Impact of celebrity endorsement on brand image
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Impact of celebrity endorsement on brand image Impact of celebrity endorsement on brand image Document Transcript

  • Impact of Celebrity Endorsements on Brand Image Debiprasad Mukherjee* August 2009* Debiprasad Mukherjee is a Business Process Management Consultant in IT Telecom domain.He has experience of working with Siemens, IBM, and Tech Mahindra in India and abroad. Heholds Post graduation in Management from Indian Institute of Social Welfare & BusinessManagement, India and Bachelor in Technology in Electrical Engineering. His areas of interestare Brand Management, Consumer Behavior, Advertisement, Customer RelationshipManagement, Data Warehousing, Business Intelligence, Master Data Management etc.Email:- debiprasad.mukherjee@techmahindra.com / debiprasad.mukherjee@gmail.comContact: - Techno India Building, 6th Floor EM-4/1, Sector V, SaltLake, Kolkata-700091, INDIATel No: +91 334002 8146 / +91 9830318394This paper can be downloaded from theSocial Science Research Network Electronic Paper Collection:http://ssrn.com/abstract=1444814 Electronic copy available at: http://ssrn.com/abstract=1444814
  • AbstractCelebrity endorsement has been established as one of the most popular tools of advertising inrecent time. It has become a trend and perceived as a winning formula for product marketing andbrand building. It is easy to choose a celebrity but it is tough to establish a strong associationbetween the product and the endorser. While the magnitude of the impact of celebrityendorsement remains under the purview of gray spectacles, this paper is an effort to analyze theimpact of celebrity endorsements on brands. Objective of this article is to examine therelationship between celebrity endorsements and brands, and the impact of celebrityendorsement on consumers buying behavior as well as how consumer makes brandpreferences. This paper proposes a 20 point model which can be used as blue-print criteria andcan be used by brand managers for selecting celebrities and capitalizing the celebrity resourcethrough 360 degree brand communication which, according to this paper, is the foundation of theimpact of celebrity endorsement. Celebrity endorsement is always a two-edged sword and it hasa number of positives— if properly matched it can do wonders for the company, and if not it mayproduce a bad image of the company and its brand.  PurposeTo study the impact of the celebrity endorsement on effective brand management and evaluateassociated factors that contribute to the success or failure of the endorsement.  ApproachThis work was done mainly as an exploratory research to find out the correlation betweencelebrity endorsement and brand image based on structured questionnaire and analysis is doneon the outcome/response with the help of higher order statistical tools.  FindingsThree categories of research findings have been deduced from the study. The first categorydealing with the customer’s perception about celebrity endorsements. The second aspect is thefactors those should be taken into account while endorsing a celebrity. And the last aspect is theformulation of strategic model that can be used while doing a celebrity endorsement. Electronic copy available at: http://ssrn.com/abstract=1444814
  •  ValueThis particular work will have a significant impact on the study of celebrity endorsement impact onbrand building process and can be used for further research work on the same area.  KeywordCelebrity Endorsement, Celebrity Credibility, Controversy Risk, Brand Personality, Brand Image.  ClassificationThis paper can be classified as a “Research Paper”.IntroductionCelebrities are people who enjoy public recognition by a large share of a certain group of people.Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examplesand specific common characteristics that are observed and celebrities generally differ from thesocial norm and enjoy a high degree of public awareness. The term Celebrity refers to anindividual who is known to the public (actor, sports figure, entertainer, etc.) for his or herachievements in areas other than that of the product class endorsed (Friedman and Friedman,1979).Endorsement is a channel of brand communication in which a celebrity acts as the brand’sspokesperson and certifies the brand’s claim and position by extending his/her personality,popularity, stature in the society or expertise in the field to the brand. In a market with a very highproliferation of local, regional and international brands, celebrity endorsement was thought toprovide a distinct differentiation (Martin Roll, 2006).McCrackens (1989) definition of a celebrity endorser is, "any individual who enjoys publicrecognition and who uses this recognition on behalf of a consumer good by appearing with it in anadvertisement (marcoms), is useful, because when celebrities are depicted in marcoms, theybring their own culturally related meanings, thereto, irrespective of the required promotional role."Ohanian stresses that to be truly effective, celebrities chosen as endorsers should beknowledgeable, experienced and qualified in order to be perceived as an expert in the category.Two models were originally identified to explain the process of celebrity endorsement. As anendorser, one has to fulfill all the FRED objectives (Rajesh Lalwani, 2006), namely, Familiarity(target market is aware of him, finds him friendly, likeable and trustworthy); Relevance (whichsays that there should be a link between the endorser and the product as well between the Electronic copy available at: http://ssrn.com/abstract=1444814
  • endorser and the audience); Esteem (credibility to the mass); Differentiation (in all his projections,he is seen to be one among the masses, and yet he towers above them. He is different).McCracken’s (1989) view also suggests that a symbolic “match” should exist between thecelebrity image and the brand image in order for the celebrity endorsement to be effective.Consumers with strong self-enhancement goals tend to form self-brand connections to brandsused by aspiration groups, that is, groups for which the consumer wishes to become a member(Escalas and Bettman 2003). On the other hand, self-enhancers will be more likely to reject brandassociations created by a celebrity endorsement where the celebrity associations are rejected(i.e., a non-aspirational celebrity), compared to consumers who do not have active self-enhancement goals. Companies invest large sums of money to align their brands and themselveswith endorsers. Such endorsers are seen as dynamic with both attractive and likeable qualities(Atkin and Block, 1983), and companies plan that these qualities are transferred to products viamarcom activities (Langmeyer & Walker, 1991a, McCracken, 1989). Furthermore, because oftheir fame, celebrities serve not only to create and maintain attention but also to achieve highrecall rates for marcom messages in todays highly cluttered environments (Croft et al, 1996,Friedman and Friedman, 1979). Some brands can reject celebrity endorsement outright andemerge in a better off position than their rivals. An example of a brand that has got it right isSingapore Airlines. Statistically the airline provides no more legroom than any other carrier. Yet insurvey after survey flyers consistently vote Singapore Airlines the best carrier. Could this be inpart due to the branded fragrance that has been subtly infused in all its planes? This smell isintegrated into the hand towels and sprayed in all the cabins before passengers’ board. Thereason is that smell has a direct emotional impact on consumers, bypassing the rational part ofthe brain, making consumers feel good. A branded fragrance – now isn’t that cheaper than payinga celebrity?The celebrity’s role is the most explicit and profound in incarnating user associations among theabove mentioned points. To comprehend this, let us analyze the multiplier effect formula for asuccessful brand: S=P * D * AVWhereS is a Successful Brand P is an Effective ProductD is Distinctive Identity AV is Added ValuesCelebrity endorsements cannot replace the comprehensive brand building processes. Asbranding evolves as a discipline companies must be extra cautious to utilize every possible
  • channel of communication rather than just a celebrity endorsement. When all other steps in thebranding process is followed and implemented, then channels such as celebrity endorsementscan provide the cutting edge as it did for Nike endorsement romance with Tiger woods. WhatNike did was to use celebrity endorsement as one of the main channels of communicating itsbrand to a highly focused set of customers. So, Nike’s association with Tiger Woods was one ofthe parts of an entire branding process that Nike has been practicing consistently.There are hundreds of well known examples of celebrity endorsements, most of which werehugely successful due to proper endorsement strategy. Italian luxury brand Versace has usedmusic icon Madonna and Hollywood stars Demi Moore and Halle Berry in its print advertsbetween 2005 and 2006. Likewise Julia Roberts appears in Gianfranco Ferres adverts, SharonStone in Dior and Jennifer Lopez, Scarlett Johansson, and Uma Thurman in Vuitton ads. Also,non-luxury brand Gap has used television star Sarah Jessica Parker to promote its brand in therecent past. Similarly Catherine Zeta Jones for T-Mobile, Emmitt Smith for Just For Men, JasonAlexander for KFC. In India, probably the first ad to cash in on star power in a strategic, long-term, mission statement kind of way was for Lux soap, a brand which has, perhaps as a result ofthis, been among the top three in the country for much of its life-time. In recent times, we had theIndian cine star Shahrukh Khan – Hyundai Santro campaign with the objective of mitigating theimpediment that an unknown Korean brand faced in the Indian market. Think of great cricket starSachin Tendulkar. He means Pepsi in soft drinks, Boost in malted beverages, MRF in tyres, FiatPalio in cars, TVS Victor in two-wheelers, Colgate Total in toothpastes, Britannia in biscuits, Visain credit cards, Airtel in mobile services and Band-aid.Businesses have long sought to distract and attract the attention of potential customers that livein a world of ever-increasing commercial bombardment. Everyday consumers are exposed tothousands of voices and images in magazines, newspapers, and on billboards, websites, radioand television. About 20% of U.S. ads feature celebrities (Solomon 2009), and the percent of adsusing celebrities in other countries, such as Japan, is thought to be even higher.Research ObjectivesObjective of this study was to reveal and re-establish the positive impact of celebrity endorsementon brand image and find out the most prominent factors those play the key role in the success ofan endorsement. The research objective was to explore the link between brands and theconsumer psyche and determine a model which can help any brand to identify the critical keyareas to concentrate on while going for any celebrity endorsement. The newly evolved modelshould lead any brand towards the success of strategic branding from endorsement aspect.
  • Literature SurveyThis paper uses a wide range of accepted principles of how consumers brand attitudes andpreferences can be influenced, how buyers behavior can be influenced, how buyers behaviorcan be molded. The principles of credibility of source and attractiveness, the match-uphypothesis, the consumer decision-making model and the communication model are taken intoaccount to understand the endorsement impact. Study reveals that the impact of celebrityendorsement is proportional to the 20 factors discussed in the model. The success of a brandthrough celebrity endorsement is a cumulative effect of these attributes. This study reveals andre-establishes that corporate must always keep in mind that the objective is to build the brand andnot the celebrity. It is also important to appreciate that just because an individual is famous andconsidered a celebrity, he/she might not necessarily be an effective endorser.As companies invest large sums of money in celebrity endorsement contracts, any celebrityendorsement relationship must contribute to larger marketing strategies (Erdogan and Kitchen1998). Accordingly, campaigns involving celebrities are believed to bring more positive results ifthey are properly integrated than traditional non-integrated campaigns (Bertrand and Todd, 1992;Rogers, 1997). In order to discover what advertising agency managers think about integratingcampaigns involving celebrities, they were asked to give their opinions on the issue.Traditional explanations of celebrity endorsement persuasion effects are based on the sourceeffects literature and find that 1) celebrity endorsement increases the attention paid to an ad(Buttle, Raymond, and Danziger 2000); 2) celebrities are generally attractive, which helpspersuasion when consumers are worried about social acceptance and others’ opinions (DeBonoand Harnish 1988) or when the product is attractiveness-related (Kahle and Homer 1985, Kamins1990); 3) celebrities may be credible sources if they have expertise in a particular area, such asan athlete endorsing shoes (Ratneshwar and Chiaken 1991) or a beautiful model endorsingmake-up (Baker and Churchill 1983); and 4) celebrities are often well-liked, possibly leading toidentification and consumer persuasion in an attempt to seek some type of relationship with thecelebrity (Belch and Belch 2007). In traditional dual process models (e.g. ELM; Petty, Cacioppo,and Schumann 1983), celebrities are most often considered a peripheral cue: they are importantin persuasion only when consumers are not involved in the product category or in processing thead. However, celebrities may provide central information when an aspect of the celebrity matchesthe product (as with beauty products and attractiveness; Kahle and Homer1985). Also, asaffective peripheral cues, celebrity endorsements may lead media weight to have an impact onsales in mature categories (MacInnis, Rao, and Weiss 2002). The company makes use of the
  • celebritys characteristics and qualities to establish an analogy with the products specialties withan aim to position them in the minds of the target consumers. To be successful, brands need toconvince consumers that they carry a different image and value from other competing products(Sadhu Ramakrishna, Santhosh Reddy, 2005). In other words, brands have to show their truepersonality to the potential consumer(s). It was not until the 1920s, however, that advertisersused famous people for product endorsements. Actresses Joan Crawford, Clara Bow and JanetGaynor were among the first celebrities to promote products (Fox, 1984). At that time, therationale given by advertising agencies for using celebrities was "the spirit of emulation" (Fox,1984, p.90). About a decade ago, one in three television commercials used celebritiesendorsements (Business Week, 1978), and today this advertising approach appeared to be onthe increase across all media types (Sherman, 1985 and Levin, 1988). Friedman et al. (1977)found that celebrities are featured in 15 percent of the prime-time television commercials. In theUnited States, it was reported that about 20% of all television commercials feature a famousperson, and about 10% of the dollars spent on television advertising are used in celebrityendorsement advertisements (Advertising Age, 1987; Sherman, 1985). Thus, celebrityendorsement has become a prevalent form of advertising in United States (Agrawal andKamakura, 1995) and elsewhere. Today, the use of celebrity advertising for companies hasbecome a trend and a perceived winning formula of corporate image building and productmarketing (Media, July-August 1997). This phenomenon is reflected by the recent marketresearch findings that 8 out of 10 TV commercials scoring the highest recall are those withcelebrities appearances (Media, Nov. 14, 1997). Brands have become embedded in theconsumer psyche and offer consumers the opportunity for self-expression, self-realization andself-identity. This effect is particularly strong in fashion categories. Barriers including cynicism andincreasing advertising literacy threaten traditional approaches to brand communications, whichhave traditionally relied on verbal communications and storytelling. Celebrity endorsement isrecognized as a potentially potent tool in communications, with celebrities viewed as morepowerful than anonymous models and campaigns tending to verbalize the meaning of thecelebrity in relation to the brand (Brian Moeran, 2003). To the manufacturer, brands offer ameans of identification for ease of handling and tracking, legal protection and the ability to bedistinctive. In addition, branding is a sign of quality and can be used to secure competitiveadvantage and increased financial returns and high customer loyalty. For the consumer, thebrand functions as a means of identification, reduces search costs, effort and perceived risk,thereby facilitating a shortcut in decision making, and represents a guarantee of quality andreliability. Silvera and Austad note that the celebrity system is primarily an American culturalenterprise and that Americans identify especially strongly with celebrities and are thus morewilling to accept and internalize endorsement messages. Consumers from other cultures may notshow correspondent bias, believing that endorsers like the product less than most people. This
  • was evident in a sample from Norway, where cultural norms based on Janteloven suggest that anindividual should never try to be different or consider himself more valuable than others. The setof associations consumers have about a brand is an important component of brand equity (Keller1993), and we believe that forming a self-brand connection is a psychological manifestation ofsuch equity at the consumer level. When consumers appropriate or distance themselves frombrand associations based on celebrity endorsement, they do so in a manner that is consistentwith self-related needs, such as self-enhancement (Escalas and Bettman 2003). Recent researchindicates that consumers construct their self-identity and present themselves to others throughtheir brand choices based on the congruency between brand-user associations and self-imageassociations (Escalas and Bettman 2005, 2003). Brands can be symbols whose meaning is usedto create and define a consumer’s self-concept (Levy 1959). McCracken’s (1986) model ofmeaning transfer asserts that such meaning originates in the culturally constituted world, movinginto goods via the fashion system, word of mouth, reference groups, sub cultural groups,celebrities, and the media. The meaning and value of a brand is not just its ability to express theself, but also its role in helping consumers create and build their self-identities (McCracken 1989).McCracken, highlighting the limitations of the source models, puts forward a three-stageMeaning Transfer model, which has been adopted as the model that comes closest toconceptualizing the process. Dwane Hal Dean (1999) studied the effects of three extrinsicadvertisement cues viz. third party endorsement, event sponsorship and brand popularity onbrand / manufacturer evaluation. It was observed that endorsement significantly affected onlyproduct variables (quality and uniqueness) and one image variable (esteem). The third partyendorsement hence may be perceived as a signal of product quality. Goldsmith et al.(200)assessed the impact of endorser and corporate credibility on attitude-toward-the-ad, attitude-toward-the-brand, and purchase intentions. 152 adult consumers were surveyed who viewed afictitious advertisement for Mobil Oil Company. They rated the credibility of the ads endorser, thecredibility of the company, and attitude-toward-the-ad (Aad), attitude-toward-the-brand (AB), andpurchase intentions. It was observed that endorser credibility had its strongest impact on Aadwhile corporate credibility had its strongest impact on AB. The findings suggest that corporatecredibility plays an important role in consumers reactions to advertisements and brands,independent of the equally important role of endorser credibility.Most brands start a life without personality. Lets be honest, a brand by itself will never walk, talkand get photographed. But by tying it with a celebrity, the name of a product or a company cantake on instant glitz, glamour, charm, sex-appeal and aspiration. D. Reeder (Greenlight L.A) said,"Peoples fascination with celebrities isnt going away. The use of celebrities is here to stay. But inwhat form is the open question." Now to derive some strategic path of the endorsement,endorsing brand need to assess the impact of the chosen celebrity on the particular brand.
  • There is no doubt that celebrity advertising has its benefits -- the four Qs:  Quick saliency: It gets cut through because of the star and his attention getting value.  Quick connect: There needs to be no insight but the communication connects because the star connects.  Quick shorthand for brand values: The right star can actually telegraph a brand message fast without elaborate story telling.  Quick means of brand differentiation: In a category where no brand is using a celebrity, the first that picks one up could use it to differentiate itself in the market.To develop a successful roadmap of brand endorsement, the research suggests to explore thelink between brands and the consumer psyche. Belk (1988) considers the concept of theextended self, which comprises self (me) and possessions (mine), suggesting that unknowingly,intentionally or unintentionally we regard our possessions as reflective and as part of ourselves.OShaughnessy (2002) asserts that consumers seek positional products to signify groupmembership and to mark their position. Thus, brand consumption has evolved into a process ofself-reference, self-identity and self-articulation. Onkvisit and Shaw (1987) define this as theoutcome of a learned, continuous and active process that consolidates the ideas and feelings wehold in relation to other people in a socially determined frame of reference. Batra and Homer(2004) suggested that beliefs and personality assertions of endorsers need not be verbally andexplicitly stated in advertisements, but can be inferred by recipients. After watching anadvertisement the consumers try to find the meaning of the advertisement and associate thesame with the endorser and eventually transfer to the brand. Kamins developed the match-uphypothesis, which emphasizes the need for celebrities to be evaluated and selected in the contextof the brand values and image. In relation to product categories, Batra and Homer (2004) refer tothe existence of consumer schema for different products, which may influence the degree ofreceptivity to messages delivered by celebrities. Products high in psychological or social risk mayprovide the strongest evidence for the impact of celebrities on message transmission. McCrackenand Roth (1989) refer to the use of clothing as a code, a form of language that allows a messageto be created and (selectively) understood. While analyzing the major factors that are havingmaximum impacts of successful endorsement, the followings are found out:  Consistency and long-term commitment: As with branding, companies should try to maintain consistency between the endorser and the brand to establish a strong personality and identity. More importantly, companies should view celebrity endorsements as long-term strategic decisions affecting the brand. A global brand must respect local needs, wants, and tastes while endorsing.
  •  Prerequisites to selecting celebrities: Before signing on celebrities to endorse their brands, companies need to ensure that they meet three basic prerequisites, namely the endorser should be attractive, have a positive image in the society, and be perceived as having the necessary knowledge (although it might be difficult for a celebrity to meet all three prerequisites). Most of the prerequisites are already discussed in the previous section of the article. Celebrity–brand match: Consistent with the principles discussed earlier, companies should ensure a match between the brand being endorsed and the endorser so that the endorsements are able to strongly influence the thought processes of consumers and create a positive perception of the brand. Tiger Woods endorsing the Buick brand makes no sense at all. There is just no believability that Tiger is dying to drive a Buick. And without believability a celebrity endorsement is worthless. The $40 million General Motors reportedly paid Tiger for his 5-year contract ending in 2009 is not money well spent. Kellogg’s opted out of a contract extension with Olympic swimmer Michael Phelps several weeks ago, the company simultaneously ripped Phelps’ bong-hit photo as being inconsistent with its image. “Kellogg is a family brand. How does Mom, who does the family shopping, feel about Phelps?” said David Reeder, vice president of GreenLight (2009), a brand and entertainment consulting firm. Constant monitoring: Companies should monitor the behavior, conduct and public image of the endorser continuously to minimize any potential negative publicity. Selecting unique endorsers: Great brands represent great ideas. These brands express the uniqueness of position to all internal and external audiences. Companies should try to bring on board those celebrities who do not endorse competitors’ products or other quite different products, so that there is a clear transfer of personality and identity between the endorser and the brand. The controversy related to the endorser’s personal or professional life mat hamper the associated brand image. Kobe Bryants family-friendly endorsement deals with Nutella and McDonalds came to a quick end after he was accused of rape. Pepsi shied away from Madonna after her Like a Prayer video aired. Timing: As celebrities command a high price tag, companies should be on the constant lookout for emerging celebrities who show some promise and potential and sign them on in their formative years if possible to ensure a win–win situation. Myopic endorsement strategy: Most of the endorsement goes wrong due to myopic vision of endorsement. The real problem is that too many brands have a myopic focus on short terms sales and ‘awareness’. With this mindset they are logically driven towards ill conceived celebrity endorsement campaigns. Virgin is a classic example of a brand that
  • hasn’t thought about its brand personality before matching with a celebrity. Virgin Media, previously associated with the subtle Uma Thurman, has now opted for “in your face” (according to Virgin media Chief James Kidd) Ruby Wax. Virgin clearly hasn’t distinguished between its product sales and brand strategy Brand over endorser (Vampire Effect): When celebrities are used to endorse brands, one obvious result could be the potential overshadowing of the brand by the celebrity (Martin Roll, 2006). Companies should ensure that this does not happen by formulating advertising collaterals and other communications. Examples are the campaigns of Dawn French-Cable Association and Leonard Rossiter-Cinzano. Both of these campaigns were aborted due to celebrities getting in the way of effective communication. So, while presenting the endorser, this should be kept in mind that Endorser is promoting the brand not the vice versa. Thats why Coca-Colas idea of having Mean Joe toss his jersey to a young boy in exchange for a bottle of Coke was brilliant. The commercial made charming use of Mean Joes image, but Coke was the star. Celebrity endorsement is just a channel: Companies must realize that having a celebrity endorsing a brand is not a goal in itself; rather it is one part of the communication mix that falls under the broader category of sponsorship marketing. Over dependency on celebrity: A celebrity is not a replacement for an idea. A brand without a focus will never find the correct celebrity to match the brand. The celebrity trap: Once into a celebrity, it is hard to get out of it. If the brand has done even moderately well after the break of a celebrity campaign, it becomes difficult to separate the role of message and the role of the celebrity in selling the brand. Trademark and legal contracts: Companies should ensure that the celebrities they hire are on proper legal terms so that they don’t endorse competitors’ products in the same product category, thereby creating confusion in the minds of the consumers. Overall Management: The organization’s senior leadership must champion the brand, ideally with the CEO leading the initiative. A leader’s continual articulation of the brand philosophy and the brand’s view of the world is meant to give the celebrity endorsement strategy a recognizable face. Investment: Intangible assets, including brand, now comprise the majority of the value of a company. These assets require capital investment like any other. Progressive companies and enlightened management recognize the need for appropriate communications spending.
  •  The Brand endorsement team: Global brands demand a global brand management team. This regional and international organization is in place to maintain brand leadership through efficient and effective use of celebrity endorsement.  Feel Cultural Sensitivity: To go global with a brand, endorsement strategy should make sure you understand cultural sensitivities.  Celebrity ROI: Even though it is challenging to measure the effects of celebrity endorsements on companies’ brands, companies should have a system combining quantitative and qualitative measures to measure the overall effect of celebrity endorsements on their brands.Advertising is one of the major factors behind the economic activity of a country as it not onlyhelps to stimulate consumption but also give models for lifestyles and value orientation (Polly andMittal, 1993). Celebrity ads are becoming very common and prominent phenomena in advertisingeverywhere. Almost 25% of all American ads have celebrities in them (Stephens and Rice, 1998)and this percentage is more than double, up to 70% in Japan (Kilburn, 1998).The effectiveness ofa celebrity endorsement strategy may be mediated by variables such as the celebrity/product fit,the product and usage occasion, societal/cultural conditions and the volume of repetitiveadvertisements featuring celebrities. While brand marketers with positive experiences would tendto believe that celebrity endorsements work and some would disagree, but one would be surethat the magnitude of its impact is difficult to measure even if sales figures are at our disposal. AsAjzen and Fishbein (1980, p.5) put it, "Human beings are usually quite rational and makesystematic use of the information available to them... People consider the implications of theiractions before they decide to engage or not to engage in a given behavior." Celebrityendorsement has a big impact on purchase decision. As per Neha Taleja (2005), Markets inwhich advertising coordinates consumer purchases, celebrity endorsements are more likelychosen for products that have either of the following: -  High price-cost margins  Large potential customer pools  The need to co-ordinate across diverse sets of customers.This research also includes the endorser viewpoint of signing a contract with a brand. Assuggested by Zafer & Baker (2001), even though building-up a whole marketing communicationcampaign around a celebrity(s) makes complete sense, most celebrities are reluctant to sign suchdeals for four reasons.
  •  They are very concerned about their exposure. Should they sign a deal for more than the main media, they know their picture can be stuck all over the place and they would lose control over their exposure.  They do not want to be too closely associated with a particular product that may cost them other potential deals.  They are uncomfortable with some media, as they are motionless.  They may be unable to sign for some media as their previous deals prohibit them.As per Zafer & Baker, Using multiple celebrities or a single celebrity partially depends on the timescale a campaign is using to have impact. If the campaign has a long-term strategy, agencieswould be more careful because potential downsides are much more than potential upsides. ABrand endorser would be one who is not only a spokesperson for the brand or is just appearingas a testimonial for the brands benefits. He/she is an integral part of the brand persona and helpsto build an emotionale, which goes beyond just appearing on TV commercials. Friedman andFriedman (1979) found empirical evidence that, in the promotion of products high in psychologicaland/or social risk, use of celebrity endorser would lead to greater believability, a more favorableevaluation of the product and advertisement, and a significantly more positive purchase intention.Research MethodologyQuestionnaire based sample analysis was the base of this study. The sample was believed to bequite representative of the population, but nonetheless it was a convenience sample which maybe defined as ‘a form of non-probabilistic or purposive sample drawn on a purely opportunisticbasis from a readily accessible subgroup of the population (Baker 1990). A well framed set ofquestioned were circulated through email to the target personnel or some interviews wereconducted over telephone, even few of them were face-to-face. Table-1 lists the twelveparticipating companies where correspondents from different industries (IT, Telecom, Power,Paints, Education, Advertisements, and FMCG etc) are interviewed. Interviews took place atdifferent agencies and at the icebreaking stage of every interview; managers were specificallyinformed that this research was concerned with any kind of celebrity utilization (i.e. actors,endorsements, testimonials, or spokespersons) in marketing communication activities. Interviewsover phone or face to face, were lasting on average over half of an hour.
  • Table-1 Participating CompaniesTech Mahindra Ltd. CESC Ltd.Siemens Information Systems Ltd. Berger PaintsIBM India Ltd. ITC India Ltd.Green Ply Techno India GroupIndian Institute Of Social Welfare & Business Field n focusManagementDHL Nokia Siemens NetworkManagers’ reasons for utilizing celebrity endorsersStanding out or shorthandAwareness or attention gettingCelebrity values define, and refresh the brand imageCelebrity add new dimensions to the brand imageInstant credibility or aspirationPR coverageDesperate for ideasConvincing clientsAccording to managers, factors considered while selecting celebrities vary depending on howcelebrities are utilized; celebrity as the central feature, or celebrity for the added interest.Selection criteria1. Celebrity-Product Match2. Celebrity-Target Audience Match3. Celebrity Popularity4. Celebrity Credibility5. Celebrity Values6. Celebrity Physical Attractiveness7. Celebrity Regional & international Appeal Factors8. Celebrity Controversy Risk
  • 9. Multiple Endorsements10. Costs of Acquiring the Celebrity11. Fit with the Advertising Idea12. Celebrity Availability13. Celebrity should be Brand User14. Consumer Influencing Advertisement15. Previous Endorsements16. Use of promotional Medium17. Brand Image Formation capability18. Interest of endorser19. Endorsement management team20. Unique Idea of promotionThe research was conducted using a questionnaire designed to understand consumers views oncelebrity endorsement, measuring their attitude toward ad, attitude toward brand and theirintentions to purchase the given product or service. The demographic factors including Genderand age are taken as independent variables. The perceptual differences were measured withrespect to single celebrity ads and multiple celebrities’ ads. To measure consumer perception,three variables were studied, attitude toward advertisement, attitude toward brand and purchaseintentions. The sample consists of 88% male while 12% female respondents, 21% were of agebetween 18 to 21, 49% were of age between 22 to 26 while 30% were of age between 27 to 30.72% of respondents had bachelors degree while 28% had professional degree.Statistical Tools UsedThe non response bias was measured applying two statistical techniques. Firstly, Statisticalmeasure of higher order like Sample distribution analysis along with required regressiontechnique for modeling numerical data consisting of values of a dependent variable or responsevariable of one or more independent variables are used. Secondly, telephonic conversations weremade with those respondents who either did not respond or provided incomplete response. Inmost of these cases the reason for lack of response was low confidence level of participation(Rajagopal, 2009). A second test for Non response bias examined the differences between earlyand late respondents on the same set of factors (Armstrong, Overton 1977) & this assessmentalso yielded no significant differences between early and late respondents.
  • Data AnalysisThrough this research, we found that the success of a brand through celebrity endorsement is acumulative of the following 20 attributes which were presented in the questionnaire as selectioncriteria. While analyzing the major factors that should be kept in mind while selecting an endorser,the following results came out from the research:With the increasing complexity of global business, clear and structured decision criteria isrequired for managing the celebrity endorsement strategy. The US has a popular index, called theQ score, that summarises various perceptions and feelings that consumers have in the form oflikeability measurements. The index could be based on a rating that takes into account agreedparameters/attributes, past-present media coverage/favourability and relevance, ground situationin terms of successful/unsuccessful seasons/tenures, future prospects, etc. The closest thing tothis that exists today in more advanced manner is the Davie-Brown Index, developed by Davie-Brown Entertainment and i-think Inc. This index evaluates the worth of celebrities through asystematic and controlled method that resembles financial brand valuation and forecasting.The Davie-Brown Index uses eight criteria in its evaluation: 1. Appeal 2. Notice 3. Trend setting 4. Influence 5. Trust
  • 6. Endorsement 7. Aspiration 8. Awareness The Top Rated New York Celebrities Overall Name Rank Appeal Influence Trust Micheal J Fox 4 87.3 76 75.9 Tom Brokaw 14 80.3 75 73.5 Whoopi Goldberg 21 75.3 66.1 63.7 Drew Barrymore 27 78.6 69 63.9 Robert De Niro 29 84.3 71.8 68.2 Paul Newman 70 84.5 70.9 73.7 Donald Trump 103 55.5 65.1 53.5 Martha Stewart 118 55.5 60.2 46.7 Chris Rock 159 75.1 69.9 60.6 Katie Couric 192 71.4 67.6 63.9(From http://nymag.com/)ICM Research interviewed a random sample of 1,000 adults aged 18+ by telephone on February22-24th, 2002. Interviews were conducted across the country and the results have been weightedto the profile of all adults. A third (32%) of those surveyed by ICM say that celebrity endorsementmakes them feel more positive towards retailers. This rises to 59% among 18-24 year olds whilethose aged 65+ are less moved at 9%. However, one in five (22%) say that it makes them feelless positive (rising to 32% among 65+s). % of age groups that w atch online/mobile video once a w eek or more 40% 30% 20% 10% 0% 16-20 25-34 35-44 45-54 55-64 65+ Source:BBC/ICMAccording to NPD Group Research, less than 1% of images consumers see daily (30 of 3,156)reach conscious behavior. Thus celebrity endorsement has become a popular approach in the
  • branding process both in terms of gaining and keeping attention and in creating favorableassociations leading to positive brand knowledge and distinct brand images.As statistical proof, Nike golf balls, since the company signed Tiger Woods in 1996, have seen a$ 50 million revenue growth. Nikes golf line grossed more than $ 250 million in annual sales. In2000, he re-negotiated a five-year contract estimated at $ 125 million. The Jamie Oliver deal withSainsbury was said to have resulted in an extra £1 billion in sales. Gary Lineker and assortedcelebrity chums pushed Walkers Crisps profits up by 105%. Indian Titan Watches used anotherleading Bollywood icon Amir Khan to endorse the brand. The campaign helped Titan achieve agrowth of 45% in volume sales and 52% in value. According to Pooja Jain, Director, Luxor WritingInstruments Ltd. (LWIL), post-Bachchan Parkers sales have increased by about 30 per cent.Lord Sharman, chairman of Aviva, defended the move arguing that the companys brandawareness had grown from 35% to 80% as a result of the TV ads, created by Abbott MeadVickers, feature celebrities who changed their names before becoming internationally recognized.Microsoft armed with extensive advertiser and publisher portfolio, BAT conducted a study wheread campaigns featuring (video and still) images of athletes were tested against the same ads withno endorsement, the study found:  A 180% increase in unaided brand awareness, highlighting the ability of endorsement ads to fundamentally "register" with consumers;  A 56% improvement in message association, where participants correctly absorbed the attributes of tested products and services;  A 39% improvement in brand favorability, demonstrating how positive associations about an athlete carry over to brands;  A 27% increase in purchase intent, a measure that speaks to brand and behavior goals.
  • 200 180 180 160 140 120 % of 100 Increment 80 56 60 39 40 27 20 0 Brand Brand Brand Purchase Intent Aw areness Association Favourability Impact Area"In 2001, 25% of all advertising dollars were spent on ads carrying celebrities. In 2008, thatpercentage has gone up to 60% of all ad dollars spent," exclaims Percepts Porwal.There has been a 49% growth in celebrity endorsement advertising volumes on just TV during theyear 2007 as compared to the previous year. There were in total 745 celebrity endorsements in2007 as against 499 in 2006. Today, the celebrity endorsement industry is worth INRs.550 croreand is growing at high double digit growth rate ranging between 60- 80%.Experts predict the growth rate to touch even triple digits, soon. Sanjeev De, agency head,Saatchi & Saatchi Delhi, also expresses his need for statistics in this regard as, "There is a greatdeal of science involved in picking-up a brand ambassador and it cannot function without that."A typical super-market in USA displays more than 12000 brands, an American family has at leastone television set and a consumer is exposed to around 1000 ads per day. Likewise, there arearound 130 television channels in India broadcasting over 3 million television commercials eachyear in India. The media-explosion can thus be easily demonstrated. More over, people forget80% of the information in just 24 hours! Just imagine the plight of the marketer to make his brandshout over the deafening clutter of all the brands! Some where in the 80s, Indian marketers foundthe solution, Celebrity Endorsement for the brand! (Sanyukta A. Kulkarni Sahir U. Gaulkar, 2005-07).
  • Major FindingsAt the theoretical level, the research finds that the celebrity endorsement strategy has become animportant component of marketing communications strategy for firms in today’s competitiveenvironment. For practitioners, the findings highlight some of ‘dos and don’ts’ of celebrityendorsement strategy. In a way, these findings provide guidelines for managers planning to utilizeand execute celebrity-based campaigns.Through analysis and research, the following factors are revealed: -  The celebrities acceptability, availability, regional appeal factors, popularity, attractiveness, image, belief system are some other important factors on the impact of celebrity endorsement on brands.  The customer wants a variety of aspects from the endorsement like the credibility and acceptability of the endorser.  Multiple endorsements create cluttering the minds of the consumer.  In case of multiple endorsements by a celebrity, the success of celebrity endorsement for a particular brand depends entirely on the power of the brand.  Apart from financial gains from the endorsements, brand and own image matching is also vital from celebrity’s point of view.  Professional & planned performance of the endorser is important in deciding the success of the endorsement.  Association of the celebrity with a controversy or ill-behavior can cause negative impact to the endorsements.  A celebrity endorsement is useful in the Indian scenario. The amount of impact of the effect varies with the celebrity and the product profile.Celebrity endorsements cannot replace the comprehensive brand building processes.Through research and analysis, this paper emerges with a 20-point model which can be used asblue-print criteria and can be used by brand managers for selecting celebrities, and capitalizesthe celebrity resource through 360 degree brand communication since our research proposes itas the foundation brick of the impact of celebrity endorsement. Our study reveals that the impactof celebrity endorsement is proportional to the 20 factors discussed in the model. This analysis isbased on the model prescribed by Neha Taleja (2005) and Infilmarena.
  • Celebrity- Celebrity- Celebrity Celebrity Celebrity Product Target Popularity Credibility Values Match Audience Celebrity Celebrity Controversy Physical Attractiveness Risk Celebrity Multiple Regional & Endorsement s international Fit with the Costs of Celebrity Endorsement Model Advertising Acquiring the Celebrity Idea Celebrity Celebrity Availability should be Brand User Consumer Previous Influencing Endorsement Advertisemen s Proper use of Brand Image Endorsement Unique Idea Interest of promotional Formation management of promotion endorser Medium capability team 20 Attributes of effective celebrity endorsement1. Celebrity-Product MatchThe match-up hypothesis proposes positive effects of a congruent association between acelebrity and a product being promoted (Kahle and Homer 1985) & posits that the level ofcelebrity/product congruence will influence celebrity endorsement effectiveness through (1) theprocess of consumer attributions of the celebritys motive for associating him or herself with theparticular product and (2) the subsequent effects of these attributions on the consumerevaluations of the endorser, the ad and the brand involved in the endorsements. Cyrus Broachais the brand ambassador for MTV since both the celebrity and the brand are considered asfriendly, young, mood-boosting, humourous and outspoken. MTVs brand personality overlapsCyrus Broachas image as a brand.2. Celebrity-Target Audience MatchCelebrity is the mouthpiece for a brand in communicating messages to target audiences rathermore effectively than any other voice (Zafer, Baker, 1999). The personalities of celebrities arevery strong and they can rapidly change perceptions of a brand. Endorsers who havedemographic characteristics similar to those of the target audience are viewed more viable and
  • persuasive (kamins, 1994). Indian TV star Smriti Irani endorsing the WHO recommended ORSCampaign in India. Indian mothers can associate with Smriti Irani through the facets she projectson screen or in regular life which helps develop a connect with the target audience since mothersmedicate their children with ORS. The basis for the effectiveness of celebrity-endorsedadvertising can be linked to Kelmans processes of social influence as discussed by Friedmanand Friedman:Compliance infers that another individual or group of individuals influences an individual causehe or she hopes to achieve a favorable reaction from this other group.Identification applies to the situation wherein the individuals emulate the attitudes or behavior ofanother person or group, simply because they aspire to be like that person or group.Internalization as a process of social influence is said to occur when individuals adopt theattitude or behavior of another person because that behavior is viewed as honest and sincere andis congruent with their value system. Celebrities are well-liked, but the techniques that can beused to enhance their credibility as spokespeople, and therefore, tie-in more closely with theinternalization process needs to be looked into.3. Celebrity PopularityEmpirical finding support the fact that celebrities have positive effect on both attitude toward adand brand (Ohanian, 1990). These results are in favor of celebrity endorsers because they arewidely recognized, are perceived to be more credible and produce greater influence on evaluationof brand and its purchase intentions (Cohoi and Rifon, 2007; Atkin and Blok, 1983; Ohanian,1990; Ohanian, 1991). The lifecycle of celebrity popularity varies a lot. People tend tocommensurate the personalities of the celebrity with the brand thereby increasing the recall valueCelebrity. Brand association like Garnier endorsed Tara Sharma & Simone Singh, Agni Diamonds& Riama Sen dont get much brand recall. On the other hand, HPCL has had increased popularityand share of voice due to the endorsement of the brand through Tennis star Sania Mirza..4. Celebrity CredibilityThe most important aspect of celebrity endorsement is credibility. In a research carried out byInfilmarena, a brand and advertisement group, among 43 ad agencies and companies, mostexperts believed that the most important dimensions of credibility are trustworthiness andprowess or expertise with regard to the recommended product or service (Miciak and Shanklin,2002). The credibility components are interconnected with other traits of the celebrity and theimage dimension which reflects good qualities e.g. pleasant, wise, educated etc. produce sincere
  • and positive perception of the celebrity in consumer minds (Choi & Rifon, 2007). Credibility is themost important criteria in choosing a celebrity endorser by the firm which is followed by familiarityand likeability and at last we have gender, and in credibility expertise is the most important piecewhich is followed by trustworthiness and than attractiveness (Knott & James, 2004). Thecelebrities that were perceived as having constant media coverage are trusted more than thecelebrities who are not in the constant spotlight (Friedman, Santeramo, & Traina, 1978). To siteone of the most successful campaigns in which the celebritys credibility has had an indelibleimpact on the brand and has saved the brand is of Cadburys. After the worm controversy,Amitabh Bachchans credibility infused into the brand through the campaign, helping it to get backon track. Research conducted by social psychologists over the past 30 years demonstrates that asource perceived as highly credible is more persuasive than a low credibility sender (Hovland andWeiss, 1951; McGuire, 1969; Hass, 1981). The sources that companies use to present theiradvertising message typically attempt to project a credible image in terms of competence,trustworthiness or dynamism.5. Celebrity ValuesCelebrity branding is all about the transfer of the value from the person to the product heendorses or stands for. There are two concerns here. The first is how long this could last. Can theperson maintain his popularity? Another concern is his private life - personal integrity. If he isimplicated in any kind of scandal, that would ruin the brand. "Who would want to use MichaelJackson to brand their product?" (brandchannel.com). Amitabh Bachchan & Shahrukh Khancampaigning for Pulse Polio or Aishwarya Rai appearing in the Donate Eyes campaign are fewexamples, which reflect the transfer of celebrity values to the brand, creating an impact thatgenerates recall.6. Celebrity Physical AttractivenessPhysical attractiveness of the endorser may be central in context with change in attitude of thecustomer (Kahle & Homer 1985). The celebrity endorsements based on the attractiveness of theendorser most of the time produces positive effect on consumers. In general attractive endorsersare more effective promoters than unattractive endorsers (Till & Busler, 1998). The targetaudience is more familiar to the attractive celebrities and these celebrities are more likable(Miciak & Shanklin, 1994). Most advertisements use attractive celebrities and the consumers areaccustomed to see pretty people in ads that is why the physical attractiveness andtrustworthiness of a celebrity were not significantly related to the purchase intentions but theexpertise is (Ohanian, 1991). Involvement enhances the recall of the product and it alsoenhances the recall of the brand (Petty & Cacioppo, 1980). There is a strong effect of celebrity
  • attractiveness as well as interaction of likeability, involvement, and sex on the recall of theproduct.7. Celebrity Regional & international Appeal FactorsIn a market with a very high proliferation of local, regional and international brands, celebrityendorsement was thought to provide a distinct differentiation. While selecting an endorser itsregional effect always comes into play. Where as while going global, the celebrities should bechosen in such a way that can create a global overall impact. In this respect, a planning directorbelieved that celebrities with international recognition were more valuable internationally thannationally as the need for instant shorthand is greater in the international arena. For example,Jack Dee and John Smith’s no nonsense straight-talking pint of beer campaign would not makesense in countries where Jack Dee is not known due to the fact that Jack Dee would be seen asan ordinary consumer. Developing international campaigns was deemed to be a difficult taskbecause of cultural differences. An interesting example would be of Steve Waugh campaigningfor Tourism Australia in India since he was one of the popular celebrities from Australia.and couldcarry the messge of Australia as a tourist destination. Other celebrities like Kylie Minogue,8. Celebrity Controversy RiskAssociation of the celebrity with a controversy or ill-behavior can cause negative impact to theendorsements. Any act on the part of the endorser that gives him a negative image among theaudience and goes on to affect the brands endorsed. The brand, in most instances, takes abashing. Siyaram Silk Mills Ltd. (Siyaram), one of Indias leading textile companies, was alsoaffected badly by South African Cricket Captain Hansie Cronje match fixing controversy. AnnGreen (2009), senior vice president at Millward Brown, said, "In the past few years, we have seena slight decline in the use of celebrity endorsements and that is in part due to the risk associatedas well as the necessary investment."9. Multiple EndorsementsThe case of multiple endorsements, both in terms of a single brand hiring multiple celebrities andthat of a single celebrity endorsing multiple brands, is often debated. At times, consumers do getconfused about the brand endorsed when a single celebrity endorses numerous brands. Therecall then gets reduced and reduces the popularity of the brand. For example, in case of SachinTendulkar people recall Pepsi, TVS Victor and MRF, but might not remember brands likeBritannia and Fiat. Thus, for multiple endorsements where the same celebrity endorses severalbrands, it boils down to the strength of the brand and the advertising content. As per Zafer &
  • Baker, Using multiple celebrities or a single celebrity partially depends on the time scale acampaign is using to have impact.10. Costs of Acquiring the CelebrityCompanies must have deep pockets to be able to afford the best available celebrities. Recently, anewspaper report showed how cola firms had gone beyond their advertising budgets to get thebest celebrities. Small firms that use celebrities services run greater risks if they invest largeamounts. Although nobody is willing to say exactly how much celebrities get paid, industrysources say Indian cricketer Sachin Tendulkars price is believed to be between Rs. 2.0-2.5 croreper endorsement, and Oscar winning musician A. R. Rehman, who had signed up with AirTel, isbelieved to have picked up Rs. 1.75 crore.11. Fit with the Advertising IdeaMarketers now seek to adopt 360 degree brand stewardship in which the brand sees no limits onthe number of contact points possible with a target consumer. Advertising ideas, thus, revolvearound this approach, and the celebrity endorsement decisions are made through these strategicmotives. One of the most successful celebrity endorsement campaign which reflects the fitbetween the brand and the 360 degree advertising fit is Richard Geres recent endorsement forVISA in India has gained acclaim due to its innovativeness and consumer connect. Brandmarketers say that research reveals that Richard Gere was the most popular face across the AsiaPacific region, and would also fit into the persona of the brand meeting their communicationobjective to enhance VISAs brand leadership and consumer preference, and the motive tocontinue the "All it Takes" empowerment platform featuring international celebrities. Celebrities dohave some common characteristics which include their recognition, their status or their popularitybut each celebrity may have his or her own unique image or cultural meaning which has beenidentified by McCracken (1989).12. Celebrity AvailabilityDue to multiple endorsements by certain celebrities, brands refuse to adopt celebrityendorsement since they fear dilution of the brand image. So, prior to the endorsement, availabilityshould be judged.13. Celebrity should be Brand UserTo make an endorsement successful, the customer should believe in the endorsement. If theendorser using a brand and promoting a different brand in the advertisement, may create a
  • nonsense image to the customer. One of the most successful campaigns has been executed byPETA in which celebrities like Shilpa Shetty, Amisha Patel, Yana Gupta, Sheetal Malhar, Mahimaclaimed to believe in PETAs philosophy, and thereby endorse the brand. On the other hand,while some would understand that Amitabh Bachchan would have never used Navratan Tel.Britney Spears who endorsed one cola brand and was repeatedly caught drinking another brandof cola on tape.14. Consumer Influencing AdvertisementThe advertisement also should be well made and designed to portray the actual image of thebrand and to convey the message intended to transfer to target audience. The director of the ad-film should be well chosen and the endorser should be a good actor. Generally, workshops arearranged to train the endorser to act as desired by the director. Sometimes due to poorperformance in the advertisement, the promotion attempt fails although the celebrity was perfectfor the brand.15. Previous EndorsementsWhile endorsing a celebrity, his/her prior endorsements should be monitored carefully. This willhelp in analyzing celebrity’s dedication, professionalism and credibility as well as will help inevaluating the impact. Endorser campaigning for the similar line of products should not beendorsed. Even for an endorsing brand, its prior engagements with same or different celebritiesshould be kept in mind.16. Proper use of promotional MediumThe most preferred medium for celebrity endorsement strategy was television although usingseveral media was seen as an effective way to get good return on investment since celebrity feesare usually high. Using multiple celebrities or a single celebrity depends on the time period overwhich a campaign is planned to have impact, campaign budget, and variance in target audiencecharacteristics. Other medium like radio, hoarding, poster, news paper etc can also be used topromote the advertisement. While using audio medium, the celebrity voice should be well known.If Indian Cine star Amitabh Bachchan promotes something on air, most of the Indian can identifywhere as very few can identify the voice of Indian soccer captain Bhaichung Bhutia if he isendorsed for the same.
  • 17. Brand Image Formation capabilityBoth theoretical and empirical research on the subject clearly indicates that celebrity productendorsement is a form of co-branding, which influences brand image through meaning transferfrom the endorser to the endorsed brand. Celebrity-product congruence has a positive impact onbrand image, which in turn has a positive impact on brand equity. Baran and Blasko (1984)explained, "Since most products arent special, most advertising does all that so-called imagestuff... Theres no information about the product, theres only information about the kind of peoplewho might be inclined to use the product." (p.13). This view is echoed by Feldwick (1991) whohas suggested that the subjective experience of using a brand can be different from thesubjective experience of using an identical product without the brand reassurance. In the case ofusing celebrity advertising to build brand image, the effects are examined with a socialpsychological framework.18. Interest of endorserAn endorsement became most successful when the endorser is also interested in the associationwith the brand not only for financial benefit, but also for his/her own image building also. Severalcelebrities have ventured into the fashion and accessories businesses and more are on the way.Jennifer Lopez, Sean Combs, and Jessica Simpson all have clothing lines; Victoria Beckhamdesigns jeans; Elizabeth Hurley has launched a swimwear brand while Kylie Minogue already hasa flourishing lingerie brand, called Love Kylie. In addition, the list of celebrities that have launchedperfumes named after them is steadily increasing: Jennifer Lopez, Britney Spears, Paris Hilton,Celine Dion, Mary-Kate and Ashley Olsen, Cindy Crawford, etc. Major stars do not really work forthe endorsement fee, but are motivated by genuine affection for the product (Kamen et al, 1975).19. Endorsement management teamGlobal brand endorsements demand a global brand management team. This regional andinternational organization is in place to maintain brand leadership through proper effectivecelebrity endorsements. Companies with large brand portfolios tend to have separate managersfor each brand and its promotion. Regardless, global brand managers have the authority andresources necessary to implement key decisions based on performance measurement. Thebrand management team reports to a senior executive officer of the company.
  • 20. Unique Idea of promotionGreat brand endorsement represents great ideas at right time. These brands express theuniqueness of position to all internal and external audiences. They effectively utilize all elementsin the communications mix to position themselves within and across international markets. Applehas creatively addressed its marketing mix while ensuring its people embody its most ownableand beneficial brand attribute: innovation. The innovative advertisement planning, promoting,selection of animation, identification of media – all contribute to the success of the celebrityendorsements.Management ValueBusinesses have long sought to distract and attract the attention of potential customers that livein a world of ever-increasing commercial bombardment. Everyday consumers are exposed tothousands of voices and images in magazines, newspapers, and on billboards, websites, radioand television. Celebrity endorsements give a brand a touch of glamour and the hope that afamous face will provide added appeal and name recognition in a crowded market. In the battlefor the mind, you get the customer excited by showing him a known face, and an effectivedemand is created. In short it helps increase the recall value of the brand. A piece of researchstates that the Indian target audience age group of 15-30 gets influenced first by cricketers, thenBollywood stars and only then music, festivals and food (Hindu Business Line, 2003). D. Garg,Vice-President (Marketing), Dabur India Ltd quotes, "A celebrity does help in increasing brandsales, but only if he/she is selected carefully and used effectively. The personality of the brandand the celebrity have to complement each other and the selection of the celebrity is, therefore,very important." As statistical proof, Nike golf balls, since the company signed Tiger Woods in1996, have seen a $ 50 million revenue growth. Nikes golf line grossed more than $ 250 millionin annual sales. In 2000, he re-negotiated a five-year contract estimated at $ 125 million. So, itcan be concluded that celebrity endorsement is recognized as a potentially potent tool inbusiness communications, with celebrities viewed as more powerful than anonymous models andcampaigns tending to verbalize the meaning of the celebrity in relation to the brand (BrianMoeran, 2003).
  • Limitation of the studyThis Study is conducted in India and all the questionnaire based analysis that is done are all fromIndian professionals. This research was exploratory and had a relatively small sample size; thereis a need for confirmatory research with a larger sample testing hypotheses derived from thefindings presented in this paper. Another limitation of research is that our findings for non-aspirational celebrities are not significant. Another primary limitation is related to thegeneralization of the research results. Most important generalization issue is related to sample.Scope for future workThe study was exploratory in nature and suffered from certain constraints and limitations such asgeographic limitation (mainly Indian scenarios are taken into account), strategic brandmanagement taken in a limited sense (i.e., limited discussion on financial aspect) and neglectinge-marketing/branding aspect. Nevertheless, the above study leaves an immense scope forcarrying out further research in the following areas:  To carry out similar study from the advertiser’ perspective and comparing that with the customers’ perspective  To establish a more definite correlation between celebrity impact on brand equity and relation with customers psychology.  To carry out study on other possible aspect of endorsements.  To carry out studies in other geographic areas i.e., in other nations and include all possible industries to find out whether there is any significant difference in the impact on the customers who are geographically separated.  To carry out more detailed study and statistical research on the overall brand equity building mechanism with the help of celebrity endorsement
  • ConclusionAdvertising is seen as playing a manipulative and merciless role in the emerging brandscape,seeking to transform customers into the personification of brand identity. Keller emphasizes theneed for a structured approach based on sound research in order to manage brands strategicallyand to generate optimum value both in terms of asset valuation and marketing efficiency. Toachieve this effectively, value for the brand has to be created and managers must have theknowledge and expertise to exploit this value by developing profitable brand strategies. Overallresearch points to accumulated positive influence over the audiences recall and purchaseintentions, with celebrities deemed more effective than using a typical consumer or expert.Successful celebrity/brand partnerships have resulted in significant gains in income for brandowners. The micro factors such as the need for interactivity, the degree of control exercised byconsumers over messages received and increasing media fragmentation render celebrityendorsement a valid strategy. Careful management of brand image that impacts on brandassociations stored in consumer memory is critical to a successful strategy. This study shows thatconsumers report higher self-brand connections for brands with images that are consistent withthe image of a celebrity that they aspire to be like, particularly in the case when the image of thecelebrity and the brand match. Study also examines how self-brand connections are formed.Celebrity endorsement effects are moderated by brand symbolism, such that brands thatcommunicate something about the user yield stronger effects than brands that do not. In the caseof aspirational celebrities, the positive effect of image congruency is stronger for those brandsthat are perceived to communicate something symbolic about the brand’s user compared to thosebrands that do not. This finding is an important demonstration that consumers are motivated bytheir self-needs to utilize brand associations derived from celebrity endorsement in a contingentfashion to construct and present their self-identities.
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