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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).
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.
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
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
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 .
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.
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
__
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
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
__
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
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.
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
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
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
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
__
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
__
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
__
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
__
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.
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.
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
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