An exploration of celebrity business ventures and their appeal to fans and non-fans

Recently, an increasing number of celebrities have launched their own businesses. Although celebrity entrepreneurs may expect their credibility to enhance customers’ purchase intentions, this study does not find this effect. Instead, it finds that customers’ purchase intentions rely mainly on customers’ attitudes toward the celebrity's venture brand. Customers’ perceived congruence between a celebrity and the celebrity's business significantly affects their brand attitudes. Additionally, this study finds that a celebrity's credibility can only increase fans’ positive attitudes toward the celebrity's venture brand; therefore, being a celebrity entrepreneur is riskier than being a brand endorser in terms of consumer attitude.     

Celebrity Endorsements

Abstract

Advertising professionals rely on the assumption that using a celebrity to endorse a brand will result in an increase in consumer recall of the brand. Advertisers believe that using a celebrity endorser will foster, in the mind of the consumer, a match or connection between the celebrity endorser and the endorsed brand. The results presented in this study, however, found that a celebrity recognized in a magazine advertisement did not increase consumer recall of the brand endorsed by the celebrity for both professional athlete celebrities and other entertainment celebrities who are not professional athletes. Furthermore, subjects in this study did not correctly identify the brand when previously exposed to the full magazine advertisement, even when the celebrity's face cued the subject for recall. The results of this study raise questions relative to using celebrity endorsements to enhance brand recall.     

When luxury brands meet China: The effect of localized celebrity endorsements in social media marketing

In social media marketing, celebrity endorsement is a widely used strategy. Luxury brands use their social media accounts to post pictures of celebrities using their products. However, they would be confronted with the dilemma of whether to standardize or localize their celebrity endorsers for different markets. This dilemma of whether to standardize or adapt their advertisements to the local market has been haunting luxury brands for a long time. This paper examines the effectiveness of localized celebrity endorsements for luxury brands on Chinese social media. We analyze whether Chinese celebrity endorsers could trigger more social media interactions and enhance perceived brand luxury than Western celebrity endorsers, based on an analysis of online big data and two experiments. We also explore when localized celebrity endorsement is most effective, focusing on the moderating role of patriotism. The results suggest that localized (vs. standardized) celebrity endorsements lead to more social media interactions. Using localized (standardized) celebrity endorsements enhance the perceived brand luxury for people with high (low) patriotism.     

The effects of schema congruity on consumer response to celebrity advertising

The trend of celebrity-branded products is on the rise, creating a new domain in which to explore the match-up hypothesis. Moving beyond the celebrity as an endorser, but rather, a brand promoting a brand extension, this article examines how perceived congruence between a celebrity's image and the brand image of products they have developed is related to attitudinal and behavioral measures of advertising effectiveness. Employing a 2 × 3 full factorial design, congruence between the celebrity's image and the brand's image was varied (less vs. more congruent), along with the use of the celebrity's image (present, absent, non-celebrity models) to determine how schema congruity influences consumer's response to celebrity advertising. The results of a multivariate analysis of covariance analysis indicating lower levels of congruence between the celebrity's image and the brand's image led to greater advertising effectiveness compared to higher levels of congruence. Specifically, the means of the attitudinal dependent variables in the less congruent condition were significantly higher than the means in the more congruent condition. These effects were more pronounced when a celebrity's image was featured in the advertisement compared to when it was not featured. The implication of the findings suggests that moderate violations in the consumer's celebrity schema may improve advertising effectiveness.     

The impact of death on consumer responses to celebrity endorser misbehavior

A well‐established stream of research on celebrity misbehavior suggests that negative information may have an adverse effect on an endorsed brand because of its association with a celebrity considered as blameworthy. However, the present research calls into question the generalizability of these results to fatal misbehaviors (i.e., misbehaviors that lead to the celebrity's death). Indeed, after death, a celebrity may gain spiritual meanings, and consumers may find it more difficult to blame a sacred individual. As such, the current article investigates the impact of a celebrity's death on blame attribution and consumer attitudes in the context of celebrity endorser misbehavior. The results of three experiments uncover that death favors a partial blame attribution transfer from the celebrity endorser to the brand, but only when the misbehavior implies a product related to the brand. In addition, the findings reveal a positive effect of death through celebrity sacredness on brand attitude.     

Impact of Celebrity Endorsements and Brand Mascots on Consumer Buying Behavior

ABSTRACT

Celebrity and brand mascot endorsements are very popular and often-used techniques by marketers. Marketers believe that celebrity and brand mascot endorsements provide a higher degree of appeal, attention, and customer recall ability compared with when this technique is not used. Marketers also claim that a celebrity affects the credibility of claims about a product and increases the memorabilia factor of the message, which may provide a positive effect that could be generalized to the brand. Primarily this essay has been designed such that it examines various parameters related to advertisements containing celebrity and brand mascot endorsements. Data were been collected from 150 respondents through questionnaire and subjected to t test, χ² test, and difference of means test to enforce the hypotheses that celebrity endorsements have impacts on customers’ perceptions and their purchase intentions. The findings of this study provide insights for marketing and brand managers to design and market their campaigns effectively.     

Connecting With Celebrities: How Consumers Appropriate Celebrity Meanings for a Sense of Belonging

We propose that consumers appropriate brand symbolism that comes from celebrity endorsements to construct and communicate their self-concepts. We also argue that consumers with high need to belong (NTB) look to celebrities to a greater extent than those who have lower needs to belong, because high-NTB consumers are more likely to look to celebrities for cues about which brands may aid these consumers' attempts to meet their affiliation needs. High-NTB consumers are also prone to develop one-sided (parasocial) relationships with celebrities, and these parasocial relationships mediate the celebrity endorsement effect on self–brand connections. Three studies support these proposed relationships. Furthermore, the third study also manipulates the degree to which the celebrity's image matches that of the brand being advertised, revealing that a symbolic match between the celebrity image and brand image is important for consumers who do not form parasocial relationships with celebrities (i.e., low-NTB consumers).     

Engaging fans on microblog: the synthetic influence of parasocial interaction and source characteristics on celebrity endorsement

Brand managers use celebrity microbloggers to endorse their products on microblogs. Previous studies on celebrity endorsement mechanisms concentrated on source factors such as celebrity's characteristics and celebrity—product congruence. This study introduces a new audience factor: the fan–celebrity parasocial interaction (PSI) to explore the celebrity endorsement mechanism within a microblog context. The study hypothesizes that PSI and source factors (credibility, attractiveness, and congruence) significantly influence endorsement effectiveness. The results of an online survey (N = 862) indicate that PSI and celebrity–product congruence are salient antecedents of endorsement effectiveness. PSI serves as a mediator of the effect of source attractiveness on endorsement effectiveness. Source credibility and celebrity–product congruence are mediators between PSI and endorsement effectiveness. The study develops and tests a conceptual model to illustrate the influential mechanism of celebrity endorsement on microblog platforms.     

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.     

Determinants for Effects of Celebrity Negative Information: When to Terminate a Relationship with a Celebrity Endorser in Trouble?

This study examines three factors that influence consumers’ brand evaluation and purchase intention under negative celebrity information. The study is designed to investigate the effects of consumers’ perceived associative strength between celebrity endorser and brand, the role of congruence between a celebrity endorser's negative information and his/her endorsed brand, and the effects of consumers’ level of brand commitment. The study's findings suggest that congruence or “fit” between a celebrity endorser's negative information and an endorsed brand moderates a consumers’ evaluation of brand and purchase intentions. The study finds that a strong associative link between the brand and the celebrity endorser leads to lower brand evaluation as well as lower purchase intention. It also finds that consumers with a higher level of brand commitment are less likely to react negatively to a celebrity's bad publicity than are consumers with a lower level of brand commitment. Theoretical and practical implications are discussed.     

Celebrity Endorsements in Advertisements and Consumer Perceptions: A Cross-Cultural Study

ABSTRACT

We studied consumer perceptions of celebrity endorsements from a cross-cultural perspective. In empirically examining consumer perception of celebrity endorsement, we used Hofstede's cultural dimensions to develop research propositions and examined these propositions through focus group discussions involving consumers from India and the United States. Findings indicated that specific differences and similarities exist in how consumers across India and the United States perceive celebrity endorsements. There is a positive, although moderate, impact of celebrity endorsements on attention and exposure of consumers. Implications for marketers as well as suggestions for future research are discussed.     

Moderating Role of Brand Familiarity in Cross-Media Effects: An Information Processing Perspective

Abstract

Cross-media advertising campaigns have become commonplace in today's multimedia environment. Drawing from the multiple source effect theorization, this study explores the underlying mechanism of media synergistic effect from an information processing perspective. Brand familiarity is proposed as a moderator of cross-media effects: people with different levels of prior brand-related knowledge tend to process advertisements in diverse cognitive routes. An experiment found that for an unfamiliar brand, media synergy outperformed repeated exposures via a solo medium in terms of raising message credibility and generating more positive thoughts, while similar effects were not seen on a familiar brand.     

The Attitudes of Middle Class Male and Female Consumers Regarding the Effectiveness of Celebrity Endorsers

Abstract

This study analyzes consumer perceptions regarding the effectiveness of celebrity endorsers in relation to the AIDA framework and the match-up hypothesis. Findings indicate that celebrity endorsers influence both men and women, but men were influenced to a greater degree than women. The main AIDA influence is the celebrity endorser's ability to get and hold attention. Celebrity endorsers also appear to help products stand out from the competition, and make ads more memorable, as well as enhancing brand awareness, particularly for desired products. Indications are that the most important celebrity source characteristic is expertise, which apparently can overcome certain celebrity character flaws, such as the lack of trustworthiness and likeability.     

The Role of Country of Origin in Celebrity Endorsements: Integrating Effects of Brand Familiarity

ABSTRACT

With the advent of globalization and open economies in the developing nations, the consumers in the same are experiencing entry of more and more foreign products. The traditional practice of having country of origin (COO) cues to influence consumer attitudes is being juxtaposed with COO cues of celebrity endorsers to influence consumers. In that context, the present study investigates whether (a) a global celebrity would be more applicable for a brand regardless of its COO (local or global); (b) a global celebrity would have a more favorable impact on the consumer attitudes for a third country (TC) brand; and (c) brand familiarity would moderate the effects of celebrity endorsements on consumer attitudes. Based on a detailed literature review, four hypotheses were developed and tested through two experimental designs using nonstudent participants. The independent variables used in study were celebrity endorser COO and brand COO. Major findings indicate a celebrity–brand COO match to create favorable impact on consumer attitudes. Findings also supported the effectiveness of a global celebrity for a brand that does not share the same COO. Brand familiarity was found to moderate the effect of the endorser on consumer attitudes. The study has implications for academia and practitioners.     

Nonprofit Advertising: Impact of Celebrity Connection,Involvement and Gender on Source Credibility and Intention to Volunteer Time or Donate Money

Two studies examine celebrity endorsers in a nonprofit context. In Study One a framework is developed incorporating connection (congruence), source credibility, involvement, and gender as key elements in understanding the impact of celebrity endorsers on nonprofit advertising effectiveness. Hypotheses are tested in the course of the studies that manipulate celebrity connection and advertising involvement. Results support the primary model viewing a relationship between the celebrity's connection, source credibility, and intention. Study Two verifies the connection and source credibility findings of Study One, but cannot confirm the impact of the celebrity connection on intention. Study Two includes attractiveness as a source credibility dimension, and increases the number of endorser types. An attractiveness main effect on intention is identified.     

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].     

Effects of Negative Brand Information: Measuring Impact of Celebrity Identification and Brand Commitment

ABSTRACT

This study investigates the relationship between negative brand publicity and a celebrity endorser. First, it explores whether identification with a celebrity moderates the relationship between negative brand publicity and evaluation of a celebrity endorser and a brand. Second, it delves into whether consumers’ brand commitment moderates the relationship between negative brand publicity and evaluation of a celebrity endorser and a brand. And the study poses the research question, “Does negative brand information impact consumer evaluation of a celebrity endorser, a brand, and purchase intention?” A 2 × 2 between-subject factorial design was used to test the proposed hypotheses. The two factors are level of identification with a celebrity endorser (low or high identification) and level of brand commitment (low vs. high brand commitment). The study found that negative brand publicity had negative impacts on the celebrity endorser, brand evaluation, and purchase intention.     

Examining the Impact of Brand Transgressions on Consumers' Perceptions of Celebrity Endorsers

Prior research has extensively explored the impact of celebrities' transgressions on the brands that they endorse. However, little research exists examining the impact of brand transgressions on consumers' perceptions of the celebrities that endorse these products. This research addresses this oversight and finds that transgressions committed by a brand negatively impact consumers' attitudes toward the endorsing celebrity. Moreover, we find this effect is sequentially mediated by perceptions of responsibility and moral reputation. Finally, we identify two response strategies that a celebrity can employ to mitigate the negative effects of the brand's transgression on the celebrity's reputation. However, the effectiveness of these strategies may be dependent upon perceptions of endorser expertise.     

The Effects of Credible Online Reviews on Brand Equity Dimensions and Its Consequence on Consumer Behavior

Consumers are using social media platform to gain and share knowledge on brands. In the virtual environment, consumers are exposed to various online reviews on brands that leave an impression of brands on the minds of the consumers. The present study combines Yale attitude change model and attribution theory to examine the effects of credible online reviews on brand equity dimensions. The present study views, through the lens of Yale attitude change model, the various factors that affect credibility evaluation of online reviews. Further, attribution theory is used as the theoretical backbone to analyze the effects of credible online reviews on brand equity dimensions and finally on purchase intention. This study uses structural equations modeling (SEM) to investigate the impact of online credible reviews on customer based brand equity (CBBE) dimensions and its consequence on consumer behavior (purchase intention). Results indicate that source and review quality are the most important factors that affect consumer's credibility evaluation of a review. Online credible reviews have more significant impact on brand awareness, perceived value and organizational associations and thus leads to consumer's purchase intention in the context of consumer electronic products in India.