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term paper of reserch on celebrity endorsement

term paper of reserch on celebrity endorsement

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  • 1. Introduction Celebrity endorsement has become an essential part of today’s advertisement world.Every big brand is using celebrities to promote their brands. This paper is the analysis of effect of celebrity endorsement on the purchase behavior of consumers. This study is carried out on 50 respondents from different courses in lovely professional university. Review of literature 1.Factors predicting the effectiveness of celebrity endorsement advertisements Summary This research examines whether consumers infer that celebrity endorsers like the products they endorse, and presents a model using these inferences and other characteristics of the endorser to predict attitudes toward the endorsed product. 2.Celebrity performance and endorsement value: the case of Tiger Woods summary: An interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woods’s tournament performance on the endorsing firm’s value subsequent to the contract signing. We do not find a relationship between Tiger’ss tournament placement and the excess returns of Fortune Brands (parent of Titleist). 3.The equity effect of product endorsement by celebrities: A conceptual framework from a co-branding perspective Summary: The purpose of this study is to outline a conceptual framework that can be used to organise and guide future research into how celebrity product endorsement creates equity for both the endorsed product-brand and the endorsing celebrity. The central thesis is that both endorser image and brand image serve as mediators in the equity-creation process of celebrity product endorsement.
  • 2. 1. http://www.emeraldinsight.com/10.1108/03090560410560218 2. http://www.emeraldinsight.com/10.1108/03074350010766756 3. http://www.emeraldinsight.com/10.1108/03090560710718148 4.The naked truth of celebrity endorsement Summary: This case study examines the use of celebrity endorsement in the formation of the retail image of leading European grocery distribution group J. Sainsbury, in particular, the process of transference of celebrity images to the product’s image. The incorporation of Jamie Oliver (well known as television celebrity The Naked Chef) into the promotions of one of Britain’s leading grocery chains involves a high profile campaign that has been adopted in order to imbue the company’s products with an image of quality. The success of the campaign has been replicated in New Zealand by another grocery retail “giant”, Foodstuffs, who have also adopted The Naked Chef to endorse their products. The case draws on field research with consumers and key informant interviews with advertising agency personnel who identified the criterion for the choice of Jamie Oliver. The extent to which the market place recognises and consumers associate themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored. 5.Celebrity Endorsement in Food - UK This report assesses celebrity endorsement of food since the last Mintel report was published in January 2005. Over the last three years increased media coverage of food and cookery has propelled celebrity chefs into the limelight. At the same time issues such as healthy eating, organic and free-range production values have come to the fore. The result is a much more complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of food products, celebrities have become crusaders for the food sector, challenging consumers to think before they eat and resulting in significant changes in purchasing behaviour. .6.How sports celebrity endorsements affect a company's branding The effect of sports celebrity endorsements on a company's branding can not be underestimated. Usually the effect is positive however at times it can backfire and cause an undesired outcome. Throughout the past chundred and twenty five years or so we have seen sports and business
  • 3. intertwined in the advertising world and the relationship grows stronger every year elevating both brand and athlete to levels of public conciousness neither would likely realize on their own. 4. http://www.emeraldinsight.com/10.1108/00070700310477086 5. http://www.just-food.com/store/product.aspx?id=64297 6. http://www.helium.com/items/1142527-how-sports-celebrity-endorsements-affect-a-companys- branding?page=2 7. Celebrity Endorsement: Advertising Agency Managers’ Perspective This paper has explored on advertising agency managers’ point of view regarding celebrity endorsement strategy. Findings revealed that managers see media clutter as the biggest challenge for marketing communications practitioners nowadays and utilise a celebrity endorsement strategy to overcome this challenge. A celebrity campaign to bring desirable campaign results must support a good idea and there must be an explicit fit between celebrities and brands. While deciding on a particular celebrity, a range of criteria are reported to be taken into account and these criteria’s importance was communicated to be very similar in the UK, but it would differ across countries mainly because of cultural differences. 8.Celebrity Endorsement in Food - UK - April 2008 This report assesses celebrity endorsement of food since the last Mintel report was published in January 2005. Over the last three years increased media coverage of food and cookery has propelled celebrity chefs into the limelight. At the same time issues such as healthy eating, organic and free-range production values have come to the fore. The result is a much more complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of food products, celebrities have become crusaders for the food sector, challenging consumers to think before they eat and resulting in significant changes in purchasing behaviour. 9.Celebrity Endorsements It is estimated that companies in the U.S. spent $800 million in 1998 to“acquire talent — entertainers, athletes and other high profile personalities —to spotlight in advertising, promotion and PR campaigns” (IEG Endorsement Insider) Approximately 20% of all television commercials feature famous people. Why do ads for some products feature celebrity endorsements while ads for others do not? To answer this question, we develop a coordination model of advertising in which firms choose both advertising levels and advertising format — ads with celebrity endorsements or ads without. We show that the equilibrium formats are either ones that reach large audiences at low cost or that
  • 4. coordinate well. The former provides a cost-based explanation for celebrity endorsements that is consistent with experimental evidence showing that celebrities enhance product recall. The latter provides an explanation for celebrity endorsements consitent with evidence that they enhance consumer perception of product value. For this latter case, we show that celebrity endorsements are chosen for products that i) have large potential customer pools, ii) provide large coordination returns to consumers or iii) require coordination across diverse sets of customers. Our analysis also provides an explanation for the use of “fictional” celebrities like Joe Camel. http://fulltext.ausport.gov.au/fulltext/1999/cjsm/v3n3/erdogan&baker33.htm http://academic.mintel.com/sinatra/oxygen/display/id=319432 www.rotman.utoronto.ca/ihorstmann/JEMS.2005-07-07.clark.pdf Research design: In this research we used exploratory design. Exploration is a particularly useful when researchers lack a clear idea of the problems they will meet during the study. Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions and improve the final research design. Exploration may also save time and money. Sampling design: in this research we used convenience sampling. Non probability samplings that are unrestricted are known as convenience sampling. They are the least reliable design but normally the cheapest and the easiest to conduct. Researchers or field workers have the freedom to choose whomever they find , thus the name convenience .
  • 5. Analysis 1: This is the analysis of no. of consumers who watch advertisement. Statistics Do you watch advertisement N Valid 50 Missing 0 Mean 1.00 Median 1.00 Mode 1 Std. Deviation .000 Do you watch advertisement Cumulative Frequency Percent Valid Percent Percent Valid 'yes' 50 100.0 100.0 100.0 Do you watch advertisement 'yes' DATA findigs: 100% of respondents said that they watch advertisements.
  • 6. Inference : All the respondents say that they watch advertisements. 2.This is the analysis of response of consumers on celebrity endorsement in advertisements Statistics Do you think that celebrity is required in an advertisement N Valid 50 Missing 0 Mean 1.20 Median 1.00 Mode 1 Std. Deviation .404 Do you think that celebrity is required in an advertisement Cumulative Frequency Percent Valid Percent Percent Valid 'yes' 40 80.0 80.0 80.0 no 10 20.0 20.0 100.0 Total 50 100.0 100.0 Do you think that celebrity is required in an advertisement 'yes' no __
  • 7. Data findings: 80% respondents says that celebrity endorsement is required for advertisements. Inferences: Majority of respondents says that celebrity endorsement is required for advertisements. 3. This is the analysis of choice of celebrity on the basis of gender. Statistics Is your favorlte celebrity is male or female N Valid 50 Missing 0 Mean 1.58 Median 2.00 Mode 2 Std. Deviation .499 Is your favorlte celebrity is male or female Cumulative Frequency Percent Valid Percent Percent Valid 'male' 21 42.0 42.0 42.0 female 29 58.0 58.0 100.0 Total 50 100.0 100.0 Is your favorlte celebrity is male or female 'male' female
  • 8. Data findings: 58% of respondents says that they like female celebrities in advertisements. Inferences: Majority of respondents favor female celebrity endorsement on the place of male celebrity. 5. This is the analysis of behavior of respondents for the uses of product due to celebrity endorsement. Statistics Do you keep using a brand only because of the endorsing celebrity N Valid 50 Missing 0 Mean 1.76 Median 2.00 Mode 2 Std. Deviation .431 Do you keep using a brand only because of the endorsing celebrity Cumulative Frequency Percent Valid Percent Percent Valid 'yes' 12 24.0 24.0 24.0 no 38 76.0 76.0 100.0 Total 50 100.0 100.0 Statistics Do you keep using a brand only because of the endorsing celebrity 'yes' no __
  • 9. Data findings: 76% respondents said that they are not using a brand only because of endorsing celebrity Inferences: majority of respondent use brands only according to their choice noy because of celebrity endorsement in it. 6. This is the analysis of respondent’s preference while purchasing any brand Statistics what makes you notice a brand N Valid 50 Missing 0 Mean 1.48 Median 1.00 Mode 1 Std. Deviation 1.035 what makes you notice a brand Cumulative Frequency Percent Valid Percent Percent Valid 'quality' 39 78.0 78.0 78.0 advertisement 3 6.0 6.0 84.0 endorsing celbrity 5 10.0 10.0 94.0 price 1 2.0 2.0 96.0 other 2 4.0 4.0 100.0 Total 50 100.0 100.0
  • 10. what makes you notice a brand 'quality' advertisement endorsing celbrity price other __ Data findings; 78% respondents said that the give more value to the quality before purchasing any particular brand. While 2% respondents give price as more important factor than any other while purchasing any brand. Inferences: Majority of respondents give preference to the quality of product of brands while purchasing.
  • 11. 7. This is the analysis of consumer buying behavior due to celebrity endorsement. Statistics celebrity celebrity celebrity endorsem celebrity celebrity endorsem endorsem ent is celebrity celebrity celebrity endorsem endorsem ent is ent essential endorsem endorsem endorseme ent ent essential increases for product ent ent alters nt attracts increases decreases for the or service celebrity increases the buying individuals your the risk success of trustworth promotion endorsem the behaviour attention probability related to product eness of in the this ent credibilty of a towards to go and the and the competitve increases of the person in the product purchase product or services in product or market the brand product or a positive or services a product service the market services place recall services way advertised Valid 50 50 50 50 50 50 50 50 50 Missing 0 0 0 0 0 0 0 0 0 Mean 2.40 2.58 2.46 2.48 2.36 2.48 2.46 2.32 2.20 Median 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Mode 2 2 2 2 2 2 2 2 2 Std. Deviation .969 .992 .952 .886 .942 .953 .952 .819 1.050 celebrity endorsement increases your probability to go and purchase a product Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 5 10.0 10.0 10.0 agree 29 58.0 58.0 68.0 neutral 10 20.0 20.0 88.0 disagree 3 6.0 6.0 94.0 strongly disagree 3 6.0 6.0 100.0 Total 50 100.0 100.0 celebrity endorsement decreases the risk related to the product or service Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 4 8.0 8.0 8.0 agree 24 48.0 48.0 56.0 neutral 14 28.0 28.0 84.0 disagree 5 10.0 10.0 94.0 strongly disagree 3 6.0 6.0 100.0 Total 50 100.0 100.0
  • 12. celebrity endorsement is essential for success of product and services in the market Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 6 12.0 12.0 12.0 agree 24 48.0 48.0 60.0 neutral 12 24.0 24.0 84.0 disagre 7 14.0 14.0 98.0 strongly disagree 1 2.0 2.0 100.0 Total 50 100.0 100.0 celebrity endorsement increases the trustwortheness of the product or services Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 3 6.0 6.0 6.0 agree 28 56.0 56.0 62.0 neutral 13 26.0 26.0 88.0 disagree 4 8.0 8.0 96.0 strongly disagree 2 4.0 4.0 100.0 Total 50 100.0 100.0 celebrity endorsement is essential for product or service promotion in the this competitve market place Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 7 14.0 14.0 14.0 agree 25 50.0 50.0 64.0 neutral 13 26.0 26.0 90.0 disagree 3 6.0 6.0 96.0 strongly disagree 2 4.0 4.0 100.0 Total 50 100.0 100.0 celebrity endorsement increases the brand recall Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 6 12.0 12.0 12.0 agree 22 44.0 44.0 56.0 neutral 16 32.0 32.0 88.0 disagree 4 8.0 8.0 96.0 strongly disagree 2 4.0 4.0 100.0 Total 50 100.0 100.0 celebrity endorsement increases the credibilty of the product or services
  • 13. Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 3 6.0 6.0 6.0 agree 31 62.0 62.0 68.0 neutral 9 18.0 18.0 86.0 disagree 4 8.0 8.0 94.0 strongly disagree 3 6.0 6.0 100.0 Total 50 100.0 100.0 celebrity endorsement alters the buying behaviour of a person in a positive way Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 5 10.0 10.0 10.0 agree 29 58.0 58.0 68.0 neutral 12 24.0 24.0 92.0 disagree 3 6.0 6.0 98.0 strongly disagree 1 2.0 2.0 100.0 Total 50 100.0 100.0 celebrity endorsement attracts individuals attention towards the product or services advertised Cumulative Frequency Percent Valid Percent Percent Valid 'strongly agree' 13 26.0 26.0 26.0 agree 22 44.0 44.0 70.0 neutral 9 18.0 18.0 88.0 disagree 4 8.0 8.0 96.0 strongly disagree 2 4.0 4.0 100.0 Total 50 100.0 100.0
  • 14. celebrity endorsement increases your probability to go and purchase a product 'strongly agree' agree neutral disagree strongly disagree __ celebrity endorsement decreases the risk related to the product or service 'strongly agree' agree neutral disagree strongly disagree __
  • 15. celebrity endorsement is essential for success of product and services in the market 'strongly agree' agree neutral disagre strongly disagree __ celebrity endorsement increases the trustwortheness of the product or services 'strongly agree' agree neutral disagree strongly disagree __
  • 16. celebrity endorsement is essential for product or service promotion in the this competitve market place 'strongly agree' agree neutral disagree strongly disagree __ celebrity endorsement increases the brand recall 'strongly agree' agree neutral disagree strongly disagree __
  • 17. celebrity endorsement increases the credibilty of the product or services 'strongly agree' agree neutral disagree strongly disagree __ celebrity endorsement alters the buying behaviour of a person in a positive way 'strongly agree' agree neutral disagree strongly disagree __
  • 18. celebrity endorsement attracts individuals attention towards the product or services advertised 'strongly agree' agree neutral disagree strongly disagree __ Data findings: 1. 29% respondents said that celebrity endorsement increases the probability of product purchase. 2. 24% respondents said that celebrity endorsement decreases the risk related to the product or services. 3. 48% respondents said that celebrity endorsement is essential for the success of product in the market place. 4. 56% respondents said that celebrity endorsement increases the trustworthiness of products. 5. 44% respondents said that celebrity endorsement increases the brand recall. 6. 50% respondents said that celebrity endorsement is essential for promotion of product and services in this competitive marketplace. 7. 58% respondents said celebrity endorsement alters the buying behavior in positive way. 8. 62% respondents said that celebrity endorsement increases the credibility of the product.
  • 19. 9. 44% respondents said that celebrity endorsement attracts individuals towards thw product or services. Inferences Majority of respondents are in favor of celebrity endorsement and they think that celebrity endorsement can definitely have effect on the buying behavior of any brand. Final findings: 100% of respondents said that they watch advertisements. 80% respondents says that celebrity endorsement is required for advertisements 58% of respondents says that they like female celebrities in advertisements. 76% respondents said that they are not using a brand only because of endorsing celebrity 78% respondents said that the give more value to the quality before purchasing any particular brand. While 2% respondents give price as more important factor than any other while purchasing any brand. 29% respondents said that celebrity endorsement increases the probability of product purchase. 24% respondents said that celebrity endorsement decreases the risk related to the product or services. 48% respondents said that celebrity endorsement is essential for the success of product in the market place. 56% respondents said that celebrity endorsement increases the trustworthiness of products. 44% respondents said that celebrity endorsement increases the brand recall. 50% respondents said that celebrity endorsement is essential for promotion of product and services in this competitive marketplace.
  • 20. 58% respondents said celebrity endorsement alters the buying behavior in positive way. 62% respondents said that celebrity endorsement increases the credibility of the product. 44% respondents said that celebrity endorsement attracts individuals towards thw product or services. Chi-square test H0- there is no significant difference between celebrity endorsement and using a brand H1- - there is significant difference between celebrity endorsement and using a brand Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent Do you think that celebrity is required in an advertisement * Do you keep using a brand 50 100.0% 0 .0% 50 100.0% only because of the endorsing celebrity Do you think that celebrity is required in an advertisement * Do you keep using a brand only because of the endorsing celebrity Crosstabulation Do you keep using a brand only because of the endorsing celebrity Total 'yes' no
  • 21. Do you think that 'yes' Count 12 28 40 celebrity is required Expected Count 9.6 30.4 40.0 in an advertisement Residual 2.4 -2.4 no Count 0 10 10 Expected Count 2.4 7.6 10.0 Residual -2.4 2.4 Total Count 12 38 50 Expected Count 12.0 38.0 50.0 Chi-Square Tests Asymp. Sig. Exact Sig. Exact Sig. Value df (2-sided) (2-sided) (1-sided) Pearson Chi-Square 3.947(b) 1 .047 Continuity 2.474 1 .116 Correction(a) Likelihood Ratio 6.239 1 .012 Fisher's Exact Test .092 .046 Linear-by-Linear Association 3.868 1 .049 N of Valid Cases 50 a Computed only for a 2x2 table b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 2.40. Here p value is small than the .05 so we will reject the H0 and accept the H1