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Celebrity endorsements create a magnitude of meaningful differences among luxury brands that subsequently generate skyrocketing sales fueled by celebrity-inspired consumer’s confidence. The present study explores the impact of celebrity endorsements as a modern marketing technique on customers' purchase of luxury brands. Applying the signaling theory and quantitative research approach, a standardized questionnaire facilitated a survey of 300 potential buyers of luxury brands in Pakistan. The partial-least squares structural equation model (PLS-SEM) based findings revealed that celebrity endorser has a favorable impact on consumers' perceptions of psychological ownership, brand trust and brand attitude. Notably, the customer’s psychological ownership, brand trust, and brand attitude significantly mediate celebrity endorsement and luxury brand purchase intentions through multiple pathways. The present study offers new insights on the theoretical and practical consequences of celebrity endorsement for luxury brands, especially pinpointing the potential mediating channels (i.e., psychological ownership, brand trust, and brand attitude) that can significantly enhance customer’s confidence and purchase intentions of luxury brands.
Sanan Waheed Khan, Umer Zaman (Corresponding author). (2021) Linking Celebrity Endorsement and Luxury Brand Purchase Intentions through Signaling Theory: A Serial-Mediation Model involving Psychological Ownership, Brand Trust and Brand Attitude, Pakistan Journal of Commerce and Social Sciences, Volume 15, Issue 3.
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