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Richard Nixon and his advisors were aware of the inherent economic problems of wage–price controls: suppressed inflation, shortages, biases, avoidance, cheating, etc. Nixon's secret White House tapes reveal that Nixon disliked controls, never expecting them to extinguish inflation but only agreed to them to deflect attention from devaluation of the dollar. The political popularity of his controls changed his view of them, even producing a second freeze on retail prices in 1973. Importantly, the tapes reveal that Nixon pushed for inflationary monetary policies long after his 1972 reelection. Federal Reserve Chair, Arthur Burns, seemingly capitulated to Nixon's pressures by restraining interest rate increases in Federal Open Market Committee meetings. Politics won out over economics. Nixon and his advisors avoided addressing the reason for increasing inflation – the monetary expansion that Nixon pressured Arthur Burns to pursue in support of his 1972 re-election – an expansion that continued long after the election. This tragic policy failure was avoidable had the administration focused on controlling the true cause of the inflation.

This study aims to understand the relationship among the anthropomorphic features, perceived authenticity on customer engagement and electronic word of mouth using the integration of realism and trust theory in the context of virtual influencers (VI). This research also investigates the moderation of brand familiarity on both focal aspects of trust (cognitive and affective), anthropomorphic cues and perceived authenticity.

A mall-intercept survey approach was used to collect the responses using a structured survey from 377 respondents from India. The proposed model was tested using structural equation modelling.

The findings indicate that physical and cognitive anthropomorphic features and perceived authenticity influence cognitive trust. However, affective trust is only influenced by perceived authenticity. Apart from this, higher levels of trust in VI contribute towards higher customer engagement and lead to sharing electronic word of mouth. Finally, brand familiarity moderates the relationship between emotional cues and affective trust.

The popularity of VI is driving companies to redesign their marketing strategies. Due to the limitations of human influencers, companies are allocating budgets for VI-based marketing strategies. However, it is still unclear how consumers perceive VI as a brand endorser and what would be its implications. This study suggests that consumers are looking for anthropomorphic cues such as physical, cognitive and emotional cues of humanness in the VI, along with authentic content shared through them to instil their trust. Once the trust is built, consumers will be engaged and say positive things about VI.

This study fills the gap by examining how anthropomorphic features and perceived authenticity contributed to both dimensions of trust (cognitive and affective), further enhancing customer engagement and electronic word of mouth. This research also examined the moderation of brand familiarity on the relationship between trust and its antecedents.