PARA-SOCIAL RELATIONSHIP (PSR) FORMED WITH THIRD-PARTY ENDORSEMENTS (TPE) INSPIRES SKIN-CARE INDUSTRY OF PAKISTAN- AN INSTIGATED CHANGE IN MARKETING FEILD

Abstract

Making use of the Signaling Theory, this dissertation investigates the impact of expertise of third-party endorsement (TPE) and self-susceptibility to product placement in vlogs in forming the para-social relationship between the customer and the brand, thus anticipating customer equity and online purchase intention, keeping trustworthiness of the third-party as a mediator. This paper also aimed to examine the group differences between two types of customer segments i.e., below the age of 28 and above the age of 28. The dissertation used partial least square-based structural equation modeling method, mediation analysis and multi-group analysis test on the data set of 300 active users of social media and active users of skin-care products. Smart PLS and SPSS statistical software were used for the data analysis. The results show that expertise of TPE has a lesser (yet significant) impact on forming para-social relationship as compared to self-susceptibility to product placement in vlogs. The relationship of para-social relationship with customer equity and with purchase intention was also found to be significant. Mediation analysis confirmed that trust mediates the relationship between self-susceptibility to product placement in vlogs and para-social relationship but it does not mediate the relationship between expertise of TPE and para-social relationship.