Effect of Celebrity Endorsement on Brand Loyalty: A Review

Chapter I
Abstract:
The marketing world has become a world of competition where everyone is striving for one
thing, grabbing more customers, and retaining them. This is possible by celebrity endorsement
which turn increases the brand loyalty. The aim of this review study was to find out about the
factors that influence brand loyalty because of the celebrity endorsement. The factors which we
found had the most impact on the brand loyalty were trustworthiness, effectiveness, expertise,
and congruency. All these factors of celebrity endorsement proved to have a significant and a
positive relationship with brand loyalty but the degree to which they affect brand loyalty may
differ based on the industry or region. It is a general study and a review which doesn’t focus on a
specific industry or product like appliances, sportswear, gadgets.

Introduction:
Marketing is a platform which is used to convey or communicate with customers or end users
using the different tools and techniques such as social media marketing, digital marketing,
advertisement, sponsorship and so on. One of the advertisement techniques used by the
marketers to increase their loyal customer base is the Celebrity Endorsement. The celebrity must
be someone who has a positive influence over the audience and has a large fan following.
Celebrity must be carefully chosen by the company or the organization because that celebrity
will be the face of the brand. When a celebrity endorses any product or brand that celebrity
himself becomes the face of that brand and people will generate a perception about the brand
associated with the celebrity. The businesses and firms must be careful while selecting a
celebrity whose characteristics should match the product. Whenever that endorsement will be run
on any medium be it social media sites, tv commercials, banners etc. that celebrity will be the
face and people will start to have an affection with that brand because of the celebrity’s influence
and affection of people towards him/her. For example, Cristiano Ronaldo and Lebron James are
two only persons in the world to whom Nike offered a lifetime contract of $1 Billion. Both
Ronaldo and Lebron have a huge following and can boost sales or attract many people due to
their huge fan following and positive influence. The firm’s product and the celebrity
characteristics and field both matches the product and hence will help in grabbing more attention
than simple advertisement.
The organization’s first and foremost strategy is to find the core values that will satisfy the
customer and builds a trust among the customers. To gain a competitive advantage over the
competitors is the main goal of firm but to sustain that competitive edge and to remain consistent
and persistent is the main challenge. To gain the trust of the customer is the hardest part in the
market’s point of view and to present your product in a way that builds a brand loyalty which
forces the customers to repurchase the product and give preference to firm’s product every time
the customer shops that’s what really counts. The Trust helps in creating a bond between the
brand and the customer which results in brand loyalty. It becomes very difficult for a marketer to
position their product in the mind of the customer, especially in this era of high competition and
comparisons where there are many products offering the same benefits. Corporates have now
increased their budget for advertisement, loyalty initiatives and are offering lump sum amount to
celebrities just to be the face of brand.

Building the brand loyalty among the customers is hard and maintaining and sustaining it is the
hardest part. Loyal customers are the one who are the consistent and regular user of the product,
so instead of focusing on the large customer base, the firm should focus on the existing one. 80%
of the business comes with the 20% of customer (Pareto Principle). Brand loyalty of a brand
enables them to have a edge while selling their products because of the loyalty of the customers
with the brand supported with the celebrity endorsement as they will not consider the cost factor
while buying. Their positive word of mouth can act as a marketing technique that another
methods can’t match. Firms should first consider about loyalty and the profit will follow forth.

In this review research paper, we will try to find and determine that how celebrity endorsement
affect the brand loyalty and to find the relationship between celebrity endorsement and brand
loyalty. We will also try to find the gaps and provide some suggestions or recommendations in
this area for further studies. It is a general study and a review which doesn’t focus on a specific
industry or product like appliances, sportswear, gadgets.

The majority of the literature work supports the narrative that the celebrity endorsement has a
positive impact on the brand loyalty and only few studies negate the idea or doesn’t support the
hypothesis that celebrity endorsement has a positive impact on brand loyalty.
Significance of Study:
Marketing today has become a very complex process and keeps on expanding. The newer
products are entering the market the more competitors there are. So, to keep going in this fast-
paced market and technological advancement, marketers need to find ways from which they can
grab the attention of the customer and achieve brand loyalty. The celebrity endorsement one
method from which the firm or the brand can achieve brand loyalty. The main of this study was
to have a in depth knowledge about how celebrity endorsement influence and impact brand
loyalty. There has been much research done in this area but were focused on the specific
industry. To know about what areas needs to be investigated and what factors of celebrity
influence brand loyalty. To provide a much better understanding of the literature to the marketers
which they can use to choose the celebrity to endorse their product.

Limitation:
There was limitation in this study which included the focus of research papers on the specific
industries. The sample size of the research papers was very small and were not able to take them
as an accurate and correct results. The small sample size doesn’t represent the whole market or a
region. More extensive research needs to be done with larger sample size to get a clear idea. The
celebrity’s attributes were focused only, and the drivers of the brand loyalty were vastly ignored.
It looked like a one-way literature which only focused on celebrity’s point and most of the part
ignored brand loyalty’s factors. It should be two-way research and describing the effects of both
sides.
Literature Review:

1. Celebrity Endorsement:

Celebrity Endorsement is a form of a brand campaign that involves a well-known person using
their fame to help and promote a product or service (Gupta, 2021). Celebrities are the individual
who enjoy a great recognition and fame among the public who possess certain characteristics
such as trustworthiness and attractiveness. Grabbing the attention of the audience becomes
through celebrity endorsement due to their positive influence on public and advertisements. The
likeability and credibility of the ads also increases with the addition of a celebrity in the ads.

Celebrity endorsement catches the customer’s attention better and more frequently than a simple
endorsement which features unknown actors or new comers. Words of support or calling for a
action from a loved celebrity will have more power than a politician’s word whose credibility
may not be as high as the celebrity has. Celebrity endorsement have a huge impact on the
customer’s mind and if a celebrity is using a specific product and frequently endorses that
product than that brand will have a positive response from the customers in terms of sales. It has
been observed that ads that involve celebrities often grab more attention irrespective of the
customer’s favourite celebrity, featuring a celebrity in a advertisement has proved to be way
more effective way than a non-celebrity endorsement (Kisan, 2020).

Many studies have revealed that consumer perception differs for products endorsed by the
celebrity (Rani, 2017) and have a positive effect on products or brands endorsed by the celebrity.
As we discussed earlier that the selection of the celebrity is very important task and should done
carefully as the company or brand associates the product with the celebrity and their actions will
define their product’s success. The celebrity’s traits or profession must match the product’s
benefits or use, otherwise it will have a negative impact on the audience and the message
conveyed in the ads will be lost.
2. Factors affecting celebrity endorsement:

Credibility of the celebrity also depends much because they are the one who are influencing the
people and their credibility matters a lot. Credibility means how the customer or people see the
spokesperson as having skills, experience and trust to give true and objective information
(Gupta, 2021). Credibility is used develop a celebrity’s or communicator’s positive
characteristics that will affect or influence the receiver’s acceptance of a message.

Source attractiveness is related to a celebrity’s physical attributes such as familiarity, similarity

and likeability. The similarity means that’s the how much resemblance or similarity the customer
and celebrity has between them. Familiarity means the knowledge of the celebrity through
exposure and likeability means customer’s affection towards the celebrity based on appearance,
behaviour or physical traits.

Expertise in the product is another factor that affect the celebrity endorsement in a way that the
customer considers the celebrity a reliable and credible source. The celebrity must have a
expertise in that product or field. The more expeertise the celebrities will have in their fields, the
more effective the endorsenment will be (FADEYI, 2020).

Source attractiveness, credibility and expertise have proved to be effective on influencing the
buying behaviour but it can have a negative impact on consumer buying behaviour if there is a
multi-product endorsement. But if we see the overall picture, we find that all these factors have a
positive impact on creating a brand loyalty among customers (Qureshi, 2017). Since the modern
world businesses faces a lot of the competition in the market they have to adopt some unique
ways and find influencial celebrities to endorse their product. The celebrity endorsement has a
positive impact on brand loyalty.

3. Brand Loyalty:

According to the (Mellens, 1996), Loyalty is a biased response towards a brand or product
expressed over a period of time and is defined by the purchase pattern of a decision making unit
which may be an individual, a household or a firm. Brand loyalty is a consumer’s choice or
preference to repurchase the product or a particular brand. It usually occurs when the brand
provides the value and benefit the consumer is searching for and the quality offered by the brand
at the right price. This pattern will eventually lead to a repurchase of the product and customer
sustainability which in turn creates the brand loyalty. Therefore, brand loyalty refers to the
customer’s attachment with the brand and the customer preference. The brand loyalty is not
achieved in a short time but rather it is a long process that requires the constant repurchase of the
product and the trust which is built over time as a result of long usage of product (Faridah Ishak,
2020).

Brand loyalty basically defines a strong and committed relationship between the brand and the
customer. Customer loyalty is created and developed based on a strong factor which is Trust.
There is a saying that “ Trust is the most expensive thing in the world”. So the trust element is
very important if a brand wants to achieve brand loyalty. It is not always that the customer is
loyal to the brand only because a brand or a company has many products and the customer only
like few or one or two. Although, those who are brand loyal tend to search store to store and try
to find the specific product of that brand. For example, a customer who is loyal customer of
Colgate and want to buy one. He goes to a first store and doesn’t find one, but there are other
substitute as well, since the customer is loyal, he will go to another store until he finds one.
Brand loyalty is important for a brand as it helps in retaining more customers and requires less
marketing resources as compared to new products or new brands. Brand loyalty is also a very
powerful tool in marketing as there is very high competition and more and more competitors, it
can give the brand/company a competitive edge (Gupta, 2021).

4. Types of Brand Loyalty:

Brand loyalty is categorized into 4 dimensions based on the different buying behaviour of the
customers:

 No Loyalty: This is the loyalty in which the customer doesn’t buy the product and have
no information neither about the product nor the brand. There is also no celebrity
endorsement or any social influence to get them buy or try the brand.
 Coveyous Loyalty: This is the loyalty in which the customer doesn’t buy the product but
have an emotional and social attachment with the product or brand. The customer shows
a high level of commitment towards the brand and have information about the product.
  Inertia Loyalty: This is the loyalty in which customers repurchases the product. There is
no celebrity endorsement or social influence bacause there is no substitute or alternative
of the product and the customer is forced to buy that product.
 Premium Loyalty: This is the brand loyalty in which the customer shows a very high
level of commitment and attachment towards the brand. The customer’s loyalty level here
is very high because of the repeated purchase and high level of the celebrity endorsement
or social influence. This is the loyalty which many companies or brands seek to achieve
in the market because it builds their credibility among the customers and trust among
them.

Since we have learned about the types of brand loyalty, there are another important factors which
affects the brand loyalty and should be taken into account at the time of decision making. The
key factors that influence the repeat purchase and brand switchers among the customers include
product attributes, aftersale services, marketing capabilities, perceived quality and brand
popularity (Lin, 2000).

5. Factors affecting Brand Loyalty:

Research shows that factors that affect the brand loyalty of the fast-moving consumer goods
include brand benefits, trust, brand selection, brand symposium and price consciousness but the
degree of influence varies among the factors (Ramesh Kumar, 2005).

Another research finds that the brand loyalty of the bath soaps include the following factors:
product quality, price, advertisements, repurchase and health benefits and the demographic
factors including gender. Brand satisfaction is found to be the most infuencing factor which is
followed by the brand equity, brand value whereas the brand trust found to be the most least
influencing factor in the chocolate market (Anna Kuikka, 2012).

6. Celebrity Endorsement and Brand Loyalty:

“Attention is needed before affection or attachment” – celebrities in the era of social media are
getting more attention and fame. Their followers can easily follow them on social media and can
engage with them through live video session, giveaways etc. Different brands approach
celebrities and pay them for endorsing their product with a heavy amount. Since celebrities have
a positive and influential impact on the brand loyalty, the customer watch the ads or the message
very carefully than the ads or the message containing no celebrity. For example, Pepsi ads
features Messi and Salah in their ads and their ads are watched by over millions just by the
appearance of two big names of the Football. It makes their brand loyalty even stronger when
such type of celebrities features in ads who have a very large fan following and good credibility.
Accroding to a research, 59% of the people will hardly or even will not switch the brands just
because their favourite celebrity is endorsing it, yes they may have some information or may be
willing to buy, but only those people will buy who have a need or want for it. Hence we can say
that the measurement of the brand loyalty doesn’t depend on a single parameter i.e. celebrity
endorsement, there are other factors as well which needs to be found out (Gupta, 2021).
Discussion and Findings:

Analysis of the study:

Study on the celebrity endorsement’s effect on the brand loyalty has been done but little study
has been done on the relationship between the celebrity endorsement and brand loyalty
specifically. What factors drive the brand loyalty and what attributes of the celebrity influence
brand loyalty. Some of the studies which we have found in the literature in which both celebrity
endorsement and brand loyalty has been used and their relationship and other factors were
studied has been included in this review paper. Since this is a general study and doesn’t focus on
a specific industry or product and we will be looking the effect, so only those research papers
were chosen which are closely related with our topic.

A study on the impact of celebrity endorsement on brand loyalty (Ikegwuru Mac-Kingsley,

2016) in which quantitative approach was used and data was analyzed using descriptive
statistics. The responses were collected from the consumers to get a more indepth understanding.
The paper used 3 variables Trustworthiness, Expertise and Attractiveness and analyzed their
effect on brand loyalty. The findings of the study concluded that the all three variables had a
significant impact on the brand loyalty and enhanced the relationship between them.

Table 2.1: Summary of Decisions Reached on Test of Hypotheses

s/n Statement of hypotheses R Direction Decision Conclusion

H1 Trustworthiness positively Influence 0.612** +ve Accept Significant
Brand Loyalty
H2 Expertise Positively Influence Brand 0.630** +ve Accept Significant
Loyalty
H3 Attractiveness Positively influence 0.741 +ve Accept Significant
Brand Loyalty

Mac-Kingsley stated that the influence of the trustworthiness on brand loyalty showed a (r) =
0.612, hence proving the relationship between the trustworthiness and brand loyalty. This
implied that the customers will a show a high level of brand loyal which is endorsed by the
celebrity who has a high credibility(trustworthiness) and they would continue to be loyal to the
brand. This finding was consistent with the findings of the Mowen and Stephen (John C. Mowen,
1981). However, the influence of the expertise on the brand loyalty showed a (r) = .630 which
more than the trustworthiness influence and hence proving the relationship between the celebrity
endorsement and the brand loyalty. This implies that customers preferred expert celebrity more
who has an expertise in the product which he is endorsing. The high level of the expertise of the
celebrity had a significant impact for developing a brand loyalty. This finding was in part with
the findings of the (Ohanian, 1990). The third and the last variable attractiveness which was used
in the study had the highest (r) = 0.74 and showed a strong relationship between the celebrity
endorsement and building a brand loyalty. The study found and concluded that among the 3
variables which are trustworthiness, expertise and attractiveness, the most outstaning variable
showed the highest level of building brand loyalty. The study concluded that the more a celebrity
was attractive, the more it will have a chance to create a brand loyalty. This continious process
will lead to the brand loyalty.

The findings of this study clearly showed the relationship between the 3 variables i.e,
trustworthiness, expertise and attractiveness and among which attractiveness was the strongest of
all variables for creating and building a brand loyalty. The findings of this study was unique for
the marketing sectors and other business and firms who want to build a brand loyalty among
their customers. This stidy provided a general view and some simple characteristics about which
celebrity and with what traits they should choose for endorsement.

This study also had some limitations as it only targeted a soft drink industry and was not intented
to be the representative of the entire population. It was conducted in Nigeria and the culture and
values may differ in different countries. The accuracy of this study is limited and its results
cannot be used as a general theory to explain brand loyalty (Ikegwuru Mac-Kingsley, 2016).

From the above study’s limitation we observed that the attributes may vary across different
cultures or regions (Ikegwuru Mac-Kingsley, 2016). Another study was conducted in India by
(Gupta, 2021) in which they used a self structured questionnaire and empirical field study was
conducted to determine the celebrity endorsement significance on the brand loyalty. In his study
Gupta he used the variables Credibility, Attractiveness, Effectiveness and Congruency to
determine their effect on brand pleasure, brand arousal and brand dominance respectively and
developed 12 hypothesis which were all rejected. The results of the hypothesis are as follows:

Table 2.2: One-Sample t-Test

Test Value = 3
95%
Sig. Confidence
Hypothesis t df (2tailed Mean Interval of the Decision
Differenc Difference
 ) e Lowe Upper
r
Ho1: Celebrity credibility 4.04 6 0.000 0.30376 0.153 0.454 Ho1
does not create Brand 2 1 5 Rejected
Pleasure
Ho2: Celebrity credibility 6.46 6 0.000 0.51859 0.358 0.679 Ho2
does not create Brand 6 1 2 Rejected
arousal.
Ho3: Celebrity credibility 3.88 6 0.000 0.32527 0.157 0.492 Ho3
does notcreate Brand 1 6 9 Rejected
dominance.
Ho4: Celebrity 6.51 6 0.000 0.52823 0.366 0.690 Ho4
attractiveness does not 2 1 4 Rejected
create Brand pleasure.
Ho5: Celebrity 7.41 6 0.000 0.67473 0.492 0.856 Ho5
attractiveness 1 7 8 Rejected
does not create
Brand arousal.
Ho6: Celebrity 5.06 6 0.000 0.45968 0.278 0.641 Ho6
attractiveness
does not create Brand 5 1 2 1 Rejected
dominance.
Ho7: Congruency does not 5.83 6 0.000 0.49597 0.326 0.665 Ho7
create 6 1 9 Rejected
Brand pleasure.
Ho8: Congruency does not 6.17 6 0.000 0.50269 0.339 0.665 Ho8
create 3 1 8 5 Rejected
Brand arousal.
Ho9: Congruency does not 3.88 6 0.000 0.32527 0.157 0.492 Ho9
create 1 6 9 Rejected
 Brand dominance.
Ho10: Celebrity 6.03 6 0.000 0.52957 0.354 0.705 Ho10
effectiveness 7 1 2 Rejected
does not create
Brand pleasure.

In his study (Gupta, 2021) found that the credibility of a celebrity endorsing a product or a brand
had an positive influence on the brand pleasure, brand arousal and brand dominance. He stated
that the credibility of the celebrity which is trustworthiness in other words have a significant
impact which allows the customers to trust the brand because of the high credibility of the
celebrity in the market or in the society which is consistent with the findings of the (Ikegwuru
Mac-Kingsley, 2016). The credibility of the celebrity also allows the brand to gain a distinct
position in the market and achieve a dominant position above their competitors. The perosnality
and atttractiveness of the celebrity also proved to be the major factors which had a positive
impact on the brand arousal, pleasure and dominance. The attractiveness of a celebrity helps in
making a dominant position in the market and also proved to be effective in influencing the
buying behaviour of the customer. The congruency of a celebrity also helps in building a good
brand image. If a celebrity is chosen rightly whose characteristics and behaviour matches the
brand characteristics, than it can lead to brand arousal, brand pleasure and brand dominance. It
helps the brand to get a distinctive recognition in the market and dominating over competitors if
the positive mapping has been done successfully. The celebrity effectiveness also has a positive
impact on creating a interest in the brand and if the endorsement is conveyed correctly and
consistently then it will create brand pleasure.

A celebrity doesn’t always bring good to the brand until and unless the celebrity falls in any
controversy or commits a act on either social or personal life. If a celebrity falls in any
controversy the effect can be opposite as what found in the study. It will have a negative impact
on the brand image and may also lead to boycott of the product or cancelling the association of
that celebrity with the brand. Whereas the positive image of the celebrity creates a sense of
curiosity among the customers towards a brand and also helps in retaining the existing
customers.

According to the (Kisan, 2020), celebrity endorsement have a significant impact on the both the
ad perception and brand loyalty for fast-moving consumer goods. In this study a questionnaire
was used including the 3 variables i.e. trustworthiness, attractivness, expertise and celebrity-
brand match-up the respondents were asked to rate them on a scale of least likely to most likely.
The study used demographic variables including gender, occupation, age and income. We will
focus on the part of study that focues on brand loyalty and celebrity endorsement. In her study,
she found that there is an association between the celebrity endorsement and the attitude towards
the brand. Hence it proved that the celebrity endorsement incorporates a positive attititude
towards a brand which helps it to stand in a dominant position in the market. The intense
competition in the market and the aggressive advertising strategies adopted by the competitors
makes it difficult for the companies or brand to survive in the market, so the brands have to come
up with a unique idea and present their products in a better and more emphasized manner. They
have to adopt ways to grab the audience attention and that’s what celebrity endorsement
provides, the attention the people needs and the the brand loyalty the brand or the company
strives for in the market.

She also found that the occupation of the customers also has a considerable impact on the
attitude towards the brand. The consumers usually develop a positive or negative attitude about a
product but when that product is endorsed by a celebrity who has a significant level of
credubility, attractiveness and expertise and that product relates to the occupation of the
customers, than that product certainly will have a positive attitude towards that brand and they
will more likely be to purchase that product.

The study concluded that many factors can influence the brand loyalty and the consumer
perception but the most important factor which affects is the gender of the consumer because the
consumer generates a different perception for different endorsement. For example, if it was a
about a facewash or face cream, then the females will develop a positive attitude towards that
brand than the men who doesn’t use the facewash as much as women. Similarly, the brand
loyalty was in part connected with the occupation. Some consumers may choose or go for the
high priced FMCG while the other may go for low priced FMCG.
(Kisan, 2020) study has its limitations also as it only contains the responses of the 200
respondents and was conducted in India, however this research again is limited to a specific
country and to a specific industry which is fast-moving consumer goods. Moreover, the
perception also changes over time and the results may vary over time. Thus, a constant research
needs to be done.

In another study by (FADEYI, 2020), which used the cross sectional survey research and sample
size of 1200 was chosen among the telecom industry to find the impact of celebrity endorsement
on brand loyalty. The study aimed to study the significant relationship between celebrity
expertise and brand loyalty and to find out does multi celebrity endorsement has a considerable
impact on the relationship between the celebrity expertise and brand loyalty in telecomn
industry.

In the study it was found that the celebrity expertise and brand loyalty has a considerbale positive
relationship with the score of (r) = 0.558. This result interpreted by the Fadeyi states that the a
improved celebrity expertise does effect the brand loyalty positively and increase in the celebrity
expertise led to an increased brand loyalty among the telecom industry. The more the celebrity
has an expertise in the product he is endorsing the more the brand loyalty will be. Take the
example of a famous bodybuilder who connects with his followers from instagram by making
videos of his gym routine and the products he uses and endorses. Surely the gym products he
endorses will have a high level of brand loyalty because the celebrity himself is using the product
and has an expertise in that field. Thus, the credibility factor here also plays a role combined
with the expertise which in turn leads to the brand loyalty.

The multiple celebrity endorsement used in this study was unique and very helpful for the future
researchers. In this study it was found that multiple celebrity endorsement played a huge role and
had a much bigger impact than a single celebrity endorsement. The first model showed that the
celebrity expertise had an influence on the brand loyalty whereas the second model which
consisted of multiple celebrity endorsement found that the relationship between the celebrity
expertise and the brand loyalty increased by 1.6 % indicating that the multiple celebrity
endorsement improved the relationship between the celebrity endorsement and the brand loyalty.
This implies that the brands must opt for multiple celebrity endorsement to have higher level of
the brand loyalty. For example, Pepsi did the same thing in their ads. Previously they opted for
Messi in their ads and the brand was to some extent had an increased brand loyalty. They also
added another celebrity which is Salah, this multiple celebrity endorsement made their brand
loyalty even higher thus targeting those customers who are fan of Muhammad Salah.

Another research paper which was conducted in the China (The investigation of a professional
athlete’s endorsement deal, and other drivers of brand loyalty in the sports apparel sector, 2020)
to find a link between the brand loyalty and celebrity endorsements and to examine the drivers of
the brand loyalty and their importance in this industry. The quantative research methodology was
used and online questionnaire was conducted. However the results in this study were surprising
and contradicting the results of the previous research. The study found no considerable
correlation between the celebrity endorsement and brand loyalty. In this study they used a much
different approach than others, rather asking the respondents that celebrity endorsement
influenced their loyalty towards that brand or not they changed the questions and dug more
deeper and focused on the drivers of the brand loyalty. It was found that the respondents looked
at the price and quality as the most influencing factor for sports apparel brand. Celebrity
endorsements was selected by very few respondents.

Another independent study (Wei, 2020) which was based on a quantitative approach and 101
respondents were included which were followers of the Kobe Bryant. The research used source
credibility of attractiveness, competence, trustworthiness, tie strength and homo geneity in
relation to brand perception and brand loyalty. The research found that the source credibility of
attractiveness had a positive and significant relationship between the brand perception and brand
loyalty. However, the correlation coefficient was higher between the attractiveness and the brand
loyalty (r) = 0.636 than attractiveness and brand perception (r) = 0.592 . Same was in the case of
competence (expertise) which had a much larger impact on the brand loyalty tha brand
perception. Trustworthiness showed that no significant relationship with the brand loyalty was
observed whereas Homogeneity showed a positive relationship with the brand loyalty. This study
also proves the strong relationship of a celebrity endorsement with a brand loyalty. This shows
that how much a celebrity endorsement is important in today’s world. Loyalty is a big term and
achieving that and for business from customers, it is a big achievement. Nike has done the same
by signing lifetime contract with Cristiano Ronaldo and Lebron James both which are the best in
their field and has a huge fan following.
There were also limitations of this study which included only the chinese students. The
questionnaire was online due to the Covid-19 and the time to collect the data was large.
Moreover, The respondents were only 101 and those 101 cannot define all Chinese people’s
view.

Conclusion:
“Loyalty comes at a price” and this price is the celebrity endorsement. Celebrities have a power
of influence and this power can be used by the brands to develop a brand loyalty. Today, the
hardest part for the marketers and the brand is retaining the customer as there are a lot of options
and substitute available in the market. The marketer needs to think unique and out of box and try
something new to retain customers. Celebrity endorsement is that new tool which will help to
create brand loyalty and in turn help in retaining customers.

In this review paper we have studied the literature and found that the most common factors that
of celebrity endorsement which influence brand loyalty source credibility of attractiveness,
expertise, trustworthiness, and congruency. Trustworthiness of the celebrity was proved to be an
important factor to enhance the brand loyalty. Source expertise was also found to be most
effective for enhancing the brand loyalty and so as effectiveness and congruency. These were
factors that were mostly repeated in the research papers and literature and have proven results
that they influence the relationship between the celebrity endorsement and brand loyalty. This
study was aimed at finding the right mix which would help the firms or brands to enhance their
brand loyalty and find out the factors which makes this relationship stronger.

Although not all the studies support the idea that the source credibility enhances the relationship
of the celebrity endorsement and brand loyalty. Only very few studies have found results of
negative relationship, but the proportion is so low that it doesn’t have a long lasting effect on
damaging the brand loyalty.

This study concludes that the brands must consider the source of attractiveness, effectiveness,
trustworthiness, and congruency as the first thing in mind when going for the celebrity
endorsement as it has been proved from the above discussion that these factors are the most
common for enhancing brand loyalty and has a positive relationship. The other factor the
companies must consider is the characteristics of the celebrity and brand should match with each
other, otherwise it can have a negative impact.

Recommendation For Future Research:

Recommendation for the future researchers include:

 Conduct a longer study which has a longer time frame and will provide more accurate
data.
 Should increase the sample size, because most of the literature provided has been done
with a small sample size
 The questionnaire used in most studies were short and neglected other factors such as
drivers of brand loyalty etc. Those questionnaires should be modified.
 The study done was a general study and hence, a specific industry was not focused, to get
a more in-depth knowledge, a more specific research can be done
 The perception may change over time and so research can be done to add valuable
information in the literature.