Asian Journal of Economics, Business and Accounting

Globalization has led to an increased competition as firms expand their coverage including various domestic and international markets. Therefore, the cosmetic industry has been growing and expanding around the world in both developed and developing countries. As a result, customers have a growing selection of purchase options, including an increasing proportion of foreign products and brands. It is clear that there is a need for better understanding of the factors that determine the choice of consumers of domestic and foreign products in different market settings. One of the strategies that are used by companies to differentiate their cosmetic products is through celebrity endorsement. Despite the popular advertising technique of using celebrity endorsement, market researchers and advertisers have not agreed as to which celebrity source characteristics are most effective in influencing consumers’ purchase intention of the endorsed products or brands. Other than that, another important factor that affects consumers’ purchase intention is the consumer ethnocentrism level. Consumers in different countries have different preference over local and international products. Thus, the objective of this paper is to propose a suitable approach and develop a conceptual framework to examine the factors influencing the purchase intention of cosmetic products. This study will investigate the characteristics of the celebrity endorser that will have either positive or negative influence on consumers through the source credibility model (expertise, attractiveness, and trustworthiness). Moreover, this study will also examine the moderating role of ethnocentrism of consumers to ensure whether it is more suitable to hire a local celebrity or international celebrity. The finding of this study could help cosmetic products marketers to design more suitable ads in terms of celebrity characteristics and understand the role of consumer ethnocentrism in the consumer's decision making.