Celebrity Endorsement

Chapter-1

Introduction of study

In the diverse market and competing with other brands within same industry is huge challenge for the entrepreneurs so therefore they can differentiate their brands from competitors by utilizing different methods. In order to be successful in the age of high technological and hyper competitive markets the marketer use celebrities to endorse their products for the sake of vast market based on different perceptions the tool called celebrity endorsement can get them edge over its rivals.

This concept is vastly used by the multinational organization to grab the attention of consumers and entice them to buy their brands. This trend is instantly gained much familiarity in recent years, before this technique was used but not very effectively and marketers have now come to the conclusion that media have become the learning institution to the people due its high reach and changing habits of the people.

The basic aim is to judge the outcome of using celebrity in ads and is it influencing their buying decision.

Firm finances its huge resources to line up their products and celebrity endorsing for them. Of particular kind of celebrity endorser are perceived as vibrant with charming and pleasant or friendly value (Taleja, 2005) . it appears that nike accomplishment is completely depends on Tiger Wood's connection with the product (Roll, n.d). it is now some kind of trend nowadays by utilising high profile famous persons to endorse your prducts to boost your prduct name as well brand imgage of your firm (Ramakrishna & Reddy, n.d). millions of money are spent on celebrity endorsement every years by companies in order to boost sale also to attract consumers to their brands.

In promotional activities these celebrities are used in such a way that the product characteristics are related to the endorsers to draw analogies to the brand features. By positioning their brands on certain uniqueness of the product and it is made easier to hire some famous persons to appear in their ads and make the message more interesting and clear. In past decade or so the use of celebrities have become prominent factor to advertise your brand/product with.

In recent years the adspend of developed countries have increases dramatically as compare to developing nations.

Background

The consumers nowadays are more sensitive while buying or making purchases they need

Higher attention and strong brands which influence their decision making process. Therefore companies invest millions of dollars in their ad campaigns to position there self different and more unique as compare to competitors. Kotler (2005, p.529) says that the strategies which look like the competitors results more competition intensity within industry . As strategies of a firm are identical to competitor because of nature of products which they produce and to same market then there will be high war of competition. In 19th century when book called "around the world in 80 days" was published at that time many shipment and transport lobbies wants their brand to be published in that book. Nowadays things have changed media is playing its role in making change to cultures and to deliver your message to the final consumers much easier than before. As in marketing if you capture consumers psyche as first then you have the game to play with easily (Ries & Troot, n.d). Reaching your target market as quick as possible will give you competitive edge. Now trends of celebrity have emerged in advertising and lot of ad spend have increased it is the new way of promoting your brands by hiring famous peoples all over the world to speak about your product and demonstrates it features to segments. Brand ambassador or celebrity spokesperson has changed the habits of customers and influence their buying decisions. The ultimate aim of a firm lies in the sale of a brand and to enhance the outcome of brand equity as well as image. The simple logic behind this strategy is the attention, if celebrity can grab attention of consumers then the objective of a firm is achieved. This image can be hurt if celebrity is involved in any type of scandals then automatically will result in loss also brand image is offended. Companies need to have proper selection criteria before going to endorse some celebrities. In long run this will help them to reduce clutter and some type of damages to brand. The intention of buying certain products can be changed due to vast market knowledge of customers. In today's top brands celebrity is associated with the brands celebrity can be from movies, sports TV etc. brand health can be calculated on many level of reality like how much brand is familiar , exclusivity , connection with customer needs , acceptance in terms of fame and high grade of product in quality wise (walker, 2002). The brand creates bond with consumers that they don't go for unknown products as they don't have any bond with them. The important factors which advertiser should keep in mind is that how much brand has value then coming to endorsing it while keeping some essential elements like familiarity , trustworthiness, expert , likeability that contributes to celebrity traits as perceived by the consumers the effect of message depends on message source traits (Wanke, 2008,p.40). Most of us thinks that celebrity are paid and delivers wrong information to us but in reality if your product or service quality is not good enough to satisfy our needs no matter how hard companies try to convince us will not work, the product quality that can save them not celebrity endorsement. Endorsing can only be handy if maximum benefits of a product are superior also the strong brand image. The purpose of it is to enhance the recalling of ads and remove the sleeper effect. The well reputed and carefully selected celebrity can promote a product in an accurate manner to right target markets (Townsend, 2006). Like for example Revlon brand is using very attractive celebrity to endorse for them ultimately the female part of segment will be attracted to it very cunningly.

We see in summer especially where cricket tournaments takes place frequently the marketer very cleverly try to bring Pepsi ads on our TV using very famous sportsperson for their campaigns as a endorser this makes very huge influence on peoples mind and gives a effect in buying decisions.

In our society the culture is different from western, our campaigns are distinctive in the dress codes as well as in modernization of ads this involves literacy rate which is very low in Pakistan and our economic conditions are not that good also buying power is not that high so that can be a vital reason our consumers don't pay attention to celebrity endorsement but nevertheless there is a chance to get into those markets which have potential. Celebrities can achieve its target market goals and change their common perceptions because in Pakistan people do love their heroes very much and they can play a big role in terms of celebrity endorsement.

Purpose of the study

The main purpose of this thesis is to contribute some knowledge regarding celebrity endorsement to the consumer buying behavior. Whether the advertiser is differentiating between ads which are played by unknown person and celebrity is making some distinction among people attention and buying behaviors in the fast moving world of marketing communications. Here the researcher is exploring the facts which are related to endorsers and its impact on recalling of ads and attractiveness of ads and likeability by target markets. In the ad of Lux soap vaneeza as a celebrity is boosting its sales for lux soaps or not etc. will be deeply studied in this research report.

Some key questions which need to be answered are:
  1. What time the company should utilize celebrity endorsement?
  2. Is the brand delivering its promises through celebrity endorsement?
  3. Whether to use celebrities in ads is intelligent enough?
  4. What is the total impact of celebrities in ad on consumer perception negative or positive in terms of buying products?
  5. The outcome by using celebrities in their ads whether it is increasing in sales to the organizations?
  6. What are the cultural barriers to marketer/advertiser in use of celebrity endorsement?

Objectives

The ultimate objective of this thesis to study whether celebrity endorsement effects the buying decisions of consumers of Pakistan. To achieve my objectives I will use different research tools like questionnaires, interviews, observation, blogging and experimental and control group in various online communities. This research will be conducted in Peshawar and various sources like internet for interacting with other peoples will be utilized. The hypothesis will be developed and mentioned.

Later on the data collection will be analyzed and results will be discussed. The proper conclusion will be drawn finally. Various techniques will be used including questionnaires, interviews, observations, blogging and control group activities etc. in conducting this research to reach a meaningful conclusion.

Data collection methodologies which will be undertaken

Data will be collected in following manner

Primary sources

  1. Questionnaires
  2. Interviews
  3. Observations

Secondary sources

  1. Books
  2. Internet
  3. Articles
  4. Research papers
  5. Magazines
  6. Published journals

Scope

As a researcher I will engage myself in observation of audience towards such ads which will have some famous personalities while endorsing a product in it. My total observation period will be about 1-week, starting from 1st December to 7th December, 2010 for approximately 4hours per day (prime time + some ordinary time). I will observe the behavior of people whenever they see any celebrity in the ad and also will than see their buying behavior towards such products. After sudden study I will analyze and will take important notes which will help me to go further and find out some relevant facts about my research report. My days later time will be dedicated to these things. I will not schedule structured interviews, but will interview respondents informally, as needed to clarify and provide insight into specific conversations. Yes structured interview will be conducted from 4 to 5 marketers about Celebrity Endorsement and their impact on consumers and audience. Structured Questionnaire will be distributed later after major variables of the study have been identified. The study will be limited to Peshawar. The students and few professionals will be the respondents for collection of data. The sample size will 100-150 respondents only.

Celebrity: celebrity is the person who enjoys wide recognition by culture or societies of the world. It can also be elaborated a person which has media attention or given large attention to that person. Normally celebrity is people who has large media attention and often have a gregarious character. Many ways to become celebrity either by their work or by look in the communication media in general. (wikipedia, n.d.A). Many people tend to believe that only persons who appear in movies and television are called celebrities. But fact is that celebrity can not only be in movies or televisions they can be from different professions like entrepreneurs, models , sportspersons and social workers etc. which has media attention and large number of people recognize them. Celebrity should have recognition otherwise he/she may not be celebrity (Gabler, n.d). As mentioned that recognition plays vital role in celebrity fame and its power of influence towards peoples

So therefore the backbone of celebrity lies in recognition. The more is recognition the more is effects on people.

Endorsement

Verbal or non verbal declaration about certain brand/product generally a contract based to advertise through celebrities. (wikipedia, n.d.A). The message which advertiser tries to convey through celebrities can be spoken or written and majorly contract is initiated with that person to endorse their brand/product. In recent year's endorsement have increased enormously due to high sale of products and vast media reach to ultimate consumers.

The best example is the Reema and Iman Ali endorsing for Lux soaps, Shaan for Jazz Indigo are the prominent examples also Ali zafar for jazz. The celebrity attributes must match the brand identity and the likeability of an endorser plays crucial part. A celebrity gives his/her name and emerge with sight of a product or a service which may or may not be a proficient. (schiffman & Kanuk, 2006). Further the brand image is enhanced through it. The celebrity whom you are using whether it has valid attributes towards product or service and or he/she is expert in that field. The famous golf player Larry Laoretti endorsed Te-Amo cigars which is famous brand in United States. Which he holds cigars in his mouth also holding PGA championship trophy.

Recently India has launched research firm called ‘celebtrack' which measures celebrity endorsement effectiveness to the brands. These shows how effective are celebrity in terms of product endorsing and the recent result show Amitabh Bachan and Aamir Khan were the most successful brand ambassadors for Indian market. Endorser increases product/service awareness to the end user.

Brand ambassador/spokesperson

The brand ambassador is a promotional model to retain trustworthiness, credibility of its character in order to advertise and provide larger luminosity to products or services. (Good, 2009) . The brand ambassador should reflect its personality traits towards product or service and give visibility to brand. The overall objective is to give maximum trust to consumer and celebrity fits itself with the brand. The celebrity contract with the company prolong for some time period. Tiger woods' is brand ambassador for Tag heuer watches also shahrukh played its role with same brand. Ali zafar endorsed Telenor talkshawk and later on he moved to Mobilink which was quite controversial. Many people disliked it because his image was built for talkshawk and people perceived as negatively. So endorsing too many brands may cause negativeness in brand image for a company also for celebrity. The main reason that brand ambassador should not endorsed too many brands is that people starts brand association whether the celebrity move to another brand/product the common perception lies in one or two brands that celebrity is endorsing. This may damage brand image of a company as well of celebrity. In promotional activities consumers pay more attention to celebrity rather than brand this causes problems to advertiser (Johansson, 2002). The basic aim which marketing strategy was developed for to turns to be useless when celebrity fails to make brand prominent to consumers. Solution to this very problem is to select more effective and prominent celebrity to boost brand and sales of a company.

Testimonials

The celebrity uses the product or service personally to prove the product or service quality. In this the celebrity praises product qualities to the consumers verbally or non-verbally. In celebrity endorsement the celebrity gives name to the brand but in testimonials the celebrity attests the product personally. When Lays chips were involved in controversy that it uses pig ingredients in the product so in Pakistan Lays market shares dropped from 75% to 5%. The clever advertiser what they did was bringing in Pakistan most prominent celebrity Junaid jamshed for testimonial in which he eats lay chips and praises that it is hundred percent Halal product. By running this very genius campaign the product market share climbed back to 75% within a month period. This shows how trustworthiness plays role to make it more effective to ultimate consumer. It conveys proper information regarding product/service and makes it clearer that it features. Testimonial is the way of promoting products/services that how they got benefited from that certain brand.

In this coke “Brr” advertisement featuring Adil Hashmi tries coke and appreciate its taste and says ‘wah wah&rsqou; which testify the coke taste and refreshes him.

Opinion leader

A person whose thoughts are considered as more valued and stands in a position whereas distinct from others and communicate message to consumers in a way in which he/she is experienced or belong to that particular field (opinion leader, n.d). These are those people who are expert or known for their field of work. Like an example if computer software engineer comes in advertisement and suggest consumer to use particular software for their computers then it will be considered as a opinion leader for that product and will enhance the trust factor for it ultimately consumers will believe that opinion leader more because of his/her background of profession. Opinion leaders can be organizations too like if an imsciences recommends that usage of particular management books will improve your management skills then it will be more influential to readers and students because imsciences is known for management education. The opinion leader may be liked or unlike by the consumer so it is for sure to use high credibility of opinion leaders in your promotional strategies. People believe in word of mouth then believing in advertisements more personal communication are considered viable (Chan & Misra 1990). Personal experiences are considered more believable and reliable as compare to advertisement in mass media.

Consumer behavior

It is defined as studying the persons and its interests who carries out in order to fulfill their needs and wants (Lake, 2009,p.9). The study of human behavior and its perception about brand and how he/she go for satisfaction of one need. The human psyche revolves around its mind and how they make decisions to make purchases. Their feelings and thoughts are key role to play.

Why and what for they make purchases?

  1. To make their lifestyle prominent
  2. Adjust to groups and achieve approval to that groups which they belong to
  3. Strengthen image of self
  4. To maintain its cultural distinctiveness

What drives them to make purchases?

Individual buy only from those companies which satisfy their mental needs and feel them more relax towards their brand and make them more understandable (ibid).

How they make decision about purchases?

Consumer come across a decision making process in which they decide about what to buy and what to not. There are some external as well internal factors which affect their buying process (ibid).

Buying process

Consumers go through this process while buying going for product/services.

Buying process

The typical course of action takes place among organizations and persons while going for purchase of certain products (SEP, n.d).

The course of action mainly comprise of five phases

  1. Problem recognition: in this very first phase of buying process and person feels to start there is a problem and this very first phase cannot be avoided (ibid). The person identifies the problem or opportunity and searches for resolution immediately. e.g. I need to buy computer for my assignments
  2. Information search: here in the second phase of buying process the individual starts to gather information and alternatives it comes after the proper identification of problems and opportunities. E.g. like from where I should purchase computer and what specification and brand should I go for. The internet is the mighty source for gathering information and alternatives. Going to online stores looking for prices and new models in the market etc. reference groups, friends and peer groups can be source of information too (ibid).
  3. Evaluation of alternatives: after the two phases process comes the third phase in which the individual have different alternatives to choose from and finally after thoroughly assessing each alternatives then comes to the final decision that which alternative is viable and feasible in terms of price quality and durability in order to reduce risk factor (ibid).
  4. Purchase decision: after the all three phases comes the important and crucial phase four of buying process. In this phase the actual product/service is being acquired or purchased. In evaluating the all alternatives chooses the best of all and go for final decision (ibid).
  5. Post purchase behavior: in the last phase of the buying process the individual assess its decision whether by acquiring this final product/service the purpose or goal have been achieved or not. Is the individual satisfied from the product/service? Or yes is the result (ibid)

Chapter -2

Literature review

In this very chapter we will review the literature as previously conducted studies on celebrity endorsement in advertising and its effect on consumer behavior. The studies which were conducted on the same pattern will be highlighted and afterward proper variables will be identified.

Communication process

As mentioned by Belch & Belch (2001) this archetypal represents different components related to communication process which progressed in some time periods. The two components largely stand for highly contributing to the overall communication process which is the source/sender and the receiver. The other two components parts plays very important role message and channel. The other four components of communication process are encoding, decoding, response and feedback. In the end noise indicates irrelevant interferences in he process and results ineffective to convey message to the receiver.

Sender encoding: the sender/source can be individual or a company which wants to send a message to the receiver it can be information, the message can be sent through any person or celebrity to the target market. This appears in the company's promotional medium like advertisements or can be only company by themselves. The message sender must be reliable and advertiser should be careful in hiring celebrity or any person for their message to convey into right audiences because consumer insight can be affected (Belch & Belch, 2001).

Then comes the encoding of a message here the sender or the message source can use signs, characters or can be words and images to the receiver. This activity is called encoding; involving notions, concepts and designs that sender puts in the message to the receiver. The ultimate aim of the sender is that the receiver fully grasps the meaning of a message (ibid)

Message: the encoding procedure advances toward message development. The message can be spoken or unspoken or can be a sign. The content which message contains is information to the receiver. In advertising of a product it is not important that the words spoken delivers the full message to the audience the signs and images communicates too also they can deliver many hidden messages to the audience and can be very effective to the receiver(ibid).

For the marketer should clearly draw signs or symbols in their ads, therefore many organizations are paying attention on semiotics which is the study of signs/symbols to better understand the big picture behind the signs used in advertisements of companies Semiotics delivers the meaning behind gestures, myths and symbols. The semiotic plays very important role in the promotion of products or brands consumer sometime interact with symbols or signs also through images (ibid).

Well many marketer thinks that semiotic are distrustful about the benefit they provide because some people cannot interpret the real meaning of semiotics in the advertisement though the message in the advertising does not convey full meaning due to different interpretation from different peoples. So consumers assign their own meanings to semiotic used in the advertisements thus marketers must take into attention that what meaning consumers associate to the brands, symbols and product packaging also the unspoken or non-verbal communication like sale representatives, receiver do interpret them (ibid).

Channel: it is a process where message passes through from the sender/source to the receiver (ibid). As discussed by (Belch & Belch, 2001) there are two main communication channels which are

  1. Individual based
  2. Non-individual based

Individual based: in this type of communication the message is sent by the sender/source to the receiver which is person to person to the aimed customers

e.g. A company sale forces which interact with the prospects on the company's behalf.

Another perspective would be from the concept of marketing which abbreviate as word of mouth this channel comes under individual based which is quite effective as compared to other medium of marketing communication.

Non-individual based: in this type of communication there is no person to person interaction. It is generally based on mass communication the message from the sender to the receiver is to the all segments. The good example will be quoted

Like print media including daily, periodicals etc. these are form of non-individualistic communication types. This could be TV and radios too(ibid).

Receiver: receiver is the actual consumer to whom message is designed.

The all communication process is dependent on the receiver this means

The ultimate consumer to which message was targeted.

Decoding: when the message is sent to the receiver and the receiver interprets it into his/her perception is known as decoding. When the consumers fully understand that what is being conveyed in the message it can be information and rightly perceived by the consumer and the job of a sender is accomplished (ibid).

Noise: a problem occurs during the message encoding process it can be due to many reasons like interruption of TV signals or bad reception causes barriers to the receiver/consumer where the receiver/consumer do not get the full message is known as noise. These can be caused due to external elements like bad signals or power failures can cause noise in the message (ibid).

Response: when the receiver properly decodes the message he/she stores information regarding message from sender then the receiver respond to the message by purchasing that particular product which he/she saw in advertisement, this influential step in the communication process is very essential to accomplish because success lies in it for the sender of a message (ibid).

Feedback: in this process when receiver sends a message to the sender in a way where receiver wants to tell about product they have sold to receiver and want to communicate about its quality or other type of information is called feedback. The ball is in receiver court that what they think what it lacks etc. the feedback sent from the consumers are stored by the companies to make further improvements in their product or keep the motivation level high(ibid).

Insinuation for effectual use of celebrity endorsement

There are ten insinuation to use celebrity endorsement effectively (Till, 1998). The objective of this article was to show how associative learning can be used for celebrity endorsement effectively. Following are the insinuation for management how they can use celebrities in role which can be lucrative for the company as well for consumers.

1. The celebrity endorsement can only be efficient when they are used on continuous periods or for extended time.

The use of celebrity for the extended time period increases the brand recognition for the target market also creates awareness among them.

This enhances the relation of consumer with the brand also with celebrity, so the strong bond is created towards brand and celebrity and consumer associate celebrity with the brand. The repetitive use of certain celebrity with the brand can create much more trustworthiness of celebrity and likeness of celebrity. This emerges connection of celebrity with the brand and is very effective in the long for the company as well for consumers (Till, 1998).

2. When employing celebrity in the advertisement keep the execution plan straightforward in terms of unrelated elements.

The emphasis should be on celebrity and product ignoring other element.

The way of executing the advertisement should be dedicated to one way communication to the brand and the celebrity. The main component of advertisement should be celebrity and product. By involving unrelated elements in the advertisement creates clutter and attention is unfocused of the consumers (ibid).

3. While choosing a celebrity the marketer should analyze that whether the celebrity is not associated with the other brand.

In choosing a the celebrity marketer should watch out that the celebrity is not closely linked with other brands if that is the case then the celebrity endorsing a new brand will be hard to get associated with it easily and people attention will not be attracted easily because consumer will perceive that celebrity has tagged a price on itself and trust factor will diminish. The new brand cannot associate its identity with celebrities endorsing other brands (ibid).

4. While choosing a celebrity to endorse your brands think through about appropriateness of the celebrity to the product/brand.

The advertiser should think through that celebrity is appropriate for the brand or not. The more is the celebrity worthy the more easily the link between endorser and the brand will develop (ibid).

5. Examine the probable celebrity for the brand with the amalgamation to the right segment.

It's essential to examine the celebrity match with the aimed segment.

It's very necessary to make sure that the given customers are appropriate to the celebrity attributes because many people have different views about celebrity so keeping in mind of advertisers there should be good fit with the target market (ibid).

6. The endorser can be utilized successfully to build brand image of company's product/services.

The celebrity used successfully can enhance your brand image also help in building alliance with the product of a company people will associate celebrity with the brand which can be beneficial for the company in the future(ibid).

7. The brand endorser can be very handy for not very known brands in the market.

Those brands which are not very well known in the market thus the non-famous brands can get more attention from the people if celebrity endorses them. They can get more benefited as compare to well known brands (ibid).

8. Celebrity endorser can be effectual to consumers which have less awareness about the product/service.

The celebrity can increase the knowledge of a brand to the consumers through celebrity traits which they posses this step can be very valuable to the brand as how people builds link between brand and itself , the celebrity traits which is likelihood or any other factor to which people are attracted can enhance the awareness about the product very effectively. The people will notice that what are the features of the product/services which they are providing through celebrity endorsement and knowledge is increased to the brand of people (ibid).

9. Escalation of benefit can be gained by using endorser in the marketing mix, not only in adverts.

The encouraging relation can be developed by using celebrity endorsement towards your brand but it can fade away soon enough as time passes by. So in order to maintain this relation strong you can use your celebrity in the marketing mix, the marketer can gain huge benefits through utilizing in the marketing mix activities like giving out associated particulars and tours, which are linked with the celebrity. Also celebrity can be used for mega events, business fairs, and national sales meeting and in other promotional events (ibid).

10. Thoughtfulness while selecting a celebrity endorser with the possible threat that can discolor the brand image.

Threat is there while doing adverse promotion can discolor your brand image. If the brand is firmly linked with the celebrity then there is a chance harmful information will be generated against the celebrity in the memory also to some intensity to the brand endorsed (ibid).

The McCracken meaning transfer model

Many theories have been proposed but the McCracken have criticized them

According McCracken he suggests meaning transfer model in which celebrity encodes exclusive types of meanings if the celebrity is utilized at its best then can deliver much to the brand (McCracken, 1989). This model is divided into three phases which are culture, endorsement and consumption.

Phase 1- culture

The celebrities are distinctive from common models generally the common models or unknown figure delivers common meaning to the promotional activities. The celebrities have more delicacy, influence and profundity. The common models can be available at the tiny proportion charge. The meaning which can common or unknown models can give to the ads are enough. Then the question arises why the celebrities should be hired instead of common figures.

Then what attributes lies in celebrity to endorse a brand. The common models have strong demography in terms of sex, age factor and position in the society.

On other hand celebrity have recognition among large number of people also collection of personas and way of life which common models do not have (ibid).

The celebrities are more commanding than common model they can get more response as compared to common models used in the advertisement. Celebrity is much more then role models to people and have big influence on their behavior patterns. Celebrities derive much power and have very successful career in movies, sports and in TV that is the point where other ordinary person lacks while promoting brands people pay more attention toward them and inspiration is the key factor due to people follow them in every walk of life (ibid).

Phase 2- endorsement

The author propose that in selecting celebrity for a specific brand it is grounded on the meaning they exemplify on a complex marketing plan. The marketer will then focus on symbolic features of a product and then the marketer will ask for the list of celebrities and will look into total budget allocated to the promotions afterward they will look into the limitations or hurdles they have. At last they will choose whoever is suitable on the base of symbolic features (ibid).

After selecting the celebrity the advertiser must make sure the meaning which was promised to serve are fulfilling to the brand. After all promises are accomplished the marketer/advertiser must be sure that all meaning is transferred to the consumers properly.

In the end the marketer/advertiser must plan the advertisement that the necessary elements of a product resemble the celebrity persona. In the more developed part of the world there is proper check on the success of an advertisement through celebrity and final copy of a advertisement is shown to the consumer and are observed to find out the resemblance between a celebrity and the product (ibid).

Phase 3- consumption

In this phase of meaning transfer model the consumers not only buy products for practical use also for the cultural and symbolic use. The consumers which buy endorsed products are to be believed that they have inspirational meaning in it and consumers have the intent because the celebrity have transferred meaning to the product. This is very common with the everyday life products like clothing, mobile phones and watches etc. (ibid).

How can celebrity effect consumers

There are three basically steps in which are source attribute which includes credibility, attractiveness and power. On the other hand there come the processes in which the attitude is affected which is internalization, identification and compliance (Kelman, 1961).

Credibility: credibility can be elaborated to the degree in which source have the appropriate knowledge regarding the brand as consumers perceive. There are three aspect to which the source depends on, credibility, trustworthiness and expertise.

The source as perceived more knowledge oriented and the expertise is more convincing then low expertise. But another contributing factor is trustworthiness of a source which includes more moral, honorable and trustful (Kelman, 1961).

The source of credibility is more informative, influential, views and attitudes across a process are called ‘internalization'. This happens when the receiver accepts the views of a credible source and believes that the information conveyed is correct. As the receiver internalizes this all information from credible source and it is fitted in memory of a receiver if the receiver fail to recall the source after some time but the information and views are still intact.

Expertise: through internalization process there is proper system is being build on where the person have formed acceptance standard from the source. The celebrity is selected on the basis of knowledge and expertise in the specific zone (Belch & Belch, 2003). As mentioned by Ohanian (1990) that celebrities who have more expertise are better perceived to the consumers as compare to who have more attractiveness and trustworthiness. The celebrities who posses more knowledge and experienced are essential in endorsing a product and can properly communicates about the brand which they are endorsing.

Trustworthiness: expertise is crucial factor for endorser but the target market also needs to trust the endorser so the trustworthiness plays it role apart. While looking for trustful figures it is hard to come by. It's a fact that celebrity is reluctant to endorse a brand that is considered as trustworthy because of many reasons like they don't want to harm their status or impression. To overcome this hurdle marketer use various methods like observation by placing unseen cameras to the consumers where they make factual assessment of a product. There is comparison against the concealed brands and advertised brands the success is judged by the marketers and results are prominent to the marketer (Belch & Belch, 2003).

There is other very beneficial alternative available to the marketer/advertisers are to use top management of the corporate in their advertisement like chief executive officer. Many research shows that by using top level figures have revealed some positive results that sale of a product is boosted enormously by endorsing chief executive officer of the firm , they create very good trust factor to the brand and becomes more powerful celebrity to the people ( Reidenbach & Pitts, 1986).

Attractiveness: here comes the second phase source attractiveness as discussed by Kelman (1961) it is surrounded by similarity, familiarity and likeability. Similarity is closeness of source and receiver of the encoded message. The message which is designed for the receiver which shows the same meaning which he/she intended to from the source. On other hand lies familiarity where the knowledge of a source is eminent. While likeability in the sense of liking an endorser in appearance, style or personality characteristics.

Similarity: consumers are largely affected by person who both has similar needs, objectives, activities and way of life. Then the influential power is to greater extent. While hiring a person for shop in Peshawar then your ultimate purpose will to choose a person from local culture who has the similar language skills and same character. The person should have common similar background and characters as of customer then it will be more effective for the marketers (Woodside & Davenport, 1974).

Likeability: the worth which celebrity gives and in familiar terms with marketers. The marketer know the value which they posses can be very advantageous to them and for consumers so the famous super stars of movies sports are considered more powerful and strong in conveying the meaningful message to the audience. They are the show stoppers and have very strong attraction power (Belch & Belch, 2003). For example Michael Jordan appears in the jogger's advertisement then he has more influence on consumers because the consumer will think if he has improved his performance so it can boost our performance too.

Attractive models are used to grab interest toward advertisement. These types of models are very successful in delivering the messages to the consumers. More physically attractive individuals are way to enhance your product sales as well as image of your brand (Jones, Stanaland & Gelb, 1998).

Power: the last attribute is power, as mentioned by Kelman (1961) the sender has the power to give incentives and penalty. As a result of this the sender can persuade other individual to react onto the appeal the endorser is making. In this instance effect takes place and the procedure is called compliance. This interprets that the receiver should react to the sender to keep away the penalty.

In this case the receiver makes a promise to the sender that he/she may follow its instructions. The power source should be commanding and more informative, this generally occurs when you can't avoid its benefits you are receiving from the sender (Belch & Belch, 2003). For example a doctor prescribes you a medicine to you well the doctor is considered as more powerful source to the receiver in which you can't refuse what is he offering to you or you will face the consequences. Another good example would be for sale force people who in person to person promote products to the prospect customers in which they offer incentives which can be hard to put away.

Different usage of celebrities in the world

The usages of celebrity endorsement have been predominant in the North America the companies are keen to find out the consumer perception about their brands and consumer purpose of buying products. They are many studies conducted by similar approach and companies are investing money on its marketing research to find out its result in the united states many marketing research firm have found out that celebrity endorsement have provided many times return on investment to the advertisers so it is very effective technique and growing form of promotions (agrawal & kamakura, 1995).

Celebrity endorsement is handy when there is low distinction in product/services of a company within industry in terms of competition so then marketer can use celebrity to separate their identity and brands from them, there are two key factors that exists when a marketer is promoting their brand through celebrities comes first which is undesirable promotions and other is monetary threat, this risk factors are of the concern for the company (johansson & Sparredal,2002,p.50). The companies may choose those celebrities which have high credibility and relevance to the brand.

In the recent election of United States the president Obama was very cleverly represented by celebrity Oprah winfrey in the election campaigns and ultimately the effect of it showed very positive results in the voting for Obama (Garthwaite & Moore, 2008,p.6). The celebrities are the strong icons to promote through where people of different ages and incomes are the target. The products which are being promoted through endorsement are mainly focused on youngsters like the Telecom sector in Pakistan which shows youth as a target market mostly.

The campaigns launched by the companies to endorse celebrity in the mainstream media are getting into new trends especially in south Asian regions. This type of marketing strategies are changing consumer behaviors gradually because many people consider celebrity as their role models in their lives and they copy or are inspired by them so it is the reason behind to hire most expensive or high paid stars for their brands to endorse for them.

It is a common perception with the marketers that a company which uses famous celebrities to advertise for them produces more revenues as compare to common persons or non famous models (shaikh, 2009). As authored mentioned it is common perception that advertiser hires famous people for their brand in reality this cannot be true if consumers think that company is investing million of money in celebrity endorsement there can be reason behind that the brand is weak therefore they are following this type of strategy that consumer are deceived to the celebrities and will make purchases it can be logic behind it but nevertheless it depends on the psyche of consumers too. If an educated and more sensible is the consumer he/she may think differently as compare to individual who is not that much well educated and knowledge is that much adequate.

Most celebrities failed due to its personal matters

Most big stars failed because of its personal matters whether they have some scandals or may have some immoral behavior which companies don't feel like doing business with them, Tiger Woods got fired by some big sponsorships in the world like Nike, AT&T, Accenture and Pepsi due to statement which were made (Burkitt, 2009)

Research questions

What time the company should utilize celebrity endorsement?

The first research question asks when to use celebrities in the advertisement of a company. The answer depends on many factors like competition in the industry is so tense that your profit margin and market shares are dropping by in serious numbers, the market is so indistinguishable in terms of product/services. The competition is increasing day by day and your brand is no more recognizable to the target market.

The cost of celebrity endorsement is high and you think as an advertiser it's time for differentiation then you have alternatives either celebrity should be hired to promote your product or product diversification. The question arises if you go for product diversification which is too expensive for the organization again and too much resources needed to be allocated for the diversification and time frame is not permitting us to diversify into new market, then comes the final decision for celebrity to endorse your products which is fastest way to overcome competition and go for easy differentiation as compare to competitors.

People will get quick attention to your product as well more recognition. The right time for celebrity endorsement is when the company is in need of immediate change in their promotional strategy as well quick and effective way to differentiation.

is the brand delivering its promises through celebrity endorsement?

By using celebrities in your advertisement is it fulfilling its promises which every brand does? Brand stands for distinct identity in the market where consumers differentiate from other existing brands. Every brand makes promises that they are going to serve you more than any other brands. Consumers develop much high expectations from it.

By using celebrity in your advertisement the expectation gets higher because company is endorsing through famous public figures which have more recognition, familiarity, similarity, likeability and expertise. By following these attributes the source is making some real adaptation to the target audience that we are fulfilling your needs in your way. These celebrities are considered role models and source of inspirations to the people. The common perception of people is that they are paid by the companies therefore they are making us influenced by their clever tactics. Nevertheless by investing millions of money on endorsing celebrities the objective can be accomplished by making relevant claims about your product can only save you. If celebrities are told by the company to deliver wrong information about the product this can not only damage the celebrity image as well as company image. While choosing a celebrity the company must ensure the relevant person is endorsing a product and all celebrity attributes must match the target audience only then brand can deliver its promises to consumers.

Whether to use celebrities in ads is intelligent enough?

The question arises is it intelligent to use celebrities in your advertisement?

Well the answer depends on different aspects of a target market. To some extent the idea of using celebrity in your advertisement does make sense because its charismatic trait can get the customers to your shelf. The other aspect is when you are in trouble in terms of competing in the market where you have lost your market shares in recent case with Lays chips where there was controversy about the product that its ingredients are not according to the religious standards, then the very intelligent move was initiated where Pakistani celebrity Junaid Jamshed endorsed the product because he is now known as very prestige figures in the religious affairs. By taking this step Lays gained it market shares back in very short period of time. The celebrity highlighted its power attribute to the consumers in which it got very high success. The source had very big influence on its receiver due to its power attribute was convincing to the receiver, it offers the incentives to the receiver in a way which was important to the whole of a target market.

The question of intelligence is being answered in an attributes which lies in the celebrity whether they are relevant to the brand or not, if yes then go for it and will result in positive way.

what is the total impact of celebrities in ad on consumer perception negative or positive in terms of buying products?

Celebrity give value to the brand, it enhances brand image and gets people attention more and more. The question is what is overall impact of celebrity in terms of positive or negative. The celebrities are used to remove clutter from advertisement and make the brand more prominent. If the advertiser is making smart moves like selecting celebrity on basis of demographics and on psychographic. Like bringing them their own heroes or stars in the advertisement do make difference to target audience.

The famous TV models are only recognized by their ads while playing in any movie or serials people attach the ad which they played like in soap ad Iman Ali whenever she was seen in movies or in dramas people remembered her from soap ad of Lux. This credibility gives more attention and recognition to the brand as well celebrity. Thus the perception of a consumer is diverted easily and can result in positive.

What drives negative in the mind of consumers well it can be of many reasons.

Over using celebrity in the advertisement leads to clutter, often advertisers commit blunders while utilizing same celebrity for so many times that people did not notice brand at all and sometime consumer ignore the advertisement to be seen. Therefore celebrity should be emerge with different style of execution and design a new message as consumers starts to get monotonous and their perception about brand gets negative and their buying intentions are harmed.

A celebrity endorsing multiple brands can have negative impact on consumer perceptions. Like Amitabh Bachan is leading brand ambassador in south Asian countries but it had some setback in the perception of people. He is endorsing too many brands at a time that is affecting not only his image also the brand image of companies. This shows that brand ambassadors are carrying price tags which is resulting in negative impact on consumer perceptions.

The outcome by using celebrities in their ads whether it is increasing in sales to the organizations?

The answer lies in the eye of a customer. If the celebrity endorsement is effective then definitely the sales are boosting for the company. The celebrity attributes are the key for the advertiser to use on and get the maximum benefits out of it. Different cultures have different perception about advertisements. In Pakistani and Indian culture the key to success is price. In undeveloped countries price is the vital element for the consumer. The price sensitive consumers don't rely on celebrities they think the products which are endorsed by the celebrities are expensive and of inferior quality.

The case is different for more educated and more learned segments of the market, they perceive this as more accurate and sensible strategy. Companies invest millions to get the desired results and company's annual report is showing ad spend is gaining more beneficial results and endorsement is effective tool for the company to increase sales.

what are the cultural barriers to marketer/advertiser in use of celebrity endorsement?

While marketers going for celebrity endorsement in different cultures they need to adapt accordingly. Every culture has its values and norms different than others. There are distinct laws in different countries for advertising. The vital element is differentiation among the culture and traditions. You can't use same celebrity to other consumers of other countries which are totally different from your values and likes and dislikes.

Let's take an example if Wasim Akram endorses a product in North America it will be total wastage of resources and time. The reason is Wasim Akram has credibility in Asia and to some part of Europe. The credibility contributes mainly to the endorsement. The other contributing factor is similarity because the American people don't share their common character and needs. They have different needs and goals. They have different language and backgrounds which doesn't match the South Asian similarity which they share among Pakistan and India.

The barriers which are faced by the marketers are

  1. Credibility
  2. Similarity

If marketer manages these barriers successfully then the success is ahead in short time. While coming to the endorsement in other aspects marketers use same concept of advertisement but models are changed region to region, if American brand want to endorse in Pakistan then they will use Pakistani celebrities in the advertisements because of different attributes of celebrity.

Culture is to play vital role in celebrity endorsement, because of different psyche of consumers from distinct backgrounds they respond to ads according to their needs and wants. The ultimate aim of advertiser is to get full attention of consumers toward its celebrity and product. The main momentum is to get higher sales and well reputed image of a brand and celebrity.

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