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Introduction

Celebrity endorsement has become an essential part of todays advertisement world.Every big brand is using celebrities to promote their brands.

This paper is the analysis of effect of celebrity endorsement on the purchase behavior of consumers. This study is carried out on 50 respondents from different courses in lovely professional university.

Review of literature1.Factors predicting the effectiveness of celebrity endorsement advertisementsSummary This research examines whether consumers infer that celebrity endorsers like the products they endorse, and presents a model using these inferences and other characteristics of the endorser to predict attitudes toward the endorsed product. 2.Celebrity performance and endorsement value: the case of Tiger Woods

summary:

An interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woodss tournament performance on the endorsing firms value subsequent to the contract signing. We do not find a relationship between Tigerss tournament placement and the excess returns of Fortune Brands (parent of Titleist).

3.The equity effect of product endorsement by celebrities: A conceptual framework from a co-branding perspective

Summary: The purpose of this study is to outline a conceptual framework that can be used to organise and guide future research into how celebrity product endorsement creates equity for both the endorsed product-brand and the endorsing celebrity. The central thesis is that both endorser image and brand image serve as mediators in the equity-creation process of celebrity product endorsement.

1. http://www.emeraldinsight.com/10.1108/030905604105602182. http://www.emeraldinsight.com/10.1108/03074350010766756

3. http://www.emeraldinsight.com/10.1108/03090560710718148

4.The naked truth of celebrity endorsementSummary:This case study examines the use of celebrity endorsement in the formation of the retail image of leading European grocery distribution group J. Sainsbury, in particular, the process of transference of celebrity images to the products image. The incorporation of Jamie Oliver (well known as television celebrity The Naked Chef) into the promotions of one of Britains leading grocery chains involves a high profile campaign that has been adopted in order to imbue the companys products with an image of quality. The success of the campaign has been replicated in New Zealand by another grocery retail giant, Foodstuffs, who have also adopted The Naked Chef to endorse their products. The case draws on field research with consumers and key informant interviews with advertising agency personnel who identified the criterion for the choice of Jamie Oliver. The extent to which the market place recognises and consumers associate themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored.

5.Celebrity Endorsement in Food - UK

This report assesses celebrity endorsement of food since the last Mintel report was published in January 2005. Over the last three years increased media coverage of food and cookery has propelled celebrity chefs into the limelight. At the same time issues such as healthy eating, organic and free-range production values have come to the fore. The result is a much more complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of food products, celebrities have become crusaders for the food sector, challenging consumers to think before they eat and resulting in significant changes in purchasing behaviour.

.6.How sports celebrity endorsements affect a company's branding

The effect of sports celebrity endorsements on a company's branding can not be underestimated. Usually the effect is positive however at times it can backfire and cause an undesired outcome. Throughout the past chundred and twenty five years or so we have seen sports and business intertwined in the advertising world and the relationship grows stronger every year elevating both brand and athlete to levels of public conciousness neither would likely realize on their own.

4. http://www.emeraldinsight.com/10.1108/000707003104770865. http://www.just-food.com/store/product.aspx?id=642976. http://www.helium.com/items/1142527-how-sports-celebrity-endorsements-affect-a-companys-branding?page=27. Celebrity Endorsement: Advertising Agency Managers PerspectiveThis paper has explored on advertising agency managers point of view regarding celebrity endorsement strategy. Findings revealed that managers see media clutter as the biggest challenge for marketing communications practitioners nowadays and utilise a celebrity endorsement strategy to overcome this challenge. A celebrity campaign to bring desirable campaign results must support a good idea and there must be an explicit fit between celebrities and brands. While deciding on a particular celebrity, a range of criteria are reported to be taken into account and these criterias importance was communicated to be very similar in the UK, but it would differ across countries mainly because of cultural differences.8.Celebrity Endorsement in Food - UK - April 2008This report assesses celebrity endorsement of food since the last Mintel report was published in January 2005. Over the last three years increased media coverage of food and cookery has propelled celebrity chefs into the limelight. At the same time issues such as healthy eating, organic and free-range production values have come to the fore. The result is a much more complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of food products, celebrities have become crusaders for the food sector, challenging consumers to think before they eat and resulting in significant changes in purchasing behaviour.

9.Celebrity EndorsementsIt is estimated that companies in the U.S. spent $800 million in 1998 toacquire talent entertainers, athletes and other high profile personalities to spotlight in advertising, promotion and PR campaigns (IEG Endorsement Insider)Approximately 20% of all television commercials feature famous people.

Why do ads for some products feature celebrity endorsements while ads

for others do not? To answer this question, we develop a coordination model of

advertising in which firms choose both advertising levels and advertising format

ads with celebrity endorsements or ads without. We show that the equilibrium

formats are either ones that reach large audiences at low cost or that

coordinate well. The former provides a cost-based explanation for celebrity endorsements

that is consistent with experimental evidence showing that celebrities

enhance product recall. The latter provides an explanation for celebrity

endorsements consitent with evidence that they enhance consumer perception

of product value. For this latter case, we show that celebrity endorsements

are chosen for products that i) have large potential customer pools, ii) provide

large coordination returns to consumers or iii) require coordination across diverse

sets of customers. Our analysis also provides an explanation for the use

of fictional celebrities like Joe Camel.

http://fulltext.ausport.gov.au/fulltext/1999/cjsm/v3n3/erdogan&baker33.htmhttp://academic.mintel.com/sinatra/oxygen/display/id=319432www.rotman.utoronto.ca/ihorstmann/JEMS.2005-07-07.clark.pdfResearch design: In this research we used exploratory design. Exploration is a particularly useful when researchers lack a clear idea of the problems they will meet during the study. Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions and improve the final research design. Exploration may also save time and money.

Sampling design: in this research we used convenience sampling. Non probability samplings that are unrestricted are known as convenience sampling. They are the least reliable design but normally the cheapest and the easiest to conduct. Researchers or field workers have the freedom to choose whomever they find , thus the name convenience .Analysis

1: This is the analysis of no. of consumers who watch advertisement.

Statistics

Do you watch advertisement

NValid50

Missing0

Mean1.00

Median1.00

Mode1

Std. Deviation.000

Do you watch advertisement

FrequencyPercentValid PercentCumulative Percent

Valid'yes'50100.0100.0100.0

DATA findigs:

100% of respondents said that they watch advertisements.

Inference :

All the respondents say that they watch advertisements.

2.This is the analysis of response of consumers on celebrity endorsement in advertisements

Statistics

Do you think that celebrity is required in an advertisement

NValid50

Missing0

Mean1.20

Median1.00

Mode1

Std. Deviation.404

Do you think that celebrity is required in an advertisement


Valid'yes'4080.080.080.0

no1020.020.0100.0

Total50100.0100.0

__

Data findings:

80% respondents says that celebrity endorsement is required for advertisements.

Inferences:

Majority of respondents says that celebrity endorsement is required for advertisements.

3. This is the analysis of choice of celebrity on the basis of gender.

Statistics

Is your favorlte celebrity is male or female

NValid50

Missing0

Mean1.58

Median2.00

Mode2

Std. Deviation.499

Is your favorlte celebrity is male or female


Valid'male'2142.042.042.0

female2958.058.0100.0

Total50100.0100.0

Data findings:58% of respondents says that they like female celebrities in advertisements.

Inferences:

Majority of respondents favor female celebrity endorsement on the place of male celebrity.

5. This is the analysis of behavior of respondents for the uses of product due to celebrity endorsement.

Statistics

Do you keep using a brand only because of the endorsing celebrity

NValid50

Missing0

Mean1.76

Median2.00

Mode2

Std. Deviation.431

Do you keep using a brand only because of the endorsing celebrity


Valid'yes'1224.024.024.0

no3876.076.0100.0

Total50100.0100.0

Statistics

__Data findings:

76% respondents said that they are not using a brand only because of endorsing celebrityInferences:

majority of respondent use brands only according to their choice noy because of celebrity endorsement in it.

6. This is the analysis of respondents preference while purchasing any brand

Statistics

what makes you notice a brand

NValid50

Missing0

Mean1.48

Median1.00

Mode1

Std. Deviation1.035

what makes you notice a brand


Valid'quality'3978.078.078.0

advertisement36.06.084.0

endorsing celbrity510.010.094.0

price12.02.096.0

other24.04.0100.0

Total50100.0100.0

__Data findings;

78% respondents said that the give more value to the quality before purchasing any particular brand.

While 2% respondents give price as more important factor than any other while purchasing any brand.

Inferences:

Majority of respondents give preference to the quality of product of brands while purchasing.

7. This is the analysis of consumer buying behavior due to celebrity endorsement.

Statistics

celebrity endorsement increases your probability to go and purchase a productcelebrity endorsement decreases the risk related to the product or servicecelebrity endorsement is essential for success of product and services in the marketcelebrity endorsement increases the trustwortheness of the product or servicescelebrity endorsement is essential for product or service promotion in the this competitve market placecelebrity endorsement increases the brand recallcelebrity endorsement increases the credibilty of the product or servicescelebrity endorsement alters the buying behaviour of a person in a positive waycelebrity endorsement attracts individuals attention towards the product or services advertised

NValid505050505050505050

Missing000000000

Mean2.402.582.462.482.362.482.462.322.20

Median2.002.002.002.002.002.002.002.002.00

Mode222222222

Std. Deviation.969.992.952.886.942.953.952.8191.050

celebrity endorsement increases your probability to go and purchase a product


Valid'strongly agree'510.010.010.0

agree2958.058.068.0

neutral1020.020.088.0

disagree36.06.094.0

strongly disagree36.06.0100.0

Total50100.0100.0

celebrity endorsement decreases the risk related to the product or service



agree2448.048.056.0

neutral1428.028.084.0

disagree510.010.094.0


Total50100.0100.0

celebrity endorsement is essential for success of product and services in the market



agree2448.048.060.0

neutral1224.024.084.0

disagre714.014.098.0


Total50100.0100.0

celebrity endorsement increases the trustwortheness of the product or services



agree2856.056.062.0

neutral1326.026.088.0

disagree48.08.096.0


Total50100.0100.0

celebrity endorsement is essential for product or service promotion in the this competitve market place



agree2550.050.064.0

neutral1326.026.090.0

disagree36.06.096.0


Total50100.0100.0

celebrity endorsement increases the brand recall



agree2244.044.056.0

neutral1632.032.088.0

disagree48.08.096.0


Total50100.0100.0

celebrity endorsement increases the credibilty of the product or services



agree3162.062.068.0

neutral918.018.086.0

disagree48.08.094.0


Total50100.0100.0

celebrity endorsement alters the buying behaviour of a person in a positive way



agree2958.058.068.0

neutral1224.024.092.0

disagree36.06.098.0


Total50100.0100.0

celebrity endorsement attracts individuals attention towards the product or services advertised



agree2244.044.070.0

neutral918.018.088.0

disagree48.08.096.0


Total50100.0100.0

____

__

____

______

__Data findings:

1. 29% respondents said that celebrity endorsement increases the probability of product purchase.

2. 24% respondents said that celebrity endorsement decreases the risk related to the product or services.

3. 48% respondents said that celebrity endorsement is essential for the success of product in the market place.

4. 56% respondents said that celebrity endorsement increases the trustworthiness of products.

5. 44% respondents said that celebrity endorsement increases the brand recall.

6. 50% respondents said that celebrity endorsement is essential for promotion of product and services in this competitive marketplace.

7. 58% respondents said celebrity endorsement alters the buying behavior in positive way.

8. 62% respondents said that celebrity endorsement increases the credibility of the product.

9. 44% respondents said that celebrity endorsement attracts individuals towards thw product or services.

Inferences

Majority of respondents are in favor of celebrity endorsement and they think that celebrity endorsement can definitely have effect on the buying behavior of any brand.

Final findings:

100% of respondents said that they watch advertisements.

80% respondents says that celebrity endorsement is required for advertisements

58% of respondents says that they like female celebrities in advertisements.

76% respondents said that they are not using a brand only because of endorsing celebrity78% respondents said that the give more value to the quality before purchasing any particular brand.

While 2% respondents give price as more important factor than any other while purchasing any brand.

29% respondents said that celebrity endorsement increases the probability of product purchase.

24% respondents said that celebrity endorsement decreases the risk related to the product or services.

48% respondents said that celebrity endorsement is essential for the success of product in the market place.

56% respondents said that celebrity endorsement increases the trustworthiness of products.

44% respondents said that celebrity endorsement increases the brand recall.

50% respondents said that celebrity endorsement is essential for promotion of product and services in this competitive marketplace.

58% respondents said celebrity endorsement alters the buying behavior in positive way.

62% respondents said that celebrity endorsement increases the credibility of the product.

44% respondents said that celebrity endorsement attracts individuals towards thw product or services.Chi-square testH0- there is no significant difference between celebrity endorsement and using a brand

H1- - there is significant difference between celebrity endorsement and using a brandCase Processing Summary

Cases

ValidMissingTotal

NPercentNPercentNPercent

Do you think that celebrity is required in an advertisement * Do you keep using a brand only because of the endorsing celebrity50100.0%0.0%50100.0%

Do you think that celebrity is required in an advertisement * Do you keep using a brand only because of the endorsing celebrity Crosstabulation

Do you keep using a brand only because of the endorsing celebrityTotal

'yes'no

Do you think that celebrity is required in an advertisement'yes'Count122840

Expected Count9.630.440.0

Residual2.4-2.4

noCount01010


Residual-2.42.4

TotalCount123850


Chi-Square Tests

ValuedfAsymp. Sig. (2-sided)Exact Sig. (2-sided)Exact Sig. (1-sided)

Pearson Chi-Square3.947(b)1.047

Continuity Correction(a)2.4741.116

Likelihood Ratio6.2391.012

Fisher's Exact Test .092.046

Linear-by-Linear Association3.8681.049

N of Valid Cases50

a Computed only for a 2x2 table

b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 2.40.

Here p value is small than the .05 so we will reject the H0 and accept the H1

termpaper-090708215647-phpapp01

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