The Impact of Corporate Credibility and Celebrity Credibility on Consumer Reaction to Advertisements and Brands

Abstract

Advertisers frequently use endorsers or spokespersons as credible sources to influence consumers' attitudes and purchase intentions. Corporate credibility-the reputation of a company for honesty and expertise-is another type of source credibility that can influence consumer reactions to ads and shape brand attitudes. The present study assessed the impact of endorser and corporate credibility on attitude-toward-the-ad, attitudetoward-the-brand, and purchase intentions. We surveyed 152 adult consumers who viewed a fictitious ad for Mobil Oil company. They rated the credibility of the ad's endorser, the credibility of the company, and attitude-toward-the-ad, attitude-toward-the-brand, and purchase intentions. Path analysis confirmed that endorser credibility had its strongest impact on Aad while corporate credibility had its strongest impact on AB. The findings suggest that corporate credibility plays an important role in consumers' reactions to advertisements and brands, independent of the equally important role of endorser credibility.