Celebrity Endorsement and Impulsive Buying Intentions in Social Commerce - The Case of Instagram in Indonesia: Celebrity Endorsement

Celebrity Endorsement and Impulsive Buying Intentions in Social Commerce - The Case of Instagram in Indonesia: Celebrity Endorsement

Yu-Qian Zhu (National Taiwan University of Science and Technology, Taipei, Taiwan), Dinna Amelina (National Taiwan University of Science and Technology, Taipei, Taiwan) and David C. Yen (Texas Southern University, Houston, USA)
Copyright: © 2020 |Pages: 17
DOI: 10.4018/JECO.2020010101

Abstract

Based on the source credibility model and social network aspects, the authors investigated how endorsement on social media affects consumers' perception of the brand, attractiveness of the product, and ultimately, their impulse to buy. It was postulated that the endorsers' attractiveness, expertise, and trustworthiness, along with their interactivity with followers to be positively related with consumers' attitude toward the brand and merchandise attractiveness, which in turn led to impulse to purchase. These hypotheses were tested by conducting online survey with 204 participants in Indonesia. Study findings indicate that attitude toward brand was influenced by attractiveness and trustworthiness of the endorser, product attractiveness was positively associated with expertise and trustworthiness of the endorser. Brand attitude and merchandise attractiveness, in turn, are positively related to impulse to purchase.
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Introduction

Social commerce, or the convergence of social networks and e-commerce, has emerged as a phenomenon of global interest to businesses and researchers (Baethge, Klier, & Klier, 2016; Liang et al., 2011). With the increasing penetration of social media in our daily life, social media has become an important source of influence on consumers’ purchasing decisions. Social commerce, therefore, has the potential to become a significant sales channel and growth engine for e-commerce in the future (Baethge et al., 2016).

Although there has been an increase in research/studies focusing on social commerce in recent years (Baethge et al., 2016), relatively little research, however, has been conducted under the developing countries context except a few pioneer works (e.g., Amelina & Zhu, 2016; Walden & Browne, 2007; Xiang, Zheng, Lee, & Zhao, 2016). Emerging and developing economies are home to eight-five percent of the world’s population and account for almost sixty percent of global GDP. They not only contributed more than eighty percent of global growth since the 2008 financial crisis, but also helped to save many jobs in these advanced economies (Lagarde, 2016). For developing countries, the introduction of the social element in e-commerce helps to enhance trust and intentions to buy (Hajli, 2015). Furthermore, social media serves as an e-commerce platform with readily-available features and easy-to-use functionalities, enabling business owners with limited technology expertise and resources to quick establish their business (Amelina & Zhu, 2016). As a result, e-commerce conducted on the social platform has seen exponential growth, or even developed into the dominant form of e-commerce in developing countries (Hassan, Shiratuddin, & Ab Salam, 2015; Redwing Asia, 2013).

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