This review should bring all relevant facts about the subject and facilitate practitioners and highlight areas for further research. In short celebrity endorsement is about endorsing products with the help from a celebrity. Consumer association towards a celebrity endorsed produced increases their purchase intention as many see the celebrity as a role model. However, it is important that the consumer can identify with the celebrity and that the celebrity? s image fits with the produced he or she endorses, only then will celebrity backing be an effective advertising strategy. . 2. Background and Definition Nowadays, celebrities are used in advertising in almost every context. Athletes such as Michael Ballack (Adidas) or Tiger Woods (Rolex) or models such as Cindy Crawford (Omega) or Heidi Klum (Katjes) endorse several products. These celebrities act as a spokesperson in order to advertise and promote products (Kambitsis et al. , 2002).
Celebrities can create more positive responses towards advertising and greater purchase intentions than non-celebrity endorsers (Byrne et al. , 2003).
Using celebrity as an endorser for a given product can either be positive or negative for a company/brand. A campaign that turned out successfully was the campaign with Jamie Oliver as an endorser for the supermarket chain J. Sainsbury. The successful format of the TV production “The naked chef” provided an ideal platform to use for the advertising campaign within a context relevant for J. Sainsbury? s desire (Byrne, 2003).
The Research paper on Celebrity Endorser Influence
Celebrity Endorser Influence on Attitude Toward Advertisements and Brands Bahram Ranjbarian Associate Professor of management, Department of Management The University of Isfahan, Isfahan, Iran E-mail: Bahram1 Zahra Shekarchizade Master Student of Business Management, Department of Management University of Isfahan, Isfahan, Iran E-mail: Zahra Momeni Master Student of Business Management, Department ...
An example of a campaign that did not turn out successful was when J. Sainsbury used the actor John Cleese in the “value to shout about” campaign in 1998.
Employees and customers alike felt that Cleese was not the right personality to personify the supermarket’s quality image (Whitehead, 2003).
In the literature there are two different definitions of celebrity endorsers used. The definitions used are: “A celebrity endorser is an individual who is known to the public (actor, sports figure, entertainer, etc. ) for his or her achievements in areas other than that of the product class endorsed”. (Friedman, 1979, p. 63) “Any individual who enjoys public recognition and who uses the recognition on behalf of a consumer good by appearing with it in an advertisement”. McCracken, 1989, p. 310) In other words these definitions says that an individual who is known to the public in different ways. The individual is famous and utilizes his or her publicity to advertise a product that does not have anything to do with the individual fame. I consider McCracken? s definition as the most informative one as it is short and concise. The definition gives a clear view of what a celebrity endorser is. Previous studies have been done on consumers? response to celebrity endorsement in advertising.
Results of these studies show that celebrities make advertising believable and enhance message recall. Furthermore, when celebrities are recognized with brand names, it creates a positive attitude toward the brand and a distinct personality for the endorsed brand (Agrawal and Kamakura, 1995).
2. LITERATURE REVIEW In the following chapter the method used for this review will be introduced. The chapter will start with how a literature review is defined, followed by the literature search, method problems and quality standards. 2. 1. Definition of literature review
Conducting a literature review is about understanding a topic that has already been addressed, how it has been researched by other authors, and what the key issues are (Hart, 1998).
Consumer Behavior Literature Review
INTRODUCTION: Profile of students: 2014 was the year, which saw an increasing number of students of XLRI batch, belonged to Generation Z. The current students are the ones who were born into a digital world and they find it difficult remembering a time without the Internet, laptops and most importantly mobile phones. Also, they are used to process huge amounts of information using high speed ...
According to the author Chris Hart (1998) the definition of a literature review is the selection of available documents; both published and unpublished (in my review I will only study published academic documents), on the topic, which contains information, ideas, data and evidence written from a particular standpoint. 2. 2. Literature search, methodology used When searching for articles I used the databases Emerald, Ebsco and ProQuest.
These databases were used because of the highest ranked journals in the field of marketing were listed there. I used the article Journal quality list (2008) issued by Harzading. com, research in international and cross-cultural management. High ranked journals increase the validity of the thesis, as validity is defined as “The ability of a scale or measuring instruments to measure what is intended to be measured”(Zinkmund, 2000).
I also tried to find books relevant to the topic by using the library here at Les Roches International School of Hotel management as well as the library database google. scholar. . 3. Description of sub-topics Purchase intentions: Describes what impact the celebrity endorser has on the consumers purchase intentions. A consumer is more likely to purchase complex or expensive products which are endorsed by celebrities rather than by non-celebrities. Daneshvary and Schwer (2000) point purchase intention as an environment of associations between endorsement and consumer, depending if the consumer can identify with that association and purpose. Consumers? association to celebrity endorsement/endorser: How consumers associate/have a connection towards the celebrity endorsement/endorser.
If a company want a consumer to associate to an endorsed product it is important to choose an endorser who uses the product and where that use is a reflection of professional expertise (Daneshvary and Schwer, 2000).
A formula 1 driver endorsing helmets is good, while a tennis player endorsing car polish is less good (ibid).
Consumers? attitudes towards the endorser: The consumers? often have a positive attitude towards the product and the celebrity, despite the fact, that it is well known, that the endorser earned a lot when promoting the product (Cronley et al. 1999).
Effectiveness of celebrity endorsement/endorsers: How effective is the usage of celebrity endorsement. It is, most likely, more effective to use celebrity endorsement constantly to increase the strength of the link between the celebrity and the endorsed brand. It is also more effective to use a celebrity who is not associated with another product (Till, 1998).
The Essay on Products Services Advertising Product Consumer
Advertising, as deceptive as it may be, still plays a big role in our society. Advertising is supposed to give you information on products / services for the consumer's benefit. When looked at from all points of view (as a consumer) advertising is really a big scam. A scam that tries to elude, deceive, and persuade the consumer into thinking something is what it is not. Yes, it is true that there ...
Positive/negative effects of celebrity endorsement: the usage of celebrity endorsement can be both positive and /or negative, which can influence the company / brand in the end.
For example, using celebrities can be very costly; also, celebrities might switch to a competitor, which would then increase the risk of a negative impact (Agrawal and Kamakura, 1995).
However, in can be said that celebrities in advertising are widely spread and persistent and the marketing executives continue to utilize celebrity endorsement as an advertising strategy (ibid).
Profitability of celebrity endorsement: The use of celebrity endorsement will hopefully lead to increased profitability.
Case study with 99 students, who were shown different advertisings using the same celebrity endorserThe use of the same celebrity endorser to advertise for various products has got a negative impact on the efficiency of the ad, the product and the endorser. Atkin / Block (1983)Is celebrity endorsement effective in advertising and how does it influence customer purchase intentionsExperiment with 196 test persons, where each participant was shown 3 versions of an ad. Each version featuring a celebrity endorser and a non-celebrity.
Advertising using celebrity endorsement is under special conditions more effective than using non-celebrities. Choi et al. (2005)How can celebrities be used successfully in advertising? How effective is the recall-value and the emotional response to celebrity advertising? Experiment with different groups of test persons. Advertising with celebrities is more effective than using non-celebrities under special conditions. Sanbonmatsu / Kardes (1988)How does the credibility of a celebrity affect the consumer purchasing intention? Interviews with 542 persons.
Consumer purchasing intentions are more effected using celebrities than using non-celebrities. Tripp et al. (1994) How do consumers judge the celebrity endorsement, the ad and the brand, if the celebrity endorses various products? What are the effects on purchasing behaviour? First Study: interviews with 461 students. Second Study: Interview with 10 test persons. Simultaneous advertising trough the same celebrity has a negative effect on the ad, the product and the celebrity. Agrawal/Kamakura (1996)Which economical effects on advertising are there when using celebrities?
The Term Paper on The Effect of Celebrity Endorsement on Consumer Buying Behavior
... consumer makes the task of celebrity endorsement all the more difficult and challenging for the advertising companies and the sponsors. Indian companies both advertising and product ... image or persona of the celebrity endorser. Conclusion A brief assessment of the current market situation indicates, that celebrity endorsement advertising strategy can under the ...
Event-Study in regards to the effects on share prices trough the announcement of celebrity endorsementCelebrity endorsement can have a positive and a negative effect on share prices. Agrawal/Kamakura (1995)Can a single celebrity have a positive effect on the company? s value? Analysis of the share price of a company after announcing a celebrity endorserCelebrity endorsement can have a positive and a negative effect on share prices. Charbonneau / Garland (2005)How does a company find the right celebrity endorser for its products? Which criteria should be considered? Questionnaires: 414 marketing managers at 148 advertising companies.
The New Zealand study also discovered that the practitioners felt that celebrity endorsement could be a very effective promotional strategy, as long as there was an appropriate fit between celebrity /athlete, brand and message (ibid).
So called celebrities are often associated with a high status due to them being widely recognized within society as well as extra qualities and power attached to them trough repeated media exposure (la Eerie and Sejung, 2005).
Practitioners in New Zealand felt that using a credible and respected celebrity or athlete as the voice or message carrier was more effective than having an ordinary model (Charbonneau and Garland, 2005).
A study done by Friedman and Friedman (1979) indicated that celebrities are more effective in sustaining recall of the advertisement and the brand name of the product than using an expert or a typical consumer, regardless of the product.
If the most desired outcome has to be brand name and advertisement recall than a celebrity should be used as an endorser (ibid).
Celebrities in contrary to anonymous models add extra subtlety, depth and power to advertising (McCracken, 1989).
Anonymous models offer demographic information, such as distinction of gender, age and status but all these useful meanings are fairly imprecise and blunt. Celebrities however offer all these meanings with special precision and also add a range of personality and lifestyle (ibid).
The Review on Country of origin, consumer’s Perception and Brand Image
Introduction The impact of country of origin (COO) on the consumer’s perception of products has been one of the most widely studied areas of international marketing. Increasing globalization of today’s business has resulted in unprecedented problems for manufacturers, marketers, and consumers (L. Y. Lin & Chen, 2006). The country of origin (where a product is made) touches both ...
Principles that can be used when considering a more effective use of celebrities to enhance brand equity have been summarised by the author Till (1998) as follows: •Celebrity endorsement will be more effective when the advertising implementation is simple and clear of irrelevant facts. Focus lies on the celebrity and the brand together. •Celebrity endorsement will be more effective when used consistently over time to increase the strength of the link between the celebrity and the endorsed brand. •Celebrity endorsement will be more effective when using a celebrity who as the right fit for the endorsed brand. •Celebrity endorsement will be more effective when using a celebrity who is not associated with another product. Another point mentioned by the authors Choi et al. (2005) highlights the fact that domestic celebrities are more effective in delivering messages as consumers are more likely to identify with them due to sharing the same cultural values. Also, they are readily available and cost-efficient compared with internationally recognized celebrities (ibid).
A study by Kamins (1989) mentioned that a celebrity spokesperson was more likeable and believable than a non-celebrity spokesperson. The authors Choi et al. (2005) conducted a study in Korea which showed that many Korean celebrities endorse more than one product and therefore multiple endorsements in Korean advertising raise a concern about their effectiveness. In order to achieve the most efficient and effective strategy it is important to understand the mediating role of the celebrity endorser and to assess the credibility of the endorser carefully (le Eerie and Sejung, 2005).
. 2. The consumer The author McCracken (1989) describes a consumer as a person that constantly moves symbolic properties out of consumer goods into their lives to construct aspects of themselves and the world. They admire individuals who have accomplished it well and celebrities are a proof that it works. Arguably, the celebrities have once been where the consumer is going and has done what the consumer wants to do (ibid).
This highlights the importance of the customer when it comes to celebrity endorsements.
The Term Paper on Marketing Objective Consumer Product Model
Chapter 1 This chapter starts out by telling the reader that there are many different options for the ways that businesses can get their message out to consumers. Through various forms of communication, firms are able to establish and build a relationship with their customers. We then find the model of communication process. This is a model that describes the way that we encode and decode everyday ...
Therefore I will discuss in the following sub-topics the association between customers and the celebrity endorsement / endorser, the perception between brand / product and endorser as well as attitudes towards the endorser. 4. 2. 1. Association to celebrity endorsement According to the authors Daneshvary and Schwer (2000) celebrity endorsement is most effective when the celebrity is closely associated in the consumer? s mind with the product. At the same time consumers believe that celebrities share important values with them or they might want to copy the way a elebrity appears (Miciak and Shanklin, 1994).
The authors take the sample of Michael Jordan, a well known NBA basketball player, whom young teenage boys see as a role model and who “want to be like Mike” (ibid).
However, a limitation of the effectiveness of association endorsement is the extent to which the consumer associate with the endorsing body (celebrity) and the degree to which those consumers see the product advertised as connected to activities of that endorsed product (Daneshvary and Schwer, 2000).
The involvement of the consumer with the endorsing association is important.
Studies indicate that male celebrities are most commonly associated with visual plus verbal presentation style and female celebrities are associated more with a visual presentation (Stafford et al. , 2003).
Male endorsers are also associated more with products with functional benefits, whereby female endorsers are used more often for a product that has psychosocial benefits (ibid).
The authors Daneshvary and Schwer (2000) suggest that if companies really want to put emphasis on the consumer associating with the endorsed product it is important to choose an endorser that really uses the companies? roduct and where that use is a reflection of professional expertise. 4. 2. 2. Perception of association In 1987 the authors Burroughs and Feinberg mentioned that consumers learn the relationships between spokesperson (endorser) and products through exposure in advertising media. It is therefore very common for a product or brand to be associated with one celebrity endorser over a period of time (Hsu and McDonald, 2002).
The way of how the celebrity and the product match each other plays a huge importance (ibid).
A critical moment for marketing managers is to select the right celebrity for the endorsement (Martin, 1996).
The most important key to success is to choose a well-known, well-liked celebrity to make a memorable endorsement advertising (ibid).
New Zealand practitioners acknowledge that positive consumer attitudes towards the celebrity could be transferred to the brand (Charbonneau and Garland, 2005).
According to the author McCracken (1989) it is important to choose celebrities who best represent the appropriate symbolic properties when using celebrity endorsement.
After choosing the celebrity an advertising campaign must then identify and deliver these meanings to the product, it should capture all meanings that it wishes to get from the celebrity and leave no relevant meanings unused. Ultimately the connection between the celebrity and product suddenly is seen by the consumer, who then is prepared to accept that the meanings in the celebrity are in the product (ibid).
However, the consumers? ssociation for a given brand will vary from one consumer to another as it is depended on the consumer’s knowledge structure of the brand (Till, 1998).
Attractive celebrities are more often associated with greater product recall (Kahle and Homer, 1985).
If the celebrity used for an endorsement becomes associated with several products the overexposure makes the relationship between the endorser and each of the products involved less distinctive, which then could lead to less positive influences towards the endorser (Choi et al. , 2005).
4. 2. 3. Attitudes towards the endorser
Despite the fact that consumers are well aware that the celebrity used for the endorsement has been paid a fair amount of money, the consumer still keeps positive attitudes towards the product and celebrity endorser (Cronley and Kardes et al. , 1999).
An alternative explanation offered by the authors for this is that the consumers assume that the celebrity endorser likes the product whether they endorse it or not. According to Cronley and Kardes et al. (1999) consumers assume this without even seeing an advertising featuring the celebrity. The moment the celebrity? brand attitude became more favourable, consumers? attitudes toward the brand, the ad and the endorser increased in favourability (ibid).
4. 3. Positive or negative effects of celebrity endorsement In 1995 Agrawal and Kamakura suggest that there are decreasing returns associated with celebrities in advertising due to various reasons: a) the costs associated with celebrity endorsement are rising b) some celebrities endorse several products, at times switching to rival brands c) negative publicity generated by some celebrities has added a potential risk of egative impact on the product / brand and d) surveys of consumer reactions to product endorsement reveal that only a fraction of consumers react positively to endorsements (ibid).
Celebrity endorsement has become a usual tool in advertising but those who choose to use a celebrity for their campaign have no control over the celebrity? s future behaviour (Till and Shrimp, 1998).
Hence, any negatives about the celebrity can reduce the appeal of the brand that the celebrity endorses.
The risk is much greater for new brand in the market because of the associations to the brand is relatively low and also because the celebrity is the primary attribute on which the consumer gets a concept of the brand (ibid).
The authors go as far as saying that marketing managers in the past dumped their celebrity endorsers, who were linked to a negative impact, in order to save the brand and because they feared consumers? retribution. As mentioned above it is always a risk to use a celebrity when the companies cannot control their private life therefore it is important to be careful during the selection process.
Also the time span of endorsers needs to be considered, e. g. a football player has a shorter career than an actor (Charbonneau and Garland, 2005).
Moving on to the authors Tripp et al. (1994) a celebrity who endorses many products might have negative influence on consumers? perceptions of the endorsers? credibility, likeability and attitude towards the ad. The celebrity endorsement is much more effective when using a celebrity that is not associated with another product or service already (Till, 1998).
Still, the use of celebrity in advertising is widespread and persistent and the marketing managers continue to believe in that celebrity endorsements are a worthwhile component of the advertising strategy, despite the cost that are involved (Agrawal and Kamakura, 1995).
Surveys have also been done that clearly indicate a positive impact of celebrity endorsement on expected future profits. Firms announcing contracts with celebrity endorsers have recorded a gain of 44 % excess returns on their market value (ibid).
Agrawal and Kamakura (1995) have also conducted studies on the effectiveness of celebrity endorsements that provide characteristics of celebrities that consumers view positively. One example of a positive advertising campaign is the one for the grocery chain J. Sainsburys that features the well-known TV-chef Jamie Oliver (Byrne et al. , 2003).
It shows him, Jamie Oliver, shopping for ingredients in Sainsbury`s stores (see cover page picture) and then cooking for friends.
The main reason choosing him as the face for this campaign is that he will provide good recognition towards the brand, because he is associated with the preparation of great food (ibid).
4. 4. Purchase intentions According to the authors Sanbonmatsu and Kardes (1988) it appeared that consumers are more likely to purchase a product when it was described with a strong argument rather than by a weak argument. Furthermore the study showed that individuals exposed to the ad featuring the celebrity did not differ from subjects exposed to the ad featuring non-celebrity in their willingness to purchase (ibid).
Tripp et al. (1994) argue that the number of exposures to the celebrity endorser have a negative impact on the purchase intention. When making a purchase intention consumers pass through several stages (Burroughs et al. , 1987).
First they learn something about the product advertised, modify their attitudes on the foundation of that learning, and the act on their revised attitudes (ibid).
5. CONCLUSION Whilst the process of using celebrity to endorse a product is fairly clear cut for manufacturers, an issue for retailers is that of the physical in-store properties and experiences.
Unless the store images reinforce the attributes conveyed by the celebrity endorser then in-store personnel will reduce the effectiveness of the campaign (Byrne, 2003).
The challenge lies in the acquisition and matching of the best celebrity to endorse a company? s product and brand (ibid).
A key element in this process is to use endorsers who have international credibility that is recognized across world markets. Typically such kinds of endorsers have come from the field of sport or music and have endorsed single product brands. Consumers do not need to be aware of the endorsers? kills but recognise that others regards them as leaders in their field e. g. Michael Jordan in the field of basketball (Miciak and Shanklin, 1994).
The main task of the marketer then becomes ensuring that the international endorsers` brand image does not become overstretched or overpowers the product image in any way.
This research could be of good use for companies who would like to start utilizing celebrities in advertising, as important facts about the subject are gathered in this literature review. It has been written with two perspectives in mind, the consumer? as well as the company? s. By reading this literature review a company can get a clear view of this advertising strategy highlighting positive and negative effects. Companies can also learn how celebrity endorsement affects the consumer, how their associations to the product / brand can be and how this strategy influences the consumer purchase intention. 5. 2. Implications for further research The resources available very much focus on the use of celebrities from the fields of acting or sporting; however, there was one academic source available which included a celebrity chef (Jamie Oliver).
Therefore further research is required in this particular field of chefs advertising for food products as athletes or actors mainly do advertisings for a single product. Moreover, in order to have a more accurate finding research in other countries than the United Kingdom is recommended.
