THE INFLUENCE OF INTERNATIONAL SPORT CELEBRITY ENDORSEMENT IN INSTAGRAM ON INDONESIAN CUSTOMER PERCEIVED VALUE AND PURCHASE INTENTION

Abstract

Purpose The purpose of this research is to find out the influence of international sport celebrity endorsement in instagram towards Indonesian customer perceived value and purchase intention. Design/Methodology/Approach In order to conduct this study, quantitative research was chosen with an online questionnaire of 39 statements. 305 respondents responded on the survey using purposive sampling method. It was specifically targeted to people who never buy product of Nike and live in Indonesia. Statistical tools was performed to find out the construct validity of data using factor analysis technique and from all data was valid where the KMO ranging from 0.88 to 093, communalities is range from 0.52 to 0.82, total variance ranging from 60,64% to 71,35%, and rotate componenet matrix ranging from 0.63 to 0.83. Then, a reliability test was conducted using Cronbach’s Alpha criteria and from that data were reliable ranging from 0.86 to 0.93. Moreover, Structural Equation Modeling or SEM was utilized as a tool to test theoritical framework as well as hypotheses. Findings From the analysis of stasictical software and Structural Equation Modeling (SEM), it concludes that there is a significant influence between attractiveness, congruence, and expertise toward perceived value, there is a significant influence between congruence, expertise toward purchase intention, and lastly, there is a significant influence between perceived value toward purchase intention. Originality/Value The study regarding the influence of international sport celebrity endorsement Cristiano Ronaldo in instagram on Indonesian customer purchase intention has not been done before. Moreover, the majority of past researches only investigate the dimentions of celebrity endorsement towards purchase intention. There is limited study investigating the celebrity endorsement towards puchase intention with perceived value as a mediate influencer.