Third-Party Organization Endorsement of Products: An Advertising Cue Affecting Consumer Prepurchase Evaluation of Goods and Services

Abstract

Advertisements containing product endorsements by a third-party organization (TPO), product endorsements by a celebrity, or no endorsement were compared for their ability to affect the dependent variables of perceived product quality, attitude toward the manufacturer, purchase risk, and information value of the ad. In addition, prior brand evaluation and source (endorser) trustworthiness were tested as moderators of the endorsement effect. In two factorial experiments, one for a desktop computer and one for auto insurance, significant main effects were found for endorsement and brand but not for trustworthiness. Brand interacted with endorsement in the quality perception of computers. In both experiments, TPO endorsement was particularly effective in enhancing respondent perceptions of product quality. It is concluded that TPO endorsement may function as an extrinsic quality cue in advertising.