Can(’t) touch this: The effect of form realism and product domain in virtual influencer endorsements

• Form realism of virtual influencers positively affects brand outcomes. • Perceived proximal sensory capacities of virtual influencers mediate this effect. • Domain (physical vs. non-physical) of the endorsed products moderates this effect. The prevalence of virtual agents across various domains has led to the emergence of virtual influencers on social media platforms as computer-generated alternatives to human social media influencers. This research sheds light on the factors that influence virtual influencers’ effectiveness in brand endorsements by examining their form realism and its interaction with the product domain. Four experiments show that virtual influencers’ form realism and the domain (physical vs. non-physical) of the products they endorse affect virtual influencers’ effectiveness as brand endorsers. Virtual influencers with high (vs. low) form realism generate a more positive attitude toward the brand. The underlying process driving this effect is the perceived lack of proximal sensory capabilities of virtual influencers with low form realism compared to those with high form realism. Importantly, there are no differences in brand attitudes for high (vs. low) form realism when virtual influencers endorse products belonging to non-physical (vs. physical) domains, where the proximal sensory capabilities of virtual influencers are less prominent. This research contributes to the literature by examining an emerging influencer type within the brand endorsement context. This research also offers practical implications for retailers regarding selecting the right influencer and crafting effective endorsement campaigns.