Facilitating Endorsement Efficacy: The Interplay of Parasocial Interaction, Product Placement, and Influencer Type

Social media platforms fostering a closer and more intimate bond between celebrities and their fan bases has opened up diverse avenues for product placement. In light of this, this study endeavors to explore the profound influence of parasocial interaction (PSI) and product placement on the effectiveness of celebrity endorsement within the social media landscape. The results derived from an online experiment unveil the positive impact of parasocial interaction on consumers’ attitudes and purchase intention. Notably, the potency of PSI is enhanced when product placement is prominent. The results also uncover the crucial role of brand recall as a mediator in the relationship between parasocial interaction and endorsement outcomes. These findings shed light on the underlying mechanisms governing the influence of parasocial interaction and social media celebrity types in the realm of social media endorsement while also providing valuable insights into the moderating role of product placement. From a practical standpoint, the results underscore the critical importance of carefully selecting celebrity endorsers and strategically positioning products. Armed with this knowledge, marketers and advertisers can better explore the complex landscape of social media endorsement with greater efficacy and precision.