Dissertation 1

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IMPACT OF CELEBRITY ENDORSEMENT ON STUDENTS

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Dissertation 1

  1. 1. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS “Comparative study of Impact of CelebrityEndorsements on the Purchasing Behaviour of UK and Pakistani college/university students.” MBA THESIS Page 1
  2. 2. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISABSTRACTCelebrity brand endorsements are believed to influence the purchasing behaviour of consumersall around the world. It is relationship between the two variables i.e. buying behaviour ofcollege students and the celebrity brand endorsement is what this study embarks to fathom.Celebrity endorsements have always been considered worthwhile since organizations getsubstantial return by the campaigns for promotions backed by the celebrities. Huge amounts ofmoney are poured into such campaigns and the results are in shape of the buying patterns thatconsumers portray through their shopping visits. The students from prestigious universities arebrought in to the research through ample representation from the student body of both theinstitutions from Pakistan and UK. Karachi University in Pakistan is a state university with arich history and a sample of twenty has been analyzed through quantitative methods so as tohow much they are influenced by the discussed phenomenon.The university with which the comparison is drawn and analyzed is London School of Businessand Finance that parallels Karachi University in many aspects. The study encompasses all themotivations and stimulus, related to the buying behaviour, which the organizations capitalizeupon with celebrities in their advertisements. The questionnaire has taken care of including allthe areas that address the relevant issues with the youth of both the countries regardingcelebrity brand endorsements. Research methodology is based upon the quantitative analysis ofthe questionnaire responses by different statistical tools further explained in the methodologyand findings are thus listed in order to come up with substantial conclusions andrecommendations. Page 2
  3. 3. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS ACKNOWLEDGEMENTI would like to acknowledge the support of my research supervisor Mr. Muhammad IshaqueShaikh, whose valuable feedback has always helped me in keeping up with the best wayspossible to complete this dissertation since it’s so far my biggest achievement in academic life asthis is for every other student also. This piece of work is what I take pride in since I have beenable to explore an area of my interest and this couldn’t have been imagined that I would be ableto accomplish such a mammoth task since it is all because of the support from the administrationof The Institute of Business Administration, KarachiThis phase was rigorous and I contacted the supervisor whenever I felt the need and I am gladthat I always got a positive response that to my delight had also been productive as it can be seenthroughout this thesis. Page 3
  4. 4. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS TABLE OF CONTENTS CHAPTER 1: INTRODUCTION ………..71.1 Backdrop and reason behind the study........................................71.2 Purpose or objective of the study..................................................101.3 Problem Statement.........................................................................111.4 Significance of the study.................................................................12 CHAPTER 2: LITERATURE REVIEW2.1 Concerns regarding Brands...............................................................14 2.1.1 Definition of Brand...............................14 2.1.2 Brand Strategy.......................................16 2.1.3 Brand Identity........................................17 2.1.4 Brand Management................................18 2.1.5 Brand Audit............................................19 2.1.6 Brand Equity...........................................21 2.1.7 The Brand Equity Pyramid.....................22 2.1.8 Brand Strategy Development..................23 2.1.9 Brand Communications Plan..................24 2.1.10 Brand Experience....................................252.2 Celebrity Aspects..................................................................................25 2.2.1 Definition of Celebrity...........................25 2.2.2 Celebrity as stars.....................................27 Page 4
  5. 5. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS 2.2.3 All-seeing, All-knowing, All-powerful..............27 2.2.4 Aspects related to Celebrity...............................28 2.2.4.1 Celebrity Values (Celebrity –Product Match).....................28 2.2.4.2 Costs related to celebrity......................................................28 2.2.4.3 Celebrity controversy risks, popularity and availability.......29 2.2.4.4 Physical appeal to the celebrity............................................30 2.2.4.5 Celebrity – A brand user......................................................302.3 What endorsements entail?.............................................................312.4 Celebrity Brand Endorsements in both the countries..................31 CHAPTER 3: METHODOLOGY 333.1 Research Strategy.............................................................................33 3.1.1 Sampling Technique................................343.2 Objectives behind every research question....................................353.3 Choosing web based survey methodology......................................373.4 Reasons behind not choosing other methodologies.......................39 3.4.1 Disadvantages of telephonic surveys................40 3.4.2 Disadvantages of one to one surveys................403.5 Validity, Reliability, and generalisibility..........................................413.6 Statistical Methodology......................................................................41 CHAPTER 4: FINDINGS 434.1 Buying Motivation...............................................................................434.2 Reasons for celebrities endorsing brands..........................................464.3 Preference of Celebrity Attributes.....................................................484.4 Celebrity Personality influencing Brand Image................................524.5 Price Premium for celebrity endorsements........................................544.6 Brand Recall with Leonardo Dicaprio………………………………574.7 Respondents’ Profile.............................................................................60 CHAPTER 5: ANALYSIS AND DISCUSSION615.1 Hypothesis 1...........................................................................................615.2 Hypothesis 2...........................................................................................655.3 Analysis of open ended responses.........................................................68 Page 5
  6. 6. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISCHAPTER 6: CONCLUSION & RECOMMENDATIONS 73 CHAPTER 7: REFERENCES 77 CHAPTER 8: APPENDICES 81 TABLE OF CHARTSBuying Motivation Page 43For UK students 43For Pakistani students 44Reasons for celebrities endorsing brands Page 46For UK students 46For Pakistani students 46Preference of celebrity attributes Page 48For UK students 48For Pakistani students 50Celebrity personality influencing brand image Page 52For UK students 52For Pakistani students 52Price premium for celebrity endorsement Page 54For UK students 54For Pakistani students 55Brand recall with Leonardo Dicaprio Page 57For UK students 57For Pakistani students 58Analysis of open ended questions Page 68 Page 6
  7. 7. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISFor UK students 68For Pakistani students 70CHAPTER 1: INTRODUCTIONThe area of my research is specified by the topic: Comparative study of Impact of CelebrityEndorsement on the Purchasing Behaviour of UK and Pakistani college/university students. Thestudy is based upon my personal assumption that celebrity endorsements in advertisingcampaigns exercise a considerable influence on dictating and influencing mindsets of targetsegment. Being an international student, I believe that there’s a difference between the extents towhich the students are influenced by such campaigns having different backgrounds in terms ofnationality. CIA World Fact Book (2011) lists UK at 32nd position and Pakistan at 135th positionas far as the GDP per capita of both the countries is concerned, the difference is evidentlyyawning and gives credence to the case that I intend to make in this study. UK is a developedcountry that belongs to Europe. UK’s youth population, according to Grundy & Jamieson (2002)is composed of 12.1% (age 18 to 24). Page 7
  8. 8. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISOn the other hand, Pakistan is a country that belongs to Asia and is a third world country whichhas been struggling with its economic standing regionally as well as worldwide. WorldPopulation Foundation (2011) states that Pakistan’s population is composed of 64% youth (underage 25) which is a sign of vibrant nation. It’s a major chunk from the whole population which isbelieved to be more receptive and impressionable to the advertisements’ communication. So thestudents from a reputed university in both the countries would be taken into the sample of 40 inorder to compare their motivations regarding celebrity endorsements in the advertisementsprevalent in every medium we come across with in today’s world. The difference in the youthpopulation and economic backgrounds paves the way for undertaking the study with a goal inmind.1.1 Backdrop and reason behind the studyThe reason why this topic is of interest is based on the most prevalent phenomenon throughoutthe globe lately – the power of media, that I intend to gauge across the globe between thestudents of UK and Pakistan. The 20th century ushered in the advent of media that had not beenas vibrant and ubiquitous in previous era as they are today. OGuinn, Allen & Semenik (2009)explain that all the media networks are the tools which organizations employ to churn out profitsthrough creative advertising tactics. They go to the extent of declaring all the relevant gimmicksas branded entertainment. They portray the evolution of advertising till date and eventually hailthe first decade of the 21st century, i.e. 2000 onwards, as “consumer empowerment and brandedentertainment” era. Television and radio ruled the media landscape and the advertising embarkedon the journey to evolution that till date have been indispensible aspects of any business. Thecompetition has been fierce among the firms who have always been trying to assume major Page 8
  9. 9. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISmarket share and for this very reason, they always intend to grab and hold the attention ofconsumer. One of the many cogent gimmicks that advertising utilizes is celebrity endorsementsfor their respective products and services.Celebrity endorsement is effectively defined by the branding strategy insider (2010) as the wayof communication with respect to the brands, in which the celebrity speaks about the benefits andattributes of the brand relating it to his or her personal life experiences so as to render originalityin the messages communicated by organization to the consumers through different media. Thereare so many aspects which are prominent among the celebrities like reputation, name, lifestyleand personality that are also the elements of a brand, so the connection between the reputationand personality of the two can do wonders for the brand recall if the match is up to the mark.The celebrity brand endorsements, in view of Majumdar (2010), are effective and result orientedand he associates few aspects with the discussed technique of endorsements such as rapid recalland mass awareness, brand positioning, credibility of the advertisement’s message, and manymore. Majumdar (2010) believes in the sheer ability of brand endorsements to create a deepimpact on consumers’ thoughts so as to elicit purchases from them against something grandiosepromised by the reputed celebrities. The level of impact that the celebrities have on theconsumers’ mindsets has been established as a universal fact. Organizations start withpositioning their proposition and then targeting the consumer section that eventually prompt thefirms to come up with a creative strategy to communicate the message effectively to theconsumers. Tolani (n.d.) states that contemporary trends in advertising have been influenced bythe choices that the consumer is bombarded with now. He mentions internet marketing as theforemost concern in this part of the century that include viral marketing campaigns, socialmarketing, etc in which the role of celebrities could be used to the best interests of organizationalmotives to get the message across by in social terms as well.Young people have always been prone to the behavioural antics of the celebrities they admiresince their impressionable minds hold them in high esteem. This is the reason they emulate themand do whatever they perceive their favourite celebrities do to appear socially famous andacceptable. The case in point is of Australian Department of Health’s deregulation campaign of Page 9
  10. 10. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISnicotine replacement therapy (NRT) products in 1997 as quoted by Chapman & Leask (2001).The campaign was backed by the advertisements in which the famous Australian cricketer wassigned in as the endorser. The case is a testimony to the celebrity endorsements’ impact onyoung population of the nation that mostly include the students. The case study says that ShaneWarn couldn’t keep up with the terms of not smoking. The act of public smoking by Warne hada huge impact on the nation’s young section of population since he was looked up to as an idealathlete and the impression was being made in the minds of youth that smoking did wonders tothe athletic performance if it is done by Shane Warne. The excerpt from the AustralianDepartment of Health’s deregulation campaign of nicotine replacement therapy (NRT) case is asfollows:“But if he accepted an approach from a company wanting to make money out of helping smokersto quit, he was equally reprehensible. It would seem that, based on public reaction, the onlymorally acceptable path for Warne to have taken would be to have refused to have taken themoney.” I am of the view, in conjunction to the above mentioned, that youngsters take more of theimpression from celebrity brand endorsements. Advertising is overall an interesting phenomenonto delve deeper into but my research area is based upon analysing the difference, if there is any,between the buying behaviour or preferences of youth from both the countries so that we couldestablish the degree of contrast through an independent study.1.2 Purpose of the studyThe purpose of the research is to establish whether there’s a difference between the extents ofimpact that the consumers, from two very different countries, have on their purchasingbehaviour. This behaviour is measured in terms of the influence of advertising campaigns thatboast celebrities, who are well known in their respective spheres, endorsing the brands. Thedifference is emphasized on the basis of nationality keeping in perspective the age bracket of 18to 30 years that include both the graduate and post graduate students in the sampling frame. Thestudents are specified to be included in the sample owing to the fact that they are the most Page 10
  11. 11. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISimpressionable individuals who make extensive use of media through digital and social means.The study is independent in a sense that the personal observation is unique in this regard sincethe researcher has himself observed considerable impact on students in UK as well as inPakistan.The purpose of the study is justified in a sense that organizations worldwide spend major chunkof their marketing and advertising communications, and the impact that is created has alwaysbeen of more concern to the firms. Researcher intends to gauge the impact across the globe onthe students to make it clear for the interested stakeholders to get glimpse of a big picturethrough this modest initiative. As Taleja (2010) quotes numerous factors that the organizationsneed to reign in for the celebrity incorporation in their advertisements. The costs are not onlyrelated to the fee that the celebrities charge to act in the advertisements or for endorsing thebrands but also to the concerns that products and celebrities have to be matched in reputation,availability of the celebrity, and many other considerations.The study also serves its purpose in exploring positive aspects of brand celebrity endorsementsby recognising the legible impacts on the youth which is supposed to be the most receptive andmentally agile section of society. As far as the negative perceptions of celebrity brandendorsements are concerned, Bhandari (2009), in his article regarding endorsements’ worth,defines the celebrity brand endorsements as “nothing but lazy advertisement”. What caused thiscritique from Bhandari are the varied costs related to such endorsements as he states that thebrands are associated with the celebrities to communicate the message in best possible wayconsuming fraction of the time against the advertisements with no prominent celebrity, but whatturns this phenomenon ugly is the fact that most of the times the brands themselves could havebeen worked upon before endorsing them through any celebrity.These links and missing links are what this study has to consider, keeping in perspectives, theyounger generation’s motivations to purchase the brand with a celebrity’s endorsement.1.3 Problem statement Page 11
  12. 12. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISThe problem is related to the degree of difference between the level of impact that the celebritybrand endorsements has on the students’ buying behaviours from different national and culturalbackgrounds. The questions that this research work sets out to address are related to themotivations of consumers in relation to the celebrity appeal used in the advertisements:-In what ways do the students get influenced by the celebrity brand endorsements in theadvertising campaigns worldwide?-What is the level of attention that the celebrity brand endorsements grasp from the studentsection of a society?-Does the country’s economic and social setup practice the influence over the celebrity brandendorsements campaigns’ objectives?The underlying assumption is the study is that the difference is not there since the youth fromboth the countries have got ample access to the global media and they are always subjected to thesame kinds of celebrity brand endorsements most of the times. The study furthers this hypothesisin the best way possible through quantitative methods entailed by administering close-endquestionnaires among all the respondents. Questionnaire includes all the areas addressed relatedto the celebrity brand endorsements so the results and analysis do possess substance.Aim of the research and its objectives:The hypotheses or assumptions that are assessed through this research work are:Assumption 1:HoConsumer perception about the influence of Celebritys Personality to a Brand Personality inboth the countries is the same i.e. P1 - P2 = 0HaConsumer perception about the influence of Celebritys Personality to a Brand Personality inboth the countries is not the same i.e. P1 - P2 ≠ 0Assumption 2: Page 12
  13. 13. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISHoSame proportion of Consumer will pay extra money for the brand endorsed by their favouritecelebrity in both countriesHaSame proportion of Consumer will not pay extra money for the brand endorsed by theirfavourite celebrity in both countries1.4 Significance of the studyThe endeavor is significant in the light of the magnitude of efforts that the firms put intorealizing profits from their marketing communications, advertisements, promotional campaign,etc. Brands have always been significant as far as the marketing communication goes. The brandis emotionally oriented phenomenon that, in words of Herman (2003), is reoriented inaccordance with today’s competitive dynamism. Herman (2003) opines that brand is theexpectation and anticipation of how the consumers would be feeling through the experiences ofavailing the product or services.The sphere of branding is as vast as the landscape of marketing communications, and in additionto the brand, every other element in the topic possesses significance in a sense that celebrityitself has a legitimate definition and Haywood (2011) affirms this by portraying the relationshipbetween the celebrities and brands on the basis of reputation that they both mutually possess.Haywood states that firms have been successful in identifying the celebrity characteristics thatmatch with the characteristics of their proposition that include both products and services andsign those celebrities in the promotional campaigns to add glamour and emotional appeal in theadvertising message.The last thing, but not the least, is endorsement that can ideally be regarded as ethical benchmarkfor communications in advertising. Whether they are by celebrities or previous patrons of aproduct or services, endorsements do entail ethical responsibility and this is what makes this partvery significant. Thus the research as a whole is significant indeed as it will add value to the Page 13
  14. 14. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISknowledge base of the concerned segment by parallels in order to make the connection crisp,between the celebrity brand endorsements, being an integrally important part of marketingcommunications, and the buying behaviour of consumers who are the main focus of the firms.CHAPTER 2: LITERATURE REVIEWThe theoretical framework for this research work entails the detailed analysis of all thecomponents that make up the phenomenon of celebrity brand endorsements. The various factorsthat make up the whole concept are discussed in detail in accordance with relevant literature andresearches. The brand is the part which makes up the major chunk in this regard since everythingis exclusively attached to the brand recognition and personality makeup while celebrity makeshimself available for the brand for various reasons behind that relates to his or her own interestsand personality and other motivations. The research work has got two nationalities involved, i.e.Britain and Pakistanis, so the comparative analysis precede a considerable account of what they Page 14
  15. 15. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISboth differ in their knowledge of the subject and how are they projected to the media, i.e. to whatextent they are exposed to the celebrity brand endorsements. In this way the underlyingphenomenon of consumer buying behavior will also be discussed with respect to the literature.2.1 Concerns regarding Brand:2.1.1 Definition of BrandThe very important aspect in the phenomenon that this study has assessed is brand. Middleton(2010) regards brand as the other word for meaning and he defines the term in equivalent mannerby associating the brand with all the meanings that reside in hearts and minds of the consumersregarding a certain experience or product. The brand is highlighted as everything that thecustomers and potential customers think and feel about a particular product or service. ThePersuasive Brands (2011) defines the brand as a perception that consumer garners in his mindregarding the product or service and the collection of all the relevant perceptions and imagesmake up a set that is called brand. The consumers generally respond to the brands in connectionto the different aspects like logo, jingle in the ad, tagline or something of the same proportion butthe scope of brand is more that these factors and brand is regarded principally by the professionalas the promise or essence for the delivery of required experience or product quality to theconsumer. The brand management is an aspect that the businesses strives the most at. Thebranding per se is a vast subject professionally as well as academically. There are plethora ofarea and dimensions associated with the term that are discussed ahead in this literature review soas to create a substantial background of the study.Hahn (2007) is of the view that ever since the birth of man branding has made choices easy forthe customers and performance measurement easy for the organizations. It is now a commonperception that business performance is bolstered to a great extent by strong brands. Brands havethe power to elevate the image of company in the eyes of informed buyers as well as foruninformed buyers since brand makes the product prominent in the market place and makes itstand out of the lot. Hahn states that brand is ideally defined as the connection which is formed Page 15
  16. 16. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISon emotional and personal basis that it becomes very intimate with the customers who then.There’s a mention of accumulate experience in the texts that relate to the various aspects ofbranding.Hahn (2007) endorses the value of brand to appear positively before the consumers’ eyes sincethis is the tactic through which the virtues of loyalty, trust and satisfaction could be cultivatedbetween the brand and the end consumers. The credibility gives organization the benefit ofenhanced shareholder value and consequently the long run acceptance and growth in the market.Brand exudes a feeling and conviction that is believed to be a practice for business integrationand success. Hahn (2007) believes that brand should be communicated through every procedurethat the organization take part in and through every action and inaction that the company takes.Branding is an unstoppable phenomenon that needs to be weaved across all the organizationalelements in order to enhance the services and image at every customer contact point so as tocreate customer loyalty and advocacy.The branding is composed of few exhaustive disciplines that Hahn (2007) elaborates and thosedisciplines further have their own elements that contribute to the development and sustainabilityof a brand. What Hahn mentions as the disciplines are: Brand Strategy, Brand Identity, BrandManagement, and Brand Experience. The detailed discussion of theses disciplines, with relevantsources is as follows:2.1.2 Brand StrategyAhmad & Clifton (2009) states the importance of branding as a strategic tool in a sense that heequates brands with a lot more than devising logo and other communication gimmicks. Theauthors condemn the perception of early organizational managers who took branding as merely acosmetic approach to tinker with the logo and this was tantamount to saying bluntly that thecustomers are not of their concern. The branding is all about generating sustainable wealth that isthe core element of the strategy devised at strategic levels of all the companies worldwide. In thedecision making process of organizations, the brand adds the most valuable inputs so as to makeorganizations able to cut costs where necessary and to invest where needed. The major benefits Page 16
  17. 17. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISthat commonly are generated out of branding are the loyal customers and some extent of securitywith respect to the patterns of demand. Ahmad & Clifton (2009) cites one of the chief executivesas he attributes ultimate success to all those organizations where the brand is not only regardedas something to advertise and market but also is permeated throughout the modus operandi oforganizations at all hierarchical levels. Each and everything that the organizational member doesshould exude the brand as a holistic and universal phenomenon that should span over the wholeentity.Brand is strategized by the factors that Nissim (2005) enumerates as perception, value anddifferentiation. He elaborates the logic behind the connection between all of them by stating thatperception is the starting point in building a brand since whatever organization does, howeversmall or big, eventually becomes the part of the brand. The perceptions relate to the customerswho observe the behaviour of all the members of organization. Nissim exemplifies McDonald’srestaurants in the discussion and says that everything from the taste of meal to the behaviour ofemployee in the parking lot with a customer represents brand. The value is ingrained in theproduct and services that the organization offers amidst tough and dynamic competition in whichthe alternatives are abounding. What makes one stand out of others is the value that a certainbrand can offer without any parallel. Differentiation is an extended aspect of value in which thecustomers actually recognize the difference between the product offerings of various players inthe field or industry. Nissim emphasizes on creating a compelling story that could help the brandevolve and sore heights. Merely following suit with the industry trends is not an option to build abrand but what the branding entails as a strategy is some daring action to lodge a specializedcorner in consumers’ minds and hearts and this is where differentiation gets the wonders done.2.1.3 Brand IdentityTemporal (2002) defines and differentiates among various identities that the organization striveswith throughout its life span. He opines that it is very crucial to tell such identities apart fromeach other since they make up the reason for the organizational existence. Corporate identity isdefined by Temporal (2002) as an area related to the visuals of the company’s existence. Theexercises for corporate identity are undertaken by various companies on frequent basis. These Page 17
  18. 18. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISexercises bring innovation and changes in to the designs, logos and collaterals that areinstrumental to the image of the organizational brand. These endeavours are directed towardsmodernizing the aspects of branding but the core essence of brand remains intact. The brand isalways regarded with what it stands for making its personality perpetually recognizable. Theidentity is most of the time mistaken by the corporate entities to be changeable by these actionsbut the fact remains that changing logos and imagery do not change the brand itself as theagencies and consultancies. The quality is an aspect which is most primarily related to the imageof organization that ultimately make the brand identifiable so the quality remains at the heart ofall the functions in the organization and it needs overhauling not the logos and signage alone.Brand identity or personality is therefore defined in terms of entire notion that an organizationcarried with itself in its operations and deeds. The brand identity reins in the various componentsof quality, service, values, and the benefits that the product of a particular brand promises.Identity of a brand is what consumers perceive about the brand so that it personifies before themin a certain manner, for example charismatic in case of Mont Blanc. Brand identity is ultimatelyeverything that the company wants to be before the eyes of customers. Brand image is most ofthe times confused with the phenomenon of brand identity. Both the terms are different in asense that image is what customers actually perceive about the organization and this perceptiondoesn’t have to be in line with what organization wants it to be seen so there can be some gapbetween the communications that causes image to be different from actual brand identitycultivated by the organization.Airey (2010) further simplifies the aspect of brand identity and says that brand identity is theidentity that customers think of when the brand name is mentioned rather than thinking of theproduct or service related to the brand. He enumerates various brands, including TIME,Microsoft, Ford, Apple etc that appeared positively before customers’ eyes. Brand identity istherefore related to the way that customers look at the brands and this has been of huge concernfor the organizational heads ever since the emergence of dynamic competition since creating abrand identity has to do a lot with the investments necessary for achieving recognition rates butnevertheless organizations always try to put their best façade before the customers. Montoya & Page 18
  19. 19. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISVandehey (2009) puts the phenomenon of brand identity is disciplinary manner by declaringsome crucial elements that make up the official identity that is then communicated consistentlyto the target audience. The elements included company name, slogan and an icon which all makeup the organizational brand identity.2.1.4 Brand ManagementBrand management is a discipline that takes care of everything mentioned above and all theaspects that relate to the overall branding of the organization. Phillips (2004) elaborates thebrand management as the way to build brands by putting customer needs at the centre of theorganizational spectrum. The brand management is about differentiating the brand andinculcating emotional connections with them so as to benefit the organization in the very longrun.Developing a brand entails rigor and persistence over a period of time so that the endeavourscould bear fruits. Entrepreneur.com (2011) represents branding as a fully fledged discipline thatpossesses concrete decisions regarding: - Mission of the organization - The benefits that products and services offer to the target market - Prevalent image and perception of the customers from the very beginning - Aspirations of the company regarding the level of quality they want to be associated withThe process of developing a brand starts after realizing the above mentioned and recognizing theneed of modern times. Phillips (2004) has further expatiated upon the brand management andsays that the customers are the base of understanding the brand whether it’s the essence oranything related remotely to it. The other customers are the internal stakeholders that speciallymake up the employees of the organization. All the perceptions and concepts that all the Page 19
  20. 20. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISstakeholders garner in their mind about the image, reputation and reliability of the stakeholderscan be exploited in order to add more appeal and value to the branding aspect.The factors and images are abounding and can be explained as the level of familiarity ofcustomers regarding the market competition in the relevant industry with the company ororganization, the extent to which the perceptions are positive or negative regarding the brand, thelevel of depth with which the views regarding the organizational brands are held by theconsumers – which is something very important regarding the creation of emotional appeal withthe brand. The perception also is counted regarding the chance of brand strength afforded to itthrough barriers and existent opportunities. The management of the branding aspect requiresrigorous work on the part of relevant managers who have to make sure that the brand hasconsiderably positive impact on the consumers, their decisions and lifestyles, and ultimately howprofound the impact is there on the organizational financial position.Brand Management has come up with different concepts of branding that helps to evolve andsustain the brand over a long period of time. Few of the concepts are described below:2.1.5 Brand AuditBrand audit is entirely a customer based phenomenon that is basically the assessment of brand’shealth and hygiene. The brand audit is different from the normal audit that has financialunderpinnings since it’s carried out internally, as Phillips (2004) quotes. In the audit, managersand relevant workforce strive to unearth what sources have been adding to the brand equity andconsequently ways to capitalize upon those to enhance and leverage equity. Brand audit is allabout exploring the current trends and information regarding a particular brand and this auditdoes entail a primary research. This brand audit serves the organization In a way that wholebrand strategy is then predicated upon its findings. The relationships between brand andstakeholders are of importance and audit connects information of such relationships with thedevelopment of brand on strategic levels. Page 20
  21. 21. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISPhillips (2004) enumerates the following steps that make up the whole brand audit which areexplained as follows: - The perusal and analysis of the data both of primary and secondary nature, through which the trends and impacts of the brand could be elicited on the industry as well as on the consumer. - The reviews and analysis also are carried out in order to know the impact of the competition prevalent in the industry. This entails the data collection on the crucial competitors and the market dominating firms with their own brands. - The internal stakeholders are assessed through different techniques of interviewing in order to know what the managers and sales force think of the business and the brand being assigned with the huge responsibilities to manage it. - The impact is very important with regard to the influence of media, analysts and other constituencies that are constantly in touch with the internal and external stakeholders involved in building up the brand. - The customers, as mentioned before, are crucial for the branding decisions by the organizations so they are to be researched rigorously time to time in order to disclose what thoughts and perceptions the customers keep with them related to the particular brand. For this very purpose, the customer research is regarded most important as the primary data on which the future actions could be predicated upon. - The research is also thoroughly carried out regarding the connection of sales revenues with the past trends. The factors are recognized that drive the revenues and point out the potential sources of danger in line with the analysis. Each and every aspect of consumer demographics is also researched in this regard to minimize the risks as much as possible. Page 21
  22. 22. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS - The analysis of strengths and weaknesses is carried out along with that of opportunities and threats so that the marketing 4 Ps could be brought in sync with the extracted. The brand is strong with such vigorous research behind to bolster its actions. - The impact is really important to be analyzed with the consistency levels of the brand and this is carried out through assessing the attributes related to the product’s strengths and weaknesses, the strategy of pricing and positioning in the competitive environment, the strategy related to the distribution, and the factors related to brand personality and characteristics.2.1.6 Brand EquityPhillips hails the differentiated bond as brand equity, an area that relates to the customers’loyalty, profitability, and shield against negative word of mouth or competitive abuse. These allthe aspects are in terms of original and valuable asset with financial and tangible outcomes.LePla, et al (2003) expands upon the concept of brand equity and says that brand equitymeasurements do allow the quantification of the nature of relationship the consumers have with abrand. The most common perception in this regard is that the returns on the company’sinvestments are highest when the deep relationship is created. Hansen & Christensen (2007)categorizes the brand equity into three: - What consumers think and feel i.e. consumer based. - What’s the behavioural response that brand is getting. - Market based equity that is gauged in financial investments and returns. But this study is related to the mental brand equity since the buying behaviour is to be gauged against the emotions and feelings associated with different brands.2.1.7 The Brand Equity Pyramid Page 22
  23. 23. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISThe diagram shows CBBE (Customer Based Brand Equity) that Keller (n.d.) defines as:“The differential effect that brand knowledge has on consumer response to the marketing of thatbrand”From the diagram, it can easily be conceived that the pyramid assess the level of equity thatbrand possesses. It starts with mere identity and familiarity with any aspect of the brand then if isfollowed by the discovery phase where consumer actually explores the brand. The response afterthe exploration determines the fate of relationship that is cultivated between brand and theconsumer.2.1.8 Brand Strategy DevelopmentAn aspect that is actually developed under brand management discipline, according to Phillips(2004), it includes the following factors: Page 23
  24. 24. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS - The brand vision is the essence that could be elaborated as having the connection with the company’s very mission and objective. The brand pyramid is also the product of such factors according to which the organization decides up on its brand positioning keeping in perspectives, the relevance and remembrance. - The brand’s positioning and target is to be carried through a fine tailored channel of communication to reach to the particular audience that is targeted for the communication of the brand. The desired level and pattern of imagery and perception in the minds of consumers is the name of the game that has to be in sync with the organizational over all and long term aspirations. The endeavours behind positioning are very much crucial since the next and subsequent messages and branding area are predicated up on this positioning. The uniqueness renders appeal to the brand which attracts the target consumers through the messages spread all over the targeted audience. The positioning area has the direct influence of the research carried out regarding the stakeholders. All the concerns related to the SWOT analysis for brand are duly addressed by the design of the research herein. - The systems related to brand elements and identity draw their substance from the vision and positioning once accentuated by the organization for its brand. The recommendations for these systems include the overall imagery and look of the brand, the signage and different colors used on the packaging, the material pattern that is distributed for consumers’ information and knowledge, the web pages and related web based application and a comprehensive guide for the consumers regarding the style that the brand possesses and all of these elements are required to make the identity and elements worthwhile.2.1.9 Brand communications (Plan)The organization, according to Phillips (2004), has always been subjected to the vagaries ofcommunication with the customers. The events and instances of such communication areabounding and it is the concern for the company to get its message across in the most efficient Page 24
  25. 25. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISand effective manner that could reach to the target consumers. There is a huge number ofcustomers and stakeholders that the company wants to address but what they should keep inperspective is that every interaction with the customer is an opportunity to make him or herfascinated with the message and communicate it in an agreeable manner. Brand communicationsare decided by the strategic people in the firm since it follows a strategy in order to cut throughthe clutter and reach the target market.A comprehensive strategy for the brands communication is composed of step by step proceduresthat include: - Identification and prioritization of opportunities that the “touch points” provides regarding their ability to enhance brand relationships and brand equity. - Recommendation as to which messages should be communicated at every touch point and the most appropriate and important steps to communicate. - Identification of key touch points can be carried out at the following instances: • Pre-purchase • Post-purchase • During-purchase This is done through IMC (Integrated Marketing Communication) that coordinates all the aspects of brand and enables concrete brand strategy development.2.1.10 Brand ExperienceJohnston (n.d.) writes that brand experience can be evaluated with respect to the queries relatedto the expectations of the customers, their experiences with the brand in actual, the emotionalconnection between customers and brands, the stories that they can tell each other and the waysthrough which more stories and interaction levels can be created through the prevalent culture Page 25
  26. 26. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISassociated with the brand. This approach has been holistic in a sense that it engulfs all thefeelings, emotions, and perceptions that the customers have for a brand. Clifton & Ahmad (2009)defines the brand experience very clearly as they state that customer should be able to experiencethe brand in each and every move of the organizations’ elements.They are of the view that brand experience should not be regarded something inferior to thefundamental organizational experience of the customers and other stakeholders. Clifton &Ahmad (2009) ideally quote ANA (All Nippon Airways) as saying that we do not any attentionto the details just because it’s written in the training manuals but it is in our DNA.The discussion over brands and branding has enabled us to understand how grand thephenomenon is and what resources are spent in order to build a brand let alone sustaining it inthe long run. The brand celebrity endorsements can be understood more deeply through anequivalent discussion regarding celebrities who play crucial roles in such endorsements ondifferent media.2.2 Celebrity Aspects:2.2.1 Definition of CelebrityLeslie (2011) defines the celebrity with a contemporary touch since the world has now stepped into the 21st century which has revolutionized all the aspects related to brand, celebrity and everyother relevant factor. He writes that celebrity leads a public life and is always involved in somework or activity with the common people present all around. Celebrity appeals to the public sincehe has accomplished what the public regards as sublime or extraordinary. Thoseaccomplishments actually make him famous and his personality is carved out in the public’sminds and hearts. He appears very frequently on the media and sustains a considerable presencebefore the eyes of public. Celebrity has the power to connect with the public or individualsspecifically since he or she caters to their desires and fantasies, so there is an emotionalconnection on conscious as well as subconscious levels. Page 26
  27. 27. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISTaleja (2010) defines celebrity in broader terms as he says that these are the people who arepopular with the common people. The celebrities have something in common with the peoplethat former have the knack to capitalize upon reaching more to the people with certain level ofemotional touch and attractiveness. The people aspire to become one that they admire in theshow business and keep themselves updated with everything going on in the industry withparticular celebrity of choice so the celebrities enjoy high level of awareness against those whodo not appear on the screen of the TV or cinema.Celebrity is the term that relates to any individual who is famous among the common citizens orpopulace. They could be actors for example Tom Cruise, Ashwariya Rai Bachan, Jet li etc. theyall are recognized by the people worldwide because of their work rather than only the productsthat they endorse. Models and supermodels are there who, most of the times are, the people fromsports industry, for example Sania Mirza, Maria Sherapova and Tiger Woods. Entertainers arethere with the famous names of Oprah Winfrey, Conan OBrien and Omer Sharif. Singers are thecelebrities who enjoy higher recognition among the audience like Madonna, U2 and Green day.The list doesn’t stop here but there are plethora of businessmen and politicians who havegarnered the status of celebrity and they do dictate minds and hearts of their fans to a greatextent, for example Ambani Brothers from India and Obama, the President of U.S.Taleja explains the moments and frequency of celebrity’s appearance and says that the celebritiesinteract with the people in several ways through various platforms available in different media.They appear before the general public, they appear on the screen in different shows and in theirresidential areas with the people residing in the vicinity. The inauguration ceremonies are thedomain for the celebrities as far as gigantic multinational and corporations are concerned whichalso get the celebrities on board for endorsements. Celebrities are there in print media andsometimes they spill the beans about their lifestyle that the common people frequently lookforward to receiving by hook or by crook. So the level of fondness is there with the celebrities,which is above normal proportions most of the time in this whole world.2.2.2 Celebrity as stars Page 27
  28. 28. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISLeslie (2011) elaborates the fact that there is a subtle difference between what people commonlyrefer to as celebrity. He is of the view that the terms famous, well-known, celebrity and starshould not be confused with each other since the celebrity is someone who has achieved famethrough merit, accident or even through noxious elements. But the stars are people who haveexcelled in the fields of arts and entertainment only. Leslie (2011) has attempted to make peopleaware of how to look at the individuals in order to regard them as celebrity:Eight categories of Celebrity:Politics and government Rulers, politiciansArts Writers, artists , musiciansScience and medicine Scientists and physiciansEntertainment Film and televisionAcademic Teachers, philosophers and scholarsBusiness Entrepreneurs and industrialistsReligion Religious figures and leadersGeneral Public Newsmakers and reality show participants2.2.3 All-seeing, All-knowing, All-powerfulLawrence (2009) refers to the celebrity in a manner that borders on deity since he states that theyinfluence a great power over all the aspects in a common man’s life. The celebrity has literallypermeated into every part of the culture we live in and we breathe and feel celebrity in the thingswe normally do thanks to the powerful media. People look up to the celebrity as their favouritestars who exude an aura of magic and charisma. Celebrities are set apart from us just due to thequality they possess as distinct individuals having unique personalities that common people mostof the times try to emulate through different actions.2.2.4 Aspects related to the celebrityTaleja (2010) identifies few of the factors that should be counted in regarding the appearance ofa celebrity in brand endorsements. Those areas are: Page 28
  29. 29. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS2.2.4.1 Celebrity Values (Celebrity-Product match)Using celebrity in the brand advertisements is related to the transformation of the product inaccordance with the values that the celebrity endears with. Because of this value factor, one canthrow a question to the firm regarding the guarantee the firm has about positive impression of thecelebrity to last for long term in the future. The worry is whether the level of popularity of theparticular celebrity would sustain for the long time. The other concern that could appeardetrimental for the brand’s own integrity is the blemish on the integrity of the celebrity whoendorses it. The private life is not before the public eye as much as the professional life is so thescandalous deeds could make the brand run for life. The question can be asked with a tinge ofsarcasm if any company would pay Michael Jackson to endorse its brand after knowing him as apaedophile? Celebrity values are surely transferred to the products, services and causes that theyendorse with zeal. Now Public (2010) states that the pop star Alicia Keys has been active in thecampaign titled “dying digital” for the awareness of AIDS. So the celebrities participate in thecampaigns to lend the product, services or cause their values to induce recall and create tangibleimpacts.2.2.4.2 Costs related to the CelebrityCelebrities charge handsome amount of money to the firms for product endorsements that is whythe phenomenon of celebrity brand endorsements enjoys a crucial place in over all integratedmarketing communications. The great companies like Coca Cola can afford to use famouscelebrities but the small companies run the risks if they use any celebrity whose following ismassive. If the celebrity doesn’t help the buying behaviour of buyers to enhance then the smallcompanies could easily go bankrupt. Jagdish & Wagner (1995) writes in the same vein that thetactics related to the branding with celebrity are costly to the organization since the high statusand reputation of the celebrity calls for high incentives from the organizations. In exact words ofJagdish & Wagner (1995) regarding the brand celebrity endorsement: Page 29
  30. 30. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS“A contract may also include a profit sharing plan. Firms often build special and costlyadvertising campaigns around celebrities.”So the investments in this area have to be huge and the yearning is also high as far as the salesrevenue projections are concerned.2.2.4.3 Celebrity Controversy Risk, Popularity, and AvailabilityThe controversy risks linger around the celebrities’ personal and professional lives. Taleja (2011)mentions an appropriate example of Salman Khan who crushed a man to death under his Pajerosince he was drunk and unconscious. This created a controversy around the celebrity and peoplecondemned this act of him in very harsh words and actions. The brands that he endorsed at thattime got the bashing just because they were proudly associated with Salman Khan so thebehaviour of celebrity directly translated into the expectations that people had with the particularbrands. Tiger Woods, in view of Sridhar (2010), had been an ideal guy whom the householdslike as much as the professional from every corner of the world. A good man having an idealhappy family he was an asset for the companies who used him for their brand endorsements andinvested heavily in the related advertising campaigns and compensating Woods decently well.Sridhar (2010) now comments that the issues of infidelity issues change the image upside downof the celebrities since the victimized celebrities are not considered to be unerring now and areregarded as the individual who can make their mistakes being a normal human being.This is the perception’s volatility. The image of the celebrity changes and therefore hurts thepeople but that damage is very less since it is only influenced by the collapse of emotionalconnection. But the companies who use Tiger Woods as their brand endorser got the kick instomach that was harder than what people felt just because companies had their majorinvestments at the back of this celebrity to endorse their brands. The popularity engenders brandrecall as the ratings for the celebrity are higher and they get transferred to the brands as well. Theavailability of the celebrity is also of the concern to the companies since it’s very difficult to geta perfect match between a brand and a celebrity so the idiosyncratic demands of brands call for Page 30
  31. 31. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIShigher involvement of the relevant people in defining the brand and linking it to the brands’attributes.2.2.4.4 Physical Appeal of the celebrityTaleja (2011) comments that there’s an established brand of Levi’s have the celebrity namedBipasha Basu from Indian film industry so the attractiveness of her makes an appropriateconnection with the brand Levi’s. There are many other brands that Taleja (2011) mentions likeWrangler and Timex Sunglasses which get approved by the celebrities who are famous for theirphysical attractiveness and the link between the brands for physical wearing makes thosecelebrity click.2.2.4.5 Celebrity - a Brand UserKatyal (n.d.) says that the celebrity has to be cautious about what he endorses and what he usesin his daily life especially before the public for whom he was used to carve a brand image. Hewrites that there once emerged an issue with Sainsbury’s and Catherina Zeta Jones who wassigned to endorse the recipe product of the company. Catherina Zeta Jones was unluckily spottedat Tesco shopping for her daily chores. The same thing happened with Britney Spears and coladrink when she once was noticed with another cola in her hand and was photographed.2.3 What endorsements entail?Venture Republic (n.d.) lists out the few very important concerns that relate the celebrity withthe brand through proper means. There are the essential components of endorsements that are asfollows: Page 31
  32. 32. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS - Celebrity’s appeal and attractiveness: The impact of the celebrity is positive on the brand endorsed by him if the celebrity’s own image is immaculate in the eyes of consumers. The brand recall can be increased through using the appropriate celebrity for the brand. - Celebrity’s acceptance and credibility: The level of trust that the celebrities have among the consumers is an important factor to consider since the trustworthiness and brand appeal by relevant celebrity are directly proportional. The branding is the essence that stands out in the clutter and the endorsement by a publically amenable celebrity can have positive impact on that essence so as to increase the level of recall. - The transfer of meaning: there is a certain level of compatibility required between both the celebrities and brands so that the meaning could easily be rendered to the brand. The celebrities possess personalities that ultimately have some meanings and these meanings are aspired by the organization to be transferred to what they have to provide to the consumers.2.4 Celebrity Brand Endorsements in both the countries:The celebrity brand endorsements in UK and Pakistan are through same measures and media.Pakistani population and students are more swayed or influenced by the actors and actresses thatbelong to the neighbouring country of India. The influence is so much so that people in Pakistancan recall Shahrukh Khan more frequently than any other actor belonging to Pakistan’s own filmindustry. The level of recall in UK is related to Hollywood actors mostly since the actors and Page 32
  33. 33. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISactresses are noticed and followed fervently by the people there specially the students who areusually awe struck by whatever the celebrities of their choices do and like to do.CHAPTER 3: METHODOLOGY Page 33
  34. 34. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISThe secondary data collected and review in the previous section of introduction and literaturereview provides an ample platform for the development of a cogent methodology.3.1 Research Strategy:The methodology for this research study is based on the survey which will be conducted througha questionnaire that includes questions relevant to the literature review. The features of surveymethodology are defined by Enanoria (n.d.) as he says that the survey methodology is themethod for gathering information as scientifically as possible. The respondents in the surveybelong to a sample that is drawn in accordance with the objectives of the particular researchstudy and they all are representative of the bigger population that they reside with as socialmembers. The tools that this research will employ to get the responses required is thequestionnaire which is defined by Key (1997) as the tool for extracting out various factors formthe respondents’ mindsets which ultimately are related to the attitudes and behaviours ofconsumers towards the particular topic. The questionnaire is able to elicit the responses in eitherthe structured manner with specific and close ended questions or in an unstructured way throughopen ended questionnaire in which the sequence of the questions might be variable. The peoplefrom whom responses are extracted are relevant to the topic since the efforts are made toapproach the target people in the sample with the questionnaire.The questionnaire is designed in accordance with the various factors that play their role in thearea of celebrity brand endorsements. The approach to the data collection is bases uponadministering the questionnaire through the internet, i.e. through Survey Monkey and Facebook.The sampling will be based on convenience of the respondents since they are all universitystudents who always have an access to the internet facilities in the campus or their homes andthey will fill the questionnaire in accordance with their convenience. The sampling technique isbased on the stipulated sample of 20 from each of the two universities in UK and Pakistan whowill be approached on line in accordance with their availability at particular time. Page 34
  35. 35. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISThe questionnaire will be posted on line with the help of Survey Monkey, an online or web basedapplication to help researchers collect and analyze the data collected through questionnaires, andAlto (2011) describes Survey Monkey as the leader in the industry of on line survey solutions.The history behind the web based Survey Monkey is based on many success stories that havebeen born since its inception in 1999. The benefits are multifarious since millions of respondentscan be approached and elicited the responses from. The application is substantially considerablefor the researchers who want to approach the people from any corner of the world. The insightscollected through the web based questionnaires on Survey Monkey enable the researcher to makeinformed decisions. The significance level of Survey Monkey can be gauged with the fact thatFortune 100 companies have availed this facility for their research work spanning over a longtime now based over the decades. The common and ordinary entities and organizations areevenly served by this web based application along with the university students who could reachthe respondents automatically in accordance with the convenience of the respondents.3.1.1 Sampling TechniqueThe sampling is based on the phenomenon of convenience since the students have always beenbusy on and off campus so the time preferences couldn’t be matched for meeting for thequestionnaire administration physically so the online survey is bases on the phenomenon ofconvenience sampling. The sampling technique is based on the stipulated sample of 20respondents from the Karachi University in Pakistan and London School of Business andFinance in United Kingdom each. The sampling is also based on snowball sampling since therespondents are asked to refer the on line survey to all those who are knowledgeable and savvyabout brand celebrity endorsements.3.2 Objectives behind every research question: Page 35
  36. 36. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISThe survey is conducted through the question sheet that includes both close and open endedquestions so as to elicit insightful responses of sample students in the universities from both thecountries. Same questions will be asked of all the respondents whether from UK or Pakistan inorder to keep the comparison up to the mark. Following is the explanation behind every question:Question 1: What motivate you to buy a particular product?The question is simple in terms of understanding what factors influence buyers or consumers fora decision to purchase a particular brand. The connection of the factors is there with the decisionsince the consumer behavior is believed to respond to a certain stimulus offered by the brand.This question draws out the very innate habit of the respondents regarding their motivation forpurchasing a brand. The options include the factors of “discounts”, “value for money”, “productinnovation”, “attractive advertisement”, celebrity endorsing the product” and “past experienceswith the brand. So the aspect of celebrity endorsement will gather due response rate accordingly.Question 2: Why does a celebrity endorse a brand?This question is in relation to the various factors of celebrity brand endorsements mentioned inthe previous section of literature review. The motives behind the celebrity brand endorsementcampaigns range from the first option to the last mentioned with the question and the perceptionof respondent of consumer will be gauged in accordance with those factors. The respondents aregiven a chance to substantiate why they think the particular way in the following lines. Thisquestion sets the tone for further questions in the interview and the respondent will get an idea ofwhat and how he or she is going to respond. The options include “to create appeal”, “to motivatepurchase”, “celebrity uses the brand”, “to create an image for the brand”, so it can be noticed thatall the connection points between the celebrity and brand are taken care of with the customer’sattitudes in perspectives. The area is also specified for the responses other than the providedoptions so that further connections could be explored.Question 3: Rank the following attributes of a celebrity on the scale of 1 to 6in accordance with their influence over your purchasing Page 36
  37. 37. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISCelebrity endorses a brand and transfers his attributes to that product or brand but there areseveral factors that work behind the formation of consumer behavior regarding the purchasedecisions. This question will be able to equip the researcher with the information related to theaspects that the respondents think influence their decision on a defined scale. The options withthis question include the factors like “name”, “message”, “lifestyle”, “reputation”, “credibility”and “personality” and these all are ranked by the consumers so that the researcher could inferwhat is the most and the least considered attribute related to the celebrity which makes themattend to the advertisement containing a celebrity for endorsement.Question 4: Does the celebrity’s personality always influence the brandpersonality and create a match?This question may touch upon the intrinsic value of celebrity brand endorsements in the eyes ofobservers, the respondents or consumers herein. Respondents can elaborate upon the choice theymark for this question. This is a question structured with the options of “yes” and “no” and forthose who are unclear might go with the option of “don’t know”.Question 5: Will you pay extra money to buy the product endorsed by yourfavourite celebrity?The question draws out a response which relates to the choice of the celebrity regardless of whatthe brand or product is. This will gauge the motivation levels of the respondents to pay more thanthe original amount for a product just because of the celebrity that he or she likes the most oremulates. This question also is a simple one with three options of “yes”, “no” and “don’t know”.Question 6: Which is your most favorite advertisement with a celebrityendorsing a product in it?An open ended question that will elicit the very exact response related to a brand endorsed by acelebrity. The most favorite advertisement will be able to give an impression to why the Page 37
  38. 38. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISrespondent remember the campaign whether the celebrity is of choice, the brand is of choice orthe respondents got impressed by the connection between brand’s and celebrity’s personality.Question 7: Mark the common brands that you can recall with the celebritiesmentioned below?The question will have the same impact over the students’ response from both the universities(countries) involved since Leonardo Dicaprio and Amitabh Bachan have certain recognitionlevels worldwide both in the east and west. This question will extract a response related to boththe celebrities’ endorsement contracts that people exactly recall or have observed around in themedia and market place. The options with the name of Leonardo Dicaprio are “Hybrid-limousine”, “Krieger Watches”, “Emporio Armani” and “Tag Heuer” while with the name ofAmitabh Bachan the name of the brands are “Cadbury”, “ICICI Bank”, “Dabur” and “Parkerpens”Question 8: Which celebrity(s) does this brand remind you of?The brand Tag Heuer is intentionally mentioned since both countries’ consumers are well awareof the brand in connection with the celebrities from both the regions (Pakistani students beinginfluenced heavily with the Indian Bollywood celebrities – Shahrukh Khan with respect to TagHeuer). It’s an open ended question and will be attempted promptly by the respondents if therecall of brand with the celebrity is high.3.3 Choosing web based survey methodology:The online methodology for survey through on line questionnaire is in sync with the samplingtechnique that is convenience sampling. The method is chosen in relation to the fact that theuniversity students both in Karachi University and London School of Business and Finance arenot able to be approached with convenience of both the researchers and students. The survey willbe uploaded on internet i.e. Facebook and other social media sites with the help of SurveyMonkey. The internet is a medium that makes the efficient research possible through various Page 38
  39. 39. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISwebsites offering their corporate services for example Survey Monkey in our case. The onlinesurveys have definite benefits that are, in accordance with UTexas (2008), described below: - The data collection process is efficient and the aspect of quality is taken care of. The strengths are related to the ease and facility of the data collection with small period of time and from anywhere in the world through the internet access. The researcher is absolved of the responsibility to enter and process the data manually after creating the questionnaire. The efforts from the researcher are enough till the time he creates the questionnaire, recruit the respondents and distribute or administer the questionnaire electronically. The facility of web base surveys is that there is almost no time spent in filling the questionnaires and millions of responses could be collected in the matter of days only. After the completion of the data collection period the data could easily be extracted and processed through different computer softwares, i.e. Microsoft Excel in this thesis’ case. The validity is also the factor that web based questionnaires also obviate from the agenda of problems listed by the researcher since the data is validated automatically. The format and pattern of the responses could be spotted it they go awry and the respondent is notified accordingly so that no questionnaire and no question is filled in accordance with the respondent’s whims. The error message is generated by Survey Monkey when the response gets out of the defined or prescribed range and the respondents are asked to resubmit the responses. The only concerns that should make the researcher worrisome are missing responses before the analysis of data could be carried out. - The questionnaire provides the level of required flexibility on internet. The data collection through web based applications can offer a lot to be flexible. The questions can be made keeping in perspectives, the respondents whom the researcher draws in to the sample. The flexibility approach cab be best used when the information is required by the researcher to be collected in stages where the first stage or the screens of the questionnaire could collect the background information over a subject and then the same information is used in making of graphs in the next pages or screens so that the responses could be analyzed in compliance with the concepts and perceptions that the respondent might Page 39
  40. 40. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESIS hold prematurely. The variety in responsive nature of online survey adds on to the appeal for its usage in the research areas and the efficiency and quality of the responses are enhanced. - The date can be gathered on deviant or rare phenomena. The population can be reached even if the sections are targeted keeping in mind the special interest and specific subjects. The sample size can be aggrandized and the responses could be elicited from all over the world in few days only. This facility is not afforded to the researcher through traditional survey methods since the respondents are required to be approached physically or by phone both of which are comparatively restrictive in nature. The deviant phenomenon can be assessed by web based questionnaires and these subjects may include those which require privacy for the respondents to answer. The people addicted or abused can be provided this privacy through web based survey and they could answer comfortably to the questions asked about the happenings they have encountered or whatever the topic entails.3.4 Reasons behind not choosing other methodologies:The alternate techniques for data collection are: 1) Approaching the University students directly at campuses with the questionnaires 2) Surveying students on the telephoneThe techniques are described by Direct Opinions (2011) as it is stated that the telephonic surveysreach to the customer effectively and proactively. The control over the sample is considerablyhigh owing to the proactive nature of survey. The factor of randomness is present with suretywhile the data gathering stage is in process and randomness in telephonic survey’s case isimportant since the results may be projected according to the needs of researcher to a larger Page 40
  41. 41. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISpopulation. The data is ensured to be accurate in order to evaluate them in a manner which is fairas well as consistent.3.4.1 Disadvantages of the telephonic surveysAmerican Business (n.d.) opines that the limitations are obvious with regard to the collection ofdata for the survey through telephone. The respondents are reluctant most of the times to answerquestions on the phone since they consider this to be the violation of their privacy or leisure time.Various telephone numbers are usually found to be unlisted and most of the times the caller IDand message machines are used by the potential respondents to keep the telephonic surveys atbay. The telephonic survey usually happens to collect information and data from the elderlypopulation so that the representativeness of the sample could be threatened in case of telephonicsurveys.As far as the One-on-one interviews or surveys are concerned, they require great deal of hardwork and commitment since the respondents are to be approached physically through rigoroustraveling and following the respondents wherever they ask to come. The one to one surveys canbe a hurdle in the research where the sample of respondents is much larger and the respondentsare to be approached at a particular place. This methodology can be very effective with otherways of data collection and the larger groups could be handled with this methodology in additionto other methods. The approaches were not chosen against online survey technique since both themethods have their own part of demerits. The validity over the telephonic survey couldn’t bepossible to consider since the respondent’s identity would be difficult to assess and one to oneinterview could make the process cumbersome both for the researcher and respondents.3.4.2 Disadvantages of the one-to-one or oral surveysWriting at CSU (2011) mentions various demerits of one to one survey methodology. The factorsthat are not in favour of using this methodology are cost, bias, attitudes, and types of questionswhich are possible to be covered. The costs are high for one to one surveys since travelling andpursuing respondents incur both the financial as well as opportunity costs. Bias is there in themethodology since the interaction between the interviewer and the respondents could originate a Page 41
  42. 42. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISkind of relationship that results in bias of favouritism. The types of questions are also determinedwith respect to the questionnaire that is administered physically by the researcher. Theinstructions could not easily be understood or the pattern might not be perceived properly whilethe online or web based surveys obviate the need of researcher to explain the pattern of thequestions to the respondents. The attitudes are also not in sync with the researcher’s aspirationssince the respondents might be busy or having multiple thoughts in mind at the particular time ofmeeting and the responses could be filled in compulsion.3.5 Validity, reliability and generalisability:The data collection method of online survey will be made in accordance with the validityrequired for the response and for this vary reason the first few questions will be related topersonal bio data which will ensure that the students of certain age and educational backgroundare allowed to go to further questions in the survey and the name of university will be importantto assess whether the student is from Karachi University or London School of Business andFinance. The first questions related to the personal details will be made compulsory to answer bythe respondents so that they could be given permission to go to further questions. The data couldbe made reliable through the endeavours regarding the assurance of validity of data collection.The data found will be able to be generalized among the student bodies of both the countriessince the sampling is made representative of the population.3.6 Statistical MethodologyThe data collected through the web based survey questionnaire are then analyzed and assessedthrough different techniques of statistics in which charts, percentages and proportion tests areused and association test is defined by Changing Minds (2011) as: “Test statistics can also becalculated as a proportion of a whole, which gives a result that lies between 0 and 1 (or -1 and+1). Correlation coefficients typically use proportion. The Pearson r-value, for example iscalculated: r = SQRT( explained variation / total variation ). Proportions are often easier tointerpret than signal-to-noise numbers, which can be very high or low.”The research is based on the assumptions that are listed as follows: Page 42
  43. 43. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISAssumption 1:HoConsumer perception about the influence of Celebritys Personality to a Brand Personality inboth the countries is the same i.e. P1 - P2 = 0HaConsumer perception about the influence of Celebritys Personality to a Brand Personality inboth the countries is not the same i.e. P1 - P2 ≠ 0Assumption 2:HoSame proportion of Consumer will pay extra money for the brand endorsed by their favouritecelebrity in both countriesHaSame proportion of Consumer will not pay extra money for the brand endorsed by theirfavourite celebrity in both countriesAll of the above mentioned assumptions are analyzed through different statistical tools that areexpanded further in the coming sections of findings and analysis. Page 43
  44. 44. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISCHAPTER 4: FINDINGSThe data collection stage provided much to be analysed and several findings are establishedthrough statistical methods. The findings are listed in this section as far as the primary data areconcerned and each and every question’s response are found and listed as follows:4.1 Buying MotivationFor UK students: 1. What motivate you to buy a particular product? Response Response Percent Count Discounts 25.00% 4 Value for money 41.70% 6 Product Innovation 33.30% 5 Attractive advertisement 25.00% 4 Celebrity endorsing the product 16.70% 10 Past experiences with the brand 66.70% 3 32The buying motivation of the students can be found in the chart above as far as universitystudents from UK are concerned. The findings are based on the percentages that are assessedthrough the count of responses along with each option given in the question. The discounts arethe source of motivation for 25% students or respondents. As far as the value for money isconcerned this factor is marked by many of the respondents and the response rate for this optionis 41%. The product innovation was ranked important by 33% of the respondents while attractiveadvertisement got the response positively by 25% people. Celebrity endorsements do not rankhigh enough against other factors in fact this motivational factor is the least thought of as animportant element in their decision making. The most important and the most preferredmotivational factor behind the buying behavior is the past experience with particular brands. Thefindings for UK students herein show that they are not very much influenced by the celebrityendorsing the products in advertising campaigns. The students are shrewd enough to give second Page 44
  45. 45. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISthought to their purchasing decision when they have had a kind of experience with particularbrand. As far as the results from Pakistani university are concerned, they are as follows:For Pakistani students: 1. What motivate you to buy a particular product? Response Response Percent Count Discounts 6.52% 3 Value for money 15.22% 7 Product Innovation 19.57% 9 Attractive advertisement 2.17% 1 Celebrity endorsing the product 21.74% 10 Past experiences with the brand 34.78% 16 46The results show that the discounts are considered very less for buying decisions and only 6.5%of people have responded to this option while attractive advertisement is something thatPakistani students consider the least for this area and only 2.1% of respondents went with thisoption which is a revelation in itself since advertisements are not regarded important to influencetheir buying behaviour. Pakistani students are also very much influenced by the experiences withthe brand only that consists of everything they experienced for previous years with the brand.35% of respondents went for this option which is the most against other factors mentioned in thechoices. Value for money is also considered important but only by 15% people responded to itfrom Pakistan. Product innovation ranks considerably high with 19% but not higher than thefactor of celebrity endorsements which is composed of 21% of the responses from the sample.The graphical presentation of the results from both the countries is as follows: Page 45
  46. 46. INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI BUSINESS MBA THESISThere’s a difference between the levels by which the consumers are influenced by the celebritybrand endorsements. The graphs above suffice the fact that past experiences are worth more thananything else as far as the buying motivation of respondents from both the countries isconcerned. Page 46

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