The effect of brand crises on endorser reputation and endorsement portfolios

Abstract

AbstractWe often hear about a brand dropping a celebrity after the endorser has negative publicity. However, endorsers are not the only ones who are responsible for negative news; many brands also generate negative publicity as well. The growing frequency of brand crises and the demonstrated relationship between brand‐ and endorser‐reputation begs the question: What impact might a severe brand crisis have on a celebrity endorser's reputation and endorsement portfolio? Study 1 finds that negative publicity only impacts the brand's moral reputation if internal locus attributions are made. In turn, moral reputation positively impacts attitudes toward the brand, endorser, and other brands in their endorsement portfolio. Next, Study 2 discovers that endorsers may be perceived to have greater authenticity, leading to more favorable consumer attitudes, if they “drop” the offending brand. Finally, Study 3 finds that “dropping” the offending brand can mitigate negative spillover effects on attitudes toward bystander brands.