Transformations  in
Business & Economics

A SINGLE CELEBRITY TO ENDORSE MULTIPLE BRANDS: THE CO-BRANDING EFFECT BETWEEN ENDORSED BRANDS
Shengbing Tian, Nianqi Deng

ABSTRACT. An example of disconnection between theory and practice in marketing is the view of a single celebrity to endorse multiple brands. In the present research, it is argued that traditional endorsement theory is unsuitable to explain this situation; instead an innovated mode, from the perspective of co-branding is created to interpret the phenomenon of multiple brand endorsements. This paper argues that two brands using the same celebrity as endorser would become celebrity-caused co-branding because meanings and associations can transfer from one brand to the other. The empirical analysis finds that pre-existing attitude and co-branding fit can affect evaluation of celebrity-caused co-branding. There is a negative correlation between pre-existing attitude and co-branding evaluation, and co-branding fit will have an impact on celebrity-caused co-branding evaluation. In marketing practice, companies should consider not only the notability and credibility of celebrities, but also the other brands endorsed by them.
For less-known brands, it is beneficial to choose those celebrities who are endorsing some other well-known brands, but for well-known brands, it is better not to choose those celebrities who are endorsing other less-known brands. Furthermore, the co-branding fit between these endorsed brands should also be considered.

KEYWORDS: celebrity, celebrity-caused co-branding, brand equity.

JEL classification: M31.