The Impact of Corporate Credibility and Celebrity Credibility on Consumer Reaction to Advertisements and Brands

TLDR

Advertisers use endorsers or spokespersons as credible sources to influence consumer attitudes and purchase intentions, and corporate credibility—reputation for honesty and expertise—also shapes brand attitudes. This study assessed how endorser and corporate credibility affect attitude toward the ad, attitude toward the brand, and purchase intentions. A survey of 152 adult consumers viewing a fictitious Mobil Oil ad measured endorser credibility, corporate credibility, and the three outcome attitudes and intentions. Path analysis showed endorser credibility most strongly influenced attitude toward the ad, while corporate credibility most strongly influenced attitude toward the brand, indicating both play important but distinct roles.

Abstract

Abstract Abstract Advertisers frequently use endorsers or spokespersons as credible sources to influence consumers' attitudes and purchase intentions. Corporate credibility-the reputation of a company for honesty and expertise-is another type of source credibility that can influence consumer reactions to ads and shape brand attitudes. The present study assessed the impact of endorser and corporate credibility on attitude-toward-the-ad, attitudetoward-the-brand, and purchase intentions. We surveyed 152 adult consumers who viewed a fictitious ad for Mobil Oil company. They rated the credibility of the ad's endorser, the credibility of the company, and attitude-toward-the-ad, attitude-toward-the-brand, and purchase intentions. Path analysis confirmed that endorser credibility had its strongest impact on Aad while corporate credibility had its strongest impact on AB. The findings suggest that corporate credibility plays an important role in consumers' reactions to advertisements and brands, independent of the equally important role of endorser credibility.