The Effect of Celebrity Endorsement and Parasocial Interaction on Somethinc Products Purchase Decisions
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 10
Abstract
The current technological changes are influencing social and economic sectors, leading to changed businesses from conventional to engaging more extensively on digital platforms. Social media is a digital platform that has emerged as a global phenomenon. Marketing through social media provides numerous brand benefits, making it the top tool for online marketing especially in Indonesia. In the realm of commerce, there exists a compelling necessity for enterprises to engage in innovation as a means to captivate their inbuilded consumer base. One such innovation strategy is the utilization of celebrity endorsements.Through social media, celebrities possess the capability to foster intimate Relationships with their followers through direct interactions. This study aims to analyze the effect of celebrity endorsement through the dimensions of celebrity endorsers and parasocial interactions on purchasing decisions of TikTok users for Somethinc products in Indonesia. Data collection was carried out using an online survey method, utilizing a purposive sampling technique, collecting 280 responses from respondents. Data analysis was executed utilizing AMOS 24 in conjunction with the Structural Equation Modeling (SEM) methodology. The results showed from seven hypotheses proposed, five hypotheses were accepted, and two hypotheses were rejected. Attractiveness and Expertise of celebrities endorser have a positive and significant impact on parasocial interactions and consumer purchasing decisions. However, Trustworthiness does not exert any discernible influence on either parasocial interactions or purchasing decisions. Furthermore, this research also established that parasocial interactions occurring among consumers and celebrities have a positive and significant influence on decision-making process regarding purchases.
Authors and Affiliations
Nabila Putri Maharani, Satria Bangsawan, Mahrinasari MS
Keywords
Related Articles
- EP ID EP727596
- DOI 10.47191/jefms/v6-i10-14
- Views 43
- Downloads 0
Amelioration of Environmental Sustainability: Green Accounting as Management and Control in the Green Swan Era
This study investigates the impact of green accounting and green swan on the business performance of star hotels in Bali. Employing a multiple linear regression analysis on a sample of 137 star hotels acquired through a...
Relevance of Value Owned Profit and Cash Flows Based on the Life Cycle in the Growth Stage of Food and Beverages Companies Listed on the Indonesia Stock Exchange
This study aims to determine the relevance of the value of earnings and cash flow as a measure of accounting performance against market value when the company is in the growth life cycle. The sample of this company is a...
The Role of Improving the Tax System in the Development of Entrepreneurship During the Pandemic
This article describes the tax benefits provided to businesses in Uzbekistan during the pandemic, their content and amount. As a result of the analysis, the author made the following proposals: to ensure the complete tra...
Use of the E-Filing System by MSME Actors during the COVID-19 Pandemic
This study aims to determine the effectiveness of e-filing system usage for MSME taxpayers in Indonesia during the COVID-19 pandemic. Community activities’ restrictions on national scale cause taxation activities are als...
The Impact of the Cash Compensation Gap between Executives and Employees on Corporate Performance
This study was conducted to analyze the impact of the compensation gap between executives and employees on corporate performance for companies listed on the Korea Exchange from 2010 to 2021. First, it was found that the...