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American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
A J H S S R J o u r n a l P a g e | 221
American Journal of Humanities and Social Sciences Research (AJHSSR)
e-ISSN: 2378-703X
Volume-3, Issue-10, pp-221-231
www.ajhssr.com
Research Paper Open Access
The Effect of Advertising and Celebrity Endorsement on
Purchase Intention with Brand Awareness as Intervening
Variable
A A Ayu Prabeng Ningrum Satyeng Ningrat1
, Ni Nyoman Kerti Yasa2
1,2
Faculty of Economic and Business, Udayana University, Bali, Indonesia
ABSTRACT: Purchase intention is the intention of the customers to purchase a product of a certain brand in
the future. To increase purchase intention, a company can advertising their product and use celebrity
endorsement, and those also can use to increase the brand awareness. The aim of this study is to determine the
influence of advertising and celebrity endorsement on purchase intention and also to know the influence of
brand awareness as the intervening variable. This research’s object is Vivo V15 in Denpasar City. The number
of samples taken was 150 respondents, using purposive sampling methods. Questionnaires was conducted to
collect the data, measured by 15 indicators and using Likert’s scale. The study used Partial Least Square as the
analytical technique. The result of this research is each of advertising, celebrity endorsement, and brand
awareness has a positive and significant impact on purchase intention. The result also shown that brand
awareness can mediating the relationship between the effects of advertising and celebrity endorsement on
purchase intention. From the result, the management of Vivo V15 have to pay more attention on the factors that
influence purchase intention other than advertising, celebrity endorsement, and brand awareness.
Keywords: Advertising, Brand Awareness, Celebrity Endorsement, Purchase Intention.
I. INTRODUCTION
The existence of industry 4.0 make the development of technology happen so fast and even can’t be
avoided. Information digitalization and the use of artificial intelligent in all sector of human life is a sign of this
industry’s presence (Putrawangsa dan Hasanah, 2018). That is actually one of the reason in the increasing of
smartphone consumption by the community. A survey that conducted by eMarketer show that the smartphone
user in the world in 2016 reach the amount of 2,1 billion people and expected to be 2,87 billion people in 2020.
eMarketer also stated that Indonesia is in third place as the biggest smartphone users in Asia Pacific, with more
than 55 million users in 2015. Statista, 2019 stated that the smartphone penetration growth in Indonesia is
increasing every year and predicted on 2023 will reach the amount of 33%. Those datas indicate the consumer’s
high purchase intention on smartphone and those could mean as an opportunity for the smartphone producer to
fulfill the market needs in Indonesia. Prabawa et al., 2017 stated that purchase intention is a plan of decision to
purchase a things or services or a certain brand. The increasing of smartphone users in Indonesia is an
opportunity for global smartphone producer in the world wide to enter and promote their business in Indonesia,
no exception for Vivo. Vivo is a global smartphone producer with 6 R&D center, and 2014 is its first step to
spread its business to Southeast Asia, including Indonesia. As a new comers they have to compete with its
competitors, Vivo V15’s producer implied strategies to increase the consumer purchase intention of Vivo V15.
Producer of smartphone Vivo V15 use advertising as its strategy to increase the consumer purchase intention.
Advertising is one of the promotion’s media that used for convey the message in order to create and influence
consumer’s behavior (Gunawan and Dharmayanti, 2014).
There’s a positive relationship between advertising and purchase intention. He (2018), Dehghani and
Tumer (2015), Alalwan (2018), Liu et al. (2019), and Martins et al. (2018) stated that advertising attractiveness
influence purchase intention in a positive and significant way, Duffet (2015) on his study also found advertising
has a positive effect on purchase intention. Vice versa with those statement Wibowo and Nurhadi (2017) find
out that advertising’s effectiveness is not influence purchase intention.
A company also use celebrity endorsement as their advertising strategies. Frimpong (2019), Savitri
(2017), Simak et al. (2017), Wang and Nian (2017), Grace et al. (2018), and Nugraha et al. (2018) in their
research shows a positive influence between celebrity endorsement and purchase intention. McCormick (2016)
found a positive and significant correlation between celebrity endorsement and purchase intention. Frimpong et
al., 2019 found that celebrity endorsement has significant influence to purchase behavior including purchase
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
A J H S S R J o u r n a l P a g e | 222
intention. Meanwhile Stephanie et al., 2013 in her research shows that celebrity endorsement has not influence
purchase intention significantly.
Vivo itself use Afgan and Maudy as representative of their product, which is Vivo V15 is the choice of
young generation. In other hand, celebrity endorsement also use to increase brand awareness. It also goes the
same way with advertising that can increase brand awareness. Pratiwi and Rahanatha (2016), Pranata and
Pramudana (2018), Prabawa et al. (2017), Maria et al. (2019), and Chan (2015)found that advertising
significantly influence brand awareness in a positive way. Kim et al., 2018, Rahman (2018), Setiawan
(2018),Ndlela and Tinashe (2016),Rabia et al. (2019), Gunawan and Dharmayanti (2014) in their research stated
that there’s a positive and significant correlation between endorser and brand awareness.
International Data Corporation (IDC), Q2 2018 stated that Samsung has the biggest smartphone’s market
share in Indonesia on 2Q 2017 followed by OPPO, Advan, and Vivo also Xiaomi, meanwhile on 2Q 2018
Samsung still in the first place followed by Xiaomi, Oppo, Vivo, and Advan. From the data we know that
market share of Vivo still lack from its competitors, that’s why they implied a strategy of advertising and
celebrity endorsement to increase brand awareness of Vivo V15. Herdana (2015) stated that brand awareness is
a brand ability to enter into consumer’s mind. Pranata (2018) brand awareness can influence purchase intention
and consumer’s purchasing decision so that’s a company trying to increase their brand awareness, and one of
the way is through promotion in some media. Hasbun and Ruswanty (2016) stated brand awareness as a
fundamental decision in a brand equity, that make a brand easily comes up in consumer’s mind when thinking
of a certain product criteria. Setiawan (2018), Dewi and Jatra (2018), Dewi and Sulistyawati (2018) stated that
brand awareness to purchase intention have a positive and significant effect. Meanwhile Susilo and Hatane
(2015) stated that brand awareness has no significant impact on purchase intention.
The result of pre survey that conducted in 2019 on 30 respondent in Denpasar city, 19 of them agree that
the information that shows in advertising of Vivo V15 is clear and useful. 24 respondent agree that Afgan and
Maudy as celebrity endorser of Vivo V15 have positive image, 18 respondent knows and recognize the
smartphone Vivo V15, and 12 of them are interesting to know more information about smartphone Vivo V15.
76,7% respondent know smartphone Vivo V15 and 73,3% have seen the advertising of smartphone Vivo V15.
Pre survey’s result show that brand awareness of Vivo V15 in Denpasar city is quite high and it’s indicate
enthusiasm of the society on the presence of Vivo V15. Those data is one of the reason to conduct this research
in Denpasar city. As Vivo V15 is a new coming product series of Vivo so the company need to promote its
product through advertising and celebrity endorsement to increase brand awareness in order to increase the
purchase intention.
The purpose of this study are: (a) To explain the effect of advertising on purchase intention, (b) To
explain the effect of celebrity endorsement on purchase intention, (c) To explain the effect of job brand
awareness on purchase intention, (d) To explain the effect of advertising on brand awareness, (e) To explain the
effect of celebrity endorsement on brand awareness, (f) To explain the role of brand awareness in mediating the
influence of advertising on purchase intention, (g) To explain the role of brand awareness in mediating the
influence of celebrity endorsement on purchase intention.
1. Conceptual Model and Hypothesis Development
H1: Advertising has a positive and significant influence on purchase intention
H2: Celebrity endorsement has a positive and significant influence on purchase intention
H3: Advertising has a positive and significant influence on brand awareness
H4: Celebrity endorsement has a positive and significant influence on brand awareness
H5: Brand awareness has a positive and significant influence on purchase intention
H6: Brand awareness able to mediate the impact of advertising on purchase intention
H7: Brand awareness able to mediate the impact of celebrity endorsement on purchase intention
H5
H2
H1
H4
H3
Iklan
(X1)
Celebrity
Endorsemen
t(X2)
(X2)
Brand
Awareness
(M)
Niat Beli
(Y)
H6
H7
figure 2.1 conceptual research model
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
A J H S S R J o u r n a l P a g e | 223
II. RESEARCH METHODOLOGY
This research is an associative causal and using a quantitative technique analysis. The research location is
in Denpasar city, as the principal city of Bali, therefore lots of sector are centered in Denpasar also it has a fast
growth of various industry. The minimum wages of Denpasar is fairly high, so that will influence the
consumption of the community itself.
Table 3.1 research instrument’s indicators
No Variable Indicators Sources
1 Advertising (X1) 1.1 Rationale attractiveness
1.2 Emotional attractiveness
1.3 Comprehensive attractiveness
Pratiwi and Rahanatha
(2016), Chandra Dewi
and Sulistyawati
(2018)
2 Celebrity
Endorsement (X2)
2.1 Endorser’s image
2.2 Endorser’s attractiveness
2.3 Endorser’s visibility
Savitri (2017),
Gunawan and
Dharmayanti (2014)
3 Brand Awareness
(M)
3.1 Brand recognition
3.2 Brand knowledge
3.3 Brand recall
3.4 Brand distinction
Pratiwi and Rahanatha
(2016)
4 Purchase Intention
(Y)
4.1 Interest to find more information
about product
4.2 Purchase considerations
4.3 Interest to try the product
4.4 Desire to know about the product
4.5 Desire to have the product
Dewi and Sulistyawati
(2018), Schiffman and
Kanuk (2007)
Source: Previous research with some adjustment
III. RESEARCH FINDING AND DISCUSSION
The questionnaire was test in a validity test to know whether the statement in the questionnaire can used
to collect the data or not. Table 4.1 shows the result of research instrument’s validity test.
Tabel 4.1 result of research instrument’s validity test
Variable Indicators
Correlation
Item
Information
Advertising
X1.1 Rationale attractiveness 0,797 Valid
X1.2 Emotional attractiveness 0,930 Valid
X1.3 Bring out purchase intention 0,856 Valid
Celebrity Endorsement
X2.1 Endorser’s image 0,925 Valid
X2.2 Endorser’s attractiveness 0,949 Valid
X2.3 Endorser’s visibility 0,956 Valid
Brand Awareness
M.1 Brand recognition 0,832 Valid
M.2 Brand knowledge 0,917 Valid
M.3 Brand recall 0,970 Valid
M.4 Brand distinction 0,855 Valid
Purchase Intention
Y.1 Information interest 0,951 Valid
Y.2 Purchase considerations 0,942 Valid
Y.3 Interest in trying 0,930 Valid
Y.4 Interest in product 0,936 Valid
Y.5 Desire to have 0,931 Valid
Source: Data process, 2019
Table 4.1 shows that all the instrument used in the research variable have the score of person correlation
higher than 0,30, that means all the instruments are valid so can used to collect the data needed.
Table 4.2 result of research instrument’s reliability test
Variable Cronbach’s Alpha Information
Advertising 0,823 Reliabel
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
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Celebrity Endorsement 0,936 Reliabel
Brand Awareness 0,916 Reliabel
Purchase Intention 0,965 Reliabel
Source: Data process, 2019
From the Table 4.2 we know that all of Croncbach’s Alpha have score more than 0,6. Those indicates
that all the instruments used in this research are reliable or have the consistency to measure research variable, so
it can use to collect the data.
Data from each respondent’s answer shows the score of each variable used in this research. The average
score is grouped into 5 class interval. Advertising as the independent variable is measured using 3 indicators.
The result state in the Table 4.3 that shows the average score for advertising variable is 3,79, which is
categorized as good. Those mean that the respondent’s assessment of Vivo V15 advertising is good.
Table 4.3 description of respondent’s assessment for advertising variable
No Instrument
Answer’s score
Total
score
Average
Information
VNA
(1)
NA
(2)
N
(3)
A
(4)
VA
(5)
1 The rationale
attractiveness seen
through the information
on the advertisement of
smartphone Vivo V15 is
clear
0 1 41 78 30 587 3,91 Good
2 The advertisement
motivate me to have
smartphone Vivo V15
4 24 44 51 27 523 3,49 Good
3 The advertisement is
very interesting
0 4 37 66 43 598 3,99 Good
Average score of advertising 3,79 Good
Source: Data process, 2019
Celebrity endorsement as independent variable is measured using 3 indicators. The results state in the
Table 4.4 that shows the average score for celebrity endorsement variable is 3,97, which is categorized as good.
Those mean that the respondent’s assessment of celebrity endorser (Afgan and Maudy) is good.
Table 4.4description of respondent’s assessment for celebrity endorsement variable
No Instrument
Answer’s score
Total
score
Average
Information
VNA
(1)
NA
(2)
N
(3)
A
(4)
VA
(5)
1 Celebrity endorser
(Afgan and Maudy)
have positive image
0 9 34 51 56 604 4,03 Good
2 Celebrity endorser
(Afgan and Maudy)
have physical
attractiveness
0 9 41 55 45 586 3,91 Good
3 Celebrity endorser
(Afgan and Maudy)
have a popularity
0 7 42 47 54 598 3,99 Good
Average score of celebrity endorsement 3,97 Good
Source: Data process, 2019
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
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Brand awareness as intervening variable is measured using 4 indicators. The results state in theTable 4.5
that shows the average score for brand awareness variable is 3,78, which is categorized as high. Those mean
that the respondent’s assessment of Vivo V15 brand awareness is high.
Table 4.5description of respondent’s assessment for brand awareness variable
No Instrument
Answer’s score
Total
score
Average
Information
VNA
(1)
NA
(2)
N
(3)
A
(4)
VA
(5)
1 I know and recognize
the Smartphone Vivo
V15
0 7 34 60 49 601 4,01 High
2 I know the information
about the brand
1 16 40 58 35 560 3,73 High
3 I can remember the
smartphone Vivo V15
0 12 42 56 40 574 3,83 High
4 I know the differences
of smartphone Vivo
V15 with other
smartphone
6 22 44 40 38 532 3,55 High
Average score of brand awareness 3,78 High
Source: Data process, 2019
Purchase intention is measured using 5 indicators. The results as shown in the Table 4.6 shows the
average score for purchase intention variable is 3,39, which is categorized as moderate. Those mean that the
respondent’s assessment of Vivo V15 purchase intention is moderate.
Table 4.6description of respondent’s assessment for purchase intention variable
No Instrument
Answer’s score
Total
score
Average
Information
VNA
(1)
NA
(2)
N
(3)
A
(4)
VA
(5)
1 I have interest to find
information about
smartphone Vivo V15
9 24 45 43 29 509 3,39 Moderate
2 I am considering to
purchase smartphone
Vivo V15
13 28 33 48 28 500 3,33 Moderate
3 I am interest to try
smartphone Vivo V15
12 22 39 45 32 513 3,42 High
4 I want to know further
information about
smartphone Vivo V15
12 17 44 40 37 523 3,49 High
5 I want to have
smartphone Vivo V15
20 20 32 47 31 499 3,33 Moderate
Average score of purchase intention 3,39 Moderate
Source: Data process, 2019
This research using Partial Least Square that is consist of 2 evaluation’s models. Outer model evaluation
use to assess the validity and reliability of the model. There are 3 criteria for outer model, that are convergent
validity, discriminant validity, and average variance extracted (AVE). Table 4.7 shows that the outer model’s
score have pass the criteria of convergent validity, which is all indicators have the factor loading over 0,50 so it
can conclude that the construct has a good convergent validity.
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
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Table 4.7 outer loading
Variable Indicators Outer Loading Information
Advertising
X1.1 0,833 Valid
X1.2 0,880 Valid
X1.3 0,834 Valid
Celebrity Endorsement
X2.1 0,919 Valid
X2.2 0,915 Valid
X2.3 0,935 Valid
Brand Awareness
M.1 0,868 Valid
M.2 0,900 Valid
M.3 0,885 Valid
M.4 0,877 Valid
Purchase Intention
Y.1 0,934 Valid
Y.2 0,932 Valid
Y.3 0,934 Valid
Y.4 0,936 Valid
Y.5 0,926 Valid
Source: Data process, 2019
Table 4.8 show the cross loading score indicates there’s a good discriminant validity. Those can be seen
from the indicators correlation’s score toward its construct (loading factor) is higher than the indicators
correlation’s score towards other construct.
Table 4.8 cross loading
Advertising Celebrity
Endorsement
Brand
Awareness
Purchase
Intention
X1.1 0.833 0.579 0.552 0.613
X1.2 0.880 0.616 0.624 0.753
X1.3 0.834 0.530 0.560 0.633
X2.1 0.638 0.919 0.671 0.711
X2.2 0.592 0.915 0.612 0.643
X2.3 0.646 0.935 0.681 0.691
M.1 0.573 0.659 0.868 0.632
M.2 0.646 0.627 0.900 0.685
M.3 0.565 0.597 0.885 0.645
M.4 0.622 0.624 0.877 0.745
Y.1 0.774 0.701 0.734 0.934
Y.2 0.766 0.686 0.718 0.932
Y.3 0.698 0.706 0.700 0.934
Y.4 0.706 0.688 0.747 0.936
Y.5 0.732 0.668 0.684 0.926
Source: Data process, 2019
Squared root of AVE in Table 4.9 will be compared with the correlation’s score between independent
variable as shows in the Table 4.10. Table 4.9 shows the lowest score of squared root of AVE is 0,849. The
highest correlation score in the Table 4.10 is 0,789, which is all of the squared root of AVE’s score is higher
than correlation between construct so that the data is reliable.
Table 4.9 AVE’s value
AVE Squared root of AVE
Advertising 0,779 0,883
Celebrity Endorsement 0,852 0,923
Brand Awareness 0,721 0,849
Purchase Intention 0,869 0,932
Source: Data process, 2019
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
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Table 4.10 correlation between latent variable
Brand
Awareness
Celebrity
Endorsement
Advertising Purchase
Intention
Brand Awareness 1.000 0.711 0.683 0.769
Celebrity Endorsement 0.711 1.000 0.678 0.740
Advertising 0.683 0.678 1.000 0.789
Purchase Intention 0.769 0.740 0.789 1.000
Source:Data process, 2019
The R-square value of brand awareness is 0,580 which means 58,0 percent of the construct variable of
brand awareness is influence by advertising and celebrity endorsement, and the rest of 42,0 percent is influence
by other variable outside the model. The R-square value of purchase intention is 0,744 which means 74,7
percent of the construct variable of purchase intention influence by advertising, celebrity endorsement and brand
awareness, meanwhile the rest of 25,6 percent is influenced by other variable outside the model.
Table 4.11 R-square’svalue
Variable R-square
Advertising
Celebrity Endorsement
Brand Awareness 0,580
Purchase Intention 0,744
Source:Data process, 2019
Hypothesis test use the score of path coefficients. Table 4.12 show the estimation output to test the
structural model. Hypotesis test in PLS method is done by using simulation in each relation hypotesis, with
bootstrap method. t-Table value is set by the significance of 5 percent or 0,05. All path coefficient in the Table
4.12 have the statistic value more than 1,96 so that it stated have an significant influence or impact.
Table 4.12 path coefficient (mean, stdev, t-values, p-values)
Original
Sample (O)
Sample
Mean (M)
Standard
Deviation
(STDEV)
T Statistic
(|O/STDEV|)
P Values
Brand Awareness -> Purchase
Intention
0.324 0.319 0.079 4.107 0.000
Celebrity Endorsement ->
Brand Awareness
0.457 0.454 0.089 5.134 0.000
Celebrity Endorsement ->
Purchase Intention
0.231 0.229 0.074 3.109 0.002
Advertising -> Brand
Awareness
0.373 0.379 0.091 4.091 0.000
Advertising -> Purchase
Intention
0.411 0.418 0.093 4.421 0.000
Source:Data process, 2019
The correlation between advertising and purchase intention has t-statictic value of 4,421 (>1,96) which
mean significant. Path coefficient value of 0,411 that indicates the correlation between advertising and purchase
intention is positive. Therefore H1 is accepted. Those means the better quality of advertisement that shows
through clearness and usefulness of the information, the ability to motivate audience, the more attractive the
advertisement, so the greater the purchase intention of Vivo V15 in Denpasar city. That is congruent with the
previous research done by He (2018), Dehgani and Tumer (2015), and Alalwan (2018) stated that advertisement
can influence the purchase intention in a positive and significant way.
The correlation between celebrity endorsement and purchase intention has t-statictic value of 3,109
(>1,96) which mean significant. Path coefficient value of 0,231 that indicates the correlation between celebrity
endorsement and purchase intention is positive. Therefore H2 is accepted. Those means the better celebrity
endorser that show through positive image, physical attractiveness, and high popularity, than the greater the
purchase intention of Vivo V15 in Denpasar city. That is congruent with the previous research done by
Frimpong (2019), Savitri (2017), Simak et al., 2017, and Grace et al. (2018) stated that clebrity endorsement has
a positive and significant impact on purchase intention.
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
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The correlation between advertising and bradn awareness has t-statictic value of 4,091 (>1,96) which
mean significant. Path coefficient value of 0,373 that indicates the correlation between advertising and brand
awareness is positive. Therefore H3 is accepted. Those means the better quality of an advertisement that is show
through clearness and usefulness of the information, the ability to motivate audience, the more attractive the
advertisement, so the greater the brand awareness of Vivo V15 in Denpasar city. That is congruent with the
previous research done by Pratiwi and Rahanatha (2016), Pranata and Pramudana (2018), Prabawa et al., 2017
stated that advertisement have a positive and significant effect on brand awareness.
The relationship between celebrity endorsement and brand awareness has t-statictic value of 5,134
(>1,96) which mean significant. Path coefficient value of 0,457 that indicates the relationship between celebrity
endorsement and brand awareness is positive. Therefore H4 is accepted. Those means the better celebrity
endorser that show through positive image, physical attractiveness, and high popularity, than the greater the
brand awareness. That is congruent with previous research done by Kim (2018), Setiawan (2018), and Rahman
(2018) stated that celebrity endorsement has a positive and significant effect on brand awarness.
The correlation between brand awareness and purchase intention has t-statictic value of 4,107 (>1,96)
which mean significant. Path coefficient value of 0,324 that indicates the correlation between advertising and
purchase intention is positive. Therefore H5 is accepted. Those means the greater brand awareness show through
how consumer know and acknowledge the brand, know information about the brand, have the ability to
remember the brand, and know how to differ the brand from its competitors, than the greater the purchase
intention of Vivo V15 in Denpasar city. That is congruent with the previous research done by Gunawan and
Dharmayanti (2014), Dewi and Jatra (2018), Dewi and Sulistyawati (2018), Tariq et al., 2017 found that brand
awareness has a positive and significant effect on purchase intention.
From the Table 4.13 we found that the direct effect of brand awareness towards purchase intetion is
0,324, celebrity endorsement towards brand awareness is 0,457, celebrity endorsement towards purchase
intention is 0,231, advertising towards brand awareness is 0,373, advertising towards purchse intention is 0,411
with each T statistic value is more than 1,96 and P value is less than 0,05 that indicates significant impact.
Table 4.13 direct impact, indirect impact, and total impact of advertising, celebrity endorsement, brand
awareness, and purchase intention variable
Type of impact Construct
Standardized
Estimates
T Statistics
(|O/STDEV|)
P
Values
Direct Impact
Brand Awareness ->
Purchase Intention
0,324 4.107 0,000
Celebrity Endorsement ->
Brand Awareness
0,457 5.134 0,000
Celebrity Endorsement ->
Purchase Intention
0,231 3.109 0,002
Advertising -> Brand
Awareness
0,373 4.091 0,000
Advertising -> Purchase
Intention
0,411 4.421 0,000
Indirect Impact
Celebrity Endorsement ->
Brand Awareness ->
Purchase Intention
0,148 3,175 0,002
Advertising-> Brand
Awareness -> Purchase
Intention
0,121 2,955 0,003
Total Impact
Celebrity endorsement ->
Purchase Intention
0,379 4,606 0,000
Advertising -> Purchase
Intention
0,532 6,189 0,000
Source: Data process, 2019
Indirect effect of brand awareness intervening celebrity endorsement towards purchase intention is
0,148 with T statictic value more than 1,96 and P value les than 0,05 that indicate brand awareness significantly
intervening the effect of celebrity endorsement toward purchase intention. Indirect impact of brand awareness
intervening advertisement towards purchase intention is 0,121 with T statictic value more than 1,96 and P value
les than 0,05 that indicate brand awareness significantly intervening the impact of advertisement toward
purchase intention.
American Journal of Humanities and Social Sciences Research (AJHSSR) 2019
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Total impact of celebrity endorsement towards purchase intention is 0,379 with T statistic value 4,606
and P value 0,000 that indicate significant impact. Total impact of advertisement towards purchase intention is
0,532 with T statistic value 6,189 and P value 0,000 that indicate significant impact.
Based on the Table 4.13, T statistic value of indirect impact of advertising brand awareness, and
purchase intention is 2,955 (>1,96) and P value is 0,003 (<0,05) that indicates brand awareness is adequate
partially intervening the correlation between advertising and purchase intention. Those means the greater brand
awareness than the greater the purchase intention. That is congruent with the previous research done by Pranata
and Pramudana (2018), Prabawa et al., (2017), Dewi and Sulistyawati (2018) stated that brand awareness
significantly adequate intervening the effect of advertisement towards purchase intention.
Based on the Table 4.13, T statistic value of indirect effect of celebrity endorsement, brand awareness,
and purchse intention is 3,175 (>1,96) and P value is 0,002 (<0,05) that indicates brand awareness is able to
partially intervening the correlation between celebrity endorsement and purchase intention. Those means the
better celebrity endorsement than the greater the purchase intention. That is congruent with the previous
research done by Setiawan (2018), Gunawan and Dharmayanti (2014), Nasir et al., 2016 stated that brand
awareness significantly able to intervening the effect of celebrity endorsement towards purchase intention.
IV. CONCLUSION
The conslusion of this reseacrh are: (a) Advertising has a positive and significant effect on purchase intention. It
means the better advertising then the higher purchase intention. (b) Celebrity endorsement has a positive and
significant effect on purchase intention. It means the better celebrity endorsement the higher purchase intention.
(c) Brand awareness has a positive and significant effect on purchase intention. It means the higher brand
awareness then the higher purchase intention. (d) Advertising has a positive and significant effect on brand
awareness. It means the better advertising the higher brand awareness. (e) Celebrity endorsement has a positive
and significant effect on brand awareness. It means the better celebrity endorsement the higher brand awareness.
(f) Brand awareness able to mediate the relation between advertising on purchase intention. It means
Advertising has a positive direct effect on purchase intention, also indirect effect through brand awareness. (g)
Brand awareness able to mediate the relation between celebrity endorsement on purchase intention. It means
celebrity endorsement has a positive direct effect on purchase intention, also indirect effect through brand
awareness.This research add more emphirical study of variable used in this research. Practical implications are
this research show that to increase purchase intention and brand awareness, a company can do an advertisement
and celebrity endorsement. So from the management side of Vivo V15 can manage their advertising quality so it
can more effective and careful in choosing celebrity as their endorser so they can increase the purchase intention
of Vivo V15 in Denpasar city. Meanwhile the limitations of the research is the case of the study limited in the
influence of advertisement, celebrity endorsement, brand awareness and purchase intention in Denpasar city, so
moreless the future research can added more variable and in wider area to held the research.
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The Effect of Advertising and Celebrity Endorsement on Purchase Intention with Brand Awareness as Intervening Variable

  • 1. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 221 American Journal of Humanities and Social Sciences Research (AJHSSR) e-ISSN: 2378-703X Volume-3, Issue-10, pp-221-231 www.ajhssr.com Research Paper Open Access The Effect of Advertising and Celebrity Endorsement on Purchase Intention with Brand Awareness as Intervening Variable A A Ayu Prabeng Ningrum Satyeng Ningrat1 , Ni Nyoman Kerti Yasa2 1,2 Faculty of Economic and Business, Udayana University, Bali, Indonesia ABSTRACT: Purchase intention is the intention of the customers to purchase a product of a certain brand in the future. To increase purchase intention, a company can advertising their product and use celebrity endorsement, and those also can use to increase the brand awareness. The aim of this study is to determine the influence of advertising and celebrity endorsement on purchase intention and also to know the influence of brand awareness as the intervening variable. This research’s object is Vivo V15 in Denpasar City. The number of samples taken was 150 respondents, using purposive sampling methods. Questionnaires was conducted to collect the data, measured by 15 indicators and using Likert’s scale. The study used Partial Least Square as the analytical technique. The result of this research is each of advertising, celebrity endorsement, and brand awareness has a positive and significant impact on purchase intention. The result also shown that brand awareness can mediating the relationship between the effects of advertising and celebrity endorsement on purchase intention. From the result, the management of Vivo V15 have to pay more attention on the factors that influence purchase intention other than advertising, celebrity endorsement, and brand awareness. Keywords: Advertising, Brand Awareness, Celebrity Endorsement, Purchase Intention. I. INTRODUCTION The existence of industry 4.0 make the development of technology happen so fast and even can’t be avoided. Information digitalization and the use of artificial intelligent in all sector of human life is a sign of this industry’s presence (Putrawangsa dan Hasanah, 2018). That is actually one of the reason in the increasing of smartphone consumption by the community. A survey that conducted by eMarketer show that the smartphone user in the world in 2016 reach the amount of 2,1 billion people and expected to be 2,87 billion people in 2020. eMarketer also stated that Indonesia is in third place as the biggest smartphone users in Asia Pacific, with more than 55 million users in 2015. Statista, 2019 stated that the smartphone penetration growth in Indonesia is increasing every year and predicted on 2023 will reach the amount of 33%. Those datas indicate the consumer’s high purchase intention on smartphone and those could mean as an opportunity for the smartphone producer to fulfill the market needs in Indonesia. Prabawa et al., 2017 stated that purchase intention is a plan of decision to purchase a things or services or a certain brand. The increasing of smartphone users in Indonesia is an opportunity for global smartphone producer in the world wide to enter and promote their business in Indonesia, no exception for Vivo. Vivo is a global smartphone producer with 6 R&D center, and 2014 is its first step to spread its business to Southeast Asia, including Indonesia. As a new comers they have to compete with its competitors, Vivo V15’s producer implied strategies to increase the consumer purchase intention of Vivo V15. Producer of smartphone Vivo V15 use advertising as its strategy to increase the consumer purchase intention. Advertising is one of the promotion’s media that used for convey the message in order to create and influence consumer’s behavior (Gunawan and Dharmayanti, 2014). There’s a positive relationship between advertising and purchase intention. He (2018), Dehghani and Tumer (2015), Alalwan (2018), Liu et al. (2019), and Martins et al. (2018) stated that advertising attractiveness influence purchase intention in a positive and significant way, Duffet (2015) on his study also found advertising has a positive effect on purchase intention. Vice versa with those statement Wibowo and Nurhadi (2017) find out that advertising’s effectiveness is not influence purchase intention. A company also use celebrity endorsement as their advertising strategies. Frimpong (2019), Savitri (2017), Simak et al. (2017), Wang and Nian (2017), Grace et al. (2018), and Nugraha et al. (2018) in their research shows a positive influence between celebrity endorsement and purchase intention. McCormick (2016) found a positive and significant correlation between celebrity endorsement and purchase intention. Frimpong et al., 2019 found that celebrity endorsement has significant influence to purchase behavior including purchase
  • 2. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 222 intention. Meanwhile Stephanie et al., 2013 in her research shows that celebrity endorsement has not influence purchase intention significantly. Vivo itself use Afgan and Maudy as representative of their product, which is Vivo V15 is the choice of young generation. In other hand, celebrity endorsement also use to increase brand awareness. It also goes the same way with advertising that can increase brand awareness. Pratiwi and Rahanatha (2016), Pranata and Pramudana (2018), Prabawa et al. (2017), Maria et al. (2019), and Chan (2015)found that advertising significantly influence brand awareness in a positive way. Kim et al., 2018, Rahman (2018), Setiawan (2018),Ndlela and Tinashe (2016),Rabia et al. (2019), Gunawan and Dharmayanti (2014) in their research stated that there’s a positive and significant correlation between endorser and brand awareness. International Data Corporation (IDC), Q2 2018 stated that Samsung has the biggest smartphone’s market share in Indonesia on 2Q 2017 followed by OPPO, Advan, and Vivo also Xiaomi, meanwhile on 2Q 2018 Samsung still in the first place followed by Xiaomi, Oppo, Vivo, and Advan. From the data we know that market share of Vivo still lack from its competitors, that’s why they implied a strategy of advertising and celebrity endorsement to increase brand awareness of Vivo V15. Herdana (2015) stated that brand awareness is a brand ability to enter into consumer’s mind. Pranata (2018) brand awareness can influence purchase intention and consumer’s purchasing decision so that’s a company trying to increase their brand awareness, and one of the way is through promotion in some media. Hasbun and Ruswanty (2016) stated brand awareness as a fundamental decision in a brand equity, that make a brand easily comes up in consumer’s mind when thinking of a certain product criteria. Setiawan (2018), Dewi and Jatra (2018), Dewi and Sulistyawati (2018) stated that brand awareness to purchase intention have a positive and significant effect. Meanwhile Susilo and Hatane (2015) stated that brand awareness has no significant impact on purchase intention. The result of pre survey that conducted in 2019 on 30 respondent in Denpasar city, 19 of them agree that the information that shows in advertising of Vivo V15 is clear and useful. 24 respondent agree that Afgan and Maudy as celebrity endorser of Vivo V15 have positive image, 18 respondent knows and recognize the smartphone Vivo V15, and 12 of them are interesting to know more information about smartphone Vivo V15. 76,7% respondent know smartphone Vivo V15 and 73,3% have seen the advertising of smartphone Vivo V15. Pre survey’s result show that brand awareness of Vivo V15 in Denpasar city is quite high and it’s indicate enthusiasm of the society on the presence of Vivo V15. Those data is one of the reason to conduct this research in Denpasar city. As Vivo V15 is a new coming product series of Vivo so the company need to promote its product through advertising and celebrity endorsement to increase brand awareness in order to increase the purchase intention. The purpose of this study are: (a) To explain the effect of advertising on purchase intention, (b) To explain the effect of celebrity endorsement on purchase intention, (c) To explain the effect of job brand awareness on purchase intention, (d) To explain the effect of advertising on brand awareness, (e) To explain the effect of celebrity endorsement on brand awareness, (f) To explain the role of brand awareness in mediating the influence of advertising on purchase intention, (g) To explain the role of brand awareness in mediating the influence of celebrity endorsement on purchase intention. 1. Conceptual Model and Hypothesis Development H1: Advertising has a positive and significant influence on purchase intention H2: Celebrity endorsement has a positive and significant influence on purchase intention H3: Advertising has a positive and significant influence on brand awareness H4: Celebrity endorsement has a positive and significant influence on brand awareness H5: Brand awareness has a positive and significant influence on purchase intention H6: Brand awareness able to mediate the impact of advertising on purchase intention H7: Brand awareness able to mediate the impact of celebrity endorsement on purchase intention H5 H2 H1 H4 H3 Iklan (X1) Celebrity Endorsemen t(X2) (X2) Brand Awareness (M) Niat Beli (Y) H6 H7 figure 2.1 conceptual research model
  • 3. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 223 II. RESEARCH METHODOLOGY This research is an associative causal and using a quantitative technique analysis. The research location is in Denpasar city, as the principal city of Bali, therefore lots of sector are centered in Denpasar also it has a fast growth of various industry. The minimum wages of Denpasar is fairly high, so that will influence the consumption of the community itself. Table 3.1 research instrument’s indicators No Variable Indicators Sources 1 Advertising (X1) 1.1 Rationale attractiveness 1.2 Emotional attractiveness 1.3 Comprehensive attractiveness Pratiwi and Rahanatha (2016), Chandra Dewi and Sulistyawati (2018) 2 Celebrity Endorsement (X2) 2.1 Endorser’s image 2.2 Endorser’s attractiveness 2.3 Endorser’s visibility Savitri (2017), Gunawan and Dharmayanti (2014) 3 Brand Awareness (M) 3.1 Brand recognition 3.2 Brand knowledge 3.3 Brand recall 3.4 Brand distinction Pratiwi and Rahanatha (2016) 4 Purchase Intention (Y) 4.1 Interest to find more information about product 4.2 Purchase considerations 4.3 Interest to try the product 4.4 Desire to know about the product 4.5 Desire to have the product Dewi and Sulistyawati (2018), Schiffman and Kanuk (2007) Source: Previous research with some adjustment III. RESEARCH FINDING AND DISCUSSION The questionnaire was test in a validity test to know whether the statement in the questionnaire can used to collect the data or not. Table 4.1 shows the result of research instrument’s validity test. Tabel 4.1 result of research instrument’s validity test Variable Indicators Correlation Item Information Advertising X1.1 Rationale attractiveness 0,797 Valid X1.2 Emotional attractiveness 0,930 Valid X1.3 Bring out purchase intention 0,856 Valid Celebrity Endorsement X2.1 Endorser’s image 0,925 Valid X2.2 Endorser’s attractiveness 0,949 Valid X2.3 Endorser’s visibility 0,956 Valid Brand Awareness M.1 Brand recognition 0,832 Valid M.2 Brand knowledge 0,917 Valid M.3 Brand recall 0,970 Valid M.4 Brand distinction 0,855 Valid Purchase Intention Y.1 Information interest 0,951 Valid Y.2 Purchase considerations 0,942 Valid Y.3 Interest in trying 0,930 Valid Y.4 Interest in product 0,936 Valid Y.5 Desire to have 0,931 Valid Source: Data process, 2019 Table 4.1 shows that all the instrument used in the research variable have the score of person correlation higher than 0,30, that means all the instruments are valid so can used to collect the data needed. Table 4.2 result of research instrument’s reliability test Variable Cronbach’s Alpha Information Advertising 0,823 Reliabel
  • 4. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 224 Celebrity Endorsement 0,936 Reliabel Brand Awareness 0,916 Reliabel Purchase Intention 0,965 Reliabel Source: Data process, 2019 From the Table 4.2 we know that all of Croncbach’s Alpha have score more than 0,6. Those indicates that all the instruments used in this research are reliable or have the consistency to measure research variable, so it can use to collect the data. Data from each respondent’s answer shows the score of each variable used in this research. The average score is grouped into 5 class interval. Advertising as the independent variable is measured using 3 indicators. The result state in the Table 4.3 that shows the average score for advertising variable is 3,79, which is categorized as good. Those mean that the respondent’s assessment of Vivo V15 advertising is good. Table 4.3 description of respondent’s assessment for advertising variable No Instrument Answer’s score Total score Average Information VNA (1) NA (2) N (3) A (4) VA (5) 1 The rationale attractiveness seen through the information on the advertisement of smartphone Vivo V15 is clear 0 1 41 78 30 587 3,91 Good 2 The advertisement motivate me to have smartphone Vivo V15 4 24 44 51 27 523 3,49 Good 3 The advertisement is very interesting 0 4 37 66 43 598 3,99 Good Average score of advertising 3,79 Good Source: Data process, 2019 Celebrity endorsement as independent variable is measured using 3 indicators. The results state in the Table 4.4 that shows the average score for celebrity endorsement variable is 3,97, which is categorized as good. Those mean that the respondent’s assessment of celebrity endorser (Afgan and Maudy) is good. Table 4.4description of respondent’s assessment for celebrity endorsement variable No Instrument Answer’s score Total score Average Information VNA (1) NA (2) N (3) A (4) VA (5) 1 Celebrity endorser (Afgan and Maudy) have positive image 0 9 34 51 56 604 4,03 Good 2 Celebrity endorser (Afgan and Maudy) have physical attractiveness 0 9 41 55 45 586 3,91 Good 3 Celebrity endorser (Afgan and Maudy) have a popularity 0 7 42 47 54 598 3,99 Good Average score of celebrity endorsement 3,97 Good Source: Data process, 2019
  • 5. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 225 Brand awareness as intervening variable is measured using 4 indicators. The results state in theTable 4.5 that shows the average score for brand awareness variable is 3,78, which is categorized as high. Those mean that the respondent’s assessment of Vivo V15 brand awareness is high. Table 4.5description of respondent’s assessment for brand awareness variable No Instrument Answer’s score Total score Average Information VNA (1) NA (2) N (3) A (4) VA (5) 1 I know and recognize the Smartphone Vivo V15 0 7 34 60 49 601 4,01 High 2 I know the information about the brand 1 16 40 58 35 560 3,73 High 3 I can remember the smartphone Vivo V15 0 12 42 56 40 574 3,83 High 4 I know the differences of smartphone Vivo V15 with other smartphone 6 22 44 40 38 532 3,55 High Average score of brand awareness 3,78 High Source: Data process, 2019 Purchase intention is measured using 5 indicators. The results as shown in the Table 4.6 shows the average score for purchase intention variable is 3,39, which is categorized as moderate. Those mean that the respondent’s assessment of Vivo V15 purchase intention is moderate. Table 4.6description of respondent’s assessment for purchase intention variable No Instrument Answer’s score Total score Average Information VNA (1) NA (2) N (3) A (4) VA (5) 1 I have interest to find information about smartphone Vivo V15 9 24 45 43 29 509 3,39 Moderate 2 I am considering to purchase smartphone Vivo V15 13 28 33 48 28 500 3,33 Moderate 3 I am interest to try smartphone Vivo V15 12 22 39 45 32 513 3,42 High 4 I want to know further information about smartphone Vivo V15 12 17 44 40 37 523 3,49 High 5 I want to have smartphone Vivo V15 20 20 32 47 31 499 3,33 Moderate Average score of purchase intention 3,39 Moderate Source: Data process, 2019 This research using Partial Least Square that is consist of 2 evaluation’s models. Outer model evaluation use to assess the validity and reliability of the model. There are 3 criteria for outer model, that are convergent validity, discriminant validity, and average variance extracted (AVE). Table 4.7 shows that the outer model’s score have pass the criteria of convergent validity, which is all indicators have the factor loading over 0,50 so it can conclude that the construct has a good convergent validity.
  • 6. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 226 Table 4.7 outer loading Variable Indicators Outer Loading Information Advertising X1.1 0,833 Valid X1.2 0,880 Valid X1.3 0,834 Valid Celebrity Endorsement X2.1 0,919 Valid X2.2 0,915 Valid X2.3 0,935 Valid Brand Awareness M.1 0,868 Valid M.2 0,900 Valid M.3 0,885 Valid M.4 0,877 Valid Purchase Intention Y.1 0,934 Valid Y.2 0,932 Valid Y.3 0,934 Valid Y.4 0,936 Valid Y.5 0,926 Valid Source: Data process, 2019 Table 4.8 show the cross loading score indicates there’s a good discriminant validity. Those can be seen from the indicators correlation’s score toward its construct (loading factor) is higher than the indicators correlation’s score towards other construct. Table 4.8 cross loading Advertising Celebrity Endorsement Brand Awareness Purchase Intention X1.1 0.833 0.579 0.552 0.613 X1.2 0.880 0.616 0.624 0.753 X1.3 0.834 0.530 0.560 0.633 X2.1 0.638 0.919 0.671 0.711 X2.2 0.592 0.915 0.612 0.643 X2.3 0.646 0.935 0.681 0.691 M.1 0.573 0.659 0.868 0.632 M.2 0.646 0.627 0.900 0.685 M.3 0.565 0.597 0.885 0.645 M.4 0.622 0.624 0.877 0.745 Y.1 0.774 0.701 0.734 0.934 Y.2 0.766 0.686 0.718 0.932 Y.3 0.698 0.706 0.700 0.934 Y.4 0.706 0.688 0.747 0.936 Y.5 0.732 0.668 0.684 0.926 Source: Data process, 2019 Squared root of AVE in Table 4.9 will be compared with the correlation’s score between independent variable as shows in the Table 4.10. Table 4.9 shows the lowest score of squared root of AVE is 0,849. The highest correlation score in the Table 4.10 is 0,789, which is all of the squared root of AVE’s score is higher than correlation between construct so that the data is reliable. Table 4.9 AVE’s value AVE Squared root of AVE Advertising 0,779 0,883 Celebrity Endorsement 0,852 0,923 Brand Awareness 0,721 0,849 Purchase Intention 0,869 0,932 Source: Data process, 2019
  • 7. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 227 Table 4.10 correlation between latent variable Brand Awareness Celebrity Endorsement Advertising Purchase Intention Brand Awareness 1.000 0.711 0.683 0.769 Celebrity Endorsement 0.711 1.000 0.678 0.740 Advertising 0.683 0.678 1.000 0.789 Purchase Intention 0.769 0.740 0.789 1.000 Source:Data process, 2019 The R-square value of brand awareness is 0,580 which means 58,0 percent of the construct variable of brand awareness is influence by advertising and celebrity endorsement, and the rest of 42,0 percent is influence by other variable outside the model. The R-square value of purchase intention is 0,744 which means 74,7 percent of the construct variable of purchase intention influence by advertising, celebrity endorsement and brand awareness, meanwhile the rest of 25,6 percent is influenced by other variable outside the model. Table 4.11 R-square’svalue Variable R-square Advertising Celebrity Endorsement Brand Awareness 0,580 Purchase Intention 0,744 Source:Data process, 2019 Hypothesis test use the score of path coefficients. Table 4.12 show the estimation output to test the structural model. Hypotesis test in PLS method is done by using simulation in each relation hypotesis, with bootstrap method. t-Table value is set by the significance of 5 percent or 0,05. All path coefficient in the Table 4.12 have the statistic value more than 1,96 so that it stated have an significant influence or impact. Table 4.12 path coefficient (mean, stdev, t-values, p-values) Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistic (|O/STDEV|) P Values Brand Awareness -> Purchase Intention 0.324 0.319 0.079 4.107 0.000 Celebrity Endorsement -> Brand Awareness 0.457 0.454 0.089 5.134 0.000 Celebrity Endorsement -> Purchase Intention 0.231 0.229 0.074 3.109 0.002 Advertising -> Brand Awareness 0.373 0.379 0.091 4.091 0.000 Advertising -> Purchase Intention 0.411 0.418 0.093 4.421 0.000 Source:Data process, 2019 The correlation between advertising and purchase intention has t-statictic value of 4,421 (>1,96) which mean significant. Path coefficient value of 0,411 that indicates the correlation between advertising and purchase intention is positive. Therefore H1 is accepted. Those means the better quality of advertisement that shows through clearness and usefulness of the information, the ability to motivate audience, the more attractive the advertisement, so the greater the purchase intention of Vivo V15 in Denpasar city. That is congruent with the previous research done by He (2018), Dehgani and Tumer (2015), and Alalwan (2018) stated that advertisement can influence the purchase intention in a positive and significant way. The correlation between celebrity endorsement and purchase intention has t-statictic value of 3,109 (>1,96) which mean significant. Path coefficient value of 0,231 that indicates the correlation between celebrity endorsement and purchase intention is positive. Therefore H2 is accepted. Those means the better celebrity endorser that show through positive image, physical attractiveness, and high popularity, than the greater the purchase intention of Vivo V15 in Denpasar city. That is congruent with the previous research done by Frimpong (2019), Savitri (2017), Simak et al., 2017, and Grace et al. (2018) stated that clebrity endorsement has a positive and significant impact on purchase intention.
  • 8. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 228 The correlation between advertising and bradn awareness has t-statictic value of 4,091 (>1,96) which mean significant. Path coefficient value of 0,373 that indicates the correlation between advertising and brand awareness is positive. Therefore H3 is accepted. Those means the better quality of an advertisement that is show through clearness and usefulness of the information, the ability to motivate audience, the more attractive the advertisement, so the greater the brand awareness of Vivo V15 in Denpasar city. That is congruent with the previous research done by Pratiwi and Rahanatha (2016), Pranata and Pramudana (2018), Prabawa et al., 2017 stated that advertisement have a positive and significant effect on brand awareness. The relationship between celebrity endorsement and brand awareness has t-statictic value of 5,134 (>1,96) which mean significant. Path coefficient value of 0,457 that indicates the relationship between celebrity endorsement and brand awareness is positive. Therefore H4 is accepted. Those means the better celebrity endorser that show through positive image, physical attractiveness, and high popularity, than the greater the brand awareness. That is congruent with previous research done by Kim (2018), Setiawan (2018), and Rahman (2018) stated that celebrity endorsement has a positive and significant effect on brand awarness. The correlation between brand awareness and purchase intention has t-statictic value of 4,107 (>1,96) which mean significant. Path coefficient value of 0,324 that indicates the correlation between advertising and purchase intention is positive. Therefore H5 is accepted. Those means the greater brand awareness show through how consumer know and acknowledge the brand, know information about the brand, have the ability to remember the brand, and know how to differ the brand from its competitors, than the greater the purchase intention of Vivo V15 in Denpasar city. That is congruent with the previous research done by Gunawan and Dharmayanti (2014), Dewi and Jatra (2018), Dewi and Sulistyawati (2018), Tariq et al., 2017 found that brand awareness has a positive and significant effect on purchase intention. From the Table 4.13 we found that the direct effect of brand awareness towards purchase intetion is 0,324, celebrity endorsement towards brand awareness is 0,457, celebrity endorsement towards purchase intention is 0,231, advertising towards brand awareness is 0,373, advertising towards purchse intention is 0,411 with each T statistic value is more than 1,96 and P value is less than 0,05 that indicates significant impact. Table 4.13 direct impact, indirect impact, and total impact of advertising, celebrity endorsement, brand awareness, and purchase intention variable Type of impact Construct Standardized Estimates T Statistics (|O/STDEV|) P Values Direct Impact Brand Awareness -> Purchase Intention 0,324 4.107 0,000 Celebrity Endorsement -> Brand Awareness 0,457 5.134 0,000 Celebrity Endorsement -> Purchase Intention 0,231 3.109 0,002 Advertising -> Brand Awareness 0,373 4.091 0,000 Advertising -> Purchase Intention 0,411 4.421 0,000 Indirect Impact Celebrity Endorsement -> Brand Awareness -> Purchase Intention 0,148 3,175 0,002 Advertising-> Brand Awareness -> Purchase Intention 0,121 2,955 0,003 Total Impact Celebrity endorsement -> Purchase Intention 0,379 4,606 0,000 Advertising -> Purchase Intention 0,532 6,189 0,000 Source: Data process, 2019 Indirect effect of brand awareness intervening celebrity endorsement towards purchase intention is 0,148 with T statictic value more than 1,96 and P value les than 0,05 that indicate brand awareness significantly intervening the effect of celebrity endorsement toward purchase intention. Indirect impact of brand awareness intervening advertisement towards purchase intention is 0,121 with T statictic value more than 1,96 and P value les than 0,05 that indicate brand awareness significantly intervening the impact of advertisement toward purchase intention.
  • 9. American Journal of Humanities and Social Sciences Research (AJHSSR) 2019 A J H S S R J o u r n a l P a g e | 229 Total impact of celebrity endorsement towards purchase intention is 0,379 with T statistic value 4,606 and P value 0,000 that indicate significant impact. Total impact of advertisement towards purchase intention is 0,532 with T statistic value 6,189 and P value 0,000 that indicate significant impact. Based on the Table 4.13, T statistic value of indirect impact of advertising brand awareness, and purchase intention is 2,955 (>1,96) and P value is 0,003 (<0,05) that indicates brand awareness is adequate partially intervening the correlation between advertising and purchase intention. Those means the greater brand awareness than the greater the purchase intention. That is congruent with the previous research done by Pranata and Pramudana (2018), Prabawa et al., (2017), Dewi and Sulistyawati (2018) stated that brand awareness significantly adequate intervening the effect of advertisement towards purchase intention. Based on the Table 4.13, T statistic value of indirect effect of celebrity endorsement, brand awareness, and purchse intention is 3,175 (>1,96) and P value is 0,002 (<0,05) that indicates brand awareness is able to partially intervening the correlation between celebrity endorsement and purchase intention. Those means the better celebrity endorsement than the greater the purchase intention. That is congruent with the previous research done by Setiawan (2018), Gunawan and Dharmayanti (2014), Nasir et al., 2016 stated that brand awareness significantly able to intervening the effect of celebrity endorsement towards purchase intention. IV. CONCLUSION The conslusion of this reseacrh are: (a) Advertising has a positive and significant effect on purchase intention. It means the better advertising then the higher purchase intention. (b) Celebrity endorsement has a positive and significant effect on purchase intention. It means the better celebrity endorsement the higher purchase intention. (c) Brand awareness has a positive and significant effect on purchase intention. It means the higher brand awareness then the higher purchase intention. (d) Advertising has a positive and significant effect on brand awareness. It means the better advertising the higher brand awareness. (e) Celebrity endorsement has a positive and significant effect on brand awareness. It means the better celebrity endorsement the higher brand awareness. (f) Brand awareness able to mediate the relation between advertising on purchase intention. It means Advertising has a positive direct effect on purchase intention, also indirect effect through brand awareness. (g) Brand awareness able to mediate the relation between celebrity endorsement on purchase intention. It means celebrity endorsement has a positive direct effect on purchase intention, also indirect effect through brand awareness.This research add more emphirical study of variable used in this research. Practical implications are this research show that to increase purchase intention and brand awareness, a company can do an advertisement and celebrity endorsement. So from the management side of Vivo V15 can manage their advertising quality so it can more effective and careful in choosing celebrity as their endorser so they can increase the purchase intention of Vivo V15 in Denpasar city. Meanwhile the limitations of the research is the case of the study limited in the influence of advertisement, celebrity endorsement, brand awareness and purchase intention in Denpasar city, so moreless the future research can added more variable and in wider area to held the research. REFERENCES [1] Putrawangsa, Susilahudin dan Uswatun Hasanah. 2018. Integrasi Teknologi Digital Dalam Pembelajaran di Era Industri 4.0. Jurnal Pemikiran dan Penelitian Pendidikan. [2] EMarketer. Asia-Pacific Boasts More Than 1 Billion Smartphone Users - eMarketer [Internet]. eMarketer Survey. 2015. p. 1. Available from: https://www.emarketer.com/Article/Asia-Pacific-Boasts- More-Than-1Billion-Smartphone-Users/1012984 - Diakses 20 Maret 2018. [3] EMarketer. Smartphone Users and Penetration Worldwide, 2014-2020 (billions, % of mobile phone users and % change) [Internet]. eMarketer Survey. 2016 [cited 2001 Aug 20]. p. 1. 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