Does disclosing commercial intention benefit brands? Mediating role of perceived manipulative intent and perceived authenticity in influencer hidden advertising

Purpose Despite sponsorship disclosure regulations, many influencers circumvent regulations by posting hidden advertising in covert formats. However, the impact of influencer hidden advertising sponsorship disclosure (IHASD) on brand attitudes is complex and contradictory. To understand the influence mechanism clearly, we introduced the operational transparency framework and investigated the mediating effects of perceived manipulative intent and perceived authenticity as well as the relationship between them. The conditions under which the mediation effect occurs were also analyzed. Design/methodology/approach The authors conducted three experimental studies. Studies 1 and 2 examined the influence mechanism of sponsorship disclosure (present vs absent) and sponsorship disclosure prominence (explicit vs implicit) of influencer hidden advertising on brand attitudes (i.e. the mediating effect of perceived manipulative intent and perceived authenticity). Study 3 explored the moderating effect of consumers’ thinking styles. Findings The results revealed that sponsorship disclosure and sponsorship disclosure prominence of influencer hidden advertising weakened brand attitudes through perceived manipulative intent while enhancing brand attitudes through perceived authenticity. Perceived authenticity and perceived manipulative intent played a bidirectional chain mediating role. When consumers’ thinking style was experiential, the negative mediating effect of perceived manipulative intent was alleviated and the positive mediating effect of perceived authenticity was enhanced; this effect, though, was the opposite when consumers’ thinking style was rational. Originality/value This research contributes to influencer sponsorship disclosure literature through providing an enhanced comprehensive, in-depth theoretical explanation of the competing mechanisms of sponsorship disclosure effects.