Select Celebrity Endorsers Who Have Credibility

Marketing agency Zeta Interactive says that positive buzz on the Internet about bicyclist Lance Armstrong dropped dramatically from early July into early August, the drop closely matching in direction, but exceeding in extent, what happened to RadioShack’s Internet buzz during the same time period. RadioShack retained Mr. Armstrong as a celebrity endorser. Zeta Interactive attributes the excessive drop to suspicions Mr. Armstrong used performance-enhancing drugs during races.
     Golfsmith International, who call themselves the world’s largest golf superstore, reports that their sales of Tiger Wood’s signature line of golf clothes are down by over 7% during a time that golf apparel sales overall have climbed about 11%. Golfsmith attributes the drop to Mr. Wood’s failures to bring home the money in PGA Tour tournament wins during that period.
     Guard against endorsers of your store, products, or services having low credibility. Research at University of Massachusetts-Amherst identifies two types of endorser credibility consumers use when making purchase decisions:

• Knowledge credibility comes from expertise in the field. Tiger Wood’s ability to sell golf clothes is tied to his skills as a championship golfer. People who bought and wore the signature line could feel some of that expertise rubbing off the fabric and onto them. If Mr. Woods wasn’t winning, there seemed to be less expertise to rub off. When 64% of recent online posts about Mr. Armstrong include the word “steroids,” that’s a signal Mr. Armstrong’s true expertise is in doubt at the point where the rubber meets the road.
• Reporting credibility comes from consumer trust that the endorser is telling us the whole truth. When Mr. Woods abruptly switches from endorsing Rolex Tudor watches to endorsing Tag Heuer watches, we might lose trust in his recommendations. When 29% of recent online posts about Mr. Armstrong include the word “lie,” “lies,” or “liar,” that’s a signal trust is eroding.

     Research suggests that both types of credibility are greater if the person isn’t endorsing large numbers of other businesses or products. Avoid what the LA Times referred to as the “Jackie Chan Curse.” International film star Chan has endorsed so many retail business—including an auto repair school now accused of being no more than a diploma mill—that at least a few of the retailers were bound to have problems later, making Mr. Chan and the other retailers he endorsed look bad.

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