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Effect Of Celebrity Endorsements On Consumers

3467 words (14 pages) Essay in Marketing

18/04/17 Marketing Reference this

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Every day we see all sorts of ads on television some are endorsed by celebrities and some use other form of theme to communicate their message to the potential customer and the main motive behind this is to trigger a positive response in turn of increasing sales, people who execute media strategies and make concept have been choosing different approaches as to it should be celebrity endorsed with a vision that star power and influence can develop a strong image to the brand and also give it a high brand equity, increase the credibility and enhance product image, on the other hand some marketers use a different approach using some other source of message delivery in ads going by thinking of their own brand with high self image and brand congruence .Celebrities have become famous for more than being in the movies or on a television show; they appear on the covers of magazines, they endorse products they may or may not use, and they have started to design their own lines of clothing, perfume and accessories. A celebrity is someone who is well known and popular, whereas a celebrity endorser is someone who enjoys public recognition and who uses that recognition on behalf of a consumer good by appearing with it in an advertisement (McCracken, 1989).

Celebrities can make people take notice of what they are endorsing and create an immediate identity or persona for a product (Cooper, 1984). According to Spielman (1981), celebrities increase your odds of getting attention, make the copy more memorable, humanize the company, add glamour to the product, and make it more desirable, credible and trusted. For these reasons advertisers seek out celebrities to promote their products.

Around 20% of all commercials use some sort of celebrity endorsement and 10% of all advertising dollars goes to celebrity endorsements (Bradley, 1996). The three variables that have been identified in celebrity endorsements are 1) physical attractiveness, 2) source credibility (trustworthiness and expertise), and 3) celebrity/brand congruency. No studies have been done using all three mentioned variables in relation to celebrities endorsing brand name apparel. The goal of this study is to examine the wide use of celebrity endorsements in fashion clothing advertisements; to find out how people view these ads by measuring their attitudes toward the ad and the celebrity and their purchase intentions toward the endorsed products using the above three variables.

These variables make the advertisement believable, leading the consumer to form an associative link (preexisting associations or groups of concepts that are related meaningfully to an object) (Till, 1998), and purchase the product, or turn to its competitor. With the market being so cluttered, consumers often will make purchase decisions relying more on the advertised image of the brand, than the physical aspect of the brand (Graeff, 1996). Marketers want to generate interest and differentiate their brand from others, and one way to do that is to tie the brand.s image to a celebrity (Buck, 1993).

Through the endorsement process an associative link is built between the celebrity and the brand; this is how celebrities add meaning, or equity to the product they are endorsing (Till, 1998). Thus, the celebrity endorsers are used to enhance the brand.s equity, which has been defined as .a set of assets such as name, awareness, loyal customers, perceived quality, and associations that are linked to the brand (its name and symbol) and add (or subtract) value to the product or service being offered. ( Aaker, 1991). This brand equity can be achieved through celebrity endorsements in advertising.

Managerial concerns/ Aim:

I will choose firdous Lawn ad to find out the effect of celebrity endorsements on consumer attitudes and purchase intentions .I am not comparing it with any other companies ad because I am examining just the effect of celebrity who is Kareena Kapoor particularly in this ad and her effect on the attitude and purchase intentions of consumers .There is a need for research on the consumer behavior and other managerial concerns are same of the people who have shown interest in this field and have tried to research on this topic.

Meenaghan (1995) identifies advertising as one of the principle ways to educate consumers about products. He points out that advertising serves to achieve a particular personality for a brand by imbuing the brand with specific associations or value-equity. Brand equity in advertising is the additional cash flow achieved by associating a brand with the underlying product or service the premium a consumer would pay for a branded product or service compared to an identical unbranded version of the same product or service. (Aaker & Biel, 1993).

There is great potential for using celebrity endorsers to enhance brand equity, but little empirical research has focused on this widely-used advertising technique (Walker, Langmeyer & Langmeyer, 1992). The majority of celebrity endorsement research has focused on the effectiveness of the celebrity endorsers, but provides little direction in regard to the equity which the celebrity can bring to the endorsed brand (Walker et al., 1992). Many of the celebrity endorser studies consider what effects a celebrity can have on consumers. attitudes toward the brand and/or the ad (Atkin & Block, 1983; Frieden, 1984; Kamins, Brand, Hoeke & Moe, 1989), and/or their intent to purchase the product (Ohanian, 1991; Walker, Langmeyer & Langmeyer, 1992).

In past studies when measuring consumers. response to celebrity endorsements in advertising, findings show that celebrities make advertisements more believable (Kamins et al., 1989), enhance message recall (Friedman & Friedman, 1979), create a positive attitude toward the brand (Kamins et al., 1989), and create a distinct personality for the endorsed brand (McCracken, 1989). Consistently studies have shown that celebrity endorsements are believed to generate a greater likelihood of customers. choosing the endorsed brand (Kahle & Homer, 1985; Kamins et al., 1989; Atkin & Block, 1983; Freiden, 1984; Ohanian, 1991).

Study Objectives

To examine if the celebrity’s physical attractiveness, the source credibility and the celebrity/brand of the endorser in the advertisement will increase the purchase intentions of the endorsed product.

To examine if the celebrity’s physical attractiveness, the source credibility and the celebrity/brand congruency of the endorser will positively influence the consumer’s attitude of the advertisement.

To examine if the celebrity’s physical attractiveness, the source credibility and the celebrity/brand congruency of the endorser will positively influence the consumer’s attitude toward the brand in the advertisement.

Literature Review

Different researches have been conducted in this field and this paper is also focuses on celebrity endorsement and their relationship with the brand, and consumer buying patterns and their preferences.

The article by (Mukherjee, 2009) in this field uses a 20 point model to elaborate the relationship of celebrity endorsements and brand image. It is observed that the celebrity acceptability, attractiveness, credibility and regional appeal factors play an important role for brand image. Sometimes, celebrities are doing multiple endorsements; in that case, success depends on the brand image and positioning. Celebrity is an individual who enjoys public recognition for his or her achievements (Friedman and Friedman, 1979). Endorsements with celebrities get more attention and likewise higher purchase intentions of consumers as compared to the endorsements with typical models and consumers. Successful celebrities have earned a lot of gains for the products and brand owners (Mukherjee, 2009). The study reveals the fact those consumers who desire to be like a celebrity pays more attention to their endorsements and purchasing of those products. A celebrity endorsement creates a significant difference for brands that need to be communicated symbolically. Often consumers use products endorsed by their ideal celebrities. It is to be noted that the amount of impact of celebrity endorsements varies in different culture and type of products being endorsed. Celebrity endorsement is considered as two-edged sword, which if properly used, can bring a lot of positive changes or otherwise affect the company’s image badly (Mukherjee, 2009). The 20 point model includes the factors celebrity credibility, celebrity popularity, celebrity target audience, celebrity physical attractiveness, multiple endorsements etc.

Talking about the value of celebrity endorsements, studies show that the benefits derived for the celebrity endorsements are almost equal to the incurred costs. “The Value Of Celebrity Endorsements: A Stock Market Perspective” (Ding, Molchanov, stork) says that 25 % of of all television commercials are based on celebrity endorsements. In 2003, Nike spent $1.44 billion on celebrity endorsements (CNN Money, 2003). Billions of dollars have been spending of celebrity endorsements every year. Research indicated that endorsements activities of Michael Jordan were worth $10 billion during his career of NBA (Erdogan et al. 2001). Celebrity endorsements also help the firms in the stock market by increasing their value. It is also observed that the companies announcing celebrity endorsements do not experience positive abnormal returns (Ding, Molchanov, Stork). But sometimes celebrity endorsements lead to negative returns due to one or more factors but in that case the costs are rising as compared to the benefits. Further, the celebrity should be used in the advertisement in such a way that the focus should be on the product or brand instead of being on celebrity.

Recent studies have shown that, now, celebrities are not mere endorsers, in fact they have started working as entrepreneurs. In the starting time of a new firm, a firm lacks a lot of resources and wants to make a reputation in the market for at least creating awareness among the consumers/target market, and this is done by hiring a renowned celebrity to endorse the product. Now, celebrities are seen as entrepreneurs playing the roles of initiator, partner and managing the products and firms. This process is called Celebrity Entrepreneurship (Hunter & Davidsson, 2007). For firms, they can easily get the reputation capital and, for celebrities, they have big financial gains and other opportunities, so it is basically balancing the equation. According to a study on resource based view, a firm can have unique selling proposition and competitive advantage, if its resources are valuable, rare and resistant to substitutes (Barney, 1991). The study indicates that celebrity entrepreneurs are more effective than the celebrity endorsers, when talking in terms of new ventures (Hunter & Davidsson, 2007). Sometimes, it also happens due to the high involvement of celebrity endorsers with the firms/companies. If there comes choice between hiring or partnership with celebrity, the smart decision would be making a partnership. As discussed earlier about resource based view, it can change the attitudes of consumers about the brands and advertisement of a product. The study “Celebrity Entrepreneurship: Insights for new venture strategy” (Hunter & Davidsson, 2007) indicates that there is an involvement of celebrity with the company but it can do wonders if there is a genuine liking, passion and excitement for the product which is being endorsed. Celebrity entrepreneurship is more feasible for new ventures as it can reduce its liability of newness and can create awareness among the people.

The study by (Goldsmith, Lafferty & Newell) on corporate and celebrity credibility revealed that endorser credibility as well as corporate credibility influence attitude towards ad, attitude towards brand and also towards purchase intentions. According to this study, advertisers so often use endorsers or spokespersons, being the credible sources, to influence consumer attitudes and purchase intentions. Here, credibility means the level to which the source is believed to possess expertise for a certain communication topic and can give an objective view of the subject (Belch & Belch, 1994). The study further investigated 152 adult consumers through survey who viewed a fictitious ad of Mobil Oil Company and then tested the model of effects of both endorser’s and corporate’s credibility on reaction towards advertising. Corporate credibility is referred to as the level to which consumers actually perceive that a firm is able to design and deliver products and/or services (Keller, 1998). However the study conducted by Goldsmith is found to have some limitations like it used a convenience sample from a single geographic region so the study cannot be generalized to larger population. The sample just viewed a single ad in the copy test so results would be altogether different in the natural settings. In addition, the study used the Mobil oil company. Further studies have many opportunities as they can use probability sampling to obtain external validity. Same study can be applied to packaged goods or services.

According to the study “A model of Advertising format competition: On the use of Celebrities in Ads” (C. Robert Clark, 2009), the companies in the U.S. spends millions of dollars to obtain new talents and high profile personalities to use them for advertising, promotions and other PR campaigns. The study developed such a model of advertising where firms choose both advertising levels and advertising formats. By advertising levels, they actually mean ads which are with or without celebrities. By advertising format, they mean ads which are wither more or less targeted. The study further shows that equilibrium formats refer to those ones which give cost-based explanation for celebrity endorsements which reach to large audiences at lower costs. Equilibrium formats may refer to the ones that coordinate well which are similar to the experiments that show celebrities enhance product value. According to Clark, celebrity endorsements happen for products that have huge customer base or they provide huge returns to consumers. The study puts forth that celebrity endorsements increase either due to the reason that they are a low cost communication medium or due to the fact that celebrity message works better as compared to a non-celebrity message. Clark is of the view that celebrity endorsements will be followed for those products for which coordination is important to consumers and for which there exists a large customer base. The celebrity endorsement can be considered a cost effective strategy to achieve market penetration targets while using a common advertising campaign. The study emphasizes that while talking about celebrity endorser, it is not necessary that it needs to be a person but it could be any other entity or element as well that obtains coordination or presents a cost effective way of ensuring brand recall. Such elements could be paintings by popular artists or famous songs by popular singers. The copyright fees in this case would be the endorsement fees. In short, the Clark’s study also provides the explanation of the reasons due to which well-known elements with high fixed costs arise in markets for established products.

Millions of dollars are spent on the celebrity endorsement projects basically due to the reason that they are considered to play an important role in persuasive information. However, if we observe it is becoming a common trend for different companies to share the celebrities (Ellion 1991; sloan and Freeman 1988). The research by (Tripp, Jensen, Carlson) reveals the fact that consumer’s purchase intentions are affected by different products being endorsed by the same celebrity and frequent exposure of celebrities to consumers. Multiple product endorsements introduce new concerns regarding how different consumers respond to celebrity endorsements. The celebrity endorser carries a meaning from one ad to another (McCracken, 1989). The evidences about the consumers’ reactions to multiple product endorsements are scant. It is a well known fact that multiple product endorsements leads to some definite impressions about a particular celebrity. Just knowing the fact that a particular celebrity endorses multiple products is sufficient to increase consumers’ perceptions of celebrity’s trustworthiness but what is of more importance is that how consumers evaluate the endorser, ad and brand when exposed to multiple product endorsements (Mowen & Brown, 1981; Mowen, Brown, and Schulman; 1979). Tripp, Jensen and Carlson independently manipulated the number of exposures to a celebrity in an altogether different manner from previous studies in order to explore the effect of repeated ad exposure to the multiple product endorsers on consumer responses. The research conducted by Tripp, Jensen and Carlson contributes to the understanding of how multiple product endorsements by celebrities affect consumers’ attitudes and intentions. The study puts forth the findings that celebrity credibility and likeliness and the attitude towards the ad may get satisfied, when as many as four products are endorsed. The study carried by Tripp, Jensen and Carlson got limited due to the limited awareness of product endorsers and the difficulties participants were facing to associate the endorser to the endorsed products. The findings also supported the uniqueness of multiple product assortments from the attribution perspective. However, they also suggest that this uniqueness may not be sufficient to trigger attribution process. In fact, Awareness and attention may activate attribution process. There is still much room for researchers and advertisers to examine the issue of how consumers respond to the number of products a celebrity endorses.

Data Type & Research Period

The data is primary in nature as all the information that is collected is first hand. The primary data is a must for the applied research.

The research will be carried out using questionnaire method by distributing it to the targeted audience. This method has the advantage of getting large amounts of data even in a limited time frame. Also, it incurs low cost simultaneously producing high quality of information.

Information Gathering & sampling Procedure

The survey was conducted using a questionnaire method. The questionnaire was based on the study that was conducted prior to the making of the questionnaire. The key factors related to the intention and attitude of consumers purchase behavior were identified. The questionnaire consisted of 5 independent variables and one dependent variable namely consumers attitude. The questionnaire consisted of basically 8 sections. The questionnaire was designed using the 5 point scale called the likert scale. The options were divided between one to five with two extreme options at both ends for instance 1 being ugly and 5 being beautiful. This made the tabulation of the questionnaire easy.

SAMPLE OF RESEARCH:

The working population is based on convenience sampling of people who are my friends, families and other approachable consumers located in the urban areas of Lahore.

The planned sample size was about 50 respondents. The planned sample will be taken from the various male and female consumers who are approachable.

Sample size consideration

The actual sample size is that of 40. The research study is based on the data that is generated from these 40 questionnaires. The targeted sample size could not be achieved because of the time constraint and secondly the length of the questionnaire was too long and it discouraged the majority of the people are filling them.

Choice of sampling Techniques

The sampling that is used for this study is convenience sampling and snow ball sampling. This methodology was used as the length of the questionnaire was too long and it was really difficult to force people to fill them, that is why convenience sampling technique was used. Convenience sampling refers to the collection of information from the members of the population who are conveniently available to provide. It is most often used for the exploratory phase of the research and perhaps it is the best way to obtain information conveniently and more efficiently (Sekaran, 2006).

Snow ball sampling is a research technique in which initial respondents are selected by probability methods and additional respondents are obtained by the information provided by initial respondents. This research technique has many advantages such as reduced sample size and the reduced costs of data collection (Zikmund, 2009).

Field Work & Respondents Profile

The field work was conducted in natural settings. The sample size consisted of a total of 40 consumers. Since an ad was referred that of Firdous lawn in which Kareena was the celebrity endorser hence the sample largely consisted of women, about 95% with 5% being men. They were mostly female ladies doing their undergrad hence falling in the age bracket of 20-25. Hence these were mostly unmarried women with income bracket of more then 50,000 rupees, thus belonging to the elite and upper middle class, as only they can afford such pricy lawns.

PRINT AD

Firdous Lawn with Kareena Kapoor | Lawn Dress 2010-11

Kareena Kapoor formally called Bebo in Bollywood Industry now enjoying the best part of her professional career. Along acting she is so interested inmodeling and time by time did modeling. Recently Karena Kapor shoot for Pakistani Company and she really appreciated by Pakistani economy.

Firdous Lawn Mills Ltd is a legendary Textile Mills in Pakistan producing variety of Lawn Cloth. Since they are legends in this Market and to keep their repute Firdous Lawn Mills Ltd always introduces very special and coolLawn Designs in beautiful colors. For 2010 summer season, Firdous Lawn Mills advertising team took a bold but powerful step and hires some Indian Models and Actresses for their product advertisement.(she9.blogspot.com)

http://3.bp.blogspot.com/_85zsL9qIXm0/S64x-uysMcI/AAAAAAAAJrM/m-G8p_MRqwM/s1600/Kareena+with+Firdous+Lawn+www.She9.blogspot.com+(26).jpg

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