2015-01-17 mr final reportx 1

Marketing Research

Project: Impact of Celebrity Endorsement on Consumer Buying Behaviour

SUBMITTED BY:

Atif Raza 13E00088

Fahad Ashraf 13E00003

Sara Samdani 13E00097

Nadia Mahmood 13E00096

Rana Sohail Ahmed 13E00075

Lahore School of Economics

Intersection Main Boulevard, Phase VI DHA, Burki Road Lahore53200, Pakistan.

2015

MARKETING RESEARCH

Impact of Celebrity Endorsement on Consumer Buying Behaviour

Management Decision Problem:

Does Celebrity cast an impact on consumer while purchasing a product?Content:

Abstract

Introduction

Literature Review

Methodology / Frame Work

MR Questions

Hypothesis

Research Design

Tables Research Variables & Key Findings

Sample Design

o Factor Analysis

o Reliability Analysis

o Regression

Cross Tabs

Conclusion

Appendixs ABSTRACT

Now a days celebrities are face of every brand just because their suggestions are more likely to have effect on consumers decision making and at the same time their pleasant personality also plays a dominant role in this regard. In order to persuade and create preference for a particular Brand/Product Celebrity endorsement is a smart marketing strategy. Former researches have proved this fact that a celebrity does cast an impact on consumer while purchasing a product. This research also tries to investigate the above mentioned phenomena through Exploratory Research i.e. focus group and conclusion research through survey method and by testing the developed hypothesis.INTRODUCTION

Brand is one of the major parts of marketing. Companys brand or label is basically used to form brand identity. It helps consumers to identify the product. It has various forms for example it can be a name, sign, symbol, celebrity endorsement, term and design. Brands major function is to differentiate the product from competitors. Marketers use brands in order to communicate its marketing message to the targeted consumers. Effective and successful branding helps to create more awareness amongst customers and hence generate more profit. Brand also helps consumers to make choices and facilitates decision making process.

In todays global market, the marketers are facing immense competition from the competitors. Companies try to grab their interest through diverse ways. Every day, a usual buyer come across thousands of captured images, content in newspapers and magazines; they are exposed to also se advertisements on a number of billboards, television shows, radio programs, internet banners and many other forms of communication channels, in this clutter of advertisements and the immense competitive environment, the marketer is only able to catch little attention of the customer. In that scenario, availability of brands helps company to convey unique features of the product to the target potential customers.

Analyzing consumer behavior is the major task of marketers. Marketers are constantly evaluating consumer buying pattern. They engage themselves among number of marketing principals. Similarly, consumers also do the same; they identify their need, choose amongst alternatives and finally decide what to buy and what not to buy. . As the selection of a brand being chosen by a customer depends on various factors such as age, gender, social group, ethnicity, race, etc. Accordingly, marketers use different tactics to target and influence different groups of customers .One of the tactics used by marketers is endorsement of celebrity for a product.

Celebrities are people who have general acceptance by all in the form of awareness between the general public for their achievements in various fields. In todays world endorsements are a means of communication from the brands in which the endorsing celebrity is the brands representative and they thus verify the labels or the brands promise and stance by associating it with their individuality, based on their standing in the society or the know-how in the relevant products. As in todays global environment the brands face local, regional and international competition, celebrity endorsement is considered as a very effective means of differentiation and communication.During the 1870s, when Reverend Henry Ward Beecher was seen in an advertisement in Harpers Weekly in which he endorsed Waltham watches, since that time labels and brands have used popular characters and celebrities in order to distinguish and as well as market their products to consumers. Cigarette industries first started employing entertainment personalities in 1905. In 1934, Lou Gehrig was the first athlete endorser to appear on the Wheaties box. Since then, celebrity endorsements has become a widely used marketing tool for products like cosmetics, sports goods, fashion apparel, watches, cars, etc.

In the current busy and fast moving life, people tend to ignore a lot of advertising and marketing tactics used by companies. The presence of a celebrity hardly ever goes unseen. This implies that endorsements by famous personalities and its effect are of prime importance to companies. How celebrity endorsements affect the customers choice of brands is what we will find out in our research.

We have chosen this topic because in todays world we are exposed to different brands and we have to make choices. Brand chosen by one might not be chosen by another and how celebrity endorsement affects these choices in consumer buying behaviour is what we will find in our research.

This research report aims to investigate how celebrity endorsement affects the consumer buying behaviour.COMBINED LITERATURE REVIEW

In this summary we are going to sum up all the summaries of different empirical research articles which we reviewed related to Impact of Celebrity endorsement on consumer buying behaviour. The following articles were read in detail and summarized:

Impact of celebrity endorsement on Teenagers Impulsive buying behavior.

Impact of Celebrity Endorsement on Brand Image: A Communication Process Perspective on 30 Years of Empirical Research.

Effect of celebrity endorsement on customers buying behavior; a Perspective from Pakistan.

Celebrity Attributes and Influence on Consumer Behavior A Study of Shekhawati Region of Rajasthan.

The impact of celebrity endorsement on consumer behavior and attitudes.

A study on the influence of using celebrity Endorsements on consumer buying behavior in Tamil Nadu, India.

Impact of Celebrity Endorsements on Brand Equity.

Celebrity Endorsements And Brand Personality 11mb Working Paper No.2009-09-289

How marketers can use celebrities to sell more effectively. H.pringle (2005)

The effect of celebrity endorsement on consumer buying behavior j horne (2006)

In todays world there are different kinds of target market which a marketer has to cater or attract in order to know how their market consumes, what are their buying patterns, what is the motivation behind ?, what really influences the consumer?. In one of our article the researcher studied the impact of celebrity endorsement on teenagers impulsive buying, since teenagers are most unpredictable and volatile in nature and they are greatly influenced by their favourite celebrities or idols and make their purchase accordingly.

The researcher developed and tested the hypothesis i.e. teenagers impulsive buying has a positive relation with celebrity endorsement which was later on accepted and proved that youngsters buying behaviour is widely influenced by the celebrity endorsement and they also follow the trends and style statements followed by those celebrities.

While studying the impact of celebrity endorsement on brand image the researcher found out after investigating preselected 36 research papers that celebrity characteristics i.e. credibility,

good looks and the communication channel plays an important role in effecting the brand image and also plays a role of communication device between the consumer, celebrity and the particular product/brand and change their buying behaviour so in this regard managers should pay attention to these above mentioned influencing factors and plan their marketing activities accordingly.

In the following articles we came to know after reviewing that celebrity endorsed advertisement are more powerful than non-endorsed advertisement and people are more intended to buy those products which are matched with the celebritys personality traits. Non-celebrity endorsed advertisement doesnt persuade the consumers to buy certain brands. In another article researcher shed light that celebrity who is controversial or his/her profession doesnt affect the buying intention much. People belonging to middle class or lower middle class are more persuaded by the celebrities. Marketers often use this marketing technique when they introduce a new product to the people. Due to celebrity endorsements they get more information about the product/service and it also helps them to memorize and recognize the brand because it creates distinctive position in the mind of the consumer. Brand equity is also increased through celebrity endorsement because it helps to build a brand image in the market and create preference for the brand among the consumers.

Sometimes multiple endorsements also create a positive impact on the product and people are more likely to buy it. According to one of the article findings demographics and psychographics of the celebrity also plays a massive role in influencing the customers. People would be more willing to buy those products that are endorsed by the celebrities who belong to their country region because it makes a strong connection between the audience and the endorser.METHODOLOGY

FRAME WORK

Celebrity endorsement

Brand

Image

(Independent Variable)

Moderating variable

Celebritys Gender


Consumer Buying

Celebrity Personality

Behaviour


Brand Quality(Dependent Variable)

(Mediating

Variable)

Corporate Social

Responsibility (Independent

Variable)

Promotion Recall(Independent Variable)

Brand Loyalty(Independent Variable)Marketing Research Questions

What is the impact of celebrity endorsement on consumer buying behavior?

Does celebritys personality influence the consumers buying behavior in a positive or negative way?

Does Celebrity endorsement entail brand loyalty

Is advertisement of the particular brand without celebrity endorsement is more persuasive than the advertisements with celebrity endorsement? HYPOTHESIS

Celebrity Endorsement:

H1: celebrity endorsement has significant effect on consumer behaviour

Celebrity Personality:

H1:Celebrity personality has significant effect on consumer behaviour

Celebrity's Gender:

H1: Celebrity's gender has significant effect on consumer behaviour

Brand Loyalty:

H1: Brand Loyalty has significant effect on consumer behaviour

Corporate Social Responsibility:

H1: Corporate Social Responsibility has significant effect on consumer behaviour

Promotional Recall:

H1: Promotional Recall has significant effect on consumer behaviour

H2: Advertisement without celebrity endorsement has significant effect on consumer buying behaviour

H3: Advertisement with celebrity endorsement has significant effect on consumer buying behaviour RESEARCH DESIGN

Classification

We will be using both Exploratory and Conclusive research. We have already conducted the exploratory Research i.e. Focus Group, Depth interviews, but in order to quantify and conclude it we are using conclusive research.

Research Methods

There are multiple research methods based on the classification. Following research methods will be used based on the exploratory and conclusive research respectively:

Focus group and depth interviews are conducted for exploratory research.

Questionnaires and hypothesis will be taken as a medium for conclusive research.

Research Type

Our research type will be causal since we are intended to study the impact of celebrity

endorsement on consumer buying behaviour.

Descriptive Research

In Descriptive Research we will be doing:

Cross-sectional Research

o Multiple Cross Sectional ResearchTABLE 1 Research from(Focus group and interviews)

Expected Relationships

VARIABLECONCEPTUALOPERATIONALSIGN

KEY FINDINGS

DEFINITIONDEFINITION

1. ConsumerThe term consumerDo you purchase+veYes celebrity does influences

Buyingbehaviour refers tothe product because

the buying behavior, like one

Behaviourthe behaviour thatcelebrity is

of our respondent mentioned

(Dependentconsumer shows inendorsing it?

that he always pauses and see

Variable)probing for,

the recent advertisement of

buying, using,What influences

the Mobilink and bought that

comparing andyou while making a

GPRS services by getting

disposing thepurchase?

influenced by ad

product/service

which they think

Celebrity endorsement gives a

will fulfil their

sense of an identity to the

needs and wants. It

brand which influences the

emphasis on how

buying behavior. e.g, in

people make

LOreal shampoo

decisions regarding

advertisement they have used

spending their

Ashwariya Rai who is an

existing scarce

actress, she has become the

resources i.e. time,

identity of LOreal as a brand.

money, effort). It

gives answers to

the questions like

Celebrity endorses the

what, when, where,

product just to make

how, how often the

themselves prominent in eyes

user purchases and

of the audience and in that

uses the product/

case it doesnt affect the

services.

consumer buying behavior.

2. CelebrityA celebrityDo you know what+veWhile listening to the

endorsementendorsement is ancelebrity

discussion of our respondents

(Independentappeal by celebrityendorsement is?

we came to know that they

Variable)or a referenceWhy it is done

were well aware of celebrity

person in order towhile marketing a

endorsement.

attract theproduct?

customer. It is anDo you think that

Celebrity endorsement is

effective way of

done in marketing a product

communicating andcelebrity gives a

because it is a very clever

creating preferencetrue picture of the

tactic played on the part of the

with the customerproduct through

firms to attract the consumers;

for the specificadvertising i.e.

they take you in the world

features, benefits

psychologically where you

product/service.and its

want to be by creating the

information?

association with a certain

Do you think

celebrity who is very popular.

E.g. LOreal with Ashwariya

celebrity

Rai.

endorsement

motivates you to

Celebrity endorsement does

purchase the

plays role in creating

product?

awareness for the new

Do you think

brand/product, sometimes

advertisers use celebrity in the

investing large

advertisement just to make

amount of money

people noticed about the

in celebrity

product which is new e.g. Q-

endorsement helps

Mobile advertisement they

the company in

used Kareena and sonam

generating total

Kapoor, to create a hype and

revenue?

tell them that there is another

What do you think

smart phone brand in the

Pakistan.

that does celebrity

uses the product

Celebrity endorsements affect

the one which are

the buying behavior

endorsing?

according to product

categories.

Celebrity endorsement only

builds a strong and loyal

relationship between the

buyer and the product only if

it actually satisfies and fulfills

their expectations in real

terms.

3. Celebrity

Who is your+veFavorite celebrity does

Personality

favourite celebrity

influences the buying

(Real)

personality?

behavior, like one of our

Independent

respondents mentioned that

Variable

he always pauses and sees the

recent advertisement of the

Mobilink because his favorite

actress is in it.

One of the respondents

indentified that he is wearing

Tag Heuer not just because

Shahrukh khan endorses it

who is his favorite actor, but

because of its design and

suitable price.

4. Gender

Is female celebrity+ve Yes gender of the celebrity

(independent

more persuasive?

plays an important role in

Variable)

influencing consumers buying

behavior.

5. BrandConsumer considerDo you think that+ve Some of our respondents said

Qualitybrand as a qualitythe products-ve

that they buy certain brands

(Independentbrand when itassociated with the

or products not just because

Variable)fulfils the needscelebrity are of

there is a celebrity in the

and wants in a bestgood quality?

particular products

possible manner

advertisement; they buy it

through its

because they actually like the

features,

product which is according to

Services and

their needs and satisfies them

by giving value in both terms

offerings. When

i.e. monetary and quality.

product or brand

One of the respondents

meets or is above

shared her experience with a

then the

shampoo (panteen) the

expectations of a

product didnt bring desired

consumer it is

results to the respondent so

perceived as high

she will not buy it again and

quality brand and

she calls it aggregation which

this thing will lead

negatively impacts the buying

to brand loyalty

behavior of the consumer.

and helps

companies to earn

revenues.

6. CorporateIt is a responsibilityDoes celebrity+veCelebrities can just play a supportive

Socialof an organizationplays a role in

role to the brand in creating its Brand

Responsibilitthat the businessimproving the

Image. In recent advertisement of life

ythey do must havesociety while

boy which is a germ killing soap.

(Independentactions whichendorsing a brand?

Example :

Variable)create positive

reactions ethically,

Shahid Afreedi is running the clean

socially and should

sweep campaign to make children

be environment

aware about the importance of

friendly. For

cleanliness; so he is playing a

example Shahid

supportive role in highlighting the

Afreedi is

key benefits of Dettol. So this action

promoting Dettol

is creating awareness about

clean Pakistan

cleanliness in the society.

campaign so by

this way the soap

brand Dettol is

giving message of

cleanliness which

is an environment

friendly action.

7. BrandBrand loyalty is theDoes celebrity+veA celebrity endorsement only

Loyaltyfaithfulness shownendorsement

builds a strong and loyal

by a consumerdevelops strong

relationship between the

towards a brand orrelationship with

buyer and the product only if

product throughthe customer and

it actually satisfies and fulfills

repeat purchases.makes you

their expectations in real

Brand loyalty isrepurchase and

terms.

affected by thebrand loyal?

preferences of

If a product meets the

consumer which

consumer expectations then

they have set in

consumers will become repeat

mind and they

purchasers.

make repeat

purchases of a

particular brand

regardless of

affordability and

accessibility.

8. Promotion

Does celebrity+ve Well celebrity does impact

Recall

endorsement help-vethe promotion recall through

(Independent

in brand

advertisement; people do

Variable)

promotion?

remember those add in which

a famous celebrity has been

How often you

used.

purchased on

celebrity

But sometime if the

endorsement

advertisements concept is not

promotion recall?

good and but has a celebrity

in it, it doesnt get consumers

attention and no purchase is

been made also.

9. BrandThe term brandDoes celebrity+ve The way an advertiser

Imageimage refers toendorsement help-veportrays the celebrity in the

extrinsic elementsin building the

advertisement they do

of product/servicesbrand image?

influence the consumer e.g. in

through which a

LOreals advertisement they

brand attempts to

have associated Ashwariya

fulfil consumersDoes the

Rai, achievement and power

psychological and

with the shampoo they have

congruence of

social needs.

associated the current

celebrity

performance and status of the

personality and

Ashwariya with LOreal and

brand image is

this is how they are creating

important?

preference for the branded

brand image, she has become

the identity of LOreal as a

brand and people associate

this brand with Ash.

Personality traits of a

celebrity should be match

able with the brand /product.

It depends on the

Brand/Product if product

itself is very good then

celebrity doesnt play a much

influential role, it just plays a

supportive role to the brand in

creating its Brand Image.

ImpulsiveRook (1987)Do you think+ve Respondents were of that they

Buyingdefined Impulsivecelebrity

will be more influenced and

Behaviourbuying where aendorsement

would like to buy FMCG if it

(dependent)consumercreates impulsive

is endorsed by a celebrity

experiences abuying?

rather than a telecom sector

sudden change,

product.

often a very strong

Respondents were more likely

and permanent urge

to immediately buy

to show impulse buying

something. It is an

behavior in non-durable

unplanned

goods

purchase that is

characterized by

relatively rapid

decision-making, a

subjective bias in

favour of

immediate

possession.

SAMPLE DESIGN

Following are the characteristics of our sample design:

Sample Size =100

Target Market

Adults

Teenagers

Students

Sampling Technique

Following sampling technique will be used in this research since we will not repeat the same sampling unit.

Sampling without replacement

Classification of sample technique

Our sampling technique will be classified as

Probability Simple random sampling

Data Collection

We will be collecting both Primary Data (Focus group and survey) and Secondary Data (Literature Review)

Instrument

The Measuring instrument will be

Questionnaire

Scaling

We will be scaling our questionnaire using LIKERT SCALE, which will be a five point scale ranging from 1= strongly agree to 5=strongly disagree1. FACTOR ANALYSIS

KMO Test

Kaiser-Meyer-Olkin Measure of Sampling.685

Adecuasy.

INTERPRETATION

The KMO value is used to predict if the sample is adequate. A KMO value closer to 1 is considered to be better. Here the value of 0.685 shows that the factor analysis can be done as this value is greater than 0.5.

2. RELIABILITY TEST

SCALE: All Variables

Case Processing Summary

N

%

CasesValid

100

100.0

Excludeda

0

.0

Total

100

100.0

a. Listwise deletion based on all

variables in the procedure.

Reliability Statistics

Cronbach's

AlphaN of Items

.651

14

INTERPRETATION:

The Cronbachs Alpha is the coefficient of consistency. It tells about the consistency of the data. Its value lies between zero to 1. A value which is closer to one shows greater reliability.Cronbachs Alpha value for the variables came out to be 0.651 which is closer to 1. This means that all variables used are internally consistent and reliable.3. REGRESSION

Q1.

b

Variables Entered/Removed

VariablesVariables

ModelEnteredRemovedMethod

1Brands

endorsed

by

celebrities

are easier

to.Enter

recognize

than those

endorsed

by

non-celebr

a

ities.

All requested variables entered.

Dependent Variable: Celebrity endorsement influences the consumer buying behavior

b

ANOVA

Sum of

Model

Squaresdf

Mean SquareFSig.

1Regression22.3681

22.36832.359.000a

Residual67.74298

.691

Total90.11099

Predictors: (Constant), Brands endorsed by celebrities are easier to recognize than those endorsed by non-celebrities.


Coefficientsa

UnstandardizedStandardized

CoefficientsCoefficients

Model

BStd. ErrorBetatSig.1(Constant)1.238.209

5.920.000

Brands endorsed by

celebrities are easier

to recognize than.508.089.4985.688.000

those endorsed by

non-celebrities.

a. Dependent Variable: Celebrity endorsement influences the consumer buying behaviorINTERPRETATION:

R is the coefficient of correlation. The value of R2=0.241 indicates that 24.1% variation in the dependent variable i.e Consumer Buying Behavior is explained by the independent variable i.e. Celebrity Endorsement. From the ANOVA table it can be seen that the p value is less than 0.05 so there is significant relationship between the two variables. Therefore we will accept our Hypothesis H1.

Q2.

b


Variables

Variables

Model

Entered

RemovedMethod

1

I usually

purchase

the product

which is

.Enter

endorse by

my favorite

a

celebrity

a. All requested variables entered.

b. Dependent Variable: Celebrity endorsement

influences the consumer buying behavior

Model Summary

Adjusted

Std. Error of

Model

R

R Square

R Square

the Estimate

1

.421a

.177

.169

.86990

a. Predictors: (Constant), I usually purchase the product

which is endorse by my favorite celebrity

b

ANOVA

Sum of

Model

Squares

df

Mean Square

F

Sig.

1Regression

15.951

1

15.951

21.078

.000a

Residual

74.159

98

.757

Total

90.110

99

a. Predictors: (Constant), I usually purchase the product which is endorse by my favorite celebrity

b. Dependent Variable: Celebrity endorsement influences the consumer buying behavior

Coefficientsa



Model

BStd. ErrorBetatSig.1(Constant).964.310

3.112.002

I usually purchase the

product which is endorse.415.090.4214.591.000

by my favorite celebrity

a. Dependent Variable: Celebrity endorsement influences the consumer buying behavior

INTERPRETATION

R is the coefficient of correlation. The value of R2=0.169 indicates that 16.9% variation in the dependent variable i.e Consumer Buying Behavior is explained by the independent variable i.e. Celebrity Personality. From the ANOVA table it can be seen that the p value is less than 0.05 so there is significant relationship between the two variables. Therefore we will accept our Hypothesis H2 and reject Ho.

Q3.

b


VariablesVariables

ModelEnteredRemovedMethod1Female

celebrity

influences

more as.Enter

compared

to male a

celebrity

a. All requested variables entered.b. Dependent Variable: Celebrity endorsement influences the consumer buying behavior

Model Summary

AdjustedStd. Error ofModelRR SquareR Squarethe Estimate1.072a.005-.005.95638

a. Predictors: (Constant), Female celebrity influences more as compared to male celebrity

b

ANOVA

Sum of

Model

Squares

df

Mean Square

F

Sig.

1

Regression.4731

.473

.517

.474a

Residual89.63798

.915

Total90.11099

a. Predictors: (Constant), Female celebrity influences more as compared to male

celebrity

b. Dependent Variable: Celebrity endorsement influences the consumer buying

behavior

Coefficientsa

Unstandardized

Standardized

Coefficients

Coefficients

Model

B

Std. Error

Betat

Sig.

1

(Constant)

2.172

.239

9.085

.000

Female celebrity

influences more

.063

.088

.072.719

.474

as compared to

male celebrity


INTERPRETATION:

R is the coefficient of correlation. The value of R2=-0.005 indicates that only -0.5% variation in the dependent variable i.e Consumer Buying Behavior is explained by the independent variable i.e. Celebrity Gender. From the ANOVA table it can be seen that the p value is greater than 0.05 so there is not a significant relationship between the two variables. Therefore we will accept the null hypothesis Ho and reject H3.Q4.

b


VariablesVariables

ModelEnteredRemoved

Method

1Celebrity

endorsem

ent

develops

strong

relationshi

p with the.

Enter

customers

and

makes you

repurchas

e and

branda

loyal?




Model Summary

AdjustedStd. Error of

Model

R

R Square

R Squarethe Estimate

1

.426a.182

.173

.86736

a. Predictors: (Constant), Celebrity endorsement

develops strong relationship with the customers and

makes you repurchase and brand loyal?

b

ANOVA

Sum of

Model

Squares

df

Mean SquareF

Sig.1Regression

16.384

1

16.38421.778

.000a

Residual

73.726

98

.752

Total

90.110

99

a. Predictors: (Constant), Celebrity endorsement develops strong relationship with the customers and makes you repurchase and brand loyal?


Coefficientsa



ModelBStd. ErrorBetat

Sig.

1(Constant)1.100.277

3.966

.000


develops strong

relationship with the.452.097.4264.667

.000

customers and makes

you repurchase and

brand loyal?


INTERPRETATION:

R is the coefficient of correlation. The value of R2=0.173 indicates that 17.3% variation in the dependent variable i.e Consumer Buying Behavior is explained by the independent variable i.e. Brand Loyalty. From the ANOVA table it can be seen that the p value is less than 0.05 so there is a significant relationship between the two variables. Therefore we will accept the hypothesis H4.

Q5.

b


VariablesVariables


1Celebrity

gives a

true picture

of the

product

through

advertisem

ent,.Enter

Celebrity

endorsem

ent helps

in

capturing

the

attentionaof

masses


Model Summary

Adjusted

Std. Error of

Model

R

R Square

R Square

the Estimate

1

.343a.117

.099

.90544

a. Predictors: (Constant), Celebrity gives a true picture of

the product through advertisement, Celebrity

endorsement helps in capturing the attention of

masses

b

ANOVA

Sum of

Model

Squares

df

Mean Square

F

Sig.

1Regression

10.587

2

5.293

6.457

.002a

Residual

79.523

97

.820

Total

90.110

99

a. Predictors: (Constant), Celebrity gives a true picture of the product through

advertisement, Celebrity endorsement helps in capturing the attention of masses


behavior

Coefficientsa


Coefficients

Coefficients

Model

B

Std. Error

Beta

t

Sig.

1

(Constant)

.797

.451

1.767

.080


helps in capturing the

.386

.123

.308

3.137

.002

attention of masses

Celebrity gives a true

picture of the product

.242

.098

.242

2.464

.015

through advertisement


INTERPRETATION

R is the coefficient of correlation. The value of R2=0.099 indicates that 9.9% variation in the dependent variable i.e Consumer Buying Behavior is explained by the independent variable i.e. Promotional Recall. From the ANOVA table it can be seen that the p value is less than 0.05 so there is a significant relationship between the two variables. Therefore we will accept the hypothesis H6.Q6.

b


Variables

Variables

Model

Entered

RemovedMethod

1

My

chances of

buying a

mobile

telecom

brand are

.Enter

higher

when a

celebrity

endorses

a

it.




Model Summary

Adjusted

Std. Error of

Model

R

R Square

R Square

the Estimate

1

.175a

.030

.021

.94418

a. Predictors: (Constant), My chances of buying a mobile

telecom brand are higher when a celebrity endorses it.

b

ANOVA

Sum of

Model

Squares

df

Mean Square

F

Sig.

1Regression

2.746

1

2.746

3.080

.082a

Residual

87.364

98

.891

Total

90.110

99

a. Predictors: (Constant), My chances of buying a mobile telecom brand are higher when a celebrity endorses it.


Coefficientsa



ModelBStd. ErrorBetatSig.


6.267.000

My chances of buying a

mobile telecom brand.146.083.1751.755.082

are higher when a

celebrity endorses it.


INTERPRETATION

R is the coefficient of correlation. The value of R2=0.021 indicates that only 2.1% variation in the dependent variable i.e. Consumer Buying Behavior is explained by the independent variable i.e. Celebrity Endorsement. From the ANOVA table it can be seen that the p value is greater than 0.05 so there is not a significant relationship between the two variables. This result is insignificant specifically with respect to mobile and telecom brands which are being endorsed by celebrities.Q7.

b


Variables

Variables

ModelEntered

RemovedMethod

1Coke

doesn't

rely on

celebrity

endorsem

ent. Do you

think they

really need

to change

their

advertising

strategy?,

In Dove's

.Enter

advertisem

ent there is

no

celebrity in

it. Do you

thing their

advertisem

ents are

enough

persuasive

for thea

consumer.

All requested variables entered.


Model Summary


a. Predictors: (Constant), Coke doesn't rely on celebrity endorsement. Do you think they really need to change their advertising strategy?, In Dove's advertisement there is no celebrity in it. Do you thing their advertisements are enough persuasive for the consumer.

ANOVAb

Sum of

Model

Squares

df

Mean Square

F

Sig.

1Regression

1.335

2

.668

.730

.485a

Residual

88.775

97

.915

Total

90.110

99

a. Predictors: (Constant), Coke doesn't rely on celebrity endorsement. Do you think

they really need to change their advertising strategy?, In Dove's advertisement there

is no celebrity in it. Do you thing their advertisements are enough persuasive for the

consumer.


behavior

Coefficientsa



Model

B

Std. ErrorBeta

t

Sig.

1

(Constant)

2.098

.407

5.149

.000

In Dove's advertisement

there is no celebrity in it.

Do you thing their

-.040

.097-.042

-.415

.679

advertisements are

enough persuasive for

the consumer.

Coke doesn't rely on

celebrity endorsement.

Do you think they really

.091

.083.111

1.093

.277

need to change their

advertising strategy?


INTERPRETATION

There are some brands which do not use celebrity endorsement for the purpose of marketing their brands. The above test was carried out to find out whether the presence or absence of celebrity endorsement will affect the buying behavior in this case. The value of R2=-0.005 indicates that only -0.5% variation in the dependent variable i.e Consumer Buying Behavior is explained by the independent variable i.e. Celebrity Endorsement in this case. From the ANOVA table it can be seen that the p value of 0.485 is also greater than 0.05 so there is a no significant relationship between the variables.Q8.

b


VariablesVariables

Model

EnteredRemovedMethod

1

Celebrity

endorsem

ent helps

.

Enter

in building

the brand

a

image




Model Summary

Adjusted

Std. Error of

Model

R

R Square

R Square

the Estimate

1

.347a

.120

.111

.89946

a. Predictors: (Constant), Celebrity endorsement helps in

building the brand image

b

ANOVA

Sum of

ModelSquares

df

Mean Square

F

Sig.

1Regression10.826

1

10.826

13.381

.000a

Residual79.284

98

.809

Total90.110

99

a. Predictors: (Constant), Celebrity endorsement helps in building the brand image


behavior

Coefficientsa

Unstandardized

Standardized

Coefficients

Coefficients

Model

BStd. Error

Beta

t

Sig.

1

(Constant)

1.489

.247

6.034

.000


helps in building the

.433

.118

.347

3.658

.000

brand image

a. Dependent Variable: Celebrity endorsement influences the consumer buying behaviorINTERPRETATION

The value of R2=0.111 indicates that 11.1% variation in the dependent variable i.e Consumer Buying Behavior is explained by the moderating variable i.e. Brand Image. From the ANOVA table it can be seen that the p value is less than 0.05 so there is a significant relationship between the two variables. This means that we are 99% confident about the relationship of Celebrity endorsement and Brand Image.

Q9.

b


Variables

Variables

Model

Entered

RemovedMethod

1

do you

think that

the

products

associated

.Enter

with

celebrities

are of

good a

quality




Model Summary

Adjusted

Std. Error of

Model

R

R Square

R Square

the Estimate

1

.104a

.011

.001

.95366

a. Predictors: (Constant), do you think that the products

associated with celebrities are of good quality

b

ANOVA

Sum of

Model

Squares

df

Mean Square

F

Sig.

1Regression

.983

1

.983

1.081

.301a

Residual

89.127

98

.909

Total

90.110

99

a. Predictors: (Constant), do you think that the products associated with celebrities are of good quality


Coefficientsa



ModelBStd. ErrorBetat

Sig.


6.052

.000

do you think that the

products associated.114.110.1041.039

.301

with celebrities are of

good quality


INTERPRETATION

The value of R2=0.001 indicates that only 0.1% variation in the dependent variable i.e Consumer Buying Behavior is explained by the mediating variable i.e. Brand Quality. From the ANOVA table it can be seen that the p value is greater than 0.05 so there is an insignificant relationship between the two variables. This means that Brand Quality has no relation with Celebrity Endorsement.

Q10.

b


VariablesVariables


1The

product

has all the

features

as.Enter

depicted

by the

celebrity

endorsing

a

it


Model Summary


a. Predictors: (Constant), The product has all the features as depicted by the celebrity endorsing it

b

ANOVA

Sum of

Model

Squaresdf

Mean SquareFSig.1Regression.8601

.860.945.333a

Residual89.25098

.911

Total90.11099

a. Predictors: (Constant), The product has all the features as depicted by the celebrity endorsing it


Coefficientsa



Model

BStd. ErrorBetatSig.1(Constant)2.002.350

5.713.000

The product has all the

features as depicted by.102.105.098.972.333

the celebrity endorsing it


INTERPRETATION

The value of R2= -0.001 indicates that only 0.1% variation in the dependent variable i.e Consumer Buying Behavior is explained by the moderating variable i.e. Brand Image. From the ANOVA table it can be seen that the p value is less than 0.05 so there is a significant relationship between the two variables. This means that we are 99% confident about the relationship of Celebrity endorsement and Brand Image.4. CROSSTABS

Brands endorsed by celebrities are easier to recognize than those endorsed by non-celebrities. * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count

Celebrity endorsement influences the consumer buying behavior

strongly

strongly agreeagreeneutraldisagreedisagreeTotal

Brands endorsed bystrongly agree4.29.26.22.0.422.0

celebrities are easieragree10.523.115.45.01.155.0

to recognize thannetural1.94.22.8.9.210.0

those endorsed by

disagree2.35.03.41.1.212.0

non-celebrities.

strongly disagree

.2.4.3.1.01.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)

Pearson Chi-Square60.122a16.000

Likelihood Ratio51.70816.000

Linear-by-Linear24.5741.000

Association

N of Valid Cases100

a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is .02.

INTERPRETATION

The Pearson Chi Square value is a test of association used to discover if there is a relationship between two categorical variables. It also tells the good of fit of the model. The Pearson chi-square significance value here is 0.00 which is less than 0.05. Therefore we can say that there is a significant relation between Celebrity Endorsement and Consumer Buying Behaviour.I usually purchase the product which is endorsed by my favourite celebrity * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


I usually purchasestrongly agree1.02.11.4.5.15.0

the product whichagree2.75.93.91.3.314.0

is endorse by myneutral6.714.79.83.2.735.0

favorite celebrity

disagree7.416.410.93.5.839.0

strongly disagree1.32.92.0.6.17.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.014 which is less than 0.05. Therefore we can say that there is a significant relation between Celebrity Personality and Consumer Buying Behaviour.Celebrity gives a true picture of the product through advertisement * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


Celebrity gives a truestrongly agree.4.8.6.2.02.0

picture of the productagree4.49.76.42.1.523.0

through advertisementneutral5.913.08.72.8.631.0

disagree7.015.510.43.3.737.0


Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.011 which is less than 0.05. Therefore we can say that there is a significant relation between Brand Quality and Consumer Buying Behaviour.Celebrity endorsement helps in building the brand image * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


Celebrity endorsementstrongly agree4.910.97.32.3.526.0

helps in building theagree11.425.216.85.41.260.0

brand imageneutral1.53.42.2.7.28.0

disagree1.12.51.7.5.16.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.002 which is less than 0.05. Therefore we can say that there is a significant relation between Brand Image and Consumer Buying Behaviour.The product has all the features as depicted by the celebrity endorsing it * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


The product has all thestrongly agree.81.71.1.4.14.0

features as depicted byagree3.06.74.51.4.316.0

the celebrity endorsingneutral7.817.211.53.7.841.0

it

disagree6.514.39.53.1.734.0


Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)



Linear-by-Linear.9451.331

Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.121 which is greater than 0.05. Therefore we can say that there is no significant relation between Brand Quality and Consumer Buying Behaviour.Investing large amount of money in celebrity endorsement is useful * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


Investing large amount ofstrongly agree2.35.03.41.1.212.0

money in celebrityagree6.514.39.53.1.734.0

endorsement is usefulneutral6.113.49.02.9.632.0

disagree4.08.85.91.9.421.0

strongly disagree.2.4.3.1.01.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed to find out if investing large amounts of money for celebrity endorsement is useful or not. The Pearson chi-square significance value was found to be is 0.006 which is less than 0.05. Therefore we can say that there is a significant relationship between Celebrity Endorsement and Consumer Buying Behaviour.Celebrity endorsement helps in capturing the attention of masses * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


Celebrity endorsementstrongly agree4.910.97.32.3.526.0

helps in capturing theagree11.224.816.55.31.259.0

attention of massesneutral2.14.63.11.0.211.0

disagree.61.3.8.3.13.0


Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.604 which is greater than 0.05. Therefore we can say that there is no significant relationship between Promotional Recall and Consumer Buying Behaviour.

Do you think that the products associated with celebrities are of good quality * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


do you think that thestrongly agree1.02.11.4.5.15.0

products associatedagree5.311.87.82.5.628.0

with celebrities are ofneutral7.817.211.53.7.841.0

good quality

disagree4.810.57.02.3.525.0


Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.246 which is greater than 0.05. Therefore we can say that there is no significant relationship between Brand Quality and Consumer Buying Behaviour.Female celebrity influences more as compared to male celebrity * Celebrity endorsement influences the consumer buying

behaviour

Crosstab

Expected Count


strongly


Female celebritystrongly agree4.08.85.91.9.421.0

influences moreagree5.512.28.12.6.629.0

as compared toneutral6.514.39.53.1.734.0

male celebrity

disagree2.14.63.11.0.211.0


Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.131 which is greater than 0.05. Therefore we can say that there is no significant relationship between Celebrity Gender and Consumer Buying Behaviour.Celebrity endorsement develops strong relationship with the customers and makes you repurchase and brand loyal? * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


Celebrity endorsementstrongly agree.81.71.1.4.14.0

develops strongagree8.218.112.03.9.943.0

relationship with the

neutral6.313.99.23.0.733.0

customers and makes

disagree

you repurchase and

3.27.14.81.5.317.0

brand loyal?strongly disagree.61.3.8.3.13.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed and Pearson chi-square significance value here is 0.00 which is less than 0.05. Therefore we can say that there is a significant relation between Brand Loyalty and Consumer Buying Behaviour.My chances of buying a mobile telecom brand are higher when a celebrity endorses it. * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


My chances of buying astrongly agree1.32.92.0.6.17.0

mobile telecom brandagree3.68.05.31.7.419.0

are higher when aneutral3.88.45.61.8.420.0

celebrity endorses it.

disagree7.817.211.53.7.841.0


Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed to find out if there is effect of a celebrity endorsing on a mobile telecom on the consumer buying. The Pearson chi-square significance value here is 0.135 which is greater than 0.05. Therefore we can say that there is no significant relationship between Celebrity Personality and Consumer Buying Behaviour.In Dove's advertisement there is no celebrity in it. Do you thing their advertisements are enough persuasive for the consumer. * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


In Dove's advertisementstrongly agree2.96.34.21.4.315.0

there is no celebrity in it.agree9.721.414.34.61.051.0

Do you thing their

neutral3.06.74.51.4.316.0

advertisements are

disagree

enough persuasive for

3.06.74.51.4.316.0

the consumer.strongly disagree.4.8.6.2.02.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed to find out if celebrity endorsement is going to have an impact on those brands which currently do not use celebrities for their promotion. The Pearson chi-square significance value here is 0.143 which is greater than 0.05. Therefore we can say that there is no significant relation between Celebrity Endorsement and Consumer Buying Behaviour in this case.Coke doesn't rely on celebrity endorsement. Do you think they really need to change their advertising strategy? * Celebrity endorsement influences the consumer buying behaviour

Crosstab

Expected Count


strongly


Coke doesn't rely onstrongly agree1.12.51.7.5.16.0

celebrity endorsement.agree2.96.34.21.4.315.0

Do you think they reallyneutral2.35.03.41.1.212.0

need to change theirdisagree8.618.912.64.1.945.0

advertising strategy?

strongly disagree

4.29.26.22.0.422.0

Total

19.042.028.09.02.0100.0

Chi-Square Tests

Asymp. Sig.

Valuedf(2-sided)




Association

N of Valid Cases100


INTERPRETATION

A Chi Square test was performed to find out if celebrity endorsement is going to have an impact on those brands which currently do not use celebrities for their promotion. The Pearson chi-square significance value here is 0.664 which is greater than 0.05. Therefore we can say that there is no significant relation between Celebrity Endorsement and Consumer Buying Behaviour in this case.Conclusion:

Celebrity endorsement does play an important role in moulding the consumers behaviour in todays changing world. Several companies associate their product with a popular celebrity who is recognized by the audience in order to create preference and mind share. In this study we tried to investigate the impact of Celebrity Endorsement on consumer buying behaviour. We selected different parameters associated with the celebrity endorsement i.e, gender, personality, Corporate Social Responsibility, promotion recall, brand loyalty, brand image and brand quality. After doing detailed statistical analysis we are able to conclude that celebrity endorsement has significant relationship with consumer buying behaviour. Celebritys personality also influences the consumers behaviour when it is associated with any product or brands personality e.g. if its a top class celebrity associated with the top class brand, this makes a great paring and its impact is greater and long lasting ; and eventually effects the consumers behaviour. Celebrity endorsement is also useful while building a brand image, since when celebrities are associated with any brand they are considered to its ambassadors and people actually follow them and perceive a particular brand accordingly. Another useful finding was that celebrity endorsement also entails brand loyalty and strengthens the relationship of the consumer with the particular brand. Gender of the celebrity doesnt play any significant role in influencing the consumers behaviour; people are more moved and persuaded by their favourite celebrities irrespective of their gender. Celebrity does helps in creating an image but when it comes to products quality, in that case product or particular brand speaks itself through its features other than relying on celebrity endorsement. Many of the non-endorsed brands are still preferred by the consumer because of their intrinsic value. On the other side for a marketer its a clever technique to earn their loyalties and embed their brands in consumers daily life.APPENDIX A (I)

Article Record

TABLE ARTICLE RECORD

YEAR OFARTICLEJOURNALAUTHORSALLMANAGERIAL

PUBLICATIONNAMENAME

VARIABLESIMPLICATIONS STATED

IN THATIN THE PAPER

PAPER

2008The ImpactPresented inIvory BarberLife styleCelebrity endorsed

of celebritypartial

products gain more

endorsemenfulfilment of

statusattention and interest than

ts onthe

an expert endorser.

consumerrequirement

behaviourof bachelors

The research suggests

andof arts degree

that celebrity status plays

attitudes.in

a vital role in marketing

communicati

products

on arts in the

department of

Research suggests that

communicati

the credibility of the

on arts.

endorser has a strong

Johnson

impact but the corporate

smith

credibility also consider

university

important in influencing

consumer reactions to

advertisements and

brands. So the celebrity

endorser can influence

the profitability of the

endorsed brand.

2012A study onJournal ofAnnaduraiPromotionAttitude of a consumer

theResearch inPughazhendi

towards a celebrity can

influence ofInternationalandCelebrityhave a direct or indirect

usingBusinessDeenadhayalendorsereffect on the attitude

celebrityManagementSudharani

towards brand.

endorsemen

RavindranConsumer

ts on

buyingResearch key findings

consumer

behaviorconsumers have a

buying

positive attitude towards

behavior in

celebrity endorsements

Tamil

and they get awareness.

Nadu, India

Endorsements becomes

memorable and

consumers can recall it in

buying situations.

Age, gender and family

income did not affect

much on purchase

decisions of consumers

on celebrity endorsed

products.

Mismatch of celebrity

with product attributes

has a negative impact on

consumer minds.

When consumers are

more attach to a celebrity

than it will effect

purchase decisions in a

positive manner.

2013Impact ofInternationalS. SivesanCelebrityBrand equity is taken as

celebrityJournal of

the dependent variable

endorsemenAdvanced

brand imageand celebrity

t on brandResearch in

endorsement is the

equity inManagement

independent variable.

cosmeticand Social

productSciences


depends on factors i-e

trustworthiness,

credibility, attractiveness,

expertise, and celebrity

match-up.

The correlation analysis

between the factors of

celebrity endorsement

and brand equity showed

that they have a

positively correlated.

2009CelebrityIIBMSubhadipCelebrity

endorsemenworkingRoypersonalityCelebrity personality has

ts and brandpaper

a positive effect on the

personality

Brandbrand personality.

personality

2013CelebrityPacificDr. SushilBrandFactors such as celebrity

AttributesBusinessKumar Rai,

controversy, gender,

andReviewAshishCelebrityoccupation does not have

InfluenceInternationalKumar

much impact on

onVolume 5SharmaConsumerconsumer buying

ConsumerBIssue 11

Behaviourbehavior whereas

ehaviour

celebritys charisma,

A Study of

trustworthiness,

Shekhawati

performance, fame and

Region of

region does impacts the

Rajasthan

customers buying

behavior.

Customer does prefer

those products which are

endorsed their favorite

celebrities and they

remain loyal.

Celebrity does effect the

buying behavior of the

customers, celebrity

endorsed advertisement

are more powerful then

the advertisement which

dont have any celebrity

in it.

2012Effect ofInterdisciplinAli AhmedCelebrityCustomer does have more

celebrityary journal ofFarhan

inclination towards the

endorsemencontemporaryAzmat MirCelebrityproduct which is matched

t onresearch inOmer farooqendorsementwith the personality of

customersbusiness

the celebrity.

buying

behavior; a

Non-celebrity

perspective

endorsement has negative

from

relationship with the

Pakistan

buying intention.

2013Impact ofInterdisciplinSameenJawaiCelebrityThe statistics showed that

Celebrityary journal ofdendorsementcelebrity support has the

Endorsemencontemporary

significance impact on

t onresearch inDr. Ansir AliImpulsiveimpulsive buying

TeenagersbusinessRajputbuyingpatterns.

Impulsive

Buying

M. M.

There is a correlation

Behaviour

RazaNaqvi

between celeb

endorsement and its

impact on spontaneous

buying pattern of

youngsters confirmed

that the correlation exist

between the variables.

2011Impact ofResearchCarstenErfgeCelebrityThe celebrity

Celebritypaper onn

characteristics e.g.

Endorsemenmarketing

Brand imagecredibility, appealing

t onand retailing

personality, and lower

University of

Messageelaboration likelihood all

BrandHamburg.

positively influence the

Image: AInternational

Advertisingbrand image.

Communicajournal of

tion Processresearch in


marketing.

from the communication

process perspective

eventually gives a blue

print containing diversity

of sub components that

managers should take

into consideration whilst

designing their respective

campaigns.

2005HowJournal ofH. PringleCelebrityCelebrity endorsement

marketersConsumerandEndorsementadds values to the brand

can useBehaviour

and its reputation.

celebrities

Consumer

to sell more

BehaviourIt builds continuous form

effectively

of communication

Brand Imagebetween the product and

the user

It enhances the brand

credibility

2006The effect

J.HorneCelebrityMarketers use specific

of celebrity

Endorsementcelebrities for the

endorsemen

representation of specific

t on

Consumersocial culture

consumer

buying

buying

BehaviourCelebrities have become

behaviour

symbol of social culture

e.g madona is known to

be dream girl of America

APPENDIX A (II)

Individual Article Summary Write up

Group Member name

Atif Raza

Article Title

Impact of celebrity endorsement on Teenagers Impulsive buying behaviour

Authors and Year

Sameen Jawaid (2013)SUMMARY

Purpose of the Research

The most unpredictable target market is the teenagers market. Whenever the marketer come up with any new idea and places the orders for production. During the positioning phase the trend/ fashion might be changed. So its very short span of time during which one has to analyze the emerging trends and positioned their products in the market. The marketer is always focusing on this audience as they are the most impulsive buyers of any new product. Apart from the impulsive nature, they are the most influential people who are influenced by their favourite celebrity.

The study was conducted to gauge the effect of celebrity endorsement on their buying behaviour and get the consumer views about how much their buying decision is affected when a product or a brand is endorsed by a celebrity how it brings change in their requirements, desires and motives.

As per the Kotler & Keller (2006), it can be due to cultural factor-fundamental determinant of persons wants and behaviour, social factor-behaviour influenced by outsider forces and personal factors-buyer personal characteristics.

Sample Size and Technique

The target market was the youth/ teenagers in Pakistan and they had selected the people from Islamabad. The sample size was composed of 150 teenagers including male and female participants; and mostly the candidates were from 9th to 12th grade. The pocket money varies from 100 to 2000. Non-probability, convenience sampling technique and survey search method was used.

Hypothesis

H1: Teenagers impulsive buying behaviour is positively associated with celebrity endorsementConceptual Definition

Celebrity Endorsement

McCracken (1989) described Any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement.

According to Boorstin (1961) The celebrity is a person who is known for his well-knowingness.

Impulsive Buying Behaviour

Rook (1987) defined Impulsive buying where a consumer experiences a sudden change, often a very strong and permanent urge to immediately buy something. It is an unplanned purchase that is characterized by relatively rapid decision-making, a subjective bias in favour of immediate possession.

Operational Definition

Do you know what celebrity endorsement is? And why it is done while marketing a product?

Who is your favorite celebrity?

The impact of celebrity endorsement on impulsive buying behavior of teenagers in Pakistan.

Key Findings

The hypothesis we have assumed earlier is positive and accepted; and the statistics showed that celebrity endorsement has the significant impact on impulsive buying patterns. Moreover, the details of mean, standard deviation, and the correlation between celeb endorsement and its impact on spontaneous buying pattern of youngsters confirmed that the relationship exist between the variables.

Article Title

Impact of Celebrity Endorsement on Brand Image: A Communication Process Perspective on

30 Years of Empirical Research

Authors and Year

Carsten Erfgen (2011)SUMMARY

Purpose of the Research

We have observed through the ages that the sales of any product/ brand endorse by the favourite celebrities increases and repurchases will only occur if the product/ brand quality is up to the market/ consumer standards that satisfies the needs/ wants of the end user. The endorsement creates a favourable impact on the brand image. The study was conducted to weigh 24 brand image key factors e.g. celebrity, message, advertising channel and recipient characteristics through a predefined process that includes 36 empirical studies. The main focal points were credibility and high image-based resemblance. The study provides a platform and secondary data for further analysis on celeb selection criteria.

Most of the companies reserved a large amount of budget for the advertisement using the popular celebrities and the budget has been revised every year. The brand managers are constantly seeking and making long term contracts with the celebrities to endorse their brand/ products. For example, Nike spent around $339 million on celebrity endorsement in 2004. It is observed that in USA 25% of the broadcasted commercials based on celeb and 12% in Germany. As per the Keller (1993), brand image also establishes an important foundation for a brands economic value.

Sample Size and Technique

The sample was the secondary data i.e. preselected 36 research papers that cover the 24 key factors; and 10 out these success factors were selected for the analysis and measures the impact of celeb endorsement on brand image. Further, these factors were categorized into four elements based on the communication process i.e. celebrity characteristics, message characteristics, advertising channels characteristics and recipient characteristics.

Conceptual Definition

1- Celebrity endorsement and brand image

The celebrity endorser is a person who enjoys the people appreciation and acknowledgement and uses this recognition on behalf of consumer product/ brand by appearing in their commercials/ advertisements.

2- Celebrity endorsement from a communication process perspectiveThe precise definition of it is who says what in which channel to whom. Here Who is the sender, Says what is the advertisement, Which Channel is the communication media and who is the receiver.

Communication, including marketing communication that employs celebrity endorsers, can be characterized as a process in which the sender conveys stimulus to influence the behaviour of others.

Operational Definition

As explained earlier, 36 different research articles were used to investigate the impact on brand image using the communication channels. For this, 24 key success factors were choose and analyzed in detail. The success factors that were taken to study the impact of celebrity characteristics were: Perceived personal attributes congruence with the brand, external information, multiple endorsements, message characteristics such as argument, exposure, advertisement channel characteristics i.e. advertising medium, recipient characteristics i.e. demographics, personality traits, elaboration likelihood .

Key Findings

The key findings include the issues raised during the celebrity selection criteria, design aspects of the advertisement message, selection of communication channel, and the target market. The celebrity characteristics e.g. credibility, appealing personality, and lower elaboration likelihood all positively influence the brand image. Emphasizing the celebrity endorsement from the communication process perspective eventually gives a blue print containing diversity of sub components that managers should take into consideration whilst designing their respective campaigns.Group Member Name

Sara Samdani

Article Title

Impact Effect of celebrity endorsement on customers buying behaviour;

A Perspective from Pakistan

Authors and Year

Ali Ahmed, Farhan Azmat Mir and Omer Farooq (2012)SUMMARY

Purpose of Research

The main aim of this research paper was not only to study the impact of celebrity endorsement on consumer buying behaviour but adding to it also intended to study the elements of celebrity endorsement that makes it effectual and creates an impact.

Hypotheses

Researcher has formulated following hypothesis to test and verify:

H1: Celebrity endorsed advertisement positively influences buying intention of customers.

H1a: Celebrity Product matchup motivates me to purchase.

H2: Non endorsed advertisements do not persuade me to make purchase.

Research Design

Data collection approach

In this research paper researcher has used: (1) Primary data approach and (2) Survey data collection approach.

Measurement technique

In this research papers following measuring techniques are used in order to conduct the research: (1) questionnaires and (2) Scale i.e. Likert Scale.

The questionnaire was consist of a reverse five categories scale starting from 1= strongly agree to 5=strongly disagree, questionnaire was comprised of four sections i.e. General section: in order to gather the personal information of the respondents, further sections are as follow: section-I had 10 questions associated to Celebrity Endorsement, Section-II had 6 questions associated to Non-Celebrity endorsement and the last Section-III had 4 questions were associated to Measure the effect of celebrity endorsement. Sections mentioned in the questionnaire highlighted the important elements effortlessly, but in order to figure out new variables an easy procedure of Computation of New Variables was used I.e. SPSS 17.5, among the latest computed variables four were independent variables and one was dependent variable.

Following important variable were figured out:

Overall celebrity endorsement

Non-celebrity endorsement

Buying intention

There are three sub-variables which were also figured i.e.

Attitude towards celebrity

Celebrity motivation

Celebrity personality association

Sample

The survey was conducted in different educational institutions and offices of Pakistan, questionnaires were in the hard copy form along with an attached copy of celebrity endorsed print advertisement. The population was taken from Pakistan comprised of both female and male belonging to diverse age groups and professions. The total sample size was of 200 out of which 176 responded so the response rate was 88% to the conducted survey.

Following are details of the demographics of the respondents:

Gender

Male=124

Female=52

Age Group

15-20=6

21-25=143

26-30=27

Occupation

Students=129

Young Professional=42

Entrepreneur=3

Others=2

Model of Analysis

In order to see whether the data is valid or not, a reliability analysis was done and researcher found out that 74.6% of data is reliable. In this research paper regression analysis and correlation analysis has been used.

Linear regression analysis was being done on independent variables i.e. Celebrity Endorsement, Non-celebrity endorsement and dependent variable i.e. buying intention in order to study the impact of these above mentioned independent on the dependent variable. Whereas correlation analysis was being conducted on secondary variables of celebrity endorsement i.e. Attitude towards celebrity, Celebrity motivation and Celebrity personality association; correlation analysis has an advantage of not only measuring the strength of relationship among variable but also measures their direction.

Conceptual Definitions

Celebrity

According to (Schlecht 2003) term celebrity can be defined as,

Celebrities are people who enjoy public recognition by a large share of certain Group of people.

And the term Celebrity endorsement as defined by McCracken:

Any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement?(McCracken 1989)


Celebrity Endorsement is one of these power tools by which advertisers try to leverage the image and identification of the celebrity to promote a product or company (Atkin & Block, 1983)

Operational Definitions

1. Does Celebrity Endorsement affect the buying intention of customers positively?2. Which dimensions of celebrity endorsement account greater of casting major impact on buying intention of customers?

Key findings

Findings which researcher got from the data verifies the H1, that is celebrity does effect the buying behavior of the customers, celebrity endorsed advertisement are more powerful then the advertisement which dont have any celebrity in it.

It was also found that customer does have more inclination towards the product which is matched with the personality of the celebrity as compared to the physical charisma of the celebrity who is endorsing that particular product which confirms the H1a.

Another remarkable finding was that non-celebrity endorsement has negative relationship with the buying intention which confirms the H2 also.Article Title

Celebrity Attributes and Influence on Consumer

Behaviour A Study of Shekhawati Region of Rajasthan

Authors and Year

Dr. Sushil Kumar Rai and Ashish Kumar Sharma (2012)SUMMARY

Purpose of research

Well now there is concept that addition of celebrity endorsement to the brand increases its recognition, trustworthiness and desire among the consumers. The personality characteristics of the brand and the celebrity who is endorsing it should match which the marketer is trying to embed in the customers mind. There shouldnt be a disparity between the two otherwise it will be devastating. This research paper intends to investigate about consumer perception and behaviour regarding various celebrities attributes.

Hypothesis

Ho: Celebrity attractiveness has no effect on consumer behaviour.

Ho: Celebrity controversy has no effect on consumer behaviour.

Ho: Celebrity credibility has no effect on consumer behaviour.

Ho: Celebrity gender has no effect on consumer behaviour.

Ho: Celebrity performance has no effect on consumer behaviour.

Ho: Celebrity popularity has no effect on consumer behaviour.

Ho: Celebrity profession has no effect on consumer behaviour.

Ho: Celebrity territory has no effect on consumer.

Research design

In this research paper they have used descriptive research because researcher is trying to build a relationship between different celebrity characteristics and their impact on customers behaviour, so in that case descriptive research was most suitable because it studies the phenomena which is under study intended to set up a relationship between the attributes.

Data collection Approach & Measurement technique

They have used (1) Primary data collection approach (2) Survey method

To gather data they have used survey method i.e. questionnaires focusing on how consumer behaviour is effected by several product endorsement depending on their pleasant

appearance, controversy, trustworthiness, gender, performance, fame/status, occupation and region. The questionnaire was comprised of five point likert scale with lowest point strongly disagree to the highest point strongly agree

Sampling method & sample size

Convenient sampling method was being used and 60 respondents were selected from the shekhawanti region of Rajastn consisting of districts of Churu, Jhunjhunu and Sikar.

Model of analysis

To determine the impact of different characteristics of Celebrities on customers behaviour they have applies mean, standard deviation, regression analysis and Chi-Square test was being applies to check the stated hypothesis.

Conceptual Definitions

Celebrity

Celebrities are people who enjoy public recognition by a large share of a certain group of people whereas attributes like attractiveness, extraordinary lifestyle are just examples and specific common characteristics cannot be observed though it can be said that within a corresponding social group, celebrities generally differ from the social norm and enjoy a high degree of public awareness (Schlecht, 2003).

Celebrities act as spokespersons in advertising to promote products and services (Kambitsis et al, 2002, Tom et al, 1992).

A celebrity who represents a brand or company over an extended period of time often in print and TV ads as well as in personal appearances is usually called a company's spokesperson (Schiffman and Kanuk, 1997).

Consumer Behaviour

The field of Consumer Behaviour is the study of individuals, groups or organizations and the processes involved to select, use and dispose of products, services, experiences, or ideas to satisfy needs and impacts that these processes have on the consumer and society.Operational Definitions

To study the influence of celebrities on consumer behaviour with respect to branded products and services.

To identify the attributes that defines the success of using a celebrity in product promotion.

Key Findings

Results from this article have shown that following factors such as celebrity controversy, gender, occupation does not have much impact on consumer buying behaviour where as celebritys charisma, trustworthiness, performance, fame and region does impacts the customers buying behaviour. Customer does prefer those products which are endorsed their favourite celebrities and they remain loyal to them and their endorsed product/services.Group Members Name

Fahad Ashraf

Article Title

The impact of celebrity endorsement on consumer behaviour and attitudes

Author and Date

Ivory barber (2008)SUMMARY

Purpose of research

The point of the study is to determine that how celebrity status affects the consumer behaviour and as well as the economic straits it put it on the household.

Advertisers use different marketing tools and tactics in order to gain interest of their targeted audience towards their product. Advertisement plays an important role in placement of a product which will influence and motivate the consumer in order to buy their product. TV audience can strongly relate themselves with celebrity endorsed products than non-celebrity endorsed products because they relate better to people they admire. Companies must have this information that using a celebrity in the advertisement will defiantly bring more revenues.

Advertising agencies have a major impact on the society, celebrity is the key to target consumer and celebrity endorsements have given entry to the economic turmoil. Celebrities have a great impact in order to change attitude and behaviour of the consumers. People are more focused on the name likened with the product than the product itself celebrities act as an spokesperson of a brand and product they endorsed and they support the brand image and the claims of the company by their name, personality and status which they possess in their field of work .Differentiation is created by the companies because of having celebrities in their ads.

Research has shown that consumers are more motivated to choose products and service which are endorsed by celebrity. Choosing a right celebrity is import

2015-01-17 mr final reportx 1

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