Effectiveness of Celebrity Endorsement on
Consumer Brand Preference
Submitted by
Aakash Pandya
Table of Contents
1. Introduction 3
1.1 Background of the Study 3
1.2 Research Problem 5
1.3 Research Objective 6
1.4 Significance of the study 6
II. Literature Review 7
2.1 Hypothesis 8
2.2 Significance of the study 9
III Research Methodology 10
3.1 Research Design 10
3.2 Population 10
3.3 Sample Size and Sampling Method 10
3.4 Data Collection 11
3.5 Analysis and discussion 11
3.6 Research Plan 11
IV. References 12
1. Introduction
The primary objective of this research is to examine the transfer effect of the celebrity endorsements on the attitude towards advertisements, brand and its sales.
1.1 Background of the Study
Consumers want to be reassured that the decision of buying a specific brand is sensible and would pay off while consuming the product/brand. Most of the times advertising helps consumers come out of the state of cognitive dissonance and satisfy with their decision of buying a particular brand. Celebrity endorsements can help consumers achieve this state of satisfaction. Celebrity endorsements have long been used to convince consumers to buy products. It 's an effective method of creating value, recognition and credibility for a brand
Celebrities have qualities that make them exceptional in their fields of expertise, be it sports or entertainment, people recognize and admire them. A celebrity endorser is "Any
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
The literature on Akhtar et al. (2016) has highlighted celebrities have the greater effect on customer purchase intention through celebrity endorsement and sponsorship. More specifically, companies chose celebrity endorsement and celebrity sponsorship as their marketing strategy also shown an increase in sales reports on both products and services (Akhtar et al., 2016).The literature on Akhtar et al. (2016) has highlighted celebrities have the greater effect on customer purchase intention through celebrity endorsement and sponsorship. More specifically, companies chose celebrity endorsement and celebrity sponsorship as their marketing strategy also shown an increase in sales reports on both products and services (Akhtar et al., 2016).The literature
“People are more likely to pay attention to a TV commercial if one of their favorite players is talking, than they would be if the owner of the company was the star” (Miller). It is the association with the known and likeable character which may attract people to follow celebrity endorsements. It may also be the association with success which the athlete is characterizing. Whatever the case may be, Miller gives tips of what marketing companies look for before persuading a player with an endorsement:
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
People think “oh that product looks amazing, I want it” just because celebrities are in the advertisement, and it looks more credible. Consumers get influenced into buying products when the advertisement is amusing. Although that may be the case, it is up to the consumer to be responsible with what he/she is buying. Cover Girl’s Plumping Mascara commercial featuring Katy Perry does not get every girl persuade to buy it. Even though the commercial is great and looks like the product works really well, does not mean every person who sees the advertisement feels pressured into buying the product. Several men and women believe it is insulting to use celebrity advertisement to promote products and others think it is the buyer who has the responsibility of not getting suckered into buying everything he/she sees. Also advertisment is a way to promote products, celebrities should be allowed in
Al Ikhsan uses celebrities to represent the ideal customer or user of the firm’s products. The company’s advertisements present highly popular personalities, such as professional athletes. The target customers see that their favorite celebrities use the company’s products. As a result, the customers are motivated to mimic the behavior of these celebrities. Through the use of celebrity figures in advertising, Al Ikhsan’s marketing communications mix promotes the firm’s products to customers by motivating them to mimic how these celebrities prefer Al Ikhsan.
The article suggests that money and exposure are key reasons for celebrities to tie their name to a large company that may not be healthy for children, for this reason; one questions the qualities of the celebrity. For example, one can question qualities of a famous athlete that endorses Sprite because soda leads to dehydration and athletes’ focus is often staying hydrated. Next, businesses use celebrities as a marketing strategy to gain attention for the product that the company wants endorsed. This causes the business to spend more money on more influential people leading to the assumption that celebrities are endorsing products that they do not actually use on a daily basis for money. After one is able to think critically about the logistics of the celebrity endorsing the product one can find that it is most likely about being paid or reaching a new
“This kind of marketing is misleading and insults the intelligence of the audience (Jozui).” Jozui is explaining that using a celebrity as an endorser provides automatic approval and because of that doesn’t provide much evidence of how effective the product is. However, the consumer should have the ability and knowledge to do research on the product. ¨Am I going to buy the newest SUV because an attractive talk show host gets paid to…(Jozui).¨ Just because somebody is paid to pretend to like a product does not automatically give the product approval. Not everybody would agree with the right to advertise freely however, companies have every right to do
The world Is like one big marketing ploy. Advertisements are everywhere from subtle movie appearances to billboards and everything in between. Advertisers continue to find more ways to push their products with the hopes that the next method will prove more successful than its forerunner. The articles “Illusions Are Forever” by Jay Chiat and “Champagne Taste, Beer Budget” by Delia Cleveland illustrate the result of successful advertising and how it works. Quite a few of these seldom fail to prove fruitful .The most effective forms of advertising are high-end product placement and celebrity endorsement.
The history of celebrity endorsement goes back to the 1760s. Josiah Wedgwood, the creator of the Wedgwood brand of pottery and chinaware, also known as the father of the modern brand used endorsements and new advertising strategies to build an impression around his company’s name that give the brand name a worth further than the attributes of the goods itself. Somewhere around 1875 and 1900, the trade card popularized celebrity endorsement, either given along with the product to the consumers or inserted in the packaging. The card had a photograph of the celebrity and a description of the product, but it had no quotation or a direct testimonial by the celebrity. Trade cards highlighted actresses like Lily Langtry and Sarah Bernhardt and baseball
Wonderful post Giselle! Your insights to celebrities influence on consumers decisions are on point. As you have mentioned opinion leaders like Oprah Winfrey allow an opportunity for consumers to build a connection through instances like using the same dieting strategy, make up use, and trying new perfumes advertised by a celebrity. A lot of celebrities are idolized by many and for marketing this is a perfect advantage.
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
Furthermore there are other researches as well which suggest that the approach of using a celebrity to endorse a product can not be viewed as a general practice of using any celebrity for any product endorsement. Pornpitakpan (2003), while discussing match-up hypothesis, describes the results of a study by Erdogen et al (2001) which suggests that "British advertising agency managers considered various criteria like celebrity- target audience match, celebrity-product match, overall image of the celebrity, cost of hiring the celebrity, celebrity trustworthiness, controversy risk, celebrity familiarity, celebrity prior endorsements, celebrity likeability, risk of celebrity overshadowing the brands, celebrity expertise, celebrity profession and celebrity physical attractiveness". A match between the target market and the endorser is important for effectively transmitting right message to target audience. For example, the advertisements which are produced by Pepsi, are mostly targeted for youths and so the celebrity endorsers that they use in their advertisements are young personalities. The match up hypothesis goes true for the multiple celebrity advertising as well. A good example of this is the Pulse Polio campaign taken up in India to eradicate the polio