The negative effect of virtual endorsers on brand authenticity and potential remedies

Although more and more brands are partnering with virtual endorsers for marketing, little is known about whether this approach benefits brands. Drawing on Entity-Referent Correspondence (ERC) Framework of VI Authenticity and Meaning Transfer Theory, this study explores the effect of endorser type (human vs. virtual endorser) on consumers' perceptions of brand authenticity. Based on textual analysis and four lab experiments, our results show that consumers perceive brands that are endorsed by virtual endorsers as less authentic than those with human endorsers because they perceive virtual endorsers to be less authentic. We explore the boundary conditions of this finding by testing the moderating roles of aesthetic imperfection and multiple brand endorsements. When endorsers are designed to be aesthetically imperfect, the negative effect of virtual endorsers on brand authenticity is attenuated. When endorsers cover an excessive amount of brands, the negative effect of virtual endorsers on brand authenticity is reversed. This study contributes to the literature on virtual influencers and provides companies with practical guidelines for advertising strategies in the era of the metaverse.