THE MEDIATING ROLE OF BRAND CREDIBILITY ON CELEBRITY CREDIBILITY IN BUILDING BRAND EQUITY AND IMMUTABLE CUSTOMER RELATIONSHIP
The objective of this study is to examine how celebrity credibility affects customer-based brand equity and relationship continuity expectation. Brand credibility is examined as a mediator, and the number of years of usage i.e., past experience with the product (a smartphone), is taken as a moderator, to test whether there is any significance difference between a new and an old customer of the product. Age and gender are considered as control variables in the study. In the present study, the smartphone is used as a stimulus. Brand credibility acts as a mediator as the stimulus is a physical product.
The participants of the study were selected from 10 major mobile phone retail outlets and two shopping malls with the highest footfalls, in a major city of West Bengal. The retail outlets and shopping malls were visited on weekends over a period of three months. The sample consisted of adult individuals ( 18 years and above) with smart phones or planning to purchase one within a month’s time, and who were exposed to celebrity endorsed advertisements in print, electronic, and/or digital media. The data were collected using systematic sampling with mall-intercept. A total of 376 participants were surveyed.
The result of the study supports the positive direct relationship between celebrity credibility with both, brand equity and relationship continuity expectation. Brand credibility positively and partially mediates the celebrity credibility relationship with brand equity and relationship continuity expectation. It implies that there is a joint positive effect of both celebrity credibility and brand credibility on brand equity and relationship continuity expectation. The results suggest that the role of celebrity credibility is almost double in low-experience users in building a stronger relationship with the brand than in long-term users of a smartphone. This supports the position that new users are more influenced by celebrity credibility than experienced ones. The result of the present study implies that a credible celebrity aids in developing improved brand equity and supports in establishing a strong, unceasing relationship with the brand.