Celebrity Endorsement - Essay Example

PORTFOLIO UNIT 2 Introduction I propose to conduct a research to determine why companies choose celebrities to endorse their products, on what basis they select the celebrities and whether they get the expected returns from such endorsement. Consumers are attracted through advertising and promotions. The first impression that a consumer attains through advertising influences his purchasing decisions. To create a positive impression, companies try to create a distinctive brand image for their products. The strategy is to utilize celebrities as endorsers in marketing campaign and it is growing increasingly popular. Companies usually use talent – movie actors, models, athletes or famous people for endorsement (Bergeström & Skärfstad, 2004). Not just the large firms, even smaller companies with limited budget use sports and athletes to promote their products. I will look into the benefits that companies derive from such endorsement. Background/literature Review A celebrity is defined as "an individual who is known to the public (i.e., actor, sports figure, entertainer, etc.) for his or her achievements in areas other than that of the product class endorsed" (cf., Friedman and Friedman 1979 cited by Kamins, Brand, Hoeke & Moe, 1989). Celebrities exert their influence on the consumers through perceived attributes such as expertise, trustworthiness, attractiveness, familiarity, and likeability and hence celebrity endorsement becomes more attractive when images or the characteristics of the celebrity match the endorsed product (Choi, Lee & Kim 2005). The use of celebrities for product endorsement was on the rise in the late 1970s. While it was estimated that 15 percent of prime time television commercials featured celebrities in 1975, by 1978 it was reported to be over 20 percent (Kamins, Brand, Hoeke & Moe, 1989). On the other hand, according to a report published in Campaign (2007) a survey revealed that only 16 percent of the people would buy products that had celebrity endorsement. Since 2001 the number of television ads featuring celebrities has been steadily increasing as the budgets have tightened and researchers not sure to what extent celebrities make a difference to the sales. Marketing Week (2006) suggests that when celebrities are used to endorse a product, people quickly forget the product that has been endorsed and the celebrity becomes the focus of attention while ECM (2007) suggests celebrity trend is already weakening in the US. Cross-cultural studies also suggest that celebrities with worldwide recognition in advertising is an effective means of overcoming cultural difficulties but others contend that fundamental values remain divergent across cultures (Choi, Lee & Kim). Companies all over the world spend millions every year to acquire celebrities to endorse their product. Consumer psychology plays and important role and enhancing motivation is a technique that involves the creation of an attractive and interesting message that will create positive effect (Hallahan, 2000). A trustworthy source can generate the strongest opinion change by consumers (Mehulkumar, 2005). Consumer perception depends upon the similarity between the source and the receiver (Charbonneau & Garland, 2005). Celebrities endorsing multiple products have also raised controversy. This can diminish consumer perceptions and celebrity credibility and likeability (Charbonneau & Garland, 2005; ECM, 2007; Schlecht, 2005) but if one product has multiple celebrity endorsements, the results are better as it can appeal to various audiences (Schlecht, 2005). Celebrity endorsement is a process of three stages which constitute cultural meaning transfer from celebrity to consumer to product (Mustafa, 2005). The weightage that celebrities would carry is far greater than anonymous people endorsing a product. Secondly, people associate a meaning to the product that they buy, in the sense people do not buy products just for what they do but also for what the product means. Besides, there are risks associated with endorsement as the endorser could be involved in any controversy, and negative attitudes to the brand can develop. This may not be tolerated by consumers as the celebrities are supposed to be ideal, idealistic and sublimated models of perfection (Murdoch, n.d.). The economic benefits both to the consumer and the seller have to be ascertained to determine the impact of celebrity endorsement. Thus based on the above literature studied, the framework for the research would consist of assessing the positive and negative impacts of celebrity endorsement, the effect of one celebrity endorsing multiple products and of several celebrities endorsing one product. Consumer psychology would be given importance. Rationale for research Celebrity endorsement is extensively being used for promoting wide variety of products but the outcome is debatable. There are several issues concerning the use of celebrities to endorse products. While this concept started in the early 1970s, it gained greater heights but towards the end of the century there was a decline. It was felt that celebrities do too many things which discourage a buyer. Secondly, the characteristics of the celebrities are important to influence the purchase decisions. Thirdly, the attributes of the celebrity that is popular in one region may not be a success in another region. These gaps in the literature are expected to be filled by a study of literature from different sources. Research Aims: 1. To determine the trend in celebrity endorsement in the past ten years 2. To determine the positive and negative impact that celebrity endorsement has created. 3. To determine the effect of multiple endorsement. 4. To study the consumer perception of celebrity endorsement. 5. To study the economic benefits to the company using celebrities for endorsing their product. Methodology As plenty of literature is available, secondary research would be to review current literature. A literature review provides the meaningful context of the project within the universe of already existing research (Obenzinger, 2005). Previous perspectives can be synthesized and a new one gained. Celebrity endorsement is in itself a topic which involves the attributes that the celebrity should have or the attributes that sell. This section will narrow down the study to understanding the advantages and hazards of celebrity endorsement and based on the principles of consumer psychology use the meaning transfer model to understand the impact of Celebrity Endorsement on consumers perception and attitude. To confirm and verify the data analyzed through secondary research, qualitative primary research would be conducted. The qualitative research method would be applied as it has an inherent flexibility because data collection times and methods can change as the research proceeds and the situation evolves (Amaratunga et al., 2002). The deductive or the quantitative method would not bring to light the deeper, underlying meanings and explanations of the data collected. Self-administered questionnaires would be used to determine the impact that celebrities make on individuals. This method of data collection allows the ability for unambiguous data to be collected (Redmond & Griffith, 2003). It would also help to understand the perceived benefits that companies have in using celebrities to endorse a product. The format will be simple and straightforward as it is difficult to control the respondents’ interpretation of questions. Both consumers and the companies would be used for data collection. The questionnaire would be devised based on the conceptual framework as per literature review. The data collected would then be analyzed using likert scales and available computer software. Resources Through library sources, academic books and journals would be used for literature review. Since it is difficult to probe celebrities from different fields, sport celebrities would be concentrated upon. Thereafter generalization can be derived. To have access to some online sources, library charges may have to be incurred. Costs may also be involved in the purchase of software to analyze the data collected. Timetable The projected is expected to be completed in Task Duration Resources Literature Review One month Journals, computer, internet Collect contact details of companies that use sports celebrities 15 days Advertising companies/phone Design questionnaire One week Computer, internet Send emails to companies One week Computer/internet Random questionnaires distribution to consumers at different locations like university campus/tube station Three weeks Transport/phone/paper Data collection/analysis/conclusion Two months Computer/software Expected outcome This study is expected to bring to light the reasons why recently there has been a decline in using celebrities for endorsing a product. The research would then lead us to conclude whether the decline is factual or a presumption. It would ultimately lead us to conclude whether celebrities can influence the purchase decision and whether the company derives economies of scale in using celebrities to endorse their product. Ethical considerations/limitations Participants would be informed of the purpose of the research and names of the respondents would not be disclosed. The data, after feeding the responses in the computer, would be destroyed. The companies or the advertising agencies would not be named in the final research. Only the responses and data will be interpreted. If it is felt necessary to include the name of any company, prior permission will be sought. There is no unique research method and each method has its own difficulties. The categories listed for research may not be comprehensive or may require further sub-categories. Besides, it is difficult to predict how many participants would be willing to respond in the first place, and then how many would register true opinions. This research has limitations as only sports celebrities would be considered. It is beyond the scope of one single research to investigate into the attitude, characteristics and impact of celebrities from diverse fields. Based on this, inference will be generalized. PORTFOLIO UNIT 3A Purpose of questionnaire A questionnaire is a powerful evaluation tool. It is essential to understand the capabilities of the questionnaire and how they can help the research. A questionnaire would help to collect qualitative information Questionnaires are an inexpensive way to collect data and very often it is the only method to collect information for analysis. A well-designed questionnaire would help to collect on the specific components which would help to determine the impact of outsourcing. In the administration of questionnaire, the researchers control is limited (Gatech, n.d.). Hence the validity of the results are more reliant on the respondents. This makes it difficult to claim complete objectivity with questionnaire data. Questionnaires are used when resources are limited or when the privacy of the respondents needs to be protected. It also helps in corroborating with other findings, in this case the literature review. Objectives for the research have been clearly defined so that important issues are not overlooked and the participants’ time not wasted. In deciding the questionnaire the following steps have been taken – deciding on the information required and the respondents to be targeted, question content and wording, questions arranged in a meaningful order and format. The questions have a logical flow and will hold the interest of the consumers. The questions will also not give rise to any ambiguity in the minds of the respondents. The questions are clear and direct. No personal questions have been asked except the age of the respondent and that too has been grouped. Questions for the Questionnaire: Demographics 1. Name: 2. Age group: 18-25 years/25-40 years/40-55 years/Above 55 years 3. Sex: 4. Occupation: Student/House-maker/employed Questions to consumers 5. Which sports celebrity is your favorite? 6. Which products has that sports person endorsed recently? 7. Has this sports celebrity endorsed more than one product? 8. Has that product been endorsed by more than one sports celebrity? 9. Have you purchased the product endorsed by that sport celebrity? 10. Is it a first time purchase/repeat purchase/switched over from another brand? 11. Has the celebrity endorsement influenced your purchase decision? 12. Do you decide on the product based on the characteristics of the celebrity endorsing the product? 13. Do you think it enhances your image/self-esteem when you use that product? 14. Have you ever give up a product due to negative publicity of the endorser? Questions to Advertising agency/companies 15. Do you think sales of your product have gone up after celebrity endorsement? 16. Have you confronted any negative feedback on celebrity endorsements? 17. Do you use the same celebrity for different products? 18. Do you think once a person has become a celebrity, any product endorsed by him/her would fetch positive responses? 19. Do you use different celebrities for the same products in different region? 20. On what basis do you decide on the celebrity that you want to use for endorsing your product? Design of the questionnaire Open-ended questions have been designed to allow greater flexibility to the respondents. These questions do not have any scale and definite responses are sought. Hence after each question, space will be provided so that respondents can answer in a few words. This is the reason likert scale or any format has not been used. Merely a scale or answer is YES or NO would not suffice. Since the decision process has to be assessed, it is essential to have answer in few words. Since this is a self-administered questionnaire, the respondents are free to use as many words or take as much time they want to complete it. The researcher will have no control over the environment as well as the respondents’ responses. The privacy of the respondents is protected and since no personal questions have been asked, it is expected that the respondents would be honest in their responses. Achieving the research objectives The questions that have been covered are directly related to the aims of the research. The responses would help to corroborate the findings from the literature search. Collecting data on age and occupation would be variable against which it would be easy to determine the age group that is influenced by celebrities. The other questions directed at consumers would reveal the characteristics that influence the consumer and whether they have been influenced to the extent of switching their brand. The questions also discuss whether the same celebrity has been endorsing more than one product. The responses would enable to understand the depth in which the consumers follow their celebrities’ activities and the advertising media in general. It would also highlight if there are any negative perceptions due to which the consumers have given up the use of any product. This is important because ultimately these responses determine the future course of action. It would determine the consumer perception of the celebrity and of the concept of celebrity endorsement. Further, the questions to the companies would highlight the economic benefit that they have derived from celebrity endorsement. It would also highlight how they perceive the idea of using multiple celebrities for the same product and of the same celebrity for multiple products. The basis on which they arrive at such a decision would be known. All the questions above would help to determine the impact against different variables – age/income group and sex. This would give a comprehensive picture of how the different age group perceives of celebrities as endorsers. This can be co-related by the companies or the advertising agencies and verify if their perceptions match those f the consumers. Based on the results, the companies can alter their decision in the use of celebrities for endorsing products. it would also reveal the current trend and whether the has been decline or increase in using celebrities in the last ten years. References: Amaratunga, D. Baldry, D. Sarshar, M. & Newton, R. (2002). Quantitative and Qualitative Research in the built environment: application of mixed research approach, Work Study, Vol. 15 No. 1 2002, pp. 17-31 Bergeström, C., & Skärfstad, R. (2004). Celebrity Endorsement, Retrieved April 10, 2008 from http://epubl.ltu.se/1404-5508/2004/193/LTU-SHU-EX-04193-SE.pdf Campaign (2007). Close-Up: Live Issue - Do celebrity endorsements still work? Retrieved April 10, 2008 from British Council Journals Database. Charbonneau, J. & Garland, R. (2005), Talent, Looks or Brains? New Zealand Advertising Practitioners’ Views on Celebrity and Athlete Endorsers, Marketing Bulletin, 2005, 16, Article 3 Choi, S. J., Lee, W., & Kim, H. (2005). Lessons from the rich and famous: a cross-cultural comparison of celebrity endorsement in advertising. 34.2 (Summer 2005): p.85(14) Retrieved April 10, 2008 from British Council Journals Database. ECM. (2007). Celebrity Endorsement. Simplityle. July 2007. pp. 275-279. Retrieved April 10, 2008 from British Council Journals Database Gatech (n.d.), Questionnaire Design, Retrieved April 10, 2008 from http://www.cc.gatech.edu/classes/cs6751_97_winter/Topics/quest-design/ Hallahan, K. (2000). Enhancing Motivation, Ability, and Opportunity to Process Public Relations Messages. Public Relations Review 26.4 (Winter 2000): 463. Retrieved April 10, 2008 from British Council Journals Database. Kamins, M. A., Brand, M. J., Hoeke, S. A., & Moe, J. C. (1989). Two-sided versus one-sided celebrity endorsements: the impact on advertising effectiveness and credibility. 18.n2 (Spring 1989): p.p4(7) Retrieved April 10, 2008 from British Council Journals Database. Marketing Week. (2006). CELEBRITY ENDORSEMENT: Stars in their eyes. p.32. Retrieved April 10, 2008 from British Council Journals Database. Mehulkumar, P. (2005). An Examination of Universal Personality Endorser and the Interaction Between Perceived Celebrity Image (PCI) and Perceived Brand Image (PBI) Across National Boundaries. Retrieved April 10, 2008 from http://lubswww.leeds.ac.uk/researchProgs/fileadmin/user_upload/documents/Pajuani.pdf Murdoch, A. (n.d.), Creativity in Advertising. Retrieved April 10, 2008 from http://www.e-sgh.pl/cia/celebrity_endorsement.pdf Mustafa, N. (2005). The role of celebrities in marketing. iKnowHow. Retrieved April 10, 2008 from http://interactiveknowhow.co.uk/events/reports/cass_06_backgrounder.pdf Obenzinger, H. (2005). What can a literature review do for me? Retrieved April 10, 2008 from http://www.stanford.edu/dept/undergrad/urp/PDFLibrary/writing/LiteratureReviewHandout.pdf Redmond, E. C. & Griffith, C. J. (2003). A comparison and evaluation of research methods used in consumer food safety studies, International Journal of Consumer Studies, 27, 1, January 2003, pp17–33 Schlecht, C. (2005). Celebrities’ Impact on Branding. Retrieved April 10, 2008 from http://www.globalbrands.org/research/working/Celebrity_Branding.pdf Read More