Celebrity Endorsement as Moderating Variable on the Relationship between Loyalty and Corporate Credibility of Travel Companies in Aceh

Abstract

To increase customer loyalty, travel companies in Aceh use celebrity endorsement to help promote their products. The purpose of this study was to examine important criteria in creating customers’ loyalty. The effect of celebrity endorsement as moderating variabel on the relationship between loyalty and corporate credibility are investigated for this purpose. A sample was drawn from umrah pilgrims in Aceh with 220 respondents. Primary data was used in this study in form of questionnaire with Likert scale. SPSS was used to analyze demographic characteristics of the respondents and descriptive analysis. AMOS 22 was adopted for the Structural Equation Modeling of the survey model for verified analysis using regression weight/loading factor. The findings of this study have shown significant relationships among the variables under investigation. Celebrity endorsement was found as moderating variable between corporate credibility and customers loyalty. The results of this study could provide input for travel companies in Aceh to use celebrity endorsement if they wanted to increase customer loyalty of umrah pilgrims.