CELEBRITY ENDORSEMENT

“The Effect of Celebrity Endorsement on Consumer Brand Preference”

GR

OU

P

MEM

BER

S Dhani (1035110)

Haresh Kumar (1025115)

Supervised by

Adnan Shekhani

CONTENTS

OVERVIEW

INTRODUCTION

LITERATURE REVIEW

RESEARCH METHODOLOGY

ANALYSIS & KEY FINDINGS

CONCLUSION

REFERENCES 

LOGO

INTRODUCTION

INTRODUCTION

Celebrity Endorsement :An Interesting Phenomenon

• Celebrities are people who enjoy public acknowledgement by a large group of people whereas attributes like passion, attractiveness, diligence, discipline, self-motivation and extraordinary lifestyle are just examples and specific common characteristics.

• Consumer recall rate is high when exposed to celebrity ads

Relation to celebrity endorsement

• Consumer recall rate is heightened when exposed to celebrity ads

• It follows that all celebrity entrepreneurs are by default celebrity endorsers and it is fairly obvious that not all celebrity endorsers are entrepreneurs.

CELEBRITY ENDORSEMENT IN PAKISTAN

Pakistan’s media space is dynamic and its entrepreneurs have help create interactive platforms upon which social norms, business,

politics and religion, among other things

Celebrities from the showbiz world are turning towards the glowing world of entrepreneur.

Celebrities have made their side business besides the profession of entertainment. Famous celebrities like Shehzad Roy, Imran Khan,

Abrar-ul-Haq turned from celebrities to social entrepreneur by forming the welfare trusts and nonprofit organizations.

Shahid Afridi, Junaid Jamshed, Ajaz Ahmed, Veeneza, they started off their business by launching apparels. There are many more examples regarding celebrity entrepreneurships in Pakistan.

Objectives of the Study

• To explore people’s perception about celebrity endorsement.

• To determine how consumer decision effected by the celebrity name.

• To determine the impact of celebrity endorsement on brand.

• To analyze the rising number & role of celebrity endorsement.

The Problem Statement• Celebrity

converting to entrepreneur has a lot of negative impacts on the business start-up.

LOGO

LITERATURE REVIEW

LITERATURE REVIEW

Marketers worldwide considered celebrity endorsement as an effective promotional tool.

According to (Atkin

and Block, 1983) celebrity endorsement produce more positive responses towards advertising and increase purchase intentions.

Benefits of Celebrity Endorsement

Create perception of the brand

Create awareness of the brand

Put add-on value to the brand

Create position for the brand

Raise media coverage

Put new life into a fail brand

Attract a new customers

Types of Celebrity Endorsement

Singer Actor Sportsmen Model

 

Shahid Afridi• Pepsi• Jazz• Head &

Shoulders

Aisam-ul-Haq• Pepsi• Olper’s• Close UP

Ali Zafar• Pepsi• Telenor

Abrar-ul-Haq• Sahara for life

trust, Abrar ul Haq Outlet

SUCCESSFUL LOCAL CELEBRITY

Methodology

Research Design

• Exploratory research

Procedure• Step 1:Scondary data• Step 2: Surveys and

interviews• Step 3: Data Collection

& coding• Step 4: Interpretation &

Conclusion• Step 5: Evaluation &

recommendations

Population

• People located within Karachi, social classes A & B

Sample and Sampling Method

• Convenient sampling method

• 400 responses• Area: Park Towers

and Forum

HYPOTHESIS

Hypothesis-1

Ho: Celebrity endorsement affects consumer buying behavior.

H1: Celebrity endorsement does not affect consumer buying behavior.

Hypothesis-2

H0: celebrity entrepreneur does not have trust in customers mind.

H1: celebrity entrepreneur has trust in customers mind.

LOGO

ANALYSIS

Occupation Level

Above graph and table clearly shows that major part of our data has respondents in form of students, almost 65.3 % of the respondents are students, while the lowest number of respondents are housewife.

.

Occupation

Frequency Percent Valid Percent

Cumulative Percent

Valid

student 196 65.3 65.3 65.3

job 75 25.0 25.0 90.3

business 25 8.3 8.3 98.7

house wife

4 1.3 1.3 100.0

Total 300 100.0 100.0

Above pie chart and the table generated from SPSS shows that the majority of the income level of our respondents lies between 41000 to 50000, because they are the university level students and most of them are graduates or undergraduates.

Household Income

HouseholdIncome

Frequency Percent Valid Percent

Cumulative

Percent

V

a

l

i

d

25000 to 40000 36 12.0 12.0 12.0

41000 to 55000 108 36.0 36.0 48.0

56000 to 70000 84 28.0 28.0 76.0

71000 and above 72 24.0 24.0 100.0

Total 300 100.0 100.0

We can easily observe that majority of our respondents around 66% have given positive response that the endorsement of any celebrity has an impact on the re purchase of that product.

Impact on Consumer RepurchaseDoes a celebrity endorsement has an impact on consumer repurchase * gender

Crosstabulation

Count

gender

Totalmale female

Doesacelebrityendorsementhasanimpactoncon

sumerrepurchase

yes 149 51 200

no 68 32 100

Total 217 83 300

The above blue biggest bar in above graph shows that most of our respondents say that they can easily recognize the product which is endorsed by their favorite celebrity or by any other celebrity.

Easily Recognize Endorsed Product

Does consumers easily recognize endorsed product * gender Crosstabulation

Count

gender

Totalmale female

Does consumers easily recognize endorsed product yes 153 53 206

no 64 30 94

Total 217 83 300

LOGO

KEY FINDINGS

FINDINGS

The trust factor depends on different things like the best quality products, or the accessible prices, after sales services and much more.

It is revealed that the people think that the celebrity is giving them a product of association with basic need, so the trust factor can be built.

Celebrity has trust in customers mind

CONCLUSION

Celebrity endorsement has incremental impact on the success of

the business.

The main finding is that the celebrity endorsement can make the customers

loyal in terms of the quality.

The main reason for celebrity endorsement is the recognition of the

brand.

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