Final Report

“ROLE OF CELEBRITY ENDORSEMENT
FOR SALE PROMOTION”
RESEARCH PROJECT
Group Members:
Rana Waqar Ahmed L1S10MBAM2163
Muhammad Arsalan L1S10MBAM0156
Muazma Riaz L1S10MBAM0193
Farah Waseem L1S10MBAM2136
Momina Arif L1S10MBAM2182
Course: Research Methodology (RM3103)

Section: (G)
Submission Date: 9th June, 2012
2 Role of Celebrity Endorsement for Sale Promotion
TABLE OF CONTENTS
CHAPTER #1 ............................................................................................................................................... 5
INTRODUCTION ........................................................................................................................................ 5
PURPOSE OF OUR RESEARCH ............................................................................................................ 8
CHAPTER #2 ............................................................................................................................................. 10
LITERATURE REVIEW ........................................................................................................................... 10
CONTROL VARIABLES ...................................................................................................................... 13
CHAPTER #3 ............................................................................................................................................. 19
OPERATIONALIZATION ........................................................................................................................ 19
FORMULATION AND EXPLAINATION OF VARIABLES .............................................................. 20
INDEPENDENT VARIABLE................................................................................................................ 20
DEPENDENT VARIABLE QUESTION ............................................................................................... 21
CONTROLLED/MODERATE VARIABLE’S QUESTIONS ............................................................... 22
CHAPTER #4 ............................................................................................................................................. 28
METHODOLOGY ..................................................................................................................................... 28
STAKEHOLDERS OF OUR RESEARCH ............................................................................................ 29
BIASES/LOOPHOLES OF OUR RESEARCH ..................................................................................... 33
FLAWS OF OUR RESEARCH.............................................................................................................. 34
CHAPTER #5 ............................................................................................................................................. 35
ANALYSIS ................................................................................................................................................. 35
CHAPTER #6 ............................................................................................................................................. 47
CONCLUSION ........................................................................................................................................... 47
CHAPTER #7 ............................................................................................................................................. 50
TABLE OF FIGURES ................................................................................................................................ 50
CHAPTER #8 ............................................................................................................................................. 65
APPENDIX ................................................................................................................................................. 65
CELEBRITY ENDORSEMENT QUESTIONNAIRE ........................................................................... 66
CHAPTER #9 ............................................................................................................................................. 69
BIBLIOGRAPHY ....................................................................................................................................... 69
Table of Figures:
Figure-1: AGE .............................................................................................................................................. 51
Figure-2: INCOME ....................................................................................................................................... 52
Figure-3: GENDER........................................................................................................................................ 53
Figure-4: OCCUPATION ............................................................................................................................... 54
Figure-5: PURCHASE DECISION ................................................................................................................... 55
Figure-6: INFLUENCE OF CELEBRITY ............................................................................................................ 56
Figure-7: SALES PROMOTION...................................................................................................................... 57
Figure-8: PURCHASE BEHAVIOR .................................................................................................................. 58
Figure-9: GENDER INFLUENCE ON BRAND .................................................................................................. 59
Figure-10: FREQUENCY OF ADVERTISEMENT ............................................................................................. 60
Figure-11: A Relationship between Celebrity Endorsement ...................................................................... 60
Figure-12: No tear Approach ...................................................................................................................... 61
Figure-13: Celebrity Image Approach ......................................................................................................... 62
Figure-14: “High- and Low Involvement Product” ...................................................................................... 62
Figure-15: Brand Image Approach .............................................................................................................. 63
Figure-16: Celebrity Endorsement Affecting Consumer Pre-purchase Attitudes ....................................... 63
Figure-17: Relationship between Endorser and Corporate Credibility and Reaction To Advertising ........ 64
Figure-18: Three Dimensions of the Source-Credibility Scale..................................................................... 64
CHAPTER #1
INTRODUCTION
In a market where advertising plays a vital role in coordinating consumer purchases, it becomes
pertinent for companies to induct all possible measures to influence motivate the customers and
make a desire to purchase, in the customer through an effective advertising campaign.
Celebrity endorsement has increased in the past few years and it has become a widespread
advertising strategy for business firms to advertise their products. Celebrities act as a
spokesperson in advertisements. Theory and practice proves that the use of superstars in
advertising generates a lot of publicity and attention. As we all see the advertisements having
celebrities from different sectors like Shahid Afridi in H&S’s ad, Reema in LUX etc. They all
effect the brand endorsement very much and that’s a practical example of celebrity brand
endorsement.
The use of celebrity endorsement strategy is nowadays more frequently used by marketers in
order to increase their sales and thereby to extend the market shares. Many celebrities are used in
various marketing campaigns and in most cases; the use of celebrities as endorsers is seen from
mainly positive aspects (making good and strong impacts of ads on customers). Celebrities, as
endorsers affect consumers in their purchasing decisions when a celebrity gets associated with
negative publicity. Another cause of interest is which factors of a certain celebrity are most
important and crucial in consumer’s perceptions, in the case of negative publicity. Celebrities
have also been in demand having succeeded in being effective by rising above the clutter &
grabbing the attention and focus of the consumer. They also succeed in creating an aspiration in
the minds of the consumer to acquire what their favorite celebrity endorses. (Dimed & Joulyana,
2005)
A firm that decides to employ a celebrity to promote its products or services has a choice of
using the celebrity as:
Testimonial: If the celebrity has personally used a product or service and is in a position to attest
its quality, then he or she may give a testimonial citing its benefits. For instance Aishwarya Rai
endorses Lux by testifying the quality of the product as it forms a part of her consumption
basket.
Endorsement: Celebrities often lend their names to ads for product or services for which they
may or may not be the experts For instance Sachin Tendulkar has been endorsing the Palio brand
of Fiat.
Actor: A Celebrity may be asked to present a product or service as a part of character

enactment rather than personal testimonial o r endorsement. For instance actors of famous
drama serial Humsafar (Mahira Khan and Fawad Afzal Khan) enacts in advertisement of
Aquafina mineral water.
Spokesperson: 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.
Similarly every product has an image. The consumer tries to consume a brand which has the
maximum fit with his/her own personality. The celebrity endorser fits in between these two
factors, where he tries to bring the image of the product closer to the expectation of the
consumer, by transferring some of the cultural meanings residing in his image to the product.
(Khatri, 2006)
Hypothesis:
Increase in celebrity endorsement causes to increase in sale of the products or services.
PURPOSE OF OUR RESEARCH
The purpose of this study was to develop a scale for measuring celebrity endorsers’
attractiveness and worthiness towards the sales promotion. Celebrity endorsements spend and
earn millions every year. And are widely considered and preferred by marketers to promote their
brands in the form of products or services. Using celebrities in advertisements for endorsing
brands has become a trend for building the brands as well as the company's goodwill and
creditability.
Who are these celebrities? And what does celebrity endorsement mean? What is the motive
behind promoting the products through celebrities? Which sort of benefits a company could
enjoy from this?
A celebrity is a person who is well recognized at a large scale among public. It may be a Sports
persons, film stars, models, political personalities, athletes, singers, literary persons etc.
Whereas attributes in celebrities like attractiveness, their lavish lifestyle and special skills due to
these attributes they enjoy a high degree of public awareness and attention. (Schlecht.Christina,
2003).
Celebrity endorsement, thus, is one of the powerful tools adopted by companies/marketers and
advertisers to build up their brand(s) in the crowded marketplace. Companies frequently use
celebrities which play a role of the spokespersons to deliver their advertising message to
convince for their brands. A widely used and very popular type of spokesperson is the celebrity
endorser (Tom et al. 1992). The company uses the celebrity's characteristics and qualities to
establish an analogy with the products specialties with an aim to position them in the minds of
the target consumers.
“A celebrity endorser is an individual who is known by the public for his or her
achievements in areas other than that of the product class endorsed.” (Friedman, 1979)
The motive behind promoting the products or services through celebrities because consumers
prefer to own a brand that has a good reputation, when someone like a famous film star or a sport
star is associated with that particular brand, it is obvious that the consumers will get attracted
towards that particular brand. Because the consumer feels that using a brand promoted by a star
can satisfy that longing. This is true for classic forms of celebrities, like actors (e.g Ali Zafar,
Atif Asalm, Attiqa Udho), models (e.g. Amina Sheikh, Nadia Hussain, Iman Ali, sports athletes
(e.g.Ehsaam ul Haq, Wasim Akram and Shahid Afridi),
Using celebrities as spokespersons goes back to their huge potential influence. Compared to
other endorser types, famous people achieve a higher degree of attention and recall. They
increase awareness of a company’s advertising, create positive feelings towards brands and are
perceived by consumers as more entertaining (Solomon, 2002)
The company can enjoys benefits using celebrities in advertising to positively affect consumers
brand attitudes and purchase intentions. The purpose of conducting research that is role of
celebrity endorsement in sales promotion is to create awareness towards purchase decisions.
CHAPTER #2
LITERATURE
REVIEW
Celebrity Endorsement:
Start with the term of Celebrity Endorsement that is the Independent Variable of our review.
This is the most exploited approach in marketing for building up the brands in a market place.
Where celebrity endorser plays an effective role to attract, motivate, influence the customers, and
creates a desire for the purchases. (Khatri, 2006). Celebrity endorsement has been established as
one of the most popular tool of advertising in recent time. It has become a trend and perceived as
a winning formula for product marketing and building image. (Escalas & Bettman, 2008).
Celebrity endorsement has increased in the past few years and it has become a widespread
advertising strategy for business firms to advertise their products. Celebrities act as a
spokesperson in ads. (Rajakaski & Simonsson, 2006). The strategy to use celebrity as brand
endorser is very effective and resulting because the consumers can be easily attracted to the ads
and their attention is grabbed completely. The message can be conveyed easily and it sustains in
the minds of the consumers for a longer period of time. (Roozen, 2004).Celebrity endorsement
advertising strategies can under the right circumstances indeed justify the high costs associated
with this form of advertising. (Schlet, january,15 2003)
Attitude toward advertisement is a mediator between attitude toward celebrity endorser and
attitude toward brand. (Ranjbarian, shekarchezade, & Momeni, 2010)
Celebrity endorsement and advertising strategies if correctly blended in terms of marrying the
strengths of the brands with the celebrity’s quality indeed justify the high cost associated with
this form of advertising.
Sales:
Celebrity endorsement causes to increase the Sales of brands. The sale promotion due to
celebrity endorsement is considering Dependent Variable of the review. Celebrity endorsements
are expected to be done by strong ideas to make it more effective because celebrities can have
impressions on consumers both whether positive or negative which ultimately effects upon the
sale of the brands. (Khatri, 2006).If a marketer has successfully done all the process regarding
selection of celebrity and he gets right celebrity for a right product. It will boost up its brand or
product. (Schlet, january,15 2003).
By analyzing the output resulting from testing hypotheses, it can be concluded that
attitude toward celebrity endorser has directly or indirectly influence on attitude toward brand.
(Ranjbarian, shekarchezade, & Momeni, 2010).
It is best to invest in good ideas which will bring good returns. The need is to focus less
on your return on investment and think more in terms of your return on ideas. (Agarwal &
Dubey, 2012)
CONTROL VARIABLES
Celebrity/ Source Effectiveness:
If celebrity endorsements are the brand ambassadors which are used to promote the
brands then it would enhance the celebrity effectiveness with the advertising effectiveness that
makes two sided effect. This is significantly higher than one sided effect. It is considering as an
effective source for the promotion of the brands because celebrities effectiveness would also
increase. (Kimins, 1989)
Overall Advertising Effectiveness:
The celebrities are used to promote the brands which would ultimately cause for sales
promotion. The overall advertising effectiveness increases as the celebrities are included in
advertising for the promotional strategy. This makes the one sided effect. If the effectiveness of
overall advertising increases then it will make a positive impact upon the sales. (Kimins,
1989).Advertiser are devoting increased attention to promotional endorsements. The relationship
of between the endorser and the product represents connection or perception by the consumer to
extent with which the endorser is associated with product. (Monroe, 1981)
Add Value:
There is an association between celebrity endorser’s effectiveness in an advertisement that

how it could effect. Because celebrity endorsers are used to add value to a company, brand or
services. If the celebrity would maintain the credibility and trust factor then it will add the value
to the company’s image. (Clinton, 2008). Celebrity endorsement adds value to the brand,
business or product, or for whatever purpose they are used for in the ads. Basically the celebrities
are considered to be a spokesperson who adds the value to the product while conveying the
message or advertising it visually (Ecanning, 1979)
Quality of celebrity:
The qualities of celebrities are transferred to the product and it is a very good and
important factor for using celebrities. The main task for the marketer is to choose the celebrity
whose personality and characteristic best fits the product which is to be advertised, and for which
the business wants to communicate with the consumers. (Ecanning, 1979)
Positive image of celebrity:
Positive image of the celebrity can transfer the brand successfully. Consumers are
considered to trust upon the celebrities if they engage in promotion of any of the brands. If they
would maintain their positive image then they will also give a positive image for that particular
brand. (Clinton, 2008)
Negative image of celebrity:
But if negative information about the celebrity endorsed then it could harm the brand and
alerts about danger, risk and toughness. (Clinton, 2008)
Celebrity trustworthiness:
Many research suggested that consumers purchase decisions and attitude towards brand
are normally affected by endorser trustworthiness, attractiveness as well. Trustworthiness
includes Dependable, Honest, Reliable, and Sincere. (Ohanian, 1990) (Ronald E. Goldsmith,
2000)
Multiple celebrity endorsement:
The act of multiple products endorsed by the celebrities leads to certain impressions
about the celebrity. It could be said that if celebrity endorses multiple products then it would
make it less favorable for consumer’s perceptions regarding endorser trustworthiness, likability,
credibility and brand and advertisement evaluation. (Carolyn tripp, the efftects of mutiple
product endoresement by celebirties on consumer attitude and inttentions, 1994, 20)
(Ranjbarian, Shekarchizade, & Momeni, 2010) (Schlecht, 2003).
Source /Endorser credibility:
"Source credibility" is a term commonly used to imply a communicator's positive

characteristics that affect the receiver's acceptance of a message. Source credibility is often
considered a categorical variable, such that individuals are presented as having high or low
credibility towards brand (Ronald E. Goldsmith, 2000) (Ohanian, 1990) (Carolyn tripp, the
efftects of mutiple product endoresement by celebirties on consumer attitude and inttentions,
1994, 20)
Source/Endorser Attractiveness:
Endorser’s Attractiveness can be considered as a dimension of authentic and credible

source and attractive communicators are often liked more and have a positive impact on opinion
change and product evaluations. The credibility of the advertisement endorser and the company
might affect the decisions of consumers. (Ohanian, 1990)
Celebrity Familiarity
The effectiveness of a message depends on source's "familiarity," that how familiar the
brand endorser is? And how the consumers are familiar with the endorser?(Ohanian, 1990)
Celebrity likability:
Celebrity likability is one of the most important factor towards sales promotion and also
the main factor in source-attractiveness model. (Ohanian, 1990)
Brand Image:
The celebrities used for the endorsement can influence and enhance the image of the
brand. Celebrity brings meanings and creates beliefs in the minds of the consumers that the
company wants. This could only be done by taking the help of celebrities, especially those who
are very famous and favorite among the public. (Bergstrom & Skarfstad, 2004) .If a brand would
maintain celebrity credibility, expertise, trustworthiness then they would be able to grab
customer attention and purchases which would cause consumer retention and repurchase
intentions. (Clinton, 2008) The brand image construct by the Celebrity who is endorser of the
brand and celebrity image also effect on brand self image. When consumers aspire to be like the
celebrity, then Celebrity endorsement enhances self-brand connections but it is necessary the
brand image should be connect or match the celebrity personality if it is not match then maybe it
will create bad image of brand. (Escalas & Bettman, 2008)
Brand meaning:
The brand meaning effects further limited as to the degree of quality principle, by which a brand
communicates something about the user, with more symbolic brands having stronger effects than
less symbolic brands. (Escalas & Bettman, 2008)
Positive Brand Image:
The strategy to use celebrities has become very famous and essential for advertisements,
to give a very positive impact on the customers. The celebrity converts the perception of the
product in the mind of a customer as an attractive product. (Bergstrom & Skarfstad, 2004)
Self-Brand Connection:
Celebrity endorsement on self brand connections is increase when consumers have self-
enhancement goal .Consumers self enhance by building connections to favorable celebrity
images or distancing themselves from unfavorable celebrity images. (Escalas & Bettman, 2008)
Purchase Intensions/ Decisions:

Consumers think that the message conveyed by the celebrity in the advertisement is
believable and their purchase intentions are changed positively as they prefer to utilize that
product. It is more important for a company to use one celebrity for a product as it will increase
the customers trust. (Rajakaski & Simonsson, 2006). Purchasing decisions can be effected by
using the idea of reference groups. The customers who are inspired by any reference group starts
using a product which gives the idea of belonging to that specific group. (Roozen, 2004)
(Carolyn tripp, 1994,vol 20)

Consumer pre-purchase attitudes:
Consumer pre-purchase attitude is one of most important key success factor in getting
customer to buy a product, because it has a strong influence to the consumer mind before buying
a product. (Dean, Autumn,1999)
Celebrities as Communicators:
Using a celebrity in advertising is therefore likely to positively affect consumer’s brand

attitude and purchase intensions. Celebrities are considered to be the effective communicators
and the accuracy of the message that advertiser wants to covey through their product can best be
communicated through celebrities. . Celebrities are popular people who have been found to be
highly effective in product promotion results increases in sales. (mazzini muda, 2011,vol 1)
(jain, 2011)
Celebrity Match- up model:
The Product Match-Up model describes that the celebrity for advertising any product
must have some resembling characteristics between itself and product. (Ecanning, 1979)
CHAPTER #3
OPERATIONALIZATION
FORMULATION AND EXPLAINATION OF VARIABLES
INDEPENDENT VARIABLE
Celebrity Endorsement:
As far as our research is concerned celebrity endorsement is considered as an

independent variable. All other variables are dependent on it. Like sales, purchasing decisions
etc. because if any of the company uses a celebrity to endorse a brand like product or service
then it considered that it would affect a positive impact upon company. Because usually
celebrities are being like by the general public especially those who are the brands addicted.
Celebrity endorsement are being affected by celebrity image means by itself, company image
(for whom it endorsed a brand), and a product quality or design. Celebrity image are in both
cases like it would affect the company in appositive or a negative manner.
 What do you think is the reason for the companies to choose celebrities for the promotion
of their products? (Independent ; use of celebrities )
 If Zubaida Apa advise you to use Shadi.com. How often you visit site. (independent
variable; celebrity image)
Celebrity Endorsement=Use of celebrities + celebrity image
Explanation:
According to this independent variable formula the usage of celebrity for brand
promotion have multiple impacts on brand as well as on consumer perception about that
particular brand which is endorsed by celebrity that’s why companies choose celebrity who has
positive image in front of consumer and the image of celebrity can impress audience to purchase
that particular product.
DEPENDENT VARIABLE QUESTION
Sales Promotion:
Sales would be promoted if celebrities endorsed any of the brands. That’s why we have
chosen sales as a dependent variable because it depends on celebrity endorsement. Every
company wants to increase its sales and for this sake they advertised their brands. Celebrities
endorsed the brands which would impact on the sale of the company. The companies expect to
bring in the long run, future sales, revenues and profit from the present investments on celebrity
endorsement.
This is the main cause of increment in the sales. Mostly consumers are being influenced those
brands that are endorsed by the celebrities. So, they buy the brands which puts positive impact
towards company’s sales.
 Do you think product sales are higher because of celebrity endorsement? (dependent,
sales promotion through celebrity)
Sales promotion= sales promotion+ celebrity endorsement
Explanation:
In our research we consider sales promotion as dependent variable, and empirical formula
depicts that sales usually depend upon the celebrity.
CONTROLLED/MODERATE VARIABLE’S QUESTIONS

1. Price
2. Gender
3. Availability
4. Motivation Towards Brands
5. Consumer Preferences
6. Consumer Choice
7. Product Design
8. Purchasing Behavior
9. Brand Loyalty
10. Quality Consciousness
11. Brand Image
12. Celebrity Image
13. Discounts
1) Price
The prices of the brands that are endorsed by the celebrities are affected by the celebrities.
The promotional strategies which are being adopted by the company are often taken by analyzing
the budget. Because the important issue is the return on investment and a company have to
perform a cost benefit analysis prior to endorsement. Consequently, companies must have deep
pockets to be able to afford the best available celebrities. Because Celebrity endorsement is an
expensive means of brand promotion and the price burden almost always shifts on to the
consumers; if not, then it narrows the companies’ profit.
2) Gender:
The gender biasness may affects on the buying behavior of the consumer. Either the endorsed
product is promoted by the female or male.
3) Availability
The availability also makes a relationship between celebrity endorsement brands and sales
promotion. Because if any of the brand endorsed by the celebrity is not available in the market
then it will creates a negative impact on the sales of that particular brand. The consumer shifts to
other brands which are available in the market rather waiting for their prior brand availability.
No matter that the prior brand are endorsed by the celebrities or not.
4) Motivation Towards Brand:
If celebrities endorsed a brand then consumer would attract towards that particular brand.
This would cause a desire to purchase. Celebrities endorsed a brand motivates the consumers
towards that brand to buy it causes to creates a relationship between the endorsements and sales.
5) Consumer Preferences:
Consumers mostly prefer those brands endorsed by the spokespersons. Because it’s a
common perception of consumers that usage of celebrity endorsed brands improves their living
styles as well as their standards.
6) Consumer Choice:
It is a known fact that the best endorsements achieve an effective balance between the
product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing strategy to
increase sales or gain market share, it is a decision that can change the future of the brand
forever.
7) Product Design:
The design of the brands also matters to influence purchasing decisions of consumers. The
brands having a good and eye catching colors, appearance of brands, design, attributes and shape
might attains the attention of consumers and persuade for purchasing.
8) Purchasing behavior:
The purchasing behavior is a moderate variable because it makes a relationship between the
independent and dependent variable. The behavior of the consumers regarding their purchases
may vary. If any of the brands that are promoted by the celebrities then it would put a strong
impact on the consumer’s purchases. They use these promotional strategies to attain the
consumers’ attention. Because if any of the consumer’s favorite celebrity is promoted any of the
brands then consumers would attract towards that particular brand.
9) Brand Loyalty
If consumers are a regular buyer of any brands which is being liked by him or her and that
brand loyalty might be due to the factor of celebrity endorsement. Because those celebrities that
promotes the brands and they are role models or favorites’ of consumers then the brands sales
would be high and makes a brand loyalty.
10) Brand Quality/ Quality Consciousness:
The brand quality makes a relationship with the celebrity endorsement and the sale
promotion of the brand. If the brand that are promoted by the celebrities having a good brand
quality as well as fulfill the need gaps of the customer then the brand consciousness consumers
would retain with that particular brands. The reason is that brand is the one which are being
endorsed by celebrities, having a quality and accomplished the needs of the consumers.
11) Brand Image
Celebrities and famous personalities play an important role for building up the brand image
of the company. Any famous celebrities are in a contract to promote the brand and that particular
celebrity put a successful impression on the minds of the consumers that would creates a
purchase intention for them. If it is so then it makes the brands image and cause for the
increment sales of the company.
12) Celebrity Image
The image of the celebrity endorsing the product directly affects the purchase decision. If the
image of the celebrity is positive then more customers will be attracted towards that brand and if
it is negative then it might be possible that few of the customers will avoid using that product.
13) Discounts
Discount is one of the most attractive factors that attract large number of customers towards
its products. If the brand endorsed by celebrities and that brand is available in the market at a
discount rate or at a sale. This is the factor for grabbing the customers.
 You like a product because of: (control variable; consumer choice)

 You purchase a product because of: (control; purchasing behavior)
 Why do you give more value to a brand? (control variable; consumer preference)
 Do you believe that products specifically advertised by the celebrities are of good
quality? (control variable; quality consciousness)
 Do you believe that celebrity endorsement motivate you to buy the products? (control
variable; motivation towards brands)
 Do you purchase Q-Mobile because it is advertised by celebrities like Iman Ali, Atif
Aslam, Imran Abbas? ( control variable; purchasing influence through celebrities)
 Are you attracted towards very flashing and colorful packed products? (control variable;
product design)
 If you go in a Hyper-Star and you have to choose a soap among many other soaps for
which characteristic you will select one: (control variables; products attributes)
 On purchasing any perfume you will buy it because of its: (control; purchasing
decision)
 You are more attracted towards: (control variable, advertising strategy)
 Companies are investing large amount of money for celebrities, do you think it helps
them in increasing their total revenue? ?(control, variable, marketing-tool-as celebrity)
 Does celebrity endorsement help in brand promotion? ?(control, promotional strategy)
 Do you think that the celebrities give the true picture of a product? ?(control, product
image)
 How often your purchase decision is based on the celebrity advertisement? (control,
awareness among celebrity endorsed brand)
 How many people among you family are driven away by the celebrity advertisements?
(control , motivation towards brand)
 Male endorser is more effective as compared to female endorser.” Rate this statement.
(control, gender type)
 Out of the following celebrity persona whom do you like most? (Control, consumer
preference)
Control Variables= Purchasing behavior + quality consciousness + motivation towards

brands + purchasing influence through celebrities + product design + advertising strategy +
promotional strategy + product image + awareness among celebrity endorsed brand +
gender type
Explanation:
In our research the control variables play dynamic role because these are in our hand which can
be controlled or modified and our independent variable have directly impact on these moderate
variables. By using the celebrity in promotional strategy of marketing, a marketer can find the
consumer current choice because consumer choice gradually change by trend, sometime
celebrity personality impress the audience and motivate to purchase product.
Product design, celebrity image, brand image can influence the purchasing decision or behavior
of consumer because consumer is very conscious ,that’s why he/she is try to purchase quality
product which can fulfill their need in better way.
Awareness among celebrity endorsed brand also influence the sale of product that’s why
advertisers use that celebrity in ads who is famous in audience and have positive image in
consumer mind because perception of consumers can affect by celebrity image.
CHAPTER #4
METHODOLOGY
STAKEHOLDERS OF OUR RESEARCH
 Following are the stakeholders for our research project.
Celebrities, Brands image, Advertisers, Marketers, Customers, and Investors.
Celebrities:
Celebrity is a person who is well recognized by the public due to his or her distinctive
qualities and achievements. In our research the celebrity is our major stakeholder because
celebrities are affected from the endorsement of the brand. Well from what reason we have
chosen celebrity as a stakeholder because these particular factors.
When a celebrity endorsed a brand he or she can get certain specialties from the
endorsement of a brand for example celebrity credibility because consumers make purchase
decisions towards that particular brand just due to celebrity attractiveness and trustworthiness.
Celebrity goodwill can be associated with a celebrity’s image and influence of the celebrity
endorsement upon a consumer can be expressed through a purchase. (Langmeyer, 1991)
Attractiveness Trustworthiness
Familiarity Honest
Likeability Reliability
Trustwort
hy
(Ohanian, 1990)
Brands Image:
Advertisers frequently consider celebrity as an endorsers or spokespersons as a credible

source to influence consumer’s attitudes and purchase intentions towards the brand. Because
when a celebrity represents a brand then it would effects the attitudes of the consumer towards
the advertisement, image of the brand, purchases and maintains the credibility of the company.
Celebrity Consumer
Brand
Endorser Attitude
Purchase Toward Towards

Intention Brand Advertisement
(Ronald E. Goldsmith, 2000)
Advertisers:
Advertisers are also the stakeholders of our research because when a company promote
their brand through celebrities because of their well recognition quality then it would be a good
and positive sign for the advertisers due to those brands that has been introduced by the
celebrities cause to built a good reputation in a form of goodwill for the advertisers and except
that celebrity endorsed brands also positively influence on sales.
Marketers:
The marketers are the stakeholders for our research because when the advertisers makes
the advertisement which endorsed by the celebrity that would create a distinctive image in the
market and among the minds of marketers.
Investors:
Investors are more likeably to be attractive those brands which would promote by
celebrities because investors put their money in the promotion of the brand and they consider the
celebrities would be a credible and most frequently used source for earning revenue for them.
Customers:
Customers are the indirectly stakeholders because when a celebrity endorse a brand then
that particular brand creates a better image of the brand in the minds of the customers because
they rely on the endorsed brands due to trustworthiness and attractiveness of the celebrities.
Consumers perceived these endorsed brands are more exclusive for them.
BIASES/LOOPHOLES OF OUR RESEARCH
The loopholes of conducting our research are selecting the population. Because the
population selected for the research purpose is limited. That’s the main reason or the loopholes
that the feedback of those limited population would not give an accurate results or feedback. This
will cause biasness for the research and contradict the level of authentication.
We will fill out our questionnaire from big super stores like “Metro”, “Makro” and
“Hyper star” for the purpose of research role of celebrity endorsement in sale promotion.
Where most of the buyers belongs to a middle income class and which has less difference or no
difference in their buying power and their opinion about celebrity endorsed products would be
same. So there is probability of some biasness that would occur because those customers
feedback not valid for all country regions like other small cities and towns who don’t have much
income to buy expensive celebrity endorsed products and they have less concern with those
products they just want to fulfill their needs whether it is celebrity endorsed product or any other
product.
On the other side sometimes correspondence biasness occurs when consumers evaluate
celebrity endorsed advertisements and provides one possible answer that why celebrity
endorsement in advertisements is an effective advertising tool? Consumers shows positive
attitude and gives preferences for a product to the celebrity endorser, and because of the
correspondence bias, they do this even when they know that the celebrity has been paid millions
of dollars to promote the product. This is especially interesting in light of the fact that
contemporary consumers are aware that celebrities are often given large endorsement fees, and it
appears this knowledge may not diminish the effectiveness of the advertisement. (Cronley,
1999)i
FLAWS OF OUR RESEARCH
While conducting our research we found different flaws, in which the first and major
flaw is, we use qualitative data not quantitative and the reason behind it as our research topic role
of celebrity endorsement in sales promotion which actually talks about celebrity endorsed
brands, we collecting, analyzing and interpreting data by observing what people think and say
about celebrity endorsed brands. In our research we are supposed to adopt qualitative as well as
quantitative method but our main problem that we are not taking quantitative method to be used
in this research is due to a large population that is being used in quantitative method. But we are
not taking a large population which makes us unable to take accurate results from it. This would
be the major flaw of us that our research is only taking qualitative method to calculate due to our
limited population.
Other flaw in our research is the literacy rate in our country which is 50%. The literacy
rate in Pakistan is divided into three regions that are in cities, villages and tribal areas. The
literacy rate in Pakistan has been increasing every year. Therefore people who are living in cities,
they are well known the celebrity endorsed brands and they increase the sale of celebrity
endorsed products by purchasing it but in villages and tribal areas people are not well educated
and they are less aware about these type of product which are endorsed by celebrity because
those are luxury brand that endorsed by celebrity therefore they do not purchase products for
quality because they just fulfill their basic needs.
The third problem which we are face in our research is that in our economy there is
gradually increase in middle class especially lower middle class. And their income is also very
low which cause lower purchasing power of the buyers. Due to this major issue they are less
familiar with the brands. They are not much conscious about celebrity endorsed brands. In
middle class there are very less amount of people who are brand loyal customers. So that is why
they often find alternatives of the celebrity endorsed brands or they may be switch to their low
price commodities. (Ali, Tuesday, August 19, 2008)
CHAPTER #5
ANALYSIS
Mean and standard deviation
13.How
strongly
do you
believe
that
Frequenc
y of
10.Do you 12.Male advertise
7. If think 11.How endorser ment
1. your product often your is more repitively,
favorites sales are purchase effective increases
You celebrity higher decision as the
purchase endorses because is based compared chances
PEPSI PEPSI. of on the to female of you
products How likely celebrity celebrity endorser.” buying
Incom Gende Occupat because are you to endorsem advertise Rate this that
Age e r ion of buy it? ent? ment? statement product?
N Valid 250 250 247 232 247 244 247 245 247 247
Missing 2 2 5 20 5 8 5 7 5 5
Mean .93 5.15 .57 1.79 1.33 1.55 .57 1.21 1.90 2.25
Std. Deviation .983 4.142 .496 .581 .682 1.245 .771 .959 .958 1.051
Figure-9: AGE
This pie chart tells the age level of the respondents.

24.21% belongs to the age group of 15-19.
0% belongs to the age group of 31-35.
And 1.98% belongs to the age group of 40 And Above.
0.79% of the respondents are Missing (they didn’t respond to this question).
Figure-10: INCOME
The above pie chart explains the income level of our respondents. Pie chart shows that most of
the respondent’s income level ranges from 10,000-25,000 because their percentage is 25.00%.
The percentage of respondent’s income ranging from 26,000-50,000 is 11.11%.
Then percentage of respondent’s income ranging from 100,000 Or Above is 5.16%.
And hence the remaining percentage of respondents is Missing i.e. 51.98% (they didn’t respond
to this statement.)
Figure-11: GENDER
This pie chart explains the gender of respondents. It shows that most of our questionarres are
filled by Female gender and their percentage is 55.95%. Then 42.06% are filled by the Male
gender. Remaining 1.98% are Missing. By missing we mean that our respondents intentionally
don’t mention their gender due to any reason or they forgot to mention it while filling the
questionarres.
Figure-12: OCCUPATION
The pie chart of occupation shows that most of our questionnaires have been filled by the
Students because their percentage is most high i.e. 80.95%. Then the percentage of Service
Business persons is 7.94%. Least percentage is of House Wives i.e. 3.17%. Remaining 7.94%
are Missing. (they didn’t respond to this statement.)
Figure-13: PURCHASE DECISION
The above pie chart explains the purchasing decision of the respondents due to the celebrity
endorsement. The resulting percentage shows their behavior i.e. 32.94% respondents say that
their purchasing is Sometimes based on celebrity endorsement. 28.57% respondents say that
their decision is Never based on celebrity endorsement. 27.78% respondents say that their
purchase decision is Rarely based on celebrity endorsement. Respondents whose purchase
decision is Mostly based on celebrity endorsement are 7.94% and rest of the 2.78% belongs to
the Missing group (they didn’t respond to this statement.)
Figure-14: INFLUENCE OF CELEBRITY
The chart explains the behavior of the respondents if their favorite celebrity endorses PEPSI.
Results showed that 30.95% of respondents are 50% sure to PEPSI. 26.19% respondents are
0% sure to buy it. 19.84% respondents are 25% sure to buy it. 11.51% are 75% sure to buy it
and 8.33% are 100% sure to buy PEPSI. Rest of the 3.17% respondents didn’t answer this
question.
Figure-15: SALES PROMOTION
This chart explains whether celebrity endorsement increases the sales and the result tells that
57.94% respondents answered that Yes it increases the sales. 24.60% answered that No it don’t.
14.68% answered that they Don’t Know. Hence the remaining 1.98% respondents didn’t respond
to this question i.e. Missing.
Figure-16: PURCHASE BEHAVIOR
The above pie chart explains the purchasing decisions of the consumers. According to the pie
chart the purchasing behavior of the respondents for purchasing the PEPSI is due to the
Availability and its result in percentage is 44.05%. The influence of the Brand Quality on
respondents is 42.06%. The factor that has lowest influence on respondents for purchasing is
Celebrity Image and its percentage is 11.90%. Remaining 1.98% is Missing (they didn’t
respond to this statement.).
Figure-17: GENDER INFLUENCE ON BRAND
This question explains weather male endorser influences more effectively than the female. The
result shows that:
43.25% respondents Strongly Agree to this statement.
16.67% respondents Agree to this statement.
5.95% are Neutral about this statement.
26.19% respondents Disagree to this statement.
1.98% Missing (respondents didn’t answer this statement.)

Figure-18: FREQUENCY OF ADVERTISEMENT
The above pie chart explains that whether or not repeating advertisement increases the chances
of buying the product. The results show that:
29.37% respondents Agree to this statement.
29.37% are Neutral about this statement.
13.89% respondents Disagree to this statement.
1.98% Missing (respondents didn’t answer this statement.)

CHAPTER #6
CONCLUSION
The research topic we have selected was effect of celebrity endorsement on sales
promotion. Using celebrities as brand endorsers is a very common strategy now days. Marketers
prefer to use celebrities to advertise the brands because this strategy brings positive results. The
reason is that the message conveyed by the celebrity is much more efficient and concrete as
compared to any other person. It is because the celebrities used are very famous and well
recognized by the consumers. It is a very critical task to select the celebrity for advertisement.
There are many important points that must be kept in mind while choosing the celebrity for
advertisements. Because it doesn’t mean that any celebrity endorsing the brand can create
positive results and enhance the sales.
First of all the celebrity must fit with the brand and the characteristics of the celebrity
must match with those of the product. Then there are some theories like No Tear Approach, they
must be followed while selecting the celebrities. They are considered to be very successful
strategies for the marketers while selecting the celebrities. The advantage of following this
approach is that the results are very positive and resulting. The customers perceive the message
of the celebrities clearly and thoughtfully. The celebrities are already very famous among the
consumers so this factor contributes a lot in lifting up the of companies sales. The messages that
conveyed are very clear and stay in the minds of the consumers for a very longer period of time.
There is an increase in the sale of the products that are being advertised by the celebrities. Then
the purchase decision of the respondents is mostly based on the celebrity endorsements. This
means that if their favorite celebrities endorse the products they are most likely to use those
endorsed products. No matter the celebrity used is male or female; the message is conveyed
effectively through both genders. When the advertisement is continuously repeated it somehow
creates a positive impression on the minds of the consumers. But the availability of the product is
also necessary because if the endorsement is very effective but the product is not available in the
market then there is no advantage of endorsement.
. From our results which predicted that most of the people that belongs to the age 20-25,
their occupation is student and income ranging from 10000-25000 most of the respondents agree
upon that the use of celebrity endorsement increases the sales. There is an increase in the sale of
the products that are being advertised by the celebrities. The the purchase decision of the
respondents is mostly based on the celebrity endorsements. This means that if their favorite
celebrities endorse the products they are most likely to use those endorsed products. No matter
the celebrity used for advertisement is male or female; but results shows that the male
endorsement is more dominant than the female endorsement which our result showed. the
message is conveyed effectively through both genders. When the advertisement endorsed by any
celebrity, is continuously repeated, it creates an impression on the minds of the consumers. That
impression may be negative or positive. In our research the response of our respondents explains
that it creates a positive impression. But the availability of the product is also necessary because
if the endorsement is very effective but the product is not available in the market then there is no
advantage of endorsement.
When we predicted our research, we faced some bottlenecks. One of them was filling our
questionnaire at the public place like Metro, Marko, Hyper-star and fortress where we thought
that most of the people belong to middle class that comes there for shopping. But when our
questionnaires were filled we come to know that their thinking is very conservative. They were
hesitating and not showing a serious attitude for our research questionnaire. They might thought
that we were there for some sort of fun or we were just wasting their time. We were not
permitted to fill our questionnaires at Hyper-star and Metro because their management didn’t
allowed us to conduct any survey
CHAPTER #7
TABLE OF
FIGURES
Figure-1: AGE
Cumulative
Frequency Percent Valid Percent Percent
Valid 15-19 61 24.2 24.4 24.4
20-25 167 66.3 66.8 91.2
26-30 17 6.7 6.8 98.0
31-35 1 .4 .4 98.4
40 AND ABOVE 2 .8 .8 99.2
Missing 2 .8 .8 100.0
Total 250 99.2 100.0
Missing System 2 .8
Total 252 100.0 .0

Figure-2: INCOME
Cumulative
Frequency Percent Valid Percent Percent
Valid 10,000-25,000 64 25.4 25.6 25.6
26,000-50,000 28 11.1 11.2 36.8
51,000-75,000 13 5.2 5.2 42.0
76,000-100,000 1 .4 .4 42.4
100,000 AND ABOVE 13 5.2 5.2 47.6
Missing 131 52.0 52.4 100.0
Total 250 99.2 100.0
Missing System 2 .8
Total 252 100.0

Figure-3: GENDER
Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 106 42.1 42.9 42.9
Female 141 56.0 57.1 100.0
Total 247 98.0 100.0
Missing Missing 3 1.2
System 2 .8
Total 5 2.0
Total 252 100.0

Figure-4: OCCUPATION
Valid Survice Business 20 7.9 8.6 8.6
House Wife 8 3.2 3.4 12.1
Student 204 81.0 87.9 100.0
Total 232 92.1 100.0
System 2 .8
Total 20 7.9
Total 252 100.0

Figure-5: PURCHASE DECISION
Valid Celebrity Image. 30 11.9 12.1 12.1
Brand Quality. 106 42.1 42.9 55.1
Availability 111 44.0 44.9 100.0
Total 247 98.0 100.0
System 2 .8
Total 5 2.0
Total 252 100.0

Figure-6: INFLUENCE OF CELEBRITY
Valid 0% 66 26.2 27.0 27.0
25% 50 19.8 20.5 47.5
50% 78 31.0 32.0 79.5
75% 29 11.5 11.9 91.4
100% 21 8.3 8.6 100.0
Total 244 96.8 100.0
System 2 .8
Total 8 3.2
Total 252 100.0

Figure-7: SALES PROMOTION
Valid Yes 146 57.9 59.1 59.1
No 62 24.6 25.1 84.2
Don't Know 37 14.7 15.0 99.2
3 2 .8 .8 100.0
Total 247 98.0 100.0
System 2 .8
Total 5 2.0
Total 252 100.0

Figure-8: PURCHASE BEHAVIOR
Valid Never 72 28.6 29.4 29.4
Rarely 70 27.8 28.6 58.0
Sometimes 83 32.9 33.9 91.8
Mostly 20 7.9 8.2 100.0
Total 245 97.2 100.0
System 2 .8
Total 7 2.8
Total 252 100.0

Figure-9: GENDER INFLUENCE ON BRAND
Valid Strongly Diisagree 15 6.0 6.1 6.1
Disagree 66 26.2 26.7 32.8
Neutral 109 43.3 44.1 76.9
Agree 42 16.7 17.0 93.9
Strongly Agree 15 6.0 6.1 100.0
Total 247 98.0 100.0
System 2 .8
Total 5 2.0
Total 252 100.0

Figure-10: FREQUENCY OF ADVERTISEMENT
Valid Strongly Disagree 20 7.9 8.1 8.1
Disagree 35 13.9 14.2 22.3
Neutral 74 29.4 30.0 52.2
Agree 100 39.7 40.5 92.7
Strongly Agree 18 7.1 7.3 100.0
Total 247 98.0 100.0
System 2 .8
Total 5 2.0
Total 252 100.0

Figure-11: A Relationship between Celebrity Endorsement
Figure-12: No tear Approach

Figure-13: Celebrity Image Approach
Figure-14: “High- and Low Involvement Product”

Figure-15: Brand Image Approach
Figure-16: Celebrity Endorsement Affecting Consumer Pre-purchase

Attitudes
Figure-17: Relationship between Endorser and Corporate Credibility

and Reaction To Advertising
Figure-18: Three Dimensions of the Source-Credibility Scale

CHAPTER #8
APPENDIX
CELEBRITY ENDORSEMENT QUESTIONNAIRE
We are students of MBA at UCP. As part of our Research Project we are looking into the “Customer
Purchase Behavior due to Celebrity Endorsement”.
The information you provide will be kept strictly confidential and anonymous and used only for the purpose of
academic research. To Be Filled By Researcher.
Location: _____________ ID No. : _____________
To Be Filled By Respondent.
Age Income Gender

• 15-19
• 20-25 • 10,000-25,000 • Male
• 26-30 • 26,000-50,000 • Female
• 31-35 • 51,000-75,000
• 36-40 • 76,000-100,000
• 40 and above • 100,000 and Above
Occupation Education Area of Residence
• Service Business
• Housewife
• Student
• Others (Please Specify)
1. You purchase PEPSI products because of
a. Celebrity Image. b. Brand Quality. c. Availability.
2. What do you think is the reason for the company to choose Shahid Afridi and Ali Zafar
for the promotion of PEPSI?
a. Easy Recognition Of Product.

b. Can’t Generate New Ideas.
c. To Be Able To Increase Sales And Profit.
d. To Compete Strongly.
3. Do you believe that PEPSI Company maintains its soft drink quality even when
endorsing such famous celebrities?
Strongly Disagree Disagree Neutral Agree Strongly Agree
4. Do you believe that Shahid Afridi and Ali Zafar endorsed in advertisement motivates
you to buy the PEPSI?
5. Are you attracted towards very flashy and colorful packed products?
a. Yes b. No
6. If you go to a Super Store and you have to choose a soft drink, for which characteristics
you will select one?
a. For Its Taste. c. For Its Brand Image.

b. For Celebrity Using It. d. For Its Appealing Logo.
7. If your favorites celebrity endorses PEPSI. How likely are you to buy it?
a. 0% b. 25% c. 50% d. 75% e. 100%
8. You are more attracted towards:
a. Funny ads (advertisements), like of Ufone and OLX etc.

b. Informative ads, like of Tetra Packed Milk.
c. Tele-marketed ads, like Sauna Belts.
d. Entertaining/Musical ads, like of Tarang.
9. Does celebrity endorsement help in brand promotion?
a. Yes b. No c. Don’t Know

10. Do you think product sales are higher because of celebrity endorsement?
a. Yes b. No c. Don’t Know
11. How often your purchase decision is based on the celebrity advertisement?
a. Never b. Rarely c. Sometimes d. Mostly
12. Male endorser is more effective as compared to female endorser.” Rate this statement.
13. How strongly you believe that frequency of advertisement increases the chances of you
buying that product?
THANK YOU
CHAPTER #9
BIBLIOGRAPHY
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“ROLE OF CELEBRITY ENDORSEMENT

FOR SALE PROMOTION”

Muhammad Arsalan L1S10MBAM0156

Muazma Riaz L1S10MBAM0193

Farah Waseem L1S10MBAM2136

Momina Arif L1S10MBAM2182

Course: Research Methodology (RM3103)

Actor: A Celebrity may be asked to present a product or service as a part of character

PURPOSE OF OUR RESEARCH

Celebrity/ Source Effectiveness:

Overall Advertising Effectiveness:

There is an association between celebrity endorser’s effectiveness in an advertisement that

Positive image of celebrity:

Negative image of celebrity:

Multiple celebrity endorsement:

(Ranjbarian, Shekarchizade, & Momeni, 2010) (Schlecht, 2003).

Source /Endorser credibility:

"Source credibility" is a term commonly used to imply a communicator's positive

Endorser’s Attractiveness can be considered as a dimension of authentic and credible

Positive Brand Image:

Purchase Intensions/ Decisions:

(Carolyn tripp, 1994,vol 20)

Consumer pre-purchase attitudes:

Using a celebrity in advertising is therefore likely to positively affect consumer’s brand

Celebrity Match- up model:

FORMULATION AND EXPLAINATION OF VARIABLES

As far as our research is concerned celebrity endorsement is considered as an

Celebrity Endorsement=Use of celebrities + celebrity image

DEPENDENT VARIABLE QUESTION

Sales promotion= sales promotion+ celebrity endorsement

CONTROLLED/MODERATE VARIABLE’S QUESTIONS

4) Motivation Towards Brand:

10) Brand Quality/ Quality Consciousness:

11) Brand Image

12) Celebrity Image

 You like a product because of: (control variable; consumer choice)

Control Variables= Purchasing behavior + quality consciousness + motivation towards

STAKEHOLDERS OF OUR RESEARCH

 Following are the stakeholders for our research project.

Celebrities, Brands image, Advertisers, Marketers, Customers, and Investors.

Advertisers frequently consider celebrity as an endorsers or spokespersons as a credible

Purchase Toward Towards

(Ronald E. Goldsmith, 2000)

BIASES/LOOPHOLES OF OUR RESEARCH

FLAWS OF OUR RESEARCH

Mean and standard deviation

This pie chart tells the age level of the respondents.

66.27% belongs to the age group of 20-25.

6.75% belongs to the age group of 26-30.

0% belongs to the age group of 31-35.

And 1.98% belongs to the age group of 40 And Above.

The percentage of respondent’s income ranging from 26,000-50,000 is 11.11%.

The percentage of respondent’s income ranging from 51,000-75,000 is 6.35%.

The percentage of respondent’s income ranging from 76,000-100,000 is 0.41%.

Then percentage of respondent’s income ranging from 100,000 Or Above is 5.16%.

Figure-13: PURCHASE DECISION

Figure-14: INFLUENCE OF CELEBRITY

Figure-15: SALES PROMOTION

Figure-16: PURCHASE BEHAVIOR

Figure-17: GENDER INFLUENCE ON BRAND

43.25% respondents Strongly Agree to this statement.

16.67% respondents Agree to this statement.

5.95% are Neutral about this statement.