Celebrities

How the celebrity endorsement consumers in a negative way Professional research and Evaluation Student name: Jiang WeiWei Student number: 3363314 April, 2013 Abstract The goal of this research is to grasp consumers’ negative reaction of celebrity endorsement advertisement (including the reaction of over celebrity endorsement ads, celebrity’s over-endorsement and celebrity’s negative performance). The aim of this study is trying to find out how to take advantage of celebrity endorsement advertisement more effectively and correctly in Internet-information times.

As the development of entertainment and web 2. 0 tools (such as blog, social networking sites), more and more firms would like to invite a celebrity to show up in their ads to attract more attentions of their target consumers. As a result, the effect of celebrity endorsement ads is not as effective as it was. Sometimes the celebrity endorsement would have even a counterproductive effect on consumers. Introduction Celebrity endorsement advertising has been one of the most common strategies for a brand or product to gain public’s awareness.

It has been estimated that one quarter of all advertisements employ a celebrity spokesperson to endorse a product or brand (Shimp, 1997). Freiden (1984) found that celebrities stood out in terms of trustworthiness, likability, persuasiveness and believability. However, the effect of celebrity endorsement ads has been weakened as the appearances of over celebrity endorsement ads, celebrity’s over-endorsement and celebrity’s scandal. In the literature, only few studies in celebrity have studies consumers’ negative reactions.

So findings in this area would help the advertisers select and create more effective celebrity endorser ads under the new changes. Reference David, H & Benedikte, A, 2003, ‘Factors predicating the effectiveness of celebrity endorsement advertisements’, Journal of European Marketing, vol. 38, no. 11/22, pp. 1509-1526 This research examines whether consumers infer that celebrity endorsers like the products they endorse. The study presents a model using these inferences and other characteristics of the endorser to predict attitudes toward the endorsed products.

I found this article through RMIT library database. I searched using the keywords factors of influence of celebrity endorsement. Steven, M, Edwards & Carrie, LA, Ferle, 2009, ‘Does gender impact the perception of negative information related to celebrity endorsement’, Journal of Promotion Management, 15(1), 22-35 The study examines the effectiveness of celebrity endorsement by examining how a respondent’s gender impacts identification with a spokesman and the processing of negative information about celebrity’s performance. I found this article through RMIT library database.

I searched using the keywords negative influence and celebrity endorsement. Kineta, Hung, Kimmy, W, Chan & Caleb, H, 2011, ‘Assessing celebrity endorsement effects in china: a consumer-celebrity relational approach’, Journal of Advertising Research, 10(2), 608-622 This article aims to exam how the celebrity over-endorsement effect on consumers and to explain which kind of celebrity has a deeper and wider influence on consumers. I found this article through the RMIT library database. I searched using the key world over-endorsement.

Somdutta, Biswas & Mahmood, Hussain & Kathleen, O, Donnell, 2009, ‘Celebrity endorsements in advertisements and consumer perceptions: a cross-cultural study’, Journal of Global Marketing, 22(5), 121-137 This article studies consumer perceptions of celebrity endorsements from a cross-cultural perspective. The implications for markets in this article as well as suggestions for future research as discussed. I found this article through the RMIT library database. I searched using the key world celebrity endorsement in advertising.

Kerry, 2010, Endorsement in advertising: a social history, 8th edn, illustrated, McFarland & Co, Michigan University This book introduces a brief history of celebrity endorsement advertisement from 1919 to 2003 which including some growth and changes about spokesman ads. I found this article through the RMIT library database. I searched using the key world history of endorsement ads. Robert, Macken@gmail. com, 2010, ‘UK. Election celebrity endorsement’, weblog post, 3rd May, General One File, viewed 31 March 2013, http://find. galegroup. com. ezproxy. rmit. edu. u This blog discusses the situation of celebrity endorsement in UK which in a typical country would represent an average state of celebrity spokesman ads. I found this article through the RMIT library database. I searched using the key world celebrity in UK. Angela, B & Maureen, W, 2003, ‘The naked truth of celebrity endorsement’, Journal of British Food, vol. 105, no. 4/5, pp 288-296 This case study examines the use of celebrity endorsement in the formation of the retail image of leading European grocery. The aim of this study is to explore the essence of the spokesmen advertisements.

I found this article through the RMIT library database. I searched using the key world the truth of celebrity endorsement. Erik, J & Henri, burgers, 2009, ‘Celebrity capital as a strategic asset: Implications for new venture strategies’, Advances in Entrepreneurship, firm emergence and growth, 8th edn, Emerald Group Publishing Limited, pp. 137-160 This book explains that how the celebrity entrepreneurs benefit new ventures and shows that how the different strategic implications of celebrity capital for ventures using celebrity entrepreneurs versus endorsers.

I found this article through the RMIT library database. I searched using the key world celebrity endorsement. Elliott, T1992, ‘The media business: Advertising: New tactics on celebrity endorsement’, Newspaper of The New York Time, 3 April, p. 3 This article comes from The New York Time newspaper which discusses the new changes about celebrity endorsement as a new media tactic that has attracted much attention from consumers. I found this article through the RMIT library database. I searched using the key world new media tacyics

Chung-Kue, Hsu & Daniella, Mcdonald, 2002, ‘An examination on multiple celebrity endorsers in advertising’, Journal of Product & Brand Management, vol. 11(1), no. 6, pp. 19-29 This study discusses advantages and potential concerns of multi-celebrity endorsement advertising and documented the actual use of multiple celebrity endorsers in the milk mustache campaign in the USA. I found this article through the RMIT library database. I searched using the key world multiple celebrity endorsement. Annotated bibliography Steven, M, Edwards & Carrie, LA, Ferle, 2009, ‘Does gender impact the perception of negative information related to celebrity endorsement’, Journal of Promotion Management, 15(1), 22-35 This article seeks to define how the negative information about a celebrity impact male and female consumers in different ways (such as different extent impacts). The purpose of this article is to examine the impact of an endorsement for a gender-related product (such as cars and cosmetics). The summary of this article provides a useful overview.

The discussion is logical and reasonable, especially the first hypothesis which aims to explain negative information about a celebrity will impact consumers’ attitude towards the celebrity, endorsement/advertisement, product rating, and product interest negatively is useful and related to my research. Furthermore, most of the examples of celebrity’s endorsement (such as Josh Howard and Michael Phelps) in this article are new and typical which would explain the situation (celebrity over-endorsement) clearly.

However, the final findings from the research and hypothesis are not clearly and specific. For example, there is no exact result about which group (male or female consumers) would have a stronger reaction to negative information about endorser. The author should do a further explanation about the reason why it is hard to get the exact results. I found this article through RMIT library database. I searched using the keywords negative influence and celebrity endorsement. Kineta, Kimmy, W & Caleb, H, 2011, ‘Assessing celebrity endorsement effects in china: a consumer-celebrity relational approach’, Journal of Advertising Research, 10(2), 608-622 This article discusses consumers’ reaction about endorsed brands and over-endorsement ads in china. Following that is a deeper investigation about comparing sports celebrity with entertainment celebrity’s influence on consumers. The purpose of this article is to confirm consumers and celebrity’s relationship in china and to help advertisers to pick up a suitable spokesman for their brands and products .

The author quotes some latest literatures (such as the definition of value-transfer approach) and examples which could represent for the fast-replacing generation of celebrity. The second hypothesis of this article is helpful to my study, especially the findings about the celebrity’s capacity may be related to the diversity of the celebrity’s core value set. The finding also illustrates that not all the celebrity who endorse multiple brands would decrease their influence on consumers. At the same time, there are some shortages in this article.

Firstly, some of the investigations are too complicated to understand, especially the large number of tables and graphs which make the data difficult to calculate. In addition, the online survey samples just focused on generation-young people which is an important group but not representative of the overall consumer population. In conclusion, although this study was conducted in China market, the findings of this study would implications that beyond cultural context. I found this article through the RMIT library database. I searched using the key world over-endorsement.

Advertising is one of the most effective strategies of non-price competition, that’s why it is closely associated and widely used in terms of monopolistic competition. Companies in monopolistic competitive market can not sell more of their differentiated product without lowering the price. Thus, advertising is a great instrument to gain more customers and increase the sales without cutting the price. Despite of different views on economic effectiveness of advertising, modern large companies in monopolistic competition spend millions of dollars for promotion of own brands, goods or services.

It is a known tactic to employ celebrity endorsement for advertising own product. In particular, for many years Michael Jordan has been appearing in Nike ads, and the products of this company are associated with Jordan on global scale. Many companies use a celebrity or athlete for advertising its goods or services because celebrity endorsement attracts more attention of target audience, as well as it increases credibility and improves reputation of the brand in customers’ eyes, leading eventually to higher sales. Specialists comment that celebrity is already a known brand, and his/her endorsement of the product helps to make it more popular. “You have the core brand and then you have the celebrity brand, and, when that confluence is positive, the impact can be tremendous” (Storey, 2006).

In my opinion, participation of professional athletes in ads of certain brands can be considered quite convincing and effective from two perspectives. First of all, only successful powerful companies, which offer mostly first-class quality products, can afford inviting famous sportsmen (like Michael Jordan or David Beckham) to advertise their goods. Besides, sport is a passion of people of different ages. Both children and adults around the world love sports very much, and that’s why target audience of such advertising is very large. Nevertheless, recently British specialists found out that currently the effectiveness of celebrity endorsement is firmly decreasing (BBC News, 2007).

References

Celebrity Ads’ Impact Questioned. (2007, February 27). BBC News. The British Broadcasting Company. Retrieved February 25, 2008, from ;http://news.bbc.co.uk/1/hi/england/somerset/6400419.stm;.
Storey, L. (2006, October 12). Seeing Stars. The New York Times. Retrieved February 25, 2008.

A Celebrity Brand Strategic Fashion Management A report by Psyche Kuo 2010-11-15 Contents 1.

Introduction3 2. Shoes fit for a Princess3 3. Tamara Mellon Part co-owner, Part celebrity4 4. Power of Media6 5. Potential crises 8 * Fast fashion use the celebrities power * Celebrity brands * Celebrities’ scandals 6. Conclusion 9 7. Reference 10Introduction The following report will look at the influence of celebrities and the culture of celebrity lifestyle upon the success and the strategies adopted by Jimmy Choo.

From the beginning of Jimmy Choo as a bespoke shoemaker to the takeover of Tamara Mellon, celebrities and red carpet media events which have always been associated with its name. The report will look at the past, present and possible future strategies influenced by celebrities and its culture. Shoes fit for a princess “The late Princess Diana who was a Choo shoes devotee, made him rise to further fame in 1990.Choo has made a mark on the industry and in time was accepted as an iconic image of a classic and refined fashion designer in shoes and later in accessories. ” Naomi Silveira (2010) The late Princess Diana would be the first significant figure that helped propel Jimmy Choo shoes from great, to extraordinary. Through history we can always identify luxury brands with a celebrity face, dating back to Chanel with Marilyn Monroe and Givenchy with . It’s a key strategy that helps educate and promote the brand to the public, making the brand more desirable and more exclusive.

However, Jimmy Choo did not endorse any celebrities at that time, Princess Diana was a customer of Jimmy Choo simply because she liked the design and comfort of the Shoe. Without Princess Diana, Jimmy Choo may have not achieved the success it has today, with such a public figure photographed wearing a pair of Jimmy Choo. Tamara Mellon – Part co owner, Part Celebrity “…, understood the importance of linking celebrities to brands and was recognized as an important marketing communications tool. ” Uche Okonkwo (2006)Tamara Mellon, former UK Vogue accessories editor, was looking out for out-of-the-ordinary designs that were both chic and attention grabbing. That’s when she approached Jimmy Choo and bought 50% of his company. With her relationship with the media and her strong networking skills, Tamara Mellon managed to help the company grow to worth ? 500 million. Tamara Mellon’s relationship with the media is a very important aspect to why Jimmy Choo succeeded in such a short time p.

“Celebrities are extremely important and valuable to brands, especially in the luxury fashion sector. There is no argument about it.They wield enormous power in fashion circles and can contribute to making and breaking brands. ” Uche Okonkwo (2006) If Tamara Mellon was not a public figure as she was, it would have been difficult for Jimmy Choo to achieve the level of “ advertisement “ and public awareness without having to invest a large number of capital and resources into this key area. It was hugely beneficial that the new co-owner Tamara Mellon was already a public figure and was able to use this to her advantage. Tamara Mellon realised that celebrity are the brand icon of this generation, an icon which conjures as a mental image or an opinion.This acts as an indirect metaphor to both corporate worlds.

Just as brands and brands owners don’t necessarily coincide. Similarly, Jimmy Choo shoes aren’t made by Jimmy Choo. Jimmy Choo is no longer associated with its own brand design with Tamara Mellon whereas Jimmy Choo now focuses on Jimmy Choo Couture footwear. There are not many companies left that follow this tradition of shoes being designed by the company’s founder who brings Jimmy Choo to a few competitors which are Christian Louboutin and Manolo Blahnik.Regarding Tamara Mellon’s marketing strategy of penetration, celebrity endorsement which determines the wealth and success to the brand has lead to a factor where luxury brands appear lesser extent than consumer brands as luxury brands already have well-defined personalities. Power of Media “The rise of the cult of celebrity, in which everyone can be famous for 15 minutes, can be directly related to the rise of reality television and social networking sites. ” PricewaterhouseCoopers LLP (2007) The number of celebrity advertisements has doubled from 1996 to 2006.

It was uring 1996 that Choo established his brand name Jimmy Choo in London with the assistance of Tamara Mellon. It is no coincidence that Jimmy Choo benefitted from the boom in celebrity endorsement during these ten years. Programmes such as “Sex and The City “are just an example of how strong an influence TV have on consumers. “But the real growth story of Jimmy Choo over the past 14 years has been the riding of a tidal wave of celebrity endorsements, as well as those gushing recommendations in Sex and the City. ” Anonymous (2010) Without TV, Media and even Sex and the City, Jimmy Choo would not have become an instant household name.With millions of viewers, Sex and The City was the ideal catapult to make the name public to an even wider audience, even with the programme also “ mentioning “ rival brand Manolo Blahnik in the programme, this did not affect the sales or brand equity of Jimmy Choo. “Jimmy Choo is attractive to celebrities but they must have pushed it to celebrities as well because that is how you keep the brand in the public’s mind – most designers now want to get their shoes on the red carpet because you get so much media coverage from that.

” Maureen Hinton (2010)Disregarding that fact however, the lead analyst at the retail consultancy Veridct added that Jimmy Choo’s are attractive enough to stand on its own for it fashionable design. It was also commented that the media only acts as a reminder to the public’s mind about the brand’s image. This strengthens the foundations of Jimmy Choo’s defined image. Potential crises Celebrity endorsement is as easy as it sounds as it upholds several risks that are associated with brand communication strategy. If a luxury brand decided to use celebrity endorsement as a strategy, brands should meticulously evaluate their interconnections elements.Fast fashion use the celebrities power The current Jimmy Choo’s strategy that uses celebrity endorsement has a potential risk as the current fast market (mass production market) also uses celebrity power as a major marketing strategy. In examples to that are Gap which Sarah Jessica Parker promoting its brand and Top Shop which Kate Moss is anointed to design their clothing and accessories.

Celebrity brands Celebrities’ brands indulge in brand extension and brand architectures. They now understand the importance and influence of personal branding and are exploiting it and also extending it to commercial branding.As a result, several celebrities have ventured into the fashion and accessories businesses and more are on the way. A few examples are such as Jennifer Lopez, Sean Combs and Jessica Simpsons. Celebrities’ scandals The biggest harmful factor that Jimmy Choo can come across as a brand image is from celebrity scandals as celebrities are easily exposed to the public and may get into controversies. An image of a celebrity holds a very important role to the brand it’s promoting. A scandal may lead to a negative connotation.

Conclusion The media, TV and Public figures have always been synergetic with Jimmy Choo from the very Beginning.From the late Princess Diana, to Tamara Mellon, Sex and The City and countless of other celebrities photographed with a pair of “ Jimmys”, Jimmy Choo’s main strategy was to use this “ tidal wave of celebrity endorsement “ to its full advantage. For a new brand in a very competitive market, it was important to utilise this strength to compete with rival brands with a deeper heritage and history. Even though Jimmy Choo has always used celebrities and the media as its main source of advertisement, there are indications that t Jimmy Choo is diversifying its strategies by collaborating with other brands, such as H;amp;M and UGG.With so much reliance with its celebrity exposure, it is potential dangerous to solely rely its company’s future in such an unstable trend. With Collaborations with H;amp;M is a more stable and long-term strategy to appeal to a “ different “ target consumer. Jimmy Choo may be a shoe for the stars, but will eventually grow and establish themselves through other mediums.

1082 words (Excluding title page, direct quotations and references)Reference1. Anonymous, 2010. Jimmy Choo: The world’s most valuable shoemaker, The Independent, [Online], Available at: http://www.

independent. co. k/news/business/analysis-and-features/jimmy-choo-the-worlds-most-valuable-shoemaker-2076499. html [10 Oct 2010].

This research report is presented subject to the condition that it shall not, by way of trade sold, and circulated without the author (s) prior consent in any form, binding or cover other then that in which it is printed until unless it is done for educational purpose s purpose. The author (s) asserts the moral right. Printed in January 2009 ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 3 Project Background I the world were full of all wise men and all wise women; we would have never heard of a term called “advertisement”. And then good products would have found the right customers and grown to prosperity. Firms would have worked out a mathematical formula to sell and succeed.

But the buying process isn’t rational; and so is this world. Today, the business firms are trying out different ways in advertisement to increase their sales. Pakistanis are die-hard movie and sport buffs; and this aspect of the consumers has invited the concept of “Celebrity Endorsement” to the world of advertisement.The purpose of this report is to analyze the role of Celebrity Endorsement in the process of brand-building and consumer buying behavior by taking appropriate examples from the advertising landscape. The modern world of marketing communication has become colorful and inundated with advertisements, and it is hard to get noticed. It is an uphill task for the designer of an advertising campaign to differentiate itself from others and attract viewers’ attention. In this jet 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 buying behavior 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 are matched with the celebrity image, which tends to persuade a consumer to fix up his choice from a plethora of brands.Although this sounds pretty simple, but the design of such campaigns and the subsequent success in achieving the desired result calls for an in-depth understanding of the product, the brand objective, choice of a celebrity, associating the celebrity with the brand, and a framework for measuring the effectiveness. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 4 SYNOPSIS the brand forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on many different parameters – appeal, looks, popularity or even just a fantasy figure to endorse a brand. In today’s highly competitive markets, big brands are at loggerheads when it comes to products, each having a similar product to that of a rival. Where does one brand gain that quintessential advantage – advertising, service, promise of trust, or even the all important price factors? Advertising seems to be the best platform where brands prefer to compete on – right from hiring the best advertising agencies to getting the biggest celebrities.What would be the formula to success then? Well, a good creative agency, a large enough promotional budget and a huge star to endorse your brand would definitely ensure in the minds of a brand management team a feeling of security, success and a triumph over the competitors brand. 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.The different models applied by brands to achieve the full potential of such endorsements, highlight the need for a convergence between the theoretical and pragmatic approaches of brand building and effective advertising.

The importance of a celebrity-brand match and the various roles played by them as brand-associates show the momentum this strategy has gained in the last decade or so. We put forward certain ideas like ‘positioning by association’, I t is a known fact that the best endorsements achieve an eclectic balance between the product (brand) and the celebrity.Giving a brand a ‘face’ is more than just a marketing strategy to increase sales or gain market share, it is a decision that can change the future of ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 5 ‘diminishing celebrity utility’ and the Multiplier Effect which show the triangular relationship between the brand, the consumer and the celebrity. Pakistan is a country where people are star-struck by film stars, cricketers, politicians, and even criminals.Why? Populations of 170 million and ticking, everyday people need something or someone to look up to. A sense of security, admiration, comfort, familiarity, and above all, someone they aspire to be at some hidden level in their lives.

And clever marketers leverage this very celebrity appeal and are successfully carrying out their jobs by giving the bottom lines of all the brands what they want – profit, market share and even recall. But how much star power is too much? “Does Vaneeza really use Lux Soap? ” asked a 6 year old to her mother.Her mother laughs and says, “No way, just a gimmick. ” What does that do to the brand? Now, despite the potential benefits derived from celebrity endorsements, they increase a marketer’s risk manifolds and should be treated with full attention and aptitude. A brand should be cautious when employing celebrities to ensure promise believability and delivery of the intended effect. The growing importance of mythical characters as celebrities and their sway over the target segments are ample proof of public demand for icons to look up to.As the celebrities traverse from a mere commercial presence to public welfare message endorsements, a whole new dimension is added to this process and helps us in achieving a holistic view of the impact which celebrities generate in every sphere and segment through their well-versed endorsements.

At the end of the day, do any stakeholders in a company (employees, contractors, customers, shareholders, communities the company supports with jobs) benefit from a celebrity endorsement? Does anyone buy a product because a Lollywood or TV actor/actress or Model stands up and reads a script in somewhat convincing manner?Are their distinctions in how consumers perceive these types of endorsements and respond to them? ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 6 What happens when a celebrity endorser gets involved in a public scandal, or worse, dies? Will the product lose consumer support or perish? The most important thing to remember is that putting a celebrity in an ad is not an idea in itself.Unfortunately, this is how most celebrities are being used in Pakistani advertising, where they just become a prop. Ideally, there should be an idea that makes the celebrity relevant to the product and the consumer. A celebrity’s presence in the ad should be contextual. Celebrity endorsement cannot guarantee fool-proof success. The celebrity endorsement strategy must be integrated with target market characteristics, and the other elements of the marketing mix such as product design, branding, packaging, and pricing.

The message execution that will be mouthed by the celebrity must likewise be made clear and single-minded.You can do this cleverly by aligning the spirit of the brand to the product, or by using a celebrity because it ensures that people will notice you, and hopefully remember what the brand is saying. Smart associations are ones where the former happens. Before we go into analyzing success and failure stories of brands, we examine the title once again and try looking at it extremely minutely ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value]Published in Jan. 2009 | 7 THE IMPACT impact could be measured would be on a comparative basis of the brand before and after the celebrity began endorsing the brand. Sales / revenue, market share, brand recall, level of repurchase, brand loyalty, trust, image and perception of the brand per say. In this trend of creative advertising, we see usage of celebrities of all walks in life – particularly actors, film stars, models, sports persons, and the whole gamut.

But the usage can always backfire if the choice of the star is completely contradictory in nature to the brand.Believability and association of brand to celebrity is important. Selection of celebrities can be done while they are at their peak or when they are destined for greatness in the near future, again a risk that may go either way. What is important at some level is the value that a celebrity adds to a particular brand. The advertiser tries his best to make the celebrity and brand as analogous as possible. The celebrity endorser is seen to score quite well on dimensions such as trustworthiness, believability, persuasiveness, and likeability when tested for reaction from people.This is important to a marketer as if he can get a celebrity to make the masses follow, believe or listen to him, he has been successful.

A s defined earlier, impact would be both short term and long term, but here the focus would be more on the long-term implications of the brand. Measurement of this would be challenging and data would be difficult to obtain. The parameters on which ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 009 | 8 DEFINITIONS OF CELEBRITIES said that within a society, celebrities generally differ from the common people and enjoy a high degree of public awareness. Among the classic forms of celebrities, actors (e. g. , Shan, Reema Khan, Sana, etc.

), models (e. g. , Mehreen Gillani, Vanzeeza Ahmed, etc. ), sports-persons (e. g. , Waseem Akram, Jan Sher Khan etc. ) are significant.

According to Friedman and Friedman, a “celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed”.Compared to other endorser types, famous people always attach a greater degree of attention, recall and loyalty. According to Melissa St. James, a doctoral fellow and marketing instructor at The George Washington University, “Studies show that using celebrities can increase consumers’ awareness of the ad, capture [their] attention and make ads more memorable. ” In this age of intense competition, where capturing a position in the consumers’ mind space is extremely tough, celebrity endorsements give an extra edge to the companies for holding the viewers’ attention.Celebrities can catalyze brand acceptance and provide the enormous momentum that brands require by endorsing the intrinsic value to the brand. So, in the Pepsi advertisement; singer Annie or actress Reema Khan are the celebrity endorsers for the product or brand called Pepsi and this process is referred to as Celebrity Endorsement.

C elebrities are people who enjoy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness, extraordinary lifestyle or special skills that are not commonly observed. Thus, it can beZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 9 IMPORTANT CELEBRITY ATTRIBUTES and the celebrity gains. The most important attribute for a celebrity endorser is the trustworthiness. The target audience must trust that a celebrity carries a particular image and it must match with the product. The second attribute in order of importance is likeability.

The celebrity also must be accepted as a popular icon by a large cross section of the audience.Companies use celebrity endorser because they are considered to have stopping power, i. e. , a celebrity can be a very useful tool to draw attention to advertising messages in a cluttered media environment. The overall popular image coupled with exact product-image match enhances the consumer attention resulting in greater brand recall. Similarity between the target audience and the celebrity is the third important attribute. A person well-known in a society can have greater impact than a celebrity of a different world.

If the endorser and receiver have similar needs, goals, interests and lifestyles, the position advocated by the brand communication is better understood and received. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. W hile selecting a celebrity as endorser, the company has to decide the promotional objective of the brand and how far the celebrity image matches with it. The selection is in fact a collaboration, from which both the companyZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 10 The Need for Celebrity Endorsement endorsement to perk up brand recall and product sales. This has now become a trend and is being perceived as a strategic means of brand building exercise.

The Elaboration Likelihood Model (EML) suggests that consumers will scrutinize claims more in important situations (say, life saving drugs) than in unimportant ones.So, for almost similar products like Coke and Pepsi, it makes sense to use endorsement. Also, Friedman & Friedman have shown that a celebrity relative to a non-celebrity spokesperson would be more effective for products high in psychological or social risk, involving such elements as good taste, selfimage, and opinion of others. For example, when actor Tallat Hussain endorses Toyota Liana drive; the consumers are made to think that he is giving his opinion to go for this car. T he charisma of the celebrities almost always entices people and their words are worshipped by a lot of people.Their influence also goes on the political front, where they are invited for political endorsement. The business firms, thus, resort to celebrity Two reasons why advertisers need celebrity endorsement are to increase the credibility & attractiveness of their advertisement.

This is solely to affect consumers’ attitude towards their brand. To justify this hypothesis, we can take the example of Sonia Jahan and Ali Zafar has turned the tables for Telenor brand called Talkshawk as sales increased by a whooping 500%. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 11 ublished The Process of Celebrity Endorsement T he process of celebrity endorsement is more of meaning translation & meaning application. A deeper insight into this complex process is provided by the following theory. The Meaning Transfer Model McCracken, the author to this model, has suggested that, “The effectiveness of the endorser “The depends, in part, upon the meaning he or she brings to the endorsement process. ” The celebrities’ effectiveness as endorsers stems from the cultural meanings with which they are endowed.

It is a three-stage process of meaning transfer that involves the formation of stage meaning celebrity image, transfer of meaning from celebrity to the brand, and finally, from the brand to the consumer. Figure 1: The Meaning Transfer Model To explain it with the help of an example, we can take the ca of Waseem Akram and Accu case Chck. The cricket icon is seen as “Mr. Dependable”. And when he endorses Accu Chck, an image . Chck of “dependability” is tagged on to the brand under promotion. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan.

2009 | 1 Celebrity Selection T • here are various scientific ways in which the right celebrity is selected for the product endorsement, which are discussed here after: Stereotyping Tellis defines stereotypes as perceptions and depictions of individuals based on simplistic, biased image of the group to which they belong, rather than on their own individual characteristics. For example: its better to select celebrities who say are teens for chocolate advertisements and females for detergent ads, etc. The TEARS1 Model Match up between Brand Image & Celebrity Image Fame, Popularity (But Brand should be Reliable) Trustworthiness Celebrity Chosen Physical Attractiveness Expertise Figure 2: The TEARS Model 1 Defined by J. Lindeberg. The attributes highlighted by the acronym “TEARS” are gauged for celebrity selection. These are Trustworthiness, Expertise, Attractiveness, Respect, and Similarity. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan.

2009 | 13Trustworthiness: Zia Muhi-u-Din who is an icon of trust; promoting KASB Bank. Expertise: Waseem Akram for a sports brand. Attractiveness: Sonia Jahan, Vaneeza Ahmed, Mehreen Gillani, Shan, etc. Respect: Social worker Abdus Sitar Edhi and the Blood donation campaign. Similarity: a child artist promoting a chocolate brand. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under question. • The No TEARS Model The “No TEARS” approach is a tool for managers and their advertisers how to go about selecting celebrities so as to avoid the pitfalls from making an unwise decision.

It gauges the following information: celebrity & audience match up, celebrity & brand match up, celebrity credibility, celebrity attractiveness, cost consideration, a working ease and difficulty factor, an endorsement saturation factor, a likelihood-of-getting-into-trouble factor Selecting the right celebrity does more than increasing sales; it can create linkages with the celebrities’ appeal, thereby adding new dimension to the brand image. Research conducted by Katherine Eckel has revealed that celebrities can get people to make a better choice but cannot influence ‘people to make a foolish choice’.ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 14 The success of celebrity endorsement in Pakistan can be sought from a market research conducted earlier which found that 8 out of 10 TV commercials scored the highest recall were those with celebrity appearances. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value]Published in Jan. 2009 | 15 ublished Brand, Celebrities ; Consumers Figure 3: Factors Impacting a Brand while being viewed by a Consumer in Media : by The model above shows the various factors that affect a celebrity endorsed brand while viewed by a consumer in the media (both TV and print). The central idea being the impact on brand and consumer behavior.

The three major parts to a brand being shown are: . The Product Advertisement The celebrity endorsing it It is important is to study the relationship between these factors and how they together act for or against the brand.The product is important, of course, it may fulfill a need, want or a desire. Quality is need, quintessential and, hence, nowadays it is understood the product is of highest quality. So what next? The advertisement is important as a good product could see an early exit if the ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 16 advertisement is handled badly, and otherwise, a mediocre product which is tastefully handled goes a long way.Lastly, the celebrity in the advertisement, recall, trust, familiarity are some of the reasons that they are used.

Now consider the interactions of these individual factors. The best of superstars can be doing the advertisement but if the product is far from the image the star has, the whole advertisement is a waste. Imagine Javed Sheikh doing an advertisement for ad for youth apparel. Well, exceptions can be there but then again it depends on the way it is done. Believability is of vital importance. The relationship between a product and its advertisement again can be either dependant or none.In that case, a shock value makes people remember the brand better and, hence, a possible long term loyalty.

ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 17 Facts Approximately 60-70% of all television commercials feature famous people. Telenor Talkshawk sales went up when Telenor endorsed Sonia Jahan and Ali Zafar with a well executed TVC. Pakistan is a country of cricket fans, that’s why Pepsi is endorsing almost 90% times cricketers in their ads.Reema Khan who is brand ambassador of Warid Postpaid appeared in Prepaid Warid advertisement, and sales went down dramatically. Amitabh Bachchan (AB) was seen endorsing Maruti’s Versa Car. The AB factor worked wonders as far as generating curiosity was concerned but the actual product couldn’t meet the expectations of people, and hence, the endorsement strategy didn’t work.

He has been used very effectively by Parker Pens, ICICI Bank and Cadbury’s to name a few. Magic Johnson lost his endorsement deals when he announced in 1991 that he’s HIVpositive. It wasn’t until July 2003 that he landed his first endorsement deal since the announcement.Ticket sales at Wimbledon are known to have shot up significantly for all matches featuring the latest ‘sex-symbol’ on the circuit – Anna Kournikova. An average player who is yet to win even a single tennis tournament, Anna is known to have earned far more from endorsements than her tennis career could ever have given her. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 18 The Argument for Celebrity EndorsementsThe need for brands to use luminaries in advertising is most felt when the concerned brand has very close substitutes available; when there is a need to create a unique and clear differentiation for the brand, and when the brand has to make an impact at its introductory stage.

Research has indicated that target prospects are more likely to choose goods and services endorsed by celebrities than those without such endorsements. Celebrities facilitate instant awareness and immediate attention. In this era of sound bites, channel surfing, visual orientation and quick newspaper scanning, there is great demand for people’s time and focus.Studies have shown that some of the attributes associated with the celebrity are passed on to the brand. For instance, if a motorbike is associated with a celebrity who connotes performance then one need not hunt for the reassurance required to make the down payment. The idea, thus, is to convince people of the utility lying in your brand. For instance, if I want to say Dettol Soap gives maximum protection against germs, viruses and bacteria and it is hard to convince a priori, then it’s easier to say: ‘Mahnoor Baluch says Dettol Soap gives maximum protection against germs, viruses and bacteria because she is very caring mother’.

The brand, therefore is riding piggyback on the celebrity. At a rational level, everyone knows it is a paid endorsement, and there is no immediate, conscious association. But at a subliminal level an association occurs – the attributes of one rubs off onto the other. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 19 Brand Image & CelebrityResearch has shown that there are three aspects that influence a customer’s attitude and, hence, the long term impact on the brand – Attractiveness, Trustworthiness and Expertise. The matrix below shows us the images and the celebrities: Elegance Beauty Attractiveness Classy Stylish Mahira Honest Trustworthiness Reliable Knowledge Expertise Qualified Experience Tallat Hussain Zia Muh-ud-Din Nabeela Waseem Akram Liana KASB Bank Shampoo Accu Chck Hence, we see depending on the product and aspect of brand, the choice of the Anwar Maqsood Panteen Pampers Vaneeza Meera Indigo Ufone Public DemandAli Zafar/Sonia Jahan Telenor Talkshawk Iman Ali Sunsilk celebrity is important so that the celebrity can reflect that and not go against the brand. Getting back to the basic of branding after such exhaustive examples can make us reflect ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan.

2009 | 20 on our choices of celebrity and the impact on the brand. We talk about Brand Equity, Brand Identity and Position. It is worthwhile to see the effect of a celebrity on these critical elements.Brand equity essentially made up of loyalty, awareness, perceived quality, associations, and other proprietary brand assets. The celebrity should be chosen in such a way as to reinforce and strengthen the brand in all these elements but the question is, can he/she? Take an example of another star Hadiqa Kayani, who endorses modish, trendy home appliances from a Pakistani manufacturer PEL (Pak Elektron Ltd. ) with the backing of a stylish star was a great idea for the brand image. It was able to attract new customers who were style and trend conscious but unable o afford high price international brands.

ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 21 The Argument against Celebrity Endorsements CELEBRITY ENDORSEMENT: THE ISSUES INVOLVED There are several factors to consider before resorting to celebrity endorsement. There is no single formula to win in the world of marketing. A company must analyze the prospect of endorsement from 360 degrees, prior to product promotion. Price vs. Profit The most important issue is that of Return on Investment (ROI). Companies need to perform a cost-benefit analysis prior to endorsement.

The process of gauging the effectiveness of endorsement on the overall brand is but difficult. The companies expect to bring, in the long run, future sales, revenues and profit from the present investments on celebrity endorsement. Celebrity endorsement is an expensive means of brand promotion and the price burden almost always shifts on to the consumers; if not, then it narrows the companies’ profit. Multiple Brand Endorsement vs. Multiple Celebrity Endorsement In the advertising landscape, we find either a celebrity endorsing multiple brands or multiple celebrities being used to endorse a single brand. Sonia Waseem Akram, for example, endorsed more then 10 brands (including Pepsi, Accu Chck, Rexona, etc. ).

Iman is endorsing more then 5 brands at the moment including LUX, Mobilink Jazz, Sunsilk Shampoo. Tripp et al, says that the endorsement of as many as four products negatively influences the celebrity spokesperson’s credibility and likeability.ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 22 ublished Figure 4: Multiple Brand Endorsement ( : (Atif Aslam) Also, the use of multiple celebrities to endorse a brand may hinder the meaning transfer process, and thus, lead to confusion among the consumers. Similarity between the target audience and the celebrity is the third important attribute. A person well-known in a society can have greater impact than a celebrity of a different world.If known the endorser and receiver have similar needs, goals, interests and lifestyles, the position similar advocated by the brand communication is better understood and received.

Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. The companies have to first clarify their business objectives, brand values and then decide who the celebrities are who can carry them forward. Otherwise, their can be unnecessary canZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 23 investments without proper return. So the celebrity endorsement cost has to be weighed up against the return on marketing investment. Besides, while designing an ad campaign, one should also keep in mind that the overuse of some extremely popular celebrities often tends to confuse consumers and reduce the utility of celebrity endorsement.

Another argument against celebrity endorsement involves the behavior of the celebrity.The values that display themselves in regrettable behavior could transfer themselves to the brand. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities, because their association may be temporary but the brands are permanent. The various risks associated with celebrity endorsements are as follows: • Negative publicity – If the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand. This can harm the trustworthiness and credibility in the mind of the consumers. Overshadowing – When celebrity endorser is used, the risk of consumers focusing on the celebrity and not on the brand exists. • Overexposure – This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused.

E. g. , Vaneeza Ahmed endorses different brand including Mobilink Indigo, LUX, etc. • Overuse – Sometimes the company can use many different celebrities to appeal to different market segment. But multiplicity of endorser might blur the image of the brand and reduce the effectiveness of the means of persuasion. Extinction – The favorable response obtained by a particular brand may weaken over time if the brand gets significant exposure without the association of the celebrity. If the celebrity contract is for a considerable period of time, then it can lead to draining out capital without proper return.

• Financial Risk – The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 009 | 24 Therefore, for celebrity endorsements to work effectively there are some fundamental ground rules: The brand promise and the brand personality should be clearly articulated. The communication objectives for the campaign should be frozen. Focus must be on the synergy between the brand and the celebrity image Establish explicitly what the celebrity is going to communicate Once these criteria are met, endorsements can work as a force multiplier. A deeper insight in the impact of celebrity endorsement on consumers’ minds can be explained by the meaning transfer model, explained in the next section.ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan.

2009 | 25 ublished WHICH OF THE FOLLOWING HAS THE HIGHEST IMPACT ON DECISION OF BUYING A PARTICULAR PRODUCT ? Celebrity Brand Name Self Esteem 3% 48% 25% 24% Luxury/ Need Motor Vehicles From the above graphical representation we can see that a major portion of consumer buy a Motor Vehicle just because it is a luxury/need 24% buy it for the self esteem and 25% go for a Motor Vehicle /need. % just because of the brand name.We have a small but affective percentage of consumers who are consu influenced by celebrities endorsing a brand. So, we can conclude that celebrity endorsement is an affective tool to build brand image as well as it has a positive influence on consumers. Mobile Phones Celebrity Brand Name 4% 30% 32% Status Cost 34% Again we don’t see much consumers influenced by the celebrity endorsement. 34% buy a cell phone to celebrity meet their level of standard or class. 32 out of 100 are brand conscious because they don’t want to take risk by using a new brand.

In short, they want to avoid the risk involved in purchasing a new brand. 0% consumers are cost/price conscious. Their demand for a mobile can increase or decrease with the onsumers increase in price. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 26 ublished Clothing Celebrity Status Cost Brand Name 44% 32% 10% 14% Unfortunately, we don’t see much advertisement of clothes on different media in Pakistan but still we see 32% consumer get attracted towards a particular apparel brand because of the celebrity endorsing towards that brand.This may be because we have cable in almost every house especially in cities. So, ads and celebrities from India help them decide what particular brand to be bought.

24% people are status and cost conscious so, again the demand is dependent on the price they pay for a specific product. Food Products Attractive Packaging Brand Name Celebrity Quality 47% 30% 10% 13% Here we can see that even after endorsing a celebrity in a Food Product advertisement, nominal consumers are attracted towards it. Most of the people are quality conscious and they are not ready to compromise on that.Attractive packaging seems to be an affective tool in making a consumer decides affective whether to go for a certain food product or not. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 27 ublished MOTIVATION FACTOR DUE TO WHICH YOU PURCHASE A PRODUCT? Value for Money Various Discounts Latest Trends Attractive Advertisement Celebrity Endorsing the Brand 18% 14% 10% 20% 38% Motivation is a driving force that leads to a purchase or at least take consumer attention towards a product.The finding from our survey shows that a large number of consumers buy a product that gives number them value for their money.

20% get attracted because of the appealing advertisement. But again we see that 14% of customers get attracted because of the celebrity endorsing that product. A noticeable number of customers get motivated because of the promotional offers companies make time to time omers and 18% are fashion, style conscious and go for product that is up-to-the-minute. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 28 ublished DOES A CELEBRITY HELP IN INCREASING THE MARKET SHARE OF A COMPANY’S BRAND? Yes No Can’t Say 18% 36% 46% Whether someone get attracted towards a particular brand because of the celebrity or not a very large not, number of consumers agree with the statement that celebrities help in increasing the market share of the company’s brand they are endorsing but at the same time half the consumers do not agree with the statement and 18% consumers are neutral about the statement.WHAT DO YOU THINK, CELEBRITIES THEMSELVE USE THE PRODUCTS THEY ENDORSE? Yes No Can’t Say 30% 12% 58% This was a very interesting question to ask from consumers. The answer of 58% consumers was ‘No’, is 12% agreed and 30% consumers were neutral about the statement that celebrities themselves use the product they endorse.

We can see a sense of untrustworthiness. This may be because of the knowledge and information consumers have. Educated consumers are certain about the consumers’ usage of the brand they are using. ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 29 ublished ON A PERSONAL NOTE WHAT KIND OF CELEBRITY DO YOU PREFER THE MOST? Famous Personalities Cricketers None of the above 4% 6% Movie/Tv Stars/Models Politicians 12% 32% 46% We see a lot of advertismeent daily on TV, Newspapers, magazines and 80% of the companies use Movie/TV Stars/ Models for endorsement of their brands. 46% consumers like Movie/TV Stars/Models. ovie/TV As Pakistanis are cricket fans so, the results were obvious.

32% people like cricketers in ads. 2% of them get attracted towards an advertisement that endorse famous personlities like Anwar Maqsood, Abdus Sitar Edhi etc. Politicians have not good reputation in our country or to be more specific, among the educated people, but still we see 4% people who like politicains in advertisement. 6% like other personalities such as Zia Muh-ud-Din, Nabeela, etc. Din, ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 30 LIMITATIONS – Research was limited to Islamabad City. Specifically two universities students and teachers, family members and some people in different markets.

2- The number of respondents was not adequate for such kind of research, in our case 100. 3- Most of the students of universities are not very serious about the research projects conducted in universities because they think this report/research is just for getting marks. So, there is chance that some of them might have provided wrong information. 4- There is a possibility that some respondents might have misunderstood the statements.ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT ; COMPUTER SCIENCES, ISLAMABAD [Impact Of Celebrity Endorsement On Consumer Behavior ; Overall Brand Value] Published in Jan. 2009 | 31 Conclusion Celebrity endorsement can be a goldmine or a minefield for a company’s brand building process. There have been extensive studies relating to the process of celebrity endorsement and brand-building.

These studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. Few celebrities have been more successful than those with almost parallel fame.So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as an assured strategic tool to win profits, market share, revenues, etc. Consumers can identify the clear difference between a good script and a good brand idea. For example, while Pepsi’s Reema Khan’s (Action Girl) ad was seen as one with a good script, Dew’s Dew Na Kiya to Phir Kya Jiya…

was seen as an insightful and strong brand idea. For all the flak it drew in its vainglorious attempts to run down competition, Thumbs-Up was seen as the only example of seamless linkage between brand positioning and brand celebrity. Brand” is the most valuable asset of any company; building its image is, thus, of paramount importance. Any thoughtless adventure can be like the Sword of Damocles upon your head. Celebrities do not make brands but ideas do. If the former were true then brands would have vanished when the hype and hoopla around the celebrities faded. Celebrity endorsement is also one of the ideas.

But, its easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out-of-date. Therefore, it is imperative to invest in good ideas; which will bring good returns.Thus, the need of the hour is to focus less on your Return-on-Investment, and think more in terms of your Return-on-Ideas. There is an increasing challenge to the marketing manager to develop and implement an integrated marketing communication (IMC) plan to realize the true value of the celebrity endorsements. There is a gradual shift from the traditional approach of showing celebrities in advertisement to making them the “spokes-person” of the brand. Companies have taken ZAHEER AHMED KHAN – MBA (MARKETING) BAHRIA INSTITUTE OF MANAGEMENT & COMPUTER SCIENCES, ISLAMABAD Impact Of Celebrity Endorsement On Consumer Behavior & Overall Brand Value] Published in Jan. 2009 | 32 celebrity endorsement to next level by projecting brands as a way of life.

Smart companies are using their brand ambassadors in other mediums such as movies to promote their brands. Wooing the key existing and potential target customers is the trait of a successful promotion strategy. However, the marketing manager should be able to offer significant value propositions in the services / products offered to the customers.