Dilution and Enhancement of Celebrity Brands Through Sequential Movie Releases

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