An Analysis of Endorsement Effects in Affinity Marketing: The Case for Affinity Credit Cards

In recent years, affinity-marketing strategy has been widely used by for-profit organizations, particularly financial institutions, to leverage the goodwill and endorsement of affinity groups to promote their service offerings to group members. However, relatively little attention has been paid to t...

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Bibliographic Details
Published in:Journal of advertising 2006-10, Vol.35 (3), p.103-113
Main Authors: Woo, Ka-shing, Fock, Henry K. Y., Hui, Michael K. M.
Format: Article
Language:English
Subjects:
Advertising
Advertising research
Affinity credit cards
Affinity groups
Bank operations
Business strategies
Business studies
Co-branding
Cognitive models
College students
Credit cards
Customer services
Effects
Endorsements
Evaluation
Financial institutions
Financial services
Frequent flier programs
Hypotheses
Market strategy
Marketing
Marketing research
Modeling
Multilevel models
Nonprofit organizations
Partnering
Product differentiation
Profitability
Profits
Service industry
Studies
Universities
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Summary:In recent years, affinity-marketing strategy has been widely used by for-profit organizations, particularly financial institutions, to leverage the goodwill and endorsement of affinity groups to promote their service offerings to group members. However, relatively little attention has been paid to the underlying factors driving the effectiveness of endorsement as it affects the process by which members make choices. Applying affinity credit cards as the research context, this study examines whether the addition of endorsement effects (i.e., affect transfer effect, perceived quality effect, and cause-related effect) of a positively valued affinity group would have any impact on its members' choice processes as depicted in the traditional hierarchy-of-effects model. The results of this empirical study confirm all the hypotheses, with the exception of affect transfer.
ISSN:0091-3367
1557-7805
DOI:10.2753/JOA0091-3367350307