Effect of Public Disgrace on Celebrity Endorser Value

Abstract

While celebrity endorsers are widely used to promote products because of their visibility, attractiveness and expertise, marketers run a risk if they subsequently get involved in a scandal. Previous research indicated that the seriousness of a scandal would depend on the degree of harm to any victim and the extent to which it fell outside society's norms. This study systematically investigated the effect of scandal and product type on a celebrity's suitability to continue endorsing. A hypothetical Sydney Olympics sports celebrity, facing a variety of scandals, was evaluated by samples of undergraduate and graduate students. It was found that the scandals tested (particularly, rape and recreational drug use) had a very strong effect on likeability and through this to trustworthiness and expertise. In turn, trustworthiness and likeability had a moderate influence on suitability to continue endorsing. Product endorsements related to sport contributed directly to rated expertise and this in turn contributed to suitability to continue endorsing, somewhat ameliorating the effects of scandal.

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