FINAL DISSERTATION. Dilini

(1)

Programme Title and Cohort: BA (Hon.) Business and

Management

Module Code and Title: NX0320

Forename: Dilini Chavindi

Surname: Meemaduma

Student ID number: w11040837

University email address:

(2)

Student Number: w11040837

Word Limit: 10 % + /- 10000

Word count: 10980

Submission date: 06 September 2013

NAME Dilini Meemaduma

DEGREE BA (Hons) Business and

Management

SUPERVISOR Dr. Guy Brown

Title Assess the most effective attribute

of celebrity endorsed advertising on attracting

customers; Survey on cosmetic industry, Colombo

District, Sri Lanka

TITLE The Ethics of Advertising

DATE August 2009

(3)

(3) that unless this dissertation has been confirmed as confidential, I agree to an entire electronic copy or sections of the dissertation to being placed on Blackboard, if deemed appropriate, to allow future students the opportunity to see examples of past dissertations. I understand that if displayed on Blackboard it would be made available for no longer than five years and that students would be able to print off copies or download. The authorship would remain anonymous.

(4) I agree to my dissertation being submitted to a plagiarism detection service, where it will be stored in a database and compared against work submitted from this or any other School or from other institutions using the service.

In the event of the service detecting a high degree of similarity between content within the service this will be reported back to my supervisor and second marker, who may decide to undertake further investigation which may ultimately lead to disciplinary actions, should instances of plagiarism be detected.

(5) I have read the University Policy Statement on Ethics in Research and Consultancy and the Policy for Informed Consent in Research and Consultancy and I declare that ethical issues have been considered and taken into account in this research.

SIGNED: ...Dilini Meemaduma……

(9)

Executive summery

Celebrity endorsement advertising has become a ubiquitous feature of modern marketing.

Most of the time celebrities are not the same individuals that people see in the

advertisement as well as in their real life and the most important query is why firms use

celebrities. Obviously the answer would be they do not just sell the products,they touch

your heart. On the other hand, for some of the European countries they would say neither

skinny models nor celebrities make me buy, but in Asian countries such as India people

worship celebrities and treat them as gods (Rawtani, n. d). However in the meantime Sri

Lankan celebrities still have a significant impact on customers and obtain special

salutation from them (Lalanananda, 2007). Consequently it is not the celebrity but the

advertiser who makes people buy and this study intends to find the most effective attribute

in selecting celebrities in the context of attracting customers with providing a quantitative

summery.

Also analysis of industry advertising data discovered that there is a significant increase in

billions for advertising expenditure in Sri Lanka and that is why it is important to find out

whether the firms generate sales for the huge amount of money they spend on advertising

(Lalanananda, 2007). However nowadays the cosmetic industry is struggling with lot of

competing challenges and there is a wide availability to fail local marketers against the

foreign cosmetic companies and their celebrity endorsed advertising (Wijesekara, 1996).

Therefore this research will help to improve the advertising firms with referring to why local

celebrities fail in attracting customers compared to international level celebrities. This also

aims to provide other competitors who are excluded in this research to find the ways to

close the gaps and use the research results to create effective celebrity endorsed advertising. In addition, to the customer’s perspective they will be able to stop

unnecessary spending due to miscommunications in celebrity endorsed marketing

communication.

Further according to the past surveys, advertising messages delivered by celebrities

provide a higher degree of attention and possibly provide a message than those delivered

by non-celebrities (Menon, 2001). However, there is also a significant usage of celebrity

(10)

most effective celebrity endorser source effects (attributes) in advertising effectiveness in

Sri Lanka (Wijesekara, 1996). Therefore this research is carried out for companies to

understand the most effective celebrity attribute and develop their advertising strategies

choosing the best effective and attractive source of endorsement to customer to recall the

brand. As prior survey done by Amos (2008) determined several attributes that have

significant impact on celebrity endorsed advertisements and associated brands towards

the customer attitudes that are considered in this research specifically celebrity

performance, negative information, celebrity credibility, celebrity expertise, celebrity

trustworthiness, celebrity attractiveness, celebrity familiarity and likeability and celebrity

product fit.

For the purpose of gathering data close ended questionnaires were distributed using

random sampling within focused sample size 100 out of “2,323,826 population” of

Colombo District (Census of population and housing, 2012, n. p). Further, the survey was

carried out as a descriptive study as a top-down approach which help to describe the link

between attributes of the celebrity and advertising effectiveness through its positive

impact on customer buying behavior which generates sales for the huge amount of money

they spend on advertising.

The survey focused on the main two local and foreign cosmetic companies which

captured 60 percent of market share in Sri Lanka. Oriflame which is the international branded company use only foreign celebrities and Nature’s Secrets uses local actresses

as celebrities (Ceylon Today, 2013; Nature’s Secrets, 2013; Oriflame, 2013). Further McCracken’s (1989) meaning transfer model describes that it is celebrities who represent

the brand name or company and consumer attempts to consume a brand which has the

greatest fit with their individual personality/image. It is the advertisers who are responsible

for transfer of the image of the product closer to the expectation of the consumer, by using

best fit celebrity attribute to reside in theimage to the product (Rawtani, n. d). Therefore in brief Oriflame Vs Nature’s Secrets clearly reflect the effectiveness of foreign celebrities Vs

local celebrities. Consequently the research analyses the result discovered that Oriflame

advertisements have more significant effectiveness with foreign celebrities compared to the Nature’s Secrets which uses the local celebrities. Moreover, the result described that

(11)

the most influential factors that affect the advertising effectiveness and foreign celebrities

have earned trustworthiness, attractiveness and expertise due to the unawareness of

them of local customers. Further Belch and Belch (2009) explained that their negative information never gets air to Sri Lanka and that this is why most of the ‘A’ grade European

celebrities do not appear in advertisements in their homeland but get paid in billions from

foreign countries since there is a great tendency for Asians to believe that they actually

have the experience in that particular product.

However, it is important for firms to keep the long term strong relationship with the

celebrity without switching to new celebrities and that would increase reliability and confident in the consumer’s mind and reduce the risk of challenge from foreign celebrities

(Amos, 2008; Erfgen, 2011). Also in selecting new celebrities in future for new products,

advertisers should be critical and need to give significant priority for the integrity,

believability of celebrity other than the attractiveness in order to have a reliable and

favorable brand image on consumer (Amos, 2008). Further, they need to stick to one

expert celebrity who does not appear for multiple brands since multiple celebrity

endorsement is ineffective for the image of celebrity .Thus, using a celebrity who is an

expert and who endorses only that brand earns more reliability, expertise and celebrity’s

loyalty towards the brand which may result in greater positive impact on consumer loyalty

(Johansson and Sparredal, 2002). Using well a reputed person is also recommended with

strong autobiographical advertising with use of traditional celebrities to promote local

brand align with heritage image which would also give positive results for local marketers

(12)

Acknowledgement

Firstly, I wish to convey my sincere thanks and appreciation to my family for being with

me and accepting my moods under extreme level pressure and their encouragement

was the key driver that constantly motivated me to complete the research successfully.

I also wish to convey my sincere thanks and appreciation to my second family team

BMS from Mr. Nizam, for offering me such a nice family background to balance my

study and work life and the motivation though the degree programme.

Secondly, I am grateful to my dissertation supervisors who guide me through the

dissertation Dr. Guy Brown from Northumbria University, Miss Dunali Perera and Miss

Rabiya Awthard from BMS for giving me such an appreciative backup with high tolerant.

Their valuable feedback and quick responses for my mails even at the last moment was

really helpful for me to finish my work as I expected.

I also wish to extend my appreciation and thanks to Mr. Dineth Smaragunarathne who

was extremely patient in teaching me to improve my academic writing from the degree

year one and guided me through the data analysis of the dissertation using SPSS soft

ware.

Finally I am thankful to my friends and colleagues who offered me with first hand help in

(13)

Chapter 01 - Introduction

1.0 Introduction

Chapter one aims to give an overall introduction to the research including the rationale

behind the research, scope of the research which identify and limit the research area,

methods that are expecting to carry out to data collection and analysis and main

objectives of the study which demonstrate the outcomes of the study. Finally all these

frame works will help to compare with the results and recommendations achieved by

conducting research.

1.1Project Rationale

This research is carried out to assess “the most effective attribute of celebrity endorsed advertising on attracting customers; Survey on cosmetic industry, Colombo District, Sri Lanka”.

Specifically it aims to identify the link between attributes of the celebrity and advertising

effectiveness trough its positive impact on customer buying behavior which generates

sales for the huge amount of money they spend on advertising. According to Wijesekara

(1996) there is a significant usage of celebrity endorsed advertising to promote cosmetics

in Sri Lanka. However, he also states that there is no significant evident to realize the

most effective celebrity endorser source effects in advertising effectiveness Additionally

there is no proper measurement to find out to what extents customers have been affected

from celebrity endorse advertisements. Therefore this topic has been argued by expert in

advertising and it is evidently presented in chapter two of this report.

Moreover, studies and researches of Amos (2008) have determined that due different

reasons, purpose and effectiveness of the celebrity endorsed advertising would be

changed. One main reason is the negative interaction with the public relations and

advertising placement (Michaelson and Stacks, 2007, p.9). However, nowadays the

cosmetic industry is struggling with a lot of competing challenges and there is a wide

availability to fail local marketers against the foreign cosmetic companies and their

(14)

also facing the same problems and it is hard to find a study on this topic even though

there are lots of researches on celebrity endorsement.

However, it will be interesting to find out as to how to overcome all those challenges face

by marketers in relation to celebrity endorsed advertising. Moreover, Richards and Curran

(2002) also put a forward view on this by stating that advertising also has a huge impact

on keep customer loyalty other than the product quality. Thus this situation is interesting to

find out how and what have done by advertisers to keep customer loyalty by recalling and

reinforcing the products in cosmetic industry. Consequently through several surveys and

studies Belch and Belch (2009) found that cosmetic industry has a high tendency to keep

customer loyalty at a highest level since always people tend to stick to one particular

cosmetic brand and this is demonstrated in Figure 1.0 (Please refer the Appendix 2).

1.1.1 Significance of the study

 For companies and advertisers to understand the most effective celebrity attribute that should be used in advertising in order to have positive customer attraction.  Allows marketers and companies to identify developing challenges and strategies

in advertising with referring to why local firms and celebrities fail in attracting

customers compare to international level celebrities.

 Enhances advertiser’s knowledge in choosing celebrities and to create innovative celebrity endorsed advertisements and to enhance customer’s knowledge in

selecting best suitable product.

 Other competitors who excluded in this research may also find the ways to close the gaps and use the research results to create effective celebrity endorsed

advertising.

 Other competitors who excluded in this research may also find the ways to close the gaps and use the research results to create effective celebrity endorsed

(15)

1.2 Current situation

Most of the studies indicate that cosmetics manufactures and clothing manufactures are

the most common users of celebrity endorsed advertising in worldwide (Business

dictionary, 2012). Further global wise celebrity advertising is in a period of significant

growth and the global cosmetic market is annually growing at a rate of 4.6 percent since

the year 2004 (Datamonitor, 2012; Erfgen, 2011). However, Kotler et al. (2009) mentioned that, advertisers, marketers should carful since the South Asian Gross Domestic Product

(GDP) rates are not yet placed well, compare to the world standard. Although with the

current economic growth, GDP rate of Sri Lanka is 8.3 percent and current expenditure

rates, investments in whole sale and retail trading indicate a significant growth in

economic states in compare to the past years (Central Bank of Sri Lanka, 2012, p. 25).

Indeed as Kotler et al. (2009) believed that economic situation of a country has a huge impact on purchasing power of customer. In addition LMD (2001, cited in Lalanananda,

2007, p. 1) analysis of industry advertising data discovered a significant increase in “advertising expenditure, from Rs.1.5 billion in 1997, to Rs.2.0 billion in 2000” in Sri Lanka. Further, Lalanananda, (2007) and Belch and Belch (2009) support Wijesekara’s (1996, p. 1) argument which is “advertising expenditure will result in an increasing brand’s market share” which is showed in Figure 1.1.

(16)

Source: Nielsen (2011, n. p.)

1.2.1 Company profile

1.2.1.1 Oriflame

Oriflame is Swedish company which owns 17 percent market share in Sri Lankan market

and famous for Swedish natural innovative beauty products over 61 countries including Sri

Lanka (Oriflame, 2013). Normally oriflamme uses international celebrities only through

their magazines, bill boards and leaflets. These are unique products which are expensive

and not affordable for everyone and no any outlets except the main three branches in Sri

Lanka and 1.3 billon annual sales are done by 3.3 million consultants over the world

(Oriflame, 2013).

1.2.1.2 Nature’s Secrets

The largest herbal cosmetic manufacturer in Sri Lanka which is Nature’s Secrets has owned “38 percent” of market growth and local exports the products over 50 countries in

the world (Ceylon Today, 2013; Nature’s Secrets, 2013). Nature’s Secrets uses local

actresses as celebrities in there television advertisements and bill boards. Company

enjoying the wide range of market which categorized expensive to normal and company

has expanded from every supper market to small grocery shop through great distribution channels (Nature’s Secrets, 2013).

1.3 Overview of literature review

Advertising is one of the major concerns of sales promotion which is defined as a tool that

use to compete within the industry to ensure strong and rapid customer response in terms of “boosting sagging sales” (Kotler et al. 2009, p.476). Belch and Belch (2009), Tom and Eves (1999) and Kazmi and Batra (2009) explain usually advertising as an information

source and unusually for persuasive perspective and also it is a stimuli to customer. As a

response to this Amos (2008) argue that both advantages and disadvantages may

associate with the use of advertising since advertiser always has a risk of success.

(17)

According to the past surveys, advertising messages delivered by celebrities provide a

higher degree of attention and possibly message than those delivered by non-celebrities

(Menon, 2001). Although Agrawal and Kamakura (1995) and Erfgen (2011) noticed the

purpose of using celebrity endorsement strategy is to assess the profitability from their

fame. Tom and Eves (1999) state that celebrity endorsed advertising is effective when it touches the consumer’s heart. At the same time Petty, Cacioppo and Schumann (1983)

stated that it is common that advertising effectiveness is depend on attractiveness of

celebrity and most of the people tend to neglect the message contains. Opposing this

Amos (2008) argues that celebrity attractiveness has no impact on advertising

effectiveness since non attractive people has gain more effective results also.

However McCracken’s (1989, cited in Choi and Rifon, 2007, p. 307) model describes

celebrities as representatives who transfer their symbolic or meaning to the public, through products or brands they endorse in advertising while Till & Busler’s (1998) match

up hypothesis model describes celebrity product fit and its impact on attracting

consumers. This is supported by Brandchannel (2013) and Schlecht’s (2003, p.3) views

which is celebrities are people who enjoy public recognition on behalf of the product or

brand they endorsed. However, celebrity endorsement is a common advertising tool,

which is said to have significant impact on the customer decision-making process (Kotler

and Armstrong, 2008). Amos (2008) and Martin et al (2002) summarized, key predictors towards advertising effectiveness include celebrity performance, negative information,

credibility, celebrity expertise, celebrity trustworthiness, attractiveness, familiarity,

likeability, and celebrity- product fit. In offering a summary, Menon (2001) suggested that

the mix of celebrity appearance, celebrity knowledge and many other celebrity attributes

(18)

1.4 Objectives

 To critically review literature on advertising, celebrity endorsed advertising as a marketing communication method and defines different celebrity endorser

attributes.

 To ascertain the impact of different attributes of celebrity endorsed advertisements on attracting customers through a survey in regards to Colombo District, Sri Lanka.  To find out the most effective attribute of celebrity endorsed advertisements based

on identified factors from the literature search.

 To, establish a sufficient conclusion and to make recommendations to companies in order to overcome the challenges faced in choosing celebrities.

1.5 Scope of the research

1.5.1 Companies Chosen

The total number of cosmetic companies of beauty and cosmetic industry in Sri Lanka is 195 of which Oriflame and Nature’s Secrets are the market leaders capturing a significant

market share of the industry (Yellow Pages Directory, 2009).

1.5.2 Geographic area

The Colombo District is taken to carry out the research since the usage of the cosmetic

products high in Colombo district compare to the other cities.

1.5.3 Demographics

According to the surveys of different authors Calvert (2008) insists that age’s between13–

19 (teenagers) is the people who influenced from the advertisements most. Further, most

frequently, age within 20-39 age groups is the majority usage of all cosmetics products.

(Hitay, 2013; Persaud, n. d.). Therefore the demographics would scope up to male and

female in the age group, between the ages of 13-40.

1.5.4 Product specific

Cosmetics products are the main concern including all toilette products, skin care, hair

(19)

1.6 Outlines of methodology

Research Approach will be a survey as design as to carry out a descriptive study based

on quantitative data which is more weighted to the social, behavioral researches (Cohen,

1980, cited in Sukamolson, n. d.; Newman and Benz, 1998). The sampling technique that

will be used in this research will be probability sampling, as Sekaran and Bougie (2011)

noted that this where usually the probability is known and equal for every person being

selected within the population. The population of this research can be considered as all

the people who use the cosmetics and who live in Colombo District, Sri Lanka. The sample size is 100 people out of “2,323,826 population” of Colombo district (Census of

population and housing, 2012, n.p). Also, data will be collected through a simple random

sampling. However the research objectives that mentioned above will be achieved by next

(20)

Chapter 2 – Literature Review

2.1 Introduction

This chapter seeks to focus on the theories, models and views of different academic

sources such as books, peer viewed journal articles, research reports, theses and fact

sheets. A critical literature review should include the evaluation of key information from

main source that discuss and illustrate with different views on the same subject area

(Denscombe, 2009). Hence applying a critical review this chapter will demonstrate what is

advertising, celebrity endorsed advertising as a form of advertising, role of celebrity

endorsement in marketing communication and different celebrity attributes which affects

the effectiveness of advertising in related to the topic area of research.

2.2 Advertising defined

There are different definitions for the word advertising due to different segments of

individual perspectives such as customers, business people, journalists, sociologists and

economists (Kazmi & Batra, 2009). Kazmi & Batra (2009) further mentioned that,

advertising is a marketing process for business people, it is a communication, public

relation to the journalists, economists and sociologists to see the ethical or the societal

significance of it. Due to the above ambiguity towards the meaning of advertising, it is

important to seek how it affects on consumer buying behavior

Most of the definitions indicate advertising as one of marketing communication methods

which is also known as a ‘marcomm’ (Pringle & Binet, 2005). Belch and Belch (2009, p.18) describe advertising as “any paid form of non personal communication about an organization, product, services, or idea by an identified sponsor”. Furthermore, Weron and

Weron (2008, p. 1) put forward a view on this by stating that, advertising is a means of providing “information” about product characteristics and prices to consumers in order to make an “efficient decision”. Moreover Clow (2007) describes advertising as a tool of

strategic marketing communication where promotional activities achieve the tangible

results in terms of attracting customers. Richards and Curran (2002, n. p.) also support

(21)

Supporting to above communication perspective, Ibid’s (n.d. cited in Tahtinen, 2006, p.

156) point of view indicates advertising is a paid, mediate form of communication that “designed to persuade” and the receiver to take some action. This is further described by Tom and Eves (1999, p.39) who conceive that, “the purpose of advertisements is not only to inform but also to persuade”. Martin et al. (2002) argued affirming that advertising effectiveness can differently perused towards the diverse factors of consumers such as

demographical factors. Nevertheless supporting above authors Braun et al (2002, p. 1) state that advertisers use celebrities in “autobiographical advertising” as a mediate to create “nostalgia” and loyalty for their products and brands. Baumgartner et al (1992) intended to explain autobiographical advertising where advertisers induce customers with

remarkable advertisements reminding the positive similar situations and memories in

order to force them to buy the product.

Equally opposing to both the communication and persuasive perspectives, some of the

studies evidenced that advertising is significantly related to impulsive behavior considering

advertising as a major promotional activity refer to external stimulus of impulse resulting in

a direct increase in sales (Dittmar, Beattie and Friese, 1996). In the purchasing intention

Agrawal and Kamakura (1995) also believe the purpose of advertising strategy as to

assess the profitability. In addition Lavidge and Steiner (1961) and Richards and Curran

(2002) acknowledge enterprise and sales based view of advertising affirming it as a

function to produce or boost sales and mentioned about the importance of channel regard

to the number of sales. Moreover, Tahtinen (2006) put a forward view on this by stating

that, advertising will result significant increase of sales immediately or afterward. Lavidge

and Steiner (1961, p.137) totally agree with above statement about the concept of

(22)

Richards and Curran (2002) have mentioned that effective marketing communication

methods should based on the advertising channels, purpose or time and the audience. At

the same time Michaelson and Stacks (2007) noticed the interaction with the public

relations placements and advertising placement based on several experimental studies they carried out. Weron and Weron’s (2008) argue that, advertising is frequently used for

the purpose of introducing new products and therefore the place and other relevant

information are vital in order to compete with existing products. On the contrary Lavidge

and Steiner (1961) noted a series of activities which advertising can be used as influential

factors as viewed in Table 2.1.

Table 2.1 - Usage of advertising

The process of activities that advertising can be used

 Totally unaware of the existence of a product or service,  Merely aware of the existence of a product or service,  As a up step to people who know the existence well

 As a closer for purchasers who have favorable attitude towards the product or service and preference over all other options,

 As an actual purchase attitude

(Adopted by Lavidge and Steiner, 1961)

Thus advertising is naturally intended to reflect as a communication method where

delivering the message with the any form of content or the purpose mentioned above

(Clow, 2007; Richards and Curran, 2002). However, considering this ambiguity towards

the usage of advertising Richards and Curran (2002) conclude that purpose could be

persuasiveness or entertainment, increase of sales, introducing new product or any other

(23)

2.2.1 Impact of advertising on consumer buying behavior

Weckman (2009) believes aggressive advertising has a positive impact on consumer

buying behavior which always complimentarily rises. Nevertheless advertising is one of

the influencing factors to consumer buying behavior that comes under marketing stimuli in

a huge psychological process (Kotler et al, 2009). However advertising effectiveness which is varying with the advertisement placement and the purpose will demonstrate by

below Figure 2. 1 and it also shows the significant impact of advertisement on different

demographic factors.

Figure 2. 1 - Impact of advertising in buying decision

What is important All

Adults

‘Influen

tials’ Have childre n ages 0-17 PC in home Access web at home or office Home owners

Past experience with brand 83% 88% 82% 83% 83% 84%

How quality compare to the other brands

63% 85% 63% 68% 69% 64%

Reasonably priced 56% 69% 55% 58% 57% 58%

Personal recommendation of others 48% 57% 47% 49% 50% 49%

Manufacturers reputation for quality 46% 54% 42% 53% 53% 49%

Well known/well advertised 21% 18% 21% 20% 21% 20%

How rated in consumer reports 15% 31% 14% 18% 18% 17%

Manufacture’s effect t cut pollution 8% 21% 8% 10% 11% 9%

Manufacture’s trade ‘policies’ 5% 9% 2% 6% 6% 6%

How manufacturer deals with union labor

5% 23% 5% 6% 6% 5%

(Adapted by Roper, 2006, cited in Belch and Belch, 2009, p. 119)

(24)

The figure describes the term ‘influentials’ and ‘Policies’ refer to meanings mentioned

bellow.

 Consumers identified as ‘influentials’ 1 in 10 people who strongly influence the other nine.

 Manufacturer trades with countries that consumer disapproves of (Roper, 2006, cited in Belch and Belch, 2009, p. 119).

Consequently Belch and Belch (2009, p. 111) defined consumer behavior as a process that people involve in when “searching for selecting, purchasing, evaluating, and disposing of products” and advertising type should match up with the consumer

requirements. (Refer the Appendix 3).

2.3 Types of advertising

Economists have identified different types of advertising that use for different types of

purposes and Figure 4 describes the four types of advertising according to Kotler et al

(2009). (Refer the Appendix 4).

Table 2.2 - Different types of advertisement

Type of

advertising

Description

Informative

advertisements

Ideal for the search of goods which are tested in terms of fit, color,

quality and lot more features by consumers before they purchase

(Dukes, 2009). Freeborn and Hulbert (2009) encourage competition among two or more similar products and it contrast the “relative quality or much value of each good” according to the given

information.

Persuasive

advertisements

Persuasive advertising focuses on “creating liking, preference, conviction” and is a way of comparative marketing in order to gain

competitive advantages (Kotler et al, 2009, p. 487). Dukes (2009) compare that informative messages are just to update the knowledge

(25)

create preference, liking towards product.

Reminder

advertisements

These are intended to remind people again and again to buy their

product and stimulate repeat purchasing (Dukes, 2009). Therefore

these advertisements should be remarkable and sometimes people

may hate the advertisement though they remember the brand, name

or the product (Kotler et al, 2009). Reinforce

advertisements

‘Reinforce’ advertising demands greater detailed information since it aims for convenience goods which “consumer cannot be sure of the quality until they consume it” (Dukes, 2009, p. 5). The task is to be stimuli to the switching customers such as ‘verity seeking’ people who

are trying new things where the product rage is wide and aggressive

advertisements may need to compete with the competitors (Barnard

and Ehrenberg, 1997; Kotler et al, 2009). Thus reinforce advertising depends on a supporting third party (celebrities) reaction, where

consumer tend to believe that as their own experience (Freeborn and

Hulbert, 2009).

(Author developed, 2013)

However, Fitzerpatrik (2005, cited in Rehman and Ibrahim, 2011) stated that as marketing

communication, all types of advertising methods are effective when, it is the right message, in the right place, with using right ‘source’ targeting right customer segments. The word ‘source’ refers to celebrities where celebrity endorsed advertising was intended

as a method of effective communication on attracting customers (Rehman and Ibrahim,

(26)

2.4 Celebrity endorsement and importance of it

Celebrity endorsed advertisements has become a “ubiquitous feature of modern marketing” (McCracken, 1989, cited in Hsu, McDonald and Danielle, 2002, p.19). Hence it

is important to define the role of celebrity in modern advertising with the identified

importance, limitations of using of celebrities. The table 2.3 will demonstrate the different

definitions on celebrities by multiple authors.

Table 2.3 - Defining Celebrity

Author Definition

Schlecht (2003, p. n.

3)

“Celebrities are people who enjoy public recognition by a large share of a certain group of people”

McCracken (1989,

cited in Choi and

Rifon, 2007)

Celebrities are individuals who behave as representatives and

transfer their symbolic or reflective meaning to the public,

through products or brands they endorse in advertising.

Business dictionary,

(2012, n.d.)

Celebrity endorsement refers a “form of brand or advertising

campaign that involves a well known person using their fame to help promote a product or service”

Friedman &

Friedman, 1979 cited

in Hoekman, n. d.)

A celebrity endorser who endorse a brand or a product to a

group of people using his/ her performance, achievements in

particular field.

Feinman, 2011, p.

100)

Celebrities are kind of “brand communication” mediates in which

line up with a particular brand or product into his/herself and certifying that product or “brand‘s claim” through the endorser’s

widen fame, performance, credibility, tallness and expertise

(27)

Gabler (2001) Celebrity is an art or a very processed person who entertains

human beings.

McCracken (1989, cited in Choi and Rifon, 2007), Schlecht’s (2003) and Canning and

West (n. d.) believe that celebrities are using their fame to promote products or brands

where companies also gain public recognition. Further McCracken (1989, cited in Choi

and Rifon, 2007) notes the main concern is celebrity image that best fits the product image and culture of the consumer in the perspective of transferring celebrity’s symbolic

meaning to the products they appear in. Further, celebrities have been identified as a form of entertainment or it is an art of gaining advantage of a person’s performance, credibility,

tallness and expertise (Feinman, 2011; Gabler, 2001). Contrary to above two authors Till

(1998, cited in Sivesan, 2013) insists that it is not the celebrity who always endorsed the product but company or the brand also has a significant effect on celebrity’s image since

celebrity endorsement is an interactive process. However, Kotler et al (2009) concludes that, celebrities are influenced by both the companies and advertisers and from the audience also. Supporting that Belch and Belch (2009) noted that most of the time ‘A’

grade celebrities do not appear in advertisements since they do not like fans to think that

they have been sold out. However, they have been paid in billions from foreign countries

such as Japan for the advertisement which never airs those advertisements to their local

fans and this is indicating the impact of the celebrity on brand image as well as influence

of the audience (Belch and Belch, 2009).

Amos (2008) and Schlecht (2003) also further supported this by stating that most of the

firms spend billions of dollars per year on celebrity endorsement contracts and as an example Venus Wliams, had a “five year $40 million contract” (Schlecht, 2003, p. 3) with sport wear manufacturer “Reebok International”. Nevertheless, it has been proved by

Friedman & Friedman (1979, cited in Hoekman) and past surveys of Menon (2001) have

found that advertising messages delivered by celebrities provide a higher degree of

(28)

typical customers or corporate leaders. Opposing to this Belch and Belch (2009) believed

appearing corporate leaders for their own company advertisements is one of the best

ways to enhance the credibility which is the most important aspect in endorsement. Kotler

et al (2009) also argues that the most credible source would depend on three main factors which are expertise, trustworthiness, and likeability.

Likewise no matter which attribute of celebrity is used but the requirement which is

attracting consumer remains the same (Canning and West, n. d.). Further Feinman (2011)

and Friedman & Friedman (1979, cited in Hoekman) and Kotler et al (2009) compare all the suggestions and arguments of above authors’ and concluded that the choice of

celebrity is critical and depend on the requirement of the situation. In supporting to this

Belch and Belch (2009) argue that using celebrities in advertising is always very an

expensive and risky strategy since all their personal life, characteristics, attitudes, physical

finesses affect the endorsement image. Similarly, the studies of Canning and West (n. d.)

show that high credibility source does not always positively impact on brand image either

produce sales.

In conclusion celebrity endorsement has become an adequate influential factor in

consumer mind and specially used in autobiographical advertising (Braun et al, 2002). However celebrities are famous people who play a significant role as an entertainers

(Gabler, 2001), also gain public recognition by transferring their meaning to the products

(McCracken, 1989 cited in Choi and Rifon, 2007; Schlecht’s, 2003), and who has a

significant impact on consumer buying behavior due to different celebrity attributes

(29)

2.5 Celebrity endorsed advertising as a marketing communication method

Marketing communication is direct or indirect influence in method of inform, persuade or to

remind consumer to buy the products (Kotler et al, 2009). As views of Fitzerpatrik (2005, cited in Rehman and Ibrahim, 2011, p. 188) marketing communication is an approach towards efficiency by synergy and defined as the “merging of distinct communication functions in a way that allows an organization to speak with one voice, one look”. Further

Schultz states (2003, cited in Rehman and Ibrahim, 2011) adds that marketing communication is more than “advertising, sales promotions and direct marketing”.

Moreover Khatri (2006, p. 25) suggests that advertising plays a major role in marketing communication “coordinating consumer purchases”, across the psychological process. At

the same time, Dukes (2008) argues the reliability of that major role including signals or

the information which is passing through the advertising messages are dependable in the

context of competitive marketing. Equally, Belch and Belch (2009) put forward a view on

this by stating that celebrities result in greater attention to gain competitive advantages

especially for new introducing products through their unique attributes, talents and fame.

Moreover, Rawtani (n. d.) insists another advantage of marketing communication is that

its celebrity in use may be a hit upon on consumer in the situations which requires greater

practicality and urgency. Supporting this Arvidsson (2005, p. 236 ) describes the link between “public communication and economic value” of goods has become an unprecedented level today due to the perception of celebrity “truth”, “beauty” and “utility”

which has been constructed by public. In addition Rehman and Ibrahim (2011) noted in the customer’s perspective, integrated marketing communication helps consumer to

compare the products in terms of their purpose, brand identity, benefits, availability and

experiences. Although the disadvantage is that it is a too common strategy, multiple

endorsers may give negative results and advertisements can be copied by another

advertiser easily (Marshall, 1997). Further Kotler et al, (2009) supporting Dukes (2008) and opposing to both Khatri (2006) and Rehman and Ibrahim (2011) suggest that using

celebrities as a marketing communication method always does not ensure higher

(30)

Additionally advertising professionals are expecting innovation in communicating and that

is normally aligned with the celebrity characteristics that are associated with trends or

behaviors of customers (Erfgen, 2011; Rehman and Ibrahim, 2011). Feinman (2011)

conceives miss-using celebrity endorsement in communication cannot be accepted as an

innovative advertising today even though it grabs the attraction as still the lack of ethical

consideration is there. Belch and Belch (2009) further noted the importance of being

ethical since most of the children in the age bellow 18 are the most affected segment

especially from television commercials and addicted to drugs and cigarettes as result of

misuse of celebrities in marketing communication. However, appearing as ethical

advertisers would result positive attitude towards the consumers since ethical

consideration has a big impact to recall the brand (Brown et al, 2003).

McGrath (2005, cited in Rehman and Ibrahim, 2011) describes importance of a positive

relationship between customer behavior and integrated marketing communication since

lack of unison and reciprocal behavior will lead to negative impact on customer relationships. Describing the tagline of “who says what in which channel to whom”, Erfgen (2011) states that ‘who’ refers message source or celebrity and it is effective to match the celebrity’s personal attribute towards the favorable brand image. ‘what’ and ‘in which channel’ obviously states message content which is associated with the celebrity strength

and marketing decision and channel should be decided according to the market segment and mostly celebrity advertising focuses on mass media (Erfgen, 2011). The word ‘whom’

refers to the end consumer and both Arvidsson (2005) and Erfgen (2011) suggests that a

consumer characteristic which has highest influence on favorable brand image is vital with

regard to target audience in the advertising communication process.

Finally Rawtani (n.d., p. 6). put forward a view supporting above arguments by stating

today, using celebrities as part of marketing communication strategy is comparatively common process of practice for major companies in supporting “corporate or brand imagery” However, advertisements are one of the sources of information that people gain

knowledge and marketers believe using celebrities as a strategy is an efficient way to

(31)

without spelling. This is supported by Marshall (1997) who argued celebrities transfer sustain class relations that associated with their own states or social classes. Hence, it is

important to study about different theories and models on celebrity selection and

application.

2.6 Celebrity endorsement theories

As Canning and West (n. d.) conclude the main three theories on celebrity endorsement

are known as meaning transfer theory, source theory and product match-up theory.

Meaning transfer theory is ideal in regard to selecting spokesperson to reflect the product

or brand image and was adopted by McCracken who is the farther of celebrity

endorsement (Canning and West, n. d.). In addition source theory and product match-up

theory are defining the better way to choose a spokesperson in persuasiveness

advertising mainly based on the credibility and the attractiveness as discussed in table 2.4

(Till & Busler,1998).

Table 2.4 - Match up theory Vs Source theory

Theory Explanation

Match up hypothesis theory

Match up hypothesis model

describes celebrity product fit and

its impact on attracting

consumers (Till & Busler, 1998).

Only positive effects of the spokesperson match up

with the product (Koernig & Page, 2002). Physical

attraction of the celebrity is the major concern and

mostly use in make-up and perfume advertisements

(Kamins, 1990; Till & Busler, 1998). Mainly

application of this theory focuses on beauty or the

appearance of the celebrity (Solomon et al, 1992). Source theory

Source model mainly determined

by credibility and the

attractiveness and associated

other characteristics with the

source used (Canning and West,

n. d.).

According to the theory persuasiveness of the

advertisements can be assessed by applied

particular source attribute and to what degree the

consumer perceives the assertions celebrity made

(Mehta, 1994). The product should match up with

different attributes that associated with source

credibility and attractiveness such as expertise,

(32)

(Canning and West, n. d., Pett & Cacioppo, 1984).

In contrast to above match up theory Amos (2008) explained that limitation was celebrity

appearance has no effect on increasing sales since non attractive celebrities also gain

much effective results. McCracken (1989, cited in Belch and Belch, 2009, p.186) argues

celebrity credibility and attractiveness that refers source model does not sufficiently explain “how and why celebrity endorsement works” and that was the influence to emerge

this meaning transfer model. This model meaning transfer model describes (Figure 2.2)

how endorsement works on attracting consumer and the importance of celebrity

characteristics that should matchup with the product (Belch and Belch, 2009).

Figure 2.2 - Meaning movement and the endorsement process adopted by McCracken

Source: McCracken (1989, cited in Schlecht, 2003, p.8)

In addition Gwinner (1997, p. 147) believes that McCracken referred the term ‘meaning’ as the consumer’s overall consideration of “what a celebrity represents” in terms of their

individual characteristics such as “regal, trashy, maleness, strong, caring, sexual, irreverent, wise”. However, the meaning transfer model includes three subsequent

(33)

(McCracken, 1989, cited in Schlecht, 2003). Further Gwinner (1997), Schlecht (2003)

and Belch and Belch (2009) agreed to each other by focusing on consumer perspective

and believed that all these celebrity attributes should be considered based on consumer’s social, cultural and demographical life style too. As specific attributed

celebrity associated with the meaning of the brand or product is important in the first

stage and secondly that meaning becomes familiar to the customer and finally the

meaning attributed to the “celebrity becomes associated with the brand in the consumer’s mind” (McCracken, 1989, cited in Schlecht, 2003, p.7). Thus at the end of

the process customer acquires the product.

Belch and Belch (2009) and Gwinner (1997) consist that, in this theory the most

important task is selecting celebrity who has the relevant attribute which is associated

with the meaning of the brand or product that enhance the attraction of product. Another

advantage of this model is it is easy to use and understand and once the product or the brand becomes a hit it assists improvements of the celebrity’s positive performance

(Gwinner, 1997; Schlecht, 2003). Similarly it is determined that there is a possibility to

have negative results with the negative characteristics and low performance and

McCracken has not explained how the media affects and why and how celebrity fails as

an endorser and how it affects the brand if the celebrity is endorsing two or three

different products despite those are reciprocal (Schlecht, 2003).

2.7 Celebrity attributes that influence endorsement effectiveness

As mentioned above according to McCracken’s (1989) model the importance of choosing

a celebrity as a spokesperson and in the marketing communication perspective

advertisers should consider many factors which influence the effective endorsement of the

(34)

2.7.1 Celebrity performance

Most of the empirical studies have determined that celebrity endorser’s performance

entitles a significant impact on the consumer trends, tastes and preference which affects the consumer’s purchasing perception (Busler, 2002). Belch and Belch (2009) and Kotler

et al, (2009) suggested that celebrity’s positive performance such as athletic winnings,

musical success etc. will enhance the product or brand’s performance as well. In addition according to the McCracken’s (1989, cited in Schlecht, 2003) meaning transfer model, the endorser’s performance can be transferred to the product. However advertiser also has a

significant risk in this transferring process since there is no guarantee that the celebrity

can keep the performance at the same hit level for long time (Erfgen, 2011). Further

Agrawal and Kamakura (1995) suggest that when a celebrity fails to perform tolerably,

according to views and expectations of the consumers, then it is likely to decline the

effectiveness celebrity endorser used to have. Supporting to this, Hoekman (n. d.)

conceives that when consumers have negative attitude towards the product then powerful

arguments and influences are needed to resist and to create positive attitude towards the

brand.

2.7.2 Negative information

Amos (2008) and Erfgen (2011) observed that the long term strong link that has been built

between the brand and the celebrity can be affected from the negative celebrity

information which influences the consumer attitudes towards the brand. Obviously this is a

critical situation to the companies and they may find it difficult to keep the reputation due to reducing trustworthiness (Amos, 2008). “Mike Tyson”, “Micheal Jackson” and “Kobe Bryant” are few celebrity endorsers who failed the firms due to issues of their personal life

(Belch and Belch, 2009, p. 185). Despite Hoekman (n. d.) put forward a view on this by

stating that companies may also tend to terminate the contract with the celebrity and gain

the trust from the consumer again with proving their honesty or they may also use consumer’s empathy towards the celebrity to promote the product further. Belch and

Belch (2009) explains the negative impact of the negative information stating that there is

(35)

product, will be most influenced by the celebrity advertisements. Therefore those people

especially in schooling are more aware about the celebrities and they quickly grab

negative information of celebrity in seconds which influenced them to stop buying the

product anymore (Hoekman, n. d.).

2.7.3 Celebrity credibility

Celebrities are generally viewed by consumers as credible sources of information about the product or brand they endorse (Lafferty and Goldsmith, 1999). Equally “source credibility” can be defined as degree the consumer perceives the assertions celebrity made due to endorser’s positive characteristics (Mehta, 1994; Ohanian, 1990 cited in

Amos, 2008, p. 2214). In addition Seno and Lukas (2007), Amos (2008) and Erfgen

(2011) and most of the empirical studies have determined that celebrity credibility is the

most effective functional attribute of celebrity that has a positive impact on brand and

purchasing perspective and highly associated with the celebrity trustworthiness and

expertise. However Lafferty and Goldsmith (1999) argue that advertising potential

effectiveness not only depends on the celebrity credibility but also with the credibility of

the brand or the firm. Hence, according to the source model above discussed, the risk

of using celebrity credibility is advertising effectiveness can be affected by several other

celebrity characteristics such as negative information that are associated with credibility

(Belch and Belch, 2009; Ohanian, 1990).

2.7.4 Celebrity expertise

Amos (2008) and (Erfgen, 2011) define celebrity expertise as to the degree that celebrity is able to make valid choices in the consumer’s mind. Kelman (1961, cited in

Johansson and Sparredal, 2002) insists that there is a high possibility to have more

favorable effect on brand from consumers if celebrities are knowledgeable, experienced

and qualified to talk about the product they endorse confirming expertise is more

effective source than the attractiveness and trustworthiness. In a contrary Ohanian

(36)

in advertising could be able to create positive attitudes towards consumers but expertise

may not be able to have significant result along since it should be associated with the

other attributes like attraction. However, with reference to several studies Hoekman (n.

d.) has found out that the expertise can be negatively affected from the credibility and

believability towards customers but negative information will not be able to affect on

celebrity expertise since the experience that they gain will remain (Hoekman, n. d.). Thus this helps above Kelman’s (1961) idea which is expertise still has a significant

favorable effect on attracting customers.

2.7.5 Celebrity trustworthiness

While expertise is important celebrity trustworthiness also has a positive impact on

consumer attitudes since with the new technologies and globalization people have

become more knowledgeable and concerned about the products they use (Belch and

Belch, 2009). Trustworthiness refers to “the honesty, integrity and believability of an endorser” (Erdogan et al. 2001, cited in Hoekman, n. d.). Further Hoekman (n. d.) argues that trustworthiness has a favorable relationship with believability and also if consumer

likes someone they will obviously believe in him/ her. With the supporting literature Amos

(2008) believes trustworthiness is a source that can be used in competing with the

non-trusted sources in order to gain a competitive advantage. However Erfgen (2011, p. 9)

argues that with the support of Belch and Belch (2009) statement that it is hard to find

out a perfectly trustful character “to be honest, ethical and believable” and hidden

cameras are also used to prove that it is not a paid spokesperson.

2.7.6 Celebrity attractiveness

As Belch and Belch (2009) describes attractiveness is the most preferable and most

frequent source effect in celebrity endorsed advertising. McCracken (1989, cited in

Schlecht, 2003, p.5) believes attractiveness is always important to create effective celebrity advertising and source “refers to the endorser’s appearance, personality, likeability, and similarity”. Further Cohen and Golden (1972, cited in Kanten, 2010) and

(37)

attractive endorsers because people inspire and entail various qualities such as

personality, aesthetics skills, lifestyles or athletic ability. In addition Belch and Belch

(2009) and Johansson and Sparredal (2002) believe that people prefer the attractive

endorsers because they find them likeable or similar to them and maintain their behaviors according to that of the endorser’s. As an example David Beckham who represent Armani

brand is an attractive and effective endorser Hoekman (n. d.). On the other hand,

Hoekman (n. d.) argues that it is not compulsory to promote the products through the

attractive celebrities and there are less attractive people who gained the effective impacts

on brands.

2.7.7 Celebrity familiarity and likability

Amos (2008) and most of the studies indicate that Familiarity and likability both are

include in attractiveness that associated with celebrity. Johansson and Sparredal, (2002,

p. 4) also mentioned that familiarity, likability and similarity include in attractiveness of celebrity and physically attractive sources are more effective “at changing beliefs” of

consumer. Further Hoekman (n. d.) and Belch and Belch (2009) believe a person who is

familiar to the customer and a person who is admired by the customer will be more

effective since it has a positive impact to grab the attention of consumer. On the other hand the familiarity will be depend on the celebrity’s exposure with the declining exposure

the company also get affected from that bad image (Johansson and Sparredal, 2002, p.

4). The studies of Kahle and Homer (1985, cited in Hoekman, n. d.) clearly determined that dislike celebrity will have negative impact on the company’s vision and despite the

companies may use the celebrity to get maximum publicity with that wrong exposure.

Because people can remember the things as much as they hate or dislike it Belch and

Belch (2009).

2.7.8 Celebrity product - fit

Till & Busler (2000, Cited in Amos, 2008, p. 216) define celebrity/product fit as the match-up hypothesis, which “refers to the harmony of the match between the celebrity endorser and the product being endorsed”. This has been proven and determined from different

(38)

effectiveness (Belch and Belch, 2009; Friedman & Friedman, 1979, cited in Hoekman).

Johansson and Sparredal (2002) put a forward view on this by stating that, this attribute of

celebrity will differ with the product type and target market type and it is important to test

the celebrity before use in endorsements since it is critical decision. Till and Busler (2000,

cited in Amos, 2008) insisted that celebrity product fit is not that effective on purchasing

intention of the consumer since it is the advertiser who create the positive celebrity

product fit according to the company requirements.

2.8 Conclusion

In conclusion, celebrity endorsement has started in 19th centuary and grown up to an ubiquitous feature today. Gabler (2001) argues celebrity taps some of the deepest

contradictions about who we are and who we would like to be. However, advantages of

the celebrity endorsement are not just to gain the publicity, reinforcement, recalls and

ensure the purchases but also they can enhance the marketers with design, positioning

and about commodities too (Kotler et al, 2009). Through several researches Choi, Lee & Kim (2005, p. 167) have found the greatest effect of celebrity endorsement is recall the