Firms' Strategic Leverage of Unplanned Exposure and Planned Advertising: An Analysis in the Context of Celebrity Endorsements

Derdenger, Timothy; Li, Hui; Srinivasan, Kannan

doi:10.1509/jmr.160260

Cited by 8 publications

(13 citation statements)

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“…Instead, we argue that the relative effectiveness of celebrity endorsers is greater in countries with higher PDB, because these consumers perceive celebrities as credible. The mechanism underlying our effect offers insights into when and why celebrity endorsers still can prompt positive effects among lower-PDB consumers (e.g., Agrawal and Kamakura 1995; Chung, Derdenger, and Srinivasan 2013; Derdenger, Li, and Srinivasan 2018). Specifically, in countries with higher PDB, other factors that influence endorsement effectiveness, such as product–celebrity fit (Misra and Beatty 1990), may be less influential because consumers assume the celebrity's expertise, regardless of fit.…”

Section: Discussionmentioning

confidence: 95%

“…Although these celebrity endorsers can be costly, they also can produce the intended benefits for the firm. For example, Agrawal and Kamakura (1995) find that celebrity endorsers increase firm value through stock returns, and Derdenger, Li, and Srinivasan (2018) show that they positively influence sales. These findings suggest that celebrity endorsements are effective in the United States, but their effectiveness across countries that vary on important cultural traits is unclear (e.g., Aggarwal-Gupta and Dang 2009; Choi, Lee, and Kim 2005).…”

Section: Discussionmentioning

confidence: 99%

“…However, celebrities are human, and information about them changes constantly, so the effects of celebrity endorsements should be dynamic too. Derdenger, Li, and Srinivasan (2018) note that celebrity endorsers can affect firm sales through dynamic effects such as performance (e.g., golfers’ success). Celebrity endorsers might be more effective if the celebrity grows in fame or receives fresh media attention due to the release of a new movie or winning a championship during the advertising campaign.…”

Section: Discussionmentioning

confidence: 99%

“…Celebrity endorsers offer various benefits for brands by drawing attention to the marketing communication, raising brand awareness, defining the brand image, and increasing sales (Erdogan 1999; Kaikati 1987). Marketers use celebrity endorsers to promote new brand images or reposition brands (Erdogan, Baker, and Tagg 2001) as well as to increase sales (Derdenger, Li, and Srinivasan 2018) and enhance firm value (Agrawal and Kamakura 1995).…”

Section: Conceptual Developmentmentioning

confidence: 99%

“…Most extant endorsement research refers to the United States (Derdenger, Li, and Srinivasan 2018; Knoll and Matthes 2017), but growing interest extends to other countries (e.g., Aggarwal-Gupta and Dang 2009; Choi, Lee, and Kim 2005; Mishra and Mishra 2014) and reveals cultural differences in celebrity endorsements. Paek's (2005) content analysis of newspaper advertisements notes more celebrity endorsements in South Korea than in the United States.…”

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confidence: 99%

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When Celebrities Count: Power Distance Beliefs and Celebrity Endorsements

Winterich

Gangwar

Grewal

2018

Journal of Marketing

108

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The use of celebrity endorsements varies across countries; does their effectiveness similarly vary across cultures? The authors propose that power distance beliefs (PDB), a cultural orientation related to the extent to which people expect and accept differences in power, moderate the effects of celebrity endorsements. A positive effect of celebrity endorsers on evaluations of advertising should be more potent with greater PDB; source expertise and trustworthiness likely underlie this effect. To test the hypotheses, the authors use moderated mediation analyses, with corrections for measurement error and endogeneity of the mediators (source expertise and trustworthiness). The results of three studies, using both manipulated and measured PDB for respondents in different countries and with a variety of endorsers, demonstrate that PDB determine the effectiveness of celebrity endorsements on attitudes toward the advertisement and the brand. In support of the moderated mediation model, perceptions of source expertise and trust mediate the effect of celebrity endorsements, conditional on PDB. The results hold for nondurables but do not generalize to durable products.

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Section: Discussionmentioning

confidence: 95%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Conceptual Developmentmentioning

confidence: 99%

mentioning

confidence: 99%

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When Celebrities Count: Power Distance Beliefs and Celebrity Endorsements

Winterich

Gangwar

Grewal

2018

Journal of Marketing

108

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Understanding the role of influencers on live streaming platforms: when tipping makes the difference

Zhou

Jin²,

Wu³

et al. 2022

EJM

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Purpose This study aims to examine if the participation of live-stream influencers (LSIs) affects tipping frequency on live streaming platforms, and further investigate the mediating and moderating mechanisms. Design/methodology/approach Quasi-experiment and difference-in-differences models are used for data analysis. Propensity score matching is used to address potential unobservable endogeneity. Findings Real-time live streaming data reveal that LSIs’ participation significantly improves tipping frequency in live streaming rooms. Also, more users are attracted to the live streaming rooms and more users become active in participation. Additionally, the positive impact of LSIs’ participation is enhanced in the live streaming rooms with a greater number of relationship links between users. Research limitations/implications The findings clarify the new role of influencers and reveal the mechanisms on how LSIs benefit the platforms. Practical implications The findings offer novel insights into implementing influencer marketing to interactive social media platforms, by encouraging influencer participation, user relationship building and influencer network growth. Originality/value This study highlights the value of LSIs for interactive social media platforms in terms of organic growth, revenue generation and cost reduction.

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How the type of sports-related endorser influences consumers' purchase intentions

Felbert

Breuer

2020

IJSMS

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PurposeAs the superiority of sports celebrities' endorsements has been questioned, the purpose of this study is to identify various types of endorsers' direct and indirect effects on consumers' purchase intentions.Design/methodology/approachEmpirical data were collected from 240 useful responses to an online experiment, and research hypotheses were tested using (moderated) serial mediation analyses.FindingsThe study's findings indicate that an endorser has a positive influence on consumers' purchase intentions through their perceptions of the advertisement and the endorsed brand. A moderated serial mediation analysis finds differences in the four types of endorsers analyzed. A sports celebrity is the most effective type of endorser in increasing consumers' purchase intentions, whereas endorsements by company managers and peer consumers, while also positive, are less effective in influencing advertising outcomes. An expert's endorsement is comparable to that of a manager but not significant.Research limitations/implicationsThe generalizability of the study's findings is limited because of a restricted data sample, the use of fictitious endorsers and the limited number of product categories and brands analyzed.Originality/valueThe study systematically analyzes the behavioral influence of four types of endorsers on consumers' purchase intentions, mediated by their perceptions of the advertisements and the endorsed brand. The results of this analysis extend the current state of endorsement research, indicating that endorsements should be integrated into companies' marketing strategies and provide marketing professionals practical guidance on which type of endorser is most effective in influencing advertising outcomes.

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Firms' Strategic Leverage of Unplanned Exposure and Planned Advertising: An Analysis in the Context of Celebrity Endorsements

Cited by 8 publications

References 0 publications

When Celebrities Count: Power Distance Beliefs and Celebrity Endorsements

When Celebrities Count: Power Distance Beliefs and Celebrity Endorsements

Understanding the role of influencers on live streaming platforms: when tipping makes the difference

How the type of sports-related endorser influences consumers' purchase intentions

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