NUST Business School

Course Title

ADVERTISING AND DIGITAL MARKETING

COMMUNICATION

Course Code: MKT-824

The Use of Celebrity Endorser’s Attributes and its Perceived

Importance in Context of Brand Personalities (Literature
Review)
Assignment 1

Submitted to;
Dr. Sana Imran
Submitted by;
Zainab Zahra 400019
MS I&E 2022
Date: OCTOBER 30, 2023.

Table of Contents
Problem Statement:....................................................................................................................3

Literature Review:.....................................................................................................................3

Dependent Variable – Perceived importance to practitioners of certain celebrity

attributes:....................................................................................................................................4

Independent Variable – Brand personality:............................................................................4

The Impact of Brand Personality on Consumer Behavior:........................................................6

Influence on Consumer Perceptions:.......................................................................................6

Impact on Consumer Preferences:...........................................................................................6

Role in Purchasing Decisions:...................................................................................................6

Relevant Case Studies:...............................................................................................................6

Apple Inc.:...........................................................................................................................................6
Nike:....................................................................................................................................................6
Harley-Davidson:.................................................................................................................................7
Celebrity Endorsements: Evolution and Trends:.......................................................................7

Historical Evolution:..................................................................................................................7

Transition to Digital Platforms:...........................................................................................................7

Rise of Micro-Influencers:...................................................................................................................7
Virtual Celebrities and Influencers:....................................................................................................7
Ethical Considerations and Transparency...........................................................................................7
Data-Driven Endorsements:................................................................................................................7
Cultural Influence on Celebrity Endorsements: A Comprehensive Exploration:...............8

Case Study 1:.......................................................................................................................................8

Case Study 2:.......................................................................................................................................8
Case Study 3:.......................................................................................................................................8
 Case Study 4:.......................................................................................................................................8
Cross-Cultural Strategies for Effective Celebrity Endorsements:........................................8

Ethical Considerations in Celebrity Endorsements:...............................................................9

Transparency in Endorsements:.........................................................................................................9
Authenticity and Genuine Belief:.......................................................................................................9
Avoiding Conflicts of Interest:............................................................................................................9
Importance of Ethical Practices:.........................................................................................................9
References:................................................................................................................................9
Problem Statement:
Marketers and advertisers in today's digital world place a premium on celebrity spokespeople
and brand personas. Separate studies have been conducted on both of these issues, discussing the
efficacy and best practises in each respective discipline. There have been no attempts to
investigate the relationship between the two notions in the real world.

Since this study is based on the experiences of working professionals, it will shed light on
present practises and highlight areas for future development. In addition, it will serve as a guide
for professionals in the field, allowing them to make educated choices on celebrity endorsements
that will boost the efficiency of their marketing initiatives.

Literature Review:
Historical Perspective:
Choosing a high-profile advocate is a crucial step for every business. It has been shown to
favourably affect customers' perceptions of a brand and their intention to buy that brand (Eisend
& Langner, 2010). This trend has only accelerated over time, with celebrities increasingly
promoting things via less overt channels like social media and stealth marketing strategies rather
to traditional media like print or television.

This is why not only has online celebrity endorsement practise increased (Wood & Burkhalter,
2014), but so has scholarly interest in the topic. Consequently, studies have been undertaken on a
variety of interconnected topics, including the popularity of celebrities, the transfer of brands to
celebrities, the meaning transfer, and the management of campaigns.

Research in campaign management, on the other hand, has sought to either explain how
celebrities are picked for endorsements or give insight into the selection process rather than
focusing on the impacts of such endorsements, as is the case in most of the aforementioned
research. Several unique (often informal) processes that practitioners use to identify celebrity
endorsers were identified in the introductory interview and survey-based investigations by
Erdogan and colleagues (Erdogan & Baker, 2000; Erdogan & Drollinger, 2008). Using these
results, they proposed a seven-step procedure for professionals to follow when searching for the
"right" celebrity. Although they did produce a workable model, it must be noted that it relied on
descriptive study of actual procedures and offered no convincing evidence that it was the
superior selection technique.

In contrast, Zwilling and Fruchter (2013) used an alternative tack. They used the best practises
for designing products as their guide, saying that an A-lister's endorsement should be considered
integral to the product. To find the greatest mix of celebrity and product features for an ideal
product design, they used a genetic algorithm to evaluate the traits of the celebrities against the
attributes of the product. The selection technique was found to be effective through empirical
testing, outperforming other celebrity selection strategies. Unfortunately, the technique proved
too complicated to be widely implemented in most businesses.

In addition, Erdogan, Baker, and Tagg (2001) investigated what variables UK advertising
professionals take into account when choosing celebrity endorsers. Three elements were
identified as being of the utmost importance: the compatibility between the celebrity and the
target audience, the compatibility between the celebrity and the product, and the overall image of
the celebrity. Through interviews with advertising professionals, they also found other crucial
variables (previously recognised) that are taken into account throughout the selection process.
Factors like as the celebrity's age, the likelihood of controversy surrounding them, the strength of
their previous endorsements, the nature of their career, and whether or not they themselves use
the brand were considered. While the study was successful in identifying three important criteria,
it was limited by the use of generic items in the surveys rather than recognisable brands. In the
actual world, celebrities are often chosen to promote a brand as opposed to a single, generic
product since brands are more nuanced and carry more features. Because of this omission, the
study's relevance to the actual world is severely constrained.

After reviewing these seminal works, it's evident that we still have a long way to go in our
understanding of how to pick celebrities, and more precisely, which characteristics of celebrities
are most useful for marketing purposes.
 Dependent Variable – Perceived importance to practitioners of certain celebrity
attributes:
There have been a number of ground-breaking research to determine what qualities in celebrities
lead to the best endorsement results. Some of the earliest research on the influence of celebrities'
characteristics was conducted by Carl I. Hovland and colleagues in the 1950s (Hovland & Weiss,
1951; Hovland, Janis, & Kelly, 1953). In the wake of his first model, the Source Credibility
Model (Ohanian, 1991), researchers have developed two more: the Source Attractiveness Model
(McGuire, 1968) and the Product Match-Up Hypothesis (Kahle & Homer, 1985; Kamins, 1989).

According to Ohanian (1991) and others, the Source Credibility Model suggests that an
endorser's perceived competence and trustworthiness affects the message's impact. Consumers'
values, norms, and attitudes can be swayed by information if it comes from a respectable source
(a celebrity). Internalisation refers to the process by which a recipient internalises the impact of a
source (Kelman, 1961). That's why it's so important for an endorsement to have a positive
reputation among the people who will be hearing the message. The same holds true for the
endorser's perceived expertise, which refers to their degree of experience, knowledge, or
abilities.

According to the Source Attractiveness Model, a message's credibility increases when its
endorser is someone the target audience likes, can relate to, and is already familiar with.
According to the model, like a source means having a favourable impression of them due to their
outward look and demeanour, while similarity refers to a sense of rapport between the sender
and the recipient.

With the help of these two models, advertising professionals will have a better idea of what
characteristics to look for in a celebrity endorser. Several more characteristics deemed crucial by
real-world practitioners were enumerated in the research by Erdogan, Baker, and Tagg (2001).
The potential usefulness and relevance of these celebrity traits have been validated by most
research to varying degrees; however, most of these attributes have been evaluated against
generic items rather than brands, which are more essential in the real world. When practitioners
analyse branding and brand personalities, they may reevaluate the significance of particular
celebrity qualities. It is crucial to examine how practitioners' valuation of the aforementioned
characteristics shifts over time and across a variety of brand personas.

Independent Variable – Brand personality:

Brand personality has received a lot of attention in the field of consumer behaviour studies. In
marketing, "brand personality" is defined as "the set of human characteristics associated with a
brand" (Aaker, 1997). Researchers have looked at how the persona of a brand might help a
customer project an idealised version of themselves (Kleine, Kleine, & Kernan, 1993) or an
authentic version of themselves (Malhotra, 1981).
Marketers use it to set their products apart from competitors (Halliday, 1996), which may have a
significant impact. They target audiences with comparable qualities in order to deliver them
messages that will resonate with them. The brand's personality qualities may be associated with
the brand in the same way that we identify traits with persons through the use of personification
or the production of user imagery. Coca-Cola is often linked with being laid-back and
entertaining, whereas Pepsi is often connected with the energy and vitality of youth, and
Mountain Dew is often associated with a taste for adventure and risk.
Aaker's (1997) investigation on this topic identified five distinct "brand personalities" that best
encapsulated these characteristics. Based on her research, she concluded that "consumers
perceive that brands have five distinct personality dimensions: sincerity, excitement,
competence, sophistication, and ruggedness" (Aaker, 1997). She went on to detail the defining
features shared by each grouping. (see Figure 1 below).
Practitioners may use these five personality types to classify brands in a meaningful way, such as
assigning the exciting personality type to Apple, the sophisticated personality type to Rolex, and
the rugged personality type to Harley-Davidson. Ads for lesser-known brands that fit into one of
these five categories will reach more of the people they need to reach, leading to higher
conversion rates and lower costs. In fact, professionals have come to view brand personalities as
both a unifying factor in marketing products to customers of different cultural backgrounds
(Plummer, 1985) and a key driver of consumer choice and usage (Biel, 1993).
It seems to reason that the brand personality of an endorser would be evaluated by marketers and
advertisers when choosing a public figure to represent their product. This highlights the
significance of investigating the role of brand personalities in the endorsement process.
The Impact of Brand Personality on Consumer Behavior:
In the ever-evolving world of marketing, understanding consumer behaviour is crucial. The
capacity to attract and keep customers depends in large part on the company's brand identity. The
personality of a brand is the sum of the traits that customers identify with it. Authenticity,
excitement, competency, sophistication, and roughness are all traits that can sway a customer's
opinion, taste, or judgement.
Influence on Consumer Perceptions:
There has been a lot of study on the link between brand personality and consumer views. Aaker's
(1997) research shows that consumers' mental associations with brands are strongly influenced
by the qualities that people attribute to such brands. A "sincere" brand may appeal to customers
that value trustworthiness and novelty. Marketers may more successfully reinforce the
perceptions they want customers to have of their brand by taking advantage of these
relationships.
Impact on Consumer Preferences:
Consumers' emotional attachment to a brand is integral to the brand's identity. Consumers give
brands a lot of weight if they feel they represent them or their values. Products that are both
exciting and durable, for instance, may appeal to those with a penchant for exploration and
novelty (Sirgy, 1982). Customers are loyal to brands they believe will help them present a
certain image to the outside world.
Role in Purchasing Decisions:
The integrity of a brand is extremely important to its patrons. When faced with a choice between
two or more brands delivering essentially the same thing, consumers are more likely to buy from
the firm whose brand personality is compatible with their own. Consumers' discretionary
spending decisions are most impacted by the emotional connections they have to a brand,
according to studies. Marketers utilise this information to create brand identities that are a careful
match for the tastes of target consumers, therefore increasing brand loyalty and sales.
Relevant Case Studies:
Apple Inc.: Apple's innovative and exciting brand personality may be a major factor in the
company's phenomenal success. Customers automatically associate Apple products with
creativity and innovation. Apple has cultivated a loyal customer base that is willing to pay a
premium for its products because of the company's distinctive brand identity.--(Fournier, 1998).
Nike: Athletes and fitness enthusiasts connect with the Nike brand because it represents their
own values of intensity and determination. Using captivating advertising campaigns that feature
athletes to inspire viewers to train harder and perform at a better level, Nike has built a strong
brand identity. That collaboration is crucial to Nike's success.Since 1993 (Batra et al.
Harley-Davidson: The Harley-Davidson brand persona is one that is fearless and unyielding.
Motorcyclists are drawn to this persona because of the independence and mobility it provides.
The wide road is a central theme in Harley-Davidson's marketing campaigns, which aim to
solidify the brand's reputation and attract new, like-minded motorcyclists. (Holt, 2004).
Celebrity Endorsements: Evolution and Trends:
Historical Evolution:
Famous celebrities like Mark Twain and Queen Victoria have been employed in ads as
spokespersons for products since the late 19th century. But when mass media expanded in the
early 20th century, its appeal exploded. From the earliest days of print and radio advertising,
Hollywood stars have been used as product endorsers. This trend has been further accelerated by
the widespread use of television, and is now fundamental to advertising efforts. In the
perceptions of consumers, celebrities were inextricably linked to certain brands (Twitchell,
1996).
Transition to Digital Platforms: Once the internet and social media became commonplace,
endorsements changed significantly. Due to the widespread availability of digital media,
celebrities were able to engage in a more direct and interactive dialogue with their fan base.
"Social media influencers" have become a significant market force since the proliferation of
social media sites like Instagram, YouTube, and Twitter (Freberg et al., 2011). Customers were
more convinced that these digital collaborations were authentic than they would be with
traditional endorsements.
Rise of Micro-Influencers: Micro-influencers, or individuals who have a small but committed
following, have seen their star rise in recent years. Since endorsements from micro-influencers
are perceived as more authentic and approachable by niche audiences, they carry more weight
with those groups (Lou & Yuan, 2019). Companies collaborate with micro-influencers to
develop targeted marketing campaigns for certain subsets of their target market. In this trend, the
emphasis is not on how many people join but on how engaged they become.
Virtual Celebrities and Influencers: The endorsement industry is being disrupted by the rise of
social media stars and influential bloggers. These are made-up people with their own fan bases
on the internet, and they're all the work of computers. Particularly in the gaming and fashion
industries, companies have employed virtual influencers to attract tech-savvy and younger
audiences. Virtual celebrities have introduced a novel and forward-thinking approach to
endorsement deals, blurring the line between digital and live entertainment. (FTC, 2009)
Ethical Considerations and Transparency: The proliferation of the internet has refocused
attention on ethical questions. The Federal Trade Commission and other groups have established
guidelines that online endorsements must follow. Public celebrities and influencers are now
required to disclose to their followers any financial ties they may have to the companies they
advocate.
Data-Driven Endorsements: The advent of digital technology has made precise data analysis
feasible. Analytics help businesses choose the A-listers who will best represent their products.
Data like engagement rates, likes, shares, and comments are examined to determine the
effectiveness of endorsements (Stewart et al., 2019). Brands can maximise their return on
investment and ensure their endorsements are effective by utilising data-driven insights.
Cultural Influence on Celebrity Endorsements: A Comprehensive Exploration:
The intersection of popular culture and advertising creates a nuanced setting with far-reaching
consequences for the former. Local traditions shape how people react to and interact with famous
people in different regions of the world. By delving further into specific case studies from
different countries, we may be able to disentangle the tangled web of cultural impact on celebrity
endorsements and acquire substantial insights into developing effective endorsement campaigns.
Case Study 1: America and Japan: individualism vs. collectivism Due to the country's strong
emphasis on individualism (Triandis, 1995), celebrity endorsements in the United States
generally focus on the endorsee's personal narrative and accomplishments. However, in Japan, a
strong sense of community and belonging is highly valued (Markus & Kitayama, 1991).
Successful celebrities are those that foster a feeling of togetherness and modesty (Hofstede,
1980). In Japan, where modesty and conformity are highly valued, a famous American for their
outspokenness would be seen with hostility (Hofstede, 1980).
Case Study 2: India vs. the United Kingdom in a Comparison of Regional Absurdity When
endorsing a product in India, celebrities should keep the country's diverse culture in mind.
Although Bollywood performers carry weight in Hindi-speaking regions, a regional cinema
approach is necessary in the south (Rajadhyaksha, 2009). The British value wit and sarcasm
highly. In order to appeal to the British population, it's important to have a brand ambassador
that shares their sense of humour (West & Trester, 2012).
Case Study 3: Heart vs. Head: Brazil vs. Saudi Arabia The Brazilian public tends to idolise those
who exude an upbeat, optimistic vibe. In Brazil, consumers prefer endorsements from celebrities
that aren't hesitant to express their emotional side (Dantas & Bell, 2012). The values of
submission and allegiance to authority are given higher weight in more conservative nations like
Saudi Arabia. As stated by Alserhan (2010), celebrities marketing products in Saudi Arabia must
respect local customs and Islamic principles.
Case Study 4: The influence of South Korea, especially through K-pop, has a greater effect on
shaping the tastes of young consumers than Italy's history of cultural sophistication does (Jung,
2014). K-pop singers have an impact on culture in many ways, including fashion, hairstyles, and
even manner of life (Jung, 2014). Italy's rich cultural history encourages an appreciation for
diversity and richness (Crane, 1999). It has been found that in Italy, fame comes more easily to
celebrities that emanate a classic elegance that is reflective of the country's cultural ideals
(Crane, 1999).
Cross-Cultural Strategies for Effective Celebrity Endorsements:
A thorough familiarity with cultural variations is necessary for developing efficient cross-
cultural endorsement mechanisms. Today's globalized society makes cultural study more
important than ever before, as consumer goods increasingly span borders and cultures. It is
crucial to investigate issues like language, symbolism, and regional practices. Using local experts
and influencers is crucial for making endorsements that resonate in a certain culture. The pursuit
of cultural authenticity is insufficient for achieving success in global marketing.
It's also important for renowned individuals to learn about other cultures. In modern
society, celebrities have come to represent more than just the brands they endorse. In
order to create a smooth transition, product advocates must be familiar with the local
customs and values. Tolerance and acceptance may be fostered via education, and
celebrities can strengthen their relationships with their worldwide fan bases by
improving their ability to communicate with them.
Ethical Considerations in Celebrity Endorsements:
There is no doubting the power that celebrity endorsements have over the general populace.
Influential figures like brands and celebrities are also subject to ethical scrutiny because of their
status. Celebrity endorsements that are conducted in an ethical manner help to protect both the
endorser's and the brand's reputation by being open, honest, and free of any conflicts of interest.
Transparency in Endorsements: Transparency is the bedrock of an ethical celebrity endorsement
programme. The terms of an endorsement arrangement between a public figure and a business
should be made public knowledge. The Federal Trade Commission (FTC) in the United States
mandates that any paid recommendations be disclosed to consumers (FTC, n.d.; McCracken,
1989).When a business is able to openly communicate with its clients, fraud is reduced and the
brand's reputation is preserved. It's crucial for companies to be transparent like this, informing
consumers of any financial links between themselves and an endorsement.
Authenticity and Genuine Belief: Recommendations based on ethics need to be credible. A
celebrity's endorsement of a product or service should reflect their genuine enthusiasm for it.
According to research (Lafferty & Goldsmith, 2005; Schouten et al., 2020), consumers are more
likely to make a purchase if they feel a recommendation is credible. When the endorser's own
beliefs align with those of the product being promoted, it shows. Brands and celebrities need to
ensure endorsements are genuine to develop trust, credibility, and long-term consumer loyalty.
Avoiding Conflicts of Interest: When there is a potential for a conflict of interest, promoting
celebrities presents ethical challenges. If a famous person promotes ideas that are in conflict with
one another, their credibility may be questioned. Consider the scenario of a celebrity who is
known for their concern for their health but who promotes unhealthy sweets. When customers
witness a celebrity and their favorite brand engaged in a public spat, they tend to lose faith in
both parties (Agrawal & Kamakura, 1995; Till & Shimp, 1998). Brands and celebrities should
think long and hard about the potential benefits and drawbacks of endorsement arrangements
before entering into them.
Importance of Ethical Practices: Ethical celebrity endorsements demonstrate a deeper level of
dedication to consumers than what is required by law. Businesses with integrity demonstrate
they value their customers by acting in their best interests. Ethical recommendations build trust
and goodwill with consumers over time, leading to increased sales and customer retention.
However, dishonest practices can cost businesses money and expose them to public scorn, both
of which can damage their reputations to the point that it may be difficult to win back customers'
confidence. Ethical considerations are not a burden, but rather a long-term investment in the
success of both the promoted product and the celebrity promoting it (McCracken, 1989).
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