This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness, credibility, extraordinary lifestyle or special skills that are not commonly observed. Thus, it can be said that within a society, celebrities generally differ from the common people and enjoy a high degree of public awareness. According to (Friedman and Friedman 1979), a "celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed". Compared to other endorser types, famous people always attach a greater degree of attention, recall, loyalty and trust.
(McCracken 1989; Silvera and Austad 2004). Explained celebrities "Celebrities are people who enjoy public recognition and who often have distinctive attribute such as attractiveness and trustworthiness".
In recent years the study on celebrity endorsement has established the greater interest. Use of celebrities is to promote the brands are increases but sometimes celebrity endorsement may not effect consumer decision to purchase. Sometimes celebrity endorsement is imperfect and clashing (O'Mahoney and Meenahen, 1997; 1998).
Research has spanned a broad variety of topics such as: value of the CE; matchup between the product/brand and the endorser(Seno and Lucas, 2007; Till and Busler, 2000);positive and contradictory consequences of CE (Till and Shimp, 1998); consumer's association with the endorser (Till and Busler, 2000; Daneshvary and Shwer, 2000); profitability of CE (Agrawal and Kamakura, 1995); CE and buy intentions(Kamins et al., 1989); and celebrity attractiveness, credibility, and trustworthiness (Dean and Biswas,2001; Seno and Lucas, 2007).
More importantly because of extra ordinary exposure of media advertisers face many challenges to attract consumer's attention, the celebrity have the ability to break through this media clutter and create consumer attentions (Miciak and Shanklin, 1994; Charbonneau and Garland, 2005).
Choi, Lee, & Kim (2005) were founded that 59 percent of Korean television commercials having celebrities. In Japan approximately 70 percent TV commercial included celebrities (Kilburn 1998). Celebrities in ads are very frequent in china (Tschang, 2009). Chinese athlete celebrities are highly responsible for rapid growth in sport industry and with the help of massive government support for huge sport development (Yang, Sparks & Li, 2008).
Today's celebrity endorsement is billion dollar industry. Company uses famous celebrities in order to promote their products or services. Because celebrity have more power to influence consumers. Every industry whether it belongs to service, FMCG, Automobile or etc, there is a huge involvement of celebrities in advertisements for capturing consumer attentions and creates ever lasting impression in the minds of customers.
Statement of PROBLEM STATEMENT
Using of celebrities for endorsing the brand is a common practice used by companies to attract the customers. Now a days there is huge involvement of celebrity endorsement on advertising strategies. There are several reasons that an effect consumer perceptions one of them is celebrity endorsement. Celebrity endorsement creates a positive felling among consumers to purchase a particular brand. In this report we want to explore consumer responses towards celebrities and brands. This study attempts to incorporate the effects of Celebrity support on consumers' attitude and perceptions in multiple-ad and multiple-brand environments.
Objective of research
To find out the impact of celebrity endorsement on consumer Perception
How does celebrity endorsement impact the perception of consumers?
How does celebrity endorsement impact the buying behavior of consumers?
PURPOSE OF THE STUDY
The research will provide better understanding about celebrity endorsement, its benefits and provide a clear vision of relationship between endorsement and consumer perception. The purpose of this research is to evaluate the factors which affect the perception and buying criteria of consumers through consideration of celebrity endorsement.
This research will be useful to the manufactures of Soap products as well students of business administration and marketers for identifying the most effective endorser for promotional activities and brand awareness.
As we know that there are several items in skin care products such as soap, lotions creams, face washes but this research will be covering only soap category. This research will be focusing two age groups which including youngsters and adults in Pakistani scenario.
Respondent must watch Television commercial
Only those advertisement are included that have famous celebrities.
Mehdi and James (2008) examine the Causality effects between celebrity endorsement and the intentions to buy. Variables have been considered credibility of the commercial, Attractiveness, experience, similarity, credibility of the endorser, knowledge of the endorser. The technique which was used is regression analysis. The result suggests that that the celebrity factor, by itself, did not have a real effect on the intentions to buy. While the main attributes that influenced the willingness to buy could be complimented by having a celebrity, the celebrity inclusion on conditions that those factors were absent did not further encourage the purchase of the product
Rennae and R. Keith (2000) examine "the association endorsement and consumers intention to purchase". Variables have been considered Purchase intentions as dependent variable and, income, gender, occupation, age, education as independent variables. Binary logit regression was used to asses the results.
Steve, Ian and Pougnet (2010) ''Bend it like Beckham'': the influence of sports celebrities on young adult consumers. Variables have been considered Product switching and complaint behaviour, Positive word of mouth and Brand loyalty as dependent variable and purchase intentions and behaviour as independent variable. Regression analysis was incorporated to test the hypotheses. The result shows that Athlete role model endorsers have a positive influence on young adults' product switching behaviour, complaint behaviour, positive word-of-mouth behaviour and brand loyalty. This confirms the assumption that sports celebrities are important socialization agents and can have significant impact on purchase intentions and behaviors.
Allen D, R. Stephen and Kent (2010) A Comparison of American and Chinese Consumers' Attitudes toward Athlete Celebrity Endorsers. There purpose of this study was to test for differences between Chinese and U.S. consumers' general attitudes towards ACEs (Athlete Celebrity Endorsers). The statistical technique Factor analysis was use to incorporate the results. The results suggest that relative to U.S. consumers, Chinese consumers are considerably more receptive to ads featuring ACEs, especially toward the information contained in these ads.
Barbara A. Lafferty Ronald E. Goldsmith (1998). Examine corporate credibility's role in Consumers' attitudes and purchase intentions when a high versus a low credibility endorser is used in the Ad. The variables used in this study were credibility (Corporate, Endorser), attitude toward ad, attitude toward brand and purchase intentions. The statistical technique Factor analysis and ANOVA was use to incorporate the results. The findings suggested that both type of credibility influence on attitude toward ad and attitude toward brand. But corporate credibility alone appears have significant effect on purchase intentions where as endorser credibility has significant effect on attitude toward ad. The corporate credibility has also greater influence on purchase intentions and attitude toward brand.
Chung kue hsu and Daniella Mcdonald (2002). An examination on multiple celebrity endorsers in advertising. The research examines the advantages of using multiple celebrity endorsement and elaborates the actual use of multiple celebrity endorsers in the milk mustache campaign in usa. The variables were used milk attributes such (calcium, strong bone, nutrient) and celebrity characteristics such as (celebrity type, age, gender). The content analysis was applied to get the results. The result suggests that the mustache milk ads have matched their celebrity gender, age and attribute of milk for appealing to their consumers. The findings also concluded that fit between various celebrities and endorsed product is a important factor for using multiple celebrities in the ads.
Craig A. Martin and Alan J. Bush (2000). Do role models influence teenagers' purchase intentions and behavior? The purpose of the study was to determine which individual or group of individual has greater effect on teenagers purchase intentions and purchase behavior. The variables were taken role model (Direct: Father, mother), various favorite entertainers and favorite athletes) and purchase intentions. Regression analysis was used to test the hypotheses. The result suggested that direct and various role models have significant influence on adolescent purchase behavior. But direct role models such as Father and Mother has greater effect on adolescent purchase intentions or behavior than various role models which includes favorite entertainers and favorite athletes.
Thomas C Boyd and Matthew D shank (2004). Athletes as product endorsers: The effect of gender and product relatedness. The purpose of this study was to examine the effect of gender of the endorser, gender of the consumer and type of the product advertised on perception of consumers on endorser attractiveness, expertise and trustworthiness. The variables has been taken was attractiveness (Attract), trustworthiness (Trust) and expertise (Expert) as a dependent variables. Where as Product type, gender of the consumer and gender of the endorser as independent measures. The findings concluded that irrespective of product type endorser subject rate of the same gender is more trustworthy. Women rate endorsers are more expert when there is a fit between product and endorser. While male rate endorsers are more expert when celebrity and product match-up not exist.
Clinton Amos, Gary Holmes and David Strutton (2008). Exploring the relationship between celebrity endorser effects and advertising effectiveness. The purpose of this research was to examine the relationship between source effect of celebrity endorser and advertising effectiveness. The variables have been taken Celebrity performance, Negative celebrity information, Celebrity credibility, Celebrity expertise, Celebrity trustworthiness, Celebrity familiarity and likeability and Celebrity-product fit. The Kruskal-Wallis nonparametric test is used to identify the most influential celebrity endorser source effects on effectiveness. The results suggest that negative celebrity information extremely affect on advertising campaign. The source credibility model which is a combination of celebrity trustworthiness, expertise, attractiveness are the most influential source effect on brand attitude, attitude toward advertisement and purchase intentions of consumers.
Celebrity endorsement. McCracken (1989) Explained celebrities "Celebrities are people who enjoy public recognition and who often have distinctive attribute such as attractiveness and trustworthiness". Freidman (1979) disagree that celebrities are more efficient than other forms of endorsers. Up until now, research has focused mainly on the celebrity brand similarity (Kamins et al., 1989; Ohanian, 1991; Tripp et al., 1994; Agrawal and Kamakura, 1995); celebrity and brand equity (Till, 1998; Seno and Lucas, 2007); and celebrity distinctiveness such as credibility (Ohanian, 1990; 1991), effectiveness (McCracken, 1989), and celebrity attractiveness (Till and Busler, 2000).
There are two factors in celebrity endorsement 1) Source based factor "The factors which is related by celebrity and only controlled by celebrity it self such as credibility, attractiveness, trustworthiness and expertise. 2) Management based factors which are controlled by management and it's related to marketing that includes Celebrity product congruence, social appeal of celebrity. Tellis (1998) disagree endorser's familiarity is an important component of attractiveness and it is composed of liking, familiarity and similarity. McCracken's (1989) view also suggests that a symbolic "match" should exist between the celebrity image and the brand image in order to effective celebrity endorsement. Consumers with strong self-enhancement goals tend to form self-brand connections to brands used by aspiration groups, that is, groups for which the consumer desires to become a member (Escalas and Bettman 2003). On the other side self-enhancers will be more probable to reject brand associations created by a celebrity endorsement where the celebrity associations are rejected (i.e., a non-aspirational celebrity), compared to consumers who do not have active self enhancement goals. Companies wishes to invest large sums of money to align their brands and themselves with endorsers. These endorsers are seen as dynamic with both likeable and attractive qualities (Atkin and Block, 1983), and companies' plan that these qualities are transferred to products via marcom activities (Langmeyer & Walker, 1991a, McCracken, 1989). Furthermore, because of their recognition, celebrities serve not only to create and sustain attention but also to achieve high recall rates for marcom messages in today's highly cluttered environments (Croft et al, 1996, Friedman and Friedman, 1979).
Gardner and Shuman's (1986) examined that 53 percent of the respondents made a purchase as an effect of sponsorship. Although the sample size was small, chi-square tests incorporated to indicate the differences in purchasing behavior by education and age. A bigger percentage of respondents more than 50 years of age and older and those with an income level of $50,000 or more were likely to buy a brand because of sponsorship than younger individuals and those with lower income levels.
Traditional celebrity endorsements are as well established as the notion of celebrity itself."(Anonymous, 2007).Celebrities inspiration on buyers seems to be bigger than ever before. (Alperstein 1991). When utilized competently celebrity endorsers have the promise of assisting a important function in enhancing a brand's comparable position and brand equity. (Till 1998).Schikel (1985) There is a strong influence of celebrities on everyday considering and living. Defined as 'intimacy at a distance', it is seen that persons have a inclination to pattern illusions of an interpersonal connection with celebrities. (Horton &Wohl 1956).
Today celebrity endorsement is being seen more and more as an integral part of IMC (integrated marketing communication). Hamish and Pringle (2004) explain 3 main factors present in the market today that in principal justifies the celebrity endorsement validity as a promotional strategy. The first factors the increasing opportunity of consumer and brand interaction. Second factor is the "era of consent" situation present today where consumers have big control over the messages they receive. And lastly the third factor is the increasing fragmentation of media and clutter of commercial communication. (Temperley and Tangen, 2006). Pappas (1999) examined the value of star power in an endorsement and pointed towards how a well-formulated advertising strategy helped celebrities to convert their star influence into brand equity.
Companies commonly use spokespersons to deliver their advertising message and persuade consumers to purchase their brands. A extensively used and very popular type of spokesperson is the celebrity endorser (Tom et al., 1992). According to Agrawal and Kamakura (1995) It is celebrities that make the advertisements credible and improve the message in the minds of the consumers. Furthermore, celebrities increase company's advertising awareness and creating a affirmative feeling towards the brand. Thus use of celebrities in a company's advertising strategy is likely to have a positive impact on the consumers purchase decision and brand perception.
One of the main cause behind the popularization of celebrity used in advertisements is the company's trust that the message which is delivered by famous personality will achieve a greater degree of attention and recall (Ohanian, 1991). This only happens when there is an suitable connection between the product endorsed and celebrity or when the celebrityâ€Ÿs represents of some feature of product endorsed.
Celebrity endorsement contract are for a long term relationship, therefore because of this long term relationship the celebrity and the brand can affect the audience and have an impact on the consumers. For example Kate Moss and brand H&M, after Kate Moss was pictured taking drugs in Daily Mirror newspaper, a lot of brands she endorsed such as Chanel, H&M cancelled their campaigns and contracts with her (Shimp 2003). In order not to generate negative publicity towards the brand, from the behavior of the celebrity, companies pull back from the celebrity contracts and engage in reestablishing themselves.
Kahle & Homer (1985) mentioned in his study that, purchase intention participants are easily influenced by an attractive celebrity endorser than unattractive celebrity endorser. Finding from Debevec and Kernan (1984) study showed that male consumers are more easily influenced by attractive female endorser than attractive male endorsers. Furthermore Baker and Churchill (1977) study found that unexpected interaction among female models, product type and intentions to purchase products among male subjects. For example when the product endorsed is a perfume; males reacted optimistically to an attractive female model.
According to Gebhardt (2007), within the AIDA model, the goal of advertising changes based on the individual consumers' stage in the continuum. Since different consumers will be at different stages along the continuum, advertisers must target ads at the various stages. Thus, advertisers should be cognizant of how their target market is distributed across the continuum stages.
Block (1983) suggests that celebrity advertising is valuable because celebrities are viewed as dynamic and contains both likable and attractive qualities. This has been taken to advertisers. Only one need for print advertising or to watch television to determine this truth.
(Amos et al. 2008). Some properties like, personal attractiveness, likeability and integrity of celebrity endorser influence the aptitude of one individual to influence other individual. Integrity of source is mentioned to recognizing of communicator's affirmative properties which influences acceptance of a message by the receiver (Ohanian, 1990). This comprises of two major proportions of know-how and trustworthiness. Source know-how mentions to the stage which a communicator is seen to be a source of justifiable claim (Roozen, 2008). Source trustworthiness mentions to authenticity and reliability of the spokesperson (Khatri, 2006). (Solomon, 2002). Attractiveness of the source is the character, likeability and likeness of endorsers to the receiver, therefore to the seen communal standards of the source. Physical attractiveness of the source encompass being appealing, attractive, dignified and appealing. According to the investigations in this ground, know-how dimension is more important than personal attractiveness for equivalent of a symbol with a appropriate endorser (Brian and Michael, 1998).
(Goldsmith et al. 2000). Celebrities are normally viewed by consumers as credible sources of information about the firm and product they endorse. The literature exploring celebrity endorsements has generally employed one of two foundational source models: (1) the source-credibility model, and (2) the source attractiveness model (Erdogan 1999). Source credibility can be defined as 'a communicator's positive characteristics that affect the receiver's acceptance of a message' (Ohanian 1990, p. 41). The source-credibility model analyses the main factors that leads to the perceived credibility of the communicator (Hovland et al. 1953). The model contends that the effectiveness of a message depends upon the perceived level of expertise and trustworthiness associated with an endorser or communicator (Erdogan 1999). When considered jointly, expertise and trustworthiness are presumed to embody the source credibility construct (Ohanian 1990).
Spokes person credibility has achieved considerable attention in the academic literature (Aroson, Turner and Carl smith 1963; Bergin 1962; Goldberg and Hartwick 1990).
In this context credibility refers to the extent to which source is perceived as possessing expertise essential to the communication topic and can be trusted to give an objective belief on the subject Belch and Belch 1994).
Kahle and Homer (1985) examined that how physical attractiveness of the celebrity endorser influences attitudes and buying intentions toward product that is advertised. It is argued that an attractive celebrity increases the willingness to buy. Attractiveness is based on whether the endorser is considered rather good-looking and if she/he conveys self-confidence (Kahle and Homer, 1985). Till and Busler (1998) find that attractiveness of the celebrity affects attitudes of consumers toward a brand. Further, Physical attractiveness of the celebrity has been considered as the important factor to elucidate the Match-up theory (Kahle and Homer, 1995; Kamins, 1990). Lastly, the idea of a trustworthy model, and not just a trustworthy message, may be seen to helpful increase the consumers intentions to purchase.
Celebrity endorsement literature has indicated that attractiveness is a main indicator of effectiveness (Chao et al. 2005) however, the attractiveness construct is multi-dimensional in nature. Far from just encompassing aspects of physical attractiveness, which themselves are rather subjective, attractiveness also entails the other characteristics such as personality and athletic ability (Erdogan 1999).
Some authors suggest that celebrities that are physically attractive consider a predictor of advertising effectiveness (Till & Busler 2000). Certainly, physically attractive celebrities are usually viewed more favourably on various personality traits than their less attractive counterparts (Kahle and Homer 1985; Eagly et al. 1991). Joseph (1982) studied' attractiveness of endorsers beyond the level of personality traits. Specifically, he examined the impact of attractiveness of endorser on changing opinion, product assessment, and other measures of effectiveness. The findings suggest that attractive endorser's create more positive impact on the products they endorse than the endorsers which are less attractive. Baker and Churchill (1977), found that attractiveness was effective in escalating positive advertisement evaluations, it was not effective in producing stronger intentions to purchase. Likewise, Caballero et al. (1989) examined that attractiveness of endorser had no effect on advertising effectiveness. Within the wider context of celebrity endorsement, endorser's attractiveness is certainly a relevant construct. However, the nature and scope of the attractiveness construct remains doubtful, and therefore appears worthy of extra attention.
Physical appearance or attractiveness of the celebrity builds a positive feelings towards a spokesperson and changes beliefs in some situation (Chaiken 1979)
Forkan (1980) and Kamins (1990) disagree that the messages conveyed by the celebrity image should be matched with the message of the product. If endorser not matched then, consumers will be less likely to buy the product (cf. Till and Busler, 1998).
A study by Galloway and Kinnear (2001) was conducted to determine the impact of MP3s on sales of prerecorded music, and to determine whether this relatively new distribution mechanism could possibly provide reasonable profits. The consequences of the study showed that 47% of the respondents owned more that fifty MP3 files and that MP3s are very popular among university students. Finally, personal characteristics of age and income are stronger predictors of new-product ownership in the consumer electronics category than innate consumer innovativeness (Bayus and Mason, 2003).
The celebrity/product congruence, also call the match-up hypothesis, refers to the the match between the celebrity endorser and the product that is endorsed (Till & Busler 2000). Celebrity/product match up is the main or key determinant of effectiveness of endorsement (e.g. Friedman et al. 1978, Friedman & Friedman 1979, Kahle & Homer 1985, Kamins 1989, 1990, Kamins & Gupta 1994; Erdogan & Baker 2000; Till & Busler 2000; Erdogan et al. 2001; Batra & Homer 2004). Celebrity effectiveness does differ across different types of product. Friedman and Friedman (1979) concluded that use of better celebrity/product fit, as perceived by consumers the higher the level of endorsement effectiveness. Till and Busler (2000) found that celebrity/product fit was effective for only certain measures of effectiveness such as brand attitude, but not for the other measures such as intentions to buy. Regardless of the impact celebrity/product fit has on effectiveness, the absolute weight of the existing literature suggests that the phenomenon should play an important role in celebrity endorser effectiveness (Till & Busler 2000).
The use of spokesperson has become famous in today's advertising (Agarwal and Kamakura 1995) and are mostly used to create attention towards brand but usually must be matched with the characteristics of brand to be effective (kamins and gupta 1994; Till 1998; Tom 1992).
CELEBRITY VERSUS NON CELEBRITY ENDORSEMENT EFFECTIVENESS
(Seno and Lukas 2007). In marketing programs the use of celebrity endorsement is not an accident. Many researches found that as compared to other endorsement genre for example manager of a company, typical consumer and professional expert, all of them celebrities are the most effective.
The celebrity endorsers were very effective for developing a connection between celebrity and product itself in context of paradigm of classical conditioning. This argument based on the fact companies had more power of controlling over created endorsers and they made their characters in that manner that the celebrity are matched with the target audience and brand on the other hand celebrities create a persona them self on which companies lacked over them. Tom et al (1992).
In cognitive process differences were found. But there was no statically significant differences were found in intention to purchase and advertising the endorsed brand in celebrity and non celebrity context (Mehta 1994). On the other hand (Atkin and block 1983) petty et. al 1983 examined that in comparison of non celebrity endorser, the celebrity endorser create more positive attitude towards advertising and intentions to purchase greatly.
McCracken (1989) founded that the use of celebrity endorsement for a effective way of transferring meaning towards brand and it is believed celebrity endorser bring their own illustrative meaning to process of endorsement and this cultural meaning residing in the celebrity passed in the product and which in turn is passed on the consumers. McCracken (1989) disagree that there is lays dissimilarity between a famous celebrity and unknown person. It is assumed that celebrities have the capability for transferring meaning in extra depth and power and also offers a range of personality and lifestyle which cannot be matched by unknown person. In similar he continues that most heavily stereotype celebrity create not just one meaning but also develop multiple meanings which are interconnected and indicating that celebrity endorsers are more effective and power full than non celebrity endorsers.
In perspective of company reports and many academic researches it is safe to argue that for generating desirable income celebrities are more effective than non celebrities endorsers. Erdogan (1999)
Qualitative Research and Quantitative Research
Qualitative and quantitative research methods have been represented as two fundamentally different paradigms through which researchers conduct their study. Through, being essentially the two methods to collect data a clear understanding of these two concepts is needed. Each study has its limitation of scope and depth.
Why Qualitative Approach for this Research?
In context to the research topic of this study, a qualitative method of enquiry is justified as the views on the perception of the Pakistani consumers about celebrity endorsement are highly subjective and difficult to measure by the researcher.
Method of Data Collection Data collection is the process of collecting data material from the respondents through various ways. In this thesis primary research data is collected through a qualitative research style using interviews.
In the process of reviewing the literature on celebrity endorsement a gap was detected in viewing these issues, from the perspective of young Pakistani customers. In an attempt to bridge this gap, qualitative interviews which were based on an open-ended interview guide that was well designed to collect first hand information.
There are 7 participants recruited for conducting interview consisted of people of Karachi origin. This is because of the central focus of the thesis is the Pakistani soap market. The participants used as research subjects were youngsters ranging 18-24 and adults ranging from the age of 26- 32 years in age.