The Impact of Celebrity Endorsement on Brand Loyalty: Mediating and Moderating Mechanisms

Abstract

Applying the meaning transfer theory, the purpose of this study is to proffer a theoretical framework in which celebrity endorser’s credibility (CEC) effects the brand loyalty through the mediating role of brand relationship quality and the moderating role of the celebrity-brand congruence. Data was gathered through an online survey from young Korean millennials and tested using structural equation modeling and multi-group techniques. The findings revealed that brand relationship quality serves as a partial mediator of the effect of CEC on brand loyalty. The findings also suggested that celebrity-brand congruence acts as a moderator between CEC and the brand relationship quality. This study offers useful practical implications for luxury marketers and advertisers.