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IMPACT OF CELEBRITY
ENDORSEMENT ON
CONSUMER’S BUYING
BEHAVIOR
Research Report
Sanober Khan 226-Bcom/15-S 11/5/17 Business Research Method
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In the present world of competition there is a race of existence in
which those are having will to come forward succeed. Project is like a bridge
between theoretical and practical working. With this willing I joined this
project. First, I would like to thank the supreme power the Almighty
Allah who is obviously the one has always guided me to work on the one
has always guided me to work on the right path of life. Without his grace
this project could not become a reality. Next to him are my parents, whom I
am greatly indebted for me brought up with love and encouragement to
this stage.
I would like to take this opportunity to thankSIR MUNEER
ABBASImyteacher for the course of“BUSINESS RESEARCED
METHOD” atBENAZIR BHUTTO UNIVERSITY valuable support
and encouragement, which he has offered.
I would also like to sincerely thank all the respondents fortheir
precious time and useful insights on the research topic andwho have
patiently expressed their views to help me carry onwith my dissertation
Lastly, I would also like to thank my parents, friends and classmates
who helped me a lot in finalizing this project within the limited time frame.
Thanks a lot.
SANOBER ADIL KHAN
2
Abstract:
The purpose of this study is to explore the impact of celebrity endorsement on consumer’s buying
intentions. This study concentrated on discovering the thoughts of Pakistani customers about
celebrity endorsement by analyzing the different characteristics of the celebrity endorsement with
respect to consumer’s buying intentions. In this study, I reviewed the former literature present on
the topic of celebrity endorsement. That gives clear perception of different important prospects
regarding this topic. The general belief among advertisers is that advertising messages delivered by
celebrities provide a higher degree of appeal, attention and possibly message recall than those
delivered by non-celebrities. Marketers also claim that celebrities affect the credibility of the
claims made, increase the memorability of the message ,and may provide a positive effect that
could be generalized to the brand Copper (1984).So considering these points this paper is an
attempt to know the impact of celebrity endorsed advertisements on consumers and on sales. This
study is also an attempt to know the reasons of using the celebrities in advertisements.
KEYWORDS: Celebrity endorsement, Purchase intentions, Consumer buying behavior, Celebrity
endorsement in Pakistan
3
Table of content:
Chapter: 1
1. Introduction 4
1.1 Background 5
1.2. Research Problem 6
1.3. Research Question 6
1.4. Objectives of the Study 7
1.5. Significance 7
1.6. Limitations 7
1.7. Scope 8
1.8. Definition of key terms 8
Chapter: 2
2. Literature Review 10
Chapter: 3
3. Research Methodology
3.1. Research Design 11
3.2. Procedure 11
3.3. Population 11
3.4. Sample and Sampling Methods 11
3.5. Instrument selection 11
3.6. Variables 11
3.7. Hypothesis 12
3.8. Plan of Analysis 12
3.9 Software Employed 12
3.10 Research Schedule 12
Chapter: 4
4. Data Analysis 14
Chapter: 5
5. Conclusion & Recommendation 25
6. Bibliography: 26
4
Chapter: 1
1 Introduction
Everyday consumers are exposed to thousands of voices and images in magazines, news papers
and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of
a person’s time to inform him or her of the amazing and different attributes of the product at hand.
The challenge of the marketer is to find a hook that will hold the subject’s attention. In helping to
achieve this, use of celebrity endorsers is a widely-used marketing strategy. In this modern age,
people tend to ignore all commercials and advertisements while flipping through the magazines
and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed.
Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great
significance. In this process,
the companies hire celebrities from a
particular field to feature in its advertisement campaigns. The promotional features and images of
the product is matched with the celebrity image, which tends to persuade a consumer to fix up his
choice from a variety of brands. Companies invest large sums of money to align their brands and
themselves with endorsers. Such endorsers are dynamic with both attractive and likeable qualities
and companies plan that these qualities are transferred to products via marcom
activities. Furthermore, because of their fame, celebrities serve not only to create and maintain
attention but also to achieve high recall rates for marcom messages in today’s highly cluttered
environments.
Similarly, every product has an image. The consumer tries to consume a brand which has the
maximum fit with his/her own personality/image. The celebrity endorser fits in between these two
interactions, where he tries to bring the image of the product closer to the expectation of the
consumer, by transferring some of the cultural meanings residing in his image to the product.
The general belief among advertisers is that brand communication messages delivered by
celebrities and famous personalities generate a higher appeal, attention and recall than those
executed by non-celebrities. The quick message-reach and impact are all too essential in today’s
highly competitive environment.
Celebrities have also been in demand having succeeded in being effective by rising above the
clutter & grabbing the attention and focus of the consumer. They also succeed in creating an
aspiration in the minds of the consumer to acquire what their favorite celebrity endorses.
5
1.1Background to the Research
In today’s world the celebrities are being treated as a role model. People are changing their living
style relatedwith their favorite celebrity. This thing creates a great impact on the buying behavior
of the persons. This attracts the customers and ultimately increases the company productivity.
Celebrities are not always creating any kind of effect on person’s mind in terms of buying. But
mostly it gives a great impact on perception of choosing any product. We are always thinking that
if our favorite celebrity is using them. Then we should use that to be like them (Khatri 2006).
From last 150 years advertising is changing in different phases from the classical to modern. Now a
day it’s the best strategy used by marketers to influence customers by showing celebrities with
their products, it includes different appeals lie, exciting, absurdity, sexual etc. Belch, G. and Belch,
M. (2008) acknowledged that the main aim of formulating such strategies is to get high brand
revelation, longing, concentration and curiosity.To do so, marketers attach famous personalities
with their products.
McCracken (1989) stated that these famous personalities had great influence on the consumer’s
buying behavior that’s why it becomes the most attractive tool of advertising now a day. The major
aim to do advertising and adopt this strategy is to influence customers towards the products
(Ohanian 1990).
According to Patrick Bishop (2000), a Marketing Expert, “When you get a celebrity to endorse
your company or sign licensing agreement, you benefit from customer awareness of the property,
which could include the perception of the quality, education value or a certain image. If a celebrity
is endorsing or the business is selling the product of a well-known person or entity, then people
assume they must be a good company to deal with.” Both entities represent nodes in a cognitive
network, whose connectivity can establish contingency between the two entities.
Marketers must understand what happens to the buying decision of the customer when the cultural
meanings of celebrities are disgraceful. This is because the customer purchasing and using the
product endorsed by the celebrity can obtain some of those meanings and use them in constructing
self-control.
This research is specifically on celebrity endorsement and the influences it has on consumer buying
behavior.
6
1.2Statement of the problem:
It has identified that celebrity endorsement has significant role in developing a brand image in the
minds of consumer which ultimately influence their buying behavior and marketers greatly
emphasize on these strategies to capitalize, the study was conducted to measure the influence of
celebrity endorsed ads on the purchasing decision on consumer, consumers’ perception towards
endorser and product endorsed and how these perceptions influence their purchase decision.
1.3Research Question:The Research Questionnaire was borrowed from another article.
1)SD= Strongly Disagree 2)D= Disagree 3)N=Neutral
4)A=Agree 5)SA= Strongly Agree
s.no Item SD D N A SA
1. Do you buy a product which is endorsed by a celebrity?
2. Do you get attracted to buy a product/brand endorsed by a celebrity?
2. Do you think that ads having celebrities are more effective than those
which don’t?
3. Would you switch from you regular products to a new product endorsed by
your favorite actor/ actress?
4. Does the presence of a celebrity help you recognize a brand?
5. Are the claims made in advertisements having celebrities believable?
6. Celebrity endorsed ad grab an audience's attention more easily than a
standard ad.
7. Are you able to identify the product because of the celebrity associated with
it?
8. I don’t believe the celebrities also use those products which they
themselves endorse.
9. If a celebrity you disliked was endorsing a brand you often purchase from,
would this change your consumer interests?
10. I find product endorsed by celebrities are trustworthy.
Gender:  Female  Male
Age (In Years):  15-20  15-20  26-30  Above 30
Education Level:Matric Intermediate
Under GraduatePost Graduate
7
11. I find product endorsed by celebrities are informative.
12. I find product endorsed by celebrities are interesting.
13. Celebrities help me more to remember a brand/product.
14. My favorite celebrity give a positive image to the endorsed brand.
15. I think that "negative publicity" about a celebrity endorser can influence my
decision of buying a brand?
14. I will stop buying a brand if my favorite celebrity endorsing it gets involved
in scandal
15. I buy a product just because the celebrities are using it.
16. I think celebrity endorsement is an important factor when I make my
decision
17. I would buy a brand if my favorite celebrity is endorsing it.
1.4Objective of the study:
The research objectives of this research are as follows:
• To explore the consumers’ perception towards brands and celebrity endorsement.
• To identify the influence of celebrity endorsement on consumer buying behavior.
• To measure the impact of advertisements endorsed by celebrities.
1.5Significance of the study:
The study explained the impact of celebrity endorsementin the mind of customer that how a
consumer perceivecelebrity endorsed advertisement and which is the majorelement that influence
them to prefer their choices frombrands to brands in the market. Thisstudy is concise on the
common need of a person and it issignificantly valuable for marketers, researchers, studentsand
advertisers. It can be further used for study andresearch purpose.
1.6Limitation of the study:
This research has the following limitations:
• The research is concise to study consumer’s perception towards products.
• The area of research is restricted to Karachi and the sample size was 100 – Male and
Femalesof different age and preferences.
• The major constraint for this research was time.
8
1.7Scope of the study:
The study is conducted in Benazir Bhutto Shaheed University from students ofdifferent age group.
This study has examined that how celebrityis effective for endorsing the products and
howcompanies can make their brand much more powerful intheir customer’s mind through this
communication tool.
1.8DEFINITION OF KEY TERMS:
Celebrity endorsement
Khatri (2006) studied that the celebrity endorsement is the Promotion strategy to attract the
customers. By analyzing the current market, now it’s become the need of the marketers to use the
different famous personalities to relate with their brands to create unique identity of the brand and
to do famous his company’s brand orproduct, which results high expenditure for the company to
use that strategy, however nowadays it is used to be apowerful strategic tool to get maximum
profit. It also shows that this can carry risk, because there is no surenessthat the celebrity can come
up with the sales generation of the firm. But it creates a buzz and gives popularity tothe company
and the brand. This can increase the expectation of the customers in terms of real star by delivering
the company promise. There are certain perspectives occur where the real persons can work better
than the celebrities’ endorsement, but not always.
Purchase Intension:
The willingness of a customer to buy a certain product or a certain service is known as purchase
intention. Purchase intention is a dependent variable that depends on several external and internal
factors. Some of the factors are as follows:
Stimulus/Trigger: The cue that triggers a buyer towards considering a product or a brand to be
included in their consideration set. This might be the attributes of a product or simply its packaging
Outcome expectation: The outcome expected out of the use of a product or a service
Aspirational Value: The product might satiate some aspirations of a buyer. For ex. A luxury car
Recommendation: Recommendation by a trust worthy or reliable source
Emotional association: Being emotionally associated with a product or a brand owing to the
brand’s perceived personality
Other factors can be perception about the product, associated risks and costs.
9
Consumer Buying behavior
Buying behavior is a process by which a people search for the product/services they need or want,
make decisionto buy the required and most suitable one from different alternatives, use and the
dispose it. For makingmarketing decision buying process model is playing a very important role for
any one. It makes marketers tothink about each step of this process rather than just purchase
decision because if marketers just consider thepurchase decision, it may be too late for a business
to influence the choice of customers. According to this modelthe customer pass through all stages
for purchasing every goods or services. However, in more regularpurchases, customer often skips
some the stages
Celebrity Endorsement in Pakistan:
In Pakistan, very little number of peoples’ behavior is influenced because of the factor that a
particular brand’s advertisement has a celebrity in it.
But when a sample is asked about the last recall advertisement 8 out 10 were of celebrity endorsed
advertisements. Recall rate is high when someone sees a celebrity in an advertisement whether it’s
a Print Ad or Television Commercial.
Chapter: 2
10
2.1 Literature Review
Celebrity endorsement is a form of publication by portraying a well-recognized sports or
entertainment celebrity to be a brand ambassador for a company or firm, and by using their social
status to promote a service or product (Udo, Nwulu, & Stella, 2015)
Celebrities are perceived to hold qualities such as attractiveness, expertise, trustworthiness and
likeability, which advertiser's hope will be transferred to the brand or product consequently
creating positive images for that product or brand (Muda et al., 2012).Many consumers idolize
celebrities and strive to imitate their lives with the clothes they wear and products they consume
(Aureliano-Silva et al., 2015). Celebrities create meaning for the consumer through their
interactions with products in advertising (Muda et al., 2012; Aureliano-Silva et al., 2015)
According to findings of the research, celebrity endorsed advertisement is not only utilized to
create brand awareness and brand recognition but they help the company to capture target
audience. Celebrity do not take the advertisement effective but other factors like product
performance, quality and brand image, personality and trustworthiness of celebrities make the
mind of consumer to choose the particular product of his/her choice. Moreover these elements play
a major role in making an advertisement successful and in influencing the purchasing behavior of
the consumer.(Khan, 2016)
Mr. Javeed Ahmed Khan said that Celebrity endorsement enhances the product information and
creates awareness amongconsumers. It helps them to recall the brands of the endorsed products.
A Taiwanese study shows that consumers show greater recall of products that have been endorsed
by celebrities – regardless of whether they are actual fans or not. The human brain recognizes
celebrities similarly to how it recognizes people we actually know. The effect is that, if consumers
happen to be fans, they place a higher value on products that celebrities are endorsing – it is as if
they are receiving advice from a valued friend(http://www.guided-selling.org/impact-of-celebrity-
endorsement-on-consumer-buying-behavior/)
Advertising that features a celebrity creates attention and generates awareness of the product. Your
company can gain new customers from the celebrity's fan base. For instance, a well-loved local
guitarist could draw attention to your musical instruments shop. Fans who have faith in the
personality are most likely to purchase your products or, at least, have a greater intention to buy.
The advertising also gains the attention of consumers with a casual interest in the celebrity.
11
A celebrity’s reputation is tied to that of the company after appearing in the company’s advertising.
If a respected celebrity appears in advertising for an imperfect brand, the views of the brand could
improve or the celebrity’s reputation could worsen. Also, if the celebrity’s reputation suffers, the
formerly positive views of the brand could suffer too.Celebrity endorsements can affect sales
positively or negatively. Consumers are likely to purchase the product if they feel that the celebrity
is likable, sincere and appropriate for the item. However, the reverse is also true. Sales could
diminish if the celebrity does not appeal to the target market, is not credible or gains negative
publicity. In some cases, consumers are indifferent and there is no noticeable change in sales. A
local football player endorsing your veterinary practice might not draw much interest, unless he is
known for loving animals. (http://smallbusiness.chron.com/effect-celebrities-advertisements-
56821.html)
Celebrity endorsements need to be approached carefully, manipulated thoroughly and utilized
effectively in order to reap the full benefits. When looking for a celebrity to represent a brand, it's
important to know what the expectations of having that celebrity endorsement areDifferent
celebrities will accomplish different things for a brand as an endorser. Instinct would have us
choose the celebrity with the most fans because more fans mean more customers. While this
strategy works in some situations, it's not necessarily the best plan of action. There has to be some
sort of collaboration or connection between celebrity and brand. A brand's ambassador or endorser
shouldn't be some random celebrity.Take advantage of existing connections and fan bases, too.
Celebrities serve as channels between buyer and seller. If your brand is seeking an audience that
happens to follow a certain celebrity, then it should have that particular celebrity endorse its
products. Endorsements are most effective when the celebrity's audience already overlaps with the
brand's desired audience. In the marketing world, a celebrity is only as valuable as his or her public
image, and if that image becomes tarnished in any way, it's usually bad for business. Just as a
celebrity has the power to attract individuals to a brand, he or she has the power to deter
individuals all the same. ( By Alex Cotraviwat May 27 2015)
Chapter: 3
12
Research Methodology
3.1 RESEARCH DESIGN:
The research is qualitative and hypothesis testing in nature. Primary and secondarydata sources
have been collected.
3.2 PROCEDURE:
Questionnaire were used as an instrument to collect a data and data is collected by two ways:
Personal survey in Benazir Bhutto Shaheed University Lyari Karachi.
And some random samples from different places of Karachi.
3.3 POPULATION:
The population of this study is mostly Karachi people
3.4 SAMPLE AND SAMPLING METHODS:
100 are the sample size for this research to examine the impact of celebrity endorsement on buying
behavior. Convenient technique is used.
3.5 INSTRUMENT SELECTION:
We borrowed the questionnaire from the research study on the topic of impact of celebrity
endorsement on buying behavior
A questionnaire will be given to the sample population in order to identify the buying pattern of
consumer’s on the basis of given variables. Each variable is measure by asking the questions and
use interval scale ranging from:
1. Strongly Disagree 2. Disagree 3.Neutral 4.Agree 5.Strongly Agree
3.6 VARIABLES:
The Dependent variable is the buying behavior and independent variable is the celebrity
endorsement. We operationalize the celebrity in its three main attributes namely, attractiveness,
credibility and meaning transfer. And we see their impact on the buying behavior.
3.7 HYPOTHESIS:
H0: There is no impact of celebrity endorsement on consumer’s buying behavior.
H1: There is an impact of celebrity endorsement on consumer’sbuying behavior.
13
3.8 PLAN OF ANALYSIS:
To analyze the research outcome the results of descriptive analysis of all dependent and
independent variables are decide.
3.9 SOFTWARE EMPLOYED: To make analysis of data it will use SPSS software in which we
will make analysis in to two parts where part one will lead descriptive statistics that will be use to
describe and summarize data and include measures of central tendency (average) and dispersion
(the spread of data or close each other is to the measure of central tendency).
3.10 RESEARCH SCHEDULE:
s.n
o
Task name
Duration
Start Finish Predecessor
FEB 2017 MARCH 2017 APRIL 2017 MAY 2017
5
1
0
1
5
2
0
2
5
2
8
5
1
0
1
5
2
0
2
5
3
1
5
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5
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5
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3
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1 Proposal 12 day
4 feb-
17
16 feb
17
2 Literature review 8 Day 02 mar 10 mar
3 Primary data 15 day 22 mar 12 apr 1
4 Data analysis 15day 17 apr 02 may 4
5
Recommendation &
conclusion
8 day
04
may
12 may
14
Chapter: 4
Data Analysis
FREQUENCIES:
Statistics
Age Gender Education Status
N
Valid 100 100 100 100
Missing 0 0 0 0
Mean 2.2000 1.4800 3.0700 1.2000
Median 2.0000 1.0000 3.0000 1.0000
Mode 2.00 1.00 3.00 1.00
Sum 220.00 148.00 307.00 120.00
TABLE 4.1:
Gender
Frequency Percent Valid Percent Cumulative
Percent
Valid
Female 52 52.0 52.0 52.0
Male 48 48.0 48.0 100.0
Total 100 100.0 100.0
GRAPHICAL REPRESENTATION:
4.1 INTERPRETATION:
15
The questionnaires were distributed to 100 respondents.52% responses were collected from female
respondents,48% responses from male respondents. The sample size was sufficient for the study of
this research from different perspectives
TABLE 4.2:
Age
Frequency Percent Valid Percent Cumulative
Percent
Valid
15-20 26 26.0 26.0 26.0
21-25 37 37.0 37.0 63.0
26-30 28 28.0 28.0 91.0
Above 30 9 9.0 9.0 100.0
Total 100 100.0 100.0
GRAPHICAL REPRESENTATION:
4.2 INTERPRETATION:
Out of 100 respondents 26 respondents were between15-20, 37 respondents were below 21-25, 28
respondents were between 26-30 and 9respondentswere above 30. The questionnaires were
distributed to people with heterogeneous ages which are considerably reliable for the study
TABLE 4.3:
Education
16
Frequency Percent Valid Percent Cumulative
Percent
Valid
Matric 6 6.0 6.0 6.0
Intermediate 4 4.0 4.0 10.0
Under Graduate 67 67.0 67.0 77.0
Post Graduate 23 23.0 23.0 100.0
Total 100 100.0 100.0
GRAPHICAL REPRESENTATION:
4.3 INTERPRETATION:
Out of 100% respondents the education level of 6% respondents was matric, 4% respondents was
Intermediate, 67% respondents was under graduated and 9% respondents was post graduated.
TABLE 4.4:
Status
Frequency Percent Valid Percent Cumulative
Percent
Valid Single 80 80.0 80.0 80.0
17
Married 20 20.0 20.0 100.0
Total 100 100.0 100.0
GRAPHICAL REPRESENTATION:
4.4 INTERPRETATION:
Out of 100% respondents 80% respondents were single and20% respondents were married.
18
FREQUENCIES OF QUESTIONS:
Q1)Do you get attracted to buy a product/brand endorsed by a celebrity?
The pie chart shows that 12% of respondents were Strongly Disagree, 27%
were Disagree, 8% were Neutral, 31% were Agree and remaining 22%
were Strongly Agree. So, here the result cannot be concluded.
Q2
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 11 11.0 11.0 11.0
Disagree 19 19.0 19.0 30.0
Neutral 14 14.0 14.0 44.0
Agree 36 36.0 36.0 80.0
Strongly Agree 20 20.0 20.0 100.0
Total 100 100.0 100.0
Q2) Do you think that ads having celebrities are more effective than those
which don’t?
The pie chart shows that 11% of respondents were Strongly Disagree, 19%
were Disagree, 14% were Neutral, 31% were Agree and remaining 20%
were Strongly Agree. Here mostly respondents agreeing with the
statement.
Q3
Q1
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 12 12.0 12.0 12.0
Disagree 27 27.0 27.0 39.0
Neutral 8 8.0 8.0 47.0
Agree 31 31.0 31.0 78.0
Strongly Agree 22 22.0 22.0 100.0
Total 100 100.0 100.0
19
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 11 11.0 11.0 11.0
Disagree 28 28.0 28.0 39.0
Neutral 25 25.0 25.0 64.0
Agree 13 13.0 13.0 77.0
Strongly Agree 23 23.0 23.0 100.0
Total 100 100.0 100.0
Q3) Would you switch from you regular products to a new product
endorsed by your favorite actor/ actress?
The pie chart shows that 11% of respondents were Strongly disagree,
28% were Disagree, 25% were Neutral, 13% were Agree and
remaining 23% were Strongly Agree. Here respondents with disagree
opinion are higher in number.
Q4
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 11 11.0 11.0 11.0
Disagree 20 20.0 20.0 31.0
Neutral 23 23.0 23.0 54.0
Agree 30 30.0 30.0 84.0
Strongly Agree 16 16.0 16.0 100.0
Total 100 100.0 100.0
Q4) Does the presence of a celebrity help you recognize a brand?
20
The pie chart shows that 11% of respondents were Strongly disagree, 20% were Disagree, 23%
were Neutral, 30% were Agree and remaining 16% were Strongly Agree. Here respondents with
agree opinion are higher in number.
Q5
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 10 10.0 10.0 10.0
Disagree 34 34.0 34.0 44.0
Neutral 27 27.0 27.0 71.0
Agree 17 17.0 17.0 88.0
Strongly Agree 12 12.0 12.0 100.0
Total 100 100.0 100.0
Q5) Are the claims made in advertisements having celebrities
believable?
The pie chart shows that 10% of respondents were Strongly disagree,
34% were Disagree, 27% were Neutral, 17% were Agree and
remaining 12% were Strongly Agree. Here respondents with disagree
opinion are higher in number.
Q13
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 14 14.0 14.0 14.0
Disagree 18 18.0 18.0 32.0
Neutral 28 28.0 28.0 60.0
Agree 23 23.0 23.0 83.0
Strongly Agree 17 17.0 17.0 100.0
Total 100 100.0 100.0
Q13) I think that "negative publicity" about a celebrity endorser can
influence my decision of buying a brand?
The pie chart shows that 10% of respondents were Strongly disagree, 34%
were Disagree, 27% were Neutral, 17% were Agree and remaining 12%
were Strongly Agree. Here respondents with disagree opinion are higher
in number
21
Q14
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 16 16.0 16.0 16.0
Disagree 29 29.0 29.0 45.0
Neutral 27 27.0 27.0 72.0
Agree 23 23.0 23.0 95.0
Strongly Agree 5 5.0 5.0 100.0
Total 100 100.0 100.0
Q14) I will stop buying a brand if my favorite celebrity endorsing it
gets involved in scandal
The pie chart shows that 16% of respondents were Strongly disagree,
29% were Disagree, 27% were Neutral, 23% were Agree and remaining
5% were Strongly Agree. Here respondents with disagree opinion are
higher in number.
And on second the
respondents were
neutral.
Q15) I buy a product just because the celebrities are using it.
The pie chart shows that 24% of respondents were Strongly disagree, 22% were Disagree, 22%
were Neutral, 20% were Agree and remaining 12% were Strongly Agree. Here respondents with
disagree opinion are higher in number. And on second the respondents were neutral.
Q15
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 24 24.0 24.0 24.0
Disagree 22 22.0 22.0 46.0
Neutral 22 22.0 22.0 68.0
Agree 20 20.0 20.0 88.0
Strongly Agree 12 12.0 12.0 100.0
Total 100 100.0 100.0
22
Q16
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 20 20.0 20.0 20.0
Disagree 25 25.0 25.0 45.0
Neutral 23 23.0 23.0 68.0
Agree 18 18.0 18.0 86.0
Strongly Agree 14 14.0 14.0 100.0
Total 100 100.0 100.0
Q16) I think celebrity endorsement is an important factor when I make
my decision.
The pie chart shows that 20% of respondents were Strongly disagree,
25% were Disagree, 23% were Neutral, 18% were Agree and remaining
14% were Strongly Agree. Here respondents with disagree opinion are
higher in number. And on second the respondents were neutral.
Q17
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 19 19.0 19.0 19.0
Disagree 20 20.0 20.0 39.0
Neutral 21 21.0 21.0 60.0
Agree 30 30.0 30.0 90.0
Strongly Agree 10 10.0 10.0 100.0
Total 100 100.0 100.0
Q17) I would buy a brand if my favorite celebrity is endorsing it.
The pie chart shows that 19% of respondents were Strongly disagree, 20% were Disagree, 21%
were Neutral, 30% were Agree and remaining 10% were Strongly Agree. Here respondents with
agree opinion are higher in number.
4.5 RELIABILITY:
Scale: ALL VARIABLES
Case Processing Summary
23
N %
Cases
Valid 100 100.0
Excludeda
0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.754 17
This data is reliable because reliability percentage is more than 60%.
4.6 CORRELATION:
Descriptive Statistics
Mean Std. Deviation N
Celebrity_Endorsement 35.7500 6.16830 100
Buying_Behavior 17.5400 4.86467 100
Correlationsb
Celebrity_Endor
sement
Buying_Behavio
r
Celebrity_Endorsement
Pearson Correlation 1 .532**
Sig. (2-tailed) .000
Buying_Behavior
Pearson Correlation .532**
1
Sig. (2-tailed) .000
**. Correlation is significant at the 0.01 level (2-tailed).
b. Listwise N=100
4.7 REGRESSION:
Variables Entered/Removeda
Model Variables Entered Variables
Removed
Method
1 CelebrityEndorsementb
. Enter
a. Dependent Variable: BuyingBehavior
b. All requested variables entered.
24
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .532a
.283 .276 4.13896
a. Predictors: (Constant), CelebrityEndorsement
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 664.005 1 664.005 38.761 .000b
Residual 1678.835 98 17.131
Total 2342.840 99
a. Dependent Variable: BuyingBehavior
b. Predictors: (Constant), CelebrityEndorsement
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 2.530 2.446 1.034 .304
CelebrityEndorsement .420 .067 .532 6.226 .000
a. Dependent Variable: BuyingBehavior
25
Chapter: 5
1. Conclusion & Recommendation
People don’t believe such ads because the celebrities these days are endorsing any product as long
as it pays a lot. People tendto lose faith in such products and in the long run the actor. The
popularity and the credibility of the actors play a veryimportant role in convincing people. Since,
actors these days endorse a lot of products people are losing their faith in them.Even though the
impact of celebrity endorsements focus on business growth, the brands without celebrities and
popular personalities have been equally received by the customers. The attractive advertising
campaign and product tag lines andcaptions have a major influence on the customers to avail these
products. Despite dependence on celebrity endorsements, fewbrands have embedded their image
on consumers' psyche as the most consistent source.
The customers buy the products on the basis of the product’s quality and the consistency of the
quality.So, what the marketers need to do is, find a way that is more suitable. Have advertisements
that are meaningful from thepoint of view of the consumers and do not add to the cost of the
product. Because the celebrities endorse more than oneproduct, brand recall for people becomes
difficult for the consumers.But, we can see that celebrity advertising is not going to go away any
time soon but the impact on the buying behavior ofpeople because of it is reducing
considerably.Taking a lesson from the above-mentioned brands, marketers can also have normal
people, who do not belong to theglamour industry, in their advertisements. The marketers need to
make ads that are more believable and use celebrities in theirads more carefully and after a lot of
thought
26
BIBLIOGRAPHY:
Khan, A. (2016). Impact of celebrity endorsement on consumer perchase decision. Imperical Journal of
Interdisciplinary Research.
Rizwan Raheem Ahmed, Impact of Celebrity Endorsement on Consumer Buying Behavior Article in SSRN
Electronic Journal · September 2015
M.Naresh Babu,The Impact of Celebrity Endorsement on Purchase Decision of Telecom Users- A Case of
Engineering Students article inGlobal journal of advanced research.
Israel Kofi Nyarko The influence of celebrity endorsement on the buying behaviourInternational Journal of
Business and Management ReviewVol.3, No.11, pp.1-16, December 2015Published by European Centre for
Research Training and Development UK
Ms. Anmol Randhawa, Impact of Celebrity Endorsement on Consumer Buying Behaviour
Agrawal, J. and Wagner A.K. (1995), The Economic Worth of Celebrity Endorsers: An Event Study Analysis,
Journal of Marketing, 59, 56-62
Ahmed, R.R. and Ahmad, S. (2014), Pharmaceutical drug promotion in Pakistan: Issues in ethical & non-
ethical practices, Middle-East Journal of Scientific Research, 20 (11), 1630-1640
Ahmed, R.R., Parmar, V. and Ahmed, J. (2012), Factors that affect attitude towards Generic Drugs
Perception: Comparison of Physicians & General Practitioners of Karachi City, International Journal of
Management, IT and Engineering, 2 (11), 151-178
Ahmed, R.R., Vishnu, P. and Amin, M.A. (2014), Impact of Product Packaging on Consumer’s Buying
Behavior”, European Journal of Scientific Research, 122 (2), 125-134
Ahmed, R.R., Vveinhardt, J., Ahmad, N. and Mujeeb, M. (2014), The Business Outsourcing in
Telecommunication Industry: Case of Pakistan, Transformations in Business & Economics, 13, 2B (32B),
760-779
Atkin, Charles and Martin Block (1983), “Effectiveness of Celebrity Endorsers”, Journal
of Advertising Research 23, 1 (February/March 1983): 57-62.
McCracken, G. (1989), “Who is the Celebrity Endorser? Cultural Foundations of the
Endorsement Process”, The Journal of Consumer Research, 16 (3), 310-321
Tripp, C, Jensen, T.D and Carlson, L. (1994), “Trust worthiness/ Credibility of celebrity
endorsers”, Journal of consumer research, 20 (4). 535-547
27
Daneshwary, R. and Schwer, R.K. (2000), “The association endorsement and consumers’
intention to purchase”, Journal of Consumer Marketing, 17 (3), 203-213.
M. Gayathri Devi and Dr. C. Ramanigopal (2010), “Impact of celebrity endorsement on
Indian market”, Journal of Applied Science & Social Science, Vol. I, No II. November
2010.
Kotler, Philip “Marketing Management – Analysis, Planning, Implementation & Control,
9th Edition, Prentice Hall of India Pvt. Ltd. 1997.
Belch, G.E., and Belch, M.A. (1993), “Introduction to Advertising and Promotion: An Integrated Marketing
Communications Perspective”, McGraw Hill
Soloman, M.R (2002), “Consumer Behaviour: Buying, Having and Being”, New
Jersey: :Prentice Hal

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Impact of Celebrity endorsement on Consumer Buying Behaviour

  • 1. IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER’S BUYING BEHAVIOR Research Report Sanober Khan 226-Bcom/15-S 11/5/17 Business Research Method
  • 2. 1 AC C K K N N O O W W L L E E D D G G E E M M E E N N T T In the present world of competition there is a race of existence in which those are having will to come forward succeed. Project is like a bridge between theoretical and practical working. With this willing I joined this project. First, I would like to thank the supreme power the Almighty Allah who is obviously the one has always guided me to work on the one has always guided me to work on the right path of life. Without his grace this project could not become a reality. Next to him are my parents, whom I am greatly indebted for me brought up with love and encouragement to this stage. I would like to take this opportunity to thankSIR MUNEER ABBASImyteacher for the course of“BUSINESS RESEARCED METHOD” atBENAZIR BHUTTO UNIVERSITY valuable support and encouragement, which he has offered. I would also like to sincerely thank all the respondents fortheir precious time and useful insights on the research topic andwho have patiently expressed their views to help me carry onwith my dissertation Lastly, I would also like to thank my parents, friends and classmates who helped me a lot in finalizing this project within the limited time frame. Thanks a lot. SANOBER ADIL KHAN
  • 3. 2 Abstract: The purpose of this study is to explore the impact of celebrity endorsement on consumer’s buying intentions. This study concentrated on discovering the thoughts of Pakistani customers about celebrity endorsement by analyzing the different characteristics of the celebrity endorsement with respect to consumer’s buying intentions. In this study, I reviewed the former literature present on the topic of celebrity endorsement. That gives clear perception of different important prospects regarding this topic. The general belief among advertisers is that advertising messages delivered by celebrities provide a higher degree of appeal, attention and possibly message recall than those delivered by non-celebrities. Marketers also claim that celebrities affect the credibility of the claims made, increase the memorability of the message ,and may provide a positive effect that could be generalized to the brand Copper (1984).So considering these points this paper is an attempt to know the impact of celebrity endorsed advertisements on consumers and on sales. This study is also an attempt to know the reasons of using the celebrities in advertisements. KEYWORDS: Celebrity endorsement, Purchase intentions, Consumer buying behavior, Celebrity endorsement in Pakistan
  • 4. 3 Table of content: Chapter: 1 1. Introduction 4 1.1 Background 5 1.2. Research Problem 6 1.3. Research Question 6 1.4. Objectives of the Study 7 1.5. Significance 7 1.6. Limitations 7 1.7. Scope 8 1.8. Definition of key terms 8 Chapter: 2 2. Literature Review 10 Chapter: 3 3. Research Methodology 3.1. Research Design 11 3.2. Procedure 11 3.3. Population 11 3.4. Sample and Sampling Methods 11 3.5. Instrument selection 11 3.6. Variables 11 3.7. Hypothesis 12 3.8. Plan of Analysis 12 3.9 Software Employed 12 3.10 Research Schedule 12 Chapter: 4 4. Data Analysis 14 Chapter: 5 5. Conclusion & Recommendation 25 6. Bibliography: 26
  • 5. 4 Chapter: 1 1 Introduction Everyday consumers are exposed to thousands of voices and images in magazines, news papers and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of a person’s time to inform him or her of the amazing and different attributes of the product at hand. The challenge of the marketer is to find a hook that will hold the subject’s attention. In helping to achieve this, use of celebrity endorsers is a widely-used marketing strategy. In this modern age, people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great significance. In this process, the companies hire celebrities from a particular field to feature in its advertisement campaigns. The promotional features and images of the product is matched with the celebrity image, which tends to persuade a consumer to fix up his choice from a variety of brands. Companies invest large sums of money to align their brands and themselves with endorsers. Such endorsers are dynamic with both attractive and likeable qualities and companies plan that these qualities are transferred to products via marcom activities. Furthermore, because of their fame, celebrities serve not only to create and maintain attention but also to achieve high recall rates for marcom messages in today’s highly cluttered environments. Similarly, every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. The celebrity endorser fits in between these two interactions, where he tries to bring the image of the product closer to the expectation of the consumer, by transferring some of the cultural meanings residing in his image to the product. The general belief among advertisers is that brand communication messages delivered by celebrities and famous personalities generate a higher appeal, attention and recall than those executed by non-celebrities. The quick message-reach and impact are all too essential in today’s highly competitive environment. Celebrities have also been in demand having succeeded in being effective by rising above the clutter & grabbing the attention and focus of the consumer. They also succeed in creating an aspiration in the minds of the consumer to acquire what their favorite celebrity endorses.
  • 6. 5 1.1Background to the Research In today’s world the celebrities are being treated as a role model. People are changing their living style relatedwith their favorite celebrity. This thing creates a great impact on the buying behavior of the persons. This attracts the customers and ultimately increases the company productivity. Celebrities are not always creating any kind of effect on person’s mind in terms of buying. But mostly it gives a great impact on perception of choosing any product. We are always thinking that if our favorite celebrity is using them. Then we should use that to be like them (Khatri 2006). From last 150 years advertising is changing in different phases from the classical to modern. Now a day it’s the best strategy used by marketers to influence customers by showing celebrities with their products, it includes different appeals lie, exciting, absurdity, sexual etc. Belch, G. and Belch, M. (2008) acknowledged that the main aim of formulating such strategies is to get high brand revelation, longing, concentration and curiosity.To do so, marketers attach famous personalities with their products. McCracken (1989) stated that these famous personalities had great influence on the consumer’s buying behavior that’s why it becomes the most attractive tool of advertising now a day. The major aim to do advertising and adopt this strategy is to influence customers towards the products (Ohanian 1990). According to Patrick Bishop (2000), a Marketing Expert, “When you get a celebrity to endorse your company or sign licensing agreement, you benefit from customer awareness of the property, which could include the perception of the quality, education value or a certain image. If a celebrity is endorsing or the business is selling the product of a well-known person or entity, then people assume they must be a good company to deal with.” Both entities represent nodes in a cognitive network, whose connectivity can establish contingency between the two entities. Marketers must understand what happens to the buying decision of the customer when the cultural meanings of celebrities are disgraceful. This is because the customer purchasing and using the product endorsed by the celebrity can obtain some of those meanings and use them in constructing self-control. This research is specifically on celebrity endorsement and the influences it has on consumer buying behavior.
  • 7. 6 1.2Statement of the problem: It has identified that celebrity endorsement has significant role in developing a brand image in the minds of consumer which ultimately influence their buying behavior and marketers greatly emphasize on these strategies to capitalize, the study was conducted to measure the influence of celebrity endorsed ads on the purchasing decision on consumer, consumers’ perception towards endorser and product endorsed and how these perceptions influence their purchase decision. 1.3Research Question:The Research Questionnaire was borrowed from another article. 1)SD= Strongly Disagree 2)D= Disagree 3)N=Neutral 4)A=Agree 5)SA= Strongly Agree s.no Item SD D N A SA 1. Do you buy a product which is endorsed by a celebrity? 2. Do you get attracted to buy a product/brand endorsed by a celebrity? 2. Do you think that ads having celebrities are more effective than those which don’t? 3. Would you switch from you regular products to a new product endorsed by your favorite actor/ actress? 4. Does the presence of a celebrity help you recognize a brand? 5. Are the claims made in advertisements having celebrities believable? 6. Celebrity endorsed ad grab an audience's attention more easily than a standard ad. 7. Are you able to identify the product because of the celebrity associated with it? 8. I don’t believe the celebrities also use those products which they themselves endorse. 9. If a celebrity you disliked was endorsing a brand you often purchase from, would this change your consumer interests? 10. I find product endorsed by celebrities are trustworthy. Gender:  Female  Male Age (In Years):  15-20  15-20  26-30  Above 30 Education Level:Matric Intermediate Under GraduatePost Graduate
  • 8. 7 11. I find product endorsed by celebrities are informative. 12. I find product endorsed by celebrities are interesting. 13. Celebrities help me more to remember a brand/product. 14. My favorite celebrity give a positive image to the endorsed brand. 15. I think that "negative publicity" about a celebrity endorser can influence my decision of buying a brand? 14. I will stop buying a brand if my favorite celebrity endorsing it gets involved in scandal 15. I buy a product just because the celebrities are using it. 16. I think celebrity endorsement is an important factor when I make my decision 17. I would buy a brand if my favorite celebrity is endorsing it. 1.4Objective of the study: The research objectives of this research are as follows: • To explore the consumers’ perception towards brands and celebrity endorsement. • To identify the influence of celebrity endorsement on consumer buying behavior. • To measure the impact of advertisements endorsed by celebrities. 1.5Significance of the study: The study explained the impact of celebrity endorsementin the mind of customer that how a consumer perceivecelebrity endorsed advertisement and which is the majorelement that influence them to prefer their choices frombrands to brands in the market. Thisstudy is concise on the common need of a person and it issignificantly valuable for marketers, researchers, studentsand advertisers. It can be further used for study andresearch purpose. 1.6Limitation of the study: This research has the following limitations: • The research is concise to study consumer’s perception towards products. • The area of research is restricted to Karachi and the sample size was 100 – Male and Femalesof different age and preferences. • The major constraint for this research was time.
  • 9. 8 1.7Scope of the study: The study is conducted in Benazir Bhutto Shaheed University from students ofdifferent age group. This study has examined that how celebrityis effective for endorsing the products and howcompanies can make their brand much more powerful intheir customer’s mind through this communication tool. 1.8DEFINITION OF KEY TERMS: Celebrity endorsement Khatri (2006) studied that the celebrity endorsement is the Promotion strategy to attract the customers. By analyzing the current market, now it’s become the need of the marketers to use the different famous personalities to relate with their brands to create unique identity of the brand and to do famous his company’s brand orproduct, which results high expenditure for the company to use that strategy, however nowadays it is used to be apowerful strategic tool to get maximum profit. It also shows that this can carry risk, because there is no surenessthat the celebrity can come up with the sales generation of the firm. But it creates a buzz and gives popularity tothe company and the brand. This can increase the expectation of the customers in terms of real star by delivering the company promise. There are certain perspectives occur where the real persons can work better than the celebrities’ endorsement, but not always. Purchase Intension: The willingness of a customer to buy a certain product or a certain service is known as purchase intention. Purchase intention is a dependent variable that depends on several external and internal factors. Some of the factors are as follows: Stimulus/Trigger: The cue that triggers a buyer towards considering a product or a brand to be included in their consideration set. This might be the attributes of a product or simply its packaging Outcome expectation: The outcome expected out of the use of a product or a service Aspirational Value: The product might satiate some aspirations of a buyer. For ex. A luxury car Recommendation: Recommendation by a trust worthy or reliable source Emotional association: Being emotionally associated with a product or a brand owing to the brand’s perceived personality Other factors can be perception about the product, associated risks and costs.
  • 10. 9 Consumer Buying behavior Buying behavior is a process by which a people search for the product/services they need or want, make decisionto buy the required and most suitable one from different alternatives, use and the dispose it. For makingmarketing decision buying process model is playing a very important role for any one. It makes marketers tothink about each step of this process rather than just purchase decision because if marketers just consider thepurchase decision, it may be too late for a business to influence the choice of customers. According to this modelthe customer pass through all stages for purchasing every goods or services. However, in more regularpurchases, customer often skips some the stages Celebrity Endorsement in Pakistan: In Pakistan, very little number of peoples’ behavior is influenced because of the factor that a particular brand’s advertisement has a celebrity in it. But when a sample is asked about the last recall advertisement 8 out 10 were of celebrity endorsed advertisements. Recall rate is high when someone sees a celebrity in an advertisement whether it’s a Print Ad or Television Commercial. Chapter: 2
  • 11. 10 2.1 Literature Review Celebrity endorsement is a form of publication by portraying a well-recognized sports or entertainment celebrity to be a brand ambassador for a company or firm, and by using their social status to promote a service or product (Udo, Nwulu, & Stella, 2015) Celebrities are perceived to hold qualities such as attractiveness, expertise, trustworthiness and likeability, which advertiser's hope will be transferred to the brand or product consequently creating positive images for that product or brand (Muda et al., 2012).Many consumers idolize celebrities and strive to imitate their lives with the clothes they wear and products they consume (Aureliano-Silva et al., 2015). Celebrities create meaning for the consumer through their interactions with products in advertising (Muda et al., 2012; Aureliano-Silva et al., 2015) According to findings of the research, celebrity endorsed advertisement is not only utilized to create brand awareness and brand recognition but they help the company to capture target audience. Celebrity do not take the advertisement effective but other factors like product performance, quality and brand image, personality and trustworthiness of celebrities make the mind of consumer to choose the particular product of his/her choice. Moreover these elements play a major role in making an advertisement successful and in influencing the purchasing behavior of the consumer.(Khan, 2016) Mr. Javeed Ahmed Khan said that Celebrity endorsement enhances the product information and creates awareness amongconsumers. It helps them to recall the brands of the endorsed products. A Taiwanese study shows that consumers show greater recall of products that have been endorsed by celebrities – regardless of whether they are actual fans or not. The human brain recognizes celebrities similarly to how it recognizes people we actually know. The effect is that, if consumers happen to be fans, they place a higher value on products that celebrities are endorsing – it is as if they are receiving advice from a valued friend(http://www.guided-selling.org/impact-of-celebrity- endorsement-on-consumer-buying-behavior/) Advertising that features a celebrity creates attention and generates awareness of the product. Your company can gain new customers from the celebrity's fan base. For instance, a well-loved local guitarist could draw attention to your musical instruments shop. Fans who have faith in the personality are most likely to purchase your products or, at least, have a greater intention to buy. The advertising also gains the attention of consumers with a casual interest in the celebrity.
  • 12. 11 A celebrity’s reputation is tied to that of the company after appearing in the company’s advertising. If a respected celebrity appears in advertising for an imperfect brand, the views of the brand could improve or the celebrity’s reputation could worsen. Also, if the celebrity’s reputation suffers, the formerly positive views of the brand could suffer too.Celebrity endorsements can affect sales positively or negatively. Consumers are likely to purchase the product if they feel that the celebrity is likable, sincere and appropriate for the item. However, the reverse is also true. Sales could diminish if the celebrity does not appeal to the target market, is not credible or gains negative publicity. In some cases, consumers are indifferent and there is no noticeable change in sales. A local football player endorsing your veterinary practice might not draw much interest, unless he is known for loving animals. (http://smallbusiness.chron.com/effect-celebrities-advertisements- 56821.html) Celebrity endorsements need to be approached carefully, manipulated thoroughly and utilized effectively in order to reap the full benefits. When looking for a celebrity to represent a brand, it's important to know what the expectations of having that celebrity endorsement areDifferent celebrities will accomplish different things for a brand as an endorser. Instinct would have us choose the celebrity with the most fans because more fans mean more customers. While this strategy works in some situations, it's not necessarily the best plan of action. There has to be some sort of collaboration or connection between celebrity and brand. A brand's ambassador or endorser shouldn't be some random celebrity.Take advantage of existing connections and fan bases, too. Celebrities serve as channels between buyer and seller. If your brand is seeking an audience that happens to follow a certain celebrity, then it should have that particular celebrity endorse its products. Endorsements are most effective when the celebrity's audience already overlaps with the brand's desired audience. In the marketing world, a celebrity is only as valuable as his or her public image, and if that image becomes tarnished in any way, it's usually bad for business. Just as a celebrity has the power to attract individuals to a brand, he or she has the power to deter individuals all the same. ( By Alex Cotraviwat May 27 2015) Chapter: 3
  • 13. 12 Research Methodology 3.1 RESEARCH DESIGN: The research is qualitative and hypothesis testing in nature. Primary and secondarydata sources have been collected. 3.2 PROCEDURE: Questionnaire were used as an instrument to collect a data and data is collected by two ways: Personal survey in Benazir Bhutto Shaheed University Lyari Karachi. And some random samples from different places of Karachi. 3.3 POPULATION: The population of this study is mostly Karachi people 3.4 SAMPLE AND SAMPLING METHODS: 100 are the sample size for this research to examine the impact of celebrity endorsement on buying behavior. Convenient technique is used. 3.5 INSTRUMENT SELECTION: We borrowed the questionnaire from the research study on the topic of impact of celebrity endorsement on buying behavior A questionnaire will be given to the sample population in order to identify the buying pattern of consumer’s on the basis of given variables. Each variable is measure by asking the questions and use interval scale ranging from: 1. Strongly Disagree 2. Disagree 3.Neutral 4.Agree 5.Strongly Agree 3.6 VARIABLES: The Dependent variable is the buying behavior and independent variable is the celebrity endorsement. We operationalize the celebrity in its three main attributes namely, attractiveness, credibility and meaning transfer. And we see their impact on the buying behavior. 3.7 HYPOTHESIS: H0: There is no impact of celebrity endorsement on consumer’s buying behavior. H1: There is an impact of celebrity endorsement on consumer’sbuying behavior.
  • 14. 13 3.8 PLAN OF ANALYSIS: To analyze the research outcome the results of descriptive analysis of all dependent and independent variables are decide. 3.9 SOFTWARE EMPLOYED: To make analysis of data it will use SPSS software in which we will make analysis in to two parts where part one will lead descriptive statistics that will be use to describe and summarize data and include measures of central tendency (average) and dispersion (the spread of data or close each other is to the measure of central tendency). 3.10 RESEARCH SCHEDULE: s.n o Task name Duration Start Finish Predecessor FEB 2017 MARCH 2017 APRIL 2017 MAY 2017 5 1 0 1 5 2 0 2 5 2 8 5 1 0 1 5 2 0 2 5 3 1 5 1 0 1 5 2 0 3 0 5 1 0 1 5 2 0 2 5 3 0 1 Proposal 12 day 4 feb- 17 16 feb 17 2 Literature review 8 Day 02 mar 10 mar 3 Primary data 15 day 22 mar 12 apr 1 4 Data analysis 15day 17 apr 02 may 4 5 Recommendation & conclusion 8 day 04 may 12 may
  • 15. 14 Chapter: 4 Data Analysis FREQUENCIES: Statistics Age Gender Education Status N Valid 100 100 100 100 Missing 0 0 0 0 Mean 2.2000 1.4800 3.0700 1.2000 Median 2.0000 1.0000 3.0000 1.0000 Mode 2.00 1.00 3.00 1.00 Sum 220.00 148.00 307.00 120.00 TABLE 4.1: Gender Frequency Percent Valid Percent Cumulative Percent Valid Female 52 52.0 52.0 52.0 Male 48 48.0 48.0 100.0 Total 100 100.0 100.0 GRAPHICAL REPRESENTATION: 4.1 INTERPRETATION:
  • 16. 15 The questionnaires were distributed to 100 respondents.52% responses were collected from female respondents,48% responses from male respondents. The sample size was sufficient for the study of this research from different perspectives TABLE 4.2: Age Frequency Percent Valid Percent Cumulative Percent Valid 15-20 26 26.0 26.0 26.0 21-25 37 37.0 37.0 63.0 26-30 28 28.0 28.0 91.0 Above 30 9 9.0 9.0 100.0 Total 100 100.0 100.0 GRAPHICAL REPRESENTATION: 4.2 INTERPRETATION: Out of 100 respondents 26 respondents were between15-20, 37 respondents were below 21-25, 28 respondents were between 26-30 and 9respondentswere above 30. The questionnaires were distributed to people with heterogeneous ages which are considerably reliable for the study TABLE 4.3: Education
  • 17. 16 Frequency Percent Valid Percent Cumulative Percent Valid Matric 6 6.0 6.0 6.0 Intermediate 4 4.0 4.0 10.0 Under Graduate 67 67.0 67.0 77.0 Post Graduate 23 23.0 23.0 100.0 Total 100 100.0 100.0 GRAPHICAL REPRESENTATION: 4.3 INTERPRETATION: Out of 100% respondents the education level of 6% respondents was matric, 4% respondents was Intermediate, 67% respondents was under graduated and 9% respondents was post graduated. TABLE 4.4: Status Frequency Percent Valid Percent Cumulative Percent Valid Single 80 80.0 80.0 80.0
  • 18. 17 Married 20 20.0 20.0 100.0 Total 100 100.0 100.0 GRAPHICAL REPRESENTATION: 4.4 INTERPRETATION: Out of 100% respondents 80% respondents were single and20% respondents were married.
  • 19. 18 FREQUENCIES OF QUESTIONS: Q1)Do you get attracted to buy a product/brand endorsed by a celebrity? The pie chart shows that 12% of respondents were Strongly Disagree, 27% were Disagree, 8% were Neutral, 31% were Agree and remaining 22% were Strongly Agree. So, here the result cannot be concluded. Q2 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 11 11.0 11.0 11.0 Disagree 19 19.0 19.0 30.0 Neutral 14 14.0 14.0 44.0 Agree 36 36.0 36.0 80.0 Strongly Agree 20 20.0 20.0 100.0 Total 100 100.0 100.0 Q2) Do you think that ads having celebrities are more effective than those which don’t? The pie chart shows that 11% of respondents were Strongly Disagree, 19% were Disagree, 14% were Neutral, 31% were Agree and remaining 20% were Strongly Agree. Here mostly respondents agreeing with the statement. Q3 Q1 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 12 12.0 12.0 12.0 Disagree 27 27.0 27.0 39.0 Neutral 8 8.0 8.0 47.0 Agree 31 31.0 31.0 78.0 Strongly Agree 22 22.0 22.0 100.0 Total 100 100.0 100.0
  • 20. 19 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 11 11.0 11.0 11.0 Disagree 28 28.0 28.0 39.0 Neutral 25 25.0 25.0 64.0 Agree 13 13.0 13.0 77.0 Strongly Agree 23 23.0 23.0 100.0 Total 100 100.0 100.0 Q3) Would you switch from you regular products to a new product endorsed by your favorite actor/ actress? The pie chart shows that 11% of respondents were Strongly disagree, 28% were Disagree, 25% were Neutral, 13% were Agree and remaining 23% were Strongly Agree. Here respondents with disagree opinion are higher in number. Q4 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 11 11.0 11.0 11.0 Disagree 20 20.0 20.0 31.0 Neutral 23 23.0 23.0 54.0 Agree 30 30.0 30.0 84.0 Strongly Agree 16 16.0 16.0 100.0 Total 100 100.0 100.0 Q4) Does the presence of a celebrity help you recognize a brand?
  • 21. 20 The pie chart shows that 11% of respondents were Strongly disagree, 20% were Disagree, 23% were Neutral, 30% were Agree and remaining 16% were Strongly Agree. Here respondents with agree opinion are higher in number. Q5 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 10 10.0 10.0 10.0 Disagree 34 34.0 34.0 44.0 Neutral 27 27.0 27.0 71.0 Agree 17 17.0 17.0 88.0 Strongly Agree 12 12.0 12.0 100.0 Total 100 100.0 100.0 Q5) Are the claims made in advertisements having celebrities believable? The pie chart shows that 10% of respondents were Strongly disagree, 34% were Disagree, 27% were Neutral, 17% were Agree and remaining 12% were Strongly Agree. Here respondents with disagree opinion are higher in number. Q13 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 14 14.0 14.0 14.0 Disagree 18 18.0 18.0 32.0 Neutral 28 28.0 28.0 60.0 Agree 23 23.0 23.0 83.0 Strongly Agree 17 17.0 17.0 100.0 Total 100 100.0 100.0 Q13) I think that "negative publicity" about a celebrity endorser can influence my decision of buying a brand? The pie chart shows that 10% of respondents were Strongly disagree, 34% were Disagree, 27% were Neutral, 17% were Agree and remaining 12% were Strongly Agree. Here respondents with disagree opinion are higher in number
  • 22. 21 Q14 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 16 16.0 16.0 16.0 Disagree 29 29.0 29.0 45.0 Neutral 27 27.0 27.0 72.0 Agree 23 23.0 23.0 95.0 Strongly Agree 5 5.0 5.0 100.0 Total 100 100.0 100.0 Q14) I will stop buying a brand if my favorite celebrity endorsing it gets involved in scandal The pie chart shows that 16% of respondents were Strongly disagree, 29% were Disagree, 27% were Neutral, 23% were Agree and remaining 5% were Strongly Agree. Here respondents with disagree opinion are higher in number. And on second the respondents were neutral. Q15) I buy a product just because the celebrities are using it. The pie chart shows that 24% of respondents were Strongly disagree, 22% were Disagree, 22% were Neutral, 20% were Agree and remaining 12% were Strongly Agree. Here respondents with disagree opinion are higher in number. And on second the respondents were neutral. Q15 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 24 24.0 24.0 24.0 Disagree 22 22.0 22.0 46.0 Neutral 22 22.0 22.0 68.0 Agree 20 20.0 20.0 88.0 Strongly Agree 12 12.0 12.0 100.0 Total 100 100.0 100.0
  • 23. 22 Q16 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 20 20.0 20.0 20.0 Disagree 25 25.0 25.0 45.0 Neutral 23 23.0 23.0 68.0 Agree 18 18.0 18.0 86.0 Strongly Agree 14 14.0 14.0 100.0 Total 100 100.0 100.0 Q16) I think celebrity endorsement is an important factor when I make my decision. The pie chart shows that 20% of respondents were Strongly disagree, 25% were Disagree, 23% were Neutral, 18% were Agree and remaining 14% were Strongly Agree. Here respondents with disagree opinion are higher in number. And on second the respondents were neutral. Q17 Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 19 19.0 19.0 19.0 Disagree 20 20.0 20.0 39.0 Neutral 21 21.0 21.0 60.0 Agree 30 30.0 30.0 90.0 Strongly Agree 10 10.0 10.0 100.0 Total 100 100.0 100.0 Q17) I would buy a brand if my favorite celebrity is endorsing it. The pie chart shows that 19% of respondents were Strongly disagree, 20% were Disagree, 21% were Neutral, 30% were Agree and remaining 10% were Strongly Agree. Here respondents with agree opinion are higher in number. 4.5 RELIABILITY: Scale: ALL VARIABLES Case Processing Summary
  • 24. 23 N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .754 17 This data is reliable because reliability percentage is more than 60%. 4.6 CORRELATION: Descriptive Statistics Mean Std. Deviation N Celebrity_Endorsement 35.7500 6.16830 100 Buying_Behavior 17.5400 4.86467 100 Correlationsb Celebrity_Endor sement Buying_Behavio r Celebrity_Endorsement Pearson Correlation 1 .532** Sig. (2-tailed) .000 Buying_Behavior Pearson Correlation .532** 1 Sig. (2-tailed) .000 **. Correlation is significant at the 0.01 level (2-tailed). b. Listwise N=100 4.7 REGRESSION: Variables Entered/Removeda Model Variables Entered Variables Removed Method 1 CelebrityEndorsementb . Enter a. Dependent Variable: BuyingBehavior b. All requested variables entered.
  • 25. 24 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .532a .283 .276 4.13896 a. Predictors: (Constant), CelebrityEndorsement ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 664.005 1 664.005 38.761 .000b Residual 1678.835 98 17.131 Total 2342.840 99 a. Dependent Variable: BuyingBehavior b. Predictors: (Constant), CelebrityEndorsement Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.530 2.446 1.034 .304 CelebrityEndorsement .420 .067 .532 6.226 .000 a. Dependent Variable: BuyingBehavior
  • 26. 25 Chapter: 5 1. Conclusion & Recommendation People don’t believe such ads because the celebrities these days are endorsing any product as long as it pays a lot. People tendto lose faith in such products and in the long run the actor. The popularity and the credibility of the actors play a veryimportant role in convincing people. Since, actors these days endorse a lot of products people are losing their faith in them.Even though the impact of celebrity endorsements focus on business growth, the brands without celebrities and popular personalities have been equally received by the customers. The attractive advertising campaign and product tag lines andcaptions have a major influence on the customers to avail these products. Despite dependence on celebrity endorsements, fewbrands have embedded their image on consumers' psyche as the most consistent source. The customers buy the products on the basis of the product’s quality and the consistency of the quality.So, what the marketers need to do is, find a way that is more suitable. Have advertisements that are meaningful from thepoint of view of the consumers and do not add to the cost of the product. Because the celebrities endorse more than oneproduct, brand recall for people becomes difficult for the consumers.But, we can see that celebrity advertising is not going to go away any time soon but the impact on the buying behavior ofpeople because of it is reducing considerably.Taking a lesson from the above-mentioned brands, marketers can also have normal people, who do not belong to theglamour industry, in their advertisements. The marketers need to make ads that are more believable and use celebrities in theirads more carefully and after a lot of thought
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