Author(s): Jagadish Tulimelli, Sarita Satpathy, Ashok Kumar Samminga
The willingness to pay price premium (WTPP) after satisfaction is significant for managers, marketer and customers of products and services. Based on existing literature on the impact of persuasion by credibility and effectiveness of endorsement, the study employs elaboration likelihood model to assess impact of attributes of celebrity endorsement on consumers’ willingness to pay price premium through brand credibility (BC) and moderating impact of consumer skepticism towards celebrity endorsement (CS). It has been proposed that celebrity authenticity (CA), celebrity moral credibility (CMC), the fit between celebrity and brand values (CBVC), and celebrity familiarity (CF) combine to enhance brand credibility which positively and directly influences. Data was gathered from 512 individuals. The hypothesis relationship was tested using structural equation modelling. The measurement model’s fit results are satisfactory. Specifically, there is a good fit (χ2/df = 2.41, CFI = 0.942, TLI = 0.934, RMSEA = 0.052, SRMR = 0.041) and reliable measurement (Cronbach’s α = 0.83–0.90; CR = 0.88–0.93). Furthermore, there is convergent and discriminant validity (AVE = 0.65–0.77; HTMT < 0.85). According to the structural findings, when consumer skepticism is high, β = −0.13, p. The relationship between brand carbon footprint and willingness to pay a premium weakens due to low situation-specific moral evaluation. It is observed that celebrity endorsement lowers value salience.