Beyond the Shores of Reality: The Effect of Virtual Influencers on Luxury Perception and Its Downstream Consequence

ABSTRACT Many marketing practices results show that virtual influencers play an unexpected positive effect in promoting the product luxury perception. However, the current research lacks a deep exploration of consumers' psychological reactions behind this phenomenon. Through six studies, this study reveals that when virtual (vs. human) influencers endorse products, consumers perceive the product as more luxurious, with psychological distance and perceived exclusivity playing a serially mediating role. However, when the origin of virtual influencer is disclosed, the perceived psychological distance of consumers is reduced, which will reduce the luxury perception of products. In addition, this study explores the higher click‐through rates (CTR) on advertisement, willingness to pay (WTP) and purchase intention as the downstream consequence of the effect. In addition, we also explore when facing popular brands, the positive effect of virtual influencers on downstream behaviors is disappeared. The research offers valuable insights and guidance for the research and practice in related fields.