Celebrity Endorsement And Its Impact On Sales

Celebrity Endorsement And Its Impact On SalesResults disposition that honor sec has a large impact on bribe target and is in fact a causal factor based on the entropy obtained by dint of this inquiry.All three factors be said to positively affect procure intention and the results argon magnified when all three factors atomic number 18 present.It is seen that the most noneworthy impact is that of natural attractiveness if interpreted in isolation and the most signifi bedt impact is that of distinction / speck congruence when all three factors are taken into account.What this means is that without physical attractiveness, the impact of the other devil factors is negated (in the absence of physical attractiveness, purchase intention allow not increase) but the presence of physical attractiveness alone does not have a significant impact on purchase intention. Thus physical attractiveness is an important first flavour but it is not the most important reason for increas e in purchase intention.That belongs to smirch / laurels congruence, which is consistent with previous studies on the subject case Choose celebrities which have a good image chequer with the dent, otherwise the impact of the repute second base is minimal.The author concludes by stating that all three are important factors in making an impact on purchase intention through and through advertising and and so when choosing a famous person endorser, all three factors mustiness be taken into account.Celebrity Endorsement and its Impact on SalesJain (2011) proposes that the increase in notoriety warrant in the subcontinent in fresh-fashioned years, despite the rising costs is due to the increase in media coverage in the area and the increase in hero worship as well.This has been outline as the major reasons for increase in persuasiveness of celebrities, which in turn has resulted in an increase in their demand by corporations to endorse their respective brands.The look into documents the impact of celebrity endorsement with a guidance on the subcontinent, making it pertinent to this study. It is queried as to whether the relationship is always positive or whether there can be negative consequences as well.It is noted that for most brands, the concentrate has shifted from creating awareness and bringing attention towards their brands to a more contemporary approach, which is to create positive associations deep vanquish the minds of the consumers and to capture a share of mind, share of heart, share of wallet and share of spirit.This is the essence of branding in todays world and as such(prenominal), all marketing and advertise actions that are conducted are done so with this end goal in mind.The study researches the idea that celebrity endorsement leads to fulfillment of such goals or are they successful only in capturing the attention of the consumer and creating awareness without moving the consumer to the next stage.Celebrities are thought of as a link between the brand and the consumer and attend to to ease the process of purchase intention and thus it is imperative that the best celebrity be chosen, the one that is reform for the brand and has the potential to create the maximum impact on sales as well as brand rightfulness.As pointed out by other studies, endorsement helps brands to deal with clutter and that is the major reason to use celebrities, instead of e very(prenominal)day men and women in advertisement. One of the major decision criteria which helps corporations choose a celebrity is known as the Q-Rating. This Q rank helps brands to select a celebrity based on the rating that they have with the consumers. This rating is derived, based on a number of criteria but essentially boils down to cardinal who known is the celebrity and how liked is the celebrity.These two criteria form the backbone of the Q Rating system that helps corporations choose which celebrity is the best fit for their brand.The impact of celebrity endorsement is said to be based on 10 criteria, with the greater the score of the celebrity in each criteria, the greater the impact on sales and purchase intention.Celebrity / Target Market Match How backbreakingly direct market associates itself with the celebrity in question.Celebrity Values The link between the set of the celebrity and the values of the target audience, thus creating a link for the consumers with the brand.Cost of Celebrity The cost of the celebrity is generally an indication of the popularity of the celebrity and the higher(prenominal) the cost, the higher the popularity, thus the greater the chance of the celebrity persuading consumers. However the cost should always be compared to the added benefit and the go ahead should only be given if its realized that there is sufficient benefit from the increase in cost.Regional Appeal Different regions whitethorn have different appeals within a country and if a reaping is to be sold throughout the cou ntry, it is best to choose a celebrity with relative universal appeal.Celebrity Product Match The celebrity should be seen as having an image fit with the brand itself, as it is one of the key factors when trying to increase sales.Celebrity Controversy Risk The greater the chances that the celebrity may be involved in controversy, the lesser the chances that he or she would have a positive long term impact on sales and thus should be avoided.Popularity The greater the popularity, the greater the chances of brand recall and thus they have a high cost. It should be noted that in order to save cost, popularity should not be forgone.Availability The best celebrities may not be usable due to other endorsement commitments or there is a conflict of reside due to them endorsing a rival brand. In such a case, it is best to move on and choose the next best alternative.Attractiveness Attractiveness helps celebrities be more likeable and to connect more with the target market and as such this is an important attribute to look for in a celebrity.Credibility This helps the consumers to go for what the celebrity is saying and to pay more attention to him or her and what he or she is endorsing.This research is important as it looks at the factors within the partnership of a celebrity and a corporation and how they increase or decrease their impact on the impact of celebrity endorsement on sales and as such helps to decide how and when celebrities should be chosen as endorsers.Impact of celebrity Endorsement on Overall BrandIn order to select a celebrity for a given merchandiseion, there should be an optimal match between celebrity and brand image. Here are some parameters which should be considered (Katyal, 2010)Celebritys personal showcase is not controversialPersonal character fits with the image of the product / brandCost of hiring the celebrity is worth the outputIs there any controversy jeopardize attached after the ad bms launchedCelebritys popularityIs the cele britys appeal local anesthetic or regional and does it fit with the appeal of the product in terms of regionCelebritys overall believabilityIs the celebrity him or herself a brand user?What is celebrity profession? Does it matches to have a natural match to the product and appeal to the consumers. For example, celebrity shape from sport is natural to promote sports related stuff and footwear.What values celebrity is associated with the product? If a celebrity is put in a role to dish out the human dish out cause does he/she be social worker or figure.Does target audience neediness to believe in the celebrity for the target product to be advertised or message to be conveyed.After advent of television, cable television, and internet, advertisement industry got revolutionized. New trends and format were introduced for rapid and technical foul way to impress the humanity and numerous items, products and services became the household names. Television though invented in 1920s became commercial medium in 1950s.This happen when a price of the television sets began to approach affordable range of average person. Print and Radio had to take back seat to give a way to the new technologies. Now the commercials could be broadcasted with sight, sound, and motion. First time in the history advertisers saw huge potential of multimedia technologies which could give higher gains in sales and winnings provided dependable tools and ideas were selected. Cable television channel introduced channels like MTV for young music lovers, ESPN for sports enthusiasts and Food Networks for people with love of cooking. These new channels were attractive and gaiety for advertisers who wish to target certain audience for example entertainment, sports, or food (Sample, 2010).Celebrities in AdvertisingPersonal in marketing have use celebrities in commercials, print campaigns and promotions and other seller techniques for years. It has worked in the past because it was executed tight-laced ly. However, use of celebrities to grab viewers attention to eventually make sales depends on proper celebrity casting.The right selection of star to pitch the product will mean that the buyers can relate to that person the person a buyer would want to believe in. It is not as simple as you think it is because in many cases the right celebrity is not always affordable. On the flip side, the right celebrity is not always the most expensive one either. Above all else, the most important resides in considering whether the celebrity you select is right for your campaign and take the process from there.Another key factors that one must take into account is the fact that advertisers should downstairsstand the basic premise of hiring the celebrity and making it set free to him what is required and the nature of the exact role of the celebrity. If this is successful, companies may retain the celebrity for other products of their brand, making the celebrity more of a brand ambassador than a product endorser.Celebrities can be seen as a marketing vehicle that will likely to continue in the near future. As long as there are new stars being introduced into our entertainment arenas there will be no shortage of talent to fill the need. Though, doing the selection and positioning right is the biggest challenge but if done correctly it can translate into better response and higher sales volume.The equity effect of endorsement by celebrities A conceptual frameworkThe purpose of this study was create a framework which may be later used to organize and guide future research into how celebrity product endorsement creates equity for both the endorsed product-brand and the endorsing celebrity. The focus of Diana Senos study was how the celebrity as well as the brand could serve to increase equity for each other, essentially feeding off each others image to mutually benefit each other. It looked at the relationship between the endorser and the company and how a strategic fit coul d be achieved by utilizing the best fit of celebrity for the product to be endorsed.The central findings of the research state that celebrity endorsement is a form of co-branding and that both endorser image and brand image serve as mediators in the equity-creation process of celebrity product endorsement.Mobile brands connect with PakistanUmair Naeem examines the relationship and industry effects of celebrity endorsement on the telecommunications sector. Umair states how the increase in competition has led cellular service providers to resort to differentiating their brands less on the posterior of functionality and features and increasingly on the basis of emotional appeal and a certain message that is sent across. Celebrity endorsements are heavily used to drive base the emotional appeal and to personify the message that is being sent across.Using Mobilink as an example he states, Mobilinks sub-brand Indigo relied heavily on two factors toward establishing its brand equity bran d ambassadors that exuded style and sophistication, and a unique classy look that permeate all forms of its Indigo brand communication.Indigo used sits such as Zainab Qayum, movie stars like Shaan, and popular musicians such as Strings to infuse style into its branding. It as well played on the aspirations of young business professionals through the zephyr and the locales of Indigos ads.He believes celebrity endorsement is currently unavoidable to differentiate the brands which are increasingly similar in features and thus celebrities help to personify the brands qualities.The naked trueness of celebrity endorsementThis research was conducted to understand how celebrity endorsement worked for retail outlets and retail stores in general, with a focus on Europes leading chain, J. Sainsbury. Thus The focus of the study is on using celebrity endorsements for retail outlets. Its emphasis is on fit between celebrity image and brand image. Specific cases are examine to evaluate the d esign to which consumers associate themselves with the image that the given celebrity projects and how that, in turn affects their purchase behaviorSainsburys started using Jamie Oliver (a high profile television chef) for their advertisement campaign, who served to promote the companys grocery products. He was chosen as he was seen as the best fit for their brand.The case itself identifies the criteria that made the endorsement successful by conducting questionnaires, interviews, and focus group studies. It outlines the key elements along with how they were used in the campaign to create a sense of confidence amongst the consumers and thus creating a successful campaign. The overall extent to which the consumers associate themselves with the celebrity and his words is dissected.Impact of celebrity Endorsement on overall brandEndorsements are seen to be on the rise entailing a binding question posed to consumers. Is there a science behind the choice of the endorsers or is it just b y the popularity measurement? Which precise reasons lead to impact on brands by using celebrity endorsement?A thorough study of the paper streamlined a 14 point model which can be referred to as a blueprint criterion by brand managers for capitalizing on the celebrity resource through 360 degree brand communication and can also be used in selection of celebrities. The model was projected as the foundation brick on the impact of celebrity endorsement in paper.Our study revealed that 14 factors of the model and the effects of celebrity endorsement are proportional.Success of a brand is determined through celebrity endorsement which is accumulative of the pursuit 14 attributes. If the below parameters score is higher, the chances of getting close to the desired impact are greater.The winner stories of celebrity endorsement are promotions which reflect a fine fit between the brand and the 360 degree advertising. And a decent example of one such story is of Fardeen Khan and Provogue. In the apparel market, Provogues positioning is of a young, active, party-going, attention-grabbing brand and so is Fardeen Khan. The union between the two has had a massive impact and brand managers have utilized this endorsement through 360 degree dimension as noted earlier.Moreover, the marketing/advertising firms should identify the symbolic properties of the sought after product first, as also proposed by the transfer model. Thereafter, consultation of host celebrities is get to assure their similar traits with the product.Finally, after sorting out cipher and availability constraints, the suitable celebrity has to be chosen as a representation of symbolic brand properties. The chosen celebrity will have some meanings associated with him/her which will not be suitable for the product.Consequently, only salient features excluding unwanted meanings should be captured and taken care of.Also, advertisements should also be structured in way to highlight the essential similarities b etween celebrity and the product.When it comes to subtlety, depth and power in delivering meanings celebrities are a lot nuanced compared to anonymous models.Celebrities also offer demographic information, configurations of range of personality and lifestyle meanings very thoroughly. Their persona evokes meanings with greater clarity.Furthermore, celebrities through repeated performance on public stage create their personalized meanings which can be passed into advertisements, through meaning transfer process.For instance Preity Zinta is perceived as a fun-loving, vivacious and modern Indian woman who can be translated into brand campaign with similar characteristics. In conclusion, the fit between celebrity traits and brand positions and its attributes determine the success.Celebrity endorsementsMarketers need to be aware of the impact of using celebrities in commercials, promotions and print campaigns because it works if done properly. If business are about to make an effective a dvertisement, it must be attention-grabbing to its consumers and indeed most of them uses celebrities as endorsers.According to the article of Katyal S. (2008), celebrities serves the purpose of getting viewers attention but proper choice of celebrity determines whether it translates into a sale and product image is delivered precisely. Selecting the right star to enhance the image of your product means finding the person to whom your consumers can relate to, meaning the person your consumer wants to believe in.sometimes the selection of the right star for your product is not that daunting, until you realise that in many cases affordability is in question with the right celebrity.Essentially due to familiarity with stars, brands are commonly endorsed by celebrities who make them enormously attractive to consumers. But anyone who thinks seriously about branding soon realises that there are basically two kinds of strong brands those that are focused and those that are diversified.Si gnificance of branding with celebrity endorsements is complicated to estimate in the present cluttered media industry and consumer markets. Electronic media branding including television will be of continuing interest and splendor even with its idiosyncrasies in consumer payment and brand definition. There are three explanatory reasons for this firstly a strong brand identity is crucial to producing audiences in a multichannel environment which is an environment that is becoming more and more crowded as television converts to digital delivery. perchance it is the only means of gaining a place in a viewers/ users channel repertoire. Secondly, brands are important for businesses to expand its markets. Extensions of brand marry an established brand to a new service as a means of establishing immediate market credibility.Besides that the third aspect explains, branding with the use of celebrities in which it is necessary to leverage corporate assets in order to open new markets. These markets may be related to the present business of a branded entity (e.g., ESPN Magazine, CBS Sportsline website), or if not separate they may be unrelated (e.g., logo apparel and other merchandise, Fox Sports restaurant/bars).With the traditional advertiser supported model of television under increasing pressure, television providers, and especially broadcasters, are constantly looking for new tax streams to continue enhancing brand image and generate sales extensively. All in all, the power of an endorsement by a celebrity depends on the relevance of the celebrity to the product. For example, if Oprah was promoting a book about an issue particularly relevant to women wherefore she is most likely to be effective. A famous chef can endorse a cook book or a famous fitness celebrity can certify an exercise book. If the buyer believes that the celebrity brings an unusual insight or twist, they would be more interested.In the case of skin whitening products, Lucida-ds and Met Tathione should cautiously assess their endorsers to avoid business campaign failure in terms wrong brand perceptions and ultimate sale drop. Therefore, it is important to consider the conformity of the product and the alignment of both celebrity and brand attribute to be a market winner.Chapter V Research Study DesignResearch ObjectivesObjectives to be analysed should be crisp and clear in order to observe the effectiveness of the decision for celebrity endorsement. Apart from the economic interests of celebrity endorsements (e.g. rise in total revenue/market share), it involves several psychological objectives. Such as an increased knowledge of the brand name, a more clear representation of brand/product characteristics by consumers, enriched attitude towards the ad, towards the brand and lastly, increased purchase intentions.Celebrity endorsement attributes that increase consumer purchase intentionCelebrity attributes that are of most importance when analyzing effectiveness of endorseme ntImpact of celebrity attributes on brand positioningEffects of multiple celebrity endorsement on brand imageEffects of celebrity endorsement on brand equityFactors that affect the consumers willingness to purchase a product or service when endorsed by a celebrity?Research Question What celebrity attributes affect purchase behavior of Lowe Raufs clients?HypothesisCelebrity endorsement has a significant / insignificant impact on consumer purchase behaviorH0= Celebrity endorsement does not have a significant impact on consumer purchase behaviorH1= Celebrity endorsement has a significant impact on consumer purchase behavior.Theoretical FrameworkThe theoretical framework has been designed based on the literature review on studies based on this topic. It has been identified through these studies that the following variables combine to form the essence of celebrity endorsement and together, they affect purchase intention.Source Chabo Dimed et. al (2005). Celebrity endorsement-Hidden fact ors to success, Journal of Advertising pp. 298-301Relevant VariablesVariableArticle constitutive(prenominal) definitionOperational DefinitionAttractiveness(Independent)Celebrity endorsements- Hidden factors to successThe likeability of the celebrity associated with a product or service with regard to the glamour of the celebrity.Q 17, 18, 19, 20 21Purchase Intention(Dependent)Impact of Celebrity Endorsement on Consumer Buying Behavior and Brand BuildingThe ways in which a consumer interacts in accordance with the advertisement strategies run by a company for its product or service.Q12, 13 15Brand celebrity Fit(Independent)Impact of celebrity endorsements on brandsIt explains how closely the personality and image of the celebrity matches the positioning of brand.Q 26, 27 ,28 29Brand Recall(Independent)Advertisement and PromotionIt explains how the consumer recognizes the brand with the celebrity who endorses the product or service.Q7, 8, 9, 10 11Likeability(Independent)Impact of celebrity advertisement on customers brand perceptionIt explains how the charm or glamour of the celebrity affects the sales of the brand.Q 24 25Trustworthiness(Independent)Celebrity endorsements- Hidden factors to successThe celebritys history with the consumers develops a take aim of trust between the two parties and this is what trustworthiness explains here.Q 22 23Source Chabo Dimed et. al (2005). Celebrity endorsement-Hidden factors to success, Journal of Advertising pp. 298-301Research MethodologyThis section outlines and elaborates on the research and how it was conducted. It covers the details of the research design, methodology for collecting the data, population, questionnaire development and data analysis.The consider of the paper is to figure out how celebrity or endorsements affect brands. The basic idea is to equip ourselves with additional research on the phenomenon of consumer response with respect to celebrity endorsed brands this makes the research a basic rese arch. Since the objective is to find how celebrity endorsements affect brands, this research is termed causal in nature.Data TypeThe bulk of this study revolves round quantitative data due to the fact that there is greater chance of bias in qualitative data as well as the fact that that numeric data is easier to analyze and understand. Data may be clearly measured and hence this serves as the major portion of the analysis. Quantitative data has been obtained through questionnaires, filled up by employees of Lowe Rauf as well as the final consumers so that both perspectives are covered.Qualitative data is in the form of interviews, two of which are conducted one with the GM of the Lahore division and another, a joint interview with the account managers of Nestle and Mitchells.PopulationThe study is based on understanding how consumers purchase intention is affected in the wake of celebrity endorsement. Since the study is limited to Lahore, the overall population sample would be equ al users in Lahore, which equates to 4,695,600 (based on local census). consume ProcedureConvenience, non-probability sampling is used for the questionnaire, based on the ease of access and availability of resources for the researcher.The final sample for the questionnaire consists of 30 users (16 male, 14 female) with varying ages, income brackets and occupations.For the interview, as stated, Anwar Kabir (GM Lahore branch) and the two account managers (Haris Habib and Zakria Fawad) are interviewed, based on convenience as well as relevant experience, working within the industry and actually hiring celebrities.Sampling FrameFor the purpose of this research, the list of elements upon which the sample is selected from the population includes the fact that they should be easily accessible to the researcher (as convenience sampling is used). The other element of is that at least 50% of the sample should fall into the SEC B income bracket. This is because research shows this class to be the most frequent users of these products.For the interview, the major element (apart from convenience) is that the persons should be experience in terms of the celebrity endorsement process and must have actually worked on campaigns to select celebrities based on different factors.Data accumulation ProcedureThis research is based on the primary data collection approach. Questionnaires are used for collecting data. Personally administered questionnaires have been used. They were distributed to a total of 30 people of different ages, occupation and income requiring them to fill a total of 30 questions each. Once the questionnaires were filled they were collected. The anonymity and confidentiality of the respondents and their responses has been ensured and data was analyzed at an aggregate level only.Close ended questions are used in the questionnaire which helps the respondents to make quick decisions to choose among the several alternative before them (Sekaran, 2000). The nature o f the questionnaire has also helped the researcher to law the information easily for subsequent analysis.Likert-style rating scale was used it consists of subsequent options strongly conform to, agree, neutral, disagree, and strongly disagree. Different statements were made in the questions and respondents were asked the degree as to what they agree or disagree upon.Questionnaire DevelopmentThe questionnaire itself was kept simple and basic to ensure clarity and reduce bias. The purpose was to gather data from the selected population sample with regards to the topic. The questionnaire consisted of two parts, the first section contained six questions seeking information about the respondents age, gender, income, marital status, education and occupation. The second section contained questions that were based on information regarding the variables identified in the first chapter, this section itself consisting of five sub-sections brand recognition and recall, purchase intention, end orser credibility and trustworthiness, endorser attractiveness likeability and image fit. The information attained would be used to analyze the findings and further the study.Questionnaire attached in Appendix 1Respondent ProfileData collection from the questionnaires shows that the respondent is a single 18-28 year male bookman with an income of 30,000-40,000. The other type of respondent is an 18-28 year old housewife with kids and income of 30,000-40,000.Graphical representations of respondent demographics in Appendix 2Data Analysis ProcedureOnce all the data is compiled, it is transferred to SPSS. This is done to understand how purchase intention is affected by the variables outlined in the theoretical framework.Values in the questionnaire are changed to numeric form so that data is quantified. Questions with the Likert-scale rating are given numeric forms, with 1 representing strongly disagree to 5 representing strongly agree.Using this method, the data is input into the softwa re and a regression model is created, along with descriptive statistics and frequency tables.Chapter VI Results FindingsInterview FindingsThere were two interviews conducted within the Lowe Rauf agency, the first was with the general manager, Anwar Kabir and the second was with Zakria Fawad, the account service maanger.The interviews revealed that it is necessary to prioritize the needs of the firm as well as the agency in light of the budget allotted to the advertisement itself and the portion of the budget available to hire a spokesperson.Since the ideal spokesperson may not be within budget or may not be available due to other reasons, it is imperative that the importance of the key celebrity endorsers attributes be ranked and measured in terms of the impact on purchase intention of the relevant consumer.There were five key attributes that were thought to be important by the Lowe Rauf management, which were attractiveness, likability, brand fit, trust worthiness and recognitio n.The order of their importance however is very subjective and it is believed that a more objective means to rank these and other relevant variables, would serve to make better and more informed judgments as to the importance of each variable as per the needs of the client.Hence it becomes important to conduct a regression analysis and quantify the impact of each variable on the purchase intention of consumers within the target customer category.Purchase intention = 0.0461095 + 0.353232* brand recognition and recall + 0.351173* trustworthiness + 0.133718* attractiveness 0.0495677* image fit + 0.21128* likeabilityThe model tested has a coefficient of determina