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Celebrity endorsements in emerging markets: Align endorsers with brands or with consumers?

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Abstract

This paper investigates country-of-origin (CO) effects as they relate to celebrity endorsements. Across multiple studies in emerging markets, the authors show that consumers’ evaluations depend on the match between (1) celebrity CO and consumer CO (termed consumer CO fit), and (2) celebrity CO and brand CO (termed brand CO fit). If there is a trade-off between consumer CO fit and brand CO fit, the authors identify contingencies (e.g., ethnocentrism levels) that determine which type of CO fit leads to higher evaluations. Furthermore, the authors develop prescriptions for segmentation in emerging markets and specify when these prescriptions differ from those prescribed by prior international business research.

Résumé

Cet article examine les effets du pays d’origine (PO) lorsqu’ils sont liés aux soutiens de célébrités. Dans le cadre de nombreuses études menées dans des marchés émergents, les auteurs montrent que les évaluations des consommateurs dépendent de l’adéquation entre (i) le PO de la célébrité et le PO du consommateur (appelée adéquation du PO du consommateur) et (ii) le PO de la célébrité et le PO de la marque (appelée adéquation du PO de la marque). S’il existe un compromis entre l’adéquation du PO du consommateur et l’adéquation du PO de la marque, les auteurs identifient des facteurs de contingence (par exemple, les niveaux d’ethnocentrisme) qui déterminent quel type d’adéquation du PO mène à des évaluations supérieures. En outre, les auteurs élaborent des prescriptions pour la segmentation des marchés émergents et précisent quand ces prescriptions diffèrent de celles prescrites par les recherches antérieures en international business.

Resumen

Este artículo investiga el efecto del país de origen (PO) en lo que se relaciona con la promoción de celebridades. A través de múltiples estudios en mercados emergentes, los autores muestran que las evaluaciones de los consumidores depende de la correspondencia entre (i) celebridad-PO y consumidor-PO (denominado ajuste del consumidor PO), y (ii) celebridad-PO y marca-PO (denominado ajuste de marca PO). Si hay una compensación entre el ajuste del consumidor PO y el ajuste de marca PO, los autores identifican contingencias (por ejemplo, niveles de etnocentrismo) lo que determina que tipo de ajuste PO lleva a mayores evaluaciones. Además, los autores desarrollan prescripciones para la segmentación en mercados emergentes y especifican cuando estas prescripciones difieren de las prescritas por investigaciones anteriores en negocios internacionales.

Resumo

Este artigo investiga os efeitos do país de origem (CO) relacionados a endossos de celebridades. Em vários estudos em mercados emergentes, os autores mostram que avaliações de consumidores dependem da correspondência entre (i) CO da celebridade e CO do consumidor (cunhado como ajuste do CO do consumidor) e (ii) CO da celebridade e CO da marca (cunhado como ajuste do CO da marca). Se houver um trade-off entre o ajuste do CO do consumidor e o ajuste do CO da marca, os autores identificam contingências (por exemplo, níveis de etnocentrismo) que determinam que tipo de ajuste de CO leva a melhores avaliações. Além disso, os autores desenvolvem prescrições para segmentação em mercados emergentes e especificam quando essas prescrições diferem daquelas prescritas por pesquisas anteriores em negócios internacionais.

摘要

本文研究了与名人代言相关的原产国(CO)效应。 在新兴市场的多项研究中,作者表明消费者评价取决于(i)名人CO和消费者CO(称为消费者CO匹配)和(ii)名人CO和品牌CO(称为品牌 CO匹配)。如果在消费者CO匹配和品牌CO匹配之间需要权衡,作者则识别(例如,种族中心主义水平)决定哪种类型CO-匹配导致更高评价的意外事件。此外,作者开发了新兴市场细分的处方,并说明这些处方何时与先前国际商务研究规定的处方不同。

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ACKNOWLEDGEMENTS

The authors thank the Editor-in-Chief, Area Editor, and the review team for their guidance and support during the review process. The authors also thank (1) the senior managers who spoke with the authors as this paper developed, and (2) colleagues at their respective business schools who provided both friendly feedback and technical advice at various points in time.

Author information

Authors and Affiliations

  1. Department of Marketing, Indian Institute of Management, Ahmedabad, Gujarat, 380015, India

    Subhadip Roy

  2. Department of Marketing, Darla Moore School of Business, University of South Carolina, Columbia, SC, 29208, USA

    Abhijit Guha

  3. Kmart Endowed Chair, Department of Marketing and Supply Chain Management, Wayne State University, 5201 Cass Avenue, Detroit, MI, 48202, USA

    Abhijit Biswas

  4. Toyota Chair, E-Commerce and Electronic Business, Department of Marketing, Babson College, Babson Park, MA, 02457, USA

    Dhruv Grewal

Authors
  1. Subhadip Roy
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  2. Abhijit Guha
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  3. Abhijit Biswas
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  4. Dhruv Grewal
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Contributions

SR, AG, and AB contributed towards collecting and analyzing data. All authors contributed towards the writing of the paper.

Corresponding author

Correspondence to Abhijit Guha.

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Accepted by Saeed Samiee, Area Editor, 21 November 2018. This article has been with the authors for four revisions.

Appendices

APPENDIX 1: CONTACTS WITH SENIOR MANAGERS IN EMERGING MARKETS

Location

Contact mode

Profile

China

E-mail

~25 years experience; currently advertising professional with MNC subsidiary

China (also pan Asia)

E-mail

~25 years experience; automobiles/white goods/consulting industries; currently country manager with MNC subsidiary

Dubai

Telecon

~25 years experience; airlines/print industries; currently CEO of advertising company

Dubai

Telecon

~25 years experience; currently CEO of advertising company

India

Telecon

~15 years experience; home goods/beauty industries; currently marketing director of MNC subsidiary

India

Telecon

~25 years experience; petrochemicals/foods/farm equipment industries; currently CEO of advertising company

India

Telecon

~25 years experience; foods/insurance industries; currently CEO of local insurance company

India

Telecon

~25 years experience; automobile industry; last job head of international biz for large local automobile company

India

Telecon

~25 years experience; currently advertising professional with MNC subsidiary

India

Telecon

~15 years experience; currently advertising professional with MNC subsidiary

India

Telecon

~20 years experience; currently CEO of local brand consultancy

India

Telecon

~15 years experience; currently CEO of local brand consultancy

India

Telecon

~30 years experience; currently advertising professional with MNC subsidiary

India

E-mail

~25 years experience; media/foods industries; currently CEO of MNC subsidiary

India

E-mail

~25 years experience; foods industry; last job advertising professional with MNC subsidiary

India

E-mail

~20 years experience; automobile/tire industries; currently COO at large car sales portal; prior jobs at MNC subsidiaries

India

E-mail

~20 years experience; automobile industry; prior jobs at MNC subsidiaries and large local firms

India

E-mail

~20 years experience; automobile industry; currently head of international biz for large local automobile company

India

E-mail

~20 years experience; automobile industry; last job as head of marketing at large local automobile firm

India

E-mail

~25 years experience; currently advertising professional with large local firm

APPENDIX 2: SUMMARY OF DATA

Legend:

 
 

LB = local brand; FB = foreign brand

 

LC = local celebrity; FC = foreign celebrity

 

Ind = India; Chn = China

 

PI = purchase Intentions

 

AB = attitude towards the brand

Study 1A

N = 233; India = 120 versus China = 113; female = 42.9%; median age = 32; age range 19–63

 

India – female = 35.8%; median age = 31; age range 19–63

 

China – female = 50.4%; median age = 33; age range 19–60

 

LB/LC/Ind

LB/LC/Chn

LB/FC/Ind

LB/FC/Chn

FB/LC/Ind

FB/LC/Chn

FB/FC/Ind

FB/FC/Chn

n

30

26

30

28

30

30

30

29

Mean (PI)

6.00

5.40

2.80

1.44

3.66

4.88

5.40

2.95

SD (PI)

0.68

1.50

0.57

0.76

0.84

0.82

0.76

1.01

Mean (AB)

6.19

5.37

2.80

2.05

3.47

4.59

6.40

2.99

SD (AB)

0.41

1.18

0.66

0.80

0.75

1.26

0.67

0.85

Study 1B

N = 234; India = 114 versus China = 120; female = 48.3%; median age = 31; age range 18–45

 

India – female = 49.1%; median age = 31; age range 18–45

 

China – female = 47.5%; median age = 30; age range 18–45

 

LB/LC/Ind

LB/LC/Chn

LB/FC/Ind

LB/FC/Chn

FB/LC/Ind

FB/LC/Chn

FB/FC/Ind

FB/FC/Chn

n

29

30

29

30

28

30

28

30

Mean (PI)

5.06

4.53

2.41

2.43

2.07

5.06

3.82

2.90

SD (PI)

0.93

0.98

1.05

0.59

1.05

0.86

0.98

0.92

Mean (AB)

4.86

4.83

3.14

2.43

2.57

5.16

3.95

2.80

SD (AB)

0.64

0.81

0.85

0.83

0.86

0.77

0.71

0.75

Legend:

 
 

LC = local celebrity; FC = foreign celebrity

 

Ind = India; Chn = China

 

LE = low ethnocentrism; HE = high ethnocentrism

 

PI = purchase intentions

Study 2 -

N = 348; India = 210 vs. China = 138; female = 46.5%; median age = 31; age range 18–63

 

India – female = 49.5%; median age = 31; age range 18–57

 

China – female = 42.0%; median age = 31; age range 18–63

 

LE/LC/Ind

LE/LC/Chn

LE/FC/Ind

LE/FC/Chn

HE/LC/Ind

HE/LC/Chn

HE/FC/Ind

HE/FC/Chn

n

52

41

57

28

50

28

51

41

Mean (PI)

5.23

6.07

5.85

6.55

5.78

7.22

5.73

4.85

SD (PI)

0.89

1.27

0.81

0.93

0.98

0.62

1.16

1.17

Consumer ethnocentrism scores

 

India

China

Range

2.18–7.41

1–6.71

Mean (SD)

5.65 (0.79)

3.13 (1.37)

Median

5.65

2.94

α

0.81

0.97

Legend:

 
 

LB = local brand; FB = foreign brand

 

LC = local celebrity; FC = foreign celebrity

 

LE = low ethnocentrism; HE = high ethnocentrism

 

LCM = low cosmopolitanism; HCM = high cosmopolitanism

 

PI = purchase Intentions

 

AB = attitude towards the brand

Study 3 -

N = 400; female = 49%; median age = 35; age range 21–65.

 

Additionally, 42.5% had post-graduate degrees. Further, 10% were students,

 

36.8% were self-employed, 19.2% worked for the government and the balance worked in

 

the private sector. Finally, 57.8% earned less than $7.8 K, and 28.2% earned

 

$7.8–15.6 K

 

LB/LC/LE

LB/LC/LE

LB/FC/HE

LB/FC/HE

FB/LC/LE

FB/LC/LE

FB/FC/HE

FB/FC/HE

n

35

39

65

61

66

56

34

44

Mean (PI)

8.79

5.75

7.99

6.09

4.52

8.36

6.09

3.86

SD (PI)

0.16

0.46

0.39

1.65

1.08

0.30

0.24

0.16

Mean (AB)

8.76

5.72

8.31

6.24

5.07

8.32

6.56

4.15

SD (AB)

0.15

0.49

0.24

1.77

1.33

0.27

0.21

0.46

 

LB/LC/LCM

LB/FC/LCM

LB/LC/HCM

LB/FC/HCM

FB/LC/LCM

FB/FC/LCM

FB/LC/HCM

FB/FC/HCM

n

48

61

52

39

45

51

55

49

Mean (PI)

8.31

5.65

8.23

6.43

5.23

5.27

4.91

7.53

SD (PI)

0.54

1.48

0.47

0.86

0.76

1.95

1.39

1.99

Mean (AB)

8.42

5.67

8.50

6.62

5.90

5.44

5.32

7.57

SD (AB)

0.38

1.57

0.20

0.93

0.80

1.85

1.54

1.79

Consumer ethnocentrism (CET) scores and cosmopolitanism scores

 

CET

Cosmopolitanism

Range

2.35–9

2–9

Mean (SD)

7.11 (1.39)

6.39 (2.06)

Median

7.53

7.20

α

0.94

0.95

APPENDIX 3: MODELS TESTED IN THIS PAPER

figure a

APPENDIX 4: STIMULI EXAMPLES, STUDY 1A

figure b
figure c

APPENDIX 5: DETAILS OF MEASURES

Purchase intentions (PI)

 Based on Pecheux and Derbaix (1999), La Ferle and Choi (2005), and Roy, Guha and Biswas (2015)

 Study 1A α = 0.97; study 1B α = 0.97; study 2 α = 0.94; study 3 α = 0.93

After going through the advertisement, I would…

1 = be unlikely to buy; 7 = be likely to buy

1 = not consider buying; 7 = consider buying

1 = definitely not buy; 7 = definitely buy

Attitude towards the brand (AB)

 Based on Ohanian (1990), La Ferle and Choi (2005) and Roy, Guha and Biswas (2015)

 Study 1A α = 0.96; study 1B α = 0.95; study 3 α = 0.94

After going through the advertisement, what is your opinion about [brand]

1 = Strongly dislike; 7 = strongly like

1 = Unfavorable; 7 = favorable

1 = Negative; 7 = Positive

Consumer ethnocentrism (CET)

 Based on Shimp and Sharma (1987), except that we used a nine-point scale

 Study 2 α = 0.96; study 3 α = 0.94

Cosmopolitanism

 Based on Cleveland et al. (2014), except that we used a nine-point scale

 Study 3 α = 0.95

APPENDIX 6: EXAMPLES OF CELEBRITY–BRAND PAIRINGS

 

Local brand

Foreign brand

India

  

Local celebrity

Priyanka Chopra

-Rajnigandha cardamom

Aishwarya Rai

-Coca Cola

Foreign celebrity

Hugh Jackman

-Micromax

Pierce Brosnan

-Omega

 

Local brand

Foreign brand

China

  

Local celebrity

Li Na

-Taikang Life Insurance Company

Li Na

-Mercedes Benz

Foreign celebrity

Rajon Rondo

-Anta

Roger Federer

-Mercedes Benz

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Roy, S., Guha, A., Biswas, A. et al. Celebrity endorsements in emerging markets: Align endorsers with brands or with consumers?. J Int Bus Stud 50, 295–317 (2019). https://doi.org/10.1057/s41267-018-00209-1

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