Dilution and Enhancement of Celebrity Brands Through Sequential Movie Releases

Journal of Marketing Research, Forthcoming

51 Pages Posted: 2 Dec 2010

See all articles by Lan Luo

Lan Luo

University of Southern California

Xinlei Chen

University of British Columbia (UBC) - Sauder School of Business

Jeanie Han

affiliation not provided to SSRN

C.W. Park

University of Southern California - Marshall School of Business

Date Written: September 1, 2009

Abstract

This paper examines the effects of sequential movie releases on the dilution and the enhancement of celebrity brands. The authors use favorability ratings collected over a 12-year period (1993 to 2005) to capture movement in the brand equity of a panel of actors/actresses. A dynamic panel data model is used to investigate how the changes of brand equity are associated with the sequence of movies featuring these actors/actresses, after controlling for the possible influence from these stars’ off-camera activities. The authors also examine the underlying factors that influence the magnitude and the longevity of such effects. In contrast to the findings from existing research in product branding, the authors find evidence supporting the general existence of dilution and enhancement effects on the equity of a celebrity brand through his/her movie appearances. They also find that star favorability erodes substantially over time. Finally, this research offers insights for actors/actresses regarding how to strategically make movie selections for maximizing their brand equity.

Suggested Citation

Luo, Lan and Chen, Xinlei and Han, Jeanie and Park, Choong Whan, Dilution and Enhancement of Celebrity Brands Through Sequential Movie Releases (September 1, 2009). Journal of Marketing Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1717968

Lan Luo (Contact Author)

University of Southern California ( email )

Hoffman Hall 319
Los Angeles, CA 90089-1427
United States

Xinlei Chen

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

Jeanie Han

affiliation not provided to SSRN ( email )

Choong Whan Park

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA California 90089
United States

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