Sami (2017) investigated the impact of celebrity credibility on consumer based equity of the endorsed brand. On the endorser credibility-brand equity relationship, the mediating role of brand credibility and the moderating role of the type of branding (i.e., parent versus sub-brand) employed by the endorsed brand were also investigated. The endorser credibility-brand equity relationship was established using associative learning principles, and the mediating effect of brand credibility was formed using brand signaling theory. A field experiment was conducted to test the theoretical framework. Data were obtained from a sample of customers in metropolitan cities of Pakistan using a mall-intercept technique at shopping centers. Structural equation modeling was used to analyze the results. The findings showed that while brand credibility acted as a mediator, endorser credibility had an indirect effect on brand equity. The type of branding acted as a moderator in this mediating relationship. However, the relationships between “endorser credibility-brand credibility” and “endorser credibility-brand equity” were unaffected by the type of branding used. To corroborate previous research, the current study demonstrates that a celebrity endorser should be viewed as credible based on their appearance, expertise, and trustworthiness. In addition, even a moderately low credibility endorser was able to develop the brand in this study. The current research is one of the first to investigate and validate the effect of endorser credibility on brand credibility and consumer-based brand equity empirically. Based on the scenario presented, answer the following questions: Required: Q1. Identify the Independent, Dependent, Moderating, and Mediating Variables. Also provide justification for your choice. Q2. Create a schematic diagram (i.e., theoretical framework) that depicts the relationships among the variables. Q3. Based on the above theoretical framework, develop at least four alternate hypotheses. Q4. Provide a critical analysis of the created theoretical framework in terms of its theoretical and practical contributions.
Sami (2017) investigated the impact of celebrity credibility on consumer based equity of the
endorsed brand. On the endorser credibility-brand equity relationship, the mediating role of
brand credibility and the moderating role of the type of branding (i.e., parent versus sub-brand)
employed by the endorsed brand were also investigated. The endorser credibility-brand equity
relationship was established using associative learning principles, and the mediating effect of
brand credibility was formed using brand signaling theory. A field experiment was conducted to
test the theoretical framework. Data were obtained from a sample of customers in metropolitan
cities of Pakistan using a mall-intercept technique at shopping centers. Structural equation
modeling was used to analyze the results. The findings showed that while brand credibility acted
as a mediator, endorser credibility had an indirect effect on brand equity. The type of branding
acted as a moderator in this mediating relationship. However, the relationships between “endorser credibility-brand credibility” and “endorser credibility-brand equity” were unaffected by the type of branding used. To corroborate previous research, the current study demonstrates that a celebrity endorser should be viewed as credible based on their appearance, expertise, and trustworthiness. In addition, even a moderately low credibility endorser was able to develop the brand in this study. The current research is one of the first to investigate and validate the effect of endorser credibility on brand credibility and consumer-based brand equity empirically.
Based on the scenario presented, answer the following questions:
Required:
Q1. Identify the Independent, Dependent, Moderating, and Mediating Variables. Also provide justification for your choice.
Q2. Create a schematic diagram (i.e., theoretical framework) that depicts the relationships among the variables.
Q3. Based on the above theoretical framework, develop at least four alternate hypotheses.
Q4. Provide a critical analysis of the created theoretical framework in terms of its theoretical and practical contributions.
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