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

Mohammadhossein Soleimani, Mahdokht Safarpour, Javad Tahmasebi and Seyed Mohammad Mirmahdi Komejani

International Journal of Finance, Insurance and Risk Management, 2020, vol. 10, issue 4, 68-80

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.

Keywords: Advertising; negative publicity; trustworthiness; SunStar juice. (search for similar items in EconPapers)
JEL-codes: M31 M37 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:10:y:2020:i:4:p:68-80

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