Abstract
The purpose of this study is to examine the influence of digital media marketing and celebrity endorsement on consumer purchase decisions toward mutual funds investment. Marketing through social media gives marketers a competitive edge when it comes to influencing customers and driving order intent in mutual funds. In this research, the authors examine the effectiveness of digital media and celebrity endorsements in influencing consumer purchasing decisions. This research employed a quantitative approach, and data were collected through online surveys from six districts of Jharkhand, a sample of 310 participants using structured questionnaire using purposive sampling. The findings advocate that celebrity endorsement is a substantial marketing tool for driving the purchase intention via social media. The indirect effect of celebrity endorsement on consumer purchase intention was also significant when digital media was used as a meditating variable. The data analysis and validation of the conceptual framework were carried out using the PLS-SEM. The study's implications are discussed.
TopIntroduction
Digital media platforms are important for driving consumer purchase intent through celebrity endorsements. The indirect impact of celebrity endorsement on customer purchase intent was equally considerable when digital media was employed as the main variable. Companies invest a lot of money in endorsement, hoping that endorsing celebrities’ attributes will draw in many customers. Celebrities help to create effective recall rates in addition to drawing and keeping attention to a brand or product. A celebrity endorser appeared in about one in every six advertisements in 1979. According to estimates from 1988, one in every five endorsements was made.
Additionally, current research suggests that celebrity endorsements favorably influence customer behavior and responses (Kushwaha et al., 2021). As a result of technology improvements, marketers are using digital media platforms and digital influencers to spread product awareness and branding (Zhou et al., 2021). Marketers view social media opinion leaders as digital influencers because they have the power to spread a lot of buzz among their followers. To transmit the quality of their content to the product, digital influencers are compensated to serve as brand ambassadors and to represent products and businesses. E-commerce merchants know celebrity endorsement significantly impacts consumers’ purchase intentions (Nurunnisha et al., 2021). Digital media marketing platforms spread favorable information and testimonials about goods and brands to attract customers (Castillo-Abdul et al., 2021). As a result, these recommendations help e-commerce shops and companies attract customers and earn their trust. They are existing research-based celebrity endorsement or digital marketing techniques as the primary driver of customer purchase intent. Celebrities demand huge fees in exchange for promoting a product or business, and their influence over consumers is likewise considerable. Celebrity endorsements on digital media platforms could be game changers for many businesses because digital media is an expanding marketing tool for practically every industry.
In this millennium, capital market activity has developed, driven by the driving force behind alternative investments, including stocks, bonds, or other securities owned by a group of investors and managed by an Investment Management Company, among the capital market investment products that are considered ideal by investors because mutual funds have a relatively high return (Rahmah, A., 2016). Mutual funds come from the word “mutual,” which means “to receive,” and “funds,” which means “money.” The 1995 Capital Market Law defines Mutual Funds as a means to raise funds from public investors, which Investment Manager Companies invest in securities portfolios. As managers of Mutual Fund products, Investment Manager Companies invest their funds in securities, record profits or losses, and receive dividends or interest, which are recorded in Mutual Funds’ Net Asset Value (NAV). NAV is one measure to monitor Mutual Fund Performance.
Today, the Internet has opened the door for Investment Management Companies to take advantage of extraordinary digital marketing opportunities. Digital marketing has been considered a new marketing method. It offers new opportunities for Investment Management Companies, which are expected to reach millions of potential Investors buying Mutual Fund products in the next few decades. Digital marketing is simply a marketing activity realized through Internet and cellular communication, namely on the Internet, through social networks, email, apps, platforms, and others (Kannan, P. K., 2017).
Social media holds its own regarding the news and views it promotes. In fact, in today’s world, social media has its pride of place, side by side with any financial news resource worth its salt. Thus, this implies that individual and institutional investors rely increasingly on social media sources to make investment decisions.
Key Terms in this Chapter
Consumer Purchase Intention: A consumer’s purchasing intention refers to a consumer’s attitude toward a specific purchasing behavior and the consumer’s degree of willingness to pay.
PLS-SEM: The partial least squares path modeling or partial least squares structural equation modeling (PLS-SEM) is a method for structural equation modeling that allows the estimation of complex cause-effect relationships in path models with latent variables.
Purposive Sampling: Purposive sampling refers to a group of non-probability sampling techniques in which units are selected because they have characteristics that you need in your sample.
Mutual Fund: A mutual fund is a pooled collection of assets that invests in stocks, bonds, and other securities. When you buy a mutual fund, you get a more diversified holding than you would with an individual security, and you can enjoy the convenience of automatic investing if you meet the minimum investment requirements.
Social media: Social media refers to interactions among people who create, share, and exchange information and ideas in virtual communities and networks.
Digital Media Marketing: Digital marketing, also called online marketing, promotes brands to connect with potential customers using the Internet and other forms of digital communication. It includes email, social media, web-based advertising, and text and multimedia messages as a marketing channel.
Celebrity Endorsement: Celebrity endorsement, also known as celebrity branding or advertising, is a marketing strategy that uses a celebrity’s fame and image to promote a brand or product.