Virtual influencers and corporate reputation: from marketing game to empirical analysis

Purpose This study delves into how corporations make decisions about influencer marketing. Specifically, it examines the differences between human influencers, who carry the risk of scandals, and virtual influencers, a new and unpredictable realm, regarding their integration with social media platforms. Design/methodology/approach Using game theory and empirical data, the study explores crucial factors in influencer marketing, including influencer quality, reputation repair costs and the probability of R&D failures. Findings This study suggests that companies favor human influencers when the risk of scandal is low. However, competing companies switch to virtual influencers at different intervals as this risk increases. The costs, likelihood of scandals and competition intensity all play a role in a company's decision-making regarding technology management. Additionally, a higher chance of R&D failure can motivate a company to invest more in R&D to gain a competitive advantage over rivals that may suffer failures. Research implications/implications This study provides insights into how corporations manage social media influencer marketing in the digital age. It contributes to marketing theory and technology management decisions by offering a fresh perspective on the relationship between corporate reputation and influencer marketing strategy. Originality/value This study offers valuable perspectives into a relatively uncharted area of marketing strategy. It employs game theory and empirical analysis to introduce a fresh method of comprehending the dynamics of influencer marketing, its impact on corporate reputation management and its interaction with social media.