is not influenced by expertise and trustworthiness. Expertise, trustworthiness, and attractiveness of celebrity can create a positive attitude toward advertisement of local fashion brand.