Are multiple brand endorsements economically effective?

Purpose: The purpose of this study is to examine the impact of multiple brand celebrity endorsement strategies on firms’ performance and different attributes associated with celebrities on firms’ performance. In this regard, the present study specifically explores the role of celebrity reputation and experience, as well as social media as a promotion platform in influencing the economic effectiveness of multiple brand endorsement strategies, i.e. proportion of brands endorsed in a firms’ brand portfolio. Design/methodology/approach: Study is based on instrumental variable regression analysis approach and is conducted in one of the emerging markets, i.e. India. Findings: The findings indicate that firms’ market valuations increase as its proportion of brands endorsed by celebrities increases. Furthermore, popularity reputation of celebrity also influences market valuation, and relationship is positively moderated by celebrity’s experience. Originality/value: Extant studies have considered one endorsement news of a firm at a time. However, how total proportion of firms’ brand endorsed by celebrities impacts its performance has not been investigated. Furthermore, impact of celebrity traits has been examined only in consumer behavior studies and has been rarely investigated in context of firms’ economic performance.