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The Effect of Celebrity Endorsement on Brand Reputation: Α Case Study

Author

Listed:
  • Mohammadhossein Soleimani
  • Mahdokht Safarpour
  • Javad Tahmasebi
  • Seyed Mohammad Mirmahdi Komejani

Abstract

Purpose: This study aims at investigating the impact of the credibility of the approving celebrity on the reputation of the brand and also investigates the role of the moderator of the negative publicity among customers. Design/Methodology/Approach: This study is applicable based on objective and descriptive-survey based methodology. Findings: Data analysis reveals that the credibility of the approving celebrity has a positive and significant effect on the reputation of the brand. Besides, findings obtained from the subordinate assumptions show that attractiveness, expertise and being commensurate with product have a positive and significant impact on brand reputation whereas trustworthiness does not affect brand reputation significantly. Moreover, findings obtained from the moderator assumption reveals that the negative publicity plays the role of the moderator in the causal relationship between the credibility of the approving celebrity and brand reputation. Practical Implications: Generally, a celebrity endorsement leads to a favorable attitude towards the brand and ultimately leads to the intention to buy the products. Originality/Value: In summary it can be stated that the celebrity's characteristics must match that of the advertised product. Of course, there should be more caution here, because the more famous a person is, the more dangerous his or her fall can be and it can have huge consequences for the company.

Suggested Citation

  • Mohammadhossein Soleimani & Mahdokht Safarpour & Javad Tahmasebi & Seyed Mohammad Mirmahdi Komejani, 2020. "The Effect of Celebrity Endorsement on Brand Reputation: Α Case Study," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(4), pages 68-80.
    • Handle: RePEc:ers:ijfirm:v:10:y:2020:i:4:p:68-80
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    References listed on IDEAS

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    1. Johannes Knoll & Jörg Matthes, 2017. "The effectiveness of celebrity endorsements: a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 45(1), pages 55-75, January.
    2. McCracken, Grant, 1989. "Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(3), pages 310-321, December.
    3. Wang, Stephen W. & Kao, Grace Hsiu-Ying & Ngamsiriudom, Waros, 2017. "Consumers' attitude of endorser credibility, brand and intention with respect to celebrity endorsement of the airline sector," Journal of Air Transport Management, Elsevier, vol. 60(C), pages 10-17.
    4. Kahle, Lynn R & Homer, Pamela M, 1985. "Physical Attractiveness of the Celebrity Endorser: A Social Adaptation Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(4), pages 954-961, March.
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    More about this item

    Keywords

    Advertising; negative publicity; trustworthiness; SunStar juice.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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