MBA (Hons).

Thesis

AN EXPERIMENTAL APPROACH TO STUDY THE EFFECT OF ENDORSER’S

CREDIBILITY & BRAND CREDIBILITY ON CONSUMER-BASED BRAND
EQUITY.
THESIS SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR DEGREE OF MASTERS OF BUSINESS ADMINISTRATION
(MBA)
(HONS) 2 YEARS FOR THE AWARD OF MASTER STUDY DEGREE IN HR
SPECIALIZATION.

SUBMITTED BY;

SYED MUZAMIL SHAH RASHDI 2K18/MBAH/82

INSTITUTE OF BUSINESS ADMINISTRATION UNIVERSITY OF SINDH,

JAMSHORO, SINDH, PAKISTAN

2019
 CERTIFICATE

This is to certify that the work present in this thesis entitled “THE DETERMINANTS OF JOB
SATISFICATION OF LABOURS IN THE FACTORIES OF SITE AREAS KOTRI, SINDH,
PAKISTAN.” has been carried out by Syed Muzamil Rashdi under our supervision of Prof: Dr.
Abdul Sattar Shah. The work is genuine, original and, in our opinion, suitable for submission to the
University of Sindh for the award of degree of M.B.A Hon’s Degree in 2019

SUPERVISOR

Prof: Dr. Abdul Sattar Shah

Professor & Director of Institute of Business Administration
University of Sindh, Jamshoro Pakistan
 ACKNOWLEDGEMENTS

With the blessings of ALLAH the almighty, this research enclosed has reached its stage of

final completion. I extend my heartiest thanks to Prof: Dr. Abdul Sattar Shah for conducting

this research, without his effort and collaboration the research would not have been possible.

I am also thankful to all the colleagues and fellow members without their support this

research would not have been possible. I am equally grateful to University of Sindh

University, Jamshoro for providing me the opportunities to pursue my effort.

ii
 ABSTRACT

Celebrity endorsement is viewed as a powerful special apparatus by advertisers

around the world. One-in-four promotions use celebrity endorsement. Celebrity

endorsement impacts publicizing adequacy, brand acknowledgment, brand review,

buy aims and even buy conduct. In this research has additionally exhibited that

celebrity endorsement prompts a great state of mind toward the supported brand

however does it have esteem as far as creating brand value, the term brand value

alludes to the incremental quality added by a brand name to an item. Surviving

writing underscores the requirement for further research distinguishing promoting

exercises that can construct brand value.

Keyword: Celebrity endorsement, brand acknowledgment, brand review

iii
 Table of Contents

ACKNOWLEDGEMENTS......................................................................................................ii
ABSTRACT............................................................................................................................iii
List of Table............................................................................................................................vi
List of Figures........................................................................................................................vii
CHAPTER1: Introduction........................................................................................................1
1.1 Background of the Study..............................................................................................1
1.2 Problem Statement........................................................................................................5
1.3 Purpose Statement........................................................................................................7
1.4 Research objectives......................................................................................................7
1.5 Research Questions.......................................................................................................7
1.6 Structure of the Study...................................................................................................8
1.7 Definition of Terms......................................................................................................8
CHAPTER 2: Literature Review............................................................................................10
2.1 Theoretical Background..............................................................................................10
2.2 Empirical reviews.......................................................................................................11
CHAPTER 3: Research Method.............................................................................................20
3.1 Theoretical Framework...............................................................................................20
Figure 3.1........................................................................................................................21
3.2 Hypothesis..................................................................................................................21
3.3 Research Strategies.....................................................................................................22
3.4 Target Population........................................................................................................22
3.4.1 Sample Size................................................................................................................22
3.4.2 Sample Techniques.....................................................................................................22
3.5 Statistical Technique...................................................................................................23
Chapter# 4:- Result & Findings:.............................................................................................24
4.1 Descriptive Analysis.....................................................................................................24
4.2 Hypothesis Testing.......................................................................................................24
4.2.1 Reliability Analysis.................................................................................................25
4.2.2 Factor Analysis.......................................................................................................31
4.2.3 Confirmatory Factor Analysis (CFA) Diagram......................................................34
4.2.4 Confirmatory Factor Analysis (CFA) Assessment.................................................35
4.2.5 AMOS Model........................................................................................................36
iv
4.2HypothesisAssessmentSummary.......................................................................................37
Chapter# 5:-Conclusion..........................................................................................................39
5.1 Conclusion........................................................................................................................39
5.2 Discussion........................................................................................................................39
5.3 Policy Implication.............................................................................................................40
5.4 Limitations........................................................................................................................41
5.5 Recommendations and Future Researches........................................................................41
References..............................................................................................................................42
APPENDIX............................................................................................................................46
COVERLETTER....................................................................................................................46
Questionnaire..........................................................................................................................47
Output.....................................................................................................................................50
 List of Table

Table Page
S.No. Table Name
No. Number
1 4.1 Reliability Analysis Celebrity attractiveness 25
2 4.2 Reliability Analysis Celebrity expertise 26
3 4.3 Reliability Analysis Celebrity trustworthiness 27
4 4.4 Reliability Analysis Brand Credibility 28
5 4.5 Reliability Analysis Consumer Equity Brand Awareness 29
6 4.6 Reliability Analysis Brand Association 30
7 4.7 KMO and Bartlett’s Test 31
8 4.8 Total Variance Explained 31-32
9 4.9 Hypothesis Assessment Summary 37-38

vi
 List of Figures

Page
S.No. Figure
Number

1 Figure 3.1: Theoretical Framework 20

2 Figure 4.1: Scree plot 33

3 Figure 4.2: CFA diagram 34

4 Figure 4.3: Path Analysis Final 38

vii
Celebrity Endorsement, brand credibility and Brand Equity 1

CHAPTER 1: Introduction

1.1 Background of the Study

Celebrity endorsement is viewed as a powerful special apparatus by advertisers

around the world. One-in-four promotions use celebrity endorsement. Celebrity

endorsement impacts publicizing adequacy, brand acknowledgment, brand review,

buy aims and even buy conduct. Late research has additionally exhibited that celebrity

endorsement prompts a great state of mind toward the supported brand), however does

it have esteem as far as creating brand value? The term brand value alludes to the

incremental quality added by a brand name to an item. Surviving writing underscores

the requirement for further research distinguishing promoting exercises that can

construct brand value.

It is regularly acknowledged that publicizing is helpful in building brand value

and that representatives may get to be connected with a brand in memory. However,

how does celebrity endorsement lead to changes in brand value? Till (1998) and

McCracken (1989) have proposed that celebrity endorsers can assemble brand value

by making optional affiliations. Seno and Lukas (2007) have recommended that a

celebrity endorser works as a co-brand for the embraced brand bringing about the

production of value for both the supported brand and the embracing celebrity.
Celebrity Endorsement, brand credibility and Brand Equity 2

There is additionally experimental proof to say that celebrity endorsement

produces more prominent review for both the supported brand and the notice.

Research has likewise demonstrated that celebrity endorsement can impact saw item

quality and uniqueness. There is, in any case, restricted comprehension of how the

validity of an endorser might impact the embraced brand's value. Moreover, the

believability motioned by a brand is viewed as essential and is accepted to add to

building brand value by in a roundabout way increasing the value of the brand. Does

the utilization of dependable famous people for endorsement lead to enhancements in

brand validity? Surviving examination does not answer this inquiry either. The act of

sub-marking, whereby a current brand name is joined with another name to enter an

alternate item classification is broadly utilized as a part of commercial ventures, for

example, autos. It is, be that as it may, not clear whether celebrity endorsement would

be pretty much compelling for sub-brands contrasted with their guardian brands.

Obviously, research is expected to observationally look at the relationship between

endorser validity and brand believability and the advancement of purchaser-based

brand value.

Therefore, celebrity endorsement not only increases brand reputation, but from

consumer point-of-view, it helps in increasing the consumer association towards

brand and generates consumer-based equity of brand (Dwivedi, Johnson &

McDonald, 2015). However, quantitative tests in which confirmatory factor analysis,

Celebrity Endorsement, brand credibility and Brand Equity 3

SEM and average variance extracted scores were conducted in order to obtain results.

Based on which, the findings suggested that celebrity endorsements create impact on

brand equity. There is direct impact on the variables, whereas brand connection has

partly mediating effect between endorser celebrity and brand equity. In the future, the

parameters can be changed in order to discuss celebrity endorsement.

Hence, after much discussion on celebrity endorsements and its link to brand

equity, Roy and Bagdare (2015) expanded the scope of brand endorsements towards

brand familiarity. Advertisements, attitude towards brand and purchase intention

where the dependent variables, whereas country of origin of celebrity and country of

origin of brand are independent variables, which were tested based on multivariate

testing and post hoc tests. Findings revealed that brand-celebrity country of origin

creates positive impact on consumer attitude, whereas familiarly have moderate effect

on consumer attitude. The implications suggest that in the future, the study could help

in revealing insight information on brand recall, recognition and familiarity.

According to Ilicic and Webster (2011) celebrity endorsement not only helps

organization in selecting brand but it also helps them in enhancing the brand image.

The endorsement of celebrity in to the brand helps in making the customer attached

towards the brand. The author conducted conceptual study and find out that the

consumers do evaluate brand through advertisement camping’s; thus the

endorsement of celebrity influence positively on their purchasing decision. Wei and

Lu (2013)
Celebrity Endorsement, brand credibility and Brand Equity 4

shared that the most common advertising strategy used by companies is the celebrity

endorsement. Now almost all of the companies are using the celebrity endorsement

concept in to their marketing strategy. Based on this, the author conducted the

conceptual study and finds out that attention interest, desire, memory search, action,

share are the aspects of advertising that influence on consumer and results in decision

making. Knittel and Stango, (2013) investigate the consumer reaction towards

celebrity endorsement. The author conducted qualitative study and find out that the

celebrity endorsement significantly influences on the target market.

Hence, to study brand equity in different perspective and importance of brand

equity besides service-based industry, Ng, Butt, Khong and Ong (2014) conducted

study on understand brand equity of green products. In the framework of the study,

the focus was towards green brand perceived value, brand credibility, green brand

image, green brand equity and perceived quality of brand. The data collection was

done from the consumers who use green electronic products, whereas exploratory

factor analysis and confirmatory factor analysis were conducted in order to examine

the convergence of factors and confirmation of variables manifestation. Results

revealed that perceived quality of brand and its credibility creates significant impact

on creating green brand image, brand equity and perceived value. The future

implications of the study are that conventional branding can be discussed and

compared with the new concept of green branding in order to understand the
Celebrity Endorsement, brand credibility and Brand Equity 5

constructs of each. Previously, Torres, Bijmolt, Tribo and Verhoef (2012) also

conducted study on brand equity and CSR. Quantitative methods were applied

(General Least Square), which revealed that applying CSR practices towards

stakeholders of business creates positive impact on brand equity.

1.2 Problem Statement

In creating brand recognition celebrity endorsement considered to the most

powerful strategy adopted by marketers, which results in advertising effectiveness.

The core success of any business is based on the marketing strategies adopted by them

(Dwivedi and Johnson, 2013). With the increase in consumer demand and market

competition the companies are making efforts in order to use effective promotional

tools. For marketers it is difficult to maintain brand equity. Lin (2015) shared that the

brand equity shows the company ability to add incremental value in the brand. The

celebrity endorsement allows markets to create brand equity, which leads towards

brand recognition.

Chan, Ng and Luk (2013) highlighted that in celebrity endorsement there are

certain issues which are still unclear. There are some positive and negative effects of

endorsement. When any company is endorsing celebrity then the overall brand is

linked with the personality of the celebrity. The celebrity endorsement influence on

the consumer attitude toward brand and it results in their level of involvement. The
Celebrity Endorsement, brand credibility and Brand Equity 6

negative publicity can negatively influence on consumer mind, whereas positive

publicity influence positively. Hence, in order to enhance brand credibility and brand

equity the companies must endorse celebrities that are having approachable

personality (Jaikumar and Sahay, 2015).

The general business problem shows that majority of marketers failed to

understand the need for celebrity endorsement in creating g brand equity. Based on

lack of concern and strategic decision the companies are moving business towards

ambiguity because they are unable to endorse celebrity that are having approachable

personality. The specific business problem shows that how the companies create

consumer-based brand equity through focusing on dimensions such as brand

awareness, brand association, brand loyalty and perceived quality. The justification to

select the topic related to celebrity endorsement is that in creating brand equity and

credibility. Therefore, through studying this concept in Pakistani context the

significance of positive celebrity endorsement in creating brand equity and credibility

can be studies. The aspects such as consumer-based brand equity, endorser credibility

and brand credibility will be investigated through approaching consumers belong from

various age groups.

Celebrity Endorsement, brand credibility and Brand Equity 7

1.3 Purpose Statement

Finding out the brand equity of the different brands is the main purpose of this

study through the celebrity endorsement and the celebrity branding within the context

of the data collection from the consumers based on the Karachi, Pakistan.

1.4 Research Objectives

The main objectives connected with this study are listed down as follows.

1. To measure the impact of credibility of endorser on the credibility of endorsed

brand.

2. To examine the positive impact of the credibility of brand on the consumer

based equity on the endorsed brand.

3. To examine the impact of the credibility of the endorser celebrity on

the consumer based equity of the endorsed brand.

1.5 Research Questions

This planned study intends to supervise the following questions.

1. Does credibility of endorser have an impact on the credibility of the endorsed

brand?

2. Does credibility of brand positively impacted on the consumer based brand

equity on the endorsed brand?

3. Does credibility of endorser celebrity have an impact on the consumer based

brand equity of the endorsed brand?

Celebrity Endorsement, brand credibility and Brand Equity 8

1.6 Structure of the Study

This study has been arranged chapter wise. The study has been

structured into five chapters. In first chapter describes the introduction, which

further sub headings are the background, general problem, specific problem,

purpose, research objective, research question, significance of study and the

scope of study. In Second Chapter is comprises of the literature review which

is further categorized into conceptual, empirical reviews of previous studies

supporting current study, in which impact of planning performance

improvement on complex master production schedule is discussed. In third

chapter consists on research method, which sides the through information

about theoretical framework, hypothesis, research approach, research design,

sampling design, target population, sample size, sample techniques,

instrument and statistical technique. In Fourth Chapter the Result heading

includes three sub headings namely hypothesis assessment summary. Lastly,

conclusion heading includes five sub headings namely conclusion,

discussions, policy implications, limitations and future research

recommendation.

1.7 Definition of Terms

1.7.1 Attractiveness

The attractiveness refers to the endorser’s physical

“

appearance, personality, likeability, and similarity to the receiver, thus to the

perceived social value of the source (Solomon 2002).

1.7.2 Trustworthiness

“ Trustworthiness refers to the honesty, integrity and

believability of an endorser. It depends on target audience perceptions.

Celebrity Endorsement, brand credibility and Brand Equity 9

Advertisers capitalize on the value of trustworthiness by selecting endorsers

who are widely regarded as honest. believable, and dependable (Shimp, 1997).

1.7.3 Expertise

“ Expertise is defined as the extent to which a communicator is

perceived to be a source of valid assertions. It refers to the knowledge,

experience or skills possessed by an endorser (Ohanian, 1991).

1.7.4 Brand Credibility

“ Credible brands enjoy lower information-gathering and

information-processing costs, and lower perceived risk (Erdem and

Swait, 2004).

1.7.5 Consumer Based Brand Equity

Customer-based brand equity is defined as the differential

“

effect of brand knowledge on consumer response to the marketing of

the brand (Starr and Rubinson, 1978).

Celebrity Endorsement, brand credibility and Brand Equity 10

CHAPTER 2: Literature Review

2.1 Theoretical Background

Companies invest large sums of money to align their brands and themselves

with endorsers. Such endorsers are seen as dynamic with both attractive and

likeable qualities (Atkin and Block 1983) and companies plan that these qualities

are transferred to products via marcom activities (Langmeyer and Walker 1991a,

1991b; McCracken 1989; Walker et al. 1992). Furthennore, because of their fame,

celebrities serve not only to create and maintain attention, but also to achieve high

recall rates for marcoms messages in today's highly cluttered environments (Croft,

et al1996; Friedman and Friedman 1979; Kamen, et al. 1975; Kamins, et al. 1989;

Ohanian 1991; O'Mahony and Meenaghan, 1997). Initially, this strategy seems a no-

risk/all-gain situation, but, as with any dynamic marketing communication strategy,

there are potential hazards. Individuals can change, and endorsement relations can

sour. In a sense, celebrity endorsement strategy can be a two-edged sword, which

makes selecting a celebrity endorser from innumerable alternatives in the presence

of potential pitfalls very challenging. Celebrities have been endorsing products

since the late nineteenth century. Such an example from the early days of utilization

involves Queen Victoria in association with Cadbury's Cocoa (Shennan, 1985). The

emergence of cinema was to extend the scope of endorsement as an advertising

technique, even though its present day popularity owes much to the growth of

commercial radio in the 1930s and to commercial television in the1950s

Celebrity Endorsement, brand credibility and Brand Equity 11

(McDonough, 1995). In those days, supply of 'stars' (i.e.potential endorsers) was

limited (Kaikati, 1987). as it was viewed askance that 'stars' should invest their

prestige on the flickering cathode ray tube as mere 'brand presenters'. For this

reason, advertisers were restricted in their search for 'stars' that were exactly right

due to their lack of availability. From the late 1970's, supply of 'stars' has increased

as a result of the deflowering of most 'virgin' celebrities who had previously refused

to cloud their image with endorsements (Thompson 1978). Notably, as the number

of film and television roles has expanded, any perceived shame in commercial

exploitation has faded, which, in tum, allows advertisers greater choice in the

celebrity selection process.

2.2 Empirical Reviews

According to Dwivedi and Johnson (2013) trust and commitment plays a

mediating role in forming relationship between brand equity and celebrity

endorsement. In the study, a trust-commitment framework was developed in which

celebrity endorsement, brand trust, relationship commitment; relationship continuity

and brand equity were the variables. To analyze the factors, Structural Equation

Modeling (SEM) and post hoc single factor testing was conducted, which revealed

that trust and commitment play mediating role on the outcomes of the hypotheses. It

means that it facilitates celebrity endorsement. The future implications of the study
Celebrity Endorsement, brand credibility and Brand Equity 12

suggest that the research model can help in investigating the service industry at global

level.

However, the role of quality plays imperative part in enhancing brand equity as

discussed by Jahanzeb, Fatima and Butt (2013) in their study. The consumer based

equity of brand is build based on the quality of service in which the perceived value

(PV) and corporate credibility (CC) also plays a mediating role. To discuss these

variables, the study was conducted on the customers of various banks located in

Pakistan. However, SEM and confirmatory factor analysis (CFA) were adopted as the

methods of analysis in order to test the hypotheses. Based on this, the findings

revealed that CC and PV intervene in the relationship between brand equity and

service quality. The future implications suggest that besides service quality, there are

various other factors that intervenes the relationship. Moreover, organizations need to

have clear understanding towards consumer based equity of brand and focus on

adopting strategies that can help in enhancing consumer relationship with the brand.

Correspondingly, Elsamen (2015) noted that customer satisfaction and perceived

value both play mediating role in the relationship of online based service quality and

brand equity. Service quality dimensions were tested by forming its link to brand

image and awareness in order to obtain customer loyalty, satisfaction and value.

Exploratory factor analysis was applied, which revealed that certain factors of

SERVQUAL dimensions (fulfillment, responsiveness and efficiency) have positive

Celebrity Endorsement, brand credibility and Brand Equity 13

impact on brand image, equity and awareness, whereas security and reliability have

negative impact.

Hence, innovative brand experiences also helps in enhancing the equity of brand

and satisfaction derived from it (Lin, 2015). Green brand and innovative brands both

helps in gaining competitive advantage because it has unique emotional and functional

elements, which results in best CSR practices. Based on this, Lin (2015) conducted

study to examine the relationship between innovative brand experience, brand

satisfaction and equity. Multiple regression analysis was applied to test the variables.

Results revealed that innovative brand experience creates positive impact on brand

satisfaction and equity.

Similar type of study was conducted on corporate social responsibility in with

brand equity was discussed. The variables examined in the study were corporate brand

credibility, brand equity, reputation and corporate social responsibility. To discuss the

variables of the study, data was collected from 867 consumers of South

Korea and confirmatory factor analysis was applied from with the results revealed that

CSR creates direct impact on corporate reputation and brand credibility. Moreover,

brand credibility also has mediating effect on relationship between CSR and

reputation. The managerial implications suggest that CSR can be discussed on various

marketing based outcomes (Hur, Kim and Woo, 2014).

Celebrity Endorsement, brand credibility and Brand Equity 14

Besides brand equity discussed in various areas, the concept of celebrity

endorsement and mascots also plays an essential role in order to increase brand

credibility. This is the most often used technique by brands in order to increase its

credibility. Celebrity endorsement not only increases brand credibility, but also helps

in enhancing the image of brand based on the strategies adopted by companies. Based

on this, Chan, Ng and Luk (2013) argued in the study that there is positive impact of

celebrity endorsement on brand image. However, to prove this proposition, qualitative

study was conducted by interviewing the Chinese teenagers and the results revealed

that celebrities who are attractive, trustworthy and expressive tend to be easier to

recall and this influences positively on brand image. In the future, the research can

focus on consumers irrespective of age. Contrary, Malik and Guptha (2014) analyzed

the impact of variables related to celebrity endorsement (attractiveness, expertise and

trustworthiness) on brand mascots by conducting regression analysis where sample

was taken from Indian market. The findings suggested that by endorsements, brands

can enhance their credibility and increase the effectiveness of their campaigns.

Similar study was conducted by Awasthi and Choraria (2015) on celebrity

endorsement related factors (such as credibility, attractiveness, popularity etc), social

and personal characteristics and its impact on imitation behavior (such as purchasing

intention and advertisements). Exploratory factor analysis was conducted in order to

analyze variables and based on this finding revealed that endorsed celebrity related
Celebrity Endorsement, brand credibility and Brand Equity 15

aspects have positive influence on attitude of consumers towards the advertisements

by the mediating role of imitation.

Another study was conducted on India by Jaikumar and Sahay (2015) based on

celebrity endorsements done by various brands and adopting endorsement as the

branding strategy to enhance brand reputation. The study investigated the event that

helped in evaluating impact of endorsement on creating economic value. Ordinary

least squaring was applied on the hypotheses, which revealed that the events that takes

place have significant impact on abnormal returns received by corporate brands,

whereas insignificant returns received by house-of-brands. However, celebrity

endorsements have positive impact on economic values. However, implications

suggest the scope for expanding the pool of study towards various marketing

strategies.

Zamudio (2015) studied the impact of celebrity endorsement and consumer

attitude. The authors conducted qualitative study in order to conceptualize the

variables. It was noted in the study that companies used to invest huge amount in

endorsing the celebrity, so that they can gain the brand equity. The study reveals that

based on the celebrity endorsement the firm used to hire various celebrities so that

they can enhance the image of brand. SimilarlyJin, Lee & Jun, (2015) explained the

role of credibility and behavioral intention of consumer. Based on this the studies

reveal that the brand credibility significantly influences on the consumer decision
Celebrity Endorsement, brand credibility and Brand Equity 16

making. The author conducted conceptual study and finds that in purchasing any

brand the consumer look for the credibility. The consumer buying behavior is linked

with the sales efforts, pricing strategy, advertising camping’s and sale person

interaction. The study reveals that brand credibility, brand preferences, perceived risk,

brand prestige, behavioral intention information cost are positively correlated with

each other.

O'Cass and Lim (2002) studied influence of brand preference, brand association

and the purchasing intention. The author conducted qualitative study and approach the

consumer that belong from fashion apparel in south Asian region. The qualitative

analysis was performed and the in-depth details were gathered regarding price, usage,

brand personality and feeling. The findings show that competences, excitement,

sincerity, celebrity endorsement and sophistication influence on the consumer

intention to purchase the brand. Ioannou and Rusu (2012) further conducted the

qualitative study to examine the consumer based brand equity. The authors shared that

the brand equity is the brand value based on which the consumer perceive the image

of brand. The brand equity enhances the trust level and it makes the consumer loyalty

towards any product or services. The authors share that brand equity results in brand

awareness, brand association, perceived quality and competitive advantage. The

findings of the paper revels that brand equity significantly influence on the purchasing

intention of anyconsumer.
Celebrity Endorsement, brand credibility and Brand Equity 17

Wang, Chao and Wang (2015) shared qualitative study on the effect of fit,

consumer interaction and consumer behavior in emerging markets. The author

presented the tri process model of like hood, elaboration, fit and consequences. The

qualitative data was gathered and the findings reveals that companies that are

endorsing celebrity into brand enhance the image of brand. The higher number of

celebrity in to the advertisement results in effectiveness. Lunardo, Gergaud and Livat

(2015) identified the relationship between brand personality and the celebrity

personality. The author claims that the organization must endorse those celebrities that

are having the ability to ach themselves with the brand. The qualitative study was

conducted and the study find out that sincerity, competence, appeal and excitement

are the personality aspects that effect on the brand. Mohan and Sequeira (2015)

further investigate the consumer based brand equity and it impact on the operational

performance. The secondary data and qualitative study was gathered in order to

explore the dimensions of brand association, brand personality, perceived value and

organizational association. The finding shows that all these aspects influence on the

brand equity which enhance the operational performance. Seno and Lukas, (2007)

gathered qualitative study and the findings shows that celebrity product congruence,

brand equity is linked with the brand image positively. Therefore, it shows that the

type of branding such as brand credibility, endorser credibility and consumer based

equity are linked with trust, attractiveness, quality, awareness, associations and

loyalty.
Celebrity Endorsement, brand credibility and Brand Equity 18

Jiang, Huang, Wu, Choy and Lin (2015) studied the organizational crises a

during the celebrity endorsement in china. The author shared that celebrity

endorsement is one of the most common mean of communicating information

regarding product. However, it has negative consequences as well. The interview was

gathered and the thematic analysis was performed, which reveals that the crises in

celebrity endorsement can be due to the celebrity negative personality that may

damages the organizational image and results in embarrassment. Cocker, Banister

and Piacentini (2015) also investigated the negative influence on celebrity

endorsement on organization. The conceptual study was gathered and the findings

reveal that the celebrities are interconnected with the organization; thus the company

must hire those celebrities that are having good image in the market. Zhang, Jiang,

Shabbir and Zhu (2016) explained the impact of orientation of brand equity. The

qualitative study was gathered and the interview was conducted from B2B companies.

The findings reveal that brand orientation, internal branding, word of mouth, brand

association and customer services influence on enhancing the brandequity.

Another study on celebrity endorsement was conducted by Dekker and

Reijmersdal (2013) regarding the disclosing of endorsements in a TV program in

order to alleviate persuasion. The study focused on celebrity endorsement, claim

acceptance and credibility. Based on this, MANCOVA was conducted to test the

hypotheses. Results revealed that celebrity endorsements in programs help in reducing

Celebrity Endorsement, brand credibility and Brand Equity 19

acceptance towards product claims among their viewers especially in those who do

not perceive that the endorsed celebrities are credible. However, Um and Lee (2015)

also conducted study on understanding the concept of celebrity endorsement by

advertising practitioners, which revealed that endorsing celebrity helps in increasing

brand awareness. Hence, credible celebrities tend to have more impact and increases

brand value too. To obtain these results, quantitative t-tests were conducted.
Celebrity Endorsement, brand credibility and Brand Equity 20

CHAPTER 3: Research Method

3.1 Theoretical Framework

It is based on the associative network memory model from cognitive

psychology and brand signaling theory from information economics.

Associative network memory research is used to explain the relationship

between endorser credibility and brand equity. The concept of brand

credibility has emerged from the brand signaling literature.

According to this theory, which draws largely on information

economics, firms can use brands as signals for conveying information in a

marketplace that is characterized by imperfect and asymmetric information

(Erdem and Swait, 2004; Erdem et al., 2002). Brand signals embody all past

and present marketing mix strategies (Meyer and Sathi,1985). The content of a

brand signal can be considered in terms of clarity and credibility. Clarity refers

to the lack of ambiguity of the brand signal content (Erdem and Swait, 1998),

whereas credibility refers to how effectively information is conveyed by the

brand signal and furthermore, how truthful and dependable that information is

considered to be (Tirole, 1988). Credibility is considered the most important

characteristic of a brand signal and is a key focus of this research.

Celebrity Endorsement, brand credibility and Brand Equity 21

Figure 3.1

Attractiveness Brand Credibility

Trustworthiness

Expertise Consumer Based

Brand Equity

3.2 Hypothesis

H1: There is an impact of Celebrity Attractiveness on Brand Credibility

H2: There is an impact of Celebrity Expertise on Brand Credibility

H3: There is an impact of Celebrity trustworthiness on Brand Credibility

H4: There is an impact of Celebrity Attractiveness on Consumer equity brand

awareness.

H5: There is an impact of Celebrity Expertise on Consumer equity brand

awareness

H6: There is an impact of Celebrity trustworthiness on Consumer equity brand

awareness

H7: There is an impact of Brand credibility on Consumer equity brand

awareness
Celebrity Endorsement, brand credibility and Brand Equity 22

3.3 Research Strategies

Research Strategies for this study would be consisted on the literature reviews

and the survey questionnaire. Data collection gathered by couple of sources, primary

sources printed survey questionnaire. Secondary source based on the online survey

form.

3.4 Target Population

In order to get desire information, the target population in this study is the

general public of Karachi. The Population of this research is cover of all the

customers of shopping outlets and super markets which include male, female, young

adult and old individual.

3.4.1 Sample Size

As the organization of Pakistan are not well aware of the concept of brand

credibility and due to the limited time, sample size of 265 respondents was

selected. The sample is calculated as 265 from G power 3.1.9.2 using effect

size 0.06 and with 95% confidence interval (Faul, Erdfelder, Lang, &

Buchner,2007)

3.4.2 Sample Techniques

The convenient sampling is going to be done in sampling technique for the

proposed topic. On the convenient basis the Sampling did, and to take online survey

from the general public of Karachi. Convenience sampling technique (non-

probability) was utilized in this work because of convenience, quick data collection

(Sekaran & Bougie, 2009).

Celebrity Endorsement, brand credibility and Brand Equity 23

3.5 Statistical Technique

The data of this study were analyzed by using Statistical Package for Software

Selection version 22 & AMOS its different statistical techniques such as reliability,

validity, factor analysis & confirmatory factor analysis is selected to be technique of

data analysis. The aim for performing these tests is to highlight association of price

reduction sales ads and brand personality on loyalty.

Celebrity Endorsement, brand credibility and Brand Equity 24

Chapter# 4:- Result & Findings:

In this chapter we have discussed & findings the results & methodology. This

chapter portrays reliability of entire data, Confirmatory Factor Analysis. Before

analysis some working was done to remove the outliers from the data to get the

specific result and the total data was reduced to 265 samples. The data was collected

from males and females of different age groups who understand the situation

regarding the celebrity endorsement, brand credibility, and brand equity.

4.1 Descriptive Analysis

1000 questionnaire has been sent via email, through social forums like

LinkedIn, Facebook groups & also by hand to different university, colleges & social

forums in Karachi out of which 272 responses were received and 265 responses was

utilized in analysis, the respondents (26.15%) of total sent email, groups posting & by

hand written questionnaire.

4.2 Hypothesis Testing

The Data has been analyzed by using AMOS software & SPSS software. First

we have checked the reliability test has been performed for all combined variables in

SPSS software the reliability result shown in table 4.2.1, after that the reliability test

confirmation then we performed the factor analysis on SPSS, the result of factor

analysis is shown in table 4.2.2, after confirmation of exploratory factor analysis

results we have performed the confirmatory factor analysis in AMOS software, we

have convert the exploratory factor analysis results in confirmatory factor analysis

through AMOS plugins to check output of the data hypothesis testing the result shown

in table 4.2.3, relationship between their dependent & independent variables , this

testing can easily identified the missing, outliers, parameter identification and also
 Celebrity Endorsement, brand credibility and Brand Equity 25

checked the multivariate normality of the data. The confirmatory factory analysis

results are shown in table 4.4

4.2.1 Reliability Analysis

Reliability need to be measured before assessing the relationship of the model.

According to Wells and Wollack (2003) it is important to check the reliability of data

due to reasons which may affect the analysis.

Table 4.1: Reliability Analysis Celebrity attractiveness

Reliability Statistics
Cronbach's
Alpha N of Items
.927 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
CA1 16.60 33.536 .844 .904
CA2 16.42 36.653 .815 .908
CA3 16.45 35.779 .892 .894
CA4 16.34 37.596 .843 .904
CA5 16.53 38.735 .668 .936

The Reliability is checked by Cronbach’s Alpha and measures as per the standards

which are as follows:

Reliability scores:

> .9 (Excellent), > .8 (Good), > .7 (Acceptable), > .6 (Questionable), >.5(Poor), and <

.5 (Unacceptable)
 Celebrity Endorsement, brand credibility and Brand Equity 26

Table 4.1 shows the reliability statistics of individual variable and value of

Cronbach’s alpha of each variable. Table shows that all the variables are reliable

having Cronbach’s alpha value greater than 0.7. The Reliability for Celebrity

attractiveness (CA1, CA2, CA3, CA4, CA5) having five item scale (n=5) with 0.927

which means 92% of variable data is reliable.

Table 4.2: Reliability Analysis Celebrity expertise

Reliability Statistics
Cronbach's
Alpha N of Items
.919 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
CE1 17.50 27.259 .796 .900
CE2 17.40 27.134 .808 .897
CE3 17.21 27.862 .783 .902
CE4 17.20 27.678 .820 .895
CE5 17.22 28.321 .750 .909

The Reliability is checked by Cronbach’s Alpha and measures as per the standards

which are as follows:

Reliability scores:

> .9 (Excellent), > .8 (Good), > .7 (Acceptable), > .6 (Questionable), >.5(Poor), and <

.5 (Unacceptable)
 Celebrity Endorsement, brand credibility and Brand Equity 27

Table 4.2 shows the reliability statistics of individual variable and value of

Cronbach’s alpha of each variable. Table shows that all the variables are reliable

having Cronbach’s alpha value greater than 0.7. The Reliability for Celebrity expertise

(CE1, CE2, CE3, CE4, CE5) having five item scale (n=5) with 0.919 which means

91% of variable data is reliable.

Table 4.3: Reliability Analysis Celebrity trustworthiness

Reliability Statistics
Cronbach's
Alpha N of Items
.920 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Correlation Deleted
Deleted
CT1 17.28 27.005 .753 .911
CT2 17.20 26.977 .796 .902
CT3 17.11 26.780 .843 .892
CT4 17.09 27.325 .794 .902
CT5 17.02 27.250 .784 .904

The Reliability is checked by Cronbach’s Alpha and measures as per the standards

which are as follows:

Reliability scores:

> .9 (Excellent), > .8 (Good), > .7 (Acceptable), > .6 (Questionable), >.5(Poor), and <

.5 (Unacceptable)
 Celebrity Endorsement, brand credibility and Brand Equity 28

Table 4.3 shows the reliability statistics of individual variable and value of

Cronbach’s alpha of each variable. Table shows that all the variables are reliable

having Cronbach’s alpha value greater than 0.7. The Reliability for Celebrity

trustworthiness (CT1, CT2, CT3, CT4, CT5) having five item scale (n=5) with 0.920

which means 92% of variable data is reliable.

Table 4.4: Reliability Analysis Brand Credibility

Reliability Statistics
Cronbach's
Alpha N of Items
.927 6

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Correlation Deleted
Deleted
BC1 22.62 39.041 .758 .919
BC2 22.52 40.122 .784 .914
BC3 22.52 39.652 .851 .906
BC4 22.53 40.432 .790 .913
BC5 22.37 40.142 .799 .912
BC6 22.48 41.228 .756 .918

The Reliability is checked by Cronbach’s Alpha and measures as per the standards

which are as follows:

Reliability scores:

> .9 (Excellent), > .8 (Good), > .7 (Acceptable), > .6 (Questionable), >.5(Poor), and <

.5 (Unacceptable)
 Celebrity Endorsement, brand credibility and Brand Equity 29

Table 4.4 shows the reliability statistics of individual variable and value of

Cronbach’s alpha of each variable. Table shows that all the variables are reliable

having Cronbach’s alpha value greater than 0.7. The Reliability for Brand Celebrity

(BC1, BC2, BC3, BC4, BC5, BC6) having five item scale (n=6) with 0.927 which

means 92% of variable data is reliable.

Table 4.5: Reliability Analysis Consumer Equity Brand Awareness

Reliability Statistics
Cronbach's
Alpha N of Items
.920 3

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
CEBA1 9.48 7.258 .830 .892
CEBA2 9.42 7.139 .899 .836
CEBA3 9.35 7.432 .789 .926

The Reliability is checked by Cronbach’s Alpha and measures as per the standards

which are as follows:

Reliability scores:

> .9 (Excellent), > .8 (Good), > .7 (Acceptable), > .6 (Questionable), >.5(Poor), and <

.5 (Unacceptable)

Table 4.5 shows the reliability statistics of individual variable and value of

Cronbach’s alpha of each variable. Table shows that all the variables are reliable

having Cronbach’s alpha value greater than 0.7. The Reliability for Consumer equity
Celebrity Endorsement, brand credibility and Brand Equity 30

brand awareness (CEBA1, CEBA2, CEBA3) having three item scale (n=3) with 0.920

which means 92% of variable data is reliable.

Table 4.6: Reliability Analysis Brand Association

Reliability Statistics
Cronbach's
Alpha N of Items
.924 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Correlation Deleted
Deleted
BA1 18.83 23.114 .778 .912
BA2 18.78 23.249 .835 .901
BA3 18.73 22.100 .869 .893
BA4 18.71 22.827 .854 .897
BA5 18.69 24.328 .684 .930

The Reliability is checked by Cronbach’s Alpha and measures as per the standards

which are as follows:

Reliability scores:

> .9 (Excellent), > .8 (Good), > .7 (Acceptable), > .6 (Questionable), >.5(Poor), and <

.5 (Unacceptable)

Table 4.5 shows the reliability statistics of individual variable and value of

Cronbach’s alpha of each variable. Table shows that all the variables are reliable

having Cronbach’s alpha value greater than 0.7. The Reliability for Brand Association

(BA1, BA2, BA3, BA4, BA5) having three item scale (n=5) with 0.924 which means

92% of variable data is reliable.

Celebrity Endorsement, brand credibility and Brand Equity 31

4.2.2 Factor Analysis

Factor Analysis tool help in removal of redundancy from a set of variables and

incarnates correlated items by derived small variables, these factors are independent

to one another. There are few assumptions for Factor Analysis which need to be

fulfilled.

Table 4.7: KMO and Bartlett’s Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.913
Adequacy.
Bartlett's Test of Approx. Chi-Square 7553.371
Sphericity df 406
Sig. .000

Above table 4.7 shows; KMO = 0.913> 0.5 which rejects Ho.

Hence proved that there’s no multi co-linearity

Table 4.8: Total Variance Explained

Total Variance Explained

Extraction Sums of Rotation Sums of
Initial Eigenvalues Squared Loadings Squared Loadings
% of % of % of
Compone Varian Cumulati Varian Cumulati Tota Varian Cumulati
nt Total ce ve % Total ce ve % l ce ve %
1 13.01 13.01 5.71
44.873 44.873 44.873 44.873 19.709 19.709
3 3 6
2 5.29
4.637 15.990 60.863 4.637 15.990 60.863 18.246 37.955
1
3 5.03
1.767 6.093 66.957 1.767 6.093 66.957 17.354 55.309
3
4 4.91
1.540 5.312 72.269 1.540 5.312 72.269 16.960 72.269
8
5 .917 3.163 75.432
Celebrity Endorsement, brand credibility and Brand Equity 32

6 .844 2.912 78.343

7 .764 2.634 80.978
8 .630 2.171 83.149
9 .545 1.880 85.028
10 .523 1.803 86.832
11 .412 1.420 88.252
12 .358 1.234 89.486
13 .314 1.081 90.567
14 .304 1.048 91.615
15 .283 .975 92.590
16 .241 .833 93.422
17 .221 .764 94.186
18 .209 .722 94.908
19 .200 .691 95.599
20 .185 .636 96.235
21 .169 .582 96.817
22 .159 .547 97.365
23 .155 .533 97.898
24 .133 .460 98.357
25 .119 .412 98.769
26 .106 .364 99.133
27 .094 .325 99.459
28 .087 .299 99.758
29 .070 .242 100.000
Extraction Method: Principal Component Analysis.

Above table 4.8 shows total variance explained that four component should be

extracted from where even value is greater than 1. Also there is no need to eliminate

any item because total variation percentage is 72.269% which is above the standard

i.e. 60%.
Celebrity Endorsement, brand credibility and Brand Equity 33

Figure 4.1: Scree Plot

Above Figure 4.1 Scree plot shows that no need to eliminate any item, all the
variables should be extracted.
Celebrity Endorsement, brand credibility and Brand Equity 34

4.2.3 Confirmatory Factor Analysis (CFA)Diagram

Figure 4.2: CFA Model

Celebrity Endorsement, brand credibility and Brand Equity 35

4.2.4 Confirmatory Factor Analysis (CFA)Assessment

CMIN

Model NPAR CMIN DF P CMIN/DF

Default model 86 925.869 349 .000 2.653
Saturated model 435 .000 0
Independence model 29 7866.232 406 .000 19.375

Above Table Show the result of Chi-square fitness model range is (1 – 4) in

above CMIN value is 1.902 its shows that the model is fit & acceptable according to

(Hoyle et al,1995).

Baseline Comparisons

NFI RFI IFI TLI

Model CFI
Delta1 rho1 Delta2 rho2
Default model .882 .863 .923 .910 .923
Saturated model 1.000 1.000 1.000
Independence model .000 .000 .000 .000 .000

Above Table Show the result of model summary of the data which has a

comparative fit index The CFI is identical to the McDonald and Marsh (1990) CFI is

92 % CFI (0.923), except that the CFI is truncated to fall in the range from 0 to 1. CFI

values close to 1 indicate a very good fit.

RMSEA

Model RMSEA LO 90 HI 90 PCLOSE

Default model .079 .073 .085 .000
Independence model .264 .259 .269 .000
Celebrity Endorsement, brand credibility and Brand Equity 36

Above Table Show the result of Root mean square error of approximation

which known as (RMSEA), the value range between less than (0.05 – 0.08) & in this

model value of RMSEA is 0.079 mean which is acceptable & the goodness of Fit test

was slightly below acceptable, (Browne and Cudeck, 1993)

4.2.5 AMOS Model

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P

BC <--- CA .356 .103 13.166 ***
BC <--- CE .198 .229 13.970 ***
BC <--- CT .332 .161 17.002 ***
CEBA <--- CA .411 .082 17.194 ***
CEBA <--- CE .231 .187 17.327 ***
CEBA <--- CT .371 .141 15.920 ***
CEBA <--- BC .591 .033 18.079 ***

BC← CA H1= There is a significant impact of Celebrity

Attractiveness (CA) is higher than Brand Credibility, which is .356 (35%) accepted P-

value is<0.05.

BC← CE H2= There is a significant impact of Celebrity Expertise

(CE) is higher than Brand Credibility, which is .198 (19%) accepted P- value is<0.05.

BC← CT H3= There is a significant impact of Celebrity

trustworthiness (CT) is higher than Brand Credibility, which is .332 (33%) accepted

P- value is<0.05.
Celebrity Endorsement, brand credibility and Brand Equity 37

CEBA← CA H4= There is a significant impact of Celebrity

Attractiveness (CA) is higher than Consumer equity brand awareness which is .411

(41%) accepted P- value is<0.05.

CEBA← CE H5= There is a significant impact of Celebrity Expertise

(CE) is Consumer equity brand awareness which is .231 (23%) accepted P- value is

<0.05.

CEBA← CT H6= There is a significant impact of Celebrity

trustworthiness (CT) is higher than Consumer equity brand awareness which is .371

(37%) accepted P- value is<0.05.

CEBA←BC H7= There is a significant impact of Brand credibility

(BC) is higher than Consumer equity brand awareness, which is .591 (59%) accepted

P- value is<0.05.

4.2Hypothesis Assessment Summary.

Table 4.9

Accepted Or
Hypotheses
Rejected
H1: There is an impact of Celebrity Attractiveness on Brand
Accepted
Credibility
H2: There is an impact of Celebrity Expertise on Brand
Accepted
Credibility
H3: There is an impact of Celebrity trustworthiness on Brand
Accepted
Credibility
H4: There is an impact of Celebrity Attractiveness on
Accepted
Consumer equity brand awareness.
H5: There is an impact of Celebrity Expertise on Consumer
Accepted
equity brand awareness
H6: There is an impact of Celebrity trustworthiness on
Accepted
Consumer equity brand awareness
H7: There is an impact of Brand credibility on Consumer
Accepted
equity brand awareness
Celebrity Endorsement, brand credibility and Brand Equity 38

(H1 = 0.35 + H2 = 0.19 + H3 = 0.33 + H4 = 0.41 + H5 = 0.23 + H6 = 0.37 + H7 =

0.59) The above 7 hypothesis are accepted where P- value is <0.05 and as show in
table 4.2.5 & also below shown in Path Diagram model.

Figure 4.3 : Path Analysis Final

Celebrity Endorsement, brand credibility and Brand Equity 39

Chapter# 5:- Conclusion.

5.1 Conclusion.

This evident justification by researching celebrity endorsement is that in

creating brand equity and credibility. Therefore, through studying this concept in

Pakistani context the significance of positive celebrity endorsement in creating brand

equity and credibility can be studies. The aspects such as consumer-based brand

equity, endorser credibility and brand credibility investigated through approaching

consumers belong from various age groups.

Conclusively, The general business shows that majority of marketers failed to

understand the need for celebrity endorsement in creating g brand equity. Based on

lack of concern and strategic decision the companies are moving business towards

ambiguity because they are unable to endorse celebrity that are having approachable

personality. The specific business problem shows that how the companies create

consumer-based brand equity through focusing on dimensions such as brand

awareness, brand association, brand loyalty and perceived quality.

5.2 Discussion.

The core success of any business is based on the marketing strategies adopted

by them (Dwivedi and Johnson, 2013). With the increase in consumer demand and

market competition the companies are making efforts in order to use effective

promotional tools. For marketers it is difficult to maintain brand equity. Lin (2015)

shared that the brand equity shows the company ability to add incremental value in

the brand. The celebrity endorsement allows markets to create brand equity, which

leads towards brand recognition.

Celebrity Endorsement, brand credibility and Brand Equity 40

Firstly, there is an impact of credibility of endorser celebrity (IV) on the credibility of

endorsed brand (DV) as credibility of endorser celebrity particular brand from where

a customer buys is a vital part to attract customer attention of basis of as brand is

credible to buy. Here the relationship is positive between both the variables.

Secondly, the consumer based equity of the endorsed brand (IV) positively impacted

by the credibility of brand (DV) as consumer based equity of the endorsed brand

particular brand from where a customer buys is a vital part to attract customer

attention of basis of as brand is credible to buy. Here the relationship is positive

between both the variables.

Thirdly, the consumer based equity of the endorsed brand (IV) has an impact by the

credibility of endorser celebrity (DV) as consumer based equity of the endorsed brand

particular brand from endorsed by the particular celebrity it credible. As the celebrity

only endorse credible brand only. Which the celebrity has own credibility with respect

to endorsing. Here the relationship is positive between both the variables.

5.3 Policy Implication

The contribution of this paper is positive regarding to celebrity endorsement, brand

credibility and brand equity of ever particular brand. Therefore, through studying this

concept in Pakistani context the significance of positive celebrity endorsement in

creating brand equity and credibility can be studies. The aspects such as consumer

based brand equity; endorser credibility and brand credibility investigated through

approaching consumers belong from various age groups.

Celebrity Endorsement, brand credibility and Brand Equity 41

5.4 Limitations.

The current study is limited to the brand industry of Pakistan specially Karachi

regarding celebrity endorsement, brand credibility and brand equity of ever particular

brand. Data is collected from the customers of different brands situated in Karachi.

There are a huge number of customers who are relying on branded products for

maintaining social class and status.

5.5 Recommendations and Future Researches.

Future researches can be done on respective customers regarding to celebrity

endorsement, brand credibility and brand equity of ever particular brand of service

such as saloons and Spa.

Secondly, the research can be done regarding celebrity endorsement, brand credibility

and brand equity of ever particular brand of house hold item such as kitchen and

homeappliances.
Celebrity Endorsement, brand credibility and Brand Equity 42

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Celebrity Endorsement, brand credibility and Brand Equity 46

APPENDIX

COVER LETTER

Dear Respondent,

I am studying MBA (Hons) in University of Sindh, Jamshoro. I am conducting a

mediating study Celebrity Endorsement, brand credibility and Brand Equity Through
your participation, I eventually hope to best understand the mediating behavior of
store image on the relation between in-store logistics and customer satisfaction on the
general consumers of supermarket settings.

A brief questionnaire is enclosed with this letter, which asks a variety of questions
about your opinions/perceptions related to you interest in accord with the above
mentioned variables. I am requesting you to participate in above cited study by
answering the attached questionnaire that will hardly take your 10 to 15 minutes.

Please, do not mention your university, your name or your signature on the
questionnaire. No one will know whether you participated in this study or not. Your
responses will not be identified with your personality, nor will anyone be able to find
any personal information about you. Whatever, you say on the questionnaire will not,
in any way, influence your present or future personality.

If you have any questions or concerns about completing the questionnaire or about
participating in this study, you may contact me via pirmuzamilrashdi@hotmail.com.
You can also request for key research findings through same email address.

Thanks for your cooperation,

Sincerely,

Syed Muzamil Rashdi

MBA (Hons)
UNIVERSITY OF SINDH, JAMSHORO – PAKISTAN
pirmuzamilrashdi@hotmail.com
Celebrity Endorsement, brand credibility and Brand Equity 47

Questionnaire

1 3
5
Str Some 7
Questionnaire on Celebrity 2 4 Som 6 Str
ong wh
Endorsement, Brand Credibility and Dis Ne ewh Ag ong
ly at
agr utr at re lya
Brand Equity
disa ee Dis al e gre
agre
gre agr e
e
e ee

1 2 3 4 5 6 7
Attractive celebrity in advertisement do
attract me towards brand

Classy celebrity in advertisement do attract

me towards brand

Beautiful celebrity in advertisement do

attract me towards brand

Elegance celebrity in advertisement do

attract me towards brand

Sexy celebrity in advertisement do attract me

towards brand

Celebrity Expertise 1 2 3 4 5 6 7

Expert celebrity in an advertisement do

influence on me towards buying product

Experienced celebrity in an advertisement do

influence on me towards buying product

Knowledgeable celebrity in an advertisement

do influence on me towards buying product

Qualified celebrity in an advertisement do

influence on me towards buying product
Celebrity Endorsement, brand credibility and Brand Equity 48

Skilled full celebrity in an advertisement do

influence on me towards buying product

Celebrity Trustworthiness 1 2 3 4 5 6 7

Celebrity who is endorsing the brand is

dependable because of which I gain trust on
brand

Honest in celebrity encourages me to buy

product

Reliable celebrity in an advertisement do

influence on me towards buying product

Sincere celebrity in an advertisement do

influence on me towards buying product

Trustworthy celebrity in an advertisement do

influence on me towards buying product

Brand credibility 1 2 3 4 5 6 7

Brand has the ability to deliver what it

promises

This brand delivers what it promises

This brand’s product claims are believable

Over time, my experiences with this brand
have led me to expect it to keep its
promises, no more and no less

This brand has a name you can trust

This brand doesn’t pretend to be something

it isn’t

Consumer-based brand equity /Brand

Awareness 1 2 3 4 5 6 7
I am aware of (brand) (product category)

I can recognize (brand) (product category)

I can easily recognize the brand

Brand Associations 1 2 3 4 5 6 7
Celebrity Endorsement, brand credibility and Brand Equity 49

It is likely that brand offer good value for

money

It is likely that brand would be technically

advanced

I like brand

I trust brand

I would feel proud to own a brand

Section D: Respondent Profile

Select your current status:

Average income per month (Individual)

11 –20 K 21 – 30 K 31- 40K 41 – 50 K 51 K -above

Thank you very much for your participation
 Celebrity Endorsement, brand credibility and Brand Equity 50

Output

Table 4.1: Reliability Analysis Celebrity attractiveness

Reliability Statistics
Cronbach's
Alpha N of Items
.927 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Correlation Deleted
Deleted
CA1 16.60 33.536 .844 .904
CA2 16.42 36.653 .815 .908
CA3 16.45 35.779 .892 .894
CA4 16.34 37.596 .843 .904
CA5 16.53 38.735 .668 .936

Table 4.2: Reliability Analysis Celebrity expertise

Reliability Statistics
Cronbach's
Alpha N of Items
.919 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
CE1 17.50 27.259 .796 .900
CE2 17.40 27.134 .808 .897
CE3 17.21 27.862 .783 .902
CE4 17.20 27.678 .820 .895
CE5 17.22 28.321 .750 .909

Table 4.3: Reliability Analysis Celebrity trustworthiness

 Celebrity Endorsement, brand credibility and Brand Equity 51

Reliability Statistics
Cronbach's
Alpha N of Items
.920 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Correlation Deleted
Deleted
CT1 17.28 27.005 .753 .911
CT2 17.20 26.977 .796 .902
CT3 17.11 26.780 .843 .892
CT4 17.09 27.325 .794 .902
CT5 17.02 27.250 .784 .904

Table 4.4: Reliability Analysis Brand Credibility

Reliability Statistics
Cronbach's
Alpha N of Items
.927 6

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
BC1 22.62 39.041 .758 .919
BC2 22.52 40.122 .784 .914
BC3 22.52 39.652 .851 .906
BC4 22.53 40.432 .790 .913
BC5 22.37 40.142 .799 .912
BC6 22.48 41.228 .756 .918

Table 4.5: Reliability Analysis Consumer Equity Brand Awareness

Reliability Statistics
Cronbach's
Alpha N of Items
.920 3

Item-Total Statistics
Celebrity Endorsement, brand credibility and Brand Equity 52

Scale Corrected Cronbach's

Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
CEBA1 9.48 7.258 .830 .892
CEBA2 9.42 7.139 .899 .836
CEBA3 9.35 7.432 .789 .926

Table 4.6: Reliability Analysis Brand Association

Reliability Statistics
Cronbach's
Alpha N of Items
.924 5

Item-Total Statistics
Scale Corrected Cronbach's
Scale Mean if Variance if Item-Total Alpha if Item
Item Deleted Item Deleted Correlation Deleted
BA1 18.83 23.114 .778 .912
BA2 18.78 23.249 .835 .901
BA3 18.73 22.100 .869 .893
BA4 18.71 22.827 .854 .897
BA5 18.69 24.328 .684 .930

Table 4.7: KMO and Bartlett’s Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.913
Adequacy.
Bartlett's Test of Approx. Chi-Square 7553.371
Sphericity df 406
Sig. .000

Table 4.8: Total Variance Explained

 Celebrity Endorsement, brand credibility and Brand Equity 53

Total Variance Explained

Extraction Sums of Rotation Sums of
Initial Eigen Squared Loadings Squared Loadings
values % of % of
% of
Compone Varian Cumulati Varian Cumulati Tota Varian Cumulati
nt Tota ce ve% ce ve % l ce ve %
l
Total
1 13.01 5.71
3 44.873 44.873 3 44.873 44.873 6 19.709 19.709
5.29
13.01 4.637 15.990 60.863 4.637 15.990 60.863
18.246 37.955
5.031
2 1.767 6.093 66.957 1.767 6.093 66.957
17.354 55.309
3
3
1
16.960 72.269
8
4 4.9
1.540 5.312 72.269 1.540 5.312
72.269
5 .917 3.163 75.432
6 .844 2.912 78.343
7 .764 2.634 80.978
8 .630 2.171 83.149
9 .545 1.880 85.028
10 .523 1.803 86.832
11 .412 1.420 88.252
12 .358 1.234 89.486
13 .314 1.081 90.567
14 .304 1.048 91.615
15 .283 .975 92.590
16 .241 .833 93.422
17 .221 .764 94.186
18 .209 .722 94.908
19 .200 .691 95.599
20 .185 .636 96.235
21 .169 .582 96.817
22 .159 .547 97.365
23 .155 .533 97.898
24 .133 .460 98.357
25 .119 .412 98.769
26 .106 .364 99.133
27 .094 .325 99.459
28 .087 .299 99.758
29
Extraction .070 Principal
Method: .242 Component
100.000 Analysis.
Celebrity Endorsement, brand credibility and Brand Equity 54

Figure 4.1: Scree Plot

4.2.3 Confirmatory Factor Analysis (CFA)Diagram

Celebrity Endorsement, brand credibility and Brand Equity 55

Figure 4.2: CFA Model

4.2.4 Confirmatory Factor Analysis (CFA)Assessment

Celebrity Endorsement, brand credibility and Brand Equity 56

CMIN

Model NPAR CMIN DF P CMIN/DF

Default model 86 925.869 349 .000 2.653
Saturated model 435 .000 0
Independence model 29 7866.232 406 .000 19.375

Baseline Comparisons

NFI RFI IFI TLI

Model CFI
Delta1 rho1 Delta2 rho2
Default model .882 .863 .923 .910 .923
Saturated model 1.000 1.000 1.000
Independence model .000 .000 .000 .000 .000

RMSEA

Model RMSEA LO 90 HI 90 PCLOSE

Default model .079 .073 .085 .000
Independence model .264 .259 .269 .000

4.2.5 AMOS Model

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P

BC <--- CA .356 .103 13.166 ***
BC <--- CE .198 .229 13.970 ***
BC <--- CT .332 .161 17.002 ***
CEBA <--- CA .411 .082 17.194 ***
CEBA <--- CE .231 .187 17.327 ***
CEBA <--- CT .371 .141 15.920 ***
CEBA <--- BC .591 .033 18.079 ***
Celebrity Endorsement, brand credibility and Brand Equity 57

Figure 4.3: Path Analysis Final