Impact of Celebrity Endorsement on Consumer Buying Behavior with mediating

effect of Brand Image

1
Table of Contents
Introduction......................................................................................................................................3
1.1 Background of Study.............................................................................................................3
1.2 Broad Problem Statement......................................................................................................4
1.3 Specific Problem Statement...................................................................................................5
1.4 Research Question..................................................................................................................5
1.5 Aims of Study........................................................................................................................5
1.6 Objective of Study.................................................................................................................5
1.7 Delimitation of the study........................................................................................................5
Literature Review............................................................................................................................6
2.1 Theoretical framework.........................................................................................................10
2.2 Hypothesis............................................................................................................................10
Methodology..................................................................................................................................11
3.1 Research Approach..............................................................................................................11
3.2 Research Design...................................................................................................................11
3.3 Time Horizon.......................................................................................................................11
3.4 Data collection method........................................................................................................11
3.5 Unit of analysis....................................................................................................................11
3.6 Instrument............................................................................................................................11
3.7 Data analysis software.........................................................................................................11
References......................................................................................................................................12

2
 Introduction
1.1 Background of Study
We have been daily requested about thousands of times to buy so many products either through

the billboard or the marketing assistant coming physically and try to throw the sales pitch on

people but they always tend to buy the things which are depicted as a legitimate products. The

strategy of celebrity endorsement helps such products to show their legitimacy and authenticity

by displaying the opinion leaders, celebrities and heroes saying something positive about or

having some affiliation with the product.

The rise in product diversity, and the rivalry of products and services, has increased the amount

spent on promotional initiatives by many organizations. Additionally, many organizations are

compelled to invest heavily in their marketing communication efforts in order to compete.

Traditionally, advertising has been preferred to other elements of the promotional mix. Marketers

are now exploring possibilities to make advertisements more compelling, eye-catching and

noticeable to audiences. One way to do this is through celebrity endorsement.

In different businesses, advertising companies are using celebrity endorsement as an

advertisement technique since more than 50 years. Researches and trends show that celebrity

endorsement is a very useful marketing technique to attract consumer and the consumer is

automatically pushed towards trying that product for once at least. People tend to buy the product

without reason which is the primary goal of the marketing and advertisement; to arouse a need in

consumer’s mind. Marketers frequently use this strategy rather through print media, television

and also they use their voice over the radio to endorse products.

3
Nowadays celebrity endorsement strategy has been seen so frequent in everyday life through

different media forms and different celebrities like Shahid Afridi for Orient, Mahira Khan for

Aquafina and Atif Aslam for Pepsi etc. In business jargon Celebrity Endorsement is a concept

which contains three many aspects “Source credibility”; the degree to which speaking person is

considered to be credible among the audience, “Product Match up”. Present Study attempts to

investigate the impact of celebrity endorsement on consumer buying behavior with mediating

role on brand image.

1.2 Broad Problem Statement

decision of a consumer, this statement also depicts that celebrities can influence a person for

anything, legitimate or not; all the celebrity have to do is to give a persuasive performance.

That’s how the new emerging companies are making place in the market. Celebrity endorsement

has a strong effect on consumers' memory and learning approach too. There are numerous

researches are been done on the attractiveness of the advertisements and consumers remember

these advertisements by different chunks like color scheme, attractive jingle and same as the

celebrity present in that advertisement which really have a heavy impact on consumer’s mind

because they remember those products by the celebrities and have an unwanted urge to buy that

product.

Some personal aspects of celebrities are better hidden like personal life, drug addiction, etc. It

does affect the celebrity’s image and credibility towards the fans and the customers of the

product while celebrity endorsement, they illustrate all the factors affecting a consumer behavior

and the factor that should be included in the celebrity endorsement practical strategy but every

point and aspect was positive, it has been written in the conclusion that the research focuses only

4
on the positive factors. It is ok to keep personal limits of a celebrity as a human being but this

strategy however working for the substandard products maybe a dangerous move towards a

proper market on a macro level.

1.3 Specific Problem Statement

product by increase brand image. The gap is clearly defined that any company can invest money

in this strategy to get consumers attention and increase their sales. Do people really consider

those celebrities as a credible source to buy something for their daily usage?

1.4 Research Question

substandard cellphones?

1.5 Aims of Study

A major contribution of this study lies in understanding the relationship among celebrity

endorsement, brand image and consumer buying behavior in Pakistan’s prospective. Its

significance however lies in the absence of studies addressing this issue in Pakistan.

1.6 Objective of Study

 To study the impact of celebrity endorsement on consumer buying behavior

 To study whether brand image mediates the impact of celebrity endorsement on

consumer buying behavior

5
1.7 Delimitation of the study
The study is limited to the quantitative view on concept of celebrity endorsement and consumer

buying behavior. The survey in present study is going to be conducted in Pakistan however

generalizability is only limited to Pakistan.

Literature Review
Celebrity endorsement is a common marketing communication strategy for building brand

image. Advertisers believe that the use of a celebrity affects advertising effectiveness, brand

recall and recognition, as well as purchase intentions and follow-through.

It proposes that an endorser’s credibility and expertise first transfer meaning to his or her public

image; the endorser then transfers the meaning to the brand being endorsed. Finally, the meaning

is transferred to consumers. Celebrity endorsement enhances the perceived quality of the brand

and is correlated with intention-to-use. Celebrity endorsers who are credible improve brand

credibility, and greater credibility increases consumer-based brand image (Spry et al. 2011).

Celebrities can be an influential reference group and therefore a powerful asset for marketers.

Celebrities can give testimonials about the benefits of using a product, endorse a product, or act

as a spokesperson for a brand for an extended period (Blackwell et al., 2006). Marketers often

choose celebrity endorsers who are attractive, credible, or who have expertise while at the same

time matching up with the desired brand image.

Scholars have proposed several theories attempting to explain how celebrity endorsement in

advertising works. McCracken (1989) has proposed a three-stage meaning transfer model. It

proposes that an endorser’s credibility and expertise first transfer meaning to his or her public

image; the endorser then transfers the meaning to the brand being endorsed. Finally, the meaning

6
is transferred to consumers. Celebrity endorsement enhances the perceived quality of the brand

and is correlated with intention-to-use

Physically attractive celebrity endorsers can improve a brand’s image and encourage consumers

to purchase that brand (Hakimi et al. 2011). Celebrities who are credible can persuade consumers

to believe claims about a brand if they have relevant knowledge, skills or experience and are

perceived to be unbiased.

Celebrity endorsement is a powerful way for acquiring brand equity and celebrity equity.

However, they also suggest giving deep analysis to integrate the celebrity and the product which

is an essential factor to make the celebrity endorsement technique useful and optimum. How

these factors are executed is another factor, for example: the delivery of dialogues and

addressing the advantages of the product (Goldsmith, Lafferty, & Newell, 2000).

Different celebrities have different kind of effects on products and their advertisements as they

have different personalities. As marketing also have concept of brand personality that every

brand has its own personality just like human beings and public figures (Waldt & Zyl, 2007).

Similarly, Marketers target the customers according to their general perception and their

segment.. By this strategy consumer tend to look at the same thing he/she actually want to buy

because in segment targeting the demographics of consumers are used same way the celebrity is

chosen according to their preferences, age and choices. And customer does not think that the

celebrity has been chosen for him or her while it actually is that way (Bahram, Zahra and Zahra

2010).

7
The celebrity endorsement strategy through different factors but all are the positive ones which

shows the glamour display in this field and the fact that only good looking facts are portrayed

neither the personal lives of the celebrities nor the bad factors. The field is shallow but strategy

has been successful so far. The endorsement could increase the cost but also can cover it by

consumers' feedback and interest in the product by such effective strategy. It does take a lot of

money to use celebrity in the advertisements but it does pay back in the form of sales and

consumer attitude towards the celebrity which reflects on the same product that the celebrity has

been endorsing (Roozen, 2008). The strategy to use to bring it to the big level and choose the

celebrity who endorses a product to such large population that is how it works somewhere and

does not too, in some cases. But as compare to India, Pakistan have a very low population and

area as well so finding the proper celebrity is not as difficult as that in India. So, it does affect a

lot on the consumer perception and attitudes toward the product (Choi & Rifon, 2007).

Most of the people feel link with the celebrities when there is match between product and

celebrity hence this mean that the celebrity endorsement technique has been correctly executed

because of the positive influence on the customers because marketer taken into consideration the

factors such as celebrity image, brand image, and consumer aspirations (Bryne, Whitehead, &

Breen, 2003)

Consumers with the bigger self-enhancement goals tend to get attracted more towards the

celebrities unlike the consumers having low involvement in self-enhancement. That’s how in the

area of Pakistan there is a very big population of youth which does get effected and influenced

by the advertisements with celebrities, because of having high moral, freshness, young and high

involvement in improvement and showing distinction (Biswas, Biswas, & Das, 2006).

8
The consumers’ association and self-needs can be derived by the celebrity endorsement adapting

fashion to construct, modify and enhance their own personalities. This is correct in the case of

Pakistan; especially in Islamabad the youngsters tend to buy the things which are in fashion.

They normally tend to buy the products of daily use; in this case cell phones, by the brand name

otherwise they tend to buy cell phones whose advertisements are good or endorsed by the

common favorite celebrity and which covers their post-purchase dissatisfaction by rationalizing

their consumption on the name of that celebrity (Erdogan, 1999).

Celebrity endorsement have a positive image on the brand, which can be interpreted as the

brands which don’t have much popularity and users are reluctant to buy those products, a

celebrity can easily convince the customer towards buying that product which the celebrity

endorses as a real deal or a legit product; either the product is up to the mark or not. That’s the

main aspect observed in the vicinity of Islamabad that celebrities are endorsing products and

people are not even thinking about them in a critical way before buying and experiencing post-

purchase dissatisfaction (Nelson, 2010).

The consumer tends to look at the displayed, apparent attractive factors regardless of

investigating about the real delivered quality of that product. The functioning is first ignored then

even after the stage of post-purchase dissatisfaction, the consumer doesn’t realize that what the

mistake in his or her choice was. They usually fall for the same technique when having the low

level of self-assessment they don’t really have the capability to detect how they got deceived and

they usually don’t care to think about that twice (Erfgen, 2011).

The celebrities who are in the general liking of the most of the population, affects the consumer’s

behavior towards the product regarding purchase intentions. The more status of celebrity is high,

9
the more positive influence it generates on the buying decision of the consumer. People tend to

look for the celebrity they like and don’t give much of a intention towards the product features

and they don’t try to discover them either (Ohanian, 1991).

Consumer’s evaluation is based on the concept of source credibility by which they concentrate

on the credibility and trustworthiness of the celebrity rather than that of the product they intend

to buy. Being educated experienced, knowledgeable and talented helps the consumer to get a

clear idea of the product and adds up the credibility to the product which is being endorsed;

which is nothing more than the initial perception but that is just the way it is and consumer

evaluates through these measures unintentionally (Rodriguez, 2008).

2.1 Theoretical framework

Celebrity Endorsement Consumer Buying

Brand Image

2.2 Hypothesis
H1: Celebrity endorsement has positive impact on Brand image

10
H2: Brand image has positive impact on consumer buying behavior

H3: Celebrity endorsement has positive impact on consumer buying behavior

H4: Brand image mediates the relationship between celebrity endorsement and consumer buying

behavior

Methodology
3.1 Research Approach

This research encompasses a deductive approach which embodies the shared understanding of
nature of the association amid theory and research.

3.2 Research Design

The strategy in this research is quantitative and explanatory in nature, since answer to research
question proposed in the study is considered suitable.

3.3 Time Horizon

The study is Cross sectional. It is constructed on sources of primary data through using the
adapted questioners and hypotheses were tested to evaluate the results. Data will be collected
once from respondents.

3.4 Data collection method

This research specifically uses secondary and primary sources of data collection methods to
respond to given research questions. Secondary data will be used to develop body of knowledge
and review of literature. And primary source data will be collected from respondents through
questionnaire.

11
3.5 Unit of analysis

Individual customers are the unit of analysis.

3.6 Instrument

Data measurement tool will be questionnaire.

3.7 Data analysis software

Statistical pack for social science software (SPSS) 20.0 will be used to interpret data and analysis
of data of current study.

12
 References
Bahram, R. Zahra, S., Zahra M. (2010). Celebrity Endorser Influence on Attitude Toward

Advertisements and Brands. European Journal of Social Sciences 13, 1-9.

Biswas, D., Biswas, A. & Das, N. (2006). The differential effects of celebrity and expert

endorsements on consumer risk perceptions. Journal of Advertising, 35(2), 17-31.

Blackwell, R., D’Souza, C., Taghian, M., Miniard, P. and Engel, J. (2006), Consumer Behavior:

An Asia Pacific Approach, Thomson, Melbourne.

Bryne, A., Whitehead, M. & Breen, S. (2003). The Naked Truth of Celebrity Endorsement,

British Food Journal, 105(4), 288-296.

Choi, S.M. & Rifon, N. (2007) Who Is the Celebrity in Advertising? Understanding the

Dimensions of Celebrity Images. Journal of Popular Culture, 40(2), 304-324.

Erdogan, B. Z. (1999). Celebrity Endorsement: A Literature Review. Journal of Marketing

Management, 15(4), 291-314.

Erfgen. C. (2011). Impact of Celebrity Endorsement on Brand Image: A Communication Process

Perspective on 30 Years of Empirical Research. Unpublished.

Goldsmith, R.E., Lafferty, B.A. & Newell, S.J. (2000). The impact of corporate credibility and

celebrity credibility on consumer reaction to advertisements and brands. Journal of

Advertising, 29(3), 43-54.

Hakimi, B.Y., Abedniya, A. and Zaeim, M.N. (2011). Investigate the impact of celebrity

endorsement on brand images, European Journal of Scientific Research, 58 (1), 116-

132.

13
Irene Roozen. (2008). The Relative Effectiveness of Celebrity Endorsement for Beauty, High-

and Low Involvement Product Print Advertisements. Unpublished

McCracken, G. (1989). Who is the celebrity endorser? Cultural foundations of the endorsement

process, Journal of Consumer Research, (16) 3, 310-321.

Nelson, O. (2010). Celebrity advertising and its effectiveness on brand loyalty interdisciplinary.

Journal of Contemporary Research in Business, 1(9), 70-85.

Ohanian, R. (1991). The impact of celebrity spokespersons perceived image on consumers

intention to purchase. Journal of Advertising Research, 31, 46-54.

Rodriguez, K. P. (2008). Apparel brand endorsers and their effects on purchase intention: A

study of Philippine Consumers, Philippine Management Review, 15, 83-99.

Van,Waldt.,Schleritzko, A., Van K. (2007). Paid versus unpaid celebrity endorsement in

advertising: an exploration. African Journal of Business Management, 1(7), 185-191

14