Perception becomes reality (2014)

The use of celebrity endorsement has become very popular in the last few decades. Unfortunately, more and more of these icons in our society have been become involved in some kind of scandal (Fong and Wyer, 2012). This could have a significant impact on consumer attitudes and therefore also on brand equity. Does the effect of this scandal depend on the type of scandal (cheating vs doping) and the type of brand (family vs sport)? And what can a brand do to minimize the potential negative impact of this scandal on consumer attitudes towards the brand? This study focuses on the impact of a scandal, and how a brand can best respond to this scandal in order to increase the effect on consumer attitudes. An experiment was conducted where the participants were exposed to a news feed about the scandal and later about the brand response to this scandal. The findings show that a scandal has a negative impact on consumer attitudes towards the brand, regardless of the type of scandal and type of brand. Furthermore the findings show that attitudes towards the brand can become more positive by responding effectively. When responding, the brand should always keep its core values in mind and when these are inflicted, it is better to discontinue the contract with the celebrity endorser. This study concludes by providing some interesting recommendations for future research.