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Celebrity endorsements can backfire

By Mike Bastin (China Daily European Weekly) Updated: 2011-08-26 11:41

The Chinese culture also includes loyalty at its core. It was, therefore, no surprise when Nike retained Liu after his disappointing, injury-induced performance at the 2008 Beijing Olympics. Many of Liu's sponsors dropped him, but Nike's move demonstrated much greater insight into the cultural context of brand-building and celebrity endorsements.

There are much stronger relational bonds in China between consumers and celebrities. Patriotism and nostalgia are also far more prominent than in many other cultures.

Even so, if we examine source credibility, research usually suggests that suitability or "fit" occurs when the celebrity endorses a brand with image congruence, or the sharing of a similar image or idea.

This is more likely to be the case when the brand and celebrity are seen to be from the same or similar industries. For example, if they are both related to sports or they both are from the fashion industry or entertainment sector.

Many Chinese advertisers need to reflect carefully on this point, especially when one celebrity endorses a vast amount of brands.

Jackie Chan, for example, an undoubtedly successful kungfu comedic actor, has in recent years promoted an incredibly wide range of products, from international credit cards to air conditioners and even anti-baldness shampoo. Clearly, this creates serious source credibility concerns.

Source credibility is built around the consumer's perception that the celebrity possesses some knowledge and experience related to the product being endorsed and can even be considered some form of an expert. It is difficult to parlay Jackie Chan's immense acting expertise into insight on washing powder and financial services.

Source attractiveness, which often refers to the celebrity's personal appearance and/or personality, may counter any lack of credibility.

Chinese tennis star and current French Open champion Li Na is a good example of excellent source attractiveness. Li possesses good looks and is extremely likeable, humorous and has an infectious personality that makes her a suitable celebrity for products beyond tennis and even sports. Li's current brand endorsement portfolio includes Mercedes, Haagen-Dazs and Rolex.

For brands in China to succeed, rigorous investigative research is needed into the relational bond between possible celebrity endorsers and the brand's intended target market, especially before a celebrity agrees to endorse a product.