Do virtual endorsers have a country-of-origin effect? From the perspective of congruent explanations

Abstract

More and more companies are using virtual endorsers (VEs) for digital marketing and promotion. However, it is unclear whether there is a country-of-origin (COO) effect for VEs. Based on theories related to congruent explanations and four experiments (n = 550 in total), this study found that, first, consumers' willingness to pay for products endorsed by VEs from a different COO does not differ significantly when the COO of the product is not considered. Second, when the COO of both the VE and the product is considered, people's willingness to pay increases significantly when the two COOs are consistent; when they are inconsistent, the effect of domestic VE endorsing foreign products is greater than that of foreign VE endorsing domestic products. Third, the effect of VE–product COO consistency on consumers' willingness to pay is significantly weaker when a less human-like VE is adopted. Finally, the effect of VE–product COO consistency on consumer willingness to pay is mediated first through the parallel mediation of perceived VE image and product value, and then through the sequential mediation of product attitude. This study has important theoretical and practical implications for companies as they design VEs, grasp target markets and develop individualised marketing promotion strategies.