Impact of Celebrity Endorsement On Consumer'S Buying Behavior
Impact of Celebrity Endorsement On Consumer'S Buying Behavior
ENDORSEMENT ON
CONSUMER’S BUYING
BEHAVIOR
Sanober Khan 226-Bcom/15-S 11/5/17 Business Research Method
Research Report
ACKNOWLEDGEMENT
C K N O W L E D G E M E N T
Thanks a lot.
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Abstract:
The purpose of this study is to explore the impact of celebrity endorsement on consumer’s buying
intentions. This study concentrated on discovering the thoughts of Pakistani customers about
celebrity endorsement by analyzing the different characteristics of the celebrity endorsement with
respect to consumer’s buying intentions. In this study, I reviewed the former literature present on
the topic of celebrity endorsement. That gives clear perception of different important prospects
regarding this topic. The general belief among advertisers is that advertising messages delivered by
celebrities provide a higher degree of appeal, attention and possibly message recall than those
delivered by non-celebrities. Marketers also claim that celebrities affect the credibility of the
claims made, increase the memorability of the message ,and may provide a positive effect that
could be generalized to the brand Copper (1984).So considering these points this paper is an
attempt to know the impact of celebrity endorsed advertisements on consumers and on sales. This
study is also an attempt to know the reasons of using the celebrities in advertisements.
KEYWORDS: Celebrity endorsement, Purchase intentions, Consumer buying behavior, Celebrity
endorsement in Pakistan
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Table of content:
Chapter: 1
1. Introduction 4
1.1 Background 5
1.2. Research Problem 6
1.3. Research Question 6
1.4. Objectives of the Study 7
1.5. Significance 7
1.6. Limitations 7
1.7. Scope 8
1.8. Definition of key terms 8
Chapter: 2
2. Literature Review 10
Chapter: 3
3. Research Methodology
3.1. Research Design 11
3.2. Procedure 11
3.3. Population 11
3.4. Sample and Sampling Methods 11
3.5. Instrument selection 11
3.6. Variables 11
3.7. Hypothesis 12
3.8. Plan of Analysis 12
3.9 Software Employed 12
3.10 Research Schedule 12
Chapter: 4
4. Data Analysis 14
Chapter: 5
5. Conclusion & Recommendation 25
6. Bibliography: 26
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Chapter: 1
1 Introduction
Everyday consumers are exposed to thousands of voices and images in magazines, news papers
and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of
a person’s time to inform him or her of the amazing and different attributes of the product at hand.
The challenge of the marketer is to find a hook that will hold the subject’s attention. In helping to
achieve this, use of celebrity endorsers is a widely-used marketing strategy. In this modern age,
people tend to ignore all commercials and advertisements while flipping through the magazines
and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed.
Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great
significance. In this process,
the companies hire celebrities from a
particular field to feature in its advertisement campaigns. The promotional features and images of
the product is matched with the celebrity image, which tends to persuade a consumer to fix up his
choice from a variety of brands. Companies invest large sums of money to align their brands and
themselves with endorsers. Such endorsers are dynamic with both attractive and likeable qualities
and companies plan that these qualities are transferred to products via marcom
activities. Furthermore, because of their fame, celebrities serve not only to create and maintain
attention but also to achieve high recall rates for marcom messages in today’s highly cluttered
environments.
Similarly, every product has an image. The consumer tries to consume a brand which has the
maximum fit with his/her own personality/image. The celebrity endorser fits in between these two
interactions, where he tries to bring the image of the product closer to the expectation of the
consumer, by transferring some of the cultural meanings residing in his image to the product.
The general belief among advertisers is that brand communication messages delivered by
celebrities and famous personalities generate a higher appeal, attention and recall than those
executed by non-celebrities. The quick message-reach and impact are all too essential in today’s
highly competitive environment.
Celebrities have also been in demand having succeeded in being effective by rising above the
clutter & grabbing the attention and focus of the consumer. They also succeed in creating an
aspiration in the minds of the consumer to acquire what their favorite celebrity endorses.
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1.1Background to the Research
In today’s world the celebrities are being treated as a role model. People are changing their living
style relatedwith their favorite celebrity. This thing creates a great impact on the buying behavior
of the persons. This attracts the customers and ultimately increases the company productivity.
Celebrities are not always creating any kind of effect on person’s mind in terms of buying. But
mostly it gives a great impact on perception of choosing any product. We are always thinking that
if our favorite celebrity is using them. Then we should use that to be like them (Khatri 2006).
From last 150 years advertising is changing in different phases from the classical to modern. Now a
day it’s the best strategy used by marketers to influence customers by showing celebrities with
their products, it includes different appeals lie, exciting, absurdity, sexual etc. Belch, G. and Belch,
M. (2008) acknowledged that the main aim of formulating such strategies is to get high brand
revelation, longing, concentration and curiosity.To do so, marketers attach famous personalities
with their products.
McCracken (1989) stated that these famous personalities had great influence on the consumer’s
buying behavior that’s why it becomes the most attractive tool of advertising now a day. The major
aim to do advertising and adopt this strategy is to influence customers towards the products
(Ohanian 1990).
According to Patrick Bishop (2000), a Marketing Expert, “When you get a celebrity to endorse
your company or sign licensing agreement, you benefit from customer awareness of the property,
which could include the perception of the quality, education value or a certain image. If a celebrity
is endorsing or the business is selling the product of a well-known person or entity, then people
assume they must be a good company to deal with.” Both entities represent nodes in a cognitive
network, whose connectivity can establish contingency between the two entities.
Marketers must understand what happens to the buying decision of the customer when the cultural
meanings of celebrities are disgraceful. This is because the customer purchasing and using the
product endorsed by the celebrity can obtain some of those meanings and use them in constructing
self-control.
This research is specifically on celebrity endorsement and the influences it has on consumer buying
behavior.
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1.2Statement of the problem:
It has identified that celebrity endorsement has significant role in developing a brand image in the
minds of consumer which ultimately influence their buying behavior and marketers greatly
emphasize on these strategies to capitalize, the study was conducted to measure the influence of
celebrity endorsed ads on the purchasing decision on consumer, consumers’ perception towards
endorser and product endorsed and how these perceptions influence their purchase decision.
2. Do you think that ads having celebrities are more effective than those
which don’t?
3. Would you switch from you regular products to a new product endorsed by
your favorite actor/ actress?
7. Are you able to identify the product because of the celebrity associated with
it?
8. I don’t believe the celebrities also use those products which they
themselves endorse.
9. If a celebrity you disliked was endorsing a brand you often purchase from,
would this change your consumer interests?
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11. I find product endorsed by celebrities are informative.
15. I think that "negative publicity" about a celebrity endorser can influence my
decision of buying a brand?
14. I will stop buying a brand if my favorite celebrity endorsing it gets involved
in scandal
15. I buy a product just because the celebrities are using it.
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1.7Scope of the study:
The study is conducted in Benazir Bhutto Shaheed University from students ofdifferent age group.
This study has examined that how celebrityis effective for endorsing the products and
howcompanies can make their brand much more powerful intheir customer’s mind through this
communication tool.
Celebrity endorsement
Khatri (2006) studied that the celebrity endorsement is the Promotion strategy to attract the
customers. By analyzing the current market, now it’s become the need of the marketers to use the
different famous personalities to relate with their brands to create unique identity of the brand and
to do famous his company’s brand orproduct, which results high expenditure for the company to
use that strategy, however nowadays it is used to be apowerful strategic tool to get maximum
profit. It also shows that this can carry risk, because there is no surenessthat the celebrity can come
up with the sales generation of the firm. But it creates a buzz and gives popularity tothe company
and the brand. This can increase the expectation of the customers in terms of real star by delivering
the company promise. There are certain perspectives occur where the real persons can work better
than the celebrities’ endorsement, but not always.
Purchase Intension:
The willingness of a customer to buy a certain product or a certain service is known as purchase
intention. Purchase intention is a dependent variable that depends on several external and internal
factors. Some of the factors are as follows:
Stimulus/Trigger: The cue that triggers a buyer towards considering a product or a brand to be
included in their consideration set. This might be the attributes of a product or simply its packaging
Outcome expectation: The outcome expected out of the use of a product or a service
Aspirational Value: The product might satiate some aspirations of a buyer. For ex. A luxury car
Emotional association: Being emotionally associated with a product or a brand owing to the
brand’s perceived personality
Other factors can be perception about the product, associated risks and costs.
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Consumer Buying behavior
Buying behavior is a process by which a people search for the product/services they need or want,
make decisionto buy the required and most suitable one from different alternatives, use and the
dispose it. For makingmarketing decision buying process model is playing a very important role for
any one. It makes marketers tothink about each step of this process rather than just purchase
decision because if marketers just consider thepurchase decision, it may be too late for a business
to influence the choice of customers. According to this modelthe customer pass through all stages
for purchasing every goods or services. However, in more regularpurchases, customer often skips
some the stages
In Pakistan, very little number of peoples’ behavior is influenced because of the factor that a
particular brand’s advertisement has a celebrity in it.
But when a sample is asked about the last recall advertisement 8 out 10 were of celebrity endorsed
advertisements. Recall rate is high when someone sees a celebrity in an advertisement whether it’s
a Print Ad or Television Commercial.
Chapter: 2
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2.1 Literature Review
Celebrities are perceived to hold qualities such as attractiveness, expertise, trustworthiness and
likeability, which advertiser's hope will be transferred to the brand or product consequently
creating positive images for that product or brand (Muda et al., 2012).Many consumers idolize
celebrities and strive to imitate their lives with the clothes they wear and products they consume
(Aureliano-Silva et al., 2015). Celebrities create meaning for the consumer through their
interactions with products in advertising (Muda et al., 2012; Aureliano-Silva et al., 2015)
According to findings of the research, celebrity endorsed advertisement is not only utilized to
create brand awareness and brand recognition but they help the company to capture target
audience. Celebrity do not take the advertisement effective but other factors like product
performance, quality and brand image, personality and trustworthiness of celebrities make the
mind of consumer to choose the particular product of his/her choice. Moreover these elements play
a major role in making an advertisement successful and in influencing the purchasing behavior of
the consumer.(Khan, 2016)
Mr. Javeed Ahmed Khan said that Celebrity endorsement enhances the product information and
creates awareness amongconsumers. It helps them to recall the brands of the endorsed products.
A Taiwanese study shows that consumers show greater recall of products that have been endorsed
by celebrities – regardless of whether they are actual fans or not. The human brain recognizes
celebrities similarly to how it recognizes people we actually know. The effect is that, if consumers
happen to be fans, they place a higher value on products that celebrities are endorsing – it is as if
they are receiving advice from a valued friend(http://www.guided-selling.org/impact-of-celebrity-
endorsement-on-consumer-buying-behavior/)
Advertising that features a celebrity creates attention and generates awareness of the product. Your
company can gain new customers from the celebrity's fan base. For instance, a well-loved local
guitarist could draw attention to your musical instruments shop. Fans who have faith in the
personality are most likely to purchase your products or, at least, have a greater intention to buy.
The advertising also gains the attention of consumers with a casual interest in the celebrity.
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A celebrity’s reputation is tied to that of the company after appearing in the company’s advertising.
If a respected celebrity appears in advertising for an imperfect brand, the views of the brand could
improve or the celebrity’s reputation could worsen. Also, if the celebrity’s reputation suffers, the
formerly positive views of the brand could suffer too.Celebrity endorsements can affect sales
positively or negatively. Consumers are likely to purchase the product if they feel that the celebrity
is likable, sincere and appropriate for the item. However, the reverse is also true. Sales could
diminish if the celebrity does not appeal to the target market, is not credible or gains negative
publicity. In some cases, consumers are indifferent and there is no noticeable change in sales. A
local football player endorsing your veterinary practice might not draw much interest, unless he is
known for loving animals. (http://smallbusiness.chron.com/effect-celebrities-advertisements-
56821.html)
Chapter: 3
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Research Methodology
3.2 PROCEDURE:
Questionnaire were used as an instrument to collect a data and data is collected by two ways:
3.3 POPULATION:
A questionnaire will be given to the sample population in order to identify the buying pattern of
consumer’s on the basis of given variables. Each variable is measure by asking the questions and
use interval scale ranging from:
3.6 VARIABLES:
The Dependent variable is the buying behavior and independent variable is the celebrity
endorsement. We operationalize the celebrity in its three main attributes namely, attractiveness,
credibility and meaning transfer. And we see their impact on the buying behavior.
3.7 HYPOTHESIS:
H0: There is no impact of celebrity endorsement on consumer’s buying behavior.
H1: There is an impact of celebrity endorsement on consumer’sbuying behavior.
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3.8 PLAN OF ANALYSIS:
To analyze the research outcome the results of descriptive analysis of all dependent and
independent variables are decide.
3.9 SOFTWARE EMPLOYED: To make analysis of data it will use SPSS software in which we
will make analysis in to two parts where part one will lead descriptive statistics that will be use to
describe and summarize data and include measures of central tendency (average) and dispersion
(the spread of data or close each other is to the measure of central tendency).
4 feb- 16 feb
1 Proposal 12 day
17 17
Recommendation & 04
5 8 day 12 may
conclusion may
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Chapter: 4
Data Analysis
FREQUENCIES:
Statistics
TABLE 4.1:
Gender
Frequency Percent Valid Percent Cumulative
Percent
GRAPHICAL REPRESENTATION:
4.1 INTERPRETATION:
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The questionnaires were distributed to 100 respondents.52% responses were collected from female
respondents,48% responses from male respondents. The sample size was sufficient for the study of
this research from different perspectives
TABLE 4.2:
Age
GRAPHICAL REPRESENTATION:
4.2 INTERPRETATION:
Out of 100 respondents 26 respondents were between15-20, 37 respondents were below 21-25, 28
respondents were between 26-30 and 9respondentswere above 30. The questionnaires were
distributed to people with heterogeneous ages which are considerably reliable for the study
TABLE 4.3:
Education
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Frequency Percent Valid Percent Cumulative
Percent
GRAPHICAL REPRESENTATION:
4.3 INTERPRETATION:
Out of 100% respondents the education level of 6% respondents was matric, 4% respondents was
Intermediate, 67% respondents was under graduated and 9% respondents was post graduated.
TABLE 4.4:
Status
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Married 20 20.0 20.0 100.0
GRAPHICAL REPRESENTATION:
4.4 INTERPRETATION:
Out of 100% respondents 80% respondents were single and20% respondents were married.
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FREQUENCIES OF QUESTIONS:
Q1
The pie chart shows that 12% of respondents were Strongly Disagree, 27%
were Disagree, 8% were Neutral, 31% were Agree and remaining 22%
were Strongly Agree. So, here the result cannot be concluded.
Q2
Q2) Do you think that ads having celebrities are more effective than those
which don’t?
The pie chart shows that 11% of respondents were Strongly Disagree, 19%
were Disagree, 14% were Neutral, 31% were Agree and remaining 20%
were Strongly Agree. Here mostly respondents agreeing with the
statement.
Q3
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Frequency Percent Valid Percent Cumulative
Percent
Q3) Would you switch from you regular products to a new product
endorsed by your favorite actor/ actress?
The pie chart shows that 11% of respondents were Strongly disagree,
28% were Disagree, 25% were Neutral, 13% were Agree and
remaining 23% were Strongly Agree. Here respondents with disagree
opinion are higher in number.
Q4
Valid
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The pie chart shows that 11% of respondents were Strongly disagree, 20% were Disagree, 23%
were Neutral, 30% were Agree and remaining 16% were Strongly Agree. Here respondents with
agree opinion are higher in number.
Q5
The pie chart shows that 10% of respondents were Strongly disagree,
34% were Disagree, 27% were Neutral, 17% were Agree and
remaining 12% were Strongly Agree. Here respondents with disagree
opinion are higher in number.
Q13
The pie chart shows that 10% of respondents were Strongly disagree, 34%
were Disagree, 27% were Neutral, 17% were Agree and remaining 12%
were Strongly Agree. Here respondents with disagree opinion are higher
in number
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Q14
Q15
higher in number.
Frequency Percent Valid Percent Cumulative
And on second the
Percent respondents were
Strongly Disagree 24 24.0 24.0 24.0 neutral.
Disagree 22 22.0 22.0 46.0
Q15) I buy a product just because the celebrities are using it.
The pie chart shows that 24% of respondents were Strongly disagree, 22% were Disagree, 22%
were Neutral, 20% were Agree and remaining 12% were Strongly Agree. Here respondents with
disagree opinion are higher in number. And on second the respondents were neutral.
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Q16
The pie chart shows that 20% of respondents were Strongly disagree,
25% were Disagree, 23% were Neutral, 18% were Agree and remaining
14% were Strongly Agree. Here respondents with disagree opinion are
higher in number. And on second the respondents were neutral.
Q17
The pie chart shows that 19% of respondents were Strongly disagree, 20% were Disagree, 21%
were Neutral, 30% were Agree and remaining 10% were Strongly Agree. Here respondents with
agree opinion are higher in number.
4.5 RELIABILITY:
Scale: ALL VARIABLES
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N %
Cases Excludeda 0 .0
Reliability Statistics
.754 17
4.6 CORRELATION:
Descriptive Statistics
Correlationsb
Celebrity_Endor Buying_Behavio
sement r
Pearson Correlation 1 .532**
Celebrity_Endorsement
Sig. (2-tailed) .000
Pearson Correlation .532** 1
Buying_Behavior
Sig. (2-tailed) .000
**. Correlation is significant at the 0.01 level (2-tailed).
b. Listwise N=100
4.7 REGRESSION:
Variables Entered/Removeda
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Model Summary
ANOVAa
Total 2342.840 99
Coefficientsa
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Chapter: 5
1. Conclusion & Recommendation
People don’t believe such ads because the celebrities these days are endorsing any product as long
as it pays a lot. People tendto lose faith in such products and in the long run the actor. The
popularity and the credibility of the actors play a veryimportant role in convincing people. Since,
actors these days endorse a lot of products people are losing their faith in them.Even though the
impact of celebrity endorsements focus on business growth, the brands without celebrities and
popular personalities have been equally received by the customers. The attractive advertising
campaign and product tag lines andcaptions have a major influence on the customers to avail these
products. Despite dependence on celebrity endorsements, fewbrands have embedded their image
on consumers' psyche as the most consistent source.
The customers buy the products on the basis of the product’s quality and the consistency of the
quality.So, what the marketers need to do is, find a way that is more suitable. Have advertisements
that are meaningful from thepoint of view of the consumers and do not add to the cost of the
product. Because the celebrities endorse more than oneproduct, brand recall for people becomes
difficult for the consumers.But, we can see that celebrity advertising is not going to go away any
time soon but the impact on the buying behavior ofpeople because of it is reducing
considerably.Taking a lesson from the above-mentioned brands, marketers can also have normal
people, who do not belong to theglamour industry, in their advertisements. The marketers need to
make ads that are more believable and use celebrities in theirads more carefully and after a lot of
thought
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