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Understanding Consumer Responses To Brand Controversies Involving Celebrity Endorsements: A Case Study On American Eagle Brand

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Resumo(s)

Given the evolution of digital platforms, brand controversies significantly shape consumer perceptions and influence key responses such as negative word-of-mouth and boycott intentions. While celebrity endorsements are widely recognized for their positive impact, their specific roles remain underexplored when controversies simultaneously involve both the brand and the endorser. This study investigates how celebrity endorsements influence consumer responses during controversies, especially examining the moderating role of celebrity traits such as attractiveness, expertise and trustworthiness. Using a real-world online questionnaire (n=325) featuring the brand American Eagle and the celebrity Sydney Sweeney, participants assessed the brand’s reputation and celebrity’s traits both before and after exposure to a controversial campaign. Data were analyzed using a paired sample t-tests (SPSS) and structural equation modeling (SmartPLS 4). The results reveal that trustworthiness plays a statistically significant moderating role in the relationship between brand controversy and brand reputation. The findings suggest that when a brand is associated with a controversial issue, consumers respond negatively, showing increased criticism and more unfavorable perceptions. Rather than acting as a buffer, trustworthiness amplified the negative impact of brand controversy on brand reputation, revealing a reversal in the traditional role of endorsers’ credibility. Managerially, endorsement strategies require effective risk management and the establishment of mutual protection and transparent communication between brands and endorsers.

Descrição

Dissertation presented as the partial requirement for obtaining a Master's degree in Data Driven Marketing, specialization in Marketing Intelligence

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Brand Controversy Celebrity Endorsement Brand Reputation Negative Word-ofMouth Boycott

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