INFLUENCE OF CELEBRITY ENDORSEMENT TOWARD PURCHASE INTENTION ON LOCAL COSMETICS: A SURVEY OF FEMALE YOUNG-ADULTS ON WARDAH COSMETICS IN JABODETABEK, INDONESIA

Abstract

Indonesia as the 4th largest-population country in the world, provides appealing opportunities for cosmetics industry. Cosmetics available in Indonesia are both imported and local, thus creating tougher competition. In order to survive, local cosmetics must strive hard by improving efforts on Promotion, which one of the tool is celebrity endorsement shown in advertisement. Wardah, as one of the local cosmetics player, is striking on using this tool and spending huge budget on it. Though the use of celebrity endorsement is common, its effectiveness is still questionable. This research analyzes the influence of Celebrity Endorsement, which will be mediated by Attitude toward the Ad and Brand, toward Consumers’ Purchase Intention on Wardah. The survey is conducted on female young-adults whose age ranging from 17-30 and live in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) region. The result of this research is expected to be helpful for local cosmetics to evaluate the effectiveness of celebrity endorsement. The primary data were collected through electronically distributed questionnaire spread on internet. With the total 360 respondents as sample size, the data obtained was processed through statistical software by using factor analysis and structural equation modelling. It was found that consumers’ Purchase Intention is not necessarily influenced only by Celebrity Endorsement, rather by the series of significant relationship between Celebrity Endorsement – Attitude toward the Ad – Attitude toward the Brand. Therefore, local cosmetic companies are recommended to not only hire attractive and famous celebrity to be endorser of products, but also improve the quality of advertisement to improve consumers’ positive attitude toward brand and greater purchase intention.