European Journal of Marketing

Celebrity endorsement, brand credibility and brand equity

Amanda Spry, Ravi Pappu, T. Bettina Cornwell,
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doi.org/10.1108/03090561111119958
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EJM
45,6 Celebrity endorsement, brand
credibility and brand equity
Amanda Spry
882 Department of Management and Marketing, The University of Melbourne,
Melbourne, Australia
Received January 2009 Ravi Pappu
Revised July 2009
Accepted July 2009
UQ Business School, The University of Queensland, Brisbane, Australia, and
T. Bettina Cornwell
Division of Kinesiology, The University of Michigan, Ann Arbor,
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Michigan, USA

Abstract
Purpose – This research aims to examine the impact of celebrity credibility on consumer-based
equity of the endorsed brand. The mediating role of brand credibility and the moderating role of the
type of branding (parent versus sub-brand) employed by the endorsed brand on the endorser
credibility-brand equity relationship are also to be examined. The endorser credibility-brand equity
relationship was developed using associative learning principles whereas the brand signalling theory
is applied to examine the mediating role of brand credibility.
Design/methodology/approach – The conceptual framework was tested using a field experiment.
Data were collected using a mall-intercept approach at a shopping centre from a sample of consumers
in a metropolitan Australian city. The data were analysed using structural equation modelling.
Findings – Results suggest endorser credibility has an indirect impact on brand equity when this
relationship is mediated by brand credibility. This mediating relationship was moderated by type of
branding. However, the “endorser credibility-brand credibility” and “endorser credibility-brand
equity” relationships did not vary according to the type of branding employed.
Practical implications – In support of past findings, the present study shows that a celebrity
endorser should be one who is perceived as credible based on their attractiveness, expertise and
trustworthiness. Moreover, in this research, even a moderately low credibility endorser proved to be
able to build the brand.
Originality/value – The present study is one of the first to empirically examine and confirm the
impact of endorser credibility on brand credibility and consumer-based brand equity.
Keywords Celebrities, Product endorsement, Brands, Australia
Paper type Research paper

Introduction
Celebrity endorsement is considered an effective promotional tool by marketers
worldwide. One-in-four advertisements use celebrity endorsement (MarketWatch,
2006). Celebrity endorsement influences advertising effectiveness, brand recognition,
European Journal of Marketing
Vol. 45 No. 6, 2011 The authors thank the three anonymous reviewers for their helpful comments. Thanks are also
pp. 882-909 extended to Len Coote for his data analysis suggestions. The authors gratefully acknowledge the
q Emerald Group Publishing Limited
0309-0566
financial support of the University of Queensland, who provided the research grant, which was
DOI 10.1108/03090561111119958 awarded to the second author and provided the necessary funding for this research.
 brand recall, purchase intentions and even purchase behaviour. Recent research has Celebrity
also demonstrated that celebrity endorsement leads to a favourable attitude toward the endorsement
endorsed brand (Till et al., 2008), but does it have value in terms of developing brand
equity?
The term brand equity refers to the incremental value added by a brand name to a
product (Farquhar, 1989). Extant literature emphasises the need for further research
identifying marketing activities that can build brand equity (Keller and Lehmann, 883
2006; Yoo et al., 2000). It is commonly accepted that advertising is useful in building
brand equity (Keller, 2005) and that spokespeople may become associated with a brand
in memory (Keller, 1993), but how does celebrity endorsement lead to improvements in
brand equity? Till (1998) and McCracken (1989) have suggested that celebrity
endorsers can build brand equity by creating secondary associations. Seno and Lukas
(2007) have proposed that a celebrity endorser operates as a co-brand for the endorsed
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brand resulting in the creation of equity for both the endorsed brand and the endorsing
celebrity. There is also empirical evidence to say that celebrity endorsement generates
greater recall for both the endorsed brand and the advertisement (Atkin and Block,
1983). Research has also shown that celebrity endorsement can influence perceived
product quality and uniqueness (Dean, 1999).
There is, however, limited understanding of how the credibility of an endorser
might influence the endorsed brand’s equity. Furthermore, the credibility signalled by
a brand is considered important and is believed to contribute to building brand equity
by indirectly adding consumer value to the brand (Erdem and Swait, 1998). Does the
use of credible celebrities for endorsement lead to improvements in brand credibility?
Extant research does not answer this question either. The practice of sub-branding,
whereby an existing brand name is combined with a new name to enter a different
product category (Keller, 2003), is widely used in industries such as automobiles ( Jo,
2007). It is, however, not clear whether celebrity endorsement would be more or less
effective for sub-brands compared to their parent brands. Clearly, research is needed to
empirically examine the relationship between endorser credibility and brand
credibility and the development of consumer-based brand equity.

Conceptual framework
The conceptual framework advanced here (See Figure 1) is based on the associative
network memory model from cognitive psychology and brand signalling theory from
information economics. Associative network memory research is used to explain the
relationship between endorser credibility and brand equity. Brand signalling theory is
used to explain the mediating role brand credibility plays in the relationship. The
moderating role of type of branding (brands vs. sub-brands), on these relationships,
will also be considered.

The associative network memory model

Human memory can be described as “a network consisting of various nodes connected
by associative links” (Till and Shimp, 1998, p. 68). These nodes are pieces of
information that become connected via associative links (Krishnan, 1996).
Consequently, each node becomes a potential source of activation for all associated
nodes. Memory activation expands such that the first node activates other linked nodes
and subsequently, these nodes activate all other linked nodes (Collins and Loftus,
 EJM
45,6

884
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Figure 1.
Conceptual framework

1975). This model is frequently used in marketing to explain the structure of memory
(Till and Nowak, 2000), and thus, consumers’ brand associations (e.g. Chang and
Chieng, 2006). Associative learning principles have also been used to articulate the
underlying process of celebrity endorsement (e.g. Till et al., 2008). A celebrity and a
brand represent individual nodes, which become associated such that each entity
becomes part of the other’s association set (Till and Shimp, 1998). Thus, when a
consumer thinks of a celebrity endorser, they may automatically consider the endorsed
brand and vice versa. This linking could provide a desirable association conducive to
the creation of brand equity (Till, 1998).

Brand signalling theory

The concept of brand credibility has emerged from the brand signalling literature.
According to this theory, which draws largely on information economics, firms can use
brands as signals for conveying information in a marketplace that is characterised by
imperfect and asymmetric information (Erdem and Swait, 2004; Erdem et al., 2002).
Brand signals embody all past and present marketing mix strategies (Meyer and Sathi,
1985). The content of a brand signal can be considered in terms of clarity and
credibility. Clarity refers to the lack of ambiguity of the brand signal content (Erdem
and Swait, 1998), whereas credibility refers to how effectively information is conveyed
by the brand signal and furthermore, how truthful and dependable that information is
considered to be (Tirole, 1988). Credibility is considered the most important
characteristic of a brand signal and is a key focus of this research.

Hypotheses development
Before presenting the hypotheses, variables in the model are reviewed. Endorser
credibility is “the extent to which the source is perceived as possessing expertise
relevant to the communication topic and can be trusted to give an objective opinion on
the subject” (Goldsmith et al., 2000, p. 43; Ohanian, 1990). Brand credibility is “the
 believability of the product position information contained in a brand, which depends Celebrity
on the willingness and ability of firms to deliver what they promise” (Erdem et al., endorsement
2006, p. 34).
Most marketing researchers agree that, from a consumer perspective, brand equity
refers to “incremental value added by a brand name on to a product” (Farquhar, 1989).
Aaker (1991) and Keller (1993) provide two of the most widely accepted
conceptualisations of brand equity based on the consumer perspective. Aaker (1991, 885
p. 16) operationalised brand equity as a set of assets (or liabilities) consisting of brand
awareness, brand associations, perceived quality, brand loyalty and other proprietary
assets. On the other hand, Keller (1993, p. 2) referred to brand equity as customer-based
brand equity and defined it as “the differential effect of brand knowledge on consumer
response to the marketing of the brand”. Though both Aaker (1991) and Keller (1993)
adopted a consumer perspective and focused largely on memory-based brand
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associations there are minor differences in their conceptualisation of brand equity.

While Aaker (1991) had elevated perceived quality (quality-related brand associations)
as a separate dimension, Keller (1993) considered all types of brand associations
(including those that are quality-related) as brand image.
From a consumer perspective, Aaker’s (1991) first four dimensions (i.e. brand
awareness, brand associations, perceived quality and brand loyalty) are considered
important (Yoo et al., 2000). Yoo and Donthu (2001) have coined the term
consumer-based brand equity to refer to the set of these four brand equity
dimensions. This approach is followed in the present research and consumer-based
brand equity is defined as “the value consumers associate with a brand, as reflected in
the dimensions of brand awareness, brand associations, perceived quality and brand
loyalty” (Pappu et al., 2006, p. 698).
Brand awareness refers to the strength of a brand’s presence in a consumer’s mind
(Aaker, 1991). Brand awareness is a necessary condition for brand equity, without
which consumers cannot have brand associations, perceptions of quality and brand
loyalty (Pappu and Quester, 2006). Brand awareness comprises brand recall and brand
recognition whereas brand associations refer to the various meanings surrounding a
brand (Keller, 1993). Perceived quality refers to a consumer’s subjective evaluation of
brand (Zeithaml, 1988). Finally, brand loyalty is approached from an attitudinal loyalty
perspective because consumer-based brand equity is based on consumer perceptions,
rather than actual behaviour. As such, brand loyalty is defined as the propensity to be
loyal to a focal brand, which is evidenced by the intention to purchase that brand as a
primary choice (Yoo and Donthu, 2001). We now turn to a discussion of the
relationships in Figure 1.

Endorser credibility – brand credibility

A firm can work towards building brand credibility as it is largely driven by the
quality of the information conveyed through the marketing strategies associated with a
brand (Erdem and Swait, 1998). Since endorsement, as a communications tool, will
comprise some of the signal of the endorsed brand, it seems likely that the credibility of
an endorser will subsequently transfer to the brand. For example, film star Cate
Blanchett who is committed to promoting environmental causes is perceived to be
highly trustworthy. Therefore, when Blanchett endorses SK-II skin care products,
consumers’ credibility perceptions of this luxury brand are likely to be positively
 EJM affected. In sum, high endorser credibility should lead to higher brand credibility.
45,6 Brand investment has also been identified as an indicator of brand credibility, as it is
assumed that firms that make large brand investments are more likely to deliver the
promised product (Erdem and Swait, 1998). Hence, simple use of celebrity endorsement
may be associated with a higher level of brand credibility. Based on the preceding
discussion, the following hypothesis is advanced.
886 H1. The credibility of a celebrity endorser will positively impact the credibility of
the endorsed brand.

Brand credibility – consumer-based brand equity

Brand credibility supports consumer-based brand equity. Brand signalling theory
suggests that credibility can build brand equity (Erdem and Swait, 1998). Credible
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brands enjoy lower information-gathering and information-processing costs, and lower

perceived risk (Erdem and Swait, 2004). Furthermore, higher brand credibility can
increase consumers’ perceptions of product quality by influencing their
psychophysical processes whereby objective quality levels are transferred into
perceived, subjective quality levels (Erdem et al., 2002). By favourably affecting
attribute perceptions, information costs and perceived risk, brand credibility increases
the consumer-expected utility of a brand, thus adding consumer value to a brand. So
important is existing brand credibility, that without it, even the most credible endorser
can be expected to do little in developing brand equity. This thinking is similar to the
old adage that “advertising can’t save a poor product”. Based on the preceding
discussion, the following hypothesis is advanced.
H2. The credibility of a brand will positively impact the consumer-based equity of
the endorsed brand.

Endorser credibility and consumer-based brand equity

The direct relationship between endorser credibility and consumer-based brand equity
is explained using the associative network memory model. This model suggests that
celebrity endorsement could support brand recall and recognition, as a celebrity
endorser serves as an additional node in memory and is associated with a brand node.
When there are multiple associations for a node, it is easier to locate this node as there
are several alternative routes to this node in memory (Fiske and Taylor, 1991). A
highly credible endorser will become more strongly associated with the endorsed
brand in a consumer’s mind (Biswas et al., 2006). When a highly credible scientist such
as Ian Frazer, who achieved celebrity status by developing a vaccine for cervical
cancer, endorses community organisation Bicycle Victoria’s “Ride to Work” initiative,
both recall and recognition are likely to be positive for the initiative. Therefore, it is
expected that endorser credibility would support brand recall and recognition.
Managing brand equity largely involves controlling the meanings associated with a
brand in memory (Keller, 1993). Researchers advocate leveraging secondary
associations to strengthen brand equity, whereby a brand can be linked to another
entity such as a celebrity (Keller, 2005). The other entity will possess its own
associations, which should subsequently be transferred to the brand (Petty, 2006). For
instance, endorsement by cricket player Ricky Ponting, who is trusted by consumers in
the Indian market because of his role as the captain of the Australian cricket team, may
 help the brand “Valvoline” by communicating associations such as “high performance” Celebrity
and “reliability” (Indiantelevision.com, 2007). Therefore, when a celebrity endorses a endorsement
brand, consumers may not only associate the celebrity with that brand, but they may
also link celebrity associations to the endorsed brand; thus creating a larger network of
associations. Celebrity endorsement can also affect perceived quality of the brand.
Celebrities can function as extrinsic cues to infer information on product attributes, and
quality, which consequently reduces consumer uncertainty and encourages particular 887
product preference (Dean, 1999).
Past research on classical conditioning has shown how an association with one
stimulus (e.g. celebrity) can benefit another stimulus (e.g. brand) (McSweeney and
Bierley, 1984). Conditioning can be instrumental in transferring an enduring attitude
toward a brand (Grossman and Till, 1998), which can build brand loyalty. The
conditioning principles suggest that celebrity endorsement can impact on brand
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loyalty through affect transfer and inferential belief formation. According to Till and
Nowak (2000) affect transfer refers to the positive evaluation of one entity when it is
associated with another entity in a consumer’s mind, whereas inferential belief
formation refers to changes in an individual’s attitude toward a brand due its
association with another entity. Finally, assuming that credible celebrities are more
strongly associated with the endorsed brand, it is expected that a highly credible
endorser would generate higher levels of brand loyalty. For example, endorsements by
trustworthy Australian entrepreneur and philanthropist Dick Smith for local brands
(e.g. “Temptin” chocolate biscuits) are likely to affect consumers’ loyalty towards these
brands more positively. On the other hand, established brands have their own
credibility and the extent of endorser sway on consumer-based brand equity is relative
to established brand credibility. Based on the preceding discussion, the following
hypotheses are advanced.
H3. The credibility of a celebrity endorser will positively impact the
consumer-based equity of the endorsed brand.
H4. Brand credibility mediates the relationship between endorser credibility and
consumer-based brand equity.

The moderating role of the type of branding employed

The impact of endorser credibility on brand credibility and brand equity is further
expected to vary according to the type of branding employed by the endorsed brand;
that is, depending on whether the endorsed brand is a parent brand or its sub-brand. A
parent brand is an existing brand name in a product category. A sub-brand is a type of
brand extension whereby an existing brand name is combined with a new brand name
to enter a different product category (Keller, 2003). Sub-branding is a common place
category entry strategy.
The moderating role of type of branding is examined in the present research for
several reasons. First, sub-brands were utilised to examine whether celebrity
endorsement has a different impact on less-established brands. Fictitious brands are
not used because it was necessary to measure the brand association dimension of
brand equity; consumers cannot have an established network of associations for a
brand unfamiliar to them. Second, because a sub-brand involves combining an existing
brand name with a new brand name, there is some cognitive distance between a brand
 EJM and its sub-brand in consumers’ minds (Milberg et al., 1997). Hence, consumers may
45,6 accommodate inconsistencies between a brand and its sub-brand by placing the
sub-brand in a sub-category of their existing category knowledge structure for the
parent brand (Kirmani et al., 1999). Because the use of a sub-brand name creates some
level of cognitive distance from the parent brand in consumers’ minds (Milberg et al.,
1997), it can be determined whether celebrity endorsement has a differential impact on
888 these brands with less-established associative networks. However, it is acknowledged
that consumers might still have associations towards the sub-brand because the parent
brand name embedded in the sub-brand’s name might act as a primary frame of
reference for consumers (Aaker and Joachimsthaler, 2000).
In general, parent brand evaluations are expected to be more favourable in
comparison to those of the sub-brand, based on evidence available from the brand
extension literature (See Völckner and Sattler, 2006). Consumers’ brand extension
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evaluations are dependent on a number of parent brand related factors including:

perception of the quality of the parent brand (Aaker and Keller, 1990); degree of
technological similarity between the parent brand and the extension ( Jun et al., 1999);
breadth of the parent brand portfolio (Boush and Loken, 1991); quality consistency
across previous parent brand extensions (Dacin and Smith, 1994); prior parent brand
experience (Swaminathan et al., 2001); relevance of the parent brand associations for
the extension brand (Broniaczyk and Alba, 1994); and knowledge of the parent brand
product class (Smith and Park, 1992).
Although some of the parent brand’s equity could be transferred to the sub-brand
(Milberg et al., 1997), it is still expected that the sub-brand’s associative network and
brand equity would be less established. Because of this less-established associative
network, sub-brands are expected to be more affected by celebrity endorsement.
Furthermore, a previously unendorsed product is likely to be affected more by the
endorsement in comparison to a previously-endorsed product (Walker et al., 1992).
Applying this logic to the present context, sub-brands, which are relatively new to the
market in comparison to their parent brands, are likely to be affected more by celebrity
endorsement. Based on this discussion, the following hypotheses are advanced.
H5. The relationship between endorser credibility and brand credibility varies
according to the type of branding (i.e. parent brand or sub-brand) employed
by the endorsed brand.
H6. The relationship between endorser credibility and consumer-based brand
equity varies according to the type of branding (i.e. parent brand or
sub-brand) employed by the endorsed brand.

Method
Experimental design
The hypothesised relationships were tested using a field experiment in a metropolitan
Australian city. Data were collected using a questionnaire that included a 2 £ 2 £ 2
between-subjects factorial design. Endorser credibility was manipulated at two levels
(high credibility celebrity endorser vs. low credibility celebrity endorser). Type of
branding was manipulated at two levels (parent brand vs. sub-brand). Last, brand
name was a blocking factor, which varied at two levels (high equity vs. low equity).
This is further discussed in the next section. This design resulted in eight different
 conditions, which were implemented through eight corresponding print Celebrity
advertisements. Each participant was randomly assigned to one treatment condition. endorsement
Participants in each group received an advertisement featuring an endorser and a
brand. One print advertisement was attached to each copy of the questionnaire.

Selection of stimuli
The advertisements featured different manipulations, which were determined through 889
multiple phases of pretesting using university student samples as detailed in the
following sub-sections. Plasma television was the selected product category for the
present research. Almost every household in Australia owns at least one television, and
the majority of households have multiple televisions (99.1 per cent ownership in 1996
according to Australian Bureau of Statistics). The growth of flat panel televisions
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(plasma or LCD) has been rapid in Australia over the last few years. In fact, flat screen
television sales over took those of traditional televisions in 2006 (Euromonitor, 2008). In
metropolitan cities flat panel television ownership was between 16 and 19 per cent (e.g.
Sydney 16.7 per cent; Melbourne 18.6 per cent) in 2006 (Synovate, 2006).
Brands. To strengthen external validity, within the selected product category, two
brands of varying levels of brand equity (Panasonic and Akai) were chosen based on
the presence of Panasonic in the top 100 world brands list and Akai’s absence (Kiley
et al., 2006). The selected brands vary on attributes such as familiarity, quality, brand
image and loyalty.
Sub-brands. A universal serial bus (USB) drive was chosen as the sub-brand
product category for several reasons. Past research has shown that perceived fit
between a brand and its extension can be achieved when both brands share key
product attributes (Bridges et al., 2000). For example, perceived fit can be high when
brands in a functional product category are extended to other functional product
categories (Park et al., 1991). A USB drive was considered a plausible extension from
the parent plasma television category. Since a USB drive is a consumer electronic
device with key attributes such as functionality, reliability and durability, it holds
several similarities to a plasma television. A USB drive falls in a product category
different from that of the parent category thereby satisfying the definition of a
sub-brand extension (Keller, 2003). Other home entertainment products were
considered inappropriate as sub-brands because they could have been viewed as
line extensions (whereby a brand is extended to a new product within the same product
category) (Aaker and Keller, 1990). Neither Panasonic nor Akai have previously sold
USB drives as verified from their corporate web sites.
A fictitious brand name was combined with each of the selected brands (Panasonic
and Akai) to create sub-brands names. The fictitious brand name was selected based
on pretesting using a convenience sample of undergraduate students ðn ¼ 35Þ: A
questionnaire assessed their attitude (on a seven-point scale) toward a pool of five
fictitious brand names initially created by postgraduate marketing students. The
results showed participants favoured the name “Nexus” (M ¼ 4.80) for the sub-brand
product. Hence, “Panasonic Nexus” and “Akai Nexus” were selected as sub-brands.
Endorsers. The endorsers featured in the advertisements were selected through
several phases of pretesting using different convenience samples of undergraduate
students. Participants ðn ¼ 20Þ were given three minutes to list celebrities who they
felt were suitable endorsers for both plasma televisions and USB drives. This was to
 EJM ensure congruence between the celebrity endorsers and the endorsed product category
45,6 was achieved. This exercise generated a pool of 243 celebrity names.
From this initial pool, some celebrities were eliminated based on identified control
variables believed to influence the effectiveness of a celebrity endorser. First,
celebrities were eliminated based on gender as gender interactions between endorsers
and target audiences are known to affect consumer perceptions of certain endorser
890 credibility dimensions (e.g. attractiveness) and even consumer purchase intentions
(Baker and Churchill, 1977; Caballero and Pride, 1984). Recent research shows that
male and female celebrities are evaluated by consumers differently. For example, ads
featuring female celebrities are evaluated more favourably than ads featuring male
celebrities (Klaus and Bailey, 2008). Since approximately three-quarters of the total
pool were male, male celebrities were considered more appropriate for endorsing
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plasma televisions and USB drives. Past research suggests that a higher proportion of
male celebrities are associated with functional products (Stafford et al., 2003). Hence,
female celebrities were eliminated.
Second, celebrities who had previously endorsed other products were removed from
this pool, as this is known to affect consumer evaluations of the endorser and the
endorsed brand (Goldsmith et al., 2000). It is more difficult to build an associative link
between a celebrity endorser and a brand when the same endorser is already associated
with other brands (Till, 1998). Also, the use of a celebrity who had endorsed another
product can affect consumers’ perceptions of celebrity-brand congruence, which can
subsequently impact the effectiveness of the endorsement (Kamins and Gupta, 1994).
Last, celebrities were removed if they had received negative publicity. Negative
information can harm consumer perceptions of the endorsed brands (Louie et al., 2001;
Till and Shimp, 1998) or be accepted (Money et al., 2006). Negative information can also
show humanity of the celebrities (Louie and Obermiller, 2002) or be viewed as
uncontrollable (Miciak and Shanklin, 1994). Given the unpredictable nature of negative
information, celebrities with it were not considered for inclusion. The majority of the
remaining celebrities were local celebrities (i.e. Australian television personalities).
Television personalities have been considered appropriate for the endorsement of
consumer electronic goods, such as televisions (Freiden, 1984) and personal computers
(Dean and Biswas, 2001).
The credibility of a reduced set of 14 celebrities was next assessed, by administering
a questionnaire to a convenience sample of undergraduate students ðn ¼ 29Þ: The
questionnaire included celebrity photographs and items measuring each celebrity’s
credibility on a seven-point scale (Ohanian, 1990). Scores on the items were averaged.
Two Australian celebrities were selected based on the pretest results. A popular
television host (Rove McManus) was identified as the high credibility celebrity ðM ¼
5:07Þ and an ex-reality television show participant (Simon Deering) was identified as
the low credibility celebrity ðM ¼ 2:36Þ: Rove McManus is an award-winning media
personality who hosts the variety show Rove in Australia on national television.
McManus also appeared on American television as a guest in the NBC show Tonight
with Jay Leno in 2007 and host of the show The List on ABC in 2008. Simon Deering is
an ex-real estate agent who achieved public recognition for his participation in the
reality television show Big Brother in 2005. Later, he went on to host The Up-Late
Game Show, an interactive late-night game show, on national television. The results of
 a t-test indicate that the two celebrities differ significantly on credibility ðt½25
¼ 12:65; Celebrity
p , 0.001). endorsement
Data collection
The population of interest was consumers aged 18 years and older. A shopping mall
was the sampling frame and the final sample was selected using a systematic sampling
design. Every tenth consumer was asked to participate in the study after a random 891
starting point. A total of eight data collection instruments were developed: one version
for each treatment condition. The questionnaire included questions related to the
credibility of the celebrity endorser and the credibility and consumer-based equity for
the endorsed brand. There were also questions related to covariates and demographics.
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Measures and measurement

Measurement scales have been adapted or adopted from past research and are
summarised here (See Appendix 1). Endorser credibility is a higher-order construct
consisting of three sub-dimensions, attractiveness, expertise and trustworthiness,
according to the source model theory (La Ferle and Choi, 2005; Ohanian, 1990).
Expertise and trustworthiness have generally been considered sub-dimensions of
source credibility (Goldsmith et al., 2000). Expertise refers to the extent to which a
source is perceived to hold valid assertions, whereas trustworthiness refers to the
degree of confidence in the source’s intent to communicate the assertions considered to
be most valid (Hovland et al., 1953). The source-attractiveness model identifies
attractiveness as a dimension of credibility (McGuire, 1958). Physically attractive
communicators have a positive impact on opinion change as well as product
evaluations (Joseph, 1982). Endorser credibility was measured using a 15-item scale
developed by Ohanian (1990), which measures credibility on the dimensions of
attractiveness, expertise and trustworthiness. The three dimensions were measured on
a seven-point semantic differential scale.
Brand credibility encompasses expertise and trustworthiness (Erdem et al., 2006).
That is, a brand is deemed “credible” if consumers perceive this brand as having the
ability (i.e. expertise) and willingness (i.e. trustworthiness) to consistently deliver what
has been promised (Erdem and Swait, 2004, p. 192). Expertise and trustworthiness
were considered sub-dimensions of a higher order brand credibility construct, based on
past research (e.g. Erdem and Swait, 1998). Measures for brand credibility were
sourced from brand signalling research (Erdem and Swait, 2004). Seven items
encompassing expertise and trustworthiness were used for measuring brand
credibility on a seven-point Likert scale, where “1 ¼ Strongly Disagree” and
“7 ¼ Strongly Agree”.
Consumer-based brand equity was treated as a four-dimensional construct
consisting of brand awareness, brand associations, perceived quality and brand
loyalty. All items measuring brand equity were measured on a seven-point Likert scale
anchored by “1 ¼ Strongly Disagree” and “7 ¼ Strongly Agree”. Brand awareness
was measured using a three-item scale adapted from the branding literature (Yoo and
Donthu, 2001). Items used to measure brand associations included measures for brand
identity, brand value and organisational associations. Measures for brand value and
organisational associations were sourced from Aaker (1991). Additional brand
association measures were adapted from the retail branding literature (Pappu and
 EJM Quester, 2006). Perceived quality was measured using items originally suggested by
45,6 Aaker (1991). Finally, brand loyalty was measured using items from the work of Yoo
and Donthu (2001). These measures have been shown to be reliable and valid in several
brand equity studies.
Endorser familiarity, brand familiarity, celebrity-brand congruence and product
knowledge were the covariates included. Past research has shown that these variables
892 affect celebrity endorsement (Silvera and Austad, 2004; Till, 1998). Measures for
endorser familiarity and brand familiarity included three items each, measured on a
seven-point semantic differential scale adopted from Simonin and Ruth (1998).
Celebrity-brand congruence was measured using three items on a seven-point semantic
differential scale adapted from Keller and Aaker (1992). Product knowledge was
measured using three items on a seven-point Likert scale adapted from Cole and
Balasubramanian (1993).
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Analysis and results

The sample ðn ¼ 244Þ contained a higher proportion of females (74.1 per cent) than
males (25.9 per cent). A large percentage of younger consumers, aged 18-29 years,
were also included in the sample (46.5 per cent). Although the sample was skewed
toward women and younger consumers, this is not uncommon in mall-intercept
samples.

Validation of key constructs

Reliability. Established scales are employed in the present research, hence the reliability
of key constructs was examined using conventional methods. The Cronbach’s alpha (a)
of each construct exceeded the suggested cut-off value of 0.70 (See Appendix 1). Table I
presents means, standard deviations and correlations among the variables. Based on
the results of the exploratory factor analysis conducted to examine the factor structure,
one item measuring brand awareness and another measuring brand associations were
trimmed from the final consumer-based brand equity scale because of low
communalities.

Manipulation checks
Significant differences were observed in the credibility levels of the celebrity endorsers
used in the study as indicated by the results of a one-way ANOVA ðF½1; 242
¼ 74:77;
p , 0.01). As expected, the high credibility celebrity (Rove McManus) was considered
more credible (M ¼ 4.77) than the low credibility celebrity (Simon Deering) (M ¼ 3.56).
It can, therefore, be concluded that endorser credibility was adequately manipulated in
the present experiment.
A second ANOVA was conducted with type of endorser (High credibility vs. low
credibility) and type of branding (Parent brands vs. sub-brands) as the independent
variables and endorser-brand congruence (hereafter called congruence) as the
dependent variable. Congruence varied significantly by the type of endorser
ðF½1; 240
¼ 24:96; p , 0.001), with the high credibility celebrity ðM ¼ 4:19Þ being
considered more congruent with the brand in comparison to the low credibility
celebrity ðM ¼ 3:09Þ: Congruence also varied significantly by the type of branding
ðF½1; 240
¼ 10:52; p , 0.01). The celebrities were considered more congruent for
parent brands ðM ¼ 3:99Þ than for sub-brands ðM ¼ 3:28Þ:
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Variables M SD 1 2 3 4 5 6

1. Endorser credibility 4.14 1.24

2. Brand credibility 4.16 1.30 0.26 * *
3. Consumer-based brand equity 3.70 1.29 0.21 * * 0.77 * *
4. Endorser familiarity 4.61 2.37 0.44 * * 0.04 ns 0.12 ns
5. Brand familiarity 3.00 2.08 2 0.01 ns 0.19 * * 0.43 * * 0.13 *
6. Endorser-brand congruence 3.62 1.89 0.50 * * 0.27 * * 0.22 * * 0.19 * * 0.09 ns
7. Product knowledge 3.79 1.51 0.08 ns 0.09 0.14 * 0.09 ns 0.20 * * 2 0.01 ns
Notes: *p , 0.05 (two-tailed); * * p , 0.01 (two-tailed); ns ¼ not significant; n ¼ 244
endorsement
Celebrity

Means, standard
deviations and
correlations of variables
893

Table I.
 EJM The results of a one-way ANOVA indicated significant differences in respondents’
45,6 brand familiarity by the type of branding employed ðF½1; 242
¼ 45:07; p , 0.001). As
expected, parent brands ðM ¼ 3:18Þ were more familiar to the respondents in
comparison to the sub-brands ðM ¼ 2:18Þ: Panasonic ðM ¼ 4:58Þ and Akai ðM ¼ 3:03Þ
were more familiar to the respondents compared to the fictitious sub-brands Panasonic
Nexus ðM ¼ 2:26Þ and Akai Nexus ðM ¼ 2:10Þ:
894

Analysis procedures
The proposed hypotheses were tested using structural equation modelling (SEM). Two
models were tested. Model 1 (Partial mediation model) was used to test H1, H2, H3, H5
and H6. The combined results of Model 1 and Model 2 (Direct effect model) were useful
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in testing H4. The data were checked and there were no major departures from the
assumptions required for use of SEM (e.g. independence of observations, outliers and
multivariate normality). The sample size used ðn ¼ 244Þ is above the threshold of 200
and is adequate for the analysis (Hoelter, 1983). Though the sample sizes used for the
sub-group analyses were smaller than 200, these exceed the cut-off value of 75 and
Hoelter’s critical N-values.
Measures for the key constructs included in the models are assumed to be reflective
in nature consistent with previous research. Hence, a reflective specification of the
first-order dimensions is assumed. By definition, consumer-based brand equity is
“reflected in the dimensions of brand awareness, brand associations, perceived quality
and brand loyalty” (Pappu et al., 2006, p. 698). These four dimensions constitute a
higher-order consumer-based brand equity construct (Pappu et al., 2005). Hence,
consistent with previous research in the area of brand equity (e.g. Yoo and Donthu,
2001) a reflective specification of consumer-based brand equity is appropriate.
Similarly, consistent with previous research in the areas of brand signalling (e.g.
Erdem et al., 2006), and source credibility (e.g. Ohanian, 1990), measures for brand
credibility and endorser credibility are assumed to be reflective in nature.
Endorser attractiveness, expertise and trustworthiness were modelled as observed
independent variables, which measured endorser credibility. Brand expertise and
trustworthiness were modelled as observed independent variables, which measured
brand credibility. Brand awareness, brand associations, perceived quality and brand
loyalty were modelled as observed dependent variables which measured
consumer-based brand equity[1].
Composite variables were created for all observed variables using summated scales.
Successful use of summated scale model was reported in literature (e.g. Raajpoot et al.,
2008). We assessed the significance of the structural path estimates through
bootstrapping approach with 2,000 resamples. The CFI, GFI, NFI and RMSEA values
have been used to assess model fit.
The analysis was first carried out including covariates. Only brand familiarity had
a significant effect on the dependent variables. The inclusion/exclusion of brand
familiarity as a covariate did not make any difference for the structural relationships
among the three main constructs of interest. Hence, covariates were not included in
further analysis.
 Results for the main effects Celebrity
Model 1 (Partial mediation model). Endorser credibility, brand credibility and endorsement
consumer-based brand equity were the latent variables in Model 1. The direct effect of
endorser credibility on brand equity and the indirect effect of endorser credibility via
brand credibility on brand equity are examined in Model 1 (See Figure 1). H1 predicted
that endorser credibility would positively affect brand credibility and H2 predicted
that brand credibility would positively affect brand equity. H3 predicted that endorser 895
credibility would positively influence brand equity. Model 1 examines these
predictions.
Model 1 displayed reasonably good fit to the data (x 2 ½24
¼ 61:23; p , 0.01;
GFI ¼ 0:951; CFI ¼ 0:978; RMSEA ¼ 0:080Þ (See Tables II and III). In Model 1, the
endorser credibility-brand credibility path is positive and statistically significant
(b ¼ 0.29, p , 0.001) supporting H1. H2 is also supported as the brand
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credibility-brand equity path is positive and statistically significant (b ¼ 0.89,

p , 0.001). However, the direct effect of endorser credibility on brand equity was not
significant (b , 0.01, p ¼ 0:969Þ failing to offer support for H3. Model 1 displayed
good fit to the data for both the high credibility endorser ðn ¼ 118Þ and the low
credibility endorser ðn ¼ 126Þ as shown in Tables II and III. In both cases,
relationships were similar to those observed from the analysis of the pooled data.
We examined discriminant validity of the key constructs using the procedure
recommended by Bagozzi et al. (1991) and conducted a series of CFAs. For each pair of
constructs in the measurement model, we tested whether a two-factor model would fit
better than a single factor (constrained) model. Discriminant validity is supported if the
two-factor model provides significantly better fit than the one-factor (constrained)
model. Chi-square differences tests had indicated that, in all cases the fit for the

Pooled data High credibility celebrity Low credibility celebrity

Fit statistics n ¼ 244 n ¼ 118 n ¼ 126

x2(df) 61.23 (24) 38.76 (24) 45.51 (24)

p ,0.001 0.029 0.005
GFI 0.951 0.937 0.933
NFI 0.965 0.953 0.948 Table II.
CFI 0.978 0.981 0.974 SEM results for model 1
RMSEA 0.080 0.072 0.085 (partial mediation): 1

Path Standardised path estimates

EC ! BC 0.29 * * * 0.21 * 0.33 * *

EC ! CBBE 2 0.00 ns 0.86 * * * 0.90 * * *
BC ! CBBE 0.89 * * * 20.01 ns 0.03 ns
R2
BC 0.083 0.045 0.107
CBBE 0.786 0.731 0.835
Table III.
Notes: *p , 0.05; * *p , 0.01; * * *p , 0.001; ns ¼ not significant; EC ¼ Endorser credibility; SEM results for model 1
BC ¼ Brand credibility; CBBE ¼ Consumer-based brand equity (partial mediation): 2
 EJM two-factor model was significantly better than the fit for the single factor (constrained)
45,6 model (See Table IV). These results provide support for discriminant validity.
We checked for common method variance bias using Harmon’s one factor test, as
recommended by Podsakoff and Organ (1986). The results indicated that common
method variance does not pose a problem. Using all of the items of all our latent
variables, we tested a single factor model using CFA procedures. This model displayed
896 very poor fit to the data (x 2 ½27
¼ 532:02; p , 0.001; GFI ¼ 0:682; CFI ¼ 0.706;
RMSEA ¼ 0.277), indicating that there is no general factor that accounts for the
majority of covariance across these variables.

Results for the mediating role of brand credibility

Model 2 (Direct effect model). This model examines the direct effect of endorser
credibility on brand equity, but does not include brand credibility as a mediating
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variable. Model 2 fits the data well (x 2 ½13
¼ 10:21; p ¼ 0:677; GFI ¼ 0.988;
CFI ¼ 1.00; RMSEA , 0.001) and shows that endorser credibility significantly affects
brand equity ðb ¼ 0:21; p , 0.001). H4 predicted that brand credibility would mediate
the relationship between endorser credibility and brand equity. The combined results
of Models 1 and 2 help in examining H4.
Four conditions should be satisfied for the existence of a mediation effect (Baron
and Kenny, 1986):
(1) the predictor variable (endorser credibility) should significantly influence the
mediating variable (brand credibility);
(2) the mediating variable (brand credibility) should significantly influence the
dependent variable (brand equity);
(3) the predictor variable (endorser credibility) should significantly influence the
dependent variable (brand equity); and
(4) the effect of the predictor variable (endorser credibility) on the dependent
variable (brand equity) should no longer be significant (full mediation) or
weaken (partial mediation), after we control for the mediating variable (brand
credibility).

Model 1 (Partial mediation model) meets with the first two conditions (See Tables II
and III). Endorser credibility significantly affects brand credibility, and there is a
significant effect of brand credibility on brand equity. Model 2 shows that endorser
credibility significantly affects brand equity, and provides support for the third
condition. Model 1 also provides support for the fourth condition. Model 1 shows that

Two-factor model One-factor model

Factors x2 df x2 df Dx 2 Ddf

EC & BC 4.93 4 365.31 5 360.48 1*

EC & CBBE 10.21 13 400.88 14 390.67 1*
Table IV. BC & CBBE 44.27 8 135.44 9 91.17 1*
CFA results for model 1 –
evidence of discriminant Notes: *p , 0.001. EC ¼ Endorser credibility; BC ¼ Brand credibility; CBBE ¼ Consumer-based
validity brand equity
 the effect of endorser credibility on brand equity disappears after controlling for the Celebrity
mediating variable brand credibility. Thus, the combined results of Models 1 and 2 fail endorsement
to offer support for a direct effect of endorser credibility on brand equity (H3).
However, these results indicate that brand credibility fully mediates the relationship
between endorser credibility and brand equity and provide support for H4[2].

Results for the moderating role of type of branding 897

Multiple group analysis (MGA) was performed using Model 1 for testing the
moderation relationships proposed in H5 and H6. The MGA revealed (See Tables V
and VI) that the Model 1 was a close fit with the combined data representing the two
groups (Parent brands vs sub-brands).
Endorser credibility-brand credibility. H5 predicted that the type of branding
employed by the endorsed brand (Parent brands vs. Sub-brands) would moderate the
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relationship between endorser credibility and brand credibility. The relationship

between endorser credibility and brand credibility was slightly stronger for the
sub-brands ðb ¼ 0:29; p , 0.001) than for the parent brands (b ¼ 0.26, p , 0.001).
However, these differences were not statistically significant (Dx 2 [1] ¼ 0.04, p ¼ 0.843)
(See Tables V and VI). Thus, H5 was not supported.
Endorser credibility-brand equity. H6 predicted that the type of branding employed
would moderate the relationship between endorser credibility and brand equity. The
MGA reveals that the relationship between endorser credibility and brand equity does
not vary significantly by the type of branding (Dx 2 [1] , 0.01, p ¼ 0:947Þ (See Tables V
and VI). Thus, H6 was not supported.
Brand credibility-brand equity. In addition, the relationship between brand
credibility and brand equity varied by type of branding (Dx 2 ½1
¼ 8:06; p ¼ 0:005Þ

Type of branding
Parent brand Sub-brand Baseline modela
Fit statistics n ¼ 123 n ¼ 121

x 2 ðdfÞ 53.22 (24) 36.38 (24) 89.60 (48)

p ,0.01 0.050 ,0.001
GFI 0.920 0.939 0.929
NFI 0.948 0.952 0.950 Table V.
CFI 0.970 0.983 0.960 MGA results for model 1
RMSEA 0.100 0.066 0.060 (partial mediation): 1

Standardised path estimates

Fixed path Parent brand Sub-brand Dx 2 dfa

EC ! BC 0.26 * 0.29 * 0.04 1 ns

BC ! CBBE 0.92 * * 0.84 * * 8.06 1*
EC ! CBBE , 0.01 ns 20.01 ns ,0.01 1 ns
Notes: *p , 0.01; * *p , 0.001. ns ¼ not significant; EC ¼ Endorser credibility; BC ¼ Brand Table VI.
credibility; CBBE ¼ Consumer-based brand equity. aDx 2 df was calculated on a baseline model where MGA results for model 1
all parameters were freely estimated (partial mediation): 2
 EJM as shown in Tables V and VI. Specifically, the relationship was slightly stronger for the
45,6 parent brands ðb ¼ 0:92; p , 0.001) than for the sub-brands ðb ¼ 0:84; p , 0.001).

Discussion, implications and conclusions

Theoretical implications
The results indicate a direct and positive relationship between endorser credibility and
898 brand credibility, and provided support for H1 (See Tables II and III). This relationship
has not been addressed in previous research: hence, this finding contributes to the
celebrity endorsement and branding research streams.
Results confirming the positive relationship between brand credibility and
consumer-based brand equity (See Tables II and III), hypothesised in H2, support past
research. In particular, the credibility of a brand signal is believed to increase perceived
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quality and decrease information costs and perceived risk for consumers (Erdem and
Swait, 1998). These outcomes are expected to increase the expected utility of a product,
and, in turn, improve brand equity. Furthermore, our results indicate that the relationship
between brand credibility and brand equity varies by the type of branding employed,
with the relationship being slightly stronger for parent brands compared to sub-brands.
H3 predicted a direct and positive relationship between endorser credibility and
consumer-based brand equity; however, there was no support for this relationship.
There are several possible explanations for this result. In this study, participants were
exposed to an advertisement and rated brand equity based on this single exposure.
Positive associations from the celebrity would be transferred to the brand upon
consumers’ exposure to multiple celebrity-brand pairings (Silvera and Austad, 2004).
Some researchers argue that the impact of celebrity endorsement on brand equity is
strengthened over time (Till, 1998). One study on the effect of brand placements on
brand image found that brand placement affected brand image only when participants
were exposed to a brand placement two or more times (Van Reijmersdal et al., 2007).
Therefore, the absence of a relationship between endorser credibility and brand equity
could be attributed to the cross-sectional design of this study. Furthermore, brand
equity is enhanced when all marketing mix elements are focused on the celebrity-brand
pairing (Till, 1998). Endorser credibility might have had a significant influence on
brand equity if participants had received an array of promotional material featuring
this celebrity endorser.
H4 predicted that brand credibility would mediate the relationship between
endorser credibility and consumer-based brand equity. This relationship was
supported. The results suggest that celebrity endorsement does not build brand equity
directly; rather it impacts on a brand’s credibility, which subsequently leads to
improved brand equity. This finding is a valuable contribution to our understanding of
celebrity endorsement, brand credibility and brand equity. The present research offers
empirical support for a previously theorised relationship between endorser credibility
and brand equity. For example, Till (1998) argued that celebrity endorsement impacts
brand equity using principles from associative learning. Seno and Lukas (2007)
approached this relationship from a co-branding perspective, stating that endorser
equity can create equity for the endorsed brand while brand equity can create equity
for the endorser. The results of the present study provide empirical evidence
supporting the indirect impact of endorser credibility on brand equity, despite
arguments in the literature in favour of a direct relationship.
 The present research extends the body of knowledge in the area of source Celebrity
credibility. According to the source credibility theory, an individual’s tendency to endorsement
accept information from a communication source depends on perceived credibility of
that source (Hovland et al., 1953). While previous research has demonstrated that
endorser credibility positively and significantly influences attitude towards the ad,
attitude towards the brand shown in the ad and even purchase intention (Goldsmith
et al., 2000; Lafferty et al., 2002; Lafferty and Goldsmith, 1999), the results of the present 899
research suggest that endorser credibility also influences brand credibility. While the
majority of source credibility literature examines the impact of spokesperson
credibility on ad evaluations and brand evaluations, the present research demonstrates
that intangible assets such as brand equity are also affected by the credibility of the
source via brand credibility.
H5 predicted that the relationship between endorser credibility and brand
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credibility would vary depending on whether the endorsed brand was a parent brand
or sub-brand. H6 predicted that the type of branding employed moderates the
relationship between endorser credibility and consumer-based brand equity. H5 and
H6 were not supported. There are several possible explanations for these results.
Positive evaluations of a parent brand tend to be transferred to extensions as the fit
between the parent brand and its extension improves (Boush and Loken, 1991). In the
present case, the sub-brand category was selected in such a way that it was a viable
extension category and offered a better fit to the parent brand. This better fit might
have lead respondents to evaluate the sub-brands more favourably and similarly to the
parent brand. Moreover, better fitting brand extensions produce more favourable
brand attitudes particularly when limited information is made available to the subjects
about the brands being evaluated (McCarthy et al., 2001). In the present study
respondents had limited information about the brands being evaluated (e.g. brand
name and celebrity endorsement in the ad), which might have led to the attenuation of
the impact of endorsement on respondent brand credibility and brand equity
perceptions. Furthermore, past research has shown that the degree of technological
similarity between a parent brand and its extension affects consumer brand extension
evaluations in such a way that downward extensions are evaluated more favourably
(Jun et al., 1999). The USB product used for the sub-brands is from a low technology
category in comparison to the high technology parent brand of flat panel television.
This can be categorised as a downward extension. Therefore, the impact of endorser
credibility on consumers’ brand credibility and brand equity perceptions for
sub-brands may not have been more pronounced in comparison to parent brands.
Previous research has also shown that when the relevance of a parent brand’s
associations for the extension category is high, consumer attitudes towards the parent
brand are more likely to transfer to the brand extension (Broniaczyk and Alba, 1994).
Applying this logic to the present context, the sub-brand involved is likely to have
shared relevant associations with the parent brand, as both products (television and
USB) are consumer electronics. Hence, consumers might have evaluated the sub-brand
similarly to its parent brand on important brand associations.

Managerial implications
Marketing managers can effectively use the findings of this research given that a
brand is a critical asset for a firm and brand equity is a key strategic concern. The
 EJM present research indicates that celebrity endorsement is an effective tool for building
45,6 brand equity indirectly through building brand credibility and suggests guidelines for
selecting an effective endorser. Based on these findings, a celebrity endorser should be
one who is perceived as credible based on their attractiveness, expertise and
trustworthiness. Moreover, in this research, even a moderately low credibility celebrity
endorser proved to be able to build the brand.
900 The results of the present research show that local celebrities (who mainly operate
in the local market) can be successful in influencing brand credibility and hence, brand
equity for the selected global brands. Past research has shown that high equity
sponsors are more congruent with the high equity sponsored events, compared to
sponsors with low brand equity (Roy and Cornwell, 2004). Using this logic, it could be
expected that global or “high equity” celebrities are more congruent with global or
“high equity” brands. However, the present research shows that local celebrity
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endorsers are sufficient for improving brand credibility and hence equity of global
brands. This finding provides direction for global firms seeking entry into a new
national market by highlighting local celebrity endorsement as a means of localising a
marketing strategy and connecting with consumers, and boosting brand evaluations.
Global firms will need to assess the cost-effectiveness of the use of expensive global
celebrities who can be used in more than one market versus local celebrities who may
not be as expensive but still could be effective in a single national market as our results
demonstrate.

Limitations and future research directions

The limitations of this research were primarily related to the generalisability of the
findings and the cross-sectional nature of the research design. Only male celebrities
were used in the present study; the use of female celebrities might have revealed
different results. Both the selected celebrities included in the present study are
television presenters. Celebrities from other areas such as sports might have yielded
different results. This study used a systematic random sample from a shopping
centre in an Australian state capital city. Therefore, findings may not generalise to
other markets.
Also, this research solely investigated consumers’ responses to print
advertisements, which were all identical in size, colour, graphics, caption length and
arrangement. This was a fundamental aspect of the experimental design, which
minimised extraneous variance. A corresponding shortcoming was that findings were
limited to results from a single exposure. The design used was cross-sectional and
required participants to judge brand credibility and brand equity after only a single
exposure to an advertisement. While the field setting was within a commercial
environment the experimental session may have resulted in a higher level of attention
than advertisements naturally receive.
There are several overarching directions for future research. First, longitudinal
research could be conducted with a within-subjects repeated measures experimental
design. A repeated measures design would allow brand credibility and brand equity to be
measured before and after participants are exposed to experimental treatment.
Furthermore, endorsement could be most effective for building brand equity when it is
used consistently over time (Till, 1998). Longitudinal research allowing a series of
experimental treatments could reveal whether relationships between endorser
 credibility, brand credibility and brand equity would strengthen over time as the Celebrity
associative link between the endorser and brand is reinforced through repeated exposure. endorsement
Future research should investigate the effectiveness of local “only” celebrities
relative to local celebrities known in the global arena. Celebrity endorsement is a
commonly used strategy in Australian advertising, with many successful endorsers
including: film star Nicole Kidman (Chanel No. 5 perfume); former Miss Universe
Jennifer Hawkins (Myer department store); model and film star Megan Gale (David 901
Jones department store); pop singer and entertainer Kylie Minogue (Darling perfume);
and professional golfer Greg Norman (Land Rover automobiles). While the majority of
these names are known to consumers in several countries, a host of local celebrities
whose names would be unfamiliar to consumers outside the country are used
successfully for endorsement. There is some empirical evidence to say that celebrities
who operate at different levels (regional versus national) differ in terms of their
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perceived credibility (Toncar et al., 2007). As previously mentioned, an important

finding of this research is that local celebrity endorsers are sufficient for shifting
perceptions of global brands. However, a key advantage of celebrity endorsement is its
ability to be used across international borders because of the global appeal of a known
celebrity (Erdogan, 1999). Furthermore, using the same celebrity endorser across
geographic markets would allow economies of scale in advertising and consistency in
brand image. For example, Gillette also uses the Tiger Woods, Roger Federer and
Thierry Henry endorsement ad in Australia. It is already expected that a global
celebrity would influence the credibility and equity of the endorsed brand so perhaps a
better question for future research is whether a global celebrity would have an even
stronger impact on brand credibility and brand equity than a local only celebrity.
The framework proposed in this study could be utilised with other product
categories, brands and celebrities to increase the generalisability of the results. We
expect the results to be similar for other non-durable product categories. As previously
mentioned, endorsement by credible celebrities such as cricket player Ricky Ponting
was found to improve brand awareness, and was expected to generate favourable
brand associations for a non-durable product such as automotive lubricating oil
(Valvoline).
Previous research has shown that perceptions of certain dimensions of a celebrity
endorser’s credibility (e.g. trustworthiness and expertise) and even purchase intentions
vary depending on whether the endorsed product (service) is utilitarian or hedonistic
(Stafford et al., 2003). While USB is a utilitarian product, a flat panel television would
be considered more hedonic. Hence, whether or not the effect of endorser credibility on
brand credibility and brand equity would be similar for hedonic and utilitarian
products is another avenue for possible future research.

Notes
1. We have used the terms brand equity and consumer-based brand equity interchangeably
hereafter.
2. We also employed ordinary least squares regression to test the mediating role of brand
credibility. The results are consistent and provide support for the mediating role of brand
credibility. Since ordinary least squares does not account for measurement error, we report
the results based on the SEM for all hypotheses. Furthermore, SEM allows for the
comparison of rival models.
 EJM References
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 Appendix 1 Celebrity
endorsement

Cronbach’s
Construct alpha Source

Endorser credibility 0.88 Ohanian (1990) 907

Attractiveness 0.80
1. Attractive – unattractive
2. Classy – not classy
3. Beautiful – ugly
4. Elegant – plain
5. Sexy – not sexy
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Expertise 0.89
1. Expert – not an expert
2. Experienced – inexperienced
3. Knowledgeable – unknowledgeable
4. Qualified – unqualified
5. Skilled – unskilled
Trustworthiness 0.92
1. Dependable – undependable
2. Honest – dishonest
3. Reliable – unreliable
4. Sincere – insincere
5. Trustworthy – untrustworthy

Brand credibility 0.93 Erdem and Swait (2004)

1. This brand reminds me of someone who’s competent
and knows what he/she is doing
2. This brand has the ability to deliver what it promises
3. This brand delivers what it promises
4. This brand’s product claims are believable
5. Over time, my experiences with this brand have led me
to expect it to keep its promises, no more and no less
6. This brand has a name you can trust
7. This brand doesn’t pretend to be something it isn’t

Consumer-based brand equity 0.79

Brand awareness 0.93 Yoo and Donthu (2001)
1. I am aware of (brand) (product category)
2. I can recognise (brand) (product category)
3. Some characteristics of (brand) (product category) come
to mind quicklya
Brand associations 0.85 Aaker (1991)
1. It is likely that (brand) (product category) offer good
value for money
2. It is likely that (brand) (product category) would be
technically advanced
3. I like (brand) (product category)
4. I trust (brand) as a manufacturer of (product category) Table AI.
5. I would feel proud to own a (brand) (product category)a Measures used in the
(continued) main empirical study
 EJM
Cronbach’s
45,6 Construct alpha Source

Perceived quality 0.91 Yoo and Donthu (2001);

1. It is likely that (brand) (product category) are of very Aaker (1991)
high quality
908 2. It is likely that (brand) (product category) are of very
consistent quality
3. It is likely that (brand) (product category) offer excellent
features
4. It is likely that (brand) (product category) are very
reliable
Brand loyalty 0.84 Yoo and Donthu (2001)
1. I feel loyal to (brand) when considering the purchase of
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a (product category
2. It is likely that (brand) would be my first choice when
considering the purchase of a (product category)
3. I would not buy another brand of (product category) if
(brand) was available at the store
Endorser familiarity 0.93 Simonin and Ruth (1998)
Please tell us how familiar you are with (celebrity name)
shown in this advertisement
1. Not Familiar – very familiar
2. Do not recognise – do recognise
3. Have not heard of before – have heard of before
Brand familiarity 0.91 Simonin and Ruth (1998)
Please tell us how familiar you are with (brand name)
shown in this advertisement
1. Not Familiar – very familiar
2. Do not recognise – do recognise
3. Have not heard of before – have heard of before
Endorser-brand congruence 0.96 Keller and Aaker (1992)
Please tell us how suitable you think the person in this
advertisement is for endorsing (brand name).
1. Bad fit between person and the brand - Good fit
between person and the brand
2. Not logical for the person to endorse - Very logical for
the person to endorse
3. Not appropriate for the person to endorse -Very
appropriate for the person to endorse
Product knowledge 0.76 Cole and
Please tell us how much you know about (product Balasubramanian (1993)
category), by indicating how much you agree/disagree with
each of the following statements (1 ¼ strongly disagree;
7 ¼ strongly agree).
1. I am interested in (product category)
2. Compared to other people I know more about (product
category)
3. My friends consider me an expert on (product category)
Notes: aItems removed based on the results of exploratory factor analysis. All items were measured
Table AI. on seven-point scales
 About the authors Celebrity
Amanda Spry is a PhD Candidate at the University of Melbourne, Australia. She obtained a
Bachelor of Business Management with First Class Honours from the University of Queensland. endorsement
Ravi Pappu is a Senior Lecturer in Marketing at the University of Queensland Business
School, University of Queensland, Australia. His research interests encompass the areas of
country-of-origin effects and brand equity. His work has been published in the Journal of
International Business Studies, European Journal of Marketing, Journal of Marketing Education,
Journal of Retailing and Consumer Services and Journal of Product & Brand Management. Ravi 909
Pappu is the corresponding author and can be contacted at: [email protected]
T. Bettina Cornwell is a Professor of Sports Management at the University of Michigan. Her
research interests encompass the areas of advertising, consumer behaviour and sponsorship. Her
work has been published in several journals including the Journal of Consumer Research,
Psychology & Marketing, Journal of Advertising, Journal of Advertising Research, Journal of the
Academy of Marketing Science, Journal of Business Ethics, International Marketing Review and
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Journal of Business Research.

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