From Celebrity Endorsement and E-WOM to Purchase Intention: A Moderator Model Examining Negative Publicity

Using celebrity endorsements to raise awareness of products and services has given rise to electronic word of mouth (eWOM) and is currently a concern of many industries. However, the negative publicity impact of endorsements also influences purchase intentions. This study aims to analyze the role of celebrity endorsement and eWOM in influencing the purchase intention of local fashion products. Additionally, examine the impact of negative publicity as a mediator. The quantitative research method uses a questionnaire as a data collection tool. The research questionnaire was distributed online through social media platforms. The research sample is 200 and selected purposively. Hypothesis testing uses Partial Least Square-Structural Equation Modeling (PLS-SEM). This research has proven that celebrity endorsement and eWOM positively and significantly impact local fashion products' purchase intention. In addition, this research also found that negative publicity significantly moderated the relationship between celebrity endorsement and the purchase intention of local fashion products. Theoretical and practical implications for researchers and practitioners regarding using celebrity endorsers to improve company performance have been discussed.