Chapter Two : Literature Review

This bond that is created between the viewer and a celebrity helps understand the effectiveness that endorsements have where marketers have failed. The celebrity builds character in the eyes of the public and that character carries on into the product he is endorsing, and even though a part of the persuasion has to exist in the product itself, but a celebrity uses his status and the character he has built to gain credibility and likeability among the target audience. This character the celebrity transfers to the product is known as the “meaning “(2). The transfer of the meaning to the product goes through three stages. The first stage is in finding the celebrity with the desired meaning that they want to carry to the product this requires casting from the wide world of celebrity endorsers. The second stage is choosing which celebrity embodies the meaning the marketing campaign requires for the product, this stage is subject to expense restraints and availability. After deciding on an endorser stage three is the most complicated stage as in this step the endorser has to be able to transfer that meaning into the product, they have to make this meaning “available to the consumer in a material form”(2), this stage allows the consumer to accept the meaning they are given and accept the product and you use is a tool to build their own character. These three steps not only

It is known to be true that the best endorsements achieve a deriving ideas, style and taste between the product and the celebrity. Giving a brand an appearance is more than just a marketing strategy to increase sales; it is a decision that can change the outcome of the brand for the

According to Holt (2004), a brand can be defined as a term, name or a design that distinguishes product or service of one manufacturer from others. Brands are normally utilized in advertising, business and marketing. In accounting terms, brand is an intangible asset which is present within every organization. It is most valuable asset that is outlined in the balance sheet of a company. Brands owners need to effectively manage their brands in order to enhance shareholder value. Brand valuation is an important technique that associates money with a brand. Effective branding often results into high sales volumes of a particular product. A customer who prefers a brand is more likely to choose other products which are offered by the same brand. Brand can be stated as a personality that facilitates identification of a company, product or service. It even encompasses relation with other constituents like customers, partners, investors, staff, etc. Individuals distinguish psychological aspect of a brand from experimental

Celebrity endorsement is possibly the most successful form of advertising. The fact that a celebrity approves of a product is often enough for people to get on board. Advertisements create a false life or image. Chiat says in his article: “Advertising--including movies, TV, and music videos--presents to us a world that is not our world but rather a collection of images and ideas created for the purpose of selling” (Chiat 212) .There is no better way to sell a false life or idea than to have a celebrity sell it for you.

Finally, Shamma (2011) claims that total brand equity consists of product and corporate brand equity which depends on company’s market, social and financial performance. Furthermore, there is a positive relationship between company’s corporate brand and socially responsible marketing and total brand equity (Shamma, 2011). Similarly, Grace and King (2011) talks about employee brand equity, which is the result of positive and productive employee brand-related behaviour and is strongly linked with brand’s strength (Grace and King, 2011). In contrast, Kay (2004) argues that corporate branding differs from product and service branding as it is aimed at different target audiences. For instance, corporate branding usually targets company’s shareholders and employees whereas product and service branding is focused on consumers who are not really interested in corporate brand identity (Kay, 2004). However, it is also claimed that some companies, especially those that started as niche businesses that appealed to small segments of socially conscious customers succeeded in creating strong and distinctive corporate brands. Referring to CC and Jim Beam corporation consumers are not that concerned about company’s overall image, however introduction of corporate social responsibility and socially

Celebrity endorsement is one of the most popular ways to promote a product in today’s market. Consumers make a purchase based on the price of the product, its quality, and the necessity to own the good. What can ultimately influence the demand of a product is to have a celebrity endorse a certain brand. Michael Jordan is considered arguably the greatest basketball players of all-time. However he only gained global recognition after his involvement with Nike and Air Jordan.

Information and communication technology has been adopted and implemented within various sectors of the economy. This is attributed to the benefits of technology in facilitating organizational activities and processes and its use in meeting the changes which characterize the modern society. The health sector is one of the industries which have significantly implemented technology. The health sector’s technological applications have been achieved within health information systems. The implementation of technology in this sector has resulted into both positive and negative implications on health

Marketer may need to choose a popular celebrity who have less endorsement rather than endorsed wide range of brand. As a celebrity endorser can also overshadow their brand by taking on too many endorsement deals. The FrogDog (2013) website considers David Beckham an example of this. The star promotes a wide range of products, from soft drinks to shoes, in adverts that consistently make his image their focal point. The effect of this is that viewers tend to remember that they’ve seen David Beckham, and not remember which product he was

It has been discovered by scholars that the credibility of celebrities have a very positive impact on the attitudes regarding brands, advertising and behavior intention of purchase. Furthermore, certain studies have evaluated what activities exert an influence in enhance the credibility of celebrities. For example, there was a recent charitable donation by celebrities of entertainment in South Korea. That demonstrates the charitable giving by celebrities as an efficient personal public relations strategy for enhancing, building and sustaining their credibility (Hwang, 2010). It should be noted that the relationship between brands and celebrities are always altering. When someone turns the television on, flipping through a magazine, surfing

Brand- is a name, term, design, symbol, or other feature that separates an organization or product from its challengers in the judgments of the customer. Brands are used in business, marketing, and advertising.

Celebrities can have a significant influence on consumer choices since they’re recognizable and admired by targeting audiences. As this would give the celebrities a higher chance of influencing the consumer. For example, Justin Timberlake, a famous vocalist, has been a spokesperson who advertised for Pepsi. In addition, this example demonstrated business believe that Justin Timberlake will be a perfect person to represent Pepsi at the time. The reasons are he’s a famous singer, he’s handsome, and his fans will excitedly buy the product.

According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.

Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.

Celebrity endorsements are one of the most famous methods of marketing used today. Celebrity endorsers are being used in about 25% of all the advertisements that we can see on the television. Marketers are investing large sums of money to have a contract with the celebrities as they believe that celebrities can affect the chances of success of a product. (Erica Weintraub Austina*, 2008) Kiakati

Celebrity endorsement is a billion dollar industries today (Kambitsis et al., 2002) with companies signing deals with celebrities hoping that they can help them stand out from the clutter and give them a unique and relevant position in the mind of the consumer. According to Solomon (2002), the reasons for using celebrity endorsement involves its potential to create awareness, positive feelings towards their advertising and brand. Research has shown that celebrity endorsement can have an impact on the consumer’s attention, recall, evaluations and purchase intentions (Atkin and Block, 1993), Celebrity endorsement is a widely used tactic in marketing and much research