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1 Celebrity endorsement, brand credibility and brand equity


Amanda Spry, Ravi Pappu, T. Bettina Cornwell, (2011) This research aims to examine the impact of celebrity credibility on consumer-based equity of the endorsed brand. The mediating role of brand credibility and the moderating role of the type of branding (parent versus sub-brand) employed by the endorsed brand on the endorser credibility-brand equity relationship are also to be examined. The endorser credibility-brand equity relationship was developed using associative learning principles whereas the brand signalling theory is applied to examine the mediating role of brand credibility. The conceptual framework was tested using a field experiment. Data were collected using a mallintercept approach at a shopping centre from a sample of consumers in a metropolitan Australian city. The data were analysed using structural equation modelling. Mojor Findings of the research are Results suggest endorser credibility has an indirect impact on brand equity when this relationship is mediated by brand credibility. This mediating relationship was moderated by type of branding. However, the endorser credibility-brand credibility and endorser credibility-brand equity relationships did not vary according to the type of branding employed. Practical implications In support of past findings, the present study shows that a celebrity endorser should be one who is perceived as credible based on their attractiveness, expertise and trustworthiness. Moreover, in this research, even a moderately low credibility endorser proved to be able to build the brand.
(Source: Celebrity endorsement, brand credibility and brand equity", European Journal of Marketing, Vol. 45 Iss: 6, pp.882 909)

2.2 The Effects of Multiple Product Endorsements by Celebrities on Consumers Attitudes and Intentions,
Carolyn Tripp, Thomas D Jensen and Les Carlson This article discusses the research investigating the effects of a number of products that are endorsed by a celebrity as well as the number of exposures to the celebrity on consumers attitudes and purchase intentions. Two studies were conducted for the research. Study 1 used print ads as the stimuli and the results showed that as the number of products endorsed increases consumers perceptions of the celebrity credibility and likeability, however, the attitude towards the ad became less favorable. The results found in this study were independent of the number of exposures to the celebrity. The second study explored the underlying attribution processes associated with the consumers perceptions of multiple product endorsers through using depth interviews. The findings are discussed from attribution and repetition theory perspectives. (Source: Journal of Consumer Research, 1994, vol. 20, issue 4, pages 535-47),

2.3 Celebrity spokesperson and brand congruence: An assessment of recall and affect,
Shekhar Misra and Sharon E. Beatty

This article discusses how conventional wisdom regarding the matching of spokesperson and brand in advertising is thoroughly tested. Within the theoretical framework of social cognition, celebrity-brand congruence is found to enhance the effectiveness of marketing efforts. The transfer of affect from spokesperson to brand is normally found to be easier when the two are matched. Recall is found to be enhanced when the celebrity and brand are matched. Affect towards the brand is also found to be higher when the brand and spokesperson are matched. Overall, the article shows how celebrity endorsements prove to be beneficial for marketing strategies.
(Source: Journal of Business Research, 1990, vol. 21, issue 2, pages 159-173)

2.4 Celebrity Performance and Endorsement Value


Kathleen A. Farrell, Gordon V. Karels, Kenneth W. Montfort, Christine A. McClatchey, (2000)

This is an interesting article that explores the issue that celebrity endorsement literature does not often explore. The issue at hand is whether or not the activities of a celebrity endorser affect the overall performance of a company. The experiment represents a first step in identifying what makes endorsement advertisements effective based on work in attribution theory within social psychology. Here we see Tiger Woods performance in tournaments on the endorsing firms value is succeeding to the contract signing. A relationship between Tigers tournament placement and the excess returns of Fortune Brands (parent of Titleist) is not seen. This is most likely due to Titleists very small role as a contributor to the total market worth of Fortune Brands. The article also fails to find a significant connection for American Express suggesting that, the market does not view a golfer endorsing financial services as credible. The article, however, finds a significant positive impact of Tigers performance on Nikes excessive returns; this suggests that the market values the supplementary publicity that Nike receives when Tiger is in contention to win. It discovers that the high costs are linked with product advertising; this pushes advertising messages effectively and increases consumers interest in the product. Through reading the article we learned that prior research documents that firm value tends to increase upon the declaration of celebrity endorsement contracts, it is unclear whether any type of long-run performance relationship exists. The article attempted to bridge that gap by examining the relationship between Tigers performance and the excess returns of the companies whose products he endorses In relation to the previous article and Tigers positive effect on Nike, the following article review shares and interesting take on brand awareness and potential for a celebrity to overpower a brand. In Tigers particular situation, Nike has created a balance between his expertness in golf and his relation to the brand. There has been many situations though where consumers remember the celebrity and not the brand.
(Source: Journal of Business Research, 1990, vol. 21, issue 2, pages 48-64)

2.5 Celebrity Endorsement: A Strategic Promotion Perspective


Dr. Puja Khatri

This article examines celebrity endorsements and how they can be used to benefit a product and/or brand. The appeal of the celebrity needs to be perfectly blended with the brand in order for consumers to fully grasp the true meaning of the advertisement. Part of the study was to see if consumers were able to remember the brand and not just the celebrity. Studies in India showed that 80% of the viewers remembered the celebrity but not the brand. This shows how the brand and celebrity could not coexist together and stick out to the consumers mind so they can make a purchase. Khatri did highlight many risks that come along with celebrity endorsements. First the celebrity could over power the brand, with a brand that cannot compete with the face of a celebrity, the brand wont be remembered by any of the consumers who view the ad. The image of the celebrity is also important, if a certain celebrity has a tarnished image, or an image does not fit with that of the brand he/she will not be effective. However, there are many good things that come from celebrity endorsements. Building brand awareness is definitely an effect of celebrity endorsements. Having a familiar face as the face of your brand will help the consumers add your brand into their evoked set. Celebrities can also connect emotionally to consumers with more serious services like foundations or charities. Overall celebrity endorsements are good for brands as long as they can incorporate the right product with the right person. While celebrity endorsements do not guarantee sales, it is certainly not a bad idea.

2.6 Factors Predicting the Effectiveness of Celebrity Endorsement Advertisements,


David H. Silvera, Benedikte Austad, (2004) It examines whether consumers gather that celebrity endorsers like the products they endorse. Along with the examination, the article presents a model using these readings and other characteristics of the endorser in order to predict attitudes toward the endorsed product. Two experiments took place where participants examined written endorsement advertisements and were asked to determine to the extent that they thought the endorser actually liked the product in which they were advertising. Next, they were asked to rate the endorser by attractiveness, comparability to themselves, and knowledge of the product. Then the participants attitudes

towards the advertisement, endorser, and product were also measured. The resulting model specified that product attitudes were forecasted by interpretations about the endorser's liking for the product and by attitudes toward the endorser. In conclusion, the articles research suggests that advertisers should put more effort not only into choosing endorsers who are well matched with products, but also into making strong arguments and believable explanations for why endorsers truly do like the products they endorse. The results suggest that endorsement advertising effectiveness can be strongly influenced by consumers interpretations regarding if the endorser truly likes the product. Although, advertisers often appear to be satisfied with merely creating an association between a celebrity endorser and their product with the hope that the endorsers positive image will somehow be transferred to the product. The article made it clear that it is quite possible that the effectiveness of knowledgeable endorsements depends on a substantially different set of variables than celebrity endorsements, and as such the modeling of expert endorsement effectiveness is an issue that should be addressed in future research. Similar to the article above, the following article summarizes similar effects on the importance of celebrities representing products they would actually use to create a meaningful connection to that particular product. Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process has an interesting take on how cultural meaning and the celebrity endorser play a large role in the meaning of a product. A goal of companies is to identify cultural meanings intended for their products such as type of gender, status, age, lifestyle, time, and place meanings. Once this is determined, a celebrity is matched with the product so the consumer associates that celebrities cultural meanings with the product or service. Well-made advertisements are

essentially able to take on any meaning. Poorly crafted advertisements are not. Companies need to be sure that the actor they use to associate to their product portrays a level of expertness and trustworthiness. Celebrities draw in powerful meanings from the roles they assume on As long as the credibility and

television, movie, military, athletic, and other careers.

attractiveness conditions for that celebrity are satisfied, any celebrity can seem credible and draw in consumers when done correctly. The ultimate goal is to take the positive feelings toward a celebrity, transfer those attributes onto the product, and these meanings are transferred from the product to the customer. (Source: Factors predicting the effectiveness of celebrity endorsement

advertisements", European Journal of Marketing, Vol. 38 Iss: 11/12, pp.1509 - 1526)

2.7 The Association Endorsement and Consumers Intention to Purchase


Rennae Daneshvary, R. Keith Schwer, (2000) Rennae and Keith specifically looked at the effect of endorsement on the Professional Rodeo Cowboys Associations (PRCA). According to the research when an association h as an endorsement it will lead to more purchases made by the consumer. This article also looked at different theories behind why consumers act the way they do. One of the theories was social influence. This is when a consumer finds himself or herself relating to the seller of the product and develops an attitude towards that product based on the person. Consumers are more likely to adopt behavior advocated by an association (group) if they identify with the group (identification). Furthermore, if they perceive the source (association) as credible and as an expert in the products which it endorses, consumers are likely to purchase the product (internalization) (Daneshvary and Schwer). If a consumer is looking to solve a problem they will be easily affected by the endorsement especially if they can easily relate and find similar values in the product. To find out how consumers perceived the PRCA they distributed surveys to all rodeo fans. The questionnaire addressed rodeo fans interests in rodeo and rodeo events, their satisfaction with the rodeo arena, their buying habits, their transportation and accommodation requirements while in the host cities, and their ownership of western apparel. In addition, socioeconomic questions including education, age, gender, occupation, and household income were included (Daneshvary and Schwer). The research also looks at the intentions of the purchasers; they predicted that rodeo fans that attend PRCA would be most likely to purchase products endorsed by them rather then those who do not. The main purpose of this article was to show that having an endorsement can lead to positive purchase intentions if the individuals can find their values in the endorsement as well as if they find the association credible. (Source: the association endorsement andconsumers intension to purchase", European Journal of Marketing, Vol. 36 Iss: 11/12, pp.146 - 152)

2.7 Third-Party Organization Endorsement of Products: An Advertising Cue Affecting Consumer Pre-purchase Evaluation of Goods and Services,
Dwane Hal Dean and Abhijit Biswas

This article discusses third-party organizations endorsements (TPO) and how they can positively affect the purchase of a product. If the TPO endorsement is seen in a positive light then the attributes of the TPO will reflect onto the product being advertised. According to the study, TPO endorsement may take one of three general forms: (1) the product is ranked against competing products in its class on one or more criteria, (2) the product is awarded a seal of approval by the TPO (though how the seal differentiates among products in the class may be unclear), or (3) a subjective, non-comparative statement is made about one or more product attributes (Dean and Biswas 42). In this study product endorsed advertisements and nonendorsed advertisements were compared to see the difference in how a consumer develops an attitude towards the product as well as the credibility of the source. This study found that for celebrity-endorsed products that were high in social risk that it was more appropriate then for a product that was low in financial risk. The specific products that the researchers researched were desktop computers and auto insurance. They found that a TPO would affect the selling of auto insurance more than the selling of computers because consumers perceive more risk in the purchase of services than of goods (Dean and Biswas 55). This study also concluded that having celebrities advertise a product is good for grabbing the audiences attention. Having celebrity endorsers can be beneficial as long as they bring a positive image to the brand. (Source: Journal of Advertising Vol. 30, No. 4 (Winter, 2001), pp. 41-57)

2.8 Exploring the relationship between celebrity endorser effects and advertising effectiveness,
C Amos, G Holmes, D Strutton They discusses the importance of positive celebrity information and its impact on consumers. Negative celebrity information can be extremely detrimental to an advertising campaign, so companies need to choose celebrities who remain credible to their audience. Companies hope

celebrities play a positive role in society and that their popular portrayal will transfer to the company. There are nine key predictors companies must examine before hiring a celebrity to associate with their products. They are celebrity performance, negative celebrity information, credibility, expertise, trustworthiness, attractiveness, familiarity, likeability, and

celebrity/product fit. By following these nine attributes throughout a marketing campaign, companies will be able to successfully transfer what the celebrity represents onto their business. (Source: International Journal of Advertising, 2008)

2.9 The Economic Worth of Celebrity Endorsements: An Event Study Analysis


Jagdish Agrawal & Wagner A. Kamakura It discusses how important celebrity endorsements are and they affect the economy. In recent years, celebrity endorsements have become very popular in the United States, and more and more companies each day are beginning to use this tactic. Approximately 20% of all television commercials include some sort of celebrity. There have been many things written about the effects of celebrity endorsements on consumers brand attitudes and purchases, but little is known about the economic value of these endorsements. Typically, research on this topic usually focuses on the theories explaining how certain celebrity endorsements influence consumers attitudes and buying intentions. The authors of this article assess the impact of celebrity endorsement contracts on the expected profitability of a firm by using an event study. Their approach assumes that the announcement of a celebrity endorsement contract, usually widely publicized in the business press, is used as information by market analysts to evaluate the potential profitability of endorsement spending, thereby affecting the firm's expected return. Announcements of 110 celebrity endorsement contracts were analyzed. Results indicate that, on average, the impact of these announcements on stock returns is positive and suggest that celebrity endorsement contracts are generally viewed as a worthwhile investment in advertising. This indeed shows that celebrity endorsements have a positive correlation with the selling of products; meaning that products are more likely to be bought with the appropriate celebrity endorser. The literature review examining our question: How do celebrity endorsements affect consumer behavior? have lead us to multiple conclusions. Celebrities do have a large impact on the purchase of the products they endorse, but there are some rules companies must follow in order

to see positive results. The most common predictors to a successful celebrity endorser campaign is the celebrity endorsers wisdom must match the message they are relaying in order for the transfer affect to be profitable. This means a marketing campaign will not be successful if the celebrity used does not properly represent the product and aspirations of the consumers. This is similar to the fact that celebrities must actually like the product they are representing. If the pitch is forced, it is not believable, making the advertisement itself not creditable to the audience. Another important factor after conducting the literature review is likeability of the celebrity must be present. If a celebrity is not well liked by the population or his or her recent activities are not respected, than consumers are less likely to buy the product they are representing. Lastly, companies need to identify the social influence a celebrity has on his or her audience. Consumers are more likely to adopt behavior advocated by a group or association if they identify with the group identification. If a celebrity is chosen properly, it has been proven that companies can influence their target market to buy their endorsed product. The campaign will be even more successful if they can transfer the likability and credibility of the celebrity on the product being endorsed and eventually the brand a whole. (Source: Journal of Marketing Vol.59(1995),No.3 PP 56-62)

2.10 Using celebrity endorsers effectively: lessons from associative learning


Brian D. Till, (1998)

The use of celebrity endorsers in advertising is wide-spread as much as 20 percent of all advertising use some type of celebrity endorser. Marketers invest significant dollars in securing the promotional support of well-known individuals. Associative learning principles are presented as a useful framework for understanding how celebrity endorsers can be used more effectively. Principles such as repetition, overshadowing, blocking, belongingness, CS pre-exposure, association set size, and extinction are introduced and linked to specific managerial suggestions for improving the use of celebrity endorsers.

(Source: Using celebrity endorsers effectively: lessons from associative learning", Journal of Product & Brand Management, Vol. 7 Iss: 5, pp.400 409)

2.11 Celebrity endorsement, brand credibility and brand equity


Amanda Spry, Ravi Pappu, T. Bettina Cornwell, (2011) This research aims to examine the impact of celebrity credibility on consumer-based equity of the endorsed brand. The mediating role of brand credibility and the moderating role of the type of branding (parent versus sub-brand) employed by the endorsed brand on the endorser credibility-brand equity relationship are also to be examined. The endorser credibility-brand equity relationship was developed using associative learning principles whereas the brand signaling theory is applied to examine the mediating role of brand credibility. The approach that used to conceptual framework was tested using a field experiment. Data were collected using a mall-intercept approach at a shopping center from a sample of consumers in a metropolitan Australian city. The data were analyzed using structural equation modelling. Findings Results suggest endorser credibility has an indirect impact on brand equity when this relationship is mediated by brand credibility. This mediating relationship was moderated by type of branding. However, the endorser credibility-brand credibility and endorser credibilitybrand equity relationships did not vary according to the type of branding employed. Practical implications In support of past findings, the present study shows that a celebrity endorser should be one who is perceived as credible based on their attractiveness, expertise and trustworthiness. Moreover, in this research, even a moderately low credibility endorser proved to be able to build the brand. Originality/value The present study is one of the first to empirically examine and confirm the impact of endorser credibility on brand credibility and consumer-based brand equity (Source: Celebrity endorsement, brand credibility and brand equity", European Journal of Marketing, Vol. 45 Iss: 6, pp.882 909)

2.11 Impact of Celebrity Endorsement on Brand Acceptance.


Patel, Pratik C. Using a celebrity for endorsing a brand has become a trend in India. But who is a celebrity. "A celebrity is a person who is well recognized by the people and has a good reputation and in the people's mind and in the society". But in the end they are also human beings and they can have some negative points, they can fall into controversy and they can fail in their field. When this happens, the brand has to suffer because of the celebrity even though the product is the best in the

market. Does the marketer know this? The answer is yes. Then why does he go with celebrity endorsement? The answer is to get instant brand acceptance and sometimes to compete with the competitor or sometimes as a routine. However, corporates must always keep in mind that the objective is to build the brand and not the celebrity. It is also important to appreciate that just because an individual is famous and considered a celebrity, he/she might not necessarily be an effective endorser. As said earlier, celebrity endorsement is always a two-edged sword and it has a number of positivesif properly matched it can do wonders for the company, and if not it may boomerang. In this paper an attempt has been made to know the pros and cons of the celebrity endorsement. (Source: ICFAI Journal of Consumer Behavior. Mar2009, Vol. 4 Issue 1, p36-45)