Celebrity endorsement: How celebrity–brand–user personality congruence affects brand attitude and purchase intention

The present study provides and tests a conceptual framework aimed at comparing the relative effectiveness of celebrity–user, brand–celebrity, and user–brand personality congruence on brand attitude and brand purchase intention (BPI) thereafter. The data collection was done via an online survey of a representative group of consumers (n = 431) located across India. Hypotheses were tested using regression analysis with mediation approach. The results indicate that while user–brand and brand–celebrity personality congruence have a significant impact on brand attitude and purchase intention, celebrity–user congruence does not. Further, brand attitude is found to be a partial mediator on the relationship between the pair-wise personality congruence on BPI. The findings have major implications for marketers in understanding the significance of personality congruence among celebrity–brand–user in the formation of brand attitude and purchase intention that can be used in positioning and in increasing the advertising effectiveness of brands using celebrity endorsement. The present study is a pioneer in contributing to the celebrity endorsement literature by investigating the relative impact of three pairs of personality congruence: celebrity–brand, brand–user, and celebrity–user, on brand attitude and BPI, thereby supporting the applicability of McCracken's Meaning Transfer Model [McCracken (1989), The Journal of Consumer Research, 16 (3) 310–321) and the Hierarchy-of-effects model (Lavidge and Steiner (1961), Journal of Marketing, 25 (6) 59–62].     

Celebrity endorsement in the world of luxury fashion – when controversy can be beneficial

ABSTRACT

Can a negatively publicised celebrity endorser ever lead to favourable brand attitudes toward a luxury fashion product (i.e. a perfume)? An online experiment was conducted with a sample of 260 target-relevant female consumers where two factors were manipulated: the brand’s positioning objective (image reinforcement versus revitalisation) and the type of celebrity endorser (naturally versus incidentally controversial). Consumer attitudes towards the luxury fashion brand were generally more positive when the type of celebrity endorser was consistent with the brand’s positioning strategy, that is, when a naturally controversial celebrity endorses a brand with a reinforcement strategy and when an incidentally controversial celebrity endorses a brand with a revitalisation strategy. Furthermore, this effect was mediated by consumers’ appreciation of the celebrity-positioning match-up (i.e. the consistency between the celebrity’s persona and the brand’s strategy) but not by their perceptions of appropriateness (i.e. the traditional match-up hypothesis). Several implications suggested by these findings are developed.     

Examining the impact of celebrity endorsements across consumer segments: an empirical study of Tiger Woods’ endorsement effect on golf equipment

This paper empirically examines whether endorsement effects differ across consumer types–expert vs. novice. The study uses aggregate sales data from the golf equipment industry covering two unique retail channels (on-course and off-course) to estimate endorsement effects for Tiger Woods. The study finds that Tiger Woods’ endorsement of Titleist woods had a greater effect in the off-course retail channel frequented by novice golfers than the on-course channel frequented by experts. I determine that such an effect led to over 28 thousand more Titleist woods being sold and an additional $9.2 million in revenue for the 9 months prior to Tiger Woods switching to endorse Nike apparel and equipment. I also determine that Tiger Woods’ endorsement led to over $500,000 in additional profit for each of the last 5 months of his endorsement contract with Titleist, which provided a 49% Return on Investment from US sales of Titleist woods, putters, and irons. Lastly, I present preliminary evidence to explain a possible reason why the observed endorsement effects varied by consumer types—Tiger Woods’ endorsements were informative to consumers. Specifically, I find support indicating Tiger Woods’ endorsement was more informative to novice golfers than experts.     

A systems perspective on markets – Toward a research agenda

This paper addresses the implications of an emerging, increasingly important way of thinking about markets: systems thinking. A market is one of the most founational abstractions in marketing and business research; yet, it often receives too little attention. As a result, the taken-for-granted assumptions about markets spur from over-simplified conceptualizations of neoclassical economics that depict markets as static and mechanistic. Systems thinking represents a major change in perspective that involves transcending this mechanistic worldview and thinking instead in terms of wholes, relationships, processes, and patterns. We argue that building a theory of markets based on systems thinking, would enable scholars to develop more realistic models that correspond with fast-changing business environment and therefore, increase both the rigor and relevance of future research. To further this aim, we identify the main implications of systems thinking and formulate them into a research agenda to further the systemic understanding of markets.     

Failed but validated? The effect of market validation on persistence and performance after a crowdfunding failure

We investigate the impact of market validation on persistence and subsequent performance following a specific type of failure (crowdfunding failure). We leverage a mixed methods design, employing a controlled lab experiment with entrepreneurs (Study 1) and a four-year lagged longitudinal field study which combines two archival databases (Study 2). In our experiment, we find that market validation encourages entrepreneur persistence through affective activation and cognition-based action intentions (specifically search and knowledge integration). We also find that another form of validation, expert validation, strengthens this relationship. In our field study, market validation is shown to be a stronger predictor of performance after a crowdfunding failure in comparison to expert validation. We draw from the social proof and wisdom of the crowd perspectives to develop our theoretical model and explain the implications of our findings.     

Enterprise Identity Management – Towards a Decision Support Framework Based on the Balanced Scorecard Approach

Enterprise Identity Management Systems (EIdMS) are an IT-based infrastructure that needs to be integrated into various business processes and related infrastructures. Assessment and preparation of decisions for the introduction need to take the costs, benefits, and the organizational settings into consideration. A variety of methods for the evaluation and decision support of new IT (e. g. EIdMS) are discussed in the literature – however, these are typically based on single dimensions (e. g. financial or technology aspects). This paper proposes a multidimensional decision support framework, based on the Balanced Scorecard concept. The presented approach introduces four perspectives and a related set of initial decision parameters to support decision making. The perspectives are (a) financial/monetary, (b) business processes, (c) supporting processes and (ICT) infrastructure and (d) information security, risks and compliance. Perspectives and adaptable sets of decision parameters also may serve as foundation for software-based decision support instruments.

A local bicycle helmet ‘law’ in a Swedish municipality – the effects on helmet use

The municipality of Motala in Sweden introduced a local bicycle helmet ‘law’ on May 1, 1996. This is not a legally enacted ordinance, but instead a legislated recommendation backed up by information and education. Formally, the law applies to children (aged 6–12 years), although the intention is to increase helmet use by all cyclists. The objective of the present study was to quantitatively evaluate the impact of the Motala helmet law on observed use of helmets by children and adults. Bicycle helmet use was monitored in Motala (n = 2,458/year) and in control towns (n = 17,818/year) both before and after adoption of the helmet law (1995–1998). Chi-square tests showed that helmet wearing 1995–1998 increased in Motala among all bicyclists (from 6.1% to 10.5%) and adults biking on cycle paths (from 1.8% to 7.6%). Helmet use by school children aged 6–12 increased during the first 6 months after introduction of the law (from 65.0% to 75.7%) but then progressively decreased to the pre-law level. Considering children cycling on cycle paths and for recreation in housing areas, there was a tendency towards increased helmet use during the first post-law year, but this was followed by a reduction to a lower level in 1998 than in 1995. Logistic regression analysis taking into account data from the control towns indicated that the helmet law had a positive effect on children cycling to schools during the first 6 months, and a weak delayed but more long-term positive effect on adult cyclists on cycle paths. There were no positive effects on children in housing areas and on cycle paths. The Motala helmet law probably would have had greater and more lasting effects on helmet use by bicyclists, if certain problems had been avoided during the initiation phase. Moreover, although it did have a positive influence on both school children and adults, it is not legally binding, and hence no penalties can be imposed. Presumably, compulsory legislation would have a more substantial impact on helmet wearing than a non-mandatory helmet ‘law’ such as that introduced in Motala.     

Modernity/art and Marketing/aesthetics—a Note on the Social Aesthetics of Georg Simmel

This paper interrogates and contrasts representations of work and Utopia in two examples of popular culture. The examples are a sample of contemporary popular management books and a sample of work-related themes in the popular music of Bruce Springsteen. In comparing the two the paper examines how they both use utopian representations as a key element of their claims, yet do so in markedly different ways. It is argued that Springsteen uses a “voice from within” to explore the ambiguities and paradoxes that emerge from the gap between real experience and utopian desire. Conversely, popular management books tend to speak from a “voice from above” that actively suppress ambiguity and ignore power in order to reproduce the dominant ethos of contemporary capitalism. Thus while popular management provides uncritical support for its imaginary Utopia, Springsteen provides a compelling critique of the promises of economic freedom through capitalism—promises which management writers are so often complicit in (re)producing.     

An Empirical Investigation of the Ethical Perceptions of Future Managers with a Special Emphasis on Gender – Turkish Case

This study presents an empirical investigation of the ethical perceptions of the future managers – Turkish university students majoring in the Business Administration and Industrial Engineering departments of selected public and private Turkish universities – with a special emphasis on gender. The perceptions of the university students pertaining to the business world, the behaviors of employees, and the factors leading to unethical behavior are analyzed. The statistically significant differences reveal that female students have more ethical perceptions about the Turkish business climate, behavior of employees, and the ethicalness of the behavior of the employees in comparison with their male counterparts. M.G. Serap Atakan is an Assistant Professor at the Department of Business Administration of Istanbul Bilgi University, Turkey. She is teaching and conducting researches on business ethics, corporate social responsibility and retailing. She has two co-authored articles published in the Journal of Business Ethics. Sebnem Burnaz is an Associate Professor of Marketing at Istanbul Technical University. She holds Ph.D. degree in management with major in marketing. Her teaching and research interests are in the field of Marketing, Retailing, Decision Making, and Business Ethics. She has published articles which have appeared in Advances in International Marketing, Sex Roles: A Journal of Research, Journal of Multi-Criteria Decision Analysis. Y. Ilker Topcu is an Associate Professor of decision sciences in Istanbul Technical University. He has finished his Ph.D. studies in I.T.U., Faculty of Management. His teaching and research specialties are in the field of Operations Research/Management Science, Multiple Criteria Decision Making, Logistics, Transportation Planning, and Business Ethics. He has published papers which have appeared in Journal of the Operational Research Society, European Journal of Operational Research, Journal of Multi-Criteria Decision Analysis, Journal of Global Optimization, Transportation Research Part A, Lecture Notes in Economics and Mathematical Systems, Energy, and Building and Environment.     

Technological Innovation and Its Impact on Business Model, Organization and Corporate Culture – IBM’s Transformation into a Globally Integrated, Service-Oriented Enterprise

This article investigates the influence of information and communication technology (ICT) on business transformation. First, the general, ICT-driven development lines of globalization and service-orientation are described. Then, an analysis of the IBM Corporation’s transformation over the past 50 years into a globally integrated, service-oriented company illustrates that ICT innovations must be dealt with by simultaneous adaptation of business model, organization and corporate culture. For many companies the ability to manage this change becomes increasingly critical.

Is self-employment really a bad experience? : The effects of previous self-employment on subsequent wage-employment wages

We use propensity score matching methods to quantify the effects of past self-employment experience on subsequent earnings in dependent employment using data on the population of Danish men observed between 1990 and 1996. Our results generally confirm existing studies in that we find that a spell of self-employment is associated with lower hourly wages compared to workers who were consecutively wage-employed. We also show, however, that this effect disappears—and even becomes positive in some settings—for formerly self-employed who find dependent employment in the same sector as their self-employment sector. Hence, the on average negative effect of self-employment is rather caused by sector switching than by the self-employment experience per se. Moreover, formerly self-employed who either enjoyed a high income or hired at least one worker during their self-employment spell receive wages in subsequent dependent employment that are at least as high as for individuals who have been consecutively wage-employed.