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term paper of reserch on celebrity endorsement
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Introduction Celebrity endorsement has become an essential part of today’s advertisement world.Every big brand is using celebrities to promote their brands. This paper is the analysis of effect of celebrity endorsement on the purchase behavior of consumers. This study is carried out on 50 respondents from different courses in lovely professional university. Review of literature 1.Factors predicting the effectiveness of celebrity endorsement advertisements Summary This research examines whether consumers infer that celebrity endorsers like the products they endorse, and presents a model using these inferences and other characteristics of the endorser to predict attitudes toward the endorsed product. 2.Celebrity performance and endorsement value: the case of Tiger Woods summary: An interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woods’s tournament performance on the endorsing firm’s value subsequent to the contract signing. We do not find a relationship between Tiger’ss tournament placement and the excess returns of Fortune Brands (parent of Titleist).
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Page 1: Term Paper

Introduction

Celebrity endorsement has become an essential part of today’s advertisement world.Every big brand is using celebrities to promote their brands.

This paper is the analysis of effect of celebrity endorsement on the purchase behavior of consumers. This study is carried out on 50 respondents from different courses in lovely professional university.

Review of literature

1.Factors predicting the effectiveness of celebrity endorsement advertisements

Summary

This research examines whether consumers infer that celebrity endorsers like the products they endorse, and presents a model using these inferences and other characteristics of the endorser to predict attitudes toward the endorsed product.

2.Celebrity performance and endorsement value: the case of Tiger Woods

summary:

An interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woods’s tournament performance on the endorsing firm’s value subsequent to the contract signing. We do not find a relationship between Tiger’ss tournament placement and the excess returns of Fortune Brands (parent of Titleist).

3.The equity effect of product endorsement by celebrities: A conceptual framework from a co-branding perspective

Summary:

The purpose of this study is to outline a conceptual framework that can be used to organise and guide future research into how celebrity product endorsement creates equity for both the endorsed product-brand and the endorsing celebrity. The central thesis is that both endorser image and brand image serve as mediators in the equity-creation process of celebrity product endorsement.

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1. http://www.emeraldinsight.com/10.1108/03090560410560218

2. http://www.emeraldinsight.com/10.1108/03074350010766756

3. http://www.emeraldinsight.com/10.1108/03090560710718148

4.The naked truth of celebrity endorsement

Summary:

This case study examines the use of celebrity endorsement in the formation of the retail image of leading European grocery distribution group J. Sainsbury, in particular, the process of transference of celebrity images to the product’s image. The incorporation of Jamie Oliver (well known as television celebrity The Naked Chef) into the promotions of one of Britain’s leading grocery chains involves a high profile campaign that has been adopted in order to imbue the company’s products with an image of quality. The success of the campaign has been replicated in New Zealand by another grocery retail “giant”, Foodstuffs, who have also adopted The Naked Chef to endorse their products. The case draws on field research with consumers and key informant interviews with advertising agency personnel who identified the criterion for the choice of Jamie Oliver. The extent to which the market place recognises and consumers associate themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored.

5.Celebrity Endorsement in Food - UK

This report assesses celebrity endorsement of food since the last Mintel report was published in January 2005. Over the last three years increased media coverage of food and cookery has propelled celebrity chefs into the limelight. At the same time issues such as healthy eating, organic and free-range production values have come to the fore. The result is a much more complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of food products, celebrities have become crusaders for the food sector, challenging consumers to think before they eat and resulting in significant changes in purchasing behaviour.

.6.How sports celebrity endorsements affect a company's branding

The effect of sports celebrity endorsements on a company's branding can not be underestimated. Usually the effect is positive however at times it can backfire and cause an undesired outcome. Throughout the past chundred and twenty five years or so we have seen sports and business

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intertwined in the advertising world and the relationship grows stronger every year elevating both brand and athlete to levels of public conciousness neither would likely realize on their own.

4. http://www.emeraldinsight.com/10.1108/00070700310477086

5. http://www.just-food.com/store/product.aspx?id=64297

6. http://www.helium.com/items/1142527-how-sports-celebrity-endorsements-affect-a-companys-branding?page=2

7. Celebrity Endorsement: Advertising Agency Managers’ Perspective 

This paper has explored on advertising agency managers’ point of view regarding celebrity endorsement strategy. Findings revealed that managers see media clutter as the biggest challenge for marketing communications practitioners nowadays and utilise a celebrity endorsement strategy to overcome this challenge. A celebrity campaign to bring desirable campaign results must support a good idea and there must be an explicit fit between celebrities and brands. While deciding on a particular celebrity, a range of criteria are reported to be taken into account and these criteria’s importance was communicated to be very similar in the UK, but it would differ across countries mainly because of cultural differences.

8.Celebrity Endorsement in Food - UK - April 2008

This report assesses celebrity endorsement of food since the last Mintel report was published in January 2005. Over the last three years increased media coverage of food and cookery has propelled celebrity chefs into the limelight. At the same time issues such as healthy eating, organic and free-range production values have come to the fore. The result is a much more complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of food products, celebrities have become crusaders for the food sector, challenging consumers to think before they eat and resulting in significant changes in purchasing behaviour.

9.Celebrity Endorsements

It is estimated that companies in the U.S. spent $800 million in 1998 to“acquire talent — entertainers, athletes and other high profile personalities —to spotlight in advertising, promotion and PR campaigns” (IEG Endorsement Insider)

Approximately 20% of all television commercials feature famous people.Why do ads for some products feature celebrity endorsements while adsfor others do not? To answer this question, we develop a coordination model ofadvertising in which firms choose both advertising levels and advertising format— ads with celebrity endorsements or ads without. We show that the equilibriumformats are either ones that reach large audiences at low cost or thatcoordinate well. The former provides a cost-based explanation for celebrity endorsements

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that is consistent with experimental evidence showing that celebritiesenhance product recall. The latter provides an explanation for celebrityendorsements consitent with evidence that they enhance consumer perceptionof product value. For this latter case, we show that celebrity endorsementsare chosen for products that i) have large potential customer pools, ii) providelarge coordination returns to consumers or iii) require coordination across diversesets of customers. Our analysis also provides an explanation for the useof “fictional” celebrities like Joe Camel.

http://fulltext.ausport.gov.au/fulltext/1999/cjsm/v3n3/erdogan&baker33.htm

http://academic.mintel.com/sinatra/oxygen/display/id=319432

www.rotman.utoronto.ca/ihorstmann/JEMS.2005-07-07.clark.pdf

Research design: In this research we used exploratory design. Exploration is a

particularly useful when researchers lack a clear idea of the problems they will meet during the study. Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions and improve the final research design. Exploration may also save time and money.

Sampling design: in this research we used convenience sampling. Non probability

samplings that are unrestricted are known as convenience sampling. They are the least reliable design but normally the cheapest and the easiest to conduct. Researchers or field workers have the freedom to choose whomever they find , thus the name convenience .

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Analysis

1: This is the analysis of no. of consumers who watch advertisement.

Statistics

Do you watch advertisement N Valid 50

Missing 0Mean 1.00Median 1.00Mode 1Std. Deviation .000

Do you watch advertisement

Frequency Percent Valid PercentCumulative

PercentValid 'yes' 50 100.0 100.0 100.0

'yes'

Do you watch advertisement

DATA findigs:

100% of respondents said that they watch advertisements.

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Inference :

All the respondents say that they watch advertisements.

2.This is the analysis of response of consumers on celebrity endorsement in advertisements

Statistics

Do you think that celebrity is required in an advertisement N Valid 50

Missing 0Mean 1.20Median 1.00Mode 1Std. Deviation .404

Do you think that celebrity is required in an advertisement

Frequency Percent Valid PercentCumulative

PercentValid 'yes' 40 80.0 80.0 80.0

no 10 20.0 20.0 100.0

Total 50 100.0 100.0

no

'yes'

Do you think that celebrity is required in an advertisement

__

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Data findings:

80% respondents says that celebrity endorsement is required for advertisements.

Inferences:

Majority of respondents says that celebrity endorsement is required for advertisements.

3. This is the analysis of choice of celebrity on the basis of gender.

Statistics

Is your favorlte celebrity is male or female N Valid 50

Missing 0Mean 1.58Median 2.00Mode 2Std. Deviation .499

Is your favorlte celebrity is male or female

Frequency Percent Valid PercentCumulative

PercentValid 'male' 21 42.0 42.0 42.0

female 29 58.0 58.0 100.0

Total 50 100.0 100.0

female

'male'

Is your favorlte celebrity is male or female

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Data findings:

58% of respondents says that they like female celebrities in advertisements.

Inferences:

Majority of respondents favor female celebrity endorsement on the place of male celebrity.

5. This is the analysis of behavior of respondents for the uses of product due to celebrity endorsement.

Statistics

Do you keep using a brand only because of the endorsing celebrity N Valid 50

Missing 0Mean 1.76Median 2.00Mode 2Std. Deviation .431

Do you keep using a brand only because of the endorsing celebrity

Frequency Percent Valid PercentCumulative

PercentValid 'yes' 12 24.0 24.0 24.0

no 38 76.0 76.0 100.0

Total 50 100.0 100.0

Statistics

no

'yes'

Do you keep using a brand only because of the endorsing celebrity

__

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Data findings:

76% respondents said that they are not using a brand only because of endorsing celebrity

Inferences:

majority of respondent use brands only according to their choice noy because of celebrity endorsement in it.

6. This is the analysis of respondent’s preference while purchasing any brand

Statistics

what makes you notice a brand N Valid 50

Missing 0Mean 1.48Median 1.00Mode 1Std. Deviation 1.035

what makes you notice a brand

Frequency Percent Valid PercentCumulative

PercentValid 'quality' 39 78.0 78.0 78.0

advertisement 3 6.0 6.0 84.0

endorsing celbrity 5 10.0 10.0 94.0

price 1 2.0 2.0 96.0

other 2 4.0 4.0 100.0

Total 50 100.0 100.0

Page 10: Term Paper

other

price

endorsing celbrity

advertisement

'quality'

what makes you notice a brand

__

Data findings;

78% respondents said that the give more value to the quality before purchasing any particular brand.

While 2% respondents give price as more important factor than any other while purchasing any brand.

Inferences:

Majority of respondents give preference to the quality of product of brands while purchasing.

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7. This is the analysis of consumer buying behavior due to celebrity endorsement.

Statistics

celebrity endorsem

ent increases

your probability to go and purchase a product

celebrity endorsem

ent decreases

the risk related to

the product or

service

celebrity endorsem

ent is essential

for success of

product and

services in the market

celebrity endorsem

ent increases

the trustwortheness of

the product or services

celebrity endorsem

ent is essential

for product or service promotion in the this

competitve market place

celebrity endorsem

ent increases the brand

recall

celebrity endorsem

ent increases

the credibilty

of the product or services

celebrity endorsement alters the buying behaviour

of a person in a positive

way

celebrity endorsem

ent attracts

individuals attention towards

the product or services

advertisedN Valid 50 50 50 50 50 50 50 50 50 Missing 0 0 0 0 0 0 0 0 0Mean 2.40 2.58 2.46 2.48 2.36 2.48 2.46 2.32 2.20Median 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00Mode 2 2 2 2 2 2 2 2 2Std. Deviation .969 .992 .952 .886 .942 .953 .952 .819 1.050

celebrity endorsement increases your probability to go and purchase a product

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 5 10.0 10.0 10.0

agree 29 58.0 58.0 68.0

neutral 10 20.0 20.0 88.0

disagree 3 6.0 6.0 94.0

strongly disagree 3 6.0 6.0 100.0

Total 50 100.0 100.0

celebrity endorsement decreases the risk related to the product or service

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 4 8.0 8.0 8.0

agree 24 48.0 48.0 56.0

neutral 14 28.0 28.0 84.0

disagree 5 10.0 10.0 94.0

strongly disagree 3 6.0 6.0 100.0

Total 50 100.0 100.0

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celebrity endorsement is essential for success of product and services in the market

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 6 12.0 12.0 12.0

agree 24 48.0 48.0 60.0

neutral 12 24.0 24.0 84.0

disagre 7 14.0 14.0 98.0

strongly disagree 1 2.0 2.0 100.0

Total 50 100.0 100.0

celebrity endorsement increases the trustwortheness of the product or services

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 3 6.0 6.0 6.0

agree 28 56.0 56.0 62.0

neutral 13 26.0 26.0 88.0

disagree 4 8.0 8.0 96.0

strongly disagree 2 4.0 4.0 100.0

Total 50 100.0 100.0

celebrity endorsement is essential for product or service promotion in the this competitve market place

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 7 14.0 14.0 14.0

agree 25 50.0 50.0 64.0

neutral 13 26.0 26.0 90.0

disagree 3 6.0 6.0 96.0

strongly disagree 2 4.0 4.0 100.0

Total 50 100.0 100.0

celebrity endorsement increases the brand recall

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 6 12.0 12.0 12.0

agree 22 44.0 44.0 56.0

neutral 16 32.0 32.0 88.0

disagree 4 8.0 8.0 96.0

strongly disagree 2 4.0 4.0 100.0

Total 50 100.0 100.0

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celebrity endorsement increases the credibilty of the product or services

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 3 6.0 6.0 6.0

agree 31 62.0 62.0 68.0

neutral 9 18.0 18.0 86.0

disagree 4 8.0 8.0 94.0

strongly disagree 3 6.0 6.0 100.0

Total 50 100.0 100.0

celebrity endorsement alters the buying behaviour of a person in a positive way

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 5 10.0 10.0 10.0

agree 29 58.0 58.0 68.0

neutral 12 24.0 24.0 92.0

disagree 3 6.0 6.0 98.0

strongly disagree 1 2.0 2.0 100.0

Total 50 100.0 100.0

celebrity endorsement attracts individuals attention towards the product or services advertised

Frequency Percent Valid PercentCumulative

PercentValid 'strongly agree' 13 26.0 26.0 26.0

agree 22 44.0 44.0 70.0

neutral 9 18.0 18.0 88.0

disagree 4 8.0 8.0 96.0

strongly disagree 2 4.0 4.0 100.0

Total 50 100.0 100.0

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strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement increases your probability to go and purchase a product

__

strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement decreases the risk related to the product or service

__

Page 15: Term Paper

strongly disagree

disagre

neutral

agree

'strongly agree'

celebrity endorsement is essential for success of product and services in the market

__

strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement increases the trustwortheness of the product or services

__

Page 16: Term Paper

strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement is essential for product or service promotion in the this competitve market place

__

strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement increases the brand recall

__

Page 17: Term Paper

strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement increases the credibilty of the product or services

__

strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement alters the buying behaviour of a person in a positive way

__

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strongly disagree

disagree

neutral

agree

'strongly agree'

celebrity endorsement attracts individuals attention towards the product or services advertised

__

Data findings:

1. 29% respondents said that celebrity endorsement increases the probability of product purchase.

2. 24% respondents said that celebrity endorsement decreases the risk related to the product or services.

3. 48% respondents said that celebrity endorsement is essential for the success of product in the market place.

4. 56% respondents said that celebrity endorsement increases the trustworthiness of products.5. 44% respondents said that celebrity endorsement increases the brand recall.6. 50% respondents said that celebrity endorsement is essential for promotion of product and

services in this competitive marketplace.7. 58% respondents said celebrity endorsement alters the buying behavior in positive way.8. 62% respondents said that celebrity endorsement increases the credibility of the product.9. 44% respondents said that celebrity endorsement attracts individuals towards thw product

or services.

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Inferences

Majority of respondents are in favor of celebrity endorsement and they think that celebrity endorsement can definitely have effect on the buying behavior of any brand.

Final findings:

100% of respondents said that they watch advertisements.

80% respondents says that celebrity endorsement is required for advertisements

58% of respondents says that they like female celebrities in advertisements.

76% respondents said that they are not using a brand only because of endorsing celebrity

78% respondents said that the give more value to the quality before purchasing any particular brand.

While 2% respondents give price as more important factor than any other while purchasing any brand.

29% respondents said that celebrity endorsement increases the probability of product purchase.

24% respondents said that celebrity endorsement decreases the risk related to the product or services.

48% respondents said that celebrity endorsement is essential for the success of product in the market place.

56% respondents said that celebrity endorsement increases the trustworthiness of products.

44% respondents said that celebrity endorsement increases the brand recall.

50% respondents said that celebrity endorsement is essential for promotion of product and services in this competitive marketplace.

58% respondents said celebrity endorsement alters the buying behavior in positive way.

62% respondents said that celebrity endorsement increases the credibility of the product.

44% respondents said that celebrity endorsement attracts individuals towards thw product or services.

Page 20: Term Paper

Chi-square test

H0- there is no significant difference between celebrity endorsement and using a brand

H1- - there is significant difference between celebrity endorsement and using a brand

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N PercentDo you think that celebrity is required in an advertisement * Do you keep using a brand only because of the endorsing celebrity

50 100.0% 0 .0% 50 100.0%

Do you think that celebrity is required in an advertisement * Do you keep using a brand only because of the endorsing celebrity Crosstabulation

Do you keep using a brand only because of the endorsing celebrity

Total'yes' noDo you think that celebrity is required in an advertisement

'yes' Count 12 28 40

Expected Count 9.6 30.4 40.0

Residual 2.4 -2.4

no Count 0 10 10

Expected Count 2.4 7.6 10.0

Residual -2.4 2.4Total Count 12 38 50

Expected Count 12.0 38.0 50.0

Page 21: Term Paper

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square 3.947(b) 1 .047Continuity Correction(a)

2.474 1 .116

Likelihood Ratio 6.239 1 .012Fisher's Exact Test .092 .046Linear-by-Linear Association 3.868 1 .049

N of Valid Cases 50

a Computed only for a 2x2 tableb 1 cells (25.0%) have expected count less than 5. The minimum expected count is 2.40.

Here p value is small than the .05 so we will reject the H0 and accept the H1


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