MOHAMMAD ALI JINNAH UNIVERSITY

FA09-BB-0084

1. INTRODUCTION
1.1 INTRODUCTION
Every company tends to make an advertisement which creates awareness and
arouse interest in the minds of the customers. One of the tools or strategy used is
celebrity endorsement. As we all know, promotion plays a vital role in achieving
the goals and strategies of an organization, especially in the market field. The
biggest improvement in this field is the celebrity involvement as a promotional
technique, which enhances the buying decision and loyalty. Advertisers try to hire
such celebrities for endorsement who are not only attractive (Baker and Churchill
Jr 1977) but credible as well (Sternthal, Dholakia et al. 1978). These aspects
have a great impact on the customers because some customers prefer celebrities
who are trustworthy and some want those who have good looks. And some look for
both features. The characteristics of the product should match with the personality
of the celebrity only then it is said to have an impact on the consumer and result in
call for action that is the purchasing of the product. Freidman and Freidman
(1979) defined that celebrity endorser is an individual who is known to the public
(actor, sports figure, entertainer, etc.) for his or her achievements in areas other
than that of the product class endorsed.
A celebrity is a famous person who is well known internationally and continuing to
define celebrity endorsement : A form of brand or advertising campaign that
involves a well known person using their fame to help promote a product
or service. The reason for doing this is that people associate their brands with
famous actors which in future remind them if their name is mentioned.
Consumers go through thousands of pictures and billboards of different brands but
at the end of the day do not remember which brand was it. The main challenge of
the marketer is that grabbing the attention of the viewer and therefore to do this
they use celebrity endorsers.
Celebrities maintain the attention of the viewer towards the product. Using this
marketing strategy would affect consumer purchase but it is not always the case.
Therefore it is very important to match the celebrity image with the brand of the
product, understanding the product itself and making a framework for measuring
the effectiveness.
Generally it is believed that message of the brand communicated by a celebrity is
much more effective than a non celebrity. It generates a higher appeal and
attention which is necessary in todays world of highly competitive market.
Repetition of advertisement positively influences consumers to purchase that brand.
Consumers believe that repetitive advertising company has a good brand name and

it creates positive impact on consumers. Not all the celebrity endorsed

advertisements impacts the purchase decision of the consumers it depends on the
product the brand advertises. Schlecht and Christina (2003).
A study conducted in 2012 September (Vol 4, No 5) by Ahmed, Mir, Farooq; Effect
of celebrity endorsement of customers buying behavior; a perspective from
Pakistan also concluded that celebrity endorsement does positively influence the
buying intention of the customers. Another study conducted by Lalitha Balakrishnan
and C Shalini Kumar (Vol 1, No 2, May 2011, Pp. 98-112) also concludes that
consumers are significantly induced by the celebrity endorsers when the target is
on quality and price.
As we see luxurious brand purchase not always but sometimes is affected by the
celebrity they associate it with. The main usage of this technique being used in
advertising is instant brand recall. If we say Shahid Afridi in Pakistans context we
immediately recall Pepsi. Pepsi is associated with cricket and Shahid Afridi is a
part of cricket. Wasim Akram is associated with ufone. He has been casted in
some of the ufone ads. Similarly Mobilink Jazz signed Ali Zafar for some of their
ads.
The trend of celebrity endorsements have been increasing with time. Not only is it in
Pakistan but also in India. Juhi chawla in Kurkure, Kareena Kapoor for Head
and Shoulders, Shahrukh Khan for TAGheuer and similarily there are many
more. Now if we take a look at the TAGheuer watch advertisement, Shahrukh Khan
is a well known Indian actor and highly profiled according to his work. His
personality matches with the watch which is a luxurious brand itself.

DEFINITION OF A CELEBRITY
A celebrity as per defined by the dictionary is a person who is famous and his or her
acts are notice as well as taken into notice by the media. If someone whos very
successful is known as a CELEBRITY. It may be in any field like sports, social work,
cinema, etc.
According to Friedman and Friedman, a celebrity is an individual who is known
by the public for his or her achievements in areas other than that of the product
class endorsed. Compared to other endorsers, celebrities always put together a
greater degree of attraction, recall and loyalty. In this era of high competitive
environment within the marketing and advertising industry, securing a place in the
minds of the consumer is very hard, celebrity endorsements give an extra edge to
the companies for holding the viewers attention. Celebrities can increase brand
acceptance and provide enormous force that brands require by endorsing the
central or the essential value to the brand.

DEFINITION OF CELEBRITY ENDORSEMENT

The use of celebrities in order to boost sales and/or recollect value of a brand is
called celebrity endorsement. As we can see that celebrity endorsement has been
used since a long time so this is a proof of its immense advantages, but it also has
many disadvantages. When it comes to celebrity endorsement the first thing that
comes into our minds are the Indian advertisements. For advertising practitioners,
employing an appropriate celebrity endorser to publicize a product is necessary and
difficult as well. While employing any celebrity it is important to keep in the mind
factors such as fit between the celebrity and product in order for choosing
appropriate endorsers.

PROS OF CELEBRITY ADVERTISEMENT

The increased consumer power over programmed advertisement has made
advertising more confronting. In order to ease this threat and help to create
consistency in consumer attention advertisers use the strategy of celebrity
endorsement being an advantage in this world. Celebrities have the capability of
helping the product to be prominent from the surrounding clutter, directing towards
an advanced communicative ability by penetrating through excess noise in a
communication process (Sherman, 1985). Celebrity endorsement assists in the
image enhancing of the companys image (Erdogan, 1999). Marketers use
celebrity endorsements as they direct towards better information storage in the
minds of the consumers which can be promptly recovered when the consumer is in
the purchasing situation (Schultz and Barnes, 1995).
POTENTIAL ADVANTAGES

POTENTIAL HAZARDS

Increased attention

Overshadow the brand

Image polishing

Public controversy

Brand introduction

Image change and overexposure

Brand repositioning

Image change and loss of public

recognition
Expensive

Underpin global campaigns

SOURCE: Erdogan 1999, p. 295

CONS OF CELEBRITY ENDORSEMENT

The very first disadvantage is the term used lazy advertising which is used for the
tremendous usage of celebrities to endorse products. This would lead to negative
image of the celebrity and also the product. Negative information and publicity

regarding the celebrity or any controversy on any celebrity is one risk correlated
with the use of celebrity endorsers. If the celebrity is strongly linked to any
controversies then the negative impact will also affect the product (Till, 1996).
Over publicity is a common occurrence between highly known endorsers and
opposing brands and directs the consumer to get confused and unable to recall
which brand the celebrity is associated with (Tripp et.al., 1994).
Agrawal and Kamakura (1995) propose that there are declining returns related
with celebrities in advertising. Also some customers have phrased celebrities as to
be puppets used by companies meaning that they make put the celebrities to be
lying, when endorsing certain products (Temperley and Tangen, 2006).

1.2 HISTORY
Celebrity endorsement started since 1760s. Josiah Wedgwood, who was the
founder of Wedgwood pottery and chinaware used royal endorsements so that to
create an image of the brand far beyond the attributes of the product itself. In 1890
Pears, a soap manufacturer hired a famous actress, Lily Langtry, for a testimonial,
Since using Pears Soap, I have discarded all others." This is believed to have been
the 1st such endorsement on a large scale. Pears also paid a large sum of money for
a painting by artist John Millais, and started the trend of using fine art to sell
products.
Till the early 1930s, the major endorsers were athletes, but by 1945, movie stars
like Charlie Chaplin were hired as well. With the rising trend of the color TV in 1965,
TV personalities and entertainers also became popular. By 1975, one in eight TV
commercials featured a celebrity. By 1980, products were designed around the
celebritys image and personality. For example, in 1984 the brand NIKE relied on
the famous basketball player Michael Jordan. Almost 75% of products that related to
sports used athletes to endorse their brands.
Companies have openly admitted the direct influence of celebrities on the sales of
their products. Since the company signed Woods in 1996, Nike golf balls saw a $50
million revenue growth by 2002 to reach $250 million. "He's definitely influenced
sales. There was a great deal of speculation, with Nike getting into the golf
business. Some thought that it wasn't going to be authentic, but think we've proven
people wrong and Tiger has definitely been the foil for us to do that, "said Kel
Devlin, director of sports marketing for Nike Golf. Woods' first contract with Nike was
worth $40 million. In 2000, it was renegotiated to create a five-year contract
estimated at $125 million19.Woods was rated the top most influential celebrity
player of 2002.

1.3 RESEARCH QUESTION

How celebrity endorsement affects consumer purchase positively? This means
that the research being carried out describes the affect and analyses the
variables that affect consumer purchase related to endorsers to the product. For
example we say that if we associate Shahid Afridi with Pepsi what are the
variables a consumer would weight related to the celebrity in order to purchase
Pepsi. This includes the dependant and independent variables.

1.4 SIGNIFICANCE OF STUDY

Apart from analyzing the effect of celebrity endorsement on consumer purchase,
this study would also point out the factors which make it an effective one. This
means that what factors results in consumer purchasing the product.

1.5 VARIABLES
Dependent variable: Consumer purchasing the product
Independant variables: celebrity personality matches with the product
Price of the product
Quality of the product
Celebrity popularity

1.6 HYPOTHESIS
a) Null hypothesis: celebrity personality matches with the product so influences
consumer purchase

Alternative hypothesis: celebrity personality does not match with the product so
consumer do not purchase
b) Alternative Hypothesis: price of the product influences consumer to purchase
Null hypothesis: price of the product does not influence consumer to purchase
c) Alternative hypothesis: quality of the product influences consumer purchase
Null hypothesis: quality of the product does not influence consumer purchase
d) Alternative hypothesis: popularity of the celebrity affects consumer to
purchase
Null hypothesis: popularity of the celebrity does not affect consumer purchase

1.7 DISSERTATION STRUCTURE

The structure of this thesis is described below:
Chapter 1: Introduction
It is the introduction chapter of whole thesis which is comprised on the description
of research background, significance, questions, aims and objectives, hypotheses,
and dissertation structure.

Chapter 2: Literature Review

This chapter is comprised of the brief critical review of the scholarly literature
available on internet, social networking, and lifestyle of Pakistani consumers. The
used sources are latest articles from academic journals, current books, internet
magazines, market analysis reports, and online databases.

Chapter 3: Research Methodology

Research methodology is an important aspect as it describes the roadmap for the
conduct of this study. Descriptive research methodology is followed with the help of
quantitative techniques of data collection and analysis. The whole research design
and methods used are discussed in this chapter.

Chapter 4: Data analysis

This chapter is based on the analysis of primary data for the current study.
Descriptive statistics and percentage comparison techniques are used in this
chapter to analyze and interpret the data.

Chapter 5: Conclusion
This chapter is the conclusion of whole thesis and presents a brief conclusion,
recommendations and implications for future research. The limitations of study are
also identified and discussed with the personal reflection of the researcher.

2. LITERATURE REVIEW
Balakrishnan and Kumar(2011). Celebrity endorsements are usually for the
nationally marketed products rather than the local or the niche market and more
often for products such as sports products, luxury goods which could include
watches or car; and their price cost margins are high. The celebrity when associated
with a brand helps in the brand image formulating process. One of the studies from
Till and Busler (1998) shows that if a person has a positive feeling towards a
product it may necessarily not result in purchase. And in view if that study Baker
and Churhcill (1977) mentioned a possible reason that celebrity endorsement
acts on the cognitive and affective components rather than the behavioral one.
The study was in reference to consumers in Chennai. It was based on 3 objectives:
1. Identify factors that motivate and affect the purchase attitude of consumers
2. Influential factors for purchase attitude of consumers
3. to consider the span of leverage conceived by celebrity endorsed
advertisements for buyer durable and to ascertain the buyer responses
There is a link between the attitude towards the advertisements and the attitude
towards the product. You perceive the product as it would be shown in the
advertisements. Angela Byrne, Maureen Whitehead, Steven Breen (2003);
Study the method of transference of celebrity pictures to the
product's likeness by analyzing the usage of celebrity endorsement in the formation
of the retail likeness of a premier European food shop circulation group. The
analysis relates to
an area study with buyers and meetings with advocating bureau staff who
have recognised the benchmark for the alternative of celebrity. The span to which

the market location identifies and buyers aide themselves with the likeness of a
celebrity endorser is explored. The focus was on the behavioral pattern and the
purchase attitude of consumers towards the product if celebrity endorsement is
being used. Considering the limitations the results show that there is an influence of
a celebrity on the mindset of a consumer. Apart from celebrity factors that would
influence the purchase decision of a consumer includes price, quality, peer groups,
and also could be product appearance which is usually not as important as the
quality of the product would play a role in the purchasing action of the individual.
Studied on how consumer endorsement affects the purchase of the consumer in
which durable products were researched such as air condition, television, cars,
washing machine etc. The study was conducted in Chennai. Data was collected from
500 respondents through questionnaire. Technique which was used was regression
and according to the results it shows that celebrity endorses increase information of
product among customers and celebrity also motivates the consumer to purchase
the durable product.
Majeed and Razzak (2011) conducted a study on impact of TV advertisement
repetition, celebrity endorsement and perceived quality on consumer purchase
decision. In this competitive world it is difficult to attract consumers according to
what they like. The cost incurred in retaining customers to their brand is also
increasing day by day because of the benefits it has to offer the consumers in order
to retain them. The advertiser should be aware of the frequency of media that how
many times an ad should be repeated in order to get a positive response and an
effective one from the consumers. Krugman (1972), The former exposure
of client towards television advertisement elevates the curiosity
and otherwise second exposure of television advertisement command towards an
evaluation and within third exposure client chooses that whether towards purchase
the product or not. Vakratas and Ambler (1999) one to three exposures are
enough for purchase. Some studies have revealed that a viewer would positively
view the ad if it is repeated for a few times and quality maybe be perceived
positively as well but repetition of ads more than what is needed would lead to
negative response. High quality brands and luxurious brands advertise themselves
for a few times which are just used as a recall in the consumers mind, to let the
public know that the brand exists. Using celebrities in advertisements generate
attention and greater publicity from consumers. Zufryden (1987) studied the
effect of advertising on consumer purchase activeness that relates to conveying of
publicity from scheduling of brands media to purchase frequency behavior patters
over time. The data was gathered from 200 respondents on the basis of 32 week
periods, purchase record data included in this research based on two situations: (1)
viewer receive a TV ad campaign of split cable and (2) while other does not. The
main focus was on detergent powder and was conducted in Karachi. The data was
collected from females only of different age groups such as 20-25, 26-30, 31-40,
and 40-50. A sample size of 150 respondents was taken from different areas of
Karachi. According to the results it is shown that advertisement repetition, and

perceived quality has a positive significant impact on purchase decision of

detergent powder. Repetition of advertisements makes a perception that it is a good
quality product and produced by a large firm.
Dr. Giridhar K.V (2012). Consumers are exposed to different advertisements
everyday which includes television commercials, newspaper ads, bill boards,
websites, etc. It is the challenge for every brand to steal a fraction of a persons
time to tell the person about the attributes of the product at hand. In order to do
this celebrity endorsement is used as a marketing strategy. It is necessary to match
the promotional features and images of the product with the celebrity image. Tripp
C Jensen T.D and Carlson L. (1994), in their article Trustworthiness/ Credibility
of celebrity endorsers found that how much buyers believe the celebrity endorser
to be credible. When a celebrity endorses one or two goods it is
considerably more dependable than a celebrity who endorses even more products.
Sometimes the product is forgotten and the focus is too much on the celebrity than
the product itself. some of the dangerous dangers which
are connected with superstar endorsement on brand makeup which are not
yet taught by any of the quicker studies are, the reputation of the superstar may
derogate later he/she has supported the goods, inconsistency in
the representative popularity of the superstar, multi brand endorsements by the
same superstar would lead to overexposure, celebrities supporting one brand
and engaging another (competitor), mismatch between the superstar and
the photo of the brand requires to analyze thoroughly on it. All these aspects
are planned to be examined in the prevailing work. The study mainly focuses on
three perspectives that is marketer, celebrity and the consumer. When we define
the consumer buying behavior we talk about the study of how people buy that is
what are the mediums a consumer would use to buy a product, what they buy
which are the products that could be included in fast moving consumer goods, when
they buy what time of the year are the sales at its peak, and why they buy; certain
products have different uses. The different characteristics of an individual such as
demographics, psychographics and behavioral variables are understood. Once the
marketer understands the vital issues that impact the consumers psychology, it is
easier to make strategies accordingly. According to his research his findings show
that celebrity endorsements help recall the associated brand. The buyers are
considerably induced by the celebrity endorser when the goal is on value and price.
For a greater impact on the consumer, celebrities play a major role than sports
personalities or any other models. Data was collected from 50 respondents. He
studied the relationship between the product, the advertisement and the celebrity
endorsing it and how they together act for or against the brand. His study was
limited to India.
Ahmed, Mir, Farooq (2012). Celebrity endorsement is one of these
power devices by which advertisers trial to leverage the likeness and identification
of the celebrity to encourage a merchandise or company (Atkin and Block, 1983).

Three components assist to the effectiveness of message. These are familiarity of

an endorser, likeness of an endorser and admiration of an endorser. Similarity can
be characterized as the span to which the receiver (customer) finds resemblance
between itself and the source (endorser). Familiarity mentions to that how
much information the receiver (customer) posses about the source (endorser). And
likability is the fondness the receiver (customer) evolves in the direction of source
(endorser) because of the personal attractiveness of the endorser, McGuire
(1968). According to the Source Attractiveness Model the customer forms a
positive and favorable perception about those endorsers who are attractive
physically (Erdogan 1999). Attractive endorsers are more influential regarding the
beliefs of the customers (Debevec and Kernan 1984). Whereas the source
credibility model holds that success of a message is based on the apparent level of
knowledge and honesty the customers have in an endorser (Sternthal, Dholakia
et al. 1978). The product match-up hypothesis states that there should be an ideal
match between the celebrity personality characteristics and the brand attributes.
An advertisement, in which the celebrity and the brand go well together, proves to
be more influential and believable (Michael 1989). The meaning transfer model
holds that whatever a celebrity endorses product; customers link positive meanings
with the endorser and ultimately transfer it to the brand. According to the
elaboration likelihood model, two important ingredients, motivation and ability
provide as the base of elaboration likelihood. Motivation to identify the message
comprises being implicated and relevancy whereas ability is based on knowhow of
the person and logical potential to perceive and process the convincing message.
Liker scale was used for the research study which included 5 scales. A sample size
of 200 respondents was selected across the whole of Pakistan out of which 176
responses were received. Their findings revealed that celebrities do significantly
impact the buying intention of the customers. Results also show that consumers
give more importance to product-celebrity match rather than the physical
attraction. The study was limited to some cities of Pakistan.
Al Zoubi and Bataineh (2011). The three main questions include: when do
companies use celebrity endorser in their advertising; how do companies select the
celebrity endorser and how do companies handle the risks of using celebrity
endorser in their advertising (Junokaite, Kammile et al 2007). Because of the
competitive atmosphere these days, we can notice that every winning organization
uses celebrities to endorse its brands and also in commercials. Due to increasing
competition, marketers need to find new ways to sell their products or convince the
consumer to buy their products. There are many factors that influence the buying
decision of a consumer which includes situational, psychological and social
influences (family, culture). The buying behavior is the decision processes and acts
of people concerned in buying and using products. And the consumer buying
decision is the buying behavior of people who purchase products for personal or
household use and not for business purpose (Pride and Ferrell, 2003). The basic

consumer buying decision process includes the following steps:

Problem
recognition

information
search

evaluation of
alternatives

purchase

post
purchase
evaluation

Problem recognition is when there is a gap between your actual state and desired
state. It is when you are aware of the need. For example if you are hungry then you
have a need to have food. The second stage is the information search, which
sources you are using to collect your data and from where you are collecting it.
There are two types of data that is the primary data and secondary data. In primary
data you collect information by yourself by conducting interviews or questionnaires.
In secondary information external sources are used such as the internet or business
magazines could also be one source. After collecting the relevant information and
developing different alternatives you evaluate you alternatives. In this stage you
establish the criteria for evaluation. If we take the example of having food we
search for different restaurants and then evaluate which one would have the best
food if our priority is the food factor or if it is price then we compare according to
prices of the dishes. In the purchase stage you buy your chosen alternative and in
post-purchase evaluation you evaluate whether it was satisfaction or
dissatisfaction.A five point likert scale was used for the measurement. One of the
limitations which greatly impacts on the results is that 91 students were taken as a
sample therefore we cannot generalize the results with the whole market. As their
study was done in Jordan their findings show that celebrity endorsement does not
have any greater impact that non-celebrity advertisements but using superstars
increase the equity of any company and helps consumers recall the brand while
they go for shopping and increase consumer awareness with a brand.
Hakimi, Abedniya, Zaeim (2011). Making use of celebrities as part of companys
marketing strategy is a trendy way of sustaining the image of a firms brand. In
todays world, to carry the corporate or brand image, it is predictable for major firms
to use celebrity endorsers in their marketing communications strategy. Firms intend
to control the actions of consumers by using celebrity endorsers, so that they will be
tempted to purchase their goods. Some of the outstanding factors for a brand
image are their specific logo that shows off the organizations image, their
catchphrase that would describe the organizations core business and key values
that would verify their characteristics. Brand image is the image that is consequent
from different sources set in the consumers mind. For example Toyota is perceived
a reliable car. The accomplishment of celebrity endorsement depends on the good
looks of the celebrity as well. Consumers are prone to have positive conventional
images of such people and according to research attractive celebrities are naturally

able to change customer beliefs, (Debevec and Kernan, 1984; Chaiken, 1979).
Expertise can be described as the degree a messenger or communicator is
supposed to be a suitable source of knowledge. According to Erdogan (1999) wellinformed professional celebrities have an influence on the perception of the brands
product quality. Another important aspect in advertisement is the trustworthiness
from the customers point of view (Erdogan, 1999). The product match-up
hypothesis states that the message portrayed by a celebrity image and the
products message should go hand in hand for the endorsement to work. The
correspondence between the celebrity and the brand image showed by Misra in
1990 is dependent upon the level of projected fit between these two factors. They
used the reference of McCracken (1989) who defines celebrity endorser as a
public figure who has great popularity representing a brand in an advertisement.
This means that any celebrity who is associated with a brand would be more
popular than any other famous superstar. A total of 150 students were analyzed
between the ages of 18 to 33 as they are usually the target audience for advertising
media. The study included five variables. According to their research credibility,
attractiveness, expertise and celebrity match-up with the product has a positives
relationship with the brand image whereas trustworthiness has nothing to do with
building a brand image. The study was bounded to the students of the university
the research took place so it could not be generalized with other consumers. It took
place in Malaysia.
Pughazhendi and Ravindran (2012). According to the paper promotion plays an
important role in achieving the organizations goals and strategies most importantly
in the market environment. Endorsers are those who use their fame and popularity/
public recognition on behalf of consumer goods by appearing with it in an
advertisement. Many business hope that using celebrities in the advertisements
brings about a unique and relevant position in the minds of the consumers.
Advertisers often choose endorsers as a promotional approach to convey the
attributes of their product or brand. Today, this method appears to be on its high
across all media types. However, it is not necessary that using a celebrity who can
create early attention for an advertisement, results in attitude changes towards the
product. Previously one in eight advertisements featured celebrities compared to
today which features one in four advertisements. Marketers use this strategy in
order to help improved storage of information in consumers minds which they can
easily recall while in purchasing situations. Celebrities should own know-how in
product categories that is parallel with their public profile and their perceived life
styles. Their image revealed in personal and the public influences the way
consumers comprehend celebrities. The celebrity endorsement can have an impact
on the consumers recall assessment, attention and buying objective. The
credibility, attractiveness and match up are the main criterias for selecting the
celebrities (Mohammad and Al Zoubi. 2011). Associating celebrities positively
gives more visibility to the product. Male celebrities are more effective that female
as an endorser (Bhavana, 2011). Advertising also has emotional appeals which

imply a huge impact on the decision making process of the customer for the
product. The consumers are encouraged considerably by the endorser when the aim
is on quality and price. The purchase approach is persuaded by the celebrity
endorsement factors, product evaluation and brand recognition. Mismatched
endorsers which mean that celebritys personality does not match the product
characteristics will have a much lesser impact. At the same time if an endorser does
not match up with the product but still is viewed positively would still have an
impact on the consumers purchase (Zafer et al., 2001). But although consumers
might have a favorable disposition towards celebrities, it does not mean that the
consumer might purchase it (OMahony and Meenaghan, 1998). Conducting a
research in India their findings show that consumers are in favor of celebrity
endorsements but not necessarily lead to a call for action. The results show that
there is positive relation between attitude toward celebrity endorser and attitude
toward advertisements and brands. Questionnaires for sample of 200 respondents
were analyzed using statistical tools. Age groups between 19 to 25.
Daneshvary and Schwer (2000), in their article The association endorsement
and consumers intention to purchase found that how consumers have a
connection towards the celebrity endorsement/endorser. If a company want a
consumer to associate to an endorsed product it is important to choose an endorser
who uses the product and where that use is a reflection of professional expertise. A
top model endorsing make-up is good, while a football player endorsing soap
powder is less good.
McCrackens (1989), in his article Who is celebrity Endorser? Cultural
foundations of the Endorsement Process states that a celebrity endorser is a oneby-one who loves public acknowledgement and
who values this acknowledgement representing a buyer good by seeming with it in
a promotion (marketing communication). Earlier studies evidence that, in general,
celebrity endorsement leverages the sentiments of the buyers and can
also influence the mind-set buyers have in the direction of the promotion and mindset in the direction of the emblems, which can boost the buy aims and, accordingly,
boost sales.
Ghani and Kakakhel (2011). Today, the present marketing policies of nearly
every business relies heavily on advertising to support their product to their target
markets. With the intense competition in the market these days it is getting difficult
to influence customers who are becoming progressively more educated, highly
developed and selective. Having a good product alone is not enough to compete in
markets of high standards. Usage of celebrity endorsement advertising had become
a persuasive feature in present advertising.
G.J. Tellis (1998) classifies endorsers into 3 broad groups: experts, lay endorsers
and celebrities. An expert is who has a command over a specific interest area or a
particular segment; lay endorsers can be real and made up characters to which

people can associate themselves. And celebrities are those who enjoy popularity
and fame. A brand during its introduction phase has no personality but when a
celebrity is attached to the brand, the product and the company gets instant
identification, appeal and charm (P. McDonald, 2010). The study was conducted
aiming at examining the impact of celebrity endorsement in view of youth of
Pakistan. Data was collected through questionnaires using 5 point Likert scale and
some close-ended questions using nominal scales. The population of the study
comprised of the youth located in the cities of Islamabad and Peshawar. Including
both male and female in the range of 15 and 30 years, a sample of 150 respondents
was selected. According to the results and data collected it was concluded that
celebrity endorsement has a potential of being noticed and liked by the viewers.
The celebrity does catch the attention of the consumer and it is because of the
celebrity that the consumer notices and remembers the product. But the important
point to be considered is that it plays a very insignificant role in the final decision
making for buying a new product as other factors are also put into consideration by
the consumer.
Agrawal and Dubey (2012). In this world of modern marketing with so many
advertisements flooding the market it is very difficult to get noticed and
differentiate yourself in a unique way. Usually commercials are gone unnoticed on
T.V and magazines. In a market where advertising plays an important role in
managing consumer purchase, it becomes relevant for companies to initiate all
possible measure to influence, motivate and repeatedly desire to purchase, in the
customer through an effective advertising campaign. Similar to other researches,
this research paper also mentions that using superstars in advertisements
generates lots of publicity and attention. Supriyo Patra and Saroj K. Datta
(2010), from their study concluded that choice of right and suitable celebrity for
brand endorsement is a challenging plan. The advertisers and agencies should
consider various proportions while celebrity selection. The primary research was
conducted through self-designed questionnaires. A sample size of 400 respondents
including male and female were taken. Age group between 18 60 years belonging
to different occupations. The findings showed that male endorsers are more popular
and effective than female endorsers. As concluded by other researches this
research results also show that celebrity endorsement affects consumers decision
positively towards a product. In India, bollywood stars are still the rulers of the
advertisements field.
Amos, C., Holmes, G. and Strutton, D. (2008). About 25% of U.S
advertisements employ celebrity endorsers (Shimp, 2000). The significance of
celebrity endorsers, yet, does not stretch out to the fact that they are used by firms
who want to boost their revenues, but how these celebrities add value to the
company, brand and/ or product. Kaikati (1987) recognized the common types of
celebrity endorsers, advantages of using celebrity endorsers, hazards linked with it,
and Federal Trade Commission guidelines. Erdogan (1999) assessed the

usefulness of celebrities, pros and cons associated with it and the application of the
source credibility and source attractiveness model. According to the research paper
review of literature revealed the following key predictors which are:
1. Celebrity performance: this refers to the level of accomplishment a celebrity
gets at any given time in their chosen profession. When a celebrity fails to
perform well enough, as outlined by consumers, a celebrity endorsers
effectiveness tends to decline (Agrawal and Kamakura, 1995).
2. Negative celebrity information: (Erdogan and Baker,2000),if there is a
strong relation between the brand and the celebrity then negative
information about the celebrity will have a negative impact on the endorsed
brand.
3. Celebrity credibility: the literature exploring celebrity endorsements has
generally employed one of the two fundamental source models: (i) the source
credibility model which analyses the factors leading to the perceived
credibility of the communicator (Hovland et al.1953). The model argues
that the effectiveness of a message depends upon the observed level of
expertise and trustworthiness related with an endorser or communicator
(Erdogan 1999). The source attractiveness model puts forward that the
attractiveness of any source is concluded by the communication receivers
perceptions of the sources similarity, familiarity and likeability.
4. Celebrity expertise: Erdogan (1999, p. 298) defines celebrity endorser
expertise as the extent to which a communicator is perceived to be a source
of valid statement. The level of perceived celebrity expertise should foresee
celebrity endorser success.
5. Celebrity trustworthiness: trustworthiness is the degree of confidence
consumers place in a communicators objective to express or communicate
the statement he or she considers most valid (Ohanian 1990). Much of the
literature supports the positive effect of trustworthiness on effectiveness
(Chao et al. 2005).
6. Celebrity attractiveness: an important indicator of effectiveness (Chao et al.
2005). Some authors implied that physically attractive celebrities are a
judgment of effective advertising (Till and Busler, 2000). Certainly,
physically attractive celebrities are usually out looked more favorably on
various personality characteristics than their less attractive corresponding
items (Kahle and Homer 1985; Eagly et al. 1991). Attractiveness was of
use in increasing positive advertisement evaluations; it was valuable in
making stronger purchase intentions (Baker and Churchill, 1977).
7. Celebrity familiarity and likeability: some studies treat these two equivalent
to attractiveness (Kahle and Homer 1985) but other studies deal with it
separately, looking into each concept effect on effectiveness as each were
different from attractiveness (OMahoney and Meenaghan, 1998).
8. Celebrity/product fit: in this we look at how much is there a match between
the celebrity endorser and the product being endorsed Some researchers
assumed that better the celebrity/ product fit, as comprehended by the

consumers, the higher the level of endorsement effectiveness. But this was
only limited to attitude towards the brand, it was not effective for other
measures such as purchase intention. Apart from the effectiveness or non
effectiveness the present literature suggests that the phenomenon should
play a vital role in celebrity endorser effectiveness (Till and Busler, 2000).

3. RESEARCH METHODOLOGY AND

HYPOTHESIS

THEORETICAL FRAMEWORK

celebrity
celebrity
popularity
popularity

price
price

consum
er
purchas
e

quality
quality

celebrity
celebrity
personality
matching
matching
with
the
with the
product

3.1

INTRODUCTION

The term Methodology refers to the science or study of methods. Research is any
organized inquiry carried out to provide information for solving a problem. A good
research should have clear purpose, detailed research process, through research
design, high ethical standards, clearly mentioned limitations, unambiguous findings
and justified conclusion.
The research methodology helps to learn how to use libraries and other information
resources, enables critical evaluation of literature; develops special interests and
skills. Helps to understand attitude of others and creates awareness of special
needs of research process.
The Marketing research society defines research as collection and analysis of data
from a sample of individuals or organizations relating to their characteristics,
behaviors, attitudes opinions or possessions. It includes all forms of marketing and

social research such as consumer and individual surveys, psychological

investigations, observational and panel studies.
Research also refers to a systematic investigation, including research development,
testing and evaluation, designed to develop or contribute to general knowledge.
The purpose of this study is to investigate the effect of celebrity endorsement on
the purchase of the product.

Generally, in this part I am going to mention the research design that I have used. This
research design provides the glue that holds the research project together. A design is used to
structure the research, to show how all of the major parts of the research project work
together.
3.2

RESEARCH METHODOLOGY

Research methodology is the base of the study conducted in any discipline. It is one
of the critical phases of research that is used to determine the course of action.
Researchers have to keep their line of working according to the nature and areas of
particular research (Malhotra 2005). Various models can be used to elaborate the
methodology of any research. This research is based on one of the commonly used
model, the research onion approach (Saunders et al (2009). Every step of the
methodology of research is well explained in this model and can be used as a
yardstick to measure decided parameters of research methods

Source: Saunders et al (2009: 132)

3.3

RESEARCH APPROACH

Saunders et al (2009) elaborated the two most important investigation

approaches in the second layer of research onion model, that is:
Inductive approach
Deductive approach

Inductive approach
According to the Malhotra and Burks (2007), observation and collection of
facts is the main output of inductive approach. A specific instance to the
evolution of a particular theory is followed in this approach. Therefore this
approach is widely based on the qualitative approaches of data collection. It
is also termed as bottom up approach in social sciences as it derives the
results from specific to general perspectives.

Deductive Approach
Schwab (2004) observed that deductive approach I top down approach as it
moves from the general to a specific point. A broad concept is used to verify
the findings for a specific area of research. In this research, deductive
approach is selected as the broad theories ware applied to evaluate the
impact of celebrity endorsement on the consumer purchase. This approach is
objective in nature; therefore quantitative methods are used to collect the
data from the consumers of the university.

3.4

RESEARCH DESIGN

Researchers usually use one method for their research. But good research usually
benefits from the use of a combination of methods. Hansen & Cottle (1998) propose
that researchers should not only consider the most appropriate method for their
study or problem but also what combination of research methods might produce a
better and deeper understanding of it. The aim should always be to choose those
methods, or combination of methods, which can elaborate the most angles and
dimensions of what are invariably multidimensional and complex processes and
phenomena (Hansen, A. & Cottle, S. 1998).
For the present topic of research, the design can follow any or a combination of
exploratory, descriptive, and/or of causal approaches. Exploratory approach is
selected when problem is not clearly described or its nature is not clear, in this
framework the missing parameters of problem are explored with the help of
grounded theory, primary research, and in contrast, the descriptive approach
exhibits an apparent association with specific hypotheses and definite

investigations. Therefore, descriptive researches estimated the extent of a

population and revealed associations among the variables under study. Finally,
causal designs of research deals with the concept of rationale. They disclose the
reason and its outcomes among two or more variables. Causal research
interconnects the variables in a more accurate and suitable ways (Blumberg, et al.,
2005).

3.5

TYPES OF RESEARCH

Descriptive: Cooper and Schindler (2003, p10) refer to descriptive studies as

those used to described phenomena associated with a subject population that have
certain characteristics. It tries to answer to the questions who, what, where and
sometimes how. This is the design constructed in carrying out the former stages of
this study. Where it first begins with who founded the Gulf Food Industry, where
does it began, what it was actually, when did it began to grow and how it did
manage to become what it is today.
Explanatory is more of a revolutionary kind of research where the scope is far
fetched to find out something new. In his literature, business Research methods,
(2003, p72) D. Cooper claims that exploratory study is a study in topic areas where
the developed data is limited
Causal: has to do with an explanation as to why a certain circumstance or situation
is what it is where one specifically tries to pinpoint and undermine the possible
reasons for why it is so. Or has on another or why outcomes are obtained

3.6

TECHNIQUES AND PROCEDURES

The procedures and devices used to obtain secondary and primary data vary
depending on the sampling and measurements requirements. Data collection is a
key part of the research plan and often represents the biggest cost of primary
research. Data collection methods need to be mastered by the professional
marketing researcher.
Method
Each methodology uses sampling which allows the researcher to reach
conclusions about a population within a certain degree of accuracy without having
to survey anyone. It is not necessary to have a large sample size. Samples as few as
one percent of a target market can often provide reliable results, under the direction
of experienced researchers

3.6.1 PRIMARY RESEARCH

Primary Research relates to research activity which is being carried out to meet the
specific information needs of the research project undertaken (Warrington, 1999:31)

3.6.1.1

TYPES OF PRIMARY RESEARCH

Qualitative research - are usually undertaken using in-depth interviews or

discussion groups (focus groups) among a relatively small number of people. Its
purpose is to provide exploratory, explanatory and diagnostic information-the how
and the why- in depth. Such interviewing conducted by experts, preferably face to
face, although telephone and on-line methodologies are also used. This provides
definite market information regarding the opinions and behaviors of the subjects in
the market research study.
Quantitative research - is often an interactive process in which evidence is
evaluated, theories and hypotheses are refined, technical advances are made, and
so on. Usually is used to gain a general sense of phenomena and to form theories
that can be tested through further quantitative research. Quantitative research
using statistical methods typically begins with the collection of data based on a
theory or hypothesis, followed by the application of descriptive or inferential
statistical methods. A fundamental principle in quantitative research is that
correlation does not imply causation. This principle follows from the fact that it is
always possible that a spurious relationship exist for variables between which
covariance is found in some degree.

3.6.1.2

MODELS OF COLLECTING PRIMARY DATA

Observation: To gather accurate information about how respondents actually

behave. The advantage of observation techniques are that one can view or witness
the respondents behavior as they are actually occurring which can help one to
adapt them even if the respondent is not aware of it or not willing to share it.
The drawbacks of Observation techniques are that it is expensive and is difficult to
interpret seen behaviors and it is complex to categorize observations.
Communication, Questionnaires, surveys- this is a very systematic way or
retrieving information from people in a non-threatening way. The advantage of using
Questionnaires is that the respondents can answer to your queries anonymously, it
is inexpensive for the researcher, the results that are obtained are easier to
compare and analyze since it is in a systematic form and thus gather huge amount
of data. The disadvantages can be that you might not get a careful feedback, the
language or wordings can bias respondents responses.

A questionnaire almost always is self-administered, allowing respondents to fill them

out themselves. All the researcher has to do is arrange delivery and collection.
There are two types of questionnaires.
Structured Questionnaire helps the respondent to respond more easily and help
the researcher to accumulate and summarize responses more efficiently but, they
can also constrain the respondent and limit the researchers ability to understand
what respondent really means.
Non structured Questionnaire while there are wide varieties of structured
Questionnaires, there are relatively few unstructured ones, generally, its written
text if the respondent (or interviewer) writes down text as the response, and youve
got an unstructured response format. These can vary from short comment boxes to
the transcript of an interview.
Focus groups: Involves an objective discussion leader or moderator who
introduces a topic to a group of respondents and directs their discussion of it in a
non-structured and natural fashion. Explores a topic in depth through group
discussion, e.g., about reactions to an experience or suggestion, understanding
common complaints, etc; useful in evaluation and marketing. The advantage of
focus group is that one can get quick and reliable common impressions and can be
an efficient way to get much range and depth of information into short time. The
disadvantage is that it is hard to analyze responses and one would require a good
facilitator for safety and closure and also it is difficult to schedule 6-8 people
together.
Interviews - Unstructured conversation on a given topic between a respondent and
an interviewer. This is when one wants to fully understand someones impressions
or experiences, or learn more about their answers to questionnaires. Mechanism for
obtaining detailed insights and personal thoughts. One on one mostly at places of
business, consumption, etc. Flexible and unstructured, but usually with an interview
guide. The Advantage of in depth interview is that you get full range and depth of
information and also develops a relationship with the client, leads to flexibility with
the client. The disadvantage is that it can be time consuming and could be hard to
analyze and compare possibilities of being costly too. In some cases the interviewer
can bias clients responses.

3.6.2 SECONDARY RESEARCH

This research is usually the easiest and least expensive, secondary research is
information that already exists which might be in the form of a study, a group of
articles on a specific topic or a demographic or statistical data gathered by
someone else. It helps to review and analyze the existing data on your target
markets available from magazines, books, published research studies, governments
publications, etc. secondary data also helps to asses environmental factors such as
social, economic, political and evaluates the competition.

3.6.2.1

METHODS OF SECONDARY RESEARCH

As secondary research already exists, there is no specific scientific method or

technique that needed to collect data. The efforts spent in locating and gathering
market information from reliable sources. Some of the sources used are as follows:

Libraries and other public information centers

Books and business publications
Magazines and newspapers
Software packages
Internet search engines which contain a massive collection of every type of
data that might be required

3.7

SAMPLING SIZE AND TECHNIQUE

Sample - a subset of the population of interest.

Census - data obtained from every member of the population of interest, rather
than from a sample of that population
An integral part of research design is the general approach to selecting data
sources. Ensuring that data will meet design standards and be projectable is critical.
Sample planning and sampling methodology are key skills of the marketing research
professional. Sampling in marketing research is the process of selecting
representative units from a total population. Most types of marketing research
employ sampling techniques. There are two basic types of sampling: probability
sampling and non- probability sampling.
With probability sampling, every element in the population being studied has known
chance of being selected for study. When marketers employ random sampling all
the units in a population have an equal chance of appearing in the sample. Another
kind of probability sampling is stratified sampling, which divides the population of
interest into groups according to a common attribute, and then a random sample is
chosen within each group.
Every research has a sample size. The sample size of this research was 150
respondents. The basic reason behind this non probability based sampling
technique is that researchers will not consider specific level of consumers, gender
and experience, so all the respondents can be selected randomly. The size of the
sample is ample to provide us sufficient data to finalize the results.

3.8

DATA COLLECTION METHODS

The data collection methods used in this dissertation is both Primary methods and
Secondary methods. I have selected descriptive research method because the
research requires explanation of consumer behavior towards celebrity endorsed
products
Primary data: Since I decided to ask directly, the consumers with questionnaires
in order to better fulfill my study purpose. I choose structured questionnaire as the
technique to collect data. The process is to make a questionnaire with structured
and key questions; the answer is to be give using the five point Likert scale (1=
strongly disagree to 5= strongly agree)

Secondary data: The secondary information that I have used are the information
from the Internet, different research papers and articles.

3.9

LIMITATIONS OF THE STUDY