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Barbara A. Lafferty
University of South Florida
Ronald E. Goldsmith
Florida State University
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Lafferty and Goldsmith
mers react to them. This topic also contri- technology product (a cell phone) when it
butes to the ongoing assessment of source is perceived to be new. The authors tested
effects by introducing potential moderator specific hypotheses relating to corporate
variables to the model, thereby expanding credibility, endorser attractiveness, consu-
its theoretical scope. The present study mer innovativeness, and perceived product
was conceived to address these issues. newness. The authors manipulated both
Moreover, research on credibility effects corporate credibility and endorser attrac-
generally has focused on advertisements for tiveness and measured consumer innova-
existing products. Less attention has been tiveness and perceived product newness to
paid to credibility effects using advertise- assess their influence on attitudes toward
ments for new products or product modifi- the brand and purchase intentions. Finally,
cations that are perceived as new. The implications, limitations, and directions for
important difference is that with new pro- future research are discussed.
ducts, consumers are faced with the more
demanding task of evaluating a unique or BACKGROUND AND HYPOTHESES
unfamiliar market offering. The majority
of new product introductions are modifica- Corporate Credibility
tions of existing products that are perceived The importance of corporate credibility to
to be different and distinctly better, such as marketing’s success is attracting increased
new models of cars, computers, or cell attention among academics and practi-
phones (Pride and Ferrell, 2000: 272). Prior tioners (eg Dacin and Brown, 2002). While
experience, knowledge, or involvement corporate reputation has long been
with the product category may influence acknowledged as an important manage-
consumer evaluations (eg Bettman and ment concern (Brown and Dacin, 1997),
Sujan, 1987), leading some consumers to the influence of corporate credibility, a
evaluate new products more deeply and dimension of corporate reputation, on atti-
thoughtfully. Thus, this study also exam- tude formation toward advertisements and
ines the influence of perceived newness of the brands has only recently been addressed.
product on brand attitudes and purchase Goldberg and Hartwick (1990) assessed
intent. advertiser reputation and extremity of
Finally, another individual difference advertising claims on advertising effective-
variable that is likely to have a differential ness and concluded that companies with
effect on brand evaluations and purchase positive reputations would be in a better
intent for new products is the degree of position to have their advertising claims
consumer innovativeness. Consumer innova- accepted. Applying the Attitude-Toward-
tiveness may not only influence whether the-Ad Model (eg MacKenzie and Lutz,
consumers adopt a new product, it may 1989), more recent research has found that
also play a role in the perceptions of new- corporate credibility directly influences
ness of the product (Klink and Smith, consumer attitudes toward the brand and
2001). If the product is perceived as new, it purchase intentions (Goldsmith, et al.,
may be placed into the ‘innovation’ cate- 2000a, b; Lafferty and Goldsmith, 1999).
gory and, thus, it will be evaluated accord- Thus, for a new high-technology product,
ingly (Cestre and Darmon, 1998). it is hypothesized that:
The purpose of this study is to assess
how corporate credibility and one aspect of H1: Perceived corporate credibility is positively
endorser credibility (attractiveness) affect related to attitude toward the brand and
how innovative consumers evaluate a high- purchase intentions.
Page 25
Attractiveness to Advertisements for a New High-Technology Product
Page 26
Lafferty and Goldsmith
attitudes toward the brand and ultimately the message arguments in the advertise-
the likelihood that they will buy it. Thus, ment, it is likely that the credibility of the
for a new high-technology product the company would have an influence on their
authors hypothesize: evaluations of the brand and their purchase
intentions. Recent research has indicated
H4: Perceived product newness for both inno- that corporate credibility is more a central
vators and non-innovators is positively processing cue and has a direct effect on
related to attitude toward the brand and attitudes toward the brand and purchase
purchase intentions intentions (Goldsmith, et al., 2000a, b; Laff-
erty and Goldsmith, 1999). Innovative con-
The Interaction of Consumer sumers should be more influenced by the
Innovativeness and Endorser credibility of the company than less-inno-
Attractiveness vative consumers, so there should be an
Given that endorser attractiveness is unli- interaction between consumer innovative-
kely to have an effect on attitudes toward ness and corporate credibility. Thus, for a
the brand and purchase intentions as sug- new high-technology product it is
gested by the match-up hypothesis, it is hypothesized that:
equally unlikely to have an effect on inno-
vative consumers, particularly when a H6: The relationship between consumer inno-
high-technology product is involved. Inno- vativeness, attitude toward the brand, and
vators tend to be more expert in the area purchase intentions is positively affected
in which they are innovators (Chau and by corporate credibility.
Hui, 1998). Therefore, by nature, they are
more apt to use central processing of infor-
mation as proposed by the Elaboration METHOD
Likelihood Model (eg Petty, et al., 1983).
Thus, they will tend to rely on strong mes- Subjects and Design
sage arguments and less on peripheral cues A total of 43 female and 38 male under-
such as endorsers to formulate evaluations graduate students in two marketing
about the brand and whether they would research classes at a large US university
be inclined to purchase the product (Petty, participated in the experiment for extra
et al., 1983; Rogers, 1995). Of the three class credit. Their ages ranged from 20 to
dimensions of endorser credibility, attrac- 38 with a mean age of 22 years. Subjects
tiveness would be least likely to serve as a were randomly assigned to each condition
convincing and salient cue for innovators. in a 262 (high6low corporate credibility;
Thus, for a new high-technology product attractive6unattractive endorser) between-
it is hypothesized that: subjects factorial design. The authors per-
formed the experiment during regular class
H5: The relationship between consumer inno- sessions using a graduate student who was
vativeness, attitude toward the brand, and unaware of the intent of the study so as to
purchase intentions is unaffected by minimize the chances of experimenter bias
endorser attractiveness. (Aronson and Carlsmith, 1968).
Page 27
Attractiveness to Advertisements for a New High-Technology Product
commonly used by the subject population et al., 1994). The two attractive people
(86.4 per cent, either currently owned or were one male and one female and judged
had owned them), and is not gender-speci- to be attractive by two independent
fic. judges. The same criterion was applied to
Four versions of the questionnaire were the two unattractive endorsers. Subjects
prepared. Each booklet began with a set of moved through the questionnaire booklet
general instructions stating that the study at their own pace, taking about 20 to 25
was meant to ‘assess the reactions different minutes to complete all the questions. The
student consumers have to advertisements’. questionnaire also contained a question
Subjects were instructed to respond to asking subjects to state what they thought
each page of the questionnaire and then was the purpose of the experiment. These
proceed without looking back at any pre- responses were consistent with the cover
vious page. The second page contained an story. When they finished, they were
excerpt purportedly from a Wall Street debriefed.
Journal story describing the fictitious com-
pany, Audiotech. A fictitious company Independent Variables
and brand were used to control for prior Corporate credibility (high versus low) was
learning and brand experience. To manip- manipulated by the two Wall Street Journal
ulate corporate credibility, half of these story excerpts. Source attractiveness was
descriptions provided positive information manipulated by the two sets of endorser
such as 70 years of experience, citations for photographs (attractive versus non-attrac-
superior products, and investment in cut- tive). The third independent variable was
ting edge research. The other half of the consumer innovativeness. This was measured
booklets contained similar but negative by asking the subjects to complete the six-
descriptions: 10 years of experience, aver- item Domain Specific Innovativeness Scale
age research and development efforts, (Goldsmith and Hofacker, 1991). Three
financial losses, and average products. The positively worded and three negatively
story excerpt was followed by a rough worded Likert statements (using a five-
magazine advertisement containing photo- point agree/disagree response format)
graphs of a young man and a young assessed how innovative a consumer was
woman identified as long-time cell phone regarding a specific product field, in this
users, their testimonials for the new cell case, cell phones (eg ‘In general, I am
phone, and information about the cell among the last in my circle of friends to
phone touting it as new and revolutionary. purchase a new cell phone’). Common
A short paragraph in the advertisement factor analysis determined that the scale
explained the technological newness of the was unidimensional, and the coefficient
phone and listed five advanced features: alpha was adequate (0.84). The items were
button-free totally voice activated pro- summed so that higher scores represented
gramming and dialing, tri-mode multiple greater cell-phone innovativeness, which
access, palm powered with access to the was positively correlated (0.52) with cell-
internet, an information port allowing phone use.
uploading and downloading of pictures, The fourth independent variable was
business cards, MP3 files, standby time of also measured. This was perceived newness
300 hours and talk time of 20 hours. Half of the cell phone featured in the advertise-
of the advertisements contained pictures of ment. Three seven-point bipolar adjective
two attractive people and half showed pic- scales asked the respondents to describe
tures of two less attractive people (Shavitt, how they felt about the cell phone: ‘like all
Page 28
Lafferty and Goldsmith
Attitude to brand 0.50** –0.03 0.35** 0.06 0.39** 0.35** 0.11 0.34** 0.42**
Purchase intent 0.66** 0.14 0.11 0.11 0.31** 0.26** 0.18* 0.32** 0.24**
Innovativeness 0.08 0.25* –0.13 0.39** 0.01 0.04 0.09 –0.02 0.03
Perceived newness 0.36** 0.17 –0.16 0.09 0.08 0.11 –0.09 0.16 0.25**
Corporate trust 0.59** 0.45** 0.08 0.14 –0.01 0.44** 0.04 0.43** 0.36**
Corporate expertise 0.51** 0.38** 0.05 0.17 –0.04 0.61** 0.03 0.40** 0.38**
Endorser attractiveness 0.16 0.20 0.17 –0.16 0.14 0.05 0.01 0.25** 0.16*
Endorser honesty 0.63** 0.49** 0.04 0.22 0.01 0.61** 0.52** 0.30** 0.61**
Endorser expertise 0.58** 0.35** 0.05 0.33** 0.18 0.52** 0.51** 0.22* 0.79**
Note: Pearson product moment correlations below the diagonal; Kendall’s tau b nonparametric correlations above
diagonal. *Correlation is significant at the 0.05 level (2–tailed). **Correlation is significant at the 0.01 level (2–tailed).
the others — unlike all the others’, ‘inno- rate Credibility Scale (Newell and Gold-
vative — ordinary’, ‘new — old’. smith, 2001). Four of these Likert items
Common factor analysis showed a single measure how trustworthy the company is
factor, and the items were summed so that perceived to be (eg ‘I trust Audiotech,
higher scores represented greater levels of Inc.’), and four items assess how expert the
perceived product newness (alpha = 0.69). company is (eg ‘Audiotech, Inc. is skilled
Descriptive statistics for the consumer at what they do’). Common factor analysis
innovativeness and perceived newness mea- followed by oblique rotation confirmed
sures appear in Table 1. the correct two-factor structure of the scale
with the factors correlated 0.62. Internal
Manipulation Checks and Confounds consistency (assessed by coefficient alpha)
The pages following the advertisement of the two subscales was adequate (trust-
contained the manipulation and confound worthiness = 0.78; expertise = 0.92).
checks. First came the eight-item Corpo- Next came eight semantic differential
Page 29
Attractiveness to Advertisements for a New High-Technology Product
Page 30
Lafferty and Goldsmith
expertise (F(1, 77) = 1.6, p=0.204). Thus, statistically significant differences in their
when endorser attractiveness was manipu- mean scores, verifying that random assign-
lated, it did not influence subject ratings of ment had indeed equalized the treatment
these other two aspects of endorser credibil- groups on these variables (see correlations
ity, so they were not confounded with in Table 1).
attractiveness.
As an additional confound check, the Evaluative Measures
subjects rated the advertisements using the Multiple regression was used to test the
eight bipolar adjective pairs (interesting– hypotheses (cf Klink and Smith, 2001). In
dull; unappealing–appealing; unbelievable– the first analysis, AB served as the depen-
believable; impressive–unimpressive; attrac- dent variable, which was regressed across
tive–unattractive; uninformative–informa- (1) attractive versus unattractive endorser,
tive; clear–confusing; and not eye catching– (2) high versus low corporate credibility,
eye catching) from the Baker and Churchill (3) consumer innovativeness, (4) the per-
(1977) scale. The manipulations should not ceived newness of the advertised cell
have changed subject perceptions of the phone, (5) the interaction of consumer
advertisements along these dimensions. A innovativeness and endorser attractiveness,
MANOVA confirmed that this was the and (6) the interaction of consumer innova-
case. Neither the main effects nor the inter- tiveness and corporate credibility (see Table
actions were statistically significant 2). In the second analysis, PI served as the
(p40.05). Follow-up univariate tests did dependent variable.
show, however, that the high corporate The results shown in Table 2 indicate
credibility group did rate the advertisement that corporate credibility did have a statisti-
as more ‘believable’ (M = 4.8) than the low cally significant effect on AB (Brown and
corporate credibility group did (M = 4.12; Dacin, 1997). Respondents who were
F(1, 77) = 4.8, p=0.031), and this result is exposed to the company with high cred-
consistent with the significant differences in ibility reported more positive evaluations
perceived corporate credibility shown by of the brand than those who were exposed
the manipulation check. The only other sig- to the company with low credibility. For
nificant difference detected by the univari- PI, however, the credibility of the com-
ate tests revealed that the high-credibility pany did not have a significant effect. Thus
group rated the advertisement as more H1 was only partially supported. The
‘attractive’ (M = 4.28) than the low-cred- results also show that endorser attractive-
ibility group did (M = 3.34; F(1, 77) = 6.1, ness had no influence on either AB or PI,
p=0.016), but this could easily be a random thus supporting H2. It appears that when a
result of no practical significance. Thus, the high-technology product such as a cell
manipulations were successful for the sub- phone is being evaluated, the attractiveness
jects’ perceptions of the credibility of the component of endorser credibility is not a
sponsoring corporation and the attractive- factor, which is consistent with the match-
ness of the endorsers in the advertisement, up hypothesis. Conversely, the degree of
but there is little evidence that other percep- consumer innovativeness did have a statisti-
tions of the advertisement or of the endor- cally significant effect on PI, but not on
sers were changed that might have AB. The more innovative consumers were,
influenced the outcome of the experiment. the more likely they would be to buy the
Finally, the ANOVAs were repeated product than less-innovative consumers.
with innovativeness and perceived newness However, innovativeness did not seem to
as dependent variables. There were no influence AB, thus only partially support-
Page 31
Attractiveness to Advertisements for a New High-Technology Product
ing H3. The results also indicated that per- technological products, how innovators or
ceived product newness had a significant first adopters respond to persuasion cues is
effect on both AB and PI, thus supporting important for marketers to understand.
H4. The more unique and innovative the The results of the study show how two
product appeared to be, the more positive cues, corporate credibility and endorser
the attitudes were toward that brand and attractiveness, as well as consumer innova-
the more willing the respondents were to tiveness and perceived product newness,
purchase it. Additionally, it was hypothe- influence consumer AB and PI. In addition,
sized that consumer innovators would not the study provides information on how
be influenced by the attractiveness of the innovative consumers are influenced by
endorser when evaluating a high-technol- corporate credibility and endorser attrac-
ogy product. The results confirmed this tiveness when evaluating a high-technol-
assessment, thus supporting H5. Finally, H6 ogy product.
proposed that innovators would be more While corporate credibility did posi-
influenced by corporate credibility when tively influence AB, consistent with prior
evaluating AB and PI than non-innovators. research, this study suggests that it is not
The results did not support H6. The inter- related to PI. The lack of effect on PI again
action between corporate credibility and may be due to the nature of the product
innovativeness was not significant. presented in the advertisement. The adver-
tisement provided strong message argu-
DISCUSSION ments about the technological newness of
With the frequent introduction of new the product. When making a purchase
Page 32
Lafferty and Goldsmith
decision, especially for a technological pro- Lutz, 1989), other research suggests that
duct, the strength of the information about AB may not mediate all purchase decisions.
the product and its features plays a critical Some consumers may decide what they
role (Petty et al., 1983), perhaps to a greater would buy without completely processing
extent than the credibility of the company. all brand information (Biehal, et al., 1992).
Moreover, the company used in the study Additionally, attitudes toward the adver-
was fictitious, and a limited amount of tisement may lead directly to PI circum-
information was provided. Since the venting AB when affective responses are
respondents had no prior experience with evoked (Cox and Locander, 1987; Batra
any Audiotech products, the corporate and Ray, 1986). It is possible that the tech-
information may have been enough to help nological uniqueness of the product as con-
form positive brand associations, but not veyed in the advertisement would be
enough to persuade the consumer to pur- enough to motivate a purchase by an inno-
chase the brand. That decision most likely vator without much thought to the brand
rests on product attributes. Finally, since itself. Without additional exploration, this
many cell phone companies give away or particular effect seems counterintuitive and
sell inexpensive cell phones to customers, may just be spurious or an artifact.
consumers may like a brand such as Audio- Perceived product newness did make a
tech, but not be motivated to buy it in difference in both AB and PI. The more
anticipation that they would receive one innovative the product appeared to be, the
when signing with a provider. more favorably all consumers felt toward
As suggested by the match-up hypoth- the brand and the more likely they were to
esis, endorser attractiveness does appear to consider purchasing it.
be related to the type of product that is The interaction of consumer innovative-
advertised. It appears that a high-technol- ness and endorser attractiveness was not
ogy product is not attractiveness-related, at significant, as hypothesized, confirming
least among an adult sample, and thus, this that the innovative consumers seemed to
dimension of endorser credibility is not cri- discount the appearance of the endorsers in
tical in brand attitude formation and pur- making their product evaluations to the
chase intentions for consumers. Note that same extent as the non-innovators. This is
the correlations in Table 1 show both AB consistent with the main effect observed in
and PI to be positively related to assessments H2. It would seem that a high-technology
of endorser honesty and expertise, which product with strong attributes negates
were not manipulated experimentally. endorser attractiveness and supports the
While corporate credibility was more match-up hypothesis. However, the inter-
influential in brand attitude formation, action of consumer innovativeness and cor-
consumer innovativeness was more influen- porate credibility also was not significant.
tial in purchase intent. The more innova- There was no difference in the effect of
tive the consumer, the more likely they corporate credibility on innovators and
were to purchase the product. The strength non-innovators. While it seems likely that
of the arguments in the advertisement and innovators would process information
the uniqueness of the cell phone likely more centrally and evaluate corporate
appealed to the innovators’ tendency to try credibility in forming AB and PI, it
new products and be more venturesome. appears that non-innovators also rely
While some research indicates that positive strongly on corporate credibility as a cue.
AB leads to greater purchase intentions (eg Perhaps their lack of expertise with the
Heath and Gaeth, 1994; MacKenzie and product itself makes them look to other
Page 33
Attractiveness to Advertisements for a New High-Technology Product
existing cues to formulate AB and PI. It is it. There are even some indications from
conceivable that the non-innovators used this study that innovators are more driven
credibility because they were not moti- by product attributes than their attitudes
vated enough to process the product’s toward the brand in making a purchase
‘search’ attributes (ie as a peripheral cue), decision. Finally, from a managerial per-
whereas the innovators used credibility spective, the credibility of the company
because they wanted to evaluate the pro- should be maintained and publicized in
duct’s ‘experience’ or ‘credence’ attributes order for positive associations to be formed
(ie as a central cue). Thus, corporate cred- with the new brand. This study lends sup-
ibility is important in consumer reactions port to other research indicating that cor-
to a new high-technology product, but porate credibility plays an important role
perhaps it serves different functions for dif- in the formation of brand attitudes. When
ferent types of consumers. it comes to innovative consumers and a
These findings have important implica- high-technology product, the credibility of
tions for the field of marketing. It is the company plays just as strong a role as it
imperative that new products diffuse does for the non-innovators, even though
quickly in order for companies to recoup their motivations for using this cue may
their upfront expenses in developing these differ.
products. New technological products, in Several limitations qualify the findings.
particular, demand rapid acceptance since These include the specific nature of the
changes in technology move so quickly corporate descriptions, the product stimu-
and companies must continually innovate lus, and the endorsers. The convenience
to stay competitive. Thus, the role that nature of the sample and its relatively small
innovators play in helping to diffuse the size also limit the findings. The results
new product quickly is one in which mar- could also be limited to the specific mea-
keters are very interested. The results from sures used. The careful following of experi-
this study suggest that when promoting a mental protocol and evaluation of potential
new high-technology product, marketers confounds, on the other hand, argue for
should emphasize the trustworthiness and internal validity.
expertise of any endorser used in advertise- Future research on these topics should
ments and not focus on spokesperson focus on replication and systematic explora-
attractiveness. This component of endorser tion of the parameters of the experiment.
credibility appears to be irrelevant when This would include use of different high-
promoting a high-technology product to technology products and additional product
consumers in general as well as to innova- categories, other ways to manipulate corpo-
tors in the product category. rate credibility, and manipulation of the
Additionally, when developing the other two aspects of endorser credibility,
advertising campaign, it is important that honesty and expertise. How these advertis-
the strategy for the advertisements focuses ing features differentially influence consu-
on communicating the uniqueness and mers who themselves differ in their levels of
newness of the product in order to develop innovativeness are questions of great theo-
favorable attitudes toward the brand and retical interest and potential value to mar-
enhance purchase intentions. Innovators, in keters and advertisers of new products.
particular, have the propensity to seek out
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