Abstract

The use of a celebrity's stature or social standing to promote a product, service, or problem is known as celebrity endorsement. Is such consumption motivated by genuine compassion or a pleasant glow? In this paper, the researchers created an online experiment that distinguishes between two categories of fan consumption: those who worry seriously about their idols' wealth and wellbeing, and those who love contributing to their idols' income because it gives them a warm glow. Specifically, assessing the effect of reminders regarding celebrities' riches to differentiate between two potential channels: pure altruism toward the celebrity and warm glow. In conclusion, the data indicate negative treatment effects: reminders decrease the willingness to pay and reduce the inclination to spend, hence supporting the altruism channel rather than the pure warm glow channel.

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