The Effect of Celebrity Endorsement and Parasocial Interaction on Somethinc Products Purchase Decisions

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.