Brand evaluations in sponsorship versus celebrity endorsement

Abstract

Prior research conceptually assumes that sponsorships might have a stronger impact on brand attitude than do celebrity endorsements primarily due to the more indirect and less commercial intent to persuade. However, empirical evidence is lacking on why and under what conditions this assumed effect of sponsorships actually occurs. This paper empirically analyses potential mediating and moderating drivers of the effect of sponsorships compared with that of celebrity endorsements. The results reveal that higher level of perceived brand authenticity mediates the effect of sponsorships versus celebrity endorsement on brand attitude. Furthermore, the effect of sponsorships on brand authenticity is superior when (a) relative corporate social responsibility (CSR) spending in the industry is low and (b) the corporate reputation of the firm is good.