Celebrity Endorsements Effectiveness

Celebrity Endorsements Effectiveness



Celebrity Endorsements Effectiveness

Introduction

The word “celebrities” promises excitement, amusement and fun. They are constantly the focus of attention of thousands of people. People are curious about their lifestyles, secrets, and personalities. They even want to know what products the celebrities usually consume. For marketers, it offers a potential to make profit. Over recent decades, the use of “celebrities advertising” has increased rapidly. In 1975, only 15% of prime time TV advertising featured celebrities (Forkan, 1975). In 1978, it went up to 20%, and approximately 10% of the dollars spent on TV advertising featured celebrities (Sherman, 1985). In addition to severe competition, the constant change in the market environment has left little room for product differentiation. As a result, marketing communication tools have become the means to retain and increase market share. In the endorsement context, decisions regarding the type of endorser to use have become very important for three reasons (Freiden, 1984). First, the fees for celebrity talent can be substantial. Secondly, the costs for national advertising, especially on television, are extremely high. And finally, the type of spokesperson affects the levels of awareness and recall (Friedman and Friedman, 1979).

Aims & Objectives of Study

To show that advertisers but a lot of thought into selecting the right celebrities.

How they have to use tools like Match up Hypothesis, credibility and attractiveness as well as the transfer of meaning model.

To investigate if it actually increases brand awareness and sales.

How effective are celebrity endorsement advertisements at Virgin.

Research method

In this study we will use mix method methodology. We will use both qualitative and quantitative research method. In qualitative method we used the celebrity endorsement of J. Sainsbury. While for quantitative method primary objective is to determine the relationship between the use of a celebrity endorser and the brand image of the endorsed consumer products.

Quantitative Method

The primary objective of this study is to determine the relationship between the use of a celebrity endorser and the brand image of the endorsed consumer products. The ex post facto design is employed to verify the relationship among dependent variables and independent variables (Sekaran, 2000). For this, it is essential to analyze the consumers' perceptions of the influence of a celebrity endorser's characteristics (i.e., expertise, trustworthiness, attractiveness, likeability and meaningfulness) on brand image.

Cross-sectional method

The study also applied the cross-sectional method whereby every questionnaire was collected immediately after it had been completed or within a specific time frame. The objective of this approach is to ensure the accuracy of the responses.

Hypothesis

The study mainly refers to the researches conducted by Ohanian (1991), and Callot and Philip (1996). Five characteristics of the celebrity endorser were identified to test the celebrity endorsers' impact on the consumer products' brand image building. Four hypotheses were developed for this study:

H1: There is a positive relationship between the credibility possessed by a celebrity endorser and the perceived brand image

H2: There is a positive relationship between the attractiveness possessed by a celebrity endorser and the perceived brand image

H3: ...