Relevant Concept Of Celebrity Endorsements Marketing Essay

Relevant Concept Of eminence Endorsements Marketing Essay doorwayIn the introduction this question paper willing be providing an shrewdness around the research bea. It would begin by briefly discussing the background and relevant concept of fame countenances and how it affects the consumer pre-purchasing conduct.1.1 BackgroundAdvertisement came into existence in early(a) 18th Century. Since thus the concept started playing an active role in the development of the society in the early 1930s. almost of the fame back past intentd their status in society to promote crop, service or charity. These celebrities per dramatis personaeed stage shows modeling, athleticss activities and most of them were from movie pains (Kambitsis, Harahousouy, Theodorakis and Chatzibeis, 2002). In the early nineteenth century, demesnes start credit indorser Lillie Langtry (British actress) appeargond in the advertisement for pear soap. It pronounced the beginning of the dirt re poseatio n by endorsers. These endorsers according to the Tellis (1998) slew be divided into three major groups intellectuals, lay endorsers and celebrities. Here experts are those state who have it off about the crossroad and they fuddle limited knowledge about the return which they devour assembled during study, training or experiences. overmuch(prenominal) an instance do- nonhing be shown in advertisement w present dentist for toothpaste advert or nutritionists for sizcap adequate food items as some(prenominal) of them are able to provide an expert opinion about the intersection point. Secondly lay endorsers are nation who whitethorn be real or fictional, which resembles to the target groups and potful be preferably effective to provide message. Thirdly comes honor endorser who put up be specify as the throng who enjoys public realisation and who utilisations this on the behalf of a consumer good by appealing with it in an advertisement (McCracken, 1989, p.310).C elebrity seconds are used for advertisement just because they arouse create an appeal and apprize ontogenesis its draw for the reckoners and consumers. For grammatical case Michael Jordan acted in advertisement for Nike David Beckham for Gillette and fresh make football cup advert of coca cola where Roger Millas celebrates tremendous world of football goals. consort to Ohanian (1999) some(prenominal) theory and practice proves that the use of super stars in advertisements generates a lot of publicity as nearly as draws the attention of public. Most of the companies try to utilise the already do insure of the celebrities to attract much(prenominal) than than than customer base and increase their commitment. As in this passing competitive business environment brand loyalty has give way the utmost grave for supremacy.Companies use celebrities endorsement in the advertisements so that they are able to associate with reputation and are able to property thither image for a long period of time. It is said that, If the consumers are able to see the link amid the famous person and the convergence then the endorsements can be highly effective (Hsu and McDonald, 2002). It is believed that spellbinding endorsers can be highly affective while promoting products and can be used to heighten consumers magnet. Attractive people have greater influences on the consumers compared to unattractive people (Till and Busler, 1998).Till (1998) states companies used distinction endorsers either sporadically or opportunistically at the whim of the client or the agency. Paying back for the investments in the credit endorsement usually comes from using the eminence regularly over time. The composition strengthens the associative link for those consumers who were already aware of the laurels endorsement. It a buy increases the impel of consumers who begins to make themselves aware of the link amid the brand and the notoriety. Some marketplaceers careen famous person endorsers real frequently which weakens the bene flout expected to be derived from the endorser. Such as Nikes consistent use of Michael Jordon has encouraged customers to retrieve about Nike when opinion about Jordon and vice versa these have shown that Nike and Jordon have become a commence of each others association similarly association of the Nike and Tiger woods have made same impact as whenever customers think of golf products they think of the Tiger woods and its endorsed Nike product. McCracken (1989) proposed the hypothesis that endorsers are more effective when there is a fit between the endorser and the endorsed product.Byrne et al (2003, p.289) states famous person can help the brand to rebuilt and even create a new identity element with new dimensions. Celebrity endorsement boosts brands attractiveness among the consumers and saves valuable time in terms of creating the credibility. When consumers see a reasonable celebrity endorsing a produ ct they think the conjunction has to be good and reputed.The major job for the company is to choose the right kind of the celebrity for the endorsement and its the job of the advertisers deep down the company to meet the companys image or product with the personality of the celebrity and characteristics of the target market to establish effective message and mass expectance. fit to the Shimp (2003) ii general attri scarcees which are valuable when determining the effectiveness of the endorsers as healthy as the discourses effectiveness are credibility and attractiveness. The first attribute concerns endorsers quality of being thinkable or trus iirthy and the achievements and skills of the celebrity which could correlate with the brand image. The latter attribute refers to the celebrities ability to appeal, attract and ensnarl large consumer base on the basis of their attractiveness. A good example of these would be golf star Tiger woodwind whose scandalous image resulted i n his ruining his credibility among the consumers which lead to his sponsors (ATT, Gillette, Tag Heuer and Accenture) dropping his advertisements and Anna Kournikova who although has never won any pro- train tournament but was still used by Swiss watch maker Omega to endorse their products because of her external constitution and appealing looks.Purpose and research questionsMany of the previous studies on the celebrity endorsement have been focused on how celebrity endorsements influence consumer behavior. notwith meeting there has been less consideration on the empirical research on celebrity endorsement specifically on sport celebrity endorsements and in what manner do they use celebrity and how do they addresses the future returns on the investments in celebrities. The neediness of proper research in this area inspires the present dissertation. So the main aim of this research would be to gain deeper consciousness of the celebrity endorsement and how it influences the consume rs behavior specifically in sports industry.To be able to achieve that following question were formulated1. Why does sports industry uses celebrity endorsements for promotional strategy?2. How does celebrity endorsement affect the consumer behavior in sports industry?3. How does company select the celebrity?4. How effective are celebrity endorsement for sports industry?DemarcationsThis topic falls into the very broad area. Limits of twain time and re parentages have led this research to focus on the very specific questions. therefrom the research paper will concentrate specifically on sports industry and will analyses the prominent companies in the field.Furthermore there are several viewpoints which could be adapted in the research of the celebrity endorsement. There is consumers view point as they are affected by celebrity endorsement and then there is a companys point of view as they use celebrity endorsement as there promotional strategy. The research is through by keeping in mind that both points of views are highly important in catch the consumer behavior as well as companys nestle in promoting celebrity endorsement.Literature review articleThis section of the research paper would be discussing what has already been done by other authors on the topic and their conclusion about the effect on consumer pre-purchasing decisions.Celebrity image is one of the major concerns for the endorser. Whichever company is endorsing celebrity the major issue they have to see is the compatibility between the celebrities and their brand. Advertising companies look for celebrities who grapple and maintain an image (Kambitsis et al, 2002). Mostly companies are looking for the some canonic properties much(prenominal) as likeability, expertise, trustiness and similarity thats what makes celebrity endorser to become a come of persuasive study and this creates a sense of matter of course .Physical attractiveness of the endorser is also considerable and can be highly effective in producing an effective message. Acceptance of a message by a receiver could be influenced by celebrity endorsers as believable sources of information about a product or a wet (Amos et al, 2008). The use of celebrity endorsers to support products is explained by balance theory principles too. According to theory, successful companies establish an emotional relation between the observer and the endorser and a relation between endorser and brand too (Mowen, 2000). angiotensin converting enzyme of the important issue which arises here is whether there is a link between the consumers purchasing intention and celebrity endorsement. Many researchers have concluded that they have observed that umpteen customers will pay a premium worth for the product which have been endorsed by celebrities then product which have not been endorsed by celebrity. further the consumer should be able to see associations between the product and endorser as well as his/her intentions and purpos e with the endorsers. The question that arises here is how does consumer associates itself with the celebrity endorser, to make a connection and association. It can be entirely identified as most of the companies choose an endorser who uses the product and where the use of the product is reflected due to endorsers professional expertise (Daneshvary and schwer, 2002). An athlete endorser much(prenominal) as David Beckham endorses football shoe then association can be seen but if he endorses golf products or racing car then customer will not be able to identify association. Therefore companies have to be very careful while associating with brand and product with the endorser so that they are able to utilize endorsers capabilities according to their need. Celebrity endorsement free-base on attractiveness is common among everyday consumers which, most of the time, effect consumers authoritatively. Michael Jordon is an example of an attractive endorser but his effectiveness is bel ike greater when endorsing to this athletic ability is more rather than the products which are not relate to athletic performances. Consumers often have the positive effect towards the product and the celebrity despite the fact it is well known that the endorser realize a lot when promoting a product. (Cronley et al., 1999)Its more effective to use celebrity endorsement constantly to increase the strength of the link between the celebrity and the endorsed brand. Its also more effective to use celebrity who is not associated with some other product (Till, 1998). When a Celebrity endorses only one or two products it is significantly more trustworthy than a celebrity who endorses even more products (Tripp at al., 1994). Celebrity endorsement can have both positive and negative effect on companys image e.g., many celebrities who switch their endorsement to the rival brands increase the risk of negative impact and confusion among the consumers.Pros and cons of celebrity endorsementErdr ogen (1999) states that academic findings and company reports safely argues that celebrity endorsers are more effective than non celebrity endorsers when it comes to generate all desirable outcomes ( emplacements towards advertizes and endorsed brands, intension to corrupt and actual sales). Companies mostly utilize celebrities whose public image and personality match with product and the target audience and who have not endorsed previously.It has been clearly tacit by the advertisers that celebrity endorsement has the significant potential to increase the recognition of the product and the brand. The increasing competition and new product increase in the market have made companies and marketers to use attention creating media stars to assist product marketing (Erdogan, 1999). With recent technology much(prenominal) as remote controlled televisions, moving-picture show controlled systems, internet and satellite television, the power over programmed advertisements have increased and has made advertising more challenging. These threats with increased products, competition and technology development can be eased by the use of the celebrity endorsements as celebrity presence in the advertisement tend to make impact on consumers reaction toward the advertisement and can help making advertising stand out from the clutter(Erdogan, 1999). Advertisers use celebrity to develop the communication between the consumers and the brand by cutting down excessive noise in the communication treat.Some of the most complicated trouble with the global marketing is to assent foreign countries due to cultural roadblocks such as time space, voice communication relationships, a powerful risk, masculinity, femininity. And to overcome this paradox companies hire topical anaesthetic celebrities as they are powerful means to enter the foreign market. It makes it easier for companies to make the local people realize and associate the product with them. But it can also bring too m any risks as well mostly because celebrities dismission of credibility due to the frequently changes in endorsements or if celebrity drops in popularity.Therefore celebrity endorsement is a creative as well as risky tool for the companies. The whole process of celebrity endorsements inescapably a proper strategic plan before risking their investment.Celebrity Endorsers lay out on consumers attitudeMarketers and advertisers are special(prenominal)ly interested in consumers attitudes towards advertisements and brands. They endlessly need to be aware of how sensitive consumers are about the adverts and brands. And they should know how do consumers start proclivity the product and consider it. It very much depends upon the consumers attitude towards certain product or brand or celebrity endorser. An attitude shows whether we like something or not. Attitudes have three basic components affective, cognitive and behavioral. Affective component is related to our liking or feelings abo ut an intent. cognitive is referred to beliefs about an object and behavioral component regards actions we take about that object (Severin and Tankard, 2001). Attitude towards advertisement is defined as a learned list to answer in a consistently desirable or unenviable approach toward advertisement in general (Haghirian, 2004). Determinants of advertisement consist of attitude towards the advertiser, assessment of the advertising execution itself, the mood evoked by advertising and the extent to which the advertising affect viewers encouragement. A successful advertisement in one country or region is not inevitable it will be successful in other parts of the world as what makes advertisement impressive will change noticeably in cross-culturally. Many researchers have concluded that the use of the celebrity endorsement in advertising creates constructive impact on attitudes of the consumer towards products and brands with which they are associated. Agarwal and Malhotra (2005) h ave defined brand attitude as consumers general evaluative judgment of a brand based on brand beliefs. Such beliefs concern product-related attributes, like practical and experimental benefits. A successful endorser is able to promote intentions and preferences towards brands directly or indirectly. An endorser who has major source factors of credibility (like expertise, trustworthiness and effectiveness) is able to impress acquire intentions of the consumer considerably (Liu et al, 2007). Information from a conceivable source can impress ideas, attitudes and behavior through a process called internalisation(Belch and Belch, 1993). Internalization occurs when the receiver is motivated to have an issue. The receiver learns and requires the idea of the credible spokesperson, since he supposes that information of this person represents an accurate position on the issue. Therefore, if such spokesperson who is known to be an expert endorses a product, consumers will more probably h ave a desirable idea about that advertisement and brand and they will consider it in their shopping list the adjacent time they go shopping. detectives have used the identification process of mixer influence in order to explain the effectiveness of celebrity endorsers (Basil, 1996). This theory suggests that if an individual identifies with another individual, then he is more likely to accept an attitude or behavior of that individual or a group. The internalization process of social influence occurs when an individual accepts influence because the induced behavior is congruent with his value system. An individual accepts the influence, since it provides a solution to a problem (Daneshvary and Schwer, 2000)A successful endorser strategy can enhance the level of consumers recalling towards product information, reinforces consumers recognition to endorsed brands, positively influences consumers attitude to low-involved products and even enhance consumers purchase intention and prefe rence towards brands (Liu et al, 2007)Celebrity endorsement and its involvement sports industrySports industry is becoming the vital revenue generator in world parsimoniousness and it is mainly due to increase in the broadcast coverage of important sporting events like Olympics, World Cup football, UEFA Cup, Wimbledon, US Open, Australian Open, French Open, Formula 1 racing, World Athletic meet, NBA and Basketball championship .Due to increase coverage sports persons have started becoming celebrities as more and more people know them and consider them as their idols. Sports celebrities have become major specs of todays media culture. Sports celebrities have been looked upon as role models from the todays young generation. Most of the sports companies (Adidas, Nike, Wilson, Puma, Slazenger, Stiga, Dunlop and Yonex ) which have global recognition wants to have an international sport celebrity which is recognised by the most of their consumers and has enough credibility and attracti veness to appeal to large customer base. Due to which, Celebrity endorsements in the sport industry continues to grow both in number and value. Certain athletes are utilized by brands as endorsers of their products because of the celebrity status gained by these athletes as a result of their success in their chosen sports.Most models of celebrity endorser effectiveness proposed by previous researchers have been based upon two basic models the Source credibleness type (Hovland, Janis, Kelley, 1953 Hovland Weiss, 1951) and the Source Attractiveness Model (McGuire, 1968). The Source Credibility Model significances that the effectiveness of the message is largely determined by the expertise and trustworthiness of the celebrity endorser, which offers explanations for why certain athlete endorsers such as highly successful mens tennis professionals Andre Agassi, Rafael Nadal, and Roger Federer could easily represent any brand of tennis equipment. In a different vein, the Source Attrac tiveness Model significances that similarity, familiarity, and liking of celebrity endorsers primarily determine their effectiveness, which attempts to explain why some athletes such as Manning, Woods, and racecar driver Dale Earnhardt Jr. can endorse brands in many different product categories. A general measure of physical attractiveness has often been used to assess celebrity endorser effectiveness, assuming what is dishy is good (Dion, Berscheid, Walster, 1972). However, mixed findings suggest that caution should be exercised in basing endorsement decisions on this model alone, since consumers perceive physical attractiveness differently. The Product match-up Hypothesis (Forkan, 1980 Kahle Homer, 1985 Kamins, 1989 Kamins, 1990) emphasizes the need for a matchup, also referred to as congruency or fit, between the celebrity and the product. For example, the fit between Woods and Nike Golf is undeniable. However, according to sport marketing consultant Marc Cagins, Woods has fa iled as an endorser for Buick because of a lack of fit People always shook their head as to why he did the deal anyway with Buick. If hes going to do a deal with GM, you would have thought Cadillac more than Buick (Thomaselli, 2008, p. 28).Research based on attractiveness matchup and expertise matchup has supported the hypothesis that celebrity/product fit remains critical to endorsement success. Kamins (1990) tested the matchup hypothesis based on attractiveness and found that the physical attractiveness of a source only mattered when an attractive source was paired with an attractiveness-related product, resulting in increased perceive source credibility and attitude toward the advertisement. Current examples would include the egg-producing(prenominal) tennis professionals and sisters Serena and Venus Williams Avon cosmetics campaign and the European mens soccer star Thierry Henry/Woods/Federer Gillette campaign. In a study examining the impact of gender and physical attractiven ess on responses to motorsports sponsorships (Roy, Stewart, Goss, 2003), attractiveness played a greater role for female drivers than for male drivers, with the more attractive female drivers perceived as possessing greater expertise with products such as shampoo, tanning products, and dietary products. However, Bower and Landreth (2001) found that highly attractive models were not more effective than normally attractive models for problem-solving, attractiveness-related products and attributed these results to the bring in that consumers perceive highly attractive models to have never face up an attractiveness-related problem and therefore have little expertise using these products. To illustrate, this premise would suggest that the current campaign utilizing female tennis star Serena Williams for ProActiv acne medical specialty would be unsuccessful. However, a moderately attractive model may be more likely to be perceived to have faced an attractiveness-related problem and ov ercome it using the advertised product, fully illustrating the premise that the expertise of the source is more important than the attractiveness of the source.Chapter 3 MethodologyResearch can be defined as the search for information or as any organized investigation to establish facts. There are two main types of research methods quantitative and qualitative.Quantitative study uses numerical info to test hypothesis under investigation, which is flexible and objective. qualitative study uses softer approach to look at perceptions and insights of people based on few samples but in great depth (Silverman, 2006)In quantitative research usually numerical selective information is collected through pots.So that they are able to observe surveys and develop it into the meaningful results. In quantitative research it is important to collect large sample to develop fairly accurate results, miniature the sample less chances to develop proper results.Qualitative ResearchQualitative resear ch helps in developing more meaningful complex researches. It has been characterized into cardinal main approaches they are observation, record, interpretation and conclusion. In qualitative research data is collected by focus groups or by call into questions and then the data is observed thoroughly. Once observed data is collected or record in meaningful way so that it is able to be construe into understandable form. Then finally conclusion is constructed in a suitable way.Observational study has been criticized to be unreliable and subjective depending on observers understanding of the data. This form of research would be more appropriate at antecedent phase of research (Silverman, 2006). Researcher also uses other approaches to investigates, it is mostly done by reading of various materials on the subject to develop and own relevant information. This method of research is less common among qualitative research.Most common method among qualitative research is interviews and focus groups (Silverman, 2006). In interviews, participants respond to questions asked by researcher to investigate their understanding of the subject and allows respondent to fine-tune further with his or her ideas and feelings. Focus group method is a more costly approach to carry out than methods mentioned, but often criticized for limited sample size which may not be representative of the universe under investigation (Silverman, 2006)Research MethodThe purpose of this research seeks to investigate the insight and opinions of the consumers over the celebrity endorse and does it really affect the consumer behaviour during the purchasing. To support my research and to understand the consumer behaviour in depth survey will be conducted where common people/consumer from all walks of life and will be collected and interpreted into meaningful results and conclusion.To understand the subject in the perception of the company interviews will be conducted with the people, who have underst anding of the market and know how companies generate profits from the celebrity endorsement and what they make of celebrity endorsements effect on consumers attitude.Primary Data CollectionPrimary data is information gather first-hand to contribute to what could be explored further into the research and also to justify. It involves collecting data using basic methods such as interviews, questionnaires, observations and abstractions. But the key point here is that the data collected should be curious and should not resemble with already done researches. The primary data, which is generated by the to a higher place methods, may be qualitative in nature (usually in the form of words) or quantitative (usually in the form of numbers or counts of items assessed). In this research both questionnaires and interviews are utilise so that consumer behaviour could be understood fully from both prospective consumer as well from companies.in this research questionnaire will have both open and cl osed ended questions so that prcised options and answers could be obtained and it will be more accurate in interpreting the data. For the interviews, semi- coordinated pattern with open-ended questions will be develop in order to understand interviewees opinion and belief about a particular matter or situation and not restrict respondents answer to imprisoned questions. Semi- bodily structured questions are used in this research to encourage respondent to enlarge on points they feel appropriate and provide a blueprint for them to understand the progression of the interview (Ruane, 2005). Although qualitative and quantitative data collection can be time consuming, but it is reasoned that this form of research provides more accurate results. Participants for survey are the common people whom answered to a identity card on Facebook, tweeter and collage email. Participants for the interview are the managers of the different companies which have international experiences and have some sort of knowledge and understanding of the celebrity endorsements. Researcher carefully examined each participants position and company background to ensure they be to requirements of this research. The final participants were chosen upon their qualification and availability. Interviews were conducted personally in their respected fleck due to their availability in the London U.K .The time assumed for interviews were 20 to 30 minute but Interviews were longer than predicted, as participants were remarkably ardent to elaborate their answers with personal experiences each interview lasted about 30minutes to 60 minutes.3.5 LimitationsAn wasted care is need in preparing the questions for the interview and questionnaire as if researcher conducts the structure too loosely then it may lead to undesirable information making the result and concision less effective. Therefore structure of interview and questionnaire should be in a way that appropriate information is collected. yet semi-s tructured interview and questionnaire are criticized for possibility of missing information if researcher follows the structure too closely. Availability of the time restricted the research by creating the boundaries such as limited respondents for surveys as well as restricted employment of interviewers. The research was concluded in a limited time frame.