The other business aside from showbiz: Effectiveness of celebrity endorsing their own business venture

• Main Authors: Bautista, Reynaldo A., Jr., Mangilet, Dave Vincent A., Reyes, Mirabel
• Format: text
• Published: Animo Repository 2020
• Subjects: Endorsements in advertising; Businesspeople; Advertising and Promotion Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/10343
• Institution: De La Salle University

The pandemic has redefined the business landscape globally. Some sectors are forced to reduce their operations while others are left with no choice but to close their shops. The show business is not exempted from the negative effects of the pandemic. As celebrities grapple with the situation, some decided to put up their own enterprise to cope with their financial losses. In the Philippines, it is common to see celebrities endorsing their product or brand as their primary mode of promotion. This study will explore the effectiveness of this approach as perceived by the consumers. The contribution of this paper is a conceptual framework that combines the tri-model component (Ohanian, 1990) as predictors of perceived risk and credibility. Subsequently, perceived risk and credibility will influence electronic word of mouth and intention to purchase the products (see figure 1). Using the Tri-component model, Ohanian (1990) developed the scales to measure sources such as trustworthiness, expertise, and attractiveness; it is called a tricomponent model of source credibility. The model used source credibility (Hovland et al., 1953) and the source attractiveness model (McGuire, 1985) for constructing the measurement scales. The source credibility model measures only celebrity trust and expertise as the dimensions, whereas the source attractiveness model measures the celebrity attractiveness attributes. The tri-component model has combined the attributes of source credibility and source attractiveness to derive three dimensions to measure the impact of celebrity credibility (trust, expertise and attractiveness) on consumer behavior. These variables will be used as antecedents to perceived risk and credibility.