A theoretical model of endorser credibility and purchase intention:

rumor as a moderator

Huai-Liang Liang (Corresponding author)

Doctoral student of Postgraduate Programs in Management,
I-Shou University,
Dashu Township, Kaohsiung County 840,
Taiwan
Faculty of Department of Aircraft Engineering
R.O.C. Air Force Institute of Technology
Gangshan Township, Kaohsiung County 820,
Taiwan
Email: huai-liang@yahoo.com.tw

Dong-Jenn Yang
Faculty of Department of Business Administration,
I-Shou University,
Dashu Township, Kaohsiung County 840,
Taiwan

A theoretical model of endorser credibility and purchase intention:

rumor as a moderator

Abstract
Endorser credibility is one of the most prevalent methods employed in product
sales to influence consumers attitudes and their purchase intentions. However, this
paper proposes another important factor that influences consumers choice of products,
which is believed to be rumors disseminated by other people. Rumors have played a
role in diverse human behaviors, and are unconfirmed statements, presented for
possible belief. This research reviews the prevailing research on the relationships
between endorser credibility, consumers Elaboration Likelihood Model (ELM), and
their purchase intentions focusing on rumor as a moderator. The proposed model of
this paper provides a theoretical framework for considering criterion for the related
future studies. Propositions and discussions for future research and practice are
discussed.
Keywords: Endorser credibility, Elaboration Likelihood Model (ELM), Central route,
Peripheral route, Purchase intention

1. Introduction
1.1 Background
The importance of using credible sources such as endorsers credibility or
corporate credibility in a companys marketing communication strategy has been
broadly studied for decades (Harmon & Coney, 1982; Lafferty & Goldsmith, 1999;
Sternthal et al., 1978). Studies have been found that in many situations a highly
credible source is more effective than a less credible source in enhancing recalling
(Sternthal et al., 1978). More specifically, celebrity endorsers positively influence
consumer attitudes towards an advertisement and the associated brand, thus enhance
consumers purchase intention (Amos et al., 2008). Consumers may consider what
they would buy without completely processing all brand or product information.
Patzer (1983) pointed out that consumers evaluations of the brand would include
their credible sources, such as corporate or endorser credibility, prompting more
cognitive processing. However, endorser credibility can influence consumers
purchase intentions even if they do not consider thoroughly the cues regarding
products (Lafferty & Goldsmith, 1999). In this research, we focus on one of the
source credibility, endorser credibility, to discuss the relationship between this source
credibility, consumers different attitude change, and their purchase intentions.
The literature is plentiful in theoretical research and empirical studies that have
assessed endorser credibility (Agrawal & Kamakura, 1995; Amos et al., 2008;
Goldsmith et al., 2000; Lafferty & Goldsmith, 1999). Endorser credibility has found
to affect persuasion and to moderate consumers attitudes (Kelman, 2006; Wu &
Shaffer, 1987). The importance of consumers evaluations, however, does not lie in
the fact that their attitude change may occur because an individual has personally
considered the pros and cons of the issue, but the attitude issue is related to positive or
negative cues. For instance, instead of paying attention to product-relevant issues, a
consumer may be attracted to a promotion simply because the source is a credible
endorser. Credible sources may attract a consumer to decide what attitudinal position
to accept without the need for engaging in any general thought about the
product-revenant arguments.
In these reviews of the many approaches to attitude change used in social and
consumer psychology, these theories focus on one of two different routes to attitude
change (Petty et al., 1983). According to the Elaboration Likelihood Model theory, the
two routes are separated by viewing attitude change (Petty et al., 1981; Petty et al.,
1983). The first one is called central route, which observes consumers attitude change
as resulting from their diligent thought of information that their feelings is central to
the true values of a exact attitudinal position. On the contrary, attitude changes, called
the peripheral route, which happens because the consumer makes a simple inference

about the values of the advocated position based on various simple cues in other
exterior factors. When seeking information related to the product, people may be
influenced by other consumers communication or message related to endorsers.
Another important factor influences consumers selection of products is the
rumor communicated by other consumers (DiFonzo & Bordia, 1997; Katz &
Lazarsfeld, 1995; Kamins et al., 1997). People create rumors in order to make sense
of ambiguous, uncertain, or confusing situation (Allport & Postman, 1947). A number
of empirical studies have found that consumers purchase intention is influenced by
negative rumor or bad news (Calantone & Schatzel, 2000; Frenzen & Nakamoto,
1993; Kamins et al., 1997). With respect to the relationship between endorsers
credibility, consumers attitude change and purchase intentions, this research should
develop an available model with consumers purchase intention issues in order to
discover any possible relationship between these three domains.
This article has two major sections. The first section is to review the literature on
endorser credibility, the ELM theory, and rumors, delineating the most important
definitions that scholars have found how credible endorsers influence consumers
purchase intentions via consumers motivation. Also, the first section is to propose the
influence between the two different routes of consumers attitude change and purchase
intentions when rumor as a moderator, and provide the important propositions for
future research. Then, the final section is to discuss the relationships between all
variables and to provide some constructional suggestions for future research.
1.2 Search strategy
To find relevant studies about the ELM theory, rumor, and purchase intention,
several search approaches were conducted. First, electronic searches (e.g. ProQuest
and EBSCOhost) were used to search key words such as ELM and rumor, rumor and
consumers purchase intentions, endorser credibility and purchase intention, and
credibility issues. However, little research focuses particularly on the relationship
between ELM, rumor, and consumers purchase intentions. The second approach was
to input single key word as the key term (i.e. ELM, rumor, or purchase intention)
rather than two key words (e.g. rumor and consumers purchase intentions) in these
database systems because little research relied on the relationship between
independent variables, moderation, and dependent variables. Period of archive (years)
was not limited due to insufficient studies that simultaneously include credibility,
ELM, rumor, and purchase intention issues. All relevant studies in this reference list
come from top-tier journals (e.g. Academy of Management Journal, Journal of
Advertising, Journal of Applied Psychology, Journal of Consumer Psychology,
Journal of Marketing, and Journal of Business Research).
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2. Theoretical concept and propositions

Some of these propositions posit relationships well known in the literature. We
provide them to express all the relationships we expect to hold in the overall,
simultaneous, and causal sequence. Because so much is known about endorser
credibility, we begin with this issue to set a common foundation, and to evaluate the
adequacy of our framework and its system of relationships simultaneously (Bagozzi
& Youjae, 1988), but for entirety we provide theoretical support for each of the
propositions separately.
2.1 Relationship between credibility endorser and the ELM
A number of empirical studies have found that credible endorsers positively
influence consumer attitudes toward brand, advertisement, and consumers purchase
intentions (Agrawal & Kamakura, 1995; Kelman 2006; Amos et al., 2008). There is a
considerable research on the topic, suggesting celebrity endorsement may
significantly improve financial returns for firms that use them in their advertising
campaigns (Erdogan et al., 2001; Farrell et al., 2000). However, a consumer who is
not diligent considering the product-relevant may accept attractiveness simply
because the endorser credibility is well-known or charming.
One important implication of the Elaboration Likelihood Model (ELM) for
purchase intention is that, different kinds of attractions may be most effective for
different consumers (Lafferty et al., 2002). A person, for instance, who wants to
purchase a new car may actively evaluate and process the car-relevant information. If
a consumer who is not thinking about buying a new car at the moment will not spend
the effort required to consider about the car-relevant information, but may instead
focus on the attractiveness, credibility, or prestige of the products endorser. It is
called peripheral route. On the other hand, if this information is recognized as
convincing and credible, the favorable attitudes will be found, and it is called central
route. Therefore, based on the prior empirical studies on endorser credibility and
consumer attitude change, the first propositions present:
P1a: A consumers motivation will have greater central processing for low
endorser credibility than for high endorser credibility.
P1b: A consumers motivation will have greater peripheral processing for
high endorser credibility than for low endorser credibility.
2.2 Relationship between the ELM and consumers purchase intentions
When consumers are interested in the attractiveness of the endorsers, it seems
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likely that they would combine this information with their decision-making and
accept a suggestion to purchase the product because the endorser source is charming.
The ELM identifies a persons level of motivation to deal with central message
argument as one of its key points influencing the relative impact of central and
peripheral process (Petty, Cacioppo and Schumann, 1983). Also, Petty and Cacioppo,
1983) stated that the ELM suggests that as a consumers motivation to centrally
process brand-relevant aspects of an advertisement increase, the impact of central
processing on purchase intention should increase, the impact of peripheral processing
on purchase intention should decrease, and the impact of brand attitudes on purchase
intentions should also increase. When the ELM is low, then let the endorser serve as a
cue (e.g. peripheral processing) should be better. Thus, the second proposition is
proposed that:
P2: A Consumer will have greater purchase intentions when his motivation
of peripheral processing is high than when his central processing is low.
2.3 The moderating role of rumors between ELM and purchase intention
Rumors have played a role in a variety of human behaviors, and are unconfirmed
statements or reports, presented for possible belief (Allport & Postman, 1947;
Rosnow, 1980; Rosnow, 1991). People like to spread statements which are ambiguous,
uncertain, or confusing situation (Allport & Postman, 1947). Knapp (1944) defined
the term rumor as: (1) a proposition for belief of topical reference disseminated
without official verification; and (2) a special case of informal social communications,
including myth, legend, and current humor. This point distinguishes rumor from other
types of informal communication. For instance, word of mouth (WOM) or gossip,
which is intended to entertain or socialize (Gluckman, 1963), and is mainly focused
and crucial for healthy social functioning (Wert & Salovey, 2004).
Also, Rosnow (1991) claimed four reasons for rumor transmission: (1) rumors
must be outcome-relevant for the audience; (2) rumors must increase individual
anxiety; (3) rumors must have generalized ambiguity; and (4) rumors must have some
credibility. In the credibility factor, it was offered to make the style more truthful, and
to stop the prediction that false rumors with no credibility would get passed on.
However, different rumors (like positive and negative rumors) to consumer
decision-making may impact dramatically on different choices of how consumers
exactly purchase products which they want rather than which they do not thoughtfully
consider.
Many studies have failed to investigate this particular moderator effect. This
overseeing is critical. Certainly, it appears important to analyze the rumor fit
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moderator across the relationship between consumers attitude change and their
purchase intentions to ascertain whether this moderator might explain some portion of
the differences so far. Therefore, we propose that it would imply that the rumors will
moderate the relationship between consumers ELM and their purchase intentions if
the peripheral cues such as the attractiveness of endorser credibility have a greater
influence on persuasion under the conditions of low involvement. Then the final
proposition presents that:
P3: The positive rumors for endorser credibility will moderate the
relationship between consumers motivation routes and their purchase
intentions. The consumers central processing will be moderated to
greater purchase intentions via the positive rumors.
As a result, this research framework is developed in Figure 1.
Rumors:

positive
negative

P3

ELM:

Purchase

Endorser credibility
P1

Central route

P2

intention

Peripheral route

Figure 1. A framework between all variables

3. Discussions
In this paper we propose a research framework to provide the need for the
future consideration of how rumors affect the relationship between consumers
different routes to attitude change and their purchase intentions. In the past, studies in
the consumers attitudes and purchase intentions have focused mostly on the
relationship of source credibility and consumers purchase intentions, neglecting to
discuss external factors, such as rumors, which may pose influence on the relationship.
Yet, most empirical studies regarding source credibility have tried to see if any certain
factors influence consumers purchase intentions (Agrawal & Kamakura, 1995; Amos
et al., 2008; Goldsmith et al., 2000; Kelman, 2006; Lafferty & Goldsmith, 1999);
7

however, it seems likely that there is a lack of emphasis on communicating ways to

affect the relationship between consumers motivations and their purchase intentions.
It is perhaps helpful to summarize what has been gained by this attempt to provide a
theoretical framework of the Elaboration Likelihood Model, rumor, and purchase
intention for future research. Here it is evident to detect a research gap regarding the
relationship of these variables.
Therefore, we have tried to provide two main points in this research. First,
according to the literature on the ELM theory, it is obvious to know that studies stand
to make important contributions to our understanding of consumers attitude change
and their purchase intentions. Second, different rumors may have different impact on
the magnitude of relationship between consumers attitude processing and purchase
intentions. Future researchers may consider these factors and dimensions to analyze
more thoroughly on the relationship between all variables in this research.

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