Faculty of       Master in             Communication    Corporate             Sciences         CommunicationMASTER THESIS,...
UNIVERSITY OF LUGANO    BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                          2009    I. AKNOWLEDGEME...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009   II. EXECUTIVE SUMMARYThis Mas...
UNIVERSITY OF LUGANO    BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT           2009maximization of effectiveness. Thi...
UNIVERSITY OF LUGANO                               BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                      ...
UNIVERSITY OF LUGANO                            BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                         ...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT       2009                                   IV. ...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT           20091. INTRODUCTIONJennifer Anniston, T...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT            20092003), choosing the right celebrit...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT            2009HYPOTHESIS  I. Celebrity attribute...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT            2009A company using endorsement is pro...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                2009According to these definitions...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT               2009THE SPORTS INDUSTRYAs everyone ...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT             2009celebrity endorsement are Michael...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT            2009The role of celebrities in the bea...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT             2009Sherman (1992), once a time, peop...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT               2009the result of many works done o...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                 2009to the launch of the new movi...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT               2009         According to HPI, thes...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT               2009THE FAN POWERCashmore described...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009how celebrities’ visibility is i...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                     2009components because of the...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT           2009key figures too within these indust...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                       2009                       ...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT             2009One important advantage of this s...
UNIVERSITY OF LUGANO        BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                                       2009Ce...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                       2009(Ohanian, 1990). Hence,...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009the endorser should have a resem...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009of the product should be congrue...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT            2009(4)THE MEANING TRANSFER MODELMcCra...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                2009                              ...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT             2009TrustworthinessMost of the litera...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009advocating” (Byrne, Whitehead, &...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009than products. This effect is ca...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT             2009exposure of a celebrity endorsing...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                 2009Reference group: emulateThis ...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                  2009which is by the meaning a sy...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                     2009       “Which Facets of t...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT              2009or opinion, it will be integrate...
UNIVERSITY OF LUGANO          BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                          2009relations pro...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT             2009strategies for the selection. Fir...
UNIVERSITY OF LUGANO          BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT                         2009This relations...
UNIVERSITY OF LUGANO   BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT               2009   2.6 Overview of models and t...
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0809 garciac

  1. 1. Faculty of Master in Communication Corporate Sciences CommunicationMASTER THESIS, 2009BEYOND THEEFFECTIVENESS OFCELEBRITY ENDORSEMENT2009Supervisor: Dr. Patrick Cotting Author Cristel Garcia 04-984-704 cristel.garcia@lu.unisi.ch cristel_garcia@hotmail.com
  2. 2. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 I. AKNOWLEDGEMENTSThis Master’s thesis is the accomplishment of my university “journey”. The theme of the thesis aroseduring this journey, while knowledge was sent from everywhere inside the university’s walls.Writing this thesis made me gain knowledge on a subject for me very interesting and important intoday’s society with consumer power.First of all, I would like to thank my supervisor Patrick Cotting for all support and expertise, and whohas given me valuable guidance.In addition, I would like to express my gratitude to the managers who gave me a little of their precioustime and who have been helpful in answering my questions with their remarkable knowledge: RobertoCosta, Head of Advertising & Internet at Swatch; Valérie Bastardoz, Head of Communication at BCV; andSandra Helfenstein, Deputy Head Administrative Unit Communication at SFU.I would like to say a special thanks to my parents and sister, Inês, who always gave me support duringthis period of my life.Finally, I would like to thank all the persons who gave me encouragement and helped me throughoutthis period of study: Davide, Sophie, Anne, Adrien, and of course Massimo.I have a last thought for all my colleagues, who have also accomplished their final work and who haveshared with me their doubts, despair, happiness, and finally pride of having ended the work. Good luckto everyone. 2
  3. 3. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 II. EXECUTIVE SUMMARYThis Master’s thesis is a research about one popular marketing strategy: celebrityendorsement. Indeed, even though celebrity endorsement represents some risks, it isa largely used method to reach competitive advantage by companies. Today,companies spend millions each year for the endorsement of their products/servicesby celebrities. It is always a great challenge for marketers to determine the meaningconsumers associate with the brand in order to select the right celebrity and to buildthe right celebrity endorsement concept. Therefore, it was of a great interest toinvestigate this topic further in details.The initial idea of this thesis has been activated by the lack of information aboutcelebrity endorsement overall strategy. In fact, there are many factors influencing theeffectiveness of a celebrity endorsement strategy which are not taken intoconsideration well enough.This thesis analyzes existing literature and contains suggestions about thedevelopment of such a strategy taking into consideration all the elements susceptibleto have an influence on its effectiveness.The approach of this study is first qualitative with the examination of existing theoriesand methods about celebrity endorsement. After a literature review research on thecelebrity endorsement concept, findings have shown that there was too much focus onthe celebrity’s attributes selection and not enough focus on the other elements, suchas the company (product/brand), media environment, and customer behavior. Manyfactors are an integral part of the strategy as well as the celebrity’s attributes.Then, the aim of the second part is to consider the gaps in the existing theory and tocreate a model able to bring together each factor needed to reach the effectiveness ofcelebrity endorsement strategy. The core of the thesis is represented by a suggestedmodel of the overall celebrity endorsement strategy which should lead to the 3
  4. 4. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009maximization of effectiveness. This model was thought as a solution for companieswilling to reach a successful campaign. The model involves all dimensions and successfactors needed to develop an effective strategy. It was designed with a strong focus onfilling the lack of elements to build an effective celebrity endorsement strategy. Theseelements were called the success factors of the strategy. The model was designed onthe basis of an existing sponsorship model, which was an excellent base due to itsmarketing roots.In order to check the feasibility of the suggested model, companies have beeninterviewed about their own celebrity endorsement strategy and about the model.The result of these interviews was positive and showed that companies must considerall success factors to reach a success campaign. Sometimes, some factors areunderestimated or forgotten, which enhance the importance of using a model as astep-by-step toolkit.Moreover, while analyzing the model, another use of the model appeared. Indeed, themodel can also be used as a measurement tool, which is essential for a company afterdoing such a campaign. To monitor celebrity endorsement success a set of measures isproposed.The aim of the thesis was to try to meet companies’ expectations and needs with amodel proposal which will solve some issues within the whole celebrity endorsementmanagement. 4
  5. 5. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 III. TABLE OF CONTENTSI. AKNOWLEDGEMENTS .................................................................................................................... 2II. EXECUTIVE SUMMARY ................................................................................................................... 3III. TABLE OF CONTENTS...................................................................................................................... 5IV. THEORETICAL PART ........................................................................................................................ 7 1. INTRODUCTION ............................................................................................................................. 8 1.1 Problem Discussion.............................................................................................................. 8 1.2 Purpose and Research Questions ................................................................................... 9 RESEARCH QUESTIONS ................................................................................................................................................................ 9 HYPOTHESIS ...................................................................................................................................................................................10 1.3 Delimitations ....................................................................................................................... 10 2. DEFINING CELEBRITY ENDORSEMENT – LITERATURE REVIEW .......................... 10 2.1. Definition............................................................................................................................... 10 2.2. Origins .................................................................................................................................... 12 THE SPORTS INDUSTRY ............................................................................................................................................................13 THE BEAUTY INDUSTRY ...........................................................................................................................................................14 THE MERGER OF BRANDS AND CELEBRITIES ..............................................................................................................16 THE WATCHTOWER ...................................................................................................................................................................19 THE FAN POWER ..........................................................................................................................................................................20 THE VISIBILIY OF CELEBRITIES ...........................................................................................................................................20 THE CELEBRITY INDUSTRY ....................................................................................................................................................21 2.4 Existing Theories and Models ....................................................................................... 23 PROS AND CONS OF CELEBRITY ENDORSEMENT STRATEGY ..............................................................................23 (1)SOURCE CREDIBILITY MODEL ........................................................................................................................................26 (2)SOURCE ATTRACTIVENESS MODEL .............................................................................................................................27 (3)THE PRODUCT MATCH-UP HYPOTHESIS ..................................................................................................................28 (4)THE MEANING TRANSFER MODEL...............................................................................................................................30 2.5 Celebrity Selection ............................................................................................................. 31 COMMON CELEBRITIES’ ATTRIBUTES ..............................................................................................................................31 THE FRED PRINCIPLE ................................................................................................................................................................36 4F’s.......................................................................................................................................................................................................37 SOURCE ATTRIBUTES AND RECEIVER PROCESSING MODES................................................................................38 Q-RATINGS.......................................................................................................................................................................................39 SPORTS INDUSTRY ......................................................................................................................................................................41 2.6 Overview of models and theories ................................................................................ 43VI. PRACTICAL PART ....................................................................................................................... 46 5
  6. 6. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 3. MODEL PROPOSAL ..................................................................................................................... 47 3.1 The Management Circle for C.E. Strategy.................................................................. 47 OVERALL STRATEGIES ..............................................................................................................................................................48 DEFINITION OF BRAND PERSONALITY ............................................................................................................................49 DEFINITION OF C.E. STRATEGY ............................................................................................................................................51 IMPLEMENTING & CONTROLLING C.E. STRATEGY.....................................................................................................52 3.2 The Drivers of C.E. Strategies ........................................................................................ 53 THE COMPANY AS A PRINCIPAL DRIVER OF C.E. STRATEGIES ............................................................................53 THE BRAND .....................................................................................................................................................................................54 THE CELEBRITY PERSPECTIVE.............................................................................................................................................54 THE PARTNERS’ PERSPECTIVE.............................................................................................................................................55 THE MEDIA PERSPECTIVE.......................................................................................................................................................55 THE PUBLIC PERSPECTIVE .....................................................................................................................................................55 3.3 The C.E. Effectiveness Model ......................................................................................... 56 4. QUESTIONNAIRE: Celebrity Endorsement Strategy CHECK ..................................... 62 5. COMPANIES’ INTERVIEWS ..................................................................................................... 64 5.1 SWATCH ................................................................................................................................ 64 SWATCH HISTORY .......................................................................................................................................................................64 PROMOTIONAL ACTIVITIES AT SWATCH ........................................................................................................................64 INTERVIEW WITH ROBERTO COSTA, HEAD OF ADVERTISING & INTERNET (23.07.09) .......................65 OBSERVATIONS ................................................................................................................................................................................67 5.2 BCV – Banque Cantonale Vaudoise ............................................................................. 67 BCV HISTORY ..................................................................................................................................................................................67 CELEBRITY ENDORSEMENT ACTIVITIES AT BCV .......................................................................................................68 BCV’S CELEBRITIES .....................................................................................................................................................................68 INTERVIEW WITH VALÉRIE BASTARDOZ, HEAD OF COMMUNICATION (05.08.09).................................69 OBSERVATIONS.............................................................................................................................................................................75 5.3 SWISS FARMERS’ UNION (SFU) ................................................................................... 75 HISTORY............................................................................................................................................................................................75 CELEBRITY ENDORSEMENT ACTIVITIES AT SFU ........................................................................................................76 SFU’S CELEBRITIES .....................................................................................................................................................................76 THE ACTIVITIES OF THE CAMPAIGN .................................................................................................................................78 INTERVIEW WITH SANDRA HELFENSTEIN, DEPUTY HEAD ADMINISTRATIVE UNIT COMMUNICATION ...........................................................................................................................................................................78 OBSERVATIONS.............................................................................................................................................................................80 6. MODEL ADJUSTMENT AND SUGGESTIONS ...................................................................... 81 7. GENERAL CONCLUSIONS......................................................................................................... 84VII. APPENDICES ................................................................................................................................. 87BIBLIOGRAPHY.......................................................................................................................................112 6
  7. 7. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 IV. THEORETICAL PART 7
  8. 8. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 20091. INTRODUCTIONJennifer Anniston, Tiger Wood, Roger Federer, Beyoncé: these names have becomesymbols of the role of endorsers in advertising.Companies invest millions of dollars to sign up with celebrities to endorse theirproducts. This is not a new phenomenon; it goes back to more than a century.However, today’s use of celebrities in advertising strategies is becoming more andmore sophisticated and complex. Because of its cost, usually celebrity endorsementstrategy is used by big firms. Nonetheless, smaller companies with limited budgets arestarting now to use celebrities to promote their products.However, companies should not select a celebrity before knowing if there is a need fora celebrity endorsement. Indeed, many brands get by quite well without usingpersonalities.In this paper, many factors used for the selection of celebrity endorsers have beenidentified through academic literature review, such as celebrity attractiveness,credibility, product-celebrity match, message and product type, target characteristics,and general meanings of celebrities. 1.1 Problem DiscussionFrom a marketing communication point of view, it is essential that companies plandifferential strategies to create competitive advantage. The use of celebrityendorsement is a widely used strategy to achieve this competitive advantage. Thistype of marketing strategy has become popular but it involves certain risks. Hence, toavoid the risk of a failure, companies should prepare in detail this kind of strategy.That means, they must think of each dimension, factor, and driver involved in theprocess of celebrity endorsement. This leads to the aim of this thesis where throughan exploratory research a deeper understanding of an effective usage of celebrityendorsement will emerge, as well as the development of suggestive ideas.In the literature review, findings are varied and incoherent regarding the way ofchoosing the right celebrity endorser. According to Byrne (Byrne, Whitehead, & Breen, 8
  9. 9. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 20092003), choosing the right celebrity is the problem companies are facing. Companiesneed help in determining a model which will give them the way to reach effectivenessof celebrity endorser. A further research is needed to help them selecting celebrityendorsers taking into account every dimensions, factors, and drivers. Indeed, most ofthe authors analyzed the celebrity’s attributes to be a good endorser, but is it enoughto build a good strategy? The product is sometimes forgotten and too much focus is onthe celebrity, while the focus should be on the product. The product and the celebrityneed to match together, but there is either an environment around them and also anaudience. There are too many components that must be taken in consideration duringa celebrity endorsement process. 1.2 Purpose and Research QuestionsMany of the previous research on celebrity endorsement have explored celebrities’attributes, and celebrity endorser’s influence on consumer behavior. What is reallymissing in these studies is a global strategy of celebrity endorsement that would givean entire overview of the process to companies willing to go on with celebrities asspokespersons for their brand, product/service. The lack of research in this area gaveme the motivation for the present thesis. The purpose of this study is stated asfollows:To gain a deeper understanding of the overall celebrity endorsement strategy in order todevelop an effective step-by-step model for companies willing to adapt this kind ofstrategy.RESEARCH QUESTIONS I. What is the complete list of factors involved in the celebrity endorsement process which leads to an effective strategy? II. Who are the drivers involved in the celebrity endorsement process who influence the strategy? 9
  10. 10. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009HYPOTHESIS I. Celebrity attributes are not the only success factors to reach the effectiveness of celebrity endorsement. II. Each factor must fit together in order to achieve the effectiveness. III. Each factor and driver should be controlled as much as possible to an effective strategy. 1.3 DelimitationsThis research involves many aspects of celebrity endorsement. Therefore, there willbe restrictions because of time, and resources. Further, the model proposal will not betested by a company, but only assessed by few companies since the time for this studyis limited.2. DEFINING CELEBRITY ENDORSEMENT – LITERATURE REVIEWIn this section, relevant theories and models to the research questions will bepresented. 2.1. Definition [The most effective way to use a celebrity is that you want people to relate to the product through that celebrity.] (Levine, 2003)The last 100 years, endorsement strategies provided many memorable moments. A lotof people remember Michael Jordan endorsing the Nike shoe, as well as Tiger Woodswith the Nike golf equipment. Then, Michael Jackson endorsed Pepsi singing anddancing, and Claudia Schiffer with her blond hair endorsed Elvive for L’Oréal. Today,Nespresso had a huge success with the “What else?” sentence said by GeorgesClooney. So, what is all about endorsement strategy? 10
  11. 11. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009A company using endorsement is promoting the company’s product by the means ofthe personal recommendations of a celebrity, a person who is sufficiently well knownto influence the potential consumers of that product or brand. In other words, acelebrity is in a way sponsoring the company’s product, and he/she is paid for doingso (Bagehot, 1998). The concept is simple. A celebrity is chosen to express approval ofa product or service. Then an agreement between the celebrity and the company,which represents the product being endorsed, is signed (Pemberton, 1997). Theimportance of this strategy is not only the increase revenue of the company, but inhow the celebrities add value to a company, brand or product (Amos, Holmes, &Strutton, 2008).It is important to differentiate endorsement and licensing. Indeed, endorsement isvery similar to licensing except that the name of the endorser is used to promote aproduct or brand, while the endorser’s name in licensing is on the product (Lipsey,2006). Endorsement means the “stamp of approval” of a celebrity to a product, serviceor brand (Pemberton, 1997). When David Beckham1 accepted to endorse GiorgioArmani underwear, he accepted to give his “stamp of approval” for the product andbrand. It is estimated that he received 25-28 millions dollars for a three year contract(Carlo, 2008). He will be Giorgio Armani’s “face” for a while. So, the “stamp ofapproval” should be a real one to transmit credibility and create messagepersuasiveness.Today, celebrities cannot pursue themselves endorsement deals and contractsbecause of the visibility industry’s growing. Indeed, celebrities need the help ofexperts to take care of their image. There are different ways of using celebrities toendorse products. There is the tools-of-the-trade endorsements when celebritiesendorse products used in the course of their work, for example Anna Kournikova whoendorsed Adidas. Then, there are the non-tool endorsements when celebritiesendorse products that are not related with their work, for example Anna Kournikovawho endorsed Omega watches (Rein I. , Kotler, Hamlin, & Stoller, 2006).1 Appendix 2 11
  12. 12. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009According to these definitions, celebrity endorsement is a well-liked strategy used bycompanies in order to add more value to their brand/product by associating them to acelebrity. This association will give to consumers a way of choosing a product byrelating it to someone they know. 2.2. OriginsThe first celebrity who endorsed a product was a famous English actress, LillieLangtry, with the Pears Soap in 1893 (Exhibit 1). She was also the first one thataffected negatively the desired brand image of a company because of her reputationfor being promiscuous (Louie, Kulik, & Jacobson, 2001). Exhibit 1 Lillie Langtry endorsing Pears’ Soap www.lillielangtry.comFrom Lillie’s endorsement till today, the use of celebrity spokespeople has been on therise. In 1975, a study reported that 15% of prime time television commercialsfeatured celebrities and by 1978 the number was reported to be over 20% (Kamins,Brand, Hoeke, & Moe, 1989). Today, during a Super Bowl you will watch 32%advertising with celebrities (Carlo, 2008). The celebrities’ business is alwaysincreasing. 12
  13. 13. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009THE SPORTS INDUSTRYAs everyone can observe, the sporting goods industry often uses the celebrityendorsement strategies. Indeed, athletes are used to market a wide range of products,services and brands. Especially, shoe companies are well-known for those kinds ofstrategies. In 1997, “Sports Services of America” did a survey which results show thatsports celebrities’ endorsers have increased the value of products by more than 25%over the products of competitors that do not use endorsement strategies (Pemberton,1997). Many outside reasons have influenced the athletes’ potential of doingendorsement during the last 30 years. One reason is the media’s desire to write aboutan athlete’s personal behavior, like the actors and singers. Today, athletes, actors andsingers’ life is scrutinized from every angle. Therefore, it is much difficult to choose anendorser. In the past, athletes’ bad habits were not known and it made no distort tothe companies they were working with.Many well-known athletes made the history of celebrity endorsement. Babe Ruth,member team of the New York Yankees, was the first celebrity in sports who did amedia endorsement. The deal was made in 1919 and the sportsman was paid fivedollars to describe each homerun he hit in a written exclusive to United PressInternational (Schaaf, 2004).From 1936 to 1957, the business of sports evolved in an impressive way. Indeed,during these 20 years, the financial and social architecture of the sports industrychanged a lot. The mass media evolved too embracing the sports industry, which didthe same in return. Then in the late 1940s, television increased the move ofsponsorship and with it celebrity endorsement. Today, with the immense evolution oftechnologies, the sports industry truly profits from the multiple print, radio, TV, andinternet newspeople that cover all the sports events in multiple languages and formultiple outlets. Consumers have many sources of receiving content: newsprint, radio,TV, computer, cellphone, and pager. All these technological improvements made lifeeasier for companies who want to market their products. Celebrity endorsementstrategies can be sent through all these means. Other names that made the history of 13
  14. 14. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009celebrity endorsement are Michael Jordan, Tiger Wood, Joe Louis2, and WayneGretzky. They were more than just sportsmen. They were mega-stars andbusinessmen. Through the years, convergence of innovation and consumer marketinghas built a multibillion-dollar sports industry that will continue to expand all over theworld year after year (Schaaf, 2004). The sportsmen understood how the sportsindustry is working and they are all becoming sports-businessmen, such as DavidBeckham3. They also understood that it is more than a simple endorsement. Celebrityendorsement strategies also measure an athlete’s popularity away from the action.THE BEAUTY INDUSTRYThe beauty industry begins in the mid-nineteenth century where we can traceadvertising aimed at women. The development of this industry came from themarketing of beauty products. However, this industry truly grew in the 1920s and1930s. Then, after the Second World War, the beauty industry evolved and becamethe beauty industry we all know today (Black, 2004).The interest of women for beauty products was related to their new sense of identityas consumers. The magazines played an important role in inducing women into theworld of brand-name products and smart shopping (Black, 2004).The Pears Soap, as previously said, was the first product endorsed by a celebrity whowas a famous actress. Many others followed, such as Marilyn Monroe4 with twofamous endorsements for Westmore Hollywood Cosmetics. Stars are used by manypeople as role models, even more in the area of personal appearance (Pringle, 2004).A new standard of beauty appeared in Hollywood in the 1930s. Indeed, the starsindustry created a kind of gold standard of beauty around the Hollywood stars.Cinema able to diffused a standardization of taste. In 1950s, Hollywood creates morethan a standardization of beauty; it produced a golden age of glamour whereHollywood stars were seen as deities with an unapproachable beauty (Cashmore,2006).Today, almost every hair care or cosmetics company has a celebrity “face” torepresent its products. Hair products and cosmetics usage by women is still growing.2 Appendix 13 Appendix 24 Appendix 3 14
  15. 15. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The role of celebrities in the beauty industry is fundamental. Celebrities create trendsthat had always been followed. It is already 200 years that celebrities are endorsinghair care products. Recently, Jennifer Aniston, actress, was rated as one of the mostpowerful stars for the hair care industry (Pringle, 2004).Nowadays, the beauty industry knows that celebrities sell cosmetics. Many examplescan prove that in this industry the best seller are the celebrities. There are manyfamous celebrities in this industry. Some examples: Catherine Zeta-Jones withElizabeth Arden; Beyoncé Knowles with L’Oréal; Madonna with Max Factor; Kate Mosswith Rimmel; Pierce Brosnan with L’Oréal.The advertising of the beauty industry has long time being criticized because it isaccused to create idealized stereotypes that in some way forces women to follow.However, this industry will not change for some time. Celebrities will keep on beingthe models of many women, and men for beauty concerns. 2.3 Celebrity CultureError! Reference source not found.[A celebrity is a person whose name has attention-getting, interest-drawing, and profit-generating value.] (Rein, Kotler, & Stoller, 1997)Celebrity culture is all around us and sometimes even invades us by shaping our lives,conduct, style and manner. It affects many fans, but also entire populations with theshift from plain consumer to aspirational consumer. Celebrities made a real change inthe media and in the consumer society.Celebrities emerged from the sports and entertainment industries. They get attentionof people by being visible in the media. Usually, celebrities are first noticed throughtheir professional lives, but then people get attracted by their private lives as well.During the 1980’s and 1990’s, celebrity culture was a real part of the social life. Thiscelebrity culture was supported by the global media that promoted celebrities usuallyfrom entertainment and sports industries (Cashmore, 2006). According to Len 15
  16. 16. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Sherman (1992), once a time, people admired heroes such as statesmen, scientists,explorers and military figures because of their heroic accomplishments. These heroestoday have been exchanged by many celebrities that became examples for the societyeven without accomplishing heroic actions. They are simply figures who embodiedpublic’s convictions and hopes and therefore they are being admired as heroes of thesociety to be respected. Sherman means that today an athlete who wins a footballgame seems to have conquered the Everest. The attraction of the public is notnecessary related to the celebrity’s talent, since there is no required relationship tohis/her celebrity status. Much of the time, a celebrity does not have talent but onlypresence.[We have forsaken our traditional heroes and replaced them with actors andathletes…where once admired people who do great things, now we admire people whoplay people who do great things.] (Sherman, 1992)Literature review shows that celebrity has different meanings. A first consideration isthat celebrity is a cultural change towards a culture that privileges the visual andsensational. A second one is that a celebrity is someone that has an innate quality thatis discovered by industries of sports or entertainment. A third consideration is the factthat a celebrity evolved through the process of commodification and became a“product” that makes promotion, publicity and advertising (Turner, 2004). Indeed, assoon as someone grows up in the scales of public visibility he/she can start to sell. Bybeing a “product”, celebrities can be bought and sold in a marketplace. Celebritiesbecame a kind of raw material that need to be refined, developed, and packed beforebeing marketable. The commodification process which makes people tradeable andready for the consumption is a key process in the celebrity culture (Cashmore, 2006).THE MERGER OF BRANDS AND CELEBRITIESButterfield developed a model (Exhibit 2) that shows how celebrities work well forthe brands’ promotion. One fundamental thing about working with celebrities for thebrands’ promotion is that since they are famous, they will be more likely “invited in”by customers (Pringle, 2004). This is one consideration that Butterfield pointed out inorder to better understand the subscription decision process. Butterfield’s model is 16
  17. 17. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009the result of many works done on countries, issued causes, and charities. He claimedthat there are two key factors for the identification process, awareness and familiarity,which can somehow stand for the term “subscription”. However, for the creation of areal relationship, Butterfield considered that the factor visualization must beintegrated in between. Exhibit 2 The subscription decision process (Pringle, 2004)Explanation of the model: Stars have high (1) public awareness as well as high (2)visibility which give people a sense of (3) familiarity. If the fit between the celebrityand the brand is well created, then it will give a meaningful (4) resonance and apositive (5) disposition. These steps lead to (6) subscription which is the last step tobuild a good relationship (Pringle, 2004).In a world, where transnational companies, such as AOL Time Warner, NewsCorporation, Sony, and Disney, build their power by diversifying one media formacross many media platforms, celebrities became the bond to connect all these crossmedia processes. Celebrities allow the transfer from one format to another through abranding mechanism. This mechanism is part of the celebrity routine which is made ofcross-promotions (Turner, 2004). For example, a movie star will promote the newmovie by going in different talk shows and at the same time the movie star willpromote a new hairspray because of the spontaneous interest of the audience related 17
  18. 18. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009to the launch of the new movie. Everything is correlated and that is the reason why itis called a cross-promotion.[The cast of characters that make up today’s generation of celebrities couldn’t be moresaleable if they had barcodes]. (Cashmore, 2006)Celebrities make money and it is a fact. They market everything with their names andimages because they simply attract audiences. Therefore, celebrity endorsements areused by marketers to brand their products, as well as television programs usecelebrity appearances to build their audiences. They all make a kind of mergerbetween the product to be promoted and the celebrity who will promote it. As inevery merger, the two partners need to be compatible to make it work. The celebrityis a commodity, as explained in last section, that will “marry” another commodity andas in every relation an understanding of both parts is crucial.The celebrities are well conscious of their power and therefore they develop theirpublic personality as a valuable asset that is defined from all the personal and careerchoices. They became real “commodities” and even if they do not like this word, theywork on strategies to increase the value of this commodity to the industry.There are various ways celebrities can work for a brand. HPI, a leading UK researchcompany, developed a model (Exhibit 3) where we find all the different modes acelebrity can be exposed for a brand. Exhibit 3 Five ways a celebrity can work for a brand (Pringle, 2004) 18
  19. 19. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 According to HPI, these terms can clearly be connected or even overlapped in acelebrity endorsement strategy (Pringle, 2004): Testimonial: the celebrity is a spokesperson or a mouthpiece for the brand. Imported: the celebrity plays a role that the audience already knows from TV or movie appearances. Observer: the celebrity plays the role of commenting about the brand. Invented: the celebrity performs a part invented only for the brand. Harnessed: the celebrity is tied to the storyline of the brand advertising; the character of the celebrity can evolve through it.The UK company stated that with the testimonial and imported mode the strategy isless effective because of the imposed perception, while with observer, harnessed, andinvented mode, the customers perceive more integration between celebrity andbrand.THE WATCHTOWERNowadays, the public is no more passive. The public is asking more from celebrities,something different. The public is standing in a “watchtower” and “celebrities mustsurrender themselves to life” as they are standing in a gold prison (Cashmore, 2006).The fans want to watch and inspect whenever they want. If celebrities do notsurrender, the public might lose interest and go on with other more interestingcelebrities. As soon as the public is no longer interested, he can send it to oblivion andleave it there. Being active, the consumers can promote a celebrity career or destroy itby simply discarding him/her as a real commodity. The public knows it and this is itstrue power. Today, consumers have more power collectively on celebrities than everand they like it because they know that they are not just observers anymore but alsoplayers. Consumers are players and creators of celebrities with their desire for newcelebrities’ figures. This also explains the new trend in consumer behavior. In the past,consumers needed to own goods, but often could not afford everything. Now,consumers want to emulate celebrities’ lives. Even if it is hard to reach the same levelof life, they try to do as much as they can by reaching the nearest thing. 19
  20. 20. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009THE FAN POWERCashmore described the word “fan” as a “description of followers, devotees, oradmirers of virtually anybody or anything in popular culture” (Cashmore, 2006). Hedefined different types of fans. The first category, the low worship fans, involvespeople who just read about celebrities. The second category of fans is theentertainment-social character, which concern the one who follow kindly thecelebrities. The third, regards those who are really interested in knowing thecelebrities’ lives, called the intense-personal feelings. Finally, there are the extremeworshippers who are really obsessed by the celebrities (Cashmore, 2006). This closeinvolvement with celebrities’ lives is called by Neil Alperstein (Alperstein, 1991) the“artificial involvement”. He said, in his study, that this involvement helps people in acertain way making sense of their reality by integrating celebrities in daily life. InBenson Fraser and William Brown’s study with Elvis’ fans, they explained the fans’attitude with three possibilities (Fraser & Brown, 2002). The first is that “ordinarypeople develop extraordinary psychological relationships with celebrities, whetherliving or dead. The second possibility is the fact that people consider celebrities as rolemodels to follow. The last one is that “fans adopt what they see as a celebrity’sattributes, including his or her values and behavior”.[Consumer product companies are always looking for that next certifiable star, becausethe impact that individual has in his public sphere of influence. The recognition andloyalty of his fans means sales in terms of cereal, video games, chewing gum, shoes,hardware, and just about anything.] (Schaaf, 1995)The fan has a real power towards the celebrities. Indeed, he/she can change their livesin a positive and negative way. The fan can highlight the celebrity, but can also pressthe “delete key” of the computer and make celebrities disappear from the stage. It is atrue influence on a life of someone. It is a terrific power. It is the “fan power”.THE VISIBILIY OF CELEBRITIESIn 1999, Forbes magazine introduced “Celebrity Power 100” with the ranking of thecelebrities based on stars’ brand franchise, and not based on the fortune. This shows 20
  21. 21. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009how celebrities’ visibility is important. There are different dimensions in the visibilityhierarchy which are space and time.Space can be illustrated with a pyramid made of five levels: (1) Invisibles; (2) LocalVisibility; (3) Regional Visibility; (4) National Visibility; (5) International Visibility(Rein I. , Kotler, Hamlin, & Stoller, 2006).Time is the enemy of many celebrities. Indeed, there are few celebrities that become alegend and many that are often one-day or one-year well-known people.THE CELEBRITY INDUSTRYAccording to Rein et al. (1997), there are many sub-industries that support thecelebrity industry. Coordination between these sub-industries is needed in order toproduce and promote brands. Moreover, the celebrity industry (Exhibit 4) is alsodefined to coordinate the services that the sub-industries provide in order to produceand promote the celebrity. Therefore, it works in both sides, the entertainment andthe communications industry (Rein, Kotler, & Stoller, 1997/2006).The first industry – entertainment industry – consists of theatres, music halls, dancehalls, sports arenas, museums, county fairs, sport games and movie studios. Thisindustry was born mostly in Hollywood. The second industry – communicationsindustry – is the media channels, through which we know the visible people. Manyimages, products and stories about these visible people are sold through the mediachannels, such as television, radio, film, cable, magazines, newspapers and internet.The promotion of these two industries – entertainment and communicationsindustries – is made with the third industry which is the publicity industry. Itencompasses publicists, PR firms and advertising agencies which constitutes thelargest form of promoting, and marketing research firms. Then follow therepresentation industry composed by agents, personal managers, and promoters,which handle the celebrities by negotiating engagements for them in exchange of a feeor commission. Some agents, few of them, do not only sell their clients as they are.They try to offer a “total service” to their clients giving them all the support they needto improve themselves day by day. Unfortunately, there are few agents acting like that.That is the reason why the appearance and the coaching industries exist – to givepersonal consultancy. The appearance industry is one of the fastest-growing 21
  22. 22. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009components because of the high degree of importance of the celebrity image. Thisindustry includes makeup specialists, hairstylists, clothing stylists, color consultants,image coordinators, dermatologists, nutritionists and plastic surgeons. This is a realcompetitive environment that is growing every day. The coaching industry is relatedto the professional performance of the celebrities. It helps celebrities improvingdifferent skills, such as dance, music, speech, that aspire to be highly visible. Then, thelegal and business services industry gives different kinds of legal, accounting andinvestment advice. Finally, the endorsement and licensing industry is a growingindustry since marketers understood that it is a powerful mean to distinguish aproduct or service from the competitors (Rein I. , Kotler, Hamlin, & Stoller, 2006).The celebrity industry earlier than today was not as transparent since the industry didnot want to show all the activities behind the trade. Nowadays, the industry is well-known and transparent. Closing the eyes to this industry is impossible because it isanchored to the fabric of our economy and culture. Exhibit 4 Structure of the Celebrity Industry (Rein, Kotler, & Stoller, 1997)To make the system work it is necessary to know the existence of all these industriesthat have a crucial role in the development of the celebrity industry. There are many 22
  23. 23. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009key figures too within these industries that must be taken into account – agents,managers, and publicists. Of course, there are many variations depending from marketto market. The economic interdependencies between these figures and the celebritiesform a bind that makes the key to the structure of the celebrity industry.The power of the celebrity industry is limited due to many conflicts of interests whichcreate gaps in its understanding of the context. For example, we know that the systemdoes not work perfectly for the publicity industries’ interests because of manyscurrilous revelations of many celebrities (Turner, 2004). 2.4 Existing Theories and ModelsPROS AND CONS OF CELEBRITY ENDORSEMENT STRATEGYDuring the last years, celebrity endorsement became a well-known communicationstrategy with the aim to build a congruent image between the brand and theconsumer. This is a real challenge for marketers who have to find the right endorserwho will fit with the brand of the company. The challenge is to determine the meaningconsumers associate with the brand. Therefore, before starting a celebrityendorsement strategy, the company must be sure to have chosen the rightcommunication strategy in order to reach consumers’ expectations. Marketers mustexamine thoroughly the fit between the celebrity and the product before launchingany campaign. Before taking any decisions, the company should check all the pros andcons of having a celebrity endorsing its product.Even if there are significant potential benefits in using a celebrity endorsementstrategy, companies should know that there are also significant costs and risks.According to Erdogan (1999), there are as many potential advantages in a celebrityendorsement as potential hazards (Exhibit 5). 23
  24. 24. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Exhibit 5 Pros and Cons of Celebrity Endorsement Strategy POTENTIAL ADVANTAGES POTENTIAL HAZARDS Increased attention Overshadow the brand Image polishing Public controversy Image change and Brand introduction overexposure Image change and loss of Brand repositioning public recognition Underpin global campaigns Expensive (Erdogan, 1999)According to Erdogan (1999), the advantages are significant and companies trust thatsuch a strategy will generate desirable campaign outcomes. Today, consumers easilycan choose what advertise commercials they would like to see by zapping or watchingTV programs without commercials. Therefore it has become more challenging forcompanies to get consumers’ attention and penetrate the clutter of brief andnumerous advertising spots. The competition is hard, so a great strategy is needed tostand out from the rest. Celebrities help in doing so and improve the communicativeability by cutting through excess noise in a communication process (Miciak &Shanklin, 1994).With celebrity endorsement, an authentic positioning of the brand/product can easilybe done. Moreover, the exclusivity of the celebrity is an essential key, as well as thegain of credibility amongst consumers and also retailers (Cotting, 2007-2008).The image polishing can also be done through a celebrity endorsement strategy whena company is going in the wrong direction. Indeed, when a company’ image issuffering, using celebrity’s image will transfer his/her own image to the band orproduct. A good way of introducing a new brand/product is to design it around thepersonality of a celebrity. It will give direct appeal and the image of the celebrity willinstantly be pushed over to the product. 24
  25. 25. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009One important advantage of this strategy is the creation of an emotional attachmentwith the target group (Cotting, 2007-2008).Although celebrity endorsement strategy has significant returns, sometimescelebrities’ qualities become undesirable and therefore it is always a major challengeto select and retain the right celebrity avoiding potential pitfalls. To prevent thepotential hazards, Erdogan states that pre-testing and planning carefully the strategyare crucial for the success of the campaign. This will avoid the overshadowing of thebrand by the celebrity. Indeed, many times a celebrity endorsement strategy focusestoo much on celebrity and forgets to focus on product. By consequence, the product isforgotten by the consumers because the attention is too much paid over the celebrity.[When a brand – either new or established – associates itself with an already establishedpersonality, it can enhance its own brand identity or be swallowed up by the largeridentity it has annexed.]. (Levine, 2003)Another well-known tactic is to buy a death and disgrace insurance for the contractand to cautiously put provision clauses in the contract so that in any case of injury thecompany will be a minimum insured. It is either essential to mention in the contractwhat is the exact role of the celebrity and should be a great idea to put restrictionclause to avoid too many endorsements with other brands. Indeed, the overexposureis only an advantage for the celebrity but not for the company. The consumer might beconfused with too many brands endorsed by the same celebrity. The selection of thecelebrity is critical and it is fundamental to examine at what life-cycle stage thecelebrity is and how long this stage will last. The image of a celebrity changes duringhis/her life but a brand should not be exposed by this change. In fact, if any kind ofimage change might happened during the campaign then it can bring a loss of publicrecognition. According to Erdogan, celebrity endorsement is also a powerful tool toenter foreign markets. Indeed, the international visibility of many celebrities can beused as a tool to enter new markets, using the same campaign for different countries. 25
  26. 26. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Celebrity endorsers can also be compared with created characters endorsers. Insteadof using celebrity endorsers, many companies choose to create a character who willendorse its products. This strategy is able to build a character that is congruent ahundred percent with their brands and target audiences. While there is an absolutecontrol over this kind of strategy, celebrity endorsement has limited control with thecelebrity’s persona. Some studies prove that with created characters the link betweenthe character and the product is more effective. Following this reasoning andaccording to the Classical Conditioning Paradigm5, consumers have a strongerassociation with created characters than with celebrity endorsers. The reason is thatcelebrity endorsers are linked to many other things whereas the created charactersare linked only to the product.As already mentioned, the choice of a celebrity endorsement is an important task.Therefore, considerable studies have been conducted in order to create models forendorsement strategy. There are four significant models created between 1953 and1989. The initial model was the Source Credibility Model constructed by Carl I.Hovland and his associates. Then three other models follow it: the SourceAttractiveness Model (McGuire, 1985); the Product Match-Up Hypothesis (Forkan,1980; Kamins 1989, 1990); and the Meaning Transfer Model (McCracken, 1989).(1)SOURCE CREDIBILITY MODELThe source credibility model is the first of the celebrity endorsement strategy models.The model affirms that the effectiveness of the endorser’s message depends on hisperceived level of expertise and trustworthiness (Hovland, Irving, Kelley, & Harold,1953). Trustworthiness and expertise start a process called internalization in whichthe promotional message has influence on the consumers’ beliefs, opinions, attitudes,and behavior since information comes from a credible source (celebrity) (Erdogan,Baker, & Tagg, 2001). As a consequence, a celebrity endorser who possesses high levelof trustworthiness and expertise will be more likely to change the consumer’s attitude5 The Classical Conditioning Paradigm in Marketing Communications Context claims that consumers do associations between anunconditional stimulus (endorser) and a conditional stimulus (product) through repeated exposure (Erdogan, 1999). 26
  27. 27. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009(Ohanian, 1990). Hence, the more credible a source is, the more it will be persuasive.Even though source credibility is an essential factor in defining a celebrity endorserbecause of its direct effect on consumers’ behavior, it is not the only factor to considerwhile choosing a celebrity endorser.It seems that a source’s credibility cannot be measured because of its subjectivity, butthere is a high degree of agreement among individuals called “truth-of-consensusmethod”. This method is used to measure and assess a source’s credibility andattractiveness. The method is based on Gestalt principles which state that individual’sjudgments of credibility and attractiveness come from person perception instead ofsingle characteristics (Erdogan B. Z., 1999). For the source credibility measurement,Ohanian (1990) created a Source Credibility Scale (Exhibit 6) after doing extensiveresearch and statistical tests. He bounded many characteristics to the credibilityattribute, but McCraken (1989) argued that to measure celebrity endorsementeffectiveness many other attributes should be taken into account becauseattractiveness and expertise were not enough. Exhibit 6 Source Credibility Scale ATTRACTIVENESS TRUSTWORTHINESS EXPERTISE Attractive- Trustworthy- Expert-Not Expert Unattractive Untrustworthy Classy-Not Classy Dependable- Knowledgeable- Undependable Unknowledgeable Elegant-Plain Reliable-Unreliable Qualified- Unqualified Sexy-Not sexy Sincere-Insincere Skilled-Unskilled Beautiful-Ugly Honest-Dishonest Experienced- Inexperienced (Ohanian, 1990)(2)SOURCE ATTRACTIVENESS MODELThe model affirms that the effectiveness of the endorser’s message depends onhis/her similarity, familiarity, and liking (McGuire, 1968). Therefore, this means that 27
  28. 28. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009the endorser should have a resemblance with the receiver of the message (similarity),as well as physical appearance and behavior that affect the receiver (likeability).Moreover, the endorser should be well-known by the receiver through differentexposure (familiarity). The attractiveness of the endorser is usually determined by theprocess called identification. This process works in the application to advertisingbecause consumers accept information given by an attractive endorser and as a resultthey want to emulate him/her by having in this case a purchase intention (Kelman,1961). Indeed, attractiveness can be observed in most advertisements which exposeattractive people. People are used to these kinds of attractive people that are beingstereotyped. Usually, the source attractiveness model works better when people havechanging beliefs (Baker & Churchill, 1977). Confusion can be done when talking aboutattractiveness, since many times it means only physical attractiveness in theadvertisements. However, attractiveness signifies either other characteristics that thereceiver might perceive in a celebrity endorser, such as intellectual skills, personality,etc.Many studies have shown that there are no doubts that celebrities’ attractivenessboosts attitudes towards advertising and brands. Nonetheless, some studies show thatthere are no purchase intentions with this kind of strategy, while other studies showexactly the opposite. There is ambiguity about the results and the fact that celebrities’attractiveness alone can initiate behavioral intent (Erdogan, 1999). Indeed, Baker andChurchill’ studies (1977) showed in an experiment for a coffee campaign that anunattractive model leaded to behavioral intent of purchasing, while an attractivemodel did not create such intentions towards male subjects. Patzer (1985) claimedthat “physical attractiveness is an informational cue; involves effects that are subtle,pervasive, and inescapable: produces a definite pattern of verifiable differences; andtranscends culture in its effects.”(3)THE PRODUCT MATCH-UP HYPOTHESISThe product match-up hypothesis sustains that harmony of the match between thecelebrity endorser and the product being endorsed is a key determinant for theeffectiveness of the strategy (Amos, Holmes, & Strutton, 2008). Forkan (1980) andKamins (1990) state that the messages sent by the source (endorser) and the message 28
  29. 29. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009of the product should be congruent to reach an effective advertising. Advertising withhigh congruity between the celebrity image and the product message has morecredibility than advertising with low congruence. Indeed, the advertising effectivenesswill be measured by the degree perceived of the fit between brand and celebrityimage. Friedman and Friedman also confirmed the hypothesis that the celebrity andproduct fit lead to a higher effectiveness of the strategy. In reality, consumers are alsoexpected to find a certain level of congruence between the endorser’s image and theproduct he/she endorses. So, from both sides, practitioners, and consumers, there is ahigh expectation in the match between celebrities and brands. From the consumerpoint of view, if match is missing, the consumer will only think that the celebrity hasbeen bought to endorse the product and that he/she does not believe in what he/sheis saying. From the practitioners’ point of view, if the product does not match thecelebrity’s image, then the “vampire effect” might occur. It means that consumersremember the celebrity, but not the product (Evans, 1988). According to Evans(1988), “celebrities suck the life-blood of the product dry” when there is no existenceof a product/celebrity fit. Kamins (1990) also suggested a specificity of the match-uphypothesis about attractiveness. In fact, he proposed that celebrity endorsementstrategy is more effective when attractive celebrities endorse products that enhanceone’s attractiveness. This is the reason why many personal care products areendorsed by attractive celebrities.However, according to Till and Busler (2000), the effectiveness can be measured interms of brand attitude, but not in terms of purchase intention. The match-uphypothesis has some limitations because of the inability of identifying and measuringwhich dimensions are applicable for a particular product. The match-up hypothesishas to be extended to the match of the entire image of the celebrity with the entireimage of the brand and target audience (Erdogan B. Z., 1999).[It’s got to be a good match. You can’t just pull a celebrity out of the air. The mostimportant thing is matching the celebrity’s image and the way the public relates tothem. You have to tap into that to be effective]. Noreen S. Jenney, President of CelebrityEndorsement Network, (Levine, 2003) 29
  30. 30. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009(4)THE MEANING TRANSFER MODELMcCraken (1989) stated that the effectiveness of celebrity endorsement strategyrelies on the meaning that the celebrity conveys through the endorsement process.Celebrities can transfer different meanings to the products and there are undeniably ahuge number of meanings contained in a celebrity, such as status, gender, age,lifestyle, and personality (Erdogan B. Z., 1999). Therefore, it represents for marketersa large choice at their disposal for their strategies.This model gives a “conventional path for the movement of cultural meaning inconsumer societies” (Erdogan, Baker, & Tagg, 2001). The process (Exhibit 7)constitutes three stages: the formation of celebrity image, the transfer of meaningfrom celebrity to product, the transfer of meaning from product to consumers(McCraken, 1989).In the first stage, McCraken (1989) contended that meanings come from a culturallyconstituted world, a physical and social world composed by many categories andprinciples of the current culture. In this process, there are many actors that play animportant role. Advertising is a way of joining together consumer needs and therepresentation of the culturally constituted world. As a result, the role of advertisingis to communicate the culturally constructed meaning of products to consumers.The second stage is the movement from celebrity to product. It is the moment wherethe product gains a personality during the transfer of celebrity’s meanings. This workis done by advertising agencies which choose the proper celebrity to represent theproduct with the proper meanings. After the meanings are transferred to the product,they should also be transferred to consumers (stage 3). According to McCraken, thislast transfer is to be done by the effort of the consumers who are willing to takepossession of the meanings. This movement will be achieved through cultural rituals. 30
  31. 31. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Exhibit 7 Meaning Movement and the Endorsement Process (McCraken, 1989)Finally, this model suggests that companies should investigate the real meanings ofcelebrities that are desirable for their product or brand. In fact, the effectiveness of theendorser will depend in part on the different meanings he/she conveys through theendorsement process.In his findings, Cotting (2002) had improved McCraken’s model by integrating duringthe stage 2 a new element. He claimed that the product has also an influence on thecelebrity’s image. Therefore, he added at stage two a two-way arrow betweencelebrity and product. 2.5 CELEBRITY SELECTIONThis section includes models and theories which use success attributes for thecelebrity selection.COMMON CELEBRITIES’ ATTRIBUTESA celebrity endorser strategy is not without a certain level of risk. That is, selecting aninappropriate endorser can reduce sales revenues and tarnish a brand’s. Because ofthe importance of selecting an effective celebrity endorser, the marketing literature isreplete with articles that evaluate which celebrity attributes correlate the highest witha successful endorsement (Amos, Holmes, & Strutton, 2008). 31
  32. 32. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009TrustworthinessMost of the literature sustains that trustworthiness is one of the essential attributesfor a celebrity to be credible. The credibility of the message is one of the mostimportant criteria when choosing a celebrity endorser (Knott & James, 2003). Indeed,the credibility of the source plays a considerable role in celebrity endorsement since itinfluences beliefs, opinions, attitudes, and behavior through the internalizationprocess. That explains why trustworthiness appears to have a significant impact onthe effectiveness of the celebrity endorsement (Chao, Whurer, & Werani, 2005).Trustworthiness represents honesty, integrity, and believability that an endorsercommunicates with a target audience (Erdogan, Baker, & Tagg, 2001). Therefore,trustworthiness is the degree of confidence that a communicator transmits to hisaudience (Amos, Holmes, & Strutton, 2008). If the degree of confidence is high, thenthe audience attitude changes effectively. Moreover, a degree of confidence is evenmore important if the audience has a negative position toward the offering. Insummary, an effective celebrity endorsement strategy requires a high level oftrustworthiness so that the transmitted message is credible.ExpertiseExpertise is another factor that lends credibility to the endorser source. Erdogan(1999:298) defines celebrity endorser expertise as “the extent to which thecommunicator is perceived to be a source of valid assertions.” Thus, the expertise ofan endorser stems from people’s perception of the knowledge, experience, or skillss/he possesses. Perceptions of this knowledge, experience, or skills influence how theaudience judges the offering’s quality. Therefore, individual perceptions of anendorser’s expertise are positively correlated with their purchase intentions and acommunicator perceived to be a source of valid statements can positively impactattitude change (Ohanian, 1990:42).Celebrity PowerPower is a relevant dimension in the process of persuasion. Power gives an endorserthe ability to bring another person to “respond to the request or position the source is 32
  33. 33. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009advocating” (Byrne, Whitehead, & Breen, 2003). Hence, the endorser should haverelevant power to administer rewards or punishments. This means that persuasionoccurs when the consumer comes to accept the endorser’s position in order to receiverewards or avoid punishments (Kelman, 1961). As a result, it signifies that thereceiver perceives the endorser is a source of power. It is prudent to note thatsuperficiality is one disadvantage of persuasion through the process of compliance. Infact, persuasion lasts only as long as the receiver believes that the endorser retains thepower of dispensing rewards or punishments (Junokaite, Alijosiene, & Gudonaviciene,2007).The principal persuasive power of a celebrity comes from their being popular, famous,recognizable, admired, trendy and fashionable. These attributes are prime reasonswhy a person achieves celebrity status, and why s/he has the power to influenceothers. Celebrity power can be so strong that in some cases the selection of anendorser is made almost solely upon the individual’s level of popularity.Match of Image and ValuesThe harmony of the match of the product/service offering and the celebrity endorseris explained by the “match-up hypothesis” (Till & Busler, 2000). This hypothesis positsthat the message of the celebrity endorser image and the offering message must becongruent in order to be effective (Kamins M. A., 1990). A match exists when the“degree of perceived fit between brand (brand name, attributes) and celebrity image”is high (Erdogan B. Z., 1999). Interestingly, the perceived match between thecelebrity’s image and values and those of the advertised brand bolsters perceptions ofthe celebrity’s credibility (Friedman & Friedman, 1979). This means that advertisersmust evaluate the characteristics of the target market, the celebrity’s personalitycharacteristics, and the characteristics of the product in order to attain the highestperceived degree of match.This congruence is essential to ensure that the consumer remembers the productinstead of only the celebrity. In fact, research confirms that if there is no relationshipbetween the celebrity and the product, consumers will remember celebrities rather 33
  34. 34. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009than products. This effect is called the “vampire effect” because “the celebrity hassucked the life-blood of the product dry” (Evans, 1988).Physical AttractivenessA body of research spanning three decades provides strong support for the contentionthat an individual’s assessment of someone else is highly influenced by their physicalattractiveness (Solomon, 1998). Canary and Cody (1994, pp. 72) state that: “we likeattractive people, we attribute positive qualities to them and find it rewarding whenthey appear to like us.” Moreover, they explain that: “we are more likely to complywith requests from likable, good-looking people than from people who are unlikableand unattractive” (pp. 301). It is for these reasons that previous celebrity endorserstudies report that an endorser’s physical attractiveness is a significant catalyst ofendorser effectiveness (Chao et al., 2005, DeSarbo and Harshman 1985, Ohanian1990). A meta-analysis performed by Amos et al. (2008) also echoed this samesentiment.Genuine SupportGenuine support is a relevant criterion of endorser effectiveness because it increasesthe audience’s credibility perceptions (Magnini, Honeycutt, & Cross, 2007), whoperceive authenticity in the celebrity endorser. This authenticity is related to thesupport of the celebrity for the product s/he endorses. Not only is this supportimportant in front of the camera, but also in his/her lifestyle (Magnini, Honeycutt, &Cross, 2007). A way to increase genuine support is to involve the celebrity in thecreation of the product’s design and features (Boone & Kurtz, 2005). Such celebrityinvolvement will motivate him/her to become a frequent user of the product, whichincreases the perceived authenticity of the endorser.ExclusivityThe exclusivity of a celebrity endorser is a criterion that enhances overall believability(Schiffman & Kanuk, 2004). When a celebrity endorses multiple products, theeffectiveness of their endorsements is diluted (Marconi, 1996). In other words, the 34
  35. 35. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009exposure of a celebrity endorsing different products or brands makes anadvertisement less credible. Moreover, people can become overexposed to acelebrity’s image, and for that reason will pay less attention.Exclusivity can also serve to protect a sponsoring company. That is, if a celebritymakes an unsuccessful brand endorsement, that failure can be transmitted to otherbrands that the celebrity is endorsing. Asking exclusivity to the celebrity in thecontract, therefore, can serve as insurance against negative associations.Reference GroupsReference group appeals have been used for decades by marketers to persuadeconsumers to purchase goods (Peter & Olson, 2002). By definition, reference groupsare persons, groups or institutions that a person uses as a point of reference. In thiscase, the reference point is a celebrity with values, behaviors, and lifestyles (Holbrook& al., 2008). These values are a guide to help consumers choose their own values andbehaviors. The celebrity, with his/her values and behaviors, can guide the consumerto purchase a product. In terms of celebrity endorsement strategy, the influence ofreference groups can be divided into two categories: relate and emulate.Reference group: relateThis reference group is usually referred to as membership reference group, whichmeans that people turn into formal members, with a clearly specified structure of amembership reference group. Membership reference group is a utilitarian referencegroup that influences consumers with rewards and punishments. People are expectedto behave in a certain way and are rewarded for, or are punished when they do notbehave the way they are expected (Peter & Olson, 2002). The use of a celebrity can bea strategy with the creation of a reference group influence by showing how a celebrityis close to the consumer. The reference groups are usually social archetype groups,which are groups of people that share a similar lifestyle. Consumers want to emulatethe celebrity’s consumption choice in order to assume part of the group’s identity.Most of the time consumers outside the group are fascinated by celebrities (Holbrook& al., 2008). 35
  36. 36. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Reference group: emulateThis reference group is usually termed aspirational, which means that people aspireto emulate the reference group. An aspirational reference group is value-expressive inthe sense that it has an effect on people’s self-concepts (Peter & Olson, 2002).Aspirational reference groups usually include cultural heroes, such as sportscelebrities, and film and music stars that consumers are willing to emulate. Childrencan be particularly impressionable by celebrities they wish to emulate (Holbrook & al.,2008).THE FRED PRINCIPLEThe FRED principle (Exhibit 8) is an acronym which stands for Familiarity, Relevance,Esteem, and Differentiation. This model is the result of a vast study based on 30’000interviews around the world to understand why advertising efforts succeed and fail.This model was developed by Amy Dyson and Douglas Turco (Illinois StateUniversity). Exhibit 8 The FRED Principle Amy Dyson & Douglas TurcoAs already introduced in the source attractiveness model, Familiarity is an importantattribute for a celebrity since it means that the celebrity is well-known and perceivedby the consumer as a person who is friendly, likeable and trustworthy. This is aboutthe celebrity’s recognition. Marketers must choose a celebrity who is recognized bythe target audience. The second component of the FRED principle is the Relevance, 36
  37. 37. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009which is by the meaning a synonym of the match of image and values. Indeed,relevance is the connection between the celebrity, the product and the audience. Thethird component is Esteem, esteem from the consumer to the celebrity. Consumersmust have respect and believe the celebrity to be influenced by him/her in order topurchase the endorsed product. Finally, Differentiation is a key component to reachcompetitive advantage. It is the ability of sending the right message in outstandingway. If there is no differentiation with the competitors, then the strategy is notworthwhile.These four components are the success factors of the FRED principle. These guidelinesare a good way of beginning to select one celebrity. However, there is no guarantee ofsuccess because each company’s objectives are different and individual evaluationshould be done.4F’sHamish Pringle suggests another model (Exhibit 9) for selecting the best famouspeople to do a brand promotion. He presents guiding principles that should bemaximized and optimized in order to do the right selection. These principles are thefour F’s: Fit, Fame, Facets, and Finance. Exhibit 9 Four Fs in using a celebrity (Pringle, 2004)Hamish Pringle recommends marketers to ask themselves the following questions(Pringle, 2004): “How well does this particular celebrity Fit in with the brand?” “How Famous is the star?” 37
  38. 38. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 “Which Facets of this high-profile person can best work for the brand profile?” “How much of this can the brand Finance?”The relationship between the star and the brand should be the more intimate so thatthe campaign is the more effective possible in the marketplace.SOURCE ATTRIBUTES AND RECEIVER PROCESSING MODESAnother approach on how the celebrity selection is done has been developed by Belch& Belch (2001) with the “Source Attributes and Receiver Processing Modes” (Exhibit10). This approach corresponds to the identification of the influence on consumers’attitude on behavior through different processes. Exhibit 10 Source Attributes and Receiver Processing Modes (Belch & Belch, 2001)Belch & Belch (2001) contend that for the success of the brand-celebrity collaboration,credibility is an essential element. Credibility is defined as the consumers’ perceivedexpertise and trustworthiness. Credibility has therefore a great influence on theconsumers’ acceptance. As already mentioned, internalization process is the processthrough which a promotional message has influence on the consumers’ beliefs,opinions, attitudes, and behavior since information comes from a credible source(celebrity) (Erdogan, Baker, & Tagg, 2001). When consumers internalize an attitude 38
  39. 39. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009or opinion, it will be integrated in his/her belief system (Kelman, 1961). Thecredibility attribute is crucial when consumers have a negative position toward theendorsed product. The target audience has to believe in the celebrity who is endorsinga product.The authors state that celebrity attractiveness has a positive impact on consumers.Attractiveness is considered in this case as physical appearance, intellectualcapabilities, athletic competence and lifestyle. It includes in the definition: similarityand likeability (McGuire, 1968). Consumers will more easily remember the brand if itis endorsed by an attractive celebrity. Persuasion is done through a process ofidentification. The result of this process is the consumers’ acceptance of informationfrom attractive endorsers because of consumers’ need of identification with suchendorsers (Kelman, 1961).The third process through which persuasion occurs is called compliance. Whencelebrity has power (Kelman, 1961), he/she is able to administer rewards andpunishments to consumers. Therefore, when a consumer accepts his/her influence hewill hope to obtain a favorable reaction or avoid punishment. However, in the case ofadvertising, Belch & Belch (2001) claim that an endorser cannot apply any kind ofsanctions. The power in advertising can be used with an authoritative personality asendorser. But, generally speaking, power is more effective as an attribute for a face-to-face communication.Q-RATINGSQ-rating is an approach that considers essentially familiarity and likeability of thecelebrity (Knott & James, 2003). The aim of this approach is to help establishing thevalue of celebrities. It has been created in USA for over 40 years by a researchcompany in New York called Marketing Evaluations, Inc. The results of the datacollected establish the consumers’ perceptions and feelings into a “likeability”measurement (Pringle, 2004). The Q-rating is defined as “the percentage of thosefamiliar with a personality who rate that personality as “one of my favorites” (on thequestionnaire)” (Knott & James, 2003). This survey is done twice a year so that therating is updated as much as possible. The survey is compiled by 1800 participantsfrom all ages. The data then can be sold to many entities such as television, public 39
  40. 40. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009relations professionals, advertisers, and agents. The criticism of this approach is thefact that it is based on a simple ratio of likeability and familiarity. Indeed, it can bringto misunderstanding and wrong interpretation (Knott & James, 2003). There are alsoother lists that try to set the monetary value of the celebrities (movies stars). There iseven the “Celebdaq”6 with an online index where people can buy and sell shares instars like in a real stock exchange (Pringle, 2004) (Exhibit 11). The Forbes Magazinemakes either celebrities’ rankings but in terms of their earnings over the past twelvemonths7. Exhibit 11 Pop Shares http://www.bbc.co.uk/celebdaq/lists/POPprofile.shtmlAll these rankings are snapshots that can change very quickly. Therefore, it is risky tochoose your celebrity endorser only relying on these rankings because it might beonly a flavor of the month. It would not be a wise decision. That is the reason whymany practitioners use their personal judgment most of the time when they choosecelebrities for advertising campaigns (Miciak & Shanklin, 1994).According to Agraval & Kamakura (1995), who evaluated the economical impact ofC.E. contracts, they observed through 110 C.E. contracts that the investment in apersonality has value in the eyes of the analysts. Consequently, the value of the stocksrises the day of the C.E. contract announcement. This explains why the right selectionof a celebrity as a spokesperson is crucial. The literature review is replete of different6 http://www.bbc.co.uk/celebdaq7 http://www.forbes.com/2009/06/03/forbes-100-celebrity-09-jolie-oprah-madonna_land.html 40
  41. 41. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009strategies for the selection. Firstly, companies should investigate the real meaningthey want to convey before selecting a celebrity. Depending on their strategies,companies will then choose the right celebrity selection’s model.SPORTS INDUSTRYYesterday Michael Jordan, today Roger Federer, who is going to be tomorrow’s sportsicon in the celebrity endorsement?The essence of endorsement in sports industry lies on timing. Indeed, timing is crucialbecause companies have to exploit the occasion when an athlete makes the rightperformance. Companies also know that public opinion can fade quickly, thereforetiming is the key. The characteristics of sports’ celebrities’ selection rely on otherfactors as well.In sports industry, endorsements are the result of three simultaneous elements: (1)Athletic accomplishment; (2) Public recognition of the spectacle; (3) Opportunisticmarketing on behalf of a company (Schaaf, 1995).Marketers usually look for the best athletes to promote their products. They look fordifferent characteristics, such as the success of the athlete, his/her visibility, andhis/her work ethic. These characteristics are definitely crucial in the athlete’sselection. The right selection implies different images in the celebrity endorsementprocess (Pemberton, Sports Marketing: the Money Side of Sports, 1997). First, thecompany’s image is involved by being endorsed by a celebrity. Then the image of theathlete is either involved in the sense that it will be associated with a certain type ofproduct. Finally, the overall image to be promoted has to be well decided and welldesigned, so that consumers get to the right point.For the company’s point of view, getting the right athletes implies doing a backgroundinvestigation, interviewing the athlete about the product, choosing an athlete willingto give 100% and able to honor the request. From the athlete’s point of view, it isimportant to understand well the terms of the contract and to test the product toendorse. Indeed, the product might not be functional and the athlete might loosecredibility. The athlete should give his/her full collaboration so that both parties canbenefit from the association (Pemberton, 1997). 41
  42. 42. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009This relationship between an athlete and the company reinforces the associationbetween three different key groups: (1) Fans; (2) Athletes; (3) The sport itself (Schaaf,1995). The driver of the whole relationship is money. Companies’ concept is alwaysthe same. They associate their product’s image by integrating a personality to build acompetitive advantage over the competition.Three basic characteristics of the endorsement business climate should be taken intoconsideration and not forgotten (Schaaf, 1995): Athletes are expensive, and risky. They are overpaid for doing promotional services and demand anything from the company. There are few athletes who get the deals, only the famous ones. There is a restricted selection. Celebrity endorsement enhances the high visibility sports.The fans want to identify with their favorite athlete, and this is one stage of thecelebrity endorsement strategy – identification. Afterwards, companies wait for theright timing to exploit the performance of one athlete for their promotional needs.A successful example of celebrity endorsement strategy done in 2007 was the launchof the “New Gillette® Champions Program” campaign8. The launch was done withthree new ambassadors by Procter&Gamble and it was a great challenge (Appendix4). Undeniably, they choose the three best-known and most successful athletes at thatmoment: Tiger Woods, Roger Federer, and Thierry Henry.[The Gillette name is synonymous with being the best. These three athletes have proven they have what ittakes to be a champion on the course, the court or the pitch. They were chosen not only for theiroutstanding sporting performances, but also for their performance off the field, in their charitable actions,support of social causes or their reputations as icons of true sporting values. ] Chip Bergh, President ofGlobal Grooming at Gillette.This was a huge investment but they won their bet. The campaign was a success. Itwas designed for more than 150 markets in the first year of the launch. The threeambassadors were consistently chosen for their sporting performance as well as fortheir behavior away from the game.8 http://www.ch.pg.com/presse/0701_gillette_champs/index_fr.shtml 42
  43. 43. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 2.6 Overview of models and theoriesThe review of the existing theories and models about celebrity endorsement showed areal focus on celebrities’ attributes. The attributes of the celebrity are in fact a crucialstep during the selection phase. Three attributes are particularly present in literaturereview: credibility, familiarity, and attractiveness. These attributes appear to be themost relevant while choosing a celebrity.Most of the models/theories claim that the attributes are related to specific processes.Indeed, celebrities’ attributes impact on consumers can be explained through theseprocesses, such as internalization, identification, and compliance. It is very importantfor companies to understand these processes before choosing the right celebrity.Different attributes lead definitely to different processes. This is the reason whycompanies need to be clear on what kind of strategy there are ready for.Some models focus only on few attributes which is not a realistic way of building acelebrity endorsement strategy. This is the case of the “Source Credibility model”which measures only the expertise and trustworthiness. Then, the “SourceAttractiveness model” demonstrates a very powerful attribute but still is not enoughto measure the celebrity endorsement effectiveness and moreover it might not leadevery time to a purchase intent. “The Product Match-up hypothesis” follows the sameproblematic of considering only few attributes. Finally, the “Q-ratings” approach isbased only on two attributes, which is not enough for companies to trust it at 100%.The FRED principle and the 4F’s are two models that give a quick overview of whatcelebrity endorsement should be constituted of, but it is a very light overview withfew attributes and few dimensions of the strategy. The 4F’s, in any case, includes alsothe financial dimension.A more complete approach is the “Source Attributes and Receivers Processing Modes”which goes from the attributes to the processes, but focusing too much on consumers’attitudes. 43

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