The proposed hypotheses were tested using structural equation modelling (SEM). Two
models were tested. Model 1 (Partial mediation model) was used to test H1, H2, H3, H5
and H6. The combined results of Model 1 and Model 2 (Direct effect model) were useful
in testing H4. Measures for the key constructs included in the models are assumed to be reflective. in nature consistent with previous research. Hence, a reflective specification of the first-order dimensions is assumed. By definition, consumer-based brand equity is “reflected in the dimensions of brand awareness, brand associations, perceived quality and brand loyalty”. These four dimensions constitute a ...view middle of the document...
H3 predicted that endorser credibility would positively influence brand equity.
In Model 1, the endorser credibility-brand credibility path is positive and statistically significant supporting H1. H2 is also supported as the brand credibility-brand equity path is positive and statistically significant. However, the direct effect of endorser credibility on brand equity was not significant failing to offer support for H3. Model 1 displayed good fit to the data for both the high credibility endorser and the low credibility endorser.
Results for the mediating role of brand credibility
Model 2 (Direct effect model)
This model examines the direct effect of endorser credibility on brand equity, but does not include brand credibility as a mediating variable. H4 predicted that brand credibility would mediate the relationship between endorser credibility and brand equity. The combined results of Models 1 and 2 help in examining H4.
Four conditions should be satisfied for the existence of a mediation effect (Baron and Kenny, 1986):
(1) the predictor variable (endorser credibility) should significantly influence the mediating variable (brand credibility);
(2) the mediating variable (brand credibility) should significantly influence the dependent variable (brand equity);
(3) the predictor variable (endorser...