Dilution and Enhancement of Celebrity Brands Through Sequential Movie Releases

Luo, Lan; Chen, Xinlei (Jack); Han, Jeanie; Whan Park, C
December 2010
Journal of Marketing Research (JMR);Dec2010, Vol. 47 Issue 6, p1114
Academic Journal
This article examines the effects of sequential movie releases on the dilution and enhancement of celebrity brands. The authors use favorability ratings collected over a 12-year period (1993-2005) to capture movement in the brand equity of a panel of actors. They use a dynamic panel data model to investigate how changes of brand equity are associated with the sequence of movies featuring these actors, after controlling for the possible influence from the stars' off-camera activities. The authors also examine the underlying factors that influence the magnitude and longevity of such effects. In contrast with findings from existing research in product branding, the authors find evidence that supports the general existence of dilution and enhancement effects on the equity of a celebrity brand through his or her movie appearances. They also find that star favorability erodes substantially over time. Finally, this research offers insights for actors regarding how to make movie selections strategically to maximize their brand equity.


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