Thesis HCBF Friend of Ms Sakheela

Impact of Celebrities Endorsements on Brand Image
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(A Case Study of HBL)
CHAPTER 1
1.1. INTRODUCTION
In every minute, every person sees and hears about the feature of different products
which we called the advertisement. And these advertisements attract them. In modern
world there are many advertisements and because of this it is hard for the companies to
create something new for their advertisements. That’s why the companies use the
celebrities in their ad to attract the people. The people who are well recognized are
known as celebrities. Because of unique lifestyle, some extraordinary achievements they
are different from the other people. Celebrities include actors (Shan, Hamza Khan, Fahad
Mustafa), actresses (Reema, Saima, Saba Qamar, Ayesha Omer),directors (Danish
Nawaz, Nabeel, Sangeeta), sports persons (Assam ul Haq, Shahid Afridi, Jahangir Khan),
anchors (Javeed Iqbal, Aniq Naji, Talat Hussain), hosts (Mani and Hira, Tariq Aziz,
AAmir Liaquat Hussain), political persons (Asif Ali Zardari, Imran Khan, Nawaz Sharif),
writers (Umaira Ahmad, Zafar Mairaj, Mumtaz Mufti), poets (Ahmad Faraz, Raees
Warsi, Zafar Iqbal) etc. The company selects the celebrity because of their glamour and
positive image to endorse its brand so that it is called celebrity endorsement. The uses of
the celebrities in ads have a great impact on the consumers or viewers mind. McCracken's
(1989) definition of a celebrity endorser is, "any individual who enjoys public recognition
and who uses this recognition on behalf of a consumer good by appearing with it in an
advertisement (marcoms), is useful, because when celebrities are depicted in marcoms,
they bring their own culturally related meanings, thereto, irrespective of the required
promotional role." Because of the celebrity endorsement the brand becomes famous.
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There should be the accordance between the celebrity & brand. A celebrity can enhance
or spoil the image of brand. According to the Debiprasad Mukherjee there is a 20 points
model for the selection of the celebrity in the ads.
>Celebrity-product match >Celebrity-target audience match
>Celebrity popularity >Consumer influencing advertisement
>Celebrity values > Celebrity regional appeal factors
>Celebrity physical attractiveness > Brand image formation capability
>Celebrity controversy risk > Multiple endorsements
>Cost of acquiring the celebrity >Fit with advertising idea
>Celebrity availability >Celebrity should be brand user
>Previous endorsements >Use of promotional medium
>Interest of endorser >Endorsement management team
>Unique idea of promotion >Celebrity Credibility
The celebrity endorsement trend is increasing day by day that’s why the banking sector is
also use the celebrities for endorsement of its products and services. The aim behind the
endorsement is to establish the strong brand image, to attract the viewer, to show that the
quality of the product is too good and famous persons also use it. In Pakistan it is
common trend that people try to use or buy that thing which has endorsed by celebrity.
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1.2. STATEMENT OF THE PROBLEM
The impact of the celebrity endorsements is increasing a lot. The likeness of celebrities is
compelling the companies to appoint the celebrities in their ads. Therefore the main
purpose of study is to investigate the relationship between the celebrity endorsements and
brand image. The statement of the problem is “what is the impact of celebrity
endorsements on brand image in HBL.”
1.3. SIGNIFICANCE OF THE STUDY
To develop or create an ad is a tough job. The importance of research is to access the
impact of celebrity endorsements on brand image in HBL. The main responsibility of the
ad agencies is to select that celebrity which is congruent with brand. This case study
shows the hidden aspects of the celebrity endorsements on brand image. The future
researchers also can get the benefit from this research but the main beneficiaries of this
study are:
 HBL
 Customer
 Celebrity
 Ad Agencies
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1.4. OBJECTIVE OF STUDY
The objectives of study are:
 To see the relation between the celebrity and HBL
 To identify the impact of celebrity on HBL
 To identify the impact of HBL on celebrity
 To explore the psychological effect of celebrity endorsements
 To reveal the positive impact of celebrity endorsements on HBL image
1.5. RESEARCH QUESTIONS
The research is based on the structured questionnaire, the research questions are as
follow:
 Is there is any positive relationship between the celebrity and HBL?
 What is the impact of celebrity on HBL?
 What is the impact of HBL on celebrity?
 Are HBL’s customers psychologically accepted the endorsements of celebrities?
 Is celebrity endorsement adds positivity on HBL image?

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1.7. METHODOLOGY
In order to gather data Quantitative Research Approach is used. Both primary and
secondary sources of data are used. The data is collected through structured
questionnaire. The responses of respondents are taken through survey. The respondents
of this research are HBL customers. The respondents are the students, teachers and
employees of the PU (old and new) campuses.
Celebrity endorsement is our independent variable while brand image (HBL) is
dependent variable. Researchers distributed questionnaire among the customers of HBL
for data collection. The sample size of this research is 100. The collected data is
represented for statistical analysis.
1.8. LIMITATION
 Time constrain is the main limitation.
 The results are based of customers provided information and can be biased.
 Because of the different nature of banks and industries we cannot generalize the
results. These results are just applicable on HBL.

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1.9. DELIMITATION
 Small sample size.
 Just considered the inspirational celebrities
 Data based on limited branches of HBL
 This research is based on convenient sampling because of the time and cost
constraints.
1.10. KEY TERMS
CELEBRITY
A popular person who gets public attention through media is called celebrity. There is a
huge impact of celebrities on their fans. Sometimes people perceived the celebrities as a
role model because the life of the celebrities is like an open book. Although to be a
celebrity is tough but after become the celebrity the impact is large. Celebrities are the
trendsetters. Because of the increasing trend of celebrities, they are also assigned in the
ads of the banks.
CELEBRITY ENDORSEMENT
When a famous person endorsed any product or service is called celebrity endorsement.
Actors, actresses, singers, directors, producers, scholars, models, writers, political
persons, chiefs, sports persons etc. are celebrities. Because of their expertise, fame and
popularity, they are assigned to endorse the products and services. Celebrity endorsement
is a gainful but as well as a risky task. The wrong selection of celebrity or any scandal
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regarding celebrity may spoil the image of brand or product. And any issue related to
brand may also spoil the image of celebrity like poor quality of brand may raises the
question on the celebrity’s trustworthiness and credibility.
 An individual or organization of repute is used to endorse the products, services
and activities of another organization.
 Celebrity endorsement advertising has been recognized as a ubiquitous feature of
modern marketing. McCracken (1989)
 According to Debiparsad Mukherji Celebrity endorsement is a two edged
sorrowed.
BRAND
According to American Marketing Association “A name, term, design, symbol, or any
other feature that identifies one seller’s good or service as distinct from those of other
sellers. The legal term for brand is trademark. A brand may identify one item, a family of
items, or all items of that seller. If used for the firm as a whole, the preferred term is trade
name.” A brand is a theme and company is all depend on its brand. A brand or product is
that thing or asset of the company through which the public identify the company. A
good quality brand creates goodwill while a poor or low quality brand may becomes the
reason of bad will of a company.
BRAND IMAGE
The impression in a consumer’s mind of a brand’s total personality (real & imaginary
qualities) is called brand image. A brand image is a thinking that what the consumers
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think about the brand and what they also think about the slogan, color, shape, picture,
styled wording, design etc. of a brand. As it is say that a brand is a theme of the
company, so brand image is the theme of consumers. And all the game is just depend on
the consumers theme about the company’s theme. A good quality brand creates good
image while a bad or poor quality brand may create bad image in the mind of the
consumers.
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CHAPTER 2
LITERATURE REVIEW
2.1. CELEBRITY
A charming, fascinating, appealing word “celebrity” can surprisingly do all that work
which a common one cannot do. Even the person who has this title can sell the more
products or brands as compare to the professional sales person as the Demi Lovato says
that in front of celebrity nobody can say no. Business community uses the celebrity for
profit making (Howard Schultz) because they can affect the people in a positive manner
(DavidHasselhoff). Those ads that have the celebrities draw more attention as compare to
that ad that has not (Sternthal, 1978) Celebrity own image can modify or boost the brand
image (Debevec , 1986).
According to Daniel J. Boorstin“the celebrity is a person who is known for his well-
knownness”. According to Lord Bayron the one who is glad that he is a well-known
person but he do not know those, who knows him. When a brand wishes to relate with a
specific person, who has good reputation and attraction, that person is called celebrity
(Pringle, 2004)
Celebrity includes
 actors (e.g. Abid Ali, Danish Nawaz, Fahad Mustafa, Faisal Qureshi)
 models (e.g. Anousha Abbasi, Iman Ali, Saba Qamar, Zara Sheikh)
 sports athletes (e.g. Mohsin Ali, Ahmad Bilal, Nadia Nazir, Parveen Akhtar)
 singers (e.g. Ali Zafar, Hasan Jhangir, Nazai Hassan)

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 businessmen (e.g. Mian Muhammad Mansha, Aftab Ahmed Vohra, Bashir Ali
Mohammad)
 writers and poet (Mohsin Hamid, Faiz Ahmad Faiz, Fatima Surayya Bajia)
 Politicians (e.g. Mian Nawaz Sharif, Chaudhry ShujaatHussain,Shaukat Aziz) etc.
A celebrity becomes a spokesperson of any brand through this process (Schlecht,
2003)
Lastly endorse
any brand
Then in (Spokeperson)
interviews
Then appear
through events
First appear
like a
professionalist
Fig: 2.1 a process of celebrity to spokesperson
The Economic Worth of Celebrity Endorsers
Celebrity endorsement has also become famous in United States according to industry
report approximately 20% television commercials are based on famous persons and only
10% television advertisements are based on celebrity endorsements (P.Sherman, 1985).
When a celebrity is involved in an undesirable event then a company faces disaster
difficulty.
Celebrity endorsement is difficult task because it is expensive for the firm. It depends
on the status of the celebrity and remuneration. For examples:

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 Shan shahid is a famous actor he charges 4 or 5 million for ads hosting and
dramas.
 Faisal Qureshi is top famous actor he charges 3or 4 million.
 Fawad Afzal Khan he is also famous actor he charges 2 or 3 million per drama.
 Mahira khan also famous actress she charges 150,000 per episode or ad.
 Nouman Ijaz also famous actor he charges 3 or 4 million for one drama.
 Saba Qamar she is also famous actress she charges 250to 30 lac for per drama.
 Sajal Ali is also famous actress she charges 15 to 20 per drama.
Types of Celebrity
There are many types of celebrities like:
 Classic celebrity: In this type the famous persons are used for the promotion of
the brand. Shan, Momar Rana and Reema etc. are the classic celebrity. Music
type like Ali Zafar, Ibrar ul Haqetc. These people do their own work and they also
promote the product of other people.
 Entertainment celebrity: These celebrities entertain people with their performance
like Iftkhar thakar, Tariq teddy, Vicky Naseem are the actors who entertain the
people. Their performance is remarkable and enjoyable.
 Industry celebrity: These celebrities provide the job of the people. Some
celebrities entertain people in different ways like Mian Mansha, Mian Riaz etc.
they facilitate people to provide them job and other facilities.
 Temporary celebrity: These celebrities are seen sometimes on screen but they
have much importance among people. Amna Haq, Sadia Imam etc
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 Villain celebrity: These people have negative impact on screen but despite it,
people like them. Shfqat Cheema is a famous as a villain but he influences in
people minds.
 Grace celebrity: These celebrities who have glamorous look. Mera, Amna Haq,
Jia Ali etc. these are the celebrity that have grace personality and have glamour
look.
 Simple celebrity: Some celebrities are the simple celebrity. In this type most of
the men are include in it. They treat the people as the simple manner and people
like these type of celebrity most and want to see them again and again.
Each celebrity whether old or new, negative or positive, has its own value among the
people. People like them, want to see them, talking about them and also want to spend
time with them. If celebrity does any advertisement people attract and also want to
purchase that product or brand (Ghali, 2012).
Celebrity Selection Process
Celebrity is like a “BLACK BOX” (secret of success). The organization who selects the
celebrity for endorsement gets the success but their selection is a difficult task.
According to Susie orbach celebrity is a painful culture. If the company fails to select the
right one the results can be unfortunate. Choose the celebrity; the reason is their huge
potential influence on the people. Famous people have unique importance among their
fans (Schlecht, 2003).
There is a process of selection of celebrity as an endorser.

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1. Company’s marketing staff goes to the advertising agency and shows them the
co.’s goals.
2. After the discussion between the co.’s marketing staff and agencies’ teams, they
decide about the selection of celebrity.
3. Then a market research is started to catch a celebrity according to the company’s
goal.
4. Agency also considered the pre-selected celebrities.
5. After the selection the agency suggests celebrity to its client.
6. After the approval of the client, the celebrity is selected.(Schimmelpfennig, 2013)
In marketing communication strategies selection of celebrity is a fair common practice
for major firm in supporting corporate and brand image. But often there may be a
mismatch between the celebrity and brand or product (Erdogan, 2001).
Following points should be considered while selecting the celebrity.
Accordance with the Product
There should be accordance between advertised product and celebrity (R. Kahle, 1985).
For Example: The cosmetic brand “ATIQA ODHO” endorsed by Atiqa Odho and the
brand “Knorr” (food and beverage brand) is endorsed by the CHEF MEHBOOB.
Accordance with the Targeted Consumers
The face or personality which is endorsing the brand should have the accordance with the
brand and also influence the targeted customers. According to Tony Wilson there is no
celebrity quite as powerful as the local, homegrown celebrity. For example if the targeted
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audiences are Pakistani so, a African model cannot attract the targeted audience,
company have to choose a Pakistani celebrity. Similar region celebrities attract more to
the targeted audiences (A. Kamins, 1994).
Popularity & Credibility
Popularity & credibility gives boom to the brand (MARINA CHOI, 2007). Positive
image of celebrity puts light on the brand or ad (Ohanian, 1990). Elements of credibility
are prudent, sophisticated and pleasurable and they create positive image (MARINA
CHOI, 2007).Shih-Mei Chen and Patricia Huddleston defines that:
Celebrity
Increase in
Endorse- Credibility
Purchases
ment
Fig: 2.2 celebrity credibility increase purchases
Gentleness
There should be no scandal, disrespect of the endorsed celebrity. Mostly gentleness is the
strength not the physical strength.
Attractive & Appealing
Physical attractiveness is the part & parcel feature of a celebrity (R. Kahle, 1985). There
is affection on attractive celebrity (D. Till, 1998). Attractive celebrities are the more
prominent one (R. Miciak, 1994) so they can appeal more to the consumers. More appeal
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means more likeness; bring to mind and to involve in that product. Involvement boosts to
remember the brand (E. Petty, 1986). The concept of attractiveness includes facial and
physical attractiveness (J. Baker, 1977).
Multiple Endorsements
Sometimes one celebrity in same products of different companies or a company signed
many celebrities for a same brand may create query. Even any past endorsement of
competitors may create question for the brand. Consumers have a fixed appearance about
any celebrity endorser, and this appearance effect is conveyed to the endorsed brand
(Atkin, 1983) so, if the celebrity has endorsed any competitor’s brand so, it may create
smashes in the consumers mind. Like ALI ZAFAR left Telenor and moved to Mobilink
which surprised the viewers.
Availability & Cost of Celebrity
Availability of celebrity should be assured and must according to the budget. A company
has different promotional campaigns (indoor or outdoor) and the presence of selected
celebrity is very essential in that campaigns. OLPERS milk selected the female hosts of
TV morning shows in its ad and whenever it started an outdoor campaign these hosts or
host are/is present in campaign.
Appearance of Celebrities in Advertisements
First time the celebrities use in radio commercials in 1930 & in 1950s appeared in
television commercials. In 1970 there was an increase in the endorsement of celebrities

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even that in 1979 the ratio is that a celebrity signed six commercials. In UK 1997, 25%
commercials are based on celebrities (Erdogan, 1999).
Celebrity Should Be a Brand User (A Case Study)
According to Wall Street Journal, China
In China lawmakers proposed law that every endorser should be a user of that brand or
product before endorsement. The background of this proposed law is that in 2006 a Hong
Kong actress endorsed a facial cream which reduces the wrinkles within 1 month but
when the consumers used it they faced side effects of that cream because of the harmful
chemicals. The Japanese skincare brand was penalized about $32,500, for false
advertising. (Abkowitz, 2014)
2.2. BRAND
We can say that this is a BRAND century. More and more people are more and more
conscious about brand. Some people consider a brand Their Life and some people give
no importance. People know the business because of its brand (Sevigny). Anyhow, either
one accept or not accept its importance but a BRAND has its own importance. Nowadays
brand becomes famous. In the past years only upper community or rich people uses the
branded things but gradually the middle class and now the lower middle class of
community has becoming conscious about the branded items.The term brand may define
as an item or thing or product made, produced or manufactured by a particular company
or person under a specific name. Any specific name, logo, slogan towards which the
customer and users wants to connect, with, is brand (Brick marketing). The brand is the
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reflection of the entire company. Brand is like a reputation of a company (Bezos).
Website, trade card, speech and how is your way of walking and talk is your brand
(Anyado).This term BRAND has now occupied the all necessities and luxuries of life.
There is a brand of soap, shampoos, dish washers, floor cleaner, fabrics, automobiles,
furniture, electronics, hotels, restaurants, residential areas (Baharia, Eden housing society
etc), drinks, eatable items, networks, foot wears etc.
Role of Advertisements for Brand Promotions
When a brand becomes brand, when the people recognize it as a brand, can any
organization makes its product as a brand? The story is just depends on advertisement.
The more the product advertised, the more the people consider it as a brand. Actually in
the advertisements the advertisers use any human, any cartoon character, any animation
etc. and the personality of that human, cartoon, animation either good or bad attracts the
viewer. These advertisements may be on televisions, radio, buses, internet, billboards,
flexes, magazines, and wall paintings leave an image on the mind of the viewer. And
whenever he/she sees that product on shops they recall that ad and unintentionally they
buy that product even for a trial.
All the advertisement is based on personality like positive personality, negative
personality, good personality, bad personality, horrible personality, funny personality,
lovely personality; smart personality etc. personality is a mysterious force which attracts
the others (Walter, 2012). People tries to copy their favorite celebrities or personalities
which are on ads for this they buy that products or brands. According to Paul Harris a
personality can uplift, depress, bless and curse.

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Branding
Branding is an element of marketing. Companies spend too much funds to establish and
to promote their brands, among various things it is essential that there should be some
identity or labeling of every item for the ease of the identity. Branding is to identify your
business & your product among many competitive business &products, for a successful
branding you should consider your customers wants or needs. The objectives of branding
are to convey the message clearly, to persuade the buyer, to express your credibility
(Lake) to show something different, to being memorable, to create attraction (Goward).
Branding is done by the brand marketers. They define rules, standards, and guidelines or
if we conglomerate it then “Brand Bible”. Brand Bible is a fusion of immaterial or
tangible concepts, lyrics and metaphors that create the feelings (Goward).
Branding Strategy
Brand uniqueness is a vital part of a business, but in which things the uniqueness can be
developed are
 name, logo, title, or slogan
 letterhead
 Promotional materials and P.R.
 Signage
 Web sites
 Costumes, outfits
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 Promotional items such as pens and pencils, key chains, ball caps, drag bags
(Bubba).
Branding Approaches
 Single product branding–In a single product branding the producer assigns new or
different name to every single fresh product. For Example existing product is
beauty soap and new product is dish washing bar. Another example is Pepsi is a
brand of PepsiCo but this company is also introduced a new brand which is Lays
chips.
 Kinfolk branding–To create a family of brands, to put every new product into the
shelf of the existing one. For example in a juice section arrival of new flavored
juice. Another example is Pepsi is a brand of PepsiCo and company introduced
new product of this family which is Dew.
 Co-branding–To combine your brand with other brand like sell your tea with
other brand’s biscuits. Another example is Nestle selling its Everyday milk
powder with Lipton’s Tea bags.
 Pass on branding–To manufactured the products by someone and tagged your
name to sell like EVERYDAY (powder tea milk) sold tea cups- manufactured by
other co- along with the pouches of the powder milk.
 Generic Branding– Substitute of more expensive brand and normally non
promotional. Like Bata Shoes endorses its different costly foot wares like male
sandals, leather shoes, female sandals, child collection but not endorses its
commonly used slippers which are made of rubber (Bubba).

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Celebrity Branding
According to celebrity branding means a celebrity endorses the brand as a brand
ambassador (Wikipedia). The second relevant term is promotional model; the celebrity
promotes the brand to use his/her status, fame etc. most celebrities promote fabrics,
mobiles, perfumes etc. Branding agencies choose the celebrities who are fit with the
brand. There should be a congruency between the celebrities and brands. Because of the
congruency the image of the brand becomes positive (Farhat, 2011).
Brand Image
A broad impression of merchandise held by actual, genuine or potential consumers is
called brand image. A good image can promote the business or the bad image can ruin.
The contents of brand is called brand image, brand image improves and delivers the
product’s character in an exclusive manner different from its competitor’s image. Brand
image is popular since the early 1950s. Gardner and Levy's article describe that
significant deviation exists among authors on five distinct, but related, characteristics of
"brand image". These include (1) the name endorsed the existence for example Pepsi,
Coca-Cola, Levis, HBL, PTV, McDonald etc. (2) formal existing definition, like Pepsi “
Dunya Hai Dil Walon Ki”, Jazz “Apna Hai”. HBL “Jahan Khawab Wahan HBL” (3) the
modules of brand image like
This Shape represents Apple Inc.

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This image shows the Surf Excel, a product of Unilever.
(4) the mechanisms used to measure the brand image like through quality, popularity and
through likeness one can judge the brand image and (5) perspectives on the beginning,
design, making and impressionability of brand image for example there is a availability
of many local tea leaves but people like to buy Supreme Tea because of its origin, its
design and its good impression (Dobni, 1990).
Due to brand image you can get the many benefits like 1. Customers can recognize you 2.
Customers can get the recognition about your product 3. An image can give the clear
message about brand or product to customers 4. An image is itself an advertisement
(Rains, 2011).A strong brand image can prevent the customer from the trapping of
competitors (Davis, 2012).
Brand Personality
A human or character which has some specific attributes and when these strongly be
associated with the brand and endorse that brand is called BRAND PERSONALITY.
There are three dimensions of a successful brand personality and each dimension has two
elements.
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1) HEART
(1) Passionate
(2) Compassionate
2) MIND
(1) Creative
(2) Disciplined
3) BODY
(1) Agile
(2) Collaborative
The above dimensions and elements are interlinked with each other. If the brand
personality acts with “heart”, “mind”, “body” the brand will succeed. There should be
passion and compassionate in the heart of the brand personality, and because of this
attributes the personality endorses the brand awesomely. The second dimension is mind
which should be full with creativity and disciplined, if the mind is creative and
disciplined each and every time the brand personality performs in a different way. The
third dimension is body which should be agile and collaborative, to deliver the right
message or idea to the customers (Lane Keller, 2006).
Who Is Celebrity in Advertisements
Celebrities are the breakers of ads clusters (Erdogan, 2001). They are the persons to
whom the people like, follow, respect, love & have a high regard for (E McCutcheon,
2002). The persons who have some unique value and through this value they enrich the
endorsed brand (Debevec , 1986). The consumers give more importance to celebrities as
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we can say that they “worship” of them and only buy their endorsed products or brands
(John, 1987). In advertisement the celebrities are like the promoter, attention taker of the
viewers. They promote the brand or product in a favorable manner (H Friedman,
1979).Celebrities are the income generators and this is a continuous benefit even they die
(Goldman, 1994).The dead celebrities set remarkable memories in the mind of the
consumers (D’Rozario, 2013) like Habib Banaspati uses the picture of NOOR JAHAN in
its ad despite she has died but still people recognize her and remind her that’s the reason
either a person alive or died people remember him/her because of his/her performance or
work and that person is called a celebrity, who died but still alive in minds.
2.3. CELEBRITY ENDORSEMENT
A person who endorses any product or brand is called endorser. When a celebrity
does this, it is called celebrity endorsement. Celebrity endorsement may vary from
culture to culture (McCracken, 1989). It is a technique which the company uses to attract
the audience in a blink (GUPTA, 2014).Celebrity endorsement depends on the cultural
standards, ethics (Choia, 2005). The method of advertisement has changed from classical
to modern theory in which persons show different emotions to endorse the brand to the
consumers (Dimed, 2005). The HPI research group has developed the 5 promotional
ways of product and through these ways the celebrity endorses the brand. These are
 Testimonial Way through this way the celebrity is hired to show that the quality
of that advertised brand is superior. For example Face Fresh Beauty Cream is
advertised by Mehwish Hayat just to show that this new beauty cream is superior
to the existing one.

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 Imported Way through this way the celebrity endorse the product with the help of
some well-known role which he has played in some films or dramas. For example
Mahira Khan &Fawad Afzal Khan in AQUAFINA Water ad. Both celebrities
have appeared in a hit novel based drama serial HUMSAFAR. So, Aquafina used
both in its ad just because of that memorable role.
 Invented Way through this way the celebrity adopts a new style which is
exclusively performing just for that specific ad. For example Shan appeared in
Servis Tyres Tv commercial. Shan is not a professional heavy biker but
exclusively for the ad he appeared as a heavy biker.
 Observer Way through this way celebrity endorses the brand after the mere
observation. For example Ali Zafar endorsing MOBLINK ( Pakistan Mobile
Communication Limited)
 Harnessed Way through this way celebrity is endorsed that brand, to appear in
every sequence of that ad For example Faisal Qureshi, Ayyan Ali in Ufone
ad.FasialQureshi appeared in every ad of Ufone with other co-stars.(Sun, 2009).
Impact of Celebrity Endorsements on Brand Image
What is the purpose to choose a celebrity for an ad? Because of Celebrities image and
personality, the brand catches the eyes of the consumers and becomes recallable (UK
Essays, 2013).According to Jean Kilbourne 3000 ads per day seen by an average
American consumer and approximately spends 3 year of his/her life in watching ads. It’s
a profitable investment for advertisers if they invest in celebrities for their brands
promotion (Agrawal, 1995). Celebrities are used for making profits (Redmond, 2007).
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Following process gives the clear idea that how a celebrity endorsement creates demand
of the product.
NEWSPAGE DESIGNER defines the process as:
Increase The
Celebrity Creates Develop
Brand Demand of
Endorsement Attraction Interest
Products
Fig: 2.3 increases the demand of brand
Its impact is beneficial for the:
COMPANY
The use of celebrities in ads increases the consumer’s awareness towards the product or
brand. The appearance of celebrity catches the eyes of people and they watch or see that
ad more consciously.
CUSTOMERS
Customers are the general public. Companies do all efforts to capture that public, for the
selling of its products. If there is a celebrity in an ad and when common man watches that
ad he believes that if that celebrity is using that product, so may this product is good. His
believe increases on the product or brand.

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COMPETITORS
If a company uses a strong marketing technique and appears a celebrity in its ad so, at
this time the competitors turn attentive because they know that through this technique a
company can gain more profits. The uses of celebrities give tough time to competitors.
For example Ali Zafar endorsed new SUNLIGHT washing powder. Although it was new
brand in market but because of celebrity endorsement people used that new product. At
that time Surf Excel, Bonus, Ariel, Express washing powders were existing competitor of
Sunlight.
AD AGENCIES
If the idea is unique and celebrity is fit with the ad/idea, it captures the customers. And
when ad becomes famous all credit goes to the ad agency and it increases the goodwill of
that agency and also gives it new business. For example Faisal Qureshi with his co stars
has been appearing in Ufone ADS and now the Master Paints also used that team in its
ads. The reason behind it is just the popularity of Ufone ads.
Pros &Cons of Celebrity Endorsement
Pros
Celebrities have the God gifted attraction. Anything which they promote public accepts it
because of their goodwill (Mckinney). Customers have the more buying attraction of
27
those goods endorsed by the celebrities rather than ordinary one (Agrawal, 1995).
According to Erdogan there are five advantages of celebrity endorsement.
• More Attention Getting
• To Enhance the Value Of Brand
• Creates Attraction
• To Position the Brand
• To Create Promotions
More Attention Getting:
If someone sees some extraordinary or unusual thing, at that time all of his attention
comes in one point. This technique is

Top
used by the advertisers to get more and Of
Mind
more attention of viewers, customers etc. Brand Recall
to attract the new customers is also a trial Brand Recognition
for business. Unaware Of Brand
They use the celebrity to endorse any Fig: 2.4 brand awareness
brand or product (Mckinney). Like, for the promotion of the POLIO CAMPAIGN used
any politician e.g. Imran Khan. The use of the celebrity may diverse the endorsement
from competitors (G.W. van Nifterick, 2009). Above pyramid is showing that how the
use of celebrity gets the attention of customers.
To Enhance the Value of Brand:

28
The impact of the celebrity value, added the additional value in product or brand
(Erdogan, 1999).Like we can say that, to promote the new banaspati ghee “Gai” in
Pakistan the advertisers use Juhi Chawala (the Indian Actress) and the value, status, fame
of that actress added the value on that product. Many people have emotional attachment
with celebrities. The company or advertisers uses the combination of physical and
emotional elements (Temporal) & enhance the value of brand. As the value of brand
more the customer will pay more (Gibson Strategy).
To Creates Attraction:
There are number of ads which the customers, viewers see every day. For example there
are many cough syrups ads also. The QARSHI INDUSTRIES signed the Rahat Fatteh Ali
Khan just to capture the attraction of viewers. Nowadays it is very hard to attract and
creates new customers but using the tool “celebrity” the business community can do this.
Even the HAKEEMKHANA proprietors use the celebrity to attract the customers.
Celebrities create familiarity of that product among the public (Mckinney.P). After
watching the celebrity based ads customers get that product to be similar to, to give the
impression or to identify with that celebrity (Pringle, 2004)
To Position the Brand:
Celebrities advertised the product or brand to show, that this particular brand or product
has a superior value. Celebrities are well respected, and consumers have the perception
that anything which the favorite celebrity is endorsing it true and good for me.
(Mckinney.P)
29
To Create Promotions:
To become a celebrity is not an easy task. They have to work hard, to attend many events,
parties, trips, shows etc. etc. and because of these activities, fame & name
advertisers/companies selected them. Celebrities are also the mode of the promotion of
products or brands. To use the national or international recognition OF celebrities the
companies promotes, introduce their products all over the world or there, where they
want (Nifterick.S, 2009) .Through Promotions Company invites the customers, gives
them awareness about the product and to create familiarity between the brand and
customer. Familiarity straightforwardly changes into likeness (Pringle, 2004)
Other is
To Respire the Failing Brand:
Celebrity endorsements catch, hold and up the drowning brand or product and recreates
interest for the consumers (Mckinney.P).To keep and to win the customer is the actual
target of business through celebrity. Celebrity also got boost through photography
(Pringle, 2004) to respire the failing brand. The increasing trend of celebrities in ads and
nonstop fascination of stars in magazines etc. (L. Epstein, 2007) keep alive the associated
brand.
To Create Relationship:
30
The advertisers assign the celebrity to show that, this celebrity is also a user of that
product and through this practice the consumers pull towards that product and make an
effort to purchase that product to step closer or to follow that celebrity.
Cons
It’s true that a celebrity can give advantages but at a same time this advantage may
change from a huge disadvantage because celebrities are also human beings and can do
mistakes or even crime. The use of celebrity is good choice but you should think twice.
According to Pringle celebrities play a prurient role. Steve McKee defines the term
celebrity endorsement as a “borrowed equity”. Erdogan listed some disadvantages.
• Outshine the Celebrity
• Public Disagreement
• Over representation
• Over Priced
Outshine the Celebrity: There should be the promotion of brand not the star (Cooper,
1984).Sometimes celebrity endorsement creates a vampire effect means people recall
celebrity not the brand or product (Erdogan, 1999).Customers gives attention to the
celebrity not to the brand (E. Belch, 2001) and recalls the celebrity but not the
communication delivered by the marketing so celebrity may became at the title other
than the brand and product.
Public Disagreement:
31
In case of any scandal, misrepresentation community dislikes the celebrity (Erdogan,
1999).What will you do if you discover your celebrity endorser guilty on the next
day? Scandals cannot sell your product (Harrington , 2014).
Over representation:
At a time appear in more than one commercial, ads may confuse the public to create
the connection between the celebrity and the advertised item (Erdogan, 1999). If the
celebrity endorse more ads like more than 5 ads, a common perception arise in the
mind of the consumers that this celebrity can endorse anything just for profit making.
Quantity may make a fuss over quality.
Over Priced:
Sometimes the charges of the celebrities are like “titanic” (Erdogan, 1999). The more
the celebrity famous, the more he charges (Nifterick.S, 2009). Celebrities charges the
additionally incentives also like to use, to stay, to go in the superfluities and this
attitude may go you towards bankruptcy (Harrington, 2014).
Artificial performance:
Sometimes the consumers perceived that the celebrity is advertising this product and
he is not the actual user of it. He is doing this just for money or to the fulfillment of
his contract which he has signed with the advertiser or company.

32
Give A Costly Look:
Sometimes the use of a “super celebrity” in common products may compel the
people to think that the price of that product or brand may be high.
Use of Others Brand:
In events, commercials, ads, party or even an award ceremony if the celebrity uses or
wear any brands or products other than he endorsed then it may create problem to the
company or the celebrity itself.
Perception of Weak Quality:
Sometimes the person thinks that may be there is any weakness in the quality of a
brand or product that’s why company is endorsing its product through celebrity. If the
brand or product quality is strong there may be no need of celebrity (Harrington,
2014).
Coordination of 4 P’s With C & B
Let us define the 4 P’s with C & B

33
Place Price
Product Promotion
Celebrity
& Brand
Fig: 2.5 coordination of 4P’s with C & B

Product:
The goods & services which have some distinct features and it has quality, design,
branding etc. is called product (JD SPORTS). If the right product is endorsed by the
right celebrity a right image is created about brand starts. For example Shahid Afradi
endorses “Head & Shoulder” Shampoo. The situation may be opposite if the right
celebrity endorses wrong product or wrong celebrity endorses right product.
Place: place refers to that space where the customers come to purchase the products.
Place includes in and out of the town, streets, shopping centers etc. (JD SPORTS). If
the brand is promoted in the right place with right celebrity then it increases the right
image of the brand. For example Pakistani celebrities endorse brand in Pakistan.
Price: the factors determine the price of a product or brands are cost, profit margin,
competitor’s margin, consumer purchasing power etc. (JD SPORTS). If the right
celebrity endorses the right product then the right concept comes about the right price
of the product in the mind of the viewers. For example the “MAGNIUM” ice cream is
being endorsed by the KARINA KAPOOR which creates a costly image about that
ice cream.
34
Promotion: main elements of promotion are to create cognizance, to create attention
and aspiration towards the consumers (JD SPORTS). If the right celebrity is used, to
promote the brand through right way so it will be fabulous. For example In HBL
“Fuel Saver” commercial Hira and Mani is selected to endorse THE FUEL SAVER
CREDIT CARD. And the selection of those celebrities in that ad is good for
promotion. Another example is new banaspati ghee“GAI BANASPATI GHEE”
endorsed by JUHI CHAWALA.People of Pakistan knowthe JUHI CHAWALA,
that’s why this promotional way is also attractive.
Celebrity Co- Branding
Celebrity endorsement highlights an important area of marketing. Celebrity endorsement
have indicated that celebrity endorsement influences consumer positively, and this
influence is at least half due to desire to identify with the endorser. Today there is a trend
of complex marketing environment in which one celebrity is endorsing more than one
brand “co-branding” (Cheng-Hsui Chen, 2013). Co-Branding is a three way process in
which the endorser has a link with product A, secondly the endorser has the link with
product B and thirdly the relationship between product A & B (D. Till, 2008).The
collaboration of brands endorsed by a single celebrity through social networking,
sending, promotions, value chain, sponsorship, services etc. (Besharat, 2010).There is a
classical approach which determines how the impact of one endorsement affects the other
endorsed brand(K. McSweeney, 1984).If the celebrity remains engaged with the one
brand endorsement the second brand gets the benefit, because the celebrity’s consistent
engagement with one brand creates positive image on the mind of the consumers and that
35
loyalty of celebrity imposes good impact on other brand(Gregan-Paxton , 1997). Any
gossip or dispute regarding one brand may also impose negative impact on others brand
in case of celebrity co-branding (JohanLanseng , 2012).Celebrity co-branding will be
suitable only if, there will be strong association between both the brands and with the
celebrity (Misra, 1990).For example: Pakistani cricketer “Shahid Afridi” take part in
several advertisements like Head&Shoulder Shampoo, Pepsi, Haier, Q Mobileand HBL.
His image creates a deep influence on the company and its brand.
2.4. IMPACT OF CELEBRITY ENDORSEMENTS ON HBL
Habib Bank Limited
According to the official website of Habib Bank Limited:
HBL started its operations in Pakistan in 1947 and moved its head office to Karachi. Its
first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank
Plaza was built in 1972 to commemorate the bank’s 25th Anniversary. HBL was
nationalized in 1974. International operations were expanded to include the USA,
Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.
HBL Advertisement Campaigns
As we know that to use the celebrity in ads for brand building is a common practice
nowadays. A celebrity endorser is like a magic solution of marketing sadness (SHARMA,
2013). But now the banking industry is also using the celebrities for the promotion and
36
strengthens of its brand. For the adoption of the prudent marketing techniques HBL is
also endorsing its products through celebrities. There should be a congruency between
the celebrity and products (SHARMA, 2013) otherwise the results can be terrifying.
Although to use the celebrities in ads is a high cost technique but the efficient use of this
technique can justify the all cost.
Through celebrities the HBL has been endorsing different products like
 HBL Fuel Saver Credit Card through Ahmad Ali, Hira and Mani
 HBL Easy Loan through Erum Akhtar and Barkat Ali Siddique
 HBL Mobile, Phone Banking and ATM through Mr. Bean
 HBL Express through Sonia Hussain, Zhalay Sarhadi and Azra Aftab etc.
37
THOERETICAL FRAME WORK
The theoretical frame work of the research to be conducted is shown in the figure below.
Independent variable includes celebrity endorsements and Dependent variable includes
brand image.
CELEBRITY
ENDORSEMENTS
BRAND
IMAGE
Fig: 2.6 impact of celebrity endorsements on brand image

38
Following are the factors of these variables.
THOERETICAL FRAME WORK MODEL

39
Celebrity
Congruency Brand Image
Endorsements
Physical
Good
Attractiveness
Trust
Pleasant
Worthiness
Expertise Like
Good Quality
Satisfactory
Fig: 2.7 factors of variables
CHAPTER 3
40
METHODOLOGY
RESEARCH METHODOLOGY
The purpose of this research is to investigate the relationship between celebrity
endorsements and brand image. The study discloses the impact of celebrity endorsements
on brand image of HBL on males and females of Lahore.
There are three phases of research methodology:
 Formulation and Defining the research approach
 Execution and Collection of data
 Evaluating and analyzing the collected data
3.1.Type of Study
The type of study conducted is descriptive and inferential. The basic purpose of
these types of studies is to investigate the characteristics of a particular variable of
interest. The importance of this type of study is various in organizations. Through this
type of study the organization can check and analysis the impact of celebrity
endorsements on its brand image.
3.2. Researchers Interference
The researchers’ intervention in this study is nominal. Therefore, the real impact of the
study is accurately analyzed and studied.

41
3.3. Study Setting
The study setting is non-contrived. It means the study is conducted in the actual work
setup and there is no change in the work environment by the researchers. The simple
purpose of the study was to establish an association in the variables and it requires the
genuine work setting such research is called a field experiment.
3.4. Unit Of Analysis
The element of inquiry is individual. The study is accompanied on the individual
comportment of a person so the unit of analysis is individual.
3.5. Time Horizon
The study was a cross sectional study it means data researchers did not do the data
collection twice, once before the treatment and second after the treatment. Rather the
correlation of variables was to be estimated and therefore, the data was collected once.
3.6. Research Approach
This research work is based on quantitative approaches. In quantitative approach, the
researchers used the structured questionnaire to get the opinions of the HBL consumers
about the celebrities’ endorsements on brand image. Through quantitative research the
researcher measured the current trend of celebrities’ endorsements on HBL image
according to the opinion of the HBL customers. And this opinion was analyzed to
identify the impact of celebrities on HBL brand image.
3.7. Research Design

42
In this research the questionnaire was used as data collection tool and convenient
sampling technique. It is categorized as inferential research where the results can be
generalized. 1 sample T-Test, Correlation, Regression was used to test. The questionnaire
is based on the information about the gender, marital status, income, age and qualification
of the respondents. The name of the respondents was not necessary in this research.
The major area of concern is the celebrities’ endorsements and its impact on HBL image.
To investigate the celebrities impact the physical attractiveness, trustworthiness and
expertise of celebrities was considered.
3.8. Population of Study
The research is based on Lahore and the respondents were HBL customers. There are
many customers of HBL but there is a response of 100 customers. Those customers who
everyday watch the ads of HBL either in television, bill boards, magazines, newspaper
and in HBL branches in the form of broachers. The sample which was used in this
research is fairly good.
3.9. Sample of the Study
The sample size selected is according to the standard. The study is consisted on
males and females consumers of HBL. 100 Sample size was fixed for research.
3.10. Sampling
43
The sampling is done on a mixed basis. The sample is selected only from
PUNJAB. Therefore the banks are selected on the basis of random sampling. Then
further, customers in the banks are selected on the basis of convenient sampling. The data
was collected from the both genders. This helped in getting the views and response of
both male and female customers.
3.11. Tool of Data Collection
Two types of data used in this research.
Primary tools: primary tool was questionnaire. The questionnaire was, to acquire the
required information. The design of questionnaire was easily understandable.
Questionnaires were solved in the presence of researcher.
Secondary tool: internet was the major source of secondary data. Articles, different
websites, books, journals and online dictionaries were used as a secondary data.
3.12. Data Collection
The data collection was started from first finding out the variables influencing the
dependent variable. The researcher collected the data about the impact of celebrity
endorsements on brand image (HBL). For this purpose a comprehensive questionnaire
was used to get the information from the respondents about the impact of celebrity
endorsements on brand image. In this research the HBL was a brand and it is dependent
variable whereas a celebrity endorsement is independent variable.
After defining such variables the researchers went to collect the data. They
distributed those questionnaires among the customers of HBL and also gave them a quick
44
review about the topic, brand and questionnaire and told them about the ads of HBL in
which celebrity was use to endorse the HBL products. For recalling the memories of
respondents, the researchers had pages of sample ads with them, which they showed to
the respondents.
3.13. Data Analysis and Interpretation
The researchers used the SPSS Software. Through SPSS the data was interpreted
and analyzed. The data was analyzed on the basis of correlation, regression and 1 sample
t-test. Therefore, it was very reliable measure of analysis for the relationship of the
variables in the study. Analysis was done to find out the final results.
3.14. Reliability
Reliability of the study is basically the assurance in the study. This assurance is
about the validity and exactness of the study. This means that the study is experienced if
it measures the same thing it was design to measure. This research study conducted on
the impact of celebrity endorsements on brand image. The study was checked for
Cronbach’s coefficient alpha. The resultant score was .908.
CHAPTER 4
45
ANALYSIS OF DATA
For collection of data 7 points likert scale was use. (1= strongly disagree, 2= disagree, 3=
disagree somewhat, 4= undecided, 5= agree somewhat, 6= agree, 7= strongly Agree)
In structured questionnaire the number of observations of each variable is 100.
There are two variables one is dependent and other is independent. Celebrity
endorsements are independent and brand image is dependent variable. Following factors
are used to measure the variables.
1. Physical Attractiveness
2. Trust Worthiness
3. Expertise Physical_ Trust_ Expertise Congruen Brand_
Attractiveness Worthiness cy Image

4. Congruency
Physical_ Correlation
S 1.000
Brand Image
5. Attractiveness Coefficient
P Sig. (2-tailed)
N 100
E factors are used to measure the impact
Above Trustworthiness Correlation
of celebrity endorsements on brand image
.592** 1.000
Coefficient
(HBL).
A Physical attractiveness,
Sig. (2-tailed)trust
.000 worthiness,
. expertise, congruency between the
N 100 100
celebrity and brand are the important factors to assess the impact of independent variable
R Expertise Correlation
.524** .648** 1.000
on dependent variable. Brand image is that factor through which the dependent variable
Coefficient
M Sig. (2-tailed) .000 .000
can be accessed. N 100 100 100
A Congruency Correlation
.315** .381** .430** 1.000
Coefficient
N Sig. (2-tailed) .001 .000 .000
N 100 100 100 100
'S Brand_Image Correlation .545** .440** .521** .376** 1.000
Coefficient
46
Sig. (2-tailed) .000 .000 .000 .000

R
N
H
100 100 100 100 100
O
4.1. CORRELATION MATRIX

**Correlation is significant at the 0.01 level (2-tailed).
CORRELATION
To verify if there was a statistically significant association between variables, a
correlation matrix was computed. All the variables were approximately normal. There is
no linear relationship between them hence, fulfilling the assumptions for Spears man
Correlation.
The coefficient explains that there is a significant relation between dependent
variable and independent variable with significance level less than 0.05 (p < 0.05) in all
cases. The variable of interest showed a significant relationship between each other
which means that they have some association with each other.
According to the correlation table all variables are highly correlated with each
other. The value of r calculated for trustworthiness and physical attractiveness is .592
(r= .592) that shows that there is strong positive correlation. The value of r between the
expertise and physical attractiveness is .524 which represents the strong positive
correlation. Expertise with trustworthiness is .648 which shows strong positive

47
correlation. Congruency with physical attractiveness of celebrity is .315 which just shows
the positive correlation but results are significant. Congruency with trustworthiness of
celebrity is .381 which shows positive correlation but results are significant. Congruency
with expertise is .430 and there is positive correlation but results are significant.
Correlation between brand image and physical attractiveness is .545 and it is strong
positive.
On the basis of above discussed results it is evident that there is a significant
relationship between dependent variable (brand image HBL) and independent variable
(celebrity) with significance level less than 0.05 (p < 0.05) in all cases.
4.2. REGRESSION
Table 4.2 Regression
Variables Entered/Removedb
Variables Variables
Model Entered Removed Method

1 Celebrity_End
. Enter
orsementsa
a. All requested variables entered.
b. Dependent Variable: Brand_Image
Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate

1 .611a .373 .366 1.12037
a. Predictors: (Constant), Celebrity_Endorsements
48
ANOVAb
Sum of
Model Squares df Mean Square F Sig.

1 Regression 73.090 1 73.090 58.229 .000a
Residual 123.012 98 1.255
Total 196.102 99
a. Predictors: (Constant), Celebrity_Endorsements
b. Dependent Variable: Brand_Image
The value of the adjusted coefficient of determination (adjusted R square) is .366 which
means that the combine effect of independent variable on dependent variable is 36%.
Model summary shows that 36% variation in dependent variable is because of
independent variable. Hence there is 64% change in dependent variable because of the
other factors which are not the part of the study. The adjusted coefficient of
determination (Adj. R2) shows the degree of freedom. There are no excluded variables
for this study and the value of Cronbach’s alpha is .908 which ensures the reliability of
data.
Anova table shows .000 significance, which is high level. Furthermore, the
coefficient explained that there is a significant relationship between dependent variable
and independent variable with significant level of .000. This further ensures that model is
good fit.
Table 4.3 Cofficients

49
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta T Sig.
1 (Constant) 1.421 .511 2.781 .006
Celebrity_Endorsements .742 .097 .611 7.631 .000
a. Dependent Variable: Brand_Image
The coefficient table presents the result of the regression analysis. The objective of the
regression in this study is to find such an equation that could be used to find the impact of
celebrity endorsement. The result shows that the independent variable significantly
affects the brand image.
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta T Sig.
1 (Constant) 1.421 .511 2.781 .006
Celebrity_Endorsements .742 .097 .611 7.631 .000
a. Dependent Variable: Brand_Image
The results show that celebrity endorsement affects the brand image. This test shows that
the coefficient of the predictor is statistically significant at more than 5% level of
significance. Regression is to check the impact of independent variable on dependent
variable. According to the value of beta there is 61% impact of celebrities’ endorsements
on brand image. And 39% impact of other factors on brand image.

50
CHAPTER 5
5.1. Summary
Nowadays mostly ads have celebrities. The companies select the celebrities for the
promotion of its brand. This technique is now using in banks also. Many banks like Bank
51
Al-Habib, United Bank Limited, Soneri Bank, Standard Chartered Bank, Habib Bank
Limited etc. now select the celebrities in its ads. But this study tells that how much
impact of celebrity endorsements on brand image in HBL. HBL has selected many
celebrities which are well known, well trained, good looking, attractive and expert in
their professions. These qualities of celebrities attract the customers of HBL to some
extent. HBL selected Ahmad Ali, Hira and Mani, Erum Akhtar, Barkat Ali Siddique, Mr.
Bean, Sonia Hussain, Zhalay Sarhadi and Azra Aftab, Shahid Afridi, Omer Gull and
many more celebrities.
The basic and important purpose of celebrities’ endorsements in ads is to show the brand
superior as compare to the competitor’s brand. Celebrity’s status displays the brand
superior. For this purpose many companies select the celebrities from the other countries.
Like in Pakistan the companies used the Indian celebrities because of the popularity of
them in Pakistan. As we see that the Juhi Chawala is endorsing Pakistani product GAI
BANASPATI GHEE. Karina Kapoor is endorsing MAGINUM ICECREAM and Q
MOBILE in Pakistan. Saif Ali Khan and Karina Kapoor are endorsing Head & Shoulder
shampoo. And recently an Indian star Nimrat Kaur is endorsing Cadboury Chocolate in
Pakistan, through a TV commercial.
The research started after the review of the related literature. The dependent and
independent variables sorted out. After that the data was collected on the basis of
questionnaire, from the HBL customers. Then a detailed analysis of questionnaire was
made. The analysis was done on the basis of the correlation, regression, 1 sample T-Test.
Then according to the analysis the research was concluded.

52
From the research, the researcher can conclude that there is an impact of celebrity
endorsements on brand image in HBL. There is a 61% impact of celebrity endorsements
on HBL brand image. Hence the researcher concluded that independent variable do
impact the dependent variable. And the research is conducted in the right direction.
Appendix covers the questionnaire through which data is collected.
5.2. Findings
From the research, the researchers find out that the independent variable has an impact on
the dependent variable. The analysis concluded that the independent variable influences
the dependent variable 61% and if there is 1 unit change in independent variable its
impact on dependent variable is 36%. There is a positive relationship between dependent
variable and independent variable. The most consistent answer from all the respondents
was that there is an impact of celebrity endorsements on brand image. This research
accepted H1 and rejected Ho. Where,
Ho: There is no impact of celebrity endorsements on brand image.
H1: There is impact of celebrity endorsements on brand image.
5.3. Conclusion
Nowadays ads are seen as playing a tricky and cruel part in the developing of brands,
pursuing to make over customers into the personification of brand identity. For the
effectiveness of the brand the marketing department of the company should be expert in
53
their fields. Only those ads or those endorsements affect the customers which are fit with
the product. Findings shows that there is a positive influence of celebrity endorsements
over the customers and if there is a celebrity as compare to any typical consumer in ad so,
the customers purchasing intension is more. It is also a successful strategy in banking
industry to endorse a product through celebrities. If there is a congruency between the
brand and celebrity so, this match aspire the customers. If a customer compare two
similar items, he prefer that item which is endorsed by a celebrity as compare to an
ordinary one. To create an association with the favorite celebrity the customers use that
endorsed brand. From the above findings the researcher can concluded that there is an
impact of celebrities on HBL image. As concern of HBL, HBL also used celebrities in
their ads to attract the viewers. In this research there is only two variables one is
dependent and other is independent. A celebrity endorsement known as independent
variable and brand image is dependent variable. Hence, it is concluded that independent
variable do impact the dependent variable. And the research is conducted in a right
direction. H1 is accepted and Ho is rejected. H1 shows that there is an impact of celebrity
endorsements on brand image while Ho shows that there is no impact of celebrity
endorsements on brand image.
5.4. Recommendation
It can be recommended that
 The selection of celebrity should be according to the theme of ad.

54
 There should be congruency between the celebrity and brand/product.
 To select that celebrity who captures the targeted audience.
 The selection of celebrity should be according to that culture where the
organization wants to represent the ad.
 The celebrity should be a brand user. If a celebrity is a brand user, it puts of
positive impact on the brand image in the mind of consumers.
 It is very important that if the celebrity is endorsing any product so, the features of
that product must be in product.
 There is an impact of celebrity endorsements on brand image so; the organization
should be very alert, when choosing the celebrity because this selection is like a
double edged sword.
5.5. Future Research Guidelines
The study conducted on the impact of celebrity endorsements on brand image of HBL
in Lahore. Therefore, there is a great room for adding more things in it. For future
research following are the guidelines:
 For further research the missing variables should be considered
 For the generalization of results, the sample size should be enlarged.
 This is a Lahore based research so; the future researchers can include the all
provinces.
 This study is just based on Habib Bank Limited; in future the researchers can
consider the different banks.

55
 This study has covered the responses of HBL customers, so in future the
researchers can also get the responses of the other bank’s customers.
 In future the researchers can also research the impact of non-celebrity
endorsements on the brand image of HBL.

56
References
 Abkowitz, A. (2014). China Says Celebs Have to Actually Try the Products They
Endorse. The Wall Street Journal China.
 Agrawal, J., & A. Kamakura, W. (1995). The Economic Worth of Celebrity
Endorsers: An Event Study Analysis,. Journal of Marketing, 59(3), 56-62.
 A. Kamins, M., & Gupta, K. (1994). Congruence between spokesperson and
product type: A matchup hypothesis perspective. Psychology & Marketing,11(6).
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64
APPENDICES
This questionnaire is used in this research to collect the data.
Dear Sir/Madam
Nowadays Celebrities have become famous and because of this fame they endorse many
products. Celebrity is well known and popular because of his/her work.
This questionnaire is designed to obtain information for an academic research as part of
an effort to investigate The Impact of Celebrity Endorsements on Brand Image: A
case study of HBL
This information provided by you will be confidential and will be used for academic and
analytical purpose only

65
Demographics
Please check the appropriate responses
 Gender i. Male ii. Female
 Marital status i. Single ii. Married iii. Divorced
 Income i. Nil
ii. Rs.25000-------or less iii. Rs.26000-------Rs.50000
iv. Rs.51000-------Rs.75000 v. Rs.76000-------Rs.100000
vi. Rs.101000-----Rs.125000 vii. Rs.126000-----or more
 Age in Years
i. 18------29 ii. 30-----39
iii. 40------49 iv. 50-----59
v. 60------69 vi. 70 or above
 Qualification
i. Below high school ii.Bachelor's Degree
iii. High school or equivalency iv.Graduate of professional degree
v. Associated Degree vi.Other: Please Specify ______

66
I. Physical Attractiveness, Trustworthiness, and Expertise
On a scale of 1 to 7, please check the number that best reflects your feelings towards the
celebrity's PHYSICAL ATTRACTIVENESS.
1. Unattractive 1 2 3 4 5 6 7 Attractive
2. Not Classy 1 2 3 4 5 6 7 Classy
3. Ugly 1 2 3 4 5 6 7 Beautiful
4. Plain 1 2 3 4 5 6 7 Elegant
celebrity’s TRUSTWORTHINESS.
1. Undependable 1 2 3 4 5 6 7 Dependable
2. Dishonest 1 2 3 4 5 6 7 Honest
3. Unreliable 1 2 3 4 5 6 7 Reliable
4. Insincere 1 2 3 4 5 6 7 Sincere
5. Untrustworthy 1 2 3 4 5 6 7 Trustworthy
celebrity's EXPERTISE of the brand they are wearing.
1. Not an Expert 1 2 3 4 5 6 7 an Expert
2. Inexperienced 1 2 3 4 5 6 7 Experienced
67
3. Unknowledgeable 1 2 3 4 5 6 7 Knowledgeable
4. Unqualified 1 2 3 4 5 6 7 Qualified
5. Unskilled 1 2 3 4 5 6 7 Skilled
II.Product/Brand Congruency
following questions pertaining to the CONGRUENCY (harmony/compatibility)
BETWEEN THE CELEBRITY AND THE BRAND.
1. How familiar are you with the celebrity who appeared inHBL ad?
Unfamiliar 1 2 3 4 5 6 7 Familiar
2. How congruent is the image of the celebrity with the brand they are endorsing?
Incongruent 1 2 3 4 5 6 7 Congruent
3. Do you think this brand is a good fit for celebrity to endorse?
Disagree 1 2 3 4 5 6 7 Agree
4. How believable is celebrity endorsing this brand?
Unbelievable 1 2 3 4 5 6 7 Believable
5. Do you believe this celebrity would use this product?
Unbelievable 1 2 3 4 5 6 7 Believable
68
III. Attitude toward the Brand/Brand Image
On a scale of 1 to 7 please check the number that best reflects your ATTITUDE
TOWARD THE BRAND
1. Bad 1 2 3 4 5 6 7 Good
2. Unpleasant 1 2 3 4 5 6 7 Pleasant
3. Dislike 1 2 3 4 5 6 7 Like
4. Poor Quality 1 2 3 4 5 6 7 Good Quality
5. Unsatisfactory 1 2 3 4 5 6 7 Satisfactory

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Impact of Celebrities Endorsements on Brand Image

known as celebrities. Because of unique lifestyle, some extraordinary achievements they

Mustafa), actresses (Reema, Saima, Saba Qamar, Ayesha Omer),directors (Danish

advertisement (marcoms), is useful, because when celebrities are depicted in marcoms,

model for the selection of the celebrity in the ads.

>Celebrity-product match >Celebrity-target audience match

>Celebrity popularity >Consumer influencing advertisement

>Celebrity values > Celebrity regional appeal factors

>Celebrity physical attractiveness > Brand image formation capability

>Celebrity controversy risk > Multiple endorsements

>Cost of acquiring the celebrity >Fit with advertising idea

>Celebrity availability >Celebrity should be brand user

>Previous endorsements >Use of promotional medium

>Interest of endorser >Endorsement management team

>Unique idea of promotion >Celebrity Credibility

1.2. STATEMENT OF THE PROBLEM

endorsements on brand image in HBL.”

1.3. SIGNIFICANCE OF THE STUDY

To develop or create an ad is a tough job. The importance of research is to access the

1.4. OBJECTIVE OF STUDY

The objectives of study are:

 To see the relation between the celebrity and HBL

 To identify the impact of celebrity on HBL

 To identify the impact of HBL on celebrity

 To explore the psychological effect of celebrity endorsements

 To reveal the positive impact of celebrity endorsements on HBL image

1.5. RESEARCH QUESTIONS

 Is there is any positive relationship between the celebrity and HBL?

 What is the impact of celebrity on HBL?

 What is the impact of HBL on celebrity?

 Are HBL’s customers psychologically accepted the endorsements of celebrities?

 Is celebrity endorsement adds positivity on HBL image?

employees of the PU (old and new) campuses.

Celebrity endorsement is our independent variable while brand image (HBL) is

dependent variable. Researchers distributed questionnaire among the customers of HBL

represented for statistical analysis.

 Time constrain is the main limitation.

results. These results are just applicable on HBL.

 Small sample size.

 Just considered the inspirational celebrities

 Data based on limited branches of HBL

1.10. KEY TERMS

ads of the banks.

Actors, actresses, singers, directors, producers, scholars, models, writers, political

question on the celebrity’s trustworthiness and credibility.

 An individual or organization of repute is used to endorse the products, services

and activities of another organization.

 Celebrity endorsement advertising has been recognized as a ubiquitous feature of

modern marketing. McCracken (1989)

 According to Debiparsad Mukherji Celebrity endorsement is a two edged

According to American Marketing Association “A name, term, design, symbol, or any

reason of bad will of a company.

image (Debevec , 1986).

 singers (e.g. Ali Zafar, Hasan Jhangir, Nazai Hassan)

 Politicians (e.g. Mian Nawaz Sharif, Chaudhry ShujaatHussain,Shaukat Aziz) etc.

A celebrity becomes a spokesperson of any brand through this process (Schlecht,

Fig: 2.1 a process of celebrity to spokesperson

The Economic Worth of Celebrity Endorsers

10% television advertisements are based on celebrity endorsements (P.Sherman, 1985).

When a celebrity is involved in an undesirable event then a company faces disaster

on the status of the celebrity and remuneration. For examples:

 Faisal Qureshi is top famous actor he charges 3or 4 million.

 Sajal Ali is also famous actress she charges 15 to 20 per drama.