Abstract
This research examines how the announcement of a celebrity endorsement contract with a brand can influence consumers’ judgment of its future growth in a market. Using both behavioral experiments and an event study analysis, we find that when the brand is perceived to be technology-focused (versus marketing-focused), the information about the celebrity contract can lead consumers to view the brand’s future as less promising. Furthermore, we identify consumers’ inferences about the quality of the brand as a psychological factor underlying this effect. This paper provides evidence that star-marketing can sometimes signal management’s misjudgment about resource allocation for a brand, which unduly invests in celebrity marketing at the expense of quality improvement for the product.
Recommended Citation
Jang, Hojoon and Lee, Kyoungmi
(2018)
"The Dark Side of Star Marketing,"
Asia Marketing Journal: Vol. 20
:
Iss.
3
, Article 4.
Available at: https://doi.org/10.15830/amj.2018.20.3.63
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This work is licensed under a Creative Commons Attribution 4.0 License.
