Impact of Brand Ambassadors / celebrity endorsement through advertisement in brand building and their influence on consumer behaviour
“Impact of Brand Ambassadors / celebrity endorsement through
advertisement in brand building and their influence on consumer behaviour.”
ABSTRACT
Over the years, many
growing and grown brands have jumped on to celebrity endorsement bandwagon.
Marketers are aware of the power of celebrities in advertisement and branding
and their influence on consumer buying decisions. Endorsement is a medium of
brand communication in which a celebrity acts as the spokesperson of a brand
and certifies the image and position of the brand by extending their
personality, stature, popularity in the market. Celebrity endorsement gives a
brand an appeal. The customer is excited by showing a known face. Celebrity
endorsement provides a distinct differentiation and increases the recall value
of the brand, thereby creating an effective demand.
This research program
focuses on the research question “Impact
of Brand Ambassadors / celebrity endorsement through advertisement in brand
building and their influence on consumer behaviour.” The reason to research
on this question is due to the importance of the celebrity endorsement in the
recent years, also advertising, branding and consumer behaviour in today’s
competitive world.
The objective of the
research is to understand consumer behaviour influenced by celebrity
endorsement advertising technique. To begin, the report examines the literature
about marketing, role of advertising, branding, celebrity endorsement and
consumer behaviour. Following the literature is the research methodology, the
researcher collects the primary data by interviews and questionnaires to assist
in discovering new ideas, diagnosing situations and screening alternatives
which generates insights and will be useful for the exploratory and development
nature of the research.
Analysing the data, the
finding of this research determines how consumers are influenced by celebrity
endorsements and sources of advertising, importance of brand and celebrity
endorsement.
The report contributes to
the celebrity endorsements influencing consumer perception and buying behaviour
by providing a theoretical framework that helps in understanding management
implications and guidelines to the industry.
CHAPTER 1- INTRODUCTION
1.1 Introduction
This dissertation aims to
improve understanding of celebrity endorsements and the impact of celebrity
endorsements / brand ambassadors on building a brand through advertising and
assess the factors that affect consumer buying behaviour .It also shows that
the firms may engage in advertising competition in order to co-ordinate
consumer expectation on their own brand.
Further more, this dissertation
attempts to look into the strategies adopted by the companies towards
advertising, branding. How a brand ambassador or celebrity endorsement can
build an image on the brand and on consumer buying behaviour. The advertising
companies are mainly involved in providing services to big and small profit
making organisation in promoting their products and services.
Almost every profit making
organisation whether big or small needs to advertise its products and service
to survive in this competitive world.
The purpose of this
dissertation is to find out the impact of celebrity endorsement on advertising,
branding and consumer behaviour by collecting primary data through interviews
and distributing questionnaires to the public to know their views.
The researcher intends to
give recommendation and draw conclusions based on the analysis of interviews
and questionnaires.
MARKETING
Most people think that
marketing is only about the advertising or personal selling of goods and
services. Advertising and selling, however, are just two of the many marketing
activities.
In general, marketing
activities are all those associated with identifying the particular wants and
needs of a target market of customers, then going about satisfying those
customers better than the competitors. This involves doing market research on
customers, analyzing their needs, and then making strategic decisions about
product design, pricing, promotion and distribution. (web 5)
Marketing is typically
seen as the task of creating, promoting and delivering goods and services to
consumers and businesses. Marketers are skilled in stimulating demand for a
company’s products. Marketing is a societal process by which individuals and
groups obtain what they need and want through creating, offering, and freely
exchanging products and services of value with others. Marketing has often been
described as ‘the art of selling products,’ but people are surprised when they
hear that the most important part of marketing is not selling. Selling is only
the tip of the marketing iceberg. (Kotler. P, 2005, p-4-8)
Peter Drucker, a leading
management theorist says “There will always, one can assume, be need for some
selling superfluous. The aim of marketing is to know and understand the
customer so well that the product or service fits him well and sells itself.
Ideally, marketing should result in a customer who is ready to buy. All that
should be needed then is to make the product or service available.” (Kotler. P,
2005, p-4-8,)
Advertising
“Advertising is any paid
form of nonpersonal presentation and promotion of ideas, goods, or services by
an identified sponsor.” Advertising include not only business firms, but also
museums, charitable organisations, and Government agencies that direct messages
to target publics. Advertisements are cost-effective way to disseminate
messages, whether to build brand preference or to educate people. (Kotler. P,
2005, p-590)
Advertising is one of the
marketing tools that are composed of many intangible aspects. We can count or
measure the number of advertisements run in various medium like newspaper,
television, radio etc. Advertising must:
Attract the attention of
the target market
Must interest the target
market
Must inform the people
Must stimulate a
significant portion targeted. (Kaufman.C.L, 1987, p53)
Advertising is complex as
there are different advertisers trying to reach so many different types of
audiences. Nine major types of advertising- Brand advertising, retail or local
advertising, political advertising, directory advertising, direct-response
advertising, business to business advertising, institutional advertising,
public service advertising, interactive advertising. (Wells et al, p5-12, 2000)
Functions of advertising-
Provide product and brand
information
Provide incentives to take
action
Provide reminders and
reinforcement
The five players of advertising are the advertiser, the advertising
agency, the media, the vendor and the audience. (Wells et al, p5-12, 2000)
Branding
A brand is a
name, term, sign, symbol or design or combination of them intended to identify
the goods and services of one seller or group sellers and to differentiate them
from those of competitors.
-American
Marketing Association
Ultimately, a
brand is something that resides in the mind of customer.
“A brand is every sign
that is capable of distinguishing the goods or services of a company.” In this
definition, the stress is on ‘sign’ and ‘distinguishing’. A sign may be a word,
picture or form mark. The brand name is that part of the brand that can be
pronounced. A brand name can serve as a characteristic in the recognition of
the branded article. (Riezebos.R et al, p-33,63,85, 2003)
“A brand image is a
subjective mental picture of a brand shared by a group of consumers.” Brand excels at delivering the benefits
customers truly desire. The pricing strategy is also based on customer’s
perception of value. (web 6)
Brand is
properly positioned
Brand is
consistent
Brands are
everywhere
Brands have
clear meaning and personalities to our customers
Brands
automatically trigger reactions in our customers
A great brand
can be well worth the investment
Brands have
economic value
Brand
communicates hidden benefits or quality. Ex - Perfume
(web 6)
Celebrity endorsements / Brand Ambassador
"Brand Ambassador" or “celebrity
endorsing the brand” These people are considered the ones who have the greatest
interest in seeing the company and its products survive and grow. (web 7)
A brand ambassador is much
more than a face of the product. "A diplomat; a representative of an
organization, institution or corporation that best portrays the product or
service." Once considering this definition, the scope of brand ambassadors
spreads and grows into a variety of audiences, each with enormous potential for
influencing others and ensuring brand success. (web 7)
With strong leadership at
the top of an organization, product or service will be given the attention and
resources it deserves to succeed. They also provide the high-level attitude of
belief and commitment to success necessary to motivate employees to back the
company's products. (web 7)
To make sure brand
ambassadors are the key to your success, it is important to arm them with the
knowledge necessary to spread the word about products and services. Company
influencers and representatives should have a strong working knowledge of your
products and should be able to discuss products as they relate to needs in the
market place. And finally, they must be able to speak passionately about
company and share their belief with others. (web 7)
Consumer Behaviour
Consumer behaviour is
defined as activities people undertake when obtaining, consuming and disposing
of products and services. In simple words, Consumer behaviour has traditionally
been thought of as study of ‘why people buy.
There are several
activities under the definition of consumer behaviour- Obtaining, consuming and
disposing.
Obtaining refers to the
activities leading up to and including the purchase or receipt of a product.
Consuming refers to how,
where, when and under what circumstances consumers use products.
Disposing includes how
consumers get rid of products and packaging. (Blackwell et al, p-6-20,2001)
Consumer behaviour can
also be defined as a field of study, focussing on consumer activities.
Recently, researchers and practitioners have focussed on consumption analysis,
why and how people consume in addition to why and how they buy. Successful organisation
understands that consumer behaviour should be the primary focus of every aspect
of firm’s marketing program.
Consumer Behaviour helps
analyse consumer’s increasing influence.
Consumer Behaviour
educates and protects consumers.
Consumer Behaviour helps
formulate public policy.
Consumer Behaviour affects
personal policy. (Blackwell et al, p-6-20,2001)
1.2 Overview of chapters
Overview of chapter 2- Literature review- This chapter
gives you an overview of the meaning of celebrity, celebrity endorsements,
advertising, branding, consumer behaviour, their interrelation, and dependency.
Further it explains the impacts and influences and consumers.
Overview of chapter 3- Research methodology- In this
chapter the research methods are explained and appropriate research method is
chosen and the method carried out in this research is explained like the type
of research, process of research, research strategy. Methods carried to collect
data- primary and secondary, qualitative and quantitative. Survey method being
interviews and questionnaire.
Overview of chapter 4- Data analysis- This is important
and interesting part. The data collected through various means and methods are
classified and analysed to give useful information. The data are represented in
the form of tables, charts, pie-chart and bar diagram. Analysis and
interpretation of the data helps to fulfil the aim and objective of research
and draws conclusion and recommendation.
Overview of chapter 5- Conclusion and recommendation- The
finding of the research are written down. The facts and weak points are noted.
The author puts down conclusion and recommendation on the subject.
1.3 Research Topic
‘Impact of celebrity
endorsements in building brand through advertising and their influence on
consumer behaviour.’
1.4 Aim of research
Aim of the research is to
study the role of celebrity endorsements in advertising, branding and their
affects on consumer buying behaviour.
1.5 Objectives
1.
To understand the role played by brand ambassadors /
celebrity
endorsement.
2.
To understand the role played by advertisement in marketing.
3.
To understand the role played by the companies in promotion
of their products and services.
4.
To know and assess the impact of brand ambassadors /
celebrity endorsement and advertising on brand building.
5.
To critically assess the impact of brand ambassadors /
celebrity endorsements and advertising on consumer buying behaviour.
6.
To analyse why it is necessary for a company to advertise its
products and services.
7.
To evaluate importance of brand building.
8.
To assess the factors that affects consumer buying behaviour.
9.
To evaluate how advertising influences consumer tastes and
preferences.
10. To give appropriate
recommendations and conclusions based on findings.
CHAPTER-2 LITERATURE REVIEW
2.1. Introduction to marketing
We all are exposed to
marketing in one or the other form everyday. Every time we buy or use a
product, go window shopping, watch an advertisement, find a new product or
someone telling about it. Marketing outputs are very familiar and are not as
narrow as people generally know. Marketing is not just advertising, selling or
making people buy things they want or they don’t.
Marketing infact covers a
wide range of absolutely essential business activities that bring us the
products we want them, when we want them, where we want them, with all
information. (Kotler P and Keller K, 2006)
“Marketing is the
management process that is responsible for identifying, anticipating and
satisfying customer requirements profitably”. (CIM, 2001)
“Marketing is the process
of planning and executing the conception, pricing, promotion and distribution
of ideas, goods and services to create exchange and satisfy individual and
organisational objectives”. (AMA, 1985)
A definition that includes
the important elements of both the AMA and CIM definitions, but still embraces
the evolving relationship orientation is offered by Gronroos (1997).
“Marketing is to
establish, maintain and enhance relationship with customers and other partners
at a profit, so that the objectives of the partners, at a profit, so that the
objectives of the parties involved are met. This is achieved by mutual exchange
and fulfilment of promises”. (Gronroos C, 1997)
Marketing management is
the act and science of choosing target markets and getting, keeping and growing
customers through creating, delivering and communicating superior customer
value. (Kottler.P , Keller.K 2006)
Ø Marketing is a management
process.
Ø Marketing fulfills
customer requirement profitably
Ø Marketing identifies and
anticipates customer requirements.
Ø Marketing is about giving
customers what they want
Ø Marketing offers and
exchanges ideas, goods and services.
(Brassington F and Pettit
S, 2006), (Kotler P and Keller K, 2006)
MARKETING MIX
PRODUCT PROMOTION PRICE PROMOTION
Variety Advertising List price Channels
Quality Promotions Discounts Coverage
Design Personal
selling Allowances
Assortments
Features Publicity Payment period Locations
Brand name Direct
selling Credit terms Inventory
Packaging Transport
Services 
Warranties
Source- (Kotler et al, 2001, p98)
THE 4 Ps of Marketing - The four strategies of the
marketing mix (product, price, promotion and place) are interconnected. The
marketing mix is one of the dominant ideas in modern marketing. Action in one
affects decisions in another. It is the set of controllable tactical marketing
tools that blends to give or meet the market needs. Target population must be
first selected and then the strategies are applied towards. Marketing mix
consists of everything that can influence the demand of the product.
PRODUCT- Product can be a tangible object or a service offered by a
company to the target market. A product can be any physical object, services,
person, places, organisation and ideas that are offered to a market for
acquisition, attention, consumption or use that satisfies the customer needs or
wants. There are different product levels depending on the customer value
hierarchy, they are; core benefit, basic product, expected product, augmented
product, potential product.
PRICE- Price is the amount of money charged for a product or
service rendered, it is also the sum of value that consumers exchange for the
benefits of having, using satisfying their needs or wants of the product or
service.
PROMOTION- Promotion is the activities that communicate the merits of
the product or service that persuade the target customer to buy them. Special
promotion offers like cash discount, rebates, offers etc.
PLACE- Place is all the activities that a companies carries to make
the product reach and available to the market. Place is also the distribution
channel and distribution of the product or service in the most advantageous and
best way possible to the target customer. (Kotler et al, 2001, p98), (Kotler P
and Keller K, 2006), (Lancaster G and Massingham L, 1993, p100)
The communication of merits of the product and persuading the customer to
purchase is promotion. The benefits of the product have to be communicated to
the customers for earning profits and gaining sales. The process of
communicating with various form or promotion mix is known as promotion. (Kotler
et al, 2001, p98)
Promotion mix
Promotion mix is the blend of
promotional tools, which are, advertising, sales promotion, personal selling,
sales force, direct marketing and public relations. These promotional tools are
used to communicate or spread awareness to the customers. These tools have
different characteristics and costs. Total marketing communications programme
carried by a company or a business is called the promotional mix. (Kotler et
al, 2001), (Michael J. Barker, 2003)
Advertising
Any paid form of non-personal
communication of ideas or products through the medium or channel like
television, newspapers, magazines, hoardings, posters, radio, cinema etc by an
identified sponsor. Advertising include not only business firms, but also
museums, charitable organisations, and Government agencies that direct messages
to target publics. Advertisements are cost-effective way to disseminate
messages, whether to build brand preference or to educate people. (Kotler. P,
2005, p590,)
The intention of advertisement is to
inform and to persuade. The two basic aspects of advertising are the message that
has to be communicated and how to be communicated. (Keith Crosier, 1998a)
Personal Selling
Personal selling is one of the
effective tools of promotion mix involving an interactive relationship between
the seller and the buyer. It is more effective in building up buyer preference,
conviction and action. (Philip Kotler, 2005, p580 ; Kotler P and Keller K,
2006, p556)
Sales Promotion
Sales promotion is used for short run effects to
promote product offers and to push sagging sales. Through sales promotion,
companies get better, stronger and quicker response from the customers. Ex-
contests, coupons, premiums, offers-buy one get one etc.(Philip Kotler, 2005, p580)
Public relation or Publicity
It is to build good relationship between the public
and the company by favourable publicity, thereby building image. Lower in cost
compared to advertising. It is most of the times the communication of a product,
brand or business by placing information about it in the media without paying
for the time or media directly. (Kotler et al, 2001, p690)
Direct marketing
Direct marketing is an interactive
system of marketing that uses one or more advertising media to effect a
measurable response or transaction at any location. Direct connections with
carefully targeted individual consumers to both obtain an immediate response
and cultivate lasting customer relationships by using telephone, mail, e-mail,
internet, fax etc. to communicate directly with specific consumer. (Bennett P
D, 1995), (Betts et al., CIM, 1998) (Terance A. Shimp, 1997, p386
|
Promotion mix
|
|
|
Advertising
|
Builds awareness, public presentation (impersonal),
Repetition of brand awareness and product helps in positioning and build
customer trust
|
|
Personal Selling
|
Immediate and interactive – lots of communication
between the buyer and seller, sales call are costly. Communicating complex and deeper
product information and features. Relationships can be built up, important if
closing the sale make take a long time.
|
|
Sales Promotion
|
Can stimulate sales by targeting promotional
incentives on particular products. Effective short term promotional tool.
|
|
Public Relations
|
News, stories and features are more authentic and
credible. Cheap way of reaching many customers - if the publicity is achieved
through the right media but lose control.
|
|
Direct Marketing
|
Direct interaction with targeted individual
consumers. Communication can be personalised and activities less visible to
competitors.
|
(David Jobber, 2001),( William G. Zikmund and
Michael d’Amico, 1998), Kotler P and Keller K, 2006, p555-6)
2.2. ADVERTISING
“Advertising is any paid form of non personal presentation and promotion
of ideas, goods and services by an identified sponsor.” (AMA, 1963)
“Advertising is the non-personal communication of marketing related
information to a target audience, usually paid for by the advertiser, and
delivered through the mass media in order to reach the specific objectives of
the sponsor.” (Burnett, 1993)
Developments in magazines, radio and television have had a tremendous
impact of advertising. Apart from marketing, advertising may also serve several
other functions in the economy and in the society. (Bovee C. L and Arens W. L,
1992)
A hierarchy of effects model proposes that ads can move consumers closer
to buying step by step, from being unaware, to knowledge, to liking, to
preference, to desire, to purchase.
The basic functions of
advertising are-
Precipitation- Create awareness and
stimulate needs and wants.
Persuasion- Encourage action and
commitment
Reinforcement- Support customer’s past
decisions
Reminder- Create habit
Advertisings have the ability to add value to the brand as they are
capable of endowing a brand with a symbolic meaning that makes more value in
the consumer’s eye. (Kotler P and Keller K, 2006, p556)
Advertising performs the communication function of a company, which the
company has faith on. The main function of advertising are informing,
persuading, reminding, adding value and assisting other company efforts.
Informing: Advertising makes
consumer aware of brands, new brand, educates about the features and benefits,
builds brand image or forming o it by reaching the mass audience at a low cost
per head. It also increases demand for existing product, teaches new uses of
product and awareness.
Persuading: Advertisements persuades
or try to push the consumers and customers to try the advertised products and
services. At chances there is also demand created for the secondary product of
the brand.
Reminding: Advertisements make the
brand memorable by recalling them, they also remind customers of their
purchases, influences the consumer’s interest in mature brand bears influence
on brand switchers by letting them know about the other.
Assisting other company
efforts:
Advertisement assists other company efforts by carrying the information or
spreading the awareness of sales promotion to consumers(coupons, offers). It
also helps the consumers in recognising the product or brand by showing the
packaging and design on television, hoardings and magazines. (Shimp T. A.,
2000)
Ø Advertising provides an
introduction to the company and its products
Ø Advertising explains the
products new features
Ø Advertisements are more
economical
Ø Advertisements offering
brochures generate leads to sales people
Ø Advertisements tell people
how to use the products and make them aware of their right purchase. (Kotler P
and Keller K, 2006, p556)
Advertisings have the capability to compliment the other promotional mix
elements, like- Delivering sales promotions directly and supporting them
indirectly, carrying public relations messages and announcing public relations
activities, it also presells the salesperson’s product. Thereby advertising
increases sales and profitability. (Burnett, 1993)
The economic impact of advertising can be linked to the opening shot in
billiards, a chain reaction that affects the company that advertises as well as
its competitors, customers and the business community. On the otherside or
broaderscale, advertising is often considered the trigger on mass distribution
system that enables the manufacturers to produce the products in high volume,
at low prices, standardised quality. Advertising add value to products, makes
products more or less expensive, affects total consumer demand, encourages or
discourages competition, narrows or widens consumer choice and affects national
business cycles. Advertising influences in an economy that produces more goods
and services that can be consumed. Advertising is expensive and its effects are
uncertain, moreover sometimes it takes time to impact on consumer behaviour. (Bovee
C. L and Arens W. L, 1992)
Ø To stimulate the
distribution of a product
Ø To lower the overall cost
of sales
Ø To build brand preference
and loyalty
Ø To identify products and
differentiate them from others
Ø To communicate information
about product, its features and its location of sale
Ø To induce consumers to try
new products and to suggest reuse. (Bovee C. L and Arens W. L, 1992)
The magnitude of
advertising
Advertising is a big business. USA’s expenditure on advertisements
alone total to 200 million dollars as of 1998. Some American companies invest
more than 1 billion dollar a year on domestic product. (Coen R. J, 1997)
Advertising is investment
in brand equity bank
Brand’s equity is enhanced by marketing communications that create brand
awareness thereby leading to strong, favourable and unique relation in the
consumer’s memory between brand, feature and its benefits. (Aaker D. A., 1993).
A brand is differentiated from competitive offering from price competition.
(Boulding W, 1994)
Advertising affects on
building brands
Advertising helps to build brands by communicating value and adding
personality. It is only advertising that can do this task well. Advertising is essential
to build consumer perception of brand values in market. (Randall, 1994, p 16)
Advertising cannot be evaluated separately and it is an extricable part
of total brand. The sales of brand are associated with the advertising
expenditure as they are directly proportional. Advertising takes the sales up
and down with the increase and decrease with proportion to the communication
spread to the consumers of the market. Markets have instinctive and correct
feeling that the brand is the most valued property that evaporates unless
supported properly by investment in advertising. (Arnold, D 1993)
2.3. BRAND
‘A brand is a
name, term, sign, symbol or design or combination of them intended to identify
the goods and services of one seller or group sellers and to differentiate them
from those of competitors.’
-American Marketing Association
Ultimately, a
brand is something that resides in the mind of customer.
“A brand is every sign that is
capable of distinguishing the goods or services of a company.” (Riezebos.R et
al, p-33,63,85, 2003)
In this definition, the stress is on ‘sign’ and ‘distinguishing’. A sign
may be a word, picture or form mark. The brand name is that part of the brand
that can be pronounced. A brand name can serve as a characteristic in the
recognition of the branded article. (Riezebos.R et al, p-33,63,85, 2003)
Brands are fundamentally important to the survival and success of many
firms for which companies have to manage them correctly. Strong brands are
powerful and profitable yet there are many challenges and threats continuing
strength and their existence. Branding is a fundamental strategic process that
involves all parts of the firm in its delivery. Brand must always deliver value
which must be defined in consumer terms. Brand has a continuing relationship
with its buyers and users, this may change overtime but the company should
always work on it to maintain it. Branding must be continuously adapted so that
it is both efficient and effective due to the threat of growing competition.
(Randall G, 2000, p1-5)
The connection of Zippo lighters, Swatch watches or Mont
blanc pens. With all the views it feels that a brand is something
different from a product. When Virgin first started, it sold music as a
product. Later the Virgin brand was built up and now is in various fields like
airlines, cola, railways and financial services. It is now definitely a brand.
(Randall G, 2000, p1-5)
A brand has an existence that is more than an actual product or service,
it has a life of its own that feeds on the original product but also carries
its original values and identify into new product areas. (Randall G, 2000,
p1-5)
“A product is something that is made in factory and brand is something
that is bought by a consumer” (Randall G, 2000, p1-5)
It is every human being’s nature to invent and build brand values in each
individual head. We do it with people, we do it with animals and we do it with
inanimate objects. The skill of brand management is to see that each consumer
is offered the right raw materials from which he or she will build the brand as
the brand owner would prefer.(Randall G, 2000, p1-5)
A brand is not an objective fact,
it is made up of a million or more individual and subjective assessments.
(Bullmore, 1999)
Hankinson and Cowking (1993) have described brand definition under six
headings;
1. Visual
2. Perceptual
3. Positioning
4. Added value
5. Image
6. Personality
(Hankinson, G and Cowking, P,1993)
Brand image- Brand image is what exists
in the minds of consumers and the entire information of the brand they have
received by word of mouth, advertising, packaging, experience, service etc.
modified by perception, previous beliefs, social norms and forgetting. Brand
image is what exists.
Brand identity- Brand identity is what
is under control and what is transmitted to the market. A strong brand is one
that has a consistent, coherent identity. (Randall G, 2000, p1-5). Brand
identity consists of twelve dimensions organised around four perspectives- the
brand as product(scope, attributes, quality or value, uses, users, country of
origin), brand as organisation (organisational attributes, local versus
global), brand as person (brand personality, customer relationships), and brand
as symbol (visual imagery and heritage). (Randall G, 2000, p68)
As per Randall, (1993) brands perform five man functions for consumers.
Identity- Brand must identify
itself clearly and unambiguously, so name, legal protection and design elements
are important.
Shorthand summary- The identity should act
as a summary of all the information the consumer holds about the brand.
Security- Brand should guarantee
to provide the benefits expected.
Differentiation- The brand must clearly
differentiate itself from its competitors and shows its uniqueness.
Added value- Brand must offer more
than the generic product. (Randall, G, 1993)
One more view of brand is to excel in their offering product like price
such as Asda, functional benefit such as Toyota
or psychological benefit such as Timotei. (Davidson, H, 1997)
When General Motors (GM) and Toyota both
marketed a car produced by them in joint venture and cars were functionally
identical but were branded as Toyota
and Geo Prizm. In the course of 1990-94, Toyota
were able to sell 200,000 Corollas at US $ 11,000 each and GM were able to sell
only 80,000 and that to with a lower price of US $ 10,700. This shows the
greater power of the Toyota
brand over the other. This shows the perception of quality in consumer’s mind
with respect to brand. (Almquist et al, 1998)
Brands in Takeovers
Nestle made a takeover bid for Rowntree at a premium due to the brand
equity or value by Rowntree. The premium was not paid for the present
performance of the brand but for their future potential. Nestle made kitkat the
truly European brand.
Brand Equity
Brand equity is a set of liabilities and assets which are attached to a
brand, its value, name, symbol of a company to that of the customers. They are
grouped under five categories.
Ø Brand loyalty
Ø Name awareness
Ø Perceived quality
Ø Brand association in
addition to perceived quality
Ø Other proprietary brand
assets-patents, trademarks, channel relationships etc. (Aaker D A, 1991, p8)
2.4. CELEBRITY ENDORSEMENTS / BRAND AMBASSADORS
Celebrities are
individuals who enjoy public acknowledgment by a large share of a certain group
of people. Their attributes like attractiveness, skills, extraordinary
lifestyle are observed; they also differ from the social norm and take pleasure
in a high degree of public awareness. Few classic examples of celebrities
like, Meg Ryan, Pierce Brosnan, models
like Naomi Campbell, Gisele Buendchen, sports persons like Anna Kournikova,
Michael Schumacher entertainers like Oprah Winfrey, Conan O’Brien, and pop
stars e.g. Madonna, David Bowie, Britney Spears and Rihanna and also business class or groups like Donald
Trump, Bill Gates or politicians like Bill Clinton, Tony Blair. Appearances of
celebrities are in different ways. Initially, when they appear in their actual
profession (Tennis players in Wimbledon) like
Anna Kournikova Pete Sampras. Later, their appearance in public by attending
special celebrity events like world premieres of movies and academy awards, in
news, magazines provide information on events and the personal life of
celebrities through mass-media. Celebrities act as spokespeople in advertising
to promote products, services and ideas. (Kambitsis et al. 2002, Tom et al.
1992).
Source- (Web 8)
Celebrities like Britney
Spears, Michael Jackson, Liz Hurley and Tiger Woods are paid billions of
dollars for every contract with the company or brand as they play a major role
in advertising industry. (Daneshvary, Rennae and Schwer, 2000, Kambitsis et al.
2002). For example, Famous Tennis player Venus Williams has been endorsed by
the sportswear manufacturer Reebok International Inc. for $40 million and five
year contract. Advertising with the use of celebrities create enormous
publicity and attention of people. (Ohanian 1991)
Spokespersons are
generally used by companies to deliver their advertising message and convince
consumers of their products or brands. Spokesperson who are popular and are
widely known are endorsed by companies, thereby celebrity endorser (Tom et al.
1992). “A celebrity endorser is an individual who is known by the people for
their achievements in their fields other than the product class endorsed.”
(Friedman and Friedman, 1979, p63).
Actress Catherine Zeta-Jones endorses the perfume manufactured by Elizabeth
Arden (cosmetic manufacturer). Celebrities are endorsed due to their high
influential potential capability and their higher recall and degree of
attention in advertising. Advertising with celebrities create positive feelings
towards brands, more entertaining and increases company’s awareness,
Advertising with celebrities affect consumers brand attitudes and purchase behaviour.
(Solomon 2002)
Celebrity endorsement has
become an extensive form of advertising. It is reported that twenty percent of
all television commercials features a celebrity (Bradly,1996). The impact of
celebrity endorsement on the consumer or viewer’s perception of the endorsed
brand is observed broadly (McCracken, 1989)
The main intention of
advertising is to persuade customers, attempt to modify or change consumer’s
attitude towards brands (Solomon 2002). Celebrity endorsement strategy by
advertisers enables to project an image in terms of persuasiveness,
objectiveness, expertise, and trustworthiness. (Till and Shimp 1998).
Source attractiveness- It is the endorser’s individuality,
physical appearance, likeability, and similarity to the consumer perception,
thereby to the perceived social value (Solomon 2002). Using celebrities or
attractive people in television and print advertising is common practice
followed and has proved to be more successful in influencing customer’s
attitudes and beliefs. (Ohanian 1991)
Many research studies have
showed the relativity between brand and celebrity endorsers and explained the
effectiveness of using them to promote brands. Many of the celebrity
endorsements proved to be successful. (Walker et al. 1992).
|
Celebrity Endorser
|
Company/Product Success
|
(Yes/No)
|
|
Liz Hurley
|
Estee Lauder
|
Yes
|
|
Cindy Crawford
|
Revlon
PepsiCo
|
Yes
Yes
|
|
Bruce Willis
|
Seagrams
|
No
|
|
Michael Jordan
|
Nike
WorldCom
|
Yes
No
|
|
Whitney Houston
|
AT&T
|
No
|
|
Jerry Seinfeld
|
American Express
|
Yes
|
|
Milla Jovovich
|
L’Oreal
|
Yes
|
Source- (Successful and
unsuccessful celebrity endorsements Source, Walker et al. 1992, Till 1998)
It is not enough for a person to be just
famous to endorse (Solomon 2002). Super stars like Bruce Willis and Whitney
Houston who were attractive failed in their endorsements. Celebrity
spokespersons should be knowledgeable, experienced, and qualified to talk about
the product to be effective on consumer. Celebrity’s image and attributes
should matchup with the product or brand (Tom et al. 1992, Daneshvary and
Schwer, 2000, Jones J. P., 1999, p202)
Consumers associate with the endorser and eventually
transfer to the brand. (Kambitsis et al., 2002, p. 160), Meaning transfer model
is suggested by McCracken which are composed of three steps. First, the meaning
associated with the famous person is transferred from the endorser to the brand
or product wherein meanings attributed to the celebrity is associated with the
brand in the mind of consumers. Secondly in the consumption process, the
brand’s meaning is acquired by the customer. Third stage of the model shows the
importance of the consumer’s participation in the process of endorsing brands
with famous persons. (McCracken, 1989)
Meaning transfer in the
endorsement process (Adapted from McCracken 1989)
Celebrities contain a wide range of meanings that involve
demographic categories such as age, status, gender, lifestyle and personality. Consider pop star Madonna, she is
perceived as modern, tough and intense and is linked with the lower middle
class (Walker et al. 1992), similarly Pierce Brosnan (the bond) is considered
as the perfect gentleman. So the celebrities are somewhere linked with the
different meaning of them and are then related to the brand or product. The set
of characteristics of a celebrity expresses different meaning which are useful
in marketing and for the customers who evaluate. The advertising company should
select the celebrities looking at the characteristics in accordance to
consumer’s perception and relativity to the product. (Martin, 1996, p29, Jones
J. P., 1999, p203).
We know that there are celebrities who are endorsing more than a brand
when we see print and television advertisement. This kind of endorsement is
known as multiple brand celebrity endorsement. Golf champion Tiger Woods has
endorsed American Express, Rolex, and Nike. (Tripp et al. 1994).
Promotion of a brand by a celebrity brings a sense of belief
on that brand within the target market and that too for a new product it is
more helpful. Celebrities ensure interest of the target customers by
advertisements and making the advertisement and the brand more attractive and
noticeable. Preference for a brand by a celebrity gives out an influential
message because the celebrity is benefiting from the brand so also the consumer
will be benefited. The stars and their fans share a psychographic and
demographic relation between them. Public relation opportunity is another
priceless benefit due to celebrity endorsement. (web-1)
According to Dean (1999) “The effects of three extrinsic
advertisements are third party endorsement, event sponsorship and brand
popularity on brand evaluation”. Later it was found that endorsement
drastically affected product variables (quality and uniqueness) and image
variable (esteem). (Dean, 1999)
The impact of endorser and corporate credibility does make a
difference on attitude towards the advertisement, brand, and purchase
intentions. In a survey of 152 adult consumers who viewed a fictitious
advertisement for Mobil Oil Company. It was observed that endorser credibility
had its strongest impact on Attitude towards advertisement while corporate
credibility had its strongest impact on attitude towards brand. The findings
suggest that corporate credibility plays a vital role in consumer’s reaction to
advertisements and brands. (Goldsmith et al., 2000)
Looking at the effect of celebrity endorsement on the
prosperity of a company with respect to sales, case of Michael Jordan can be
used as an example. During rumours of Michael Jordan coming back to National
Basketball Association (NBA) in 1995, he was endorsing products of, Nike,
Quaker Oat and Sara Lee, General Mills, McDonalds. Jordan's return to NBA and the
increased visibility of him resulted in increase in the market values of his
client companies with more than $1 billion in stock market value. One can
observe that the major celebrity endorser with rumours or otherwise has an
incredible potential to influence the profitability. (Mathur et al, 1997)
Celebrity advertising provokes purchase among consumers who
are exposed to them and buyers will further spread or communicate product
information through social interaction thereby inducing purchases also among
consumers who are not exposed to the advertising. Different types of buyers
with different decision making processes apply different impacts on the buying
process. Two types of buyers induced by celebrity advertising are rational
buyers and fan buyers. Rational buyers are influenced by the informational side
of the advertising and buy the product if they have high evaluations of the
product’s feature and quality where as fan buyers are influenced by the
emotional along with the informational side of celebrity advertising and create
a strong emotional relation with the celebrity endorsed product. (Kamins et
al,. 1989) (Web 2)
There is also a distinct downside in
using celebrity in endorsing. There are chances of celebrity being convicted,
their image tarnished or proving the promotion or communicated message to be
false (endorsing a brand and using other in real life). Few incidents out of
many which made news in the past decade:
§ Mike Tyson (Boxer)- Convicted on a
rape charge.
§ Michael Jackson (Entertainer)-
Accused on child molestation charges.
§ O.J. Simpson (Football player)-
Indicated for murder. (Shimp T. A., 2000)
The budget or cost for celebrity endorsement is an important
factor. Remuneration could run into millions of rupees for several years or may
also include a profit sharing plan depending on the status of celebrity. (Agrawal
and Kamakura, 1995)
Extreme usage of celebrity is known as lazy advertising, the
content is covered by the celebrity in the advertisement. Associating with the
celebrity does not guarantee sales of a company or a brand. There are chances
of creating conflicts in the mind of consumers due to the conflicts between
brand values and celebrity. Clutter in brand endorsements are important these
days as over exposure of celebrities drops the recall value of brand. Multiple endorsements by
celebrities also lead to confusion in the minds of consumers. (Web 1) (Erdogan et. al., 2001)
Vampire effect is one of the well known drawbacks of
celebrity endorsement where the celebrity is more highlighted in the
advertisement, the celebrity overshadows the product or the brand. Some viewers
do not concentrate on the brand or forget the brand the celebrity is endorsing.
(Web 1) (Erdogan et. al., 2001, Tripp et al. 1994)
Celebrity trap and celebrity credibility are the other types
of drawback. In celebrity trap, the celebrity becomes an addiction for the
company or marketing team to advertise, also finding a substitute becomes
difficult by the company. In celebrity credibility, if the credibility of the
celebrity is lost due to any problem, scandal, embarrassing situation or
anything negative caught on the camera or on news. For ex- “Air Jordan generated revenue sales of 130 million
dollars in the first year and in the second year sales dropped miserably as Jordan
missed 62 games due to broken foot.” (Web 1)
2.5. CONSUMER BUYING BEHAVIOUR
Customer behaviour is the mental and physical activities carried by
business and house hold customers resulting in decisions and actions to
persuade, pay for, purchase and use pf products and services. (Sheth et al.,
1999, p 4-5)
Consumer behaviour
theorists have classified concepts of consumer behaviour into psychology- study
of individual, sociology- the study of groups and social psychology- the study
of how an individual operates in groups and where the individual acts for their
satisfaction or benefits in the purchase of goods or services. (Schiffman and
Kanuk, 2000, p 5-8)
Consumers are likely to purchase impulsively,
they are influenced by advertisers and role models, situation, emotions and
their moods apart from influence from family and friends. Hence consumer behaviour
is the over all factors combined that reflect in cognitive and emotional
aspects of consumer decision making. (Schiffman and Kanuk, 2000, p 5-8)
Decision making process
can be viewed at three distinct stages – input stage, process stage and output
stage.
Input stage influences consumer’s recognition of product need and
consists of two major sources of information; the firm’s marketing efforts
being product, price, promotion and place of purchase and external social
influences such as family, friends, neighbours, social class, cultural and
subcultural.
Process stage focuses on how consumers make decisions. Each
individual psychological factors like motivation, perception, learning,
personality and attitudes an how these influence or affect the consumer’s
recognition of need, prepurchase search for information and evaluation of
alternatives.
The output stage consists of two closely related post decision activity
of consumer namely; purchase behaviour and post purchase evaluation. (Schiffman
and Kanuk, 2000, p 5-8)
Consumer goes through
various steps at each point of their buying process. The process can be of all
the stages or any one of them and they even might end up not buying (only
browsing).(Web 3) The stages are :
Problem Recognition - The buying process
begins when the buyer notices or recognises his problem, needs or wants. Normal
needs like hunger, thirst or sex will drive the consumer. The buying can also
be stimulated by the marketer through product information like freshly baked
bread at a bakery or a commercial for a new pair of shoes recognising the
consumer that he need a new pair of shoes.
Information search – An aroused or driven consumer will be looking for
information (where to buy).The consumer information can be distinguished into
four groups:
Personal sources - Family,
friends or neighbours.
Commercial sources –
Advertising, sales person, displays, dealers, packaging.
Public sources – mass
media, consumer rating organisation
Experiential sources –
Handling, examining, using the product.
A successful information
search leaves a consumer with possible alternatives.
Evaluation of Alternatives – At this stage the
consumer looks for the alternatives of the product, evaluating the products
with their differences, attributes or ranking or his exact need. If a customer
is looking to buy a TV or any other entertainment product, he has alternatives
of other brands or product.
Purchase decision – After evaluating between
the alternatives, the consumer can choose the right with regard to their need.
Also there are consumers who just make a decision and proceed to the next
stage. At this stage consumer might also modify, postpone or delay buying.
Purchase – The consumer decides to buy and purchases.
Post-Purchase behaviour - Satisfaction or
Dissatisfaction of the consumer. Satisfaction of consumer might lead to
customer retention, brand loyalty and reference group. Dissatisfied customer
might lead to brand switching, sales return, poor ranking of the product. (Philip
Kotler, 2005, p204), (Web 3)
A consumer purchase
decision will be affected by the following three factors:
Personal
Psychological
Social
The marketer must be
conscious of these factors in order to develop an appropriate marketing mix for
its target market.
Demographic factors like
age, sex, race, etc.
Decision taking person in
the family.
Young buyers, personal
buying.
Psychological
factors
(Web 3)
Motives
A motive is an internal
persuading force that pushes a person's activities toward satisfying a need.
The actions are effected by a set of motives. Maslow’s hierarchy of needs
states the stages of human need.
§
Basic
need
§
Safety
need
§
Social
need
§
Esteem
need
§
Self-Actualisation (Philip Kotler, 2005, p196), (Web 3)
Perception is the process
where an individual selects, organises and interprets stimuli into a coherent
and meaningful picture. Interpreting information is based on what is already
familiar or perceived in the memory of the buyer. (Schiffman and Kanuk, 2000, p 122)
Ability and Knowledge
Change in buyer behaviour
can be bought by information and experience of the product. Therefore to change
consumer’s behaviour about the product, giving them updates, free sample etc
could be beneficial. (Web 3)
Attitudes
An individual gains
attitudes through experience and interaction with other people. It is the
attitude shown towards buying an object. A consumer attitude toward a firm and
its products has great impact on success or failure of the company’s marketing
strategy. Attitude depends on the personality and lifestyle of the consumer. An
attitude toward buying an expensive car or buying a BMW can vary. (Schiffman
and Kanuk, 2000, p 200-209), (Web 3)
Personality
The internal behaviours
and traits make a person unique, which arrives from a person's heredity,
personal experience or early childhood experience. The nature of personality
varies with individuals like compulsiveness, self confidence, self image,
friendliness, adaptability, ambitiousness, dogmatism, authoritarianism,
introversion, extroversion, aggressiveness, competitiveness, brand personality
etc. (Schiffman and Kanuk, 2000, p 94-96), (Web 3)
Lifestyles are a shift
towards personal living and individualism and a preference for a healthy,
natural lifestyle.
Lifestyles are the
consistent way of living followed by people in their lives.
(Web-3)
Social Factors
Consumer wants, learning,
motives that are influenced by opinion leaders, person's family, reference
groups, social class and culture. (Web 3)
Opinion leaders
Marketers try to attract
opinion leaders by using celebrities to market their products. Michael Jordon
(Nike, McDonalds) Ex- Michael Jackson, OJ Simpson, Chevy
Chase. (Web 3)
Roles and Family Influences
Things a person should do
based on the expectations within a group. People have many roles to play like
husband, father, employer. Family is the most basic group a person belongs.
(Web 3) The Family life cycle goes through stages where each stage creates
different consumer demands:
·
Bachelor
stage
·
Newly
married
·
Full
nest I,
·
Full
nest II
·
Full
nest III
·
Empty
nest I
·
Empty
nest II
·
Solitary
survivor, still at work
·
Solitary
survivor, retired
·
Modernized
life cycle includes divorced and no children. (Philip Kotler, 2005, p191)
Individual relates himself
with the group to an extent that he takes on many of the attitudes, values or behaviours
of the group. Any group that influence a person’s attitude or buying behaviour
positively or negatively. The degree to which a reference group can affect a
purchase decision depends on an individual’s susceptibility to reference group.
(Web 3)
Social Class
Social class is a range of
social positions on which each member of society can be placed. Social class
influences buying aspects of our lives. Social class is division of members of
a society into a hierarchy of distinct status, class where members of each
class have relatively the same status and members of all other classes have
either more or less status. (Schiffman and Kanuk, 2000, p 297) (Web-3)
Culture and Sub-culture
Culture is the sum total
beliefs, values, ideas, attitudes and customs that serve to direct the consumer
behaviour of a particular society. These cultures are accepted by a homogenous
group of people and transmitted to the next generation. Culture is shared,
ritual, dynamic Culture shows what people wear, reside, eat and travel.
Different societies have different cultural values, different levels of needs.
(Web-3)
Culture can be further
classified into subcultures
Subculture is a distinct cultural group that exists as an identifiable
segment within a larger, more complex society. Geographic regions and human
characteristics such as age, gender, race, ethnic background (Schiffman and
Kanuk, 2000, p 322,346) and (Web3)
Chapter- 3 RESEARCH
METHODOLOGY
3.1 Introduction
A good research of project
is dependent on the way the research is carried out. This chapter describes
about how the research has been carried out in collecting data effectively and
explains the methods, process, objectives and strategy adopted in the research.
It describes the methods adopted in order to achieve the aim of the
dissertation using different research approaches. The methods and procedures
followed to collect data are also explained. This chapter also mentions the
advantages and disadvantages of the methods used in the research.
This chapter is planned to
introduce the study of research methods as part of market research. Market
research is a specialist activity involved in collecting data and information
through questionnaires and interviews. Different topics are highlighted for
which research techniques are used to gather data and information to assist
decision making. The limitations of research methods are also recognised. The
direction of a research project is influenced by the quality of secondary data.
This data which already exists may provide some answers for the researcher. The
next stage of research is the collection of primary data which is data
collected to find answers to the problem. Data collected is both qualitative
and quantitative. Qualitative and quantitative methods are explained in the
further unit.
Research methodology
Research methodology
involves a compromise between a choices and options because of the numerous
approaches to management research. (Gill and Johnson, 1997). The purpose of
research is to review and synthesise existing knowledge, investigate some
existing situation or a problem, explore and analyse general issues and gain
knowledge. (Hussey J. and Hussey R., 1997, p2). Research methods are variety of
techniques adopted when studying a specific phenomenon. (Kumar, Ranjit, 1999,
p104)
3.2. Objective or purpose of research
Exploratory, descriptive,
analytical and predictive are the different kinds of research objectives.
Exploratory research is conducted when there are no earlier studies for
information and to study issue or a problem. It is to gather initial
information that will help to define problems better and suggest theory. Descriptive research describes the phenomena
as they are or exist. It describes marketing problems, situations such as
market potential for a product or service, demographics and attitudes of a
consumer. Analytical or casual research is done to test hypothesis of cause and
effect relationships. Predictive research is carried to find what is happening
in a particular situation and also answers events in the future for how, why
and where. (Hussey J. and Hussey R., 1997, p5-8, Kotler et al, 2001, p273)
Here the researcher
carries the descriptive kind of research, as the objective is to find the
influence of celebrity endorsement (brand ambassadors), advertising, branding
and their impact towards consumer buying behaviour and their attitudes.
3.3. Research strategy
Deductive research and
inductive research
Deductive research is a
study that is conceptual and theoretical in structure and then tested by
empirical observation; particular instances are deduced from general inferences.
Deductive method is referred to as moving from general topic to particular
topic. For ex – Reading
about theory and then researching the particular theory at one place. (Hussey
J. and Hussey R., 1997, p2)
Inductive research is a
study in which theory is developed from the observation of empirical reality
where general inferences are induced from particular instances. This research
logic states it is from a specific topic to general. (Hussey J. and Hussey R.,
1997, p2)
The researcher follows the
deductive research strategy, where the general topic of advertising, branding
and consumer behaviour is studied and observed under a particular topic of
celebrity endorsements.
3.4. Quantitative and Qualitative approach
"The numerical
representation and manipulative of observations for the purpose of describing
and explaining the phenomena that those observations reflect.” (Hussey,J and
Hussey,R., 1997)
A quantitative research is
one in which the researcher primarily uses post positivist claims for
developing and employs strategies of inquiry such as experiments, surveys and
collects data on predetermined instruments that results in providing
statistical data. (John W. Creswell, 2003, p18)
Quantitative data is
concerned with the collection of data, which can operate statistics and other
numerical information by getting the facts, which then have the ability to make
predictions and test theory. This is important when statistics are the main
body of the research, which can be used when making decisions in the times of
uncertainty. (Hussey,J and Hussey.,R
1997)
“Qualitative research
method is data collection and analysis from either a deductive or an inductive
perspective in order to be able to analyze your data rigorously and draw
verifiable conclusions from them” (Saunders et al, 2005)
A qualitative approach is
one in which the researcher often makes knowledge claims based primarily on
participatory perspectives. It uses the strategy of inquiry such as
phenomenologies, narratives, ethnographies, theory studies or case studies. The
researcher collects data from open ended and emerging data to develop themes.
(John W. Creswell, 2003). Qualitative research is concerned with the
development of explanations, in order to understand the reasons and motivations
of social phenomena (Hussey,J and Hussey,R., 1997).
Qualitative research plays
an important role in the collection of data in order to understand human behaviour.
This method involves direct interaction with individuals on a one-one basis or
within a group, this provides information on people's attitudes and
satisfactions which can be used to improve working conditions, facilities,
services and so on. (Saunders et al, 2005: Creswell J.W., 2003).
To define the exact roles
and uses of quantitative and qualitative research can be problematic (Saunders
et al, 2005) since both research approaches have different qualities and
features - which can be applied to different kind of researches in order to
acquire different results.
To help overcome this issue, Dey (1993), Healey
& Rawlinson (1994) (cited by Saunders et al, 2005) along with Hussey,J and
Hussey,R., (1997), have identified distinct differences between quantitative
and qualitative data.
|
Quantitative Research
|
Qualitative Research
|
|
Produces quantitative
data
|
Produces qualitative
data
|
|
Uses large samples
|
Uses small groups
|
|
Used to test the
hypothesis
|
Used to generate
theories
|
|
Data is high, specific
and precise
|
Data is rich and
subjective
|
|
Location is artificial
|
Location is natural
|
|
Validity is low
|
Validity is high
|
|
Reliability is high
|
Reliability is low
|
|
Generalizes sample to
population
|
Generalizes from setting
to another
|
|
Analysis conducted
through the use of diagrams and data
|
Analysis conducted
through the use of conceptualization
|
|
Using surveys
(questionnaires)
|
Using interviews,
observations
|
Table: Differences between
Quantitative and Qualitative Research
Source: Dey (1993), Healy
& Rawlinson (1994) (cited by Saunders et al, 1997); (Hussey,J and
Hussey,R., 1997)
The mixture of the two
approaches, when collecting and analyzing data can give a much broader picture
and can often complement the research problem or issue (Hussey,J and Hussey,R,
1997). Saunders et al (2005), has a different perspective that uses a
combination of both quantitative and qualitative research methods together for
collecting data, since questionnaire surveys can be accompanied by in-depth
interviews would provide more advantageous results.
3.5. Mixed method
The research incorporated
within this dissertation consists of both quantitative and qualitative research
techniques. The reason for incorporating both techniques within this research
was to make sure to obtain a true reflection of the current situation of
perception of both common people and the corporate involved. (Saunders et al,
2005: Creswell J.W., 2003).
According
to Hammersley (1996), “Triangulation refers to the use of quantitative research
to corroborate qualitative research or vive versa.” Triangulation is an
important concept in research. It is when a researcher uses two or more than
two techniques or methods in collecting data on topic like questionnaires,
interviews and secondary research to show similarities and findings across the
topic to support the reliability and validity of work. (Karen Hucker, 2001)
The
researcher collects data through questionnaires and interviews to analyse which
are quantitative and qualitative to gather rich information and to help in
building strong information, thereby triangulation.
3.6. Primary and secondary data
There
are two main sources of data, primary and secondary. Primary data is the data
collected at source like surveys and experiments. Survey obtained in an
uncontrolled situation by asking question or making observation and
experimental data obtained in a controlled situation by making experiments.
Secondary
data is the data that already exist. Secondary data are data collected from
books, documents, published statistics, reports, newspapers etc. When data is
classified and analysed it becomes useful information. Secondary data that has
been collected can be analysed in different ways depending on the nature of the
research, but the objective is to analyse them for a new purpose than for what
they were originally collected. Also secondary data need not be quantitative. (Hussey,J and Hussey,R.,
1997, p149-150; Hammersley,B., 1996)
The researcher has chosen to use questionnaire
(quantitative) and interview (qualitative) method to collect the necessary
primary data. The researcher has used electronic journals, websites, books, business
reports, newspapers and the research journals to collect the relevant material.
And this secondary data has been used to analyze the findings from the findings
from the primary research.
3.7. Survey
“A
survey is a positivistic methodology where a sample of subjects is drawn from a
population and studied to make inferences about the population”. Critical stage
of survey is to select the representative sample with respect to the research. (Hussey,J and Hussey,R.,
1997 p63) There are three types of
survey approaches, mail, telephone, face to face and there is no ‘best’ way of
survey method. The unique feature of the survey method is its
combination of a commitment to a breadth of study, a focus on the picture at a
given point in time, and a dependence on practical data.
(Saunders et. al., 2005)
Advantages of Survey Method
§ Facilitates researcher to
collect practical data.
§ The data collected by this
method is structured and therefore it needs less analysis.
§ An economical method
§ Enables the researcher to
frame generalizations depending on the size of the sample even though the
sample size is very low. (Saunders et. al., 2005)
§ Data may not be correct
due to partiality opinions of the respondents.
§
The results depend largely on the participant motivation.
(Saunders et. al., 2005)
Questionnaire is data
collecting technique where a person is asked to respond to the same set of
questions in a predetermined order. In a questionnaire respondents read the questions,
interpret what is expected and then write or select the answers as they are
usually close ended. (Saunders et. al., 2005, p298)
A questionnaire should be
developed in an interactive style which should make the respondents feel its
interactive kind. The layout of the questionnaire should be neat, presentable,
simple, sequential and understandable and able to answer the researcher’s
objectives of data. (Saunders et. al., 2005, p298-305)
Advantages of questionnaire
§ Less expensive, save time.
§ Offers great anonymity as
there is no face to face interaction between the researcher and the respondent.
§ Disadvantage of
questionnaire
§ Everyone who receives a
questionnaire does not return it, thereby self selecting bias.
§ If respondents do not
understand the question, there is no opportunity for them to clarify the
meaning. (Kumar, R., 1999, p115)
The researcher has framed
a questionnaire in order to analyse the behaviour of consumer with respect to
celebrity endorsement and their interrelation of advertising and branding. The
questionnaire were distributed in random over different areas and were also
filled with the researcher himself along with the public. The questionnaires
were also e-mailed to people as it being one of the best ways of collecting the
data. Questionnaires sent through e-mail had a good response rate. About 200
questionnaires were distributed targeting different consumers expecting around
75% response. The questions were framed in sequential manner so that analysing
them with respect to gender, age group and income level and attitudes and
behaviour could be known.
Limitation of questionnaire
§ Even with best planning,
get limited returns.
§ Information can be
superficial
§ Imbalanced sample even
though distributed randomly.
§ Filled questionnaires
received were only 75% of the total distributed. (Saunders et. al., 2005)
Questionnaire and
interview questions attached at the appendix.
Interview is
an in-depth survey that attempts to obtain in-depth evidence from a relatively
small number of informants. They advocate that such an approach allows the
researcher “to seek new insights” so that the phenomena can be explored whilst
gathering explanatory and descriptive material. Interviews were carried out to
identify the factors that have an impact on the use of the system and therefore
an impact on the culture. (Avison et al., 2001)
There are many
types of interview; the most common of these are unstructured, semi-structured
and structured interviews. But the researcher will be using the semi structured
interviews; it is the most common type of interview used in qualitative
research and quantitative. In this type of interview, the researcher would want
to know specific information which can be compared to the information collected
through other interviews. The researcher also wants the interview to remain
flexible so that other important information can still arise(Saunders et. al., 2005; Kumar, R., 1999).
Semi-structured interviews
will have a list of themes and question to be covered that may vary interview
to interview. Semi-structured interviews are usually conducted with a fairly
open framework which allows focussed, conversational, two way communication. It
provides a chance for more generalised questions and an informal way of
extracting data. There is flexibility between the interviewer and interviewee.
There are chances of developing questions and clarification at the time of
interview. (Saunders et. al., 2005, p265-270)
Advantages
§ Useful for collecting
in-depth information by probing further additional questions that arise from
responses.
§ These interviews are most
appropriate for studying complex and sensitive areas.
§ Encourages two way
communications
Disadvantages
§ Quality of the data
depends on the quality of interaction between the interviewer and interviewee.
§ May be expensive and time
consuming. (Saunders et. al., 2005, p268; (Kumar, R., 1999)
The interview
questions consisted of 8 open ended questions which were easy to answer and
were helpful in collecting required data. It was very simple to understand and
they were straight forward as aims of the research have been clearly directed. The
topic of semi-structured interviews helps to answer the research question and
aims to support the objectives of the research.
Three managers were interviewed to know about their perspectives
regarding advertising, branding, celebrity endorsement and consumer behaviour.
The interview questions are:
1.
What role does advertisement play in your company and how
important are they?
2.
Is brand building necessary for the success of a company and
how are they advantageous?
3.
How do you retain consumers with respect to your promotional
activities?
4.
What do you say about endorsing a celebrity?
5.
Are advertisements with celebrity endorsement useful and
effective in a company? Are they beneficial?
6.
What are the strategies adopted by your company to influence
customer’s perception towards your brand?
7.
Is it fair using the same celebrity to endorse a brand who
has already endorsed other brand
8.
Where do you see your company with respect to competitors and
how is your growth in today’s world? What are the factors?
3.8. Basic and applied research
Classification of research
divides into applied and basic research. Basic research is fundamental or pure
research where as applied research is a research which has been designed to
apply its finding to solve a specific or existing problem. Basic research is
less specific and research conducted primarily to improve understanding general
issues. Basic research is regarded as the most academic form of research as its
aim is to make contribution to the knowledge. (Hussey,J and Hussey,R., 1997
p5-7)
The researcher research is
basic as the research subject or topic is an attempt to improve understanding
general issues or theory and contribution to the knowledge.
3.9. Summary
In chapter 3, the
researcher defines research methods and methodology and has explained research
purpose, process, type, strategy adopted. The research problem, aim and
objective defined and research methodology adopted were defined. The purpose of
the research being descriptive research, deductive strategy, mixed methodology
where both qualitative and quantitative, thereby triangulation, primary and
secondary data collected through different sources being
surveys-questionnaires, interviews-semi-structured and books, journals,
newspapers and internet. Limitations to the methodology were noted and the
research addressed the participant’s rights and responsibilities regarding
ethical collection of data. Based on this methodology the data collected will
be examined and analysed in the next chapter (Chapter- 4).
Chapter- 4 DATA ANALYSIS
4.1. Introduction
In chapter 3, the
methodology used to collect the data were studied in detail to answer the
research objective. In this chapter the data collected from companies through
interviews and distributed questionnaires will be examined and analysed.
Thereby the aim of the chapter 4 is to analyse the data availed by the
interview and questionnaire. Firstly, it will describe the availed data from
celebrity endorsing company, celebrity not endorsing company and the
advertising company to understand the different perspectives of the companies
with respect to celebrity endorsement and their impact on advertising, branding
and consumer buying behaviour. Secondly, the questionnaires collected from
people by random sampling will be analysed and interpreted to know their
perspectives, attitudes and views about the celebrity endorsements, branding
and advertising.
This chapter has two
sections, the first section analyses and interprets the data from interviews
and the second section analyses and interprets the data collected through
questionnaire.
Based on the analysis,
conclusion will be drawn which shows the influence of celebrity endorsing in
advertising, branding and consumer buying behaviour.
4.2 The Interview
The researcher has
interviewed two marketing manager and an advertising agency director for the
purpose of primary research. The two managers were chosen from different
company where one of the companies endorses a celebrity and the other does not.
Information collected from
the officials will be used to analyse their view on the celebrity endorsements,
consumer behaviour, branding and advertising. The interdependence,
inter-relativity will be understood and what steps or strategies have been
carried out by the company.
The researcher first
interviewed with celebrity endorsing company (Exide Industries Ltd.) manager,
second with non endorsing company (Tata Green Batteries) manager and then with
advertising agency director (M7infosolutions).
Exide Industries Ltd. is a
battery manufacturing company and is the market leaders in India. Exide Industries Ltd is one
of the oldest battery manufacturer and wide spread across the world. They
have endorsed Mahendra Singh Dhoni, a well known cricket player as their Brand
ambassador which has helped them with effective advertising and growth in the
market with respect to brand image and sales. (Web 9)
Tata Green Batteries are
the new entrants in the battery field but are one of the oldest companies in
auto components. ‘Tata’ is one of the world famous Multinational Indian
Company. Their entry in battery field has created fear among other players in
the market. They are market leaders in many other product lines. They have
aggressive marketing strategy. They are adopting different strategies and
techniques in advertising, Tata Green Batteries are growing at a good pace
understanding the market potential. (Web 10)
Celebrity endorsing
company manager – Manager 1 (Exide
Industries Ltd)
Celebrity not endorsing
company manager – Manager 2 (Tata Green
Batteries)
Questions:
Q.1.What role does advertisement play in your company and how
important are they?
Manager 1 - Advertisements are very basic and vital part of today’s
world of business, it is as important as a product package which is important
to sell the product and brand it. Advertisements help us to reach or
communicate large number of consumers through medium. Be on par with
competitors.
Manager 2 - Advertising is our major promotional tool that helps our
sale at every stage of the product by communicating the message to the target
consumers. Advertising keeps our consumers updated and informative of our
company and products. It is nearly impossible to sell our products without
advertisements.
Analysing the above
statements the researcher found advertising as an essential and vital for a
company’s success and growth as it helps in selling the product. Advertising
makes the consumer aware of the product, and repeated advertisements helps in
familiarising the brand and easy to be recalled. Advertising also helps in
building brand and fight competition.
Q. 2. Is brand building necessary for the success of a company
and how are they advantageous?
Manager 1 – Building brand is necessary if the product you are selling
needs to grow and be placed at certain level of consumer perception. Brand
talks about the company and the place they have made in the market. Brand is
not just the name, it’s the whole stake or value of a company. Our product has
good sales due to its brand value, since most of the consumers do not like to
negotiate with quality.
Manager 2 – Brand building is very important at every stage of the product
life, especially when you are growing and reaching heights, even though built,
it has to be maintained well, a single mistake can take it down. Building brand
is not just when company calls it. It is when people accept and rate them. They
see our products at an extraordinary level. Brand building helps in long run of
a business and good sales with a better market share.
Analysing the answers from
the manager’s statements, the researcher finds that brand plays a major role,
as it influences people’s perception towards the company’s product and company
itself, it brings a pride even among employees apart from consumers. Brand
influences consumer to buy the product and it brings in trust in the company
and the product. Consumers feel the products are of better standards. Building
brand helps companies to grow and run for a long time.
Q.3. How do you retain
consumers with respect to your promotional activities?
Manager 1 – Being innovative and promoting our product has been
running in our company from long time. Advertising
with various techniques, hoardings, transit advertisements and sponsoring
certain events. We remind and try to make our brand much familiar with
advertising. We have good and recognised customer service.
Manager 2 – Advertising is the most chosen way, where we communicate
the latest innovations and offers to our consumers, we concentrate on customer
retention. We provide more discount to the customer if they have previously
purchased with us, by giving them a privilege card and we run campaigns. We
keep their records saved when a customer buys the product from us and we keep
customers updated by mails, emails, messages or by calling them through phones.
From above, researcher
analyses that advertising is the most chosen way by the companies to remind and
recall their product. They try almost all way to reach people by doing various
promotions, they also have offers, price discounts. Companies do maintain data
base of customers and try to keep in touch informing about the new products and
service.
Q.4. What do you say about
endorsing a celebrity?
Manager 1 – Its one of the good technique to advertise.
Celebrities have been popular and recognised all over the world and endorsing
them for a brand or a company are always advantageous. It is advantageous to
the brand as they also get more popular and noticed by people.
Manager 2 – Celebrity endorsement have been more popular these
days. It depends on the company and the brand. Few prefer their brand to be
associated with their celebrity or their brand having a known face and others
use different techniques. Companies use different techniques relating to their
growth, competition and competitors.
Analysing the answers,
researcher feels celebrity endorsements does have value and a good strategy adopted
in popularising their product or brand or a company, however depends on the
company, how big they are and what strategy they adopt to advertise and grow.
It also depends on the kind of market, competitors and competition.
Q.5. Are advertisements
with celebrity endorsement useful and effective in a company? Are they
beneficial?
Manager 1 – Celebrity endorsement are very much useful and
effective for a company. They decrease the marketing field sales person’s job
in pushing the brand, instead it helps in building pull strategy. Endorsing
celebrity helps us to utilize them to advertise through all medium like
hoarding, print ads, radio and television. Their news in the paper also helps
our consumer in recalling the brand.
Manager 2 – Celebrities are popular and most familiar to people,
using them to advertise is both useful and beneficial, it would be one among
our strategy to influence our customers. Advertising using celebrities makes
advertisement attractive and also helps in building trust and faith in the
product as they are someway connected with customer’s emotions.
Analysing the above,
researcher is competent of analysing that celebrity endorsements are useful,
effective and beneficial. They influence customers trust on the brand and the
way they look at the brand or the product. Companies can use their endorsed
celebrity to advertise through different medium. Popularity of the celebrity is
also more advantageous for the company.
Q.6. What are the strategies adopted by your company to
influence customer’s perception towards your brand?
Manager 1 – We have been using all the strategies in accordance to
growth and market need. We are using most of the promotional tools to influence
customer’s perception but it is only to an extent as it is upto consumers to
perceive in their way. We have endorsed a popular sports player as our brand
ambassador and have been advertising through all medium. This has bought a
significant growth in sales and brand value due to the popularity of the
celebrity and his image in the market. We are now positioned at a better place
among the competitors and consumer’s trust and faith has increased on the
brand.
Manager 2 – Our Company has a very good marketing team all across
the country, we are building more stores and franchisees so that we can provide
best customer support and service. Advertising being our long time tool, they
are essential and a must. Delivering better quality at all times have been our
motto. All different strategies help in developing the image of the brand,
thereby perception of them.
We are also planning to
endorse a celebrity so that he / she can be the face of our brand, which is yet
to be finalised. Our close competitor has endorsed a celebrity and we have seen
their increase in sales and familiarity of brand among people. To keep up with
time, technology and competition is today’s business. Performance and
achievement at every stage is vital.
As per researcher
analysis, endorsing celebrity has bought a significant change in the company
and also there is change in customer perception. Using different strategies are
very much required for survival and long run of a company. Market competition
and competitors also play an important role.
Q.7. Is it fair using the
same celebrity to endorse a brand who has already endorsed other brand?
Manager 1 – It all depends on the celebrity you are endorsing and
how popular they are? A big star, most popular endorsing few products or brand
are fine but an average star endorsing more would not be beneficial as their
recall rate would be less. Our brand ambassador has endorsed other brand but
the other endorsed brands by our celebrity are not related to our product or
product line. So it is fine with our brand.
Manager 2 – The celebrity we will be using will be a fresher and
upcoming star, as said before we are not leaking the news until its finalised.
We would not like to endorse a celebrity who is endorsing many brands and
create confusion in the market. If the star is very popular and favourite of
people, endorsing them who have endorsed other brands is fair.
As per researcher and
analysing the above statements, it is fair to endorse a celebrity who has
already endorsed other brands as long as the other brands are of different
line, if celebrities are very popular and are capable of reaching large mass.
Q.8. Where do you see your
company with respect to competitors and how is your growth in today’s world?
Manager 1 – It is being tough day by day, competitors entering the
market, so also the market of consumers. We have been working hard on
delivering better quality product with time, being innovative. We are market
leader as of now and are striving to keep it going with all the required
strategies.
Manager 2 – Our Company is an umbrella brand. We are known for our diversification
and achievement in every sector. We have been a threat to other competitors who
are already in that business. Our growth is at good rate with respect to the
time calculated and are expected to be close to market leaders with in another
five years.
The researcher is
competent of analysing that business today is neck to neck competitive, every
company adopts different strategies to survive and run business. Capturing the
market is important as growth being the most essential part of the firm.
INTERVIEW-(Advertising Company
director)
Q.1. What role does advertisement play and how important are
they?
Advertisement plays more
roles than just communicating a brand’s offer, advertisement can trigger
word-of-mouth communication, it enhances brand equity and it cherishes brand
royalty and upholds celebrity endorsement. Advertisements are also designed to
generate increased consumption of products and services through the creation
and reinforcement of brand image and brand loyalty. Advertisements are paramount
of importance with respect to brands of any form. Advertising ranks second to
customer satisfaction when stated in terms of functions.
Q.2. Does advertisement help in brand building and are they
necessary for the success of a company and how are they advantageous?
Advertising has a central
role to play in developing brand image whether at the corporate, retail or
product level. Advertisements communicate to consumers why a consumer must use
a particular brand, what advantages a brand has over other brands through
picturing and giving psychological effects influencing a consumer imagining him
or her at the place. Advertising is a basic need and obviously advantages for a
company as they communicate brand attributes like brand style, brand personality,
brand culture, service, etc. It informs consumers of the functional
capabilities of the brand while simultaneously imbuing the brand with symbolic
values and meanings relevant to the consumer.
Q.3. What do you think about celebrity endorsements and how are
they useful for a company?
Celebrity endorsements are
typically used as a brand-value proposition, it’s a unique key driver of the
company’s strategy, operations, services, and product development, and
sometimes celebrity endorsements are done to save the reputation of a dying
brand. Ideally, celebrity endorsements are “Testimonials” by public figure such
as sports personalities or actors, but under crisis situation the CEO or
Director of a company plays the role of Celebrity to instil confidence in a particular
brand or the whole line of brands.
Q.4. Is it fair using the same celebrity to endorse a brand
who has already endorsed other brands?
A celebrity can endorse as
many products as he/she wishes as long as they do not violate certain basic
branding laws such as:
§ The celebrity should not
endorse a competitor’s brands whose products and services cater to the same set
of end user. E.g. Brad Pitt endorsing both Pepsi and Coca-Cola.
§ The celebrity should not
override his testimonials with respect to different industry E.g. Tiger Woods
endorsing both CRY and a fireworks
brand which employs child labour.
§ The celebrity considers
certain untold ethical diplomacies, which if unconsidered would be detrimental
to other brands they endorse or to the consumers. E.g. Oprah Winfrey endorsing
a brand which deliberately supplies good to grey market operations.
Q.5. Where do you see your company with respect to
competitors and how is its growth in today’s world?
At M7 Info Solutions, we
treat competition as a key factor in nurturing the growth of the whole
industry, since we operate in a creative environment we cannot assess
competition in absolute terms of market share.
Advertising industry has
grown tremendously in the last two decades and it is now growing exponentially
since the advent and omnipresence of Web 2.0.
4.3. Questionnaire
Questionnaire were
prepared and distributed in order to get a large amount of opinions and
responses from different people around Cardiff.
About 200 questionnaires were distributed to get opinions of large variety of
people, expecting around 75% respondents. Having large group of respondents
gives us an opportunity to analyse a broader spectrum of opinions concerning
consumer buying behaviour and basic attitude towards celebrities, celebrity
endorsements, advertising, branding in today’s market. Data collected through
questionnaire were analysed and interpreted inform of bar graphs and pie
charts.
Survey
The first three questions
of questionnaire were about the respondent’s gender, age and income level.
These data will help the researcher to know the different perception of
different kind of consumers. These general questions were used asked to analyse
the impact and influence on them as a consumer and not relating to their
expenditure.
Q.1. Your gender, please
Table 1
|
Sl.no.
|
Gender
|
No. of respondents
|
Percentage
|
|
1
|
Female
|
63
|
42%
|
|
2
|
Male
|
87
|
58%
|
|
|
Total
|
150
|
100%
|
Interpretation
When performing a gender ratio in the sample, it was
noticed that our responses form 150 questionnaires consisted of 34% females and
66% males.
Inference
More responses were from
men compared to women, Men seem to be more into exposure. Women were also close
to the ratio of men with only a difference of 16%.
Q.2. Age, please
Table
|
Sl.no.
|
Age
|
No. of respondents
|
Percentage
|
|
1
|
13-20
|
15
|
10%
|
|
2
|
21-29
|
87
|
58%
|
|
3
|
30-39
|
36
|
24%
|
|
4
|
40 and above
|
12
|
8%
|
|
|
Total
|
150
|
100%
|
Interpretation
Out of the 150
questionnaires, respondents were of the age group of 21-29 years old and the
next major being 30-39 of age groups, followed by 13-20 and few from 40 and
above.
Inference
Respondents were from
different working place, region and class. The two major segments of age group
were 21-29 and 30-39. These age groups are the ones who are more in more
earning and shopping being at the early stage of family life cycle. 58% of the
respondents being of the age group between 21-29 show younger age group being
more at working place and exposed market. Experienced age group being 24% of
the total respondents.
Q.3. Monthly income (in
pounds)
Table
|
Sl.no.
|
Income level (monthly)
|
No. of respondents
|
Percentage
|
|
1
|
0-1000£
|
69
|
46%
|
|
2
|
1001-2000£
|
51
|
34%
|
|
3
|
2001-3000£
|
21
|
14%
|
|
4
|
3000£ and above
|
9
|
6%
|
|
|
Total
|
150
|
100%
|
Interpretation
Income level were divided
into four levels, the respondents were differentiated with respect to their
income level to get the individual level total percentage.
Inference
From interpretation, the
researcher finds that 46% of the respondents were of 0-1000£ earning level,
also being the high in number compared to other levels. The next close level
being people earning 1001-2000 £ resulting to 34% of the total. The other two
levels of income: 2001-3000£, 3000£ and above being 14% and 6% respectively.
Q.4. What does advertisement help in?
Table
|
Sl.no.
|
Advertisement helps in
|
No.of respondents
|
Percentage
|
|
1
|
Product awareness
|
12
|
8%
|
|
2
|
Product information
|
15
|
10%
|
|
3
|
Building brand
|
6
|
4%
|
|
4
|
All the above
|
117
|
78%
|
|
|
Total
|
150
|
100%
|
Interpretation
Out of 150 respondents,
117 respondents or 78% say that advertisement does help in all the three
aspects namely building brand, product information and product awareness. Few
others state that advertisement only helps particular action.
Inference
Interpreting consumer
responses, researcher finds that advertisement helps in building brand, product
awareness and product information. It also shows the importance and impact of
advertising and how are they related to branding. Advertising influences the
consumer behaviour.
Q.5. How important is brand name to you?
Table
|
Sl.no.
|
Importance of brand name
|
No. of respondents
|
Percentage
|
|
1
|
Very important
|
30
|
20%
|
|
2
|
Important
|
84
|
56%
|
|
3
|
Not too important
|
27
|
18%
|
|
4
|
Not at all important
|
9
|
6%
|
|
|
Total
|
150
|
100%
|
Interpretation
84 respondents leading to
a maximum (56%) said brand name is important to them, 30 (20%) respondents said
brand name is very important and supporting answers were from 27(18%)
respondents stating not too important, means quiet important. Only few said
brand name are not at all important.
Inference
Analysing the result, the researcher finds
that brand name is very much needed as most of them prefer brands and consider
them important, only the degree of importance varies. This shows that brand
name is one of the essential things which a customer looks for.
Q.6. What does brand mean to you?
Table
|
Sl.no.
|
Brand means
|
No. of respondents
|
Percentage
|
|
1
|
Better quality
|
18
|
12%
|
|
2
|
Image / status
|
33
|
22%
|
|
3
|
Value for money
|
6
|
4%
|
|
4
|
All the above
|
93
|
62%
|
|
|
Total
|
150
|
100%
|
Interpretation
More than half of the
respondents say that brand is more than a single attribute, brand means image /
status, better quality and value for money. 22% say brand means image or
status, 12% say better quality and very few say its value for many. Most of the
respondents express that brand is not just name or fame, it is more than that.
Inference
Brand as a whole refers
the many aspects of the product and the company, researcher finds that brand
means the better or the best quality goods or services, image or status, value
for money. This shows that people trust and have faith on brands. People expect
the branded goods or services to satisfy the need in a better way.
Q.7. When do you buy branded products?
Table
|
Sl.no.
|
When do
you buy branded products
|
No. of respondents
|
Percentage
|
|
1
|
Always
|
24
|
8%
|
|
2
|
Frequently
|
120
|
80%
|
|
3
|
Occasionally
|
18
|
12%
|
|
4
|
Never
|
0
|
0%
|
|
|
Total
|
150
|
100%
|
Interpretation
Large number of people
amounting to 80% said they buy branded products frequently, followed by
occasional buyers – 12%, people buying always (8%) of the respondents and 0%
said never.
Inference
Interpreting the result,
the researcher finds that large number of people buy branded products or
services. It is true from the market aspect also, as we see brand in every
product segment. Many brands in single segments also. People end buying one or
the other brand taking advantage of the competitions among brands in that
segments. There are quiet few of them who always prefer and buy branded stuffs
and very few buying occasionally.
Overall it shows people do
prefer and buy branded products and services.
Q.8. Are you interested in knowing the rich and famous
personality and their lively (living)?
Table
|
Sl.no.
|
Interested
in knowing the rich and famous
|
No. of respondents
|
Percentage
|
|
1
|
Yes
|
30
|
20%
|
|
2
|
No
|
15
|
10%
|
|
3
|
Yes to some extent
|
105
|
70%
|
 |
Total
|
150
|
100%
|
Interpretation
70% of the respondents
said they would like to know about the rich and famous to some extent, that is
they would like to know about them to certain extent and not whole or always,
only 20% said they are interested in knowing about the rich and famous, small
amount of them said they are not interested.
Inference
People like to hear and
know about the rich and famous, their living and their life style. It is
interesting to know about them. Their lifestyle could influence people, they
also can set up as an example or role model.
Q.9. What makes advertisement interesting or watchable?
Table
|
Sl.no.
|
What makes
advertisement interesting or watchable?
|
No. of
respondents
|
Percentage
|
|
1
|
Creativity
|
48
|
32%
|
|
2
|
Product / Brand
|
15
|
10%
|
|
3
|
Celebrity endorsing
|
21
|
14%
|
|
4
|
Using children, humour /
sex appeal
|
24
|
16%
|
|
5
|
All the above
|
42
|
28%
|
|
|
Total
|
150
|
100%
|
Interpretation
32% of the respondents like
the advertisement to have creativity to make them interesting. While other few
preferred product / brand, celebrity endorsing and advertisement to have
children, humour, sex appeal amounting to 10%, 14% and 16%. The other major
preference from 28% of the respondents was to have all the effects or
characteristics in it.
Inference
People like advertisements
that have creativity, they feel it is interesting to watch them. Out of the
other preferences most of them preferred advertisements to have all the elements
in it. This shows advertisement is not only of one characteristic or an aspect,
it should have all the necessities to make them interesting. Celebrity
endorsements pull the fans group.
Q.10. Should celebrities endorse the brand.
Table
|
Sl.no.
|
Should
celebrities endorse the brand
|
No. of respondents
|
Percentage
|
|
1
|
Yes
|
72
|
48%
|
|
2
|
No
|
30
|
20%
|
|
3
|
Yes to some extent
|
48
|
32%
|
|
|
Total
|
150
|
100%
|
 |
Interpretation
48% of the respondents
feel celebrities should endorse the brands and 32% said it is fine or yes to
some extent to endorse celebrities. 20% of them say celebrities should not
endorse the brand.
Inference
Most of the customers feel
nothing wrong in endorsing a celebrity for a brand, it is fine and good to
certain extent to use them in advertising. This shows that customers also
prefer to watch them at different medium of advertisements. They make
advertisements attractive and interesting.
Q.11.
Celebrities endorsed are associated with the brand in advertising and are
linked of their stake and value.
Table
|
Sl.no.
|
Celebrities
endorsed are associated with the brand in advertising and are linked of their
stake and value.
|
No. of
respondents
|
Percentage
|
|
1
|
Strongly agree
|
0
|
0%
|
|
2
|
Agree
|
15
|
10%
|
|
3
|
Some what agree
|
120
|
80%
|
|
4
|
Disagree
|
15
|
10%
|
|
5
|
Strongly disagree
|
0
|
0%
|
|
|
Total
|
150
|
100%
|
Interpretation
Large number of
respondents some what agree that celebrities endorsing the brand are associated
of their value and stake with the brand amounting to 80% of the total. Joining
the group were respondents (10%) who agreed to it. Remaining 10% of the
respondents oppose the statement.
Inference
Celebrities are associated
of their value and stake with the brand they endorse. Celebrities cannot
promote or endorse anything. People do believe them to have an association or
relativity with the product or brand. Big stars endorse big brands. Sports
players endorse sports brand more.
Q.12. Celebrities are used by endorsers effectively.
Table
|
Sl.no.
|
Celebrities
are effectively used by endorsers
|
No. of
respondents
|
Percentage
|
|
1
|
Strongly agree
|
12
|
8%
|
|
2
|
Agree
|
96
|
64%
|
|
3
|
Some what agree
|
24
|
16%
|
|
4
|
Disagree
|
18
|
12%
|
|
5
|
Strongly disagree
|
0
|
0%
|
|
|
Total
|
150
|
100%
|
Interpretation
64% of the respondents
agreed that celebrities endorsed by companies are used effectively. 8% of the
respondents strongly agree the statement. 16% agree to an extent means,
celebrities or brand ambassadors are not being used to an effective level. 12%
completely disagree the statement. But the majority of them do say that brand
ambassadors are being effectively.
Inference
Researcher after analysing
the results, it is clear that celebrities are being effectively used in
advertising by the endorsing company. When the company pays them good amount to
endorse, they also make sure to utilise them in effective manner and this
reaches the customer as well. Companies advertise through every possible medium
like television, radio, print ad, hoarding, transit advertisements etc.
Q.13. Does
the image or value of brand increase due to celebrity endorsement.
Table
|
Sl.no.
|
Image/value
of the brand increase due to celebrity endorsement
|
No. of
respondents
|
Percentage
|
|
1
|
Yes
|
18
|
12%
|
|
2
|
No
|
24
|
16%
|
|
3
|
Yes to some extent
|
108
|
72%
|
|
|
Total
|
150
|
100%
|
Interpretation
Majority of the
respondents counting to 72% say endorsing celebrity does increase the image or
value of a brand to an extent. Other 12% respondents say yes, they clearly
increase the brand image or value. Still 16% of respondents felt they don’t
influence on the image or brand value.
Inference
Brand ambassadors do help
in building a brand image or value, a customer does look at the brand value to
be higher. When a big star or a well known celebrity support the brand. The
trust and faith increases in the brand. The face is well known, the popularity
of the star and brand goes hand in hand.
Q.14. Do the
celebrity endorsement / brand ambassadors influence your buying?
Table
|
Sl.no.
|
Celebrity
endorsement / brand ambassadors influence your buying
|
No. of
respondents
|
Percentage
|
|
1
|
Yes
|
15
|
10%
|
|
2
|
No
|
102
|
68%
|
|
3
|
Yes to some extent
|
33
|
22%
|
|
|
Total
|
150
|
100%
|
Interpretation
68% of the respondents say
celebrity endorsement or brand ambassadors do not influence customer buying.
22% say that they influence to some extent, other 10% say brand ambassadors do
influence in their buying.
Inference
Customers do buy the
product looking at all dimensions, not just because a celebrity endorsing or
promoting. Sometimes it depends on the product as well. Few prefer buying the
brand because of brand ambassadors like fan groups or reference groups. A style
or trend followed by a celebrity in movies. There has been evidence where the
company have shown good sales after endorsing a celebrity like sports star to
promote the sports wear brand.
Q.15. Is it fair endorsing more than one brand?
Table
|
Sl.no.
|
Is it fair endorsing more than one brand by celebrities
|
No. of
respondents
|
Percentage
|
|
1
|
Yes
|
99
|
66%
|
|
2
|
No
|
51
|
34%
|
|
|
Total
|
150
|
100%
|
 |
Interpretation
66% of the total
respondents say it is fair to endorse more than one brand by a celebrity.
Opposing them were other 34% who said it is not fair to endorse more than a
brand.
Inference
As long as the celebrity
does not endorse many brands and confuse the customers to recall the brand,
customers feel it is fine to endorse more than a brand. Companies or
celebrities should think and sign an endorsement. Looking at the other side,
there are people who do not like celebrities to endorse more brands.
Q.16. Does the impact of the negatives of the celebrities who
have endorsed the brand influence your buying that particular brand?
Table
|
Sl.no.
|
Impact of
negatives of celebrities on customers in buying particular brand
|
No. of
respondents
|
Percentage
|
|
1
|
Yes
|
15
|
10%
|
|
2
|
No
|
96
|
64%
|
|
3
|
Yes to some extent
|
39
|
26%
|
|
|
Total
|
150
|
100%
|
Interpretation
64% of the respondents say
the negatives or issues of a celebrity do not influence their buying the
endorsed brand. 26% say they influence to some extent in their buying. 10% say
they do not cause any affect on their buying.
Inference
The impact of negatives or
issues of a celebrity do not influence the customers in their buying of the
particular endorsed brand. It might influence the fan group. Looking at the
broad aspect, customers do look at all the dimensions of a product before
buying and more over any personal issues or failures of the endorsed celebrity
does not influence the customers.
Some of the respondent’s
comments written in the questionnaire when asked to fill them have been written
below.
“Celebrities who are not
often exposed or endorsed more brands can make an impact, and it is not fair
celebrities involved in multiple brand endorsement because they would confuse
people rather making an impact. It has also been proven that, you can make an
impact by creative advertisement rather stocking celebrities behind the
product.”
“If a celebrity endorses
any product I believe he keeps his reputation, status, and image at stake, the
advertisements by them make products memorable and catchy, the fan factor works
here. We also feel the product is good because it is advertised by a celebrity.”
“Today people don’t buy
the products by seeing the celebrities endorsing, its just a mode to draw
attention of people with somebody whom they know very well in advertising the
product, but there are few people who still buy products just because a
celebrity is advertising.”
“Celebrity endorsement is very
interesting method of advertisement which really makes an advertisement
colourful and nice. It brings awareness to the people faster and also more in
number.”
"I prefer celebrities
endorsing brands and products which either they use personally or closely
connected like celebrity (racer) endorsing cars, tyres,
oil.
“In today's competitive
world endorsing of brands by celebrities does not have a huge impact on the
buying audience. What's important is the product awareness and reliability.
Celebrity endorsements involve huge money, it’s for sure a platform to create
the initial impact on the awareness of the product, but not always an influence
to buy the product. As the saying goes ‘It Takes Years To Win Trust and Hours
To Lose’ no matter if a brand is endorsed by a celebrity or a normal person if
the product does not live upto to the expectations on the performance trust in the brand is lost, as well as the
value for the celebrity who endorsed the product.”
4.4 Summary of the findings
From the explanation above
and information collected we can say that Advertising is one of the essential
and vital tools of a company for building brand, familiarising the brand,
recalling of brand among consumers.
Celebrity endorsements are
one of the effective techniques of advertising and brand building. Through
celebrity endorsements the brand enjoys the status and image in the market and
helps to develop faith and trust in the consumers, it also fosters the demand
of the goods or services.
Brand building is
necessary to grow, gain competitive advantage and to succeed from a company
point of view and brand name is important for a consumer to buy. A brand is
more than a name, it is also the psychological factors associated with it.
Brand means better quality of product or good or services, image or status,
value. Branded goods or services are expected to satisfy consumer needs in a
better way. Most of the consumers frequently buy branded products.
Summarising the findings, researcher finds that there
are many factors that influences a customer to buy or persuade. Companies try
to utilise most of the techniques or maximum tools to influence consumers. Different
kinds of consumers have different opinion and choices depending on different
factors like tastes, characteristics and background. Few of them were discussed
above.
Further explanation
provided in the subsequent chapter drawing the conclusion and recommendation.
Chapter- 5 CONCLUSIONS & RECOMMENDATIONS
5.1. Introduction
Conclusions and
recommendations of the objectives of the study will be drawn in this chapter. A
reassess of the objective is made to oversee the impact of celebrity
endorsements / brand ambassadors through advertising in building brand and
their influence on consumer behaviour. An analysis of different study variables
is revisited in summary against which appropriate recommendations are drawn.
The recommendations outlined take various models into consideration. The
theories and result are discussed in the introduction, literature review, study
objectives, hypothesis and actual findings. Based on informed background to the
study, a final conclusion is drawn under this chapter leading to the purpose of
the research.
5.2. Conclusion of research
Ø It was found that
advertising is very essential and vital for a company and the best mean to
promote a company or a product. Also consumers feel advertisement helps in building
brand, product awareness and product information. Repeated advertisements helps
in familiarising the brand and easy to be recalled. Advertising also helps in
building brand, fight competition and an important element of modern economies.
Ø Brand building is
necessary to grow, gain competitive advantage, to succeed and run for a long
time from a company point of view and brand name is important for a consumer to
buy. Consumers feel the products are of better standards. A brand is more than
a name, it is also the psychological factors associated with it. Brand means
better quality of product or good or services, image or status, value. Branded
goods or services are expected to satisfy consumer needs in a better way. Most
of the consumers frequently buy branded products. Brand influences consumer to
buy the product and it brings in trust in the company and the product.
Ø Celebrities are popular
and familiar to people. Celebrities can also be role models or inspiration to
many. People tend to relate stature, position, living or copying style.
Celebrities are admired and praised. Signing a celebrity to endorse a brand
help companies to perform well in most cases. Celebrities who endorse a brand
of a company are known as brand ambassadors of that company or brand.
Ø A brand ambassador or a
celebrity endorsing the brand could foster the sales of the company. They
become face of the brand.
Ø Brand ambassadors
influence customers trust and perception on the brand.
Ø Celebrity endorsement
makes advertisement interesting and watchable, they reach the target audience
effectively. Fan groups are very well influenced.
Ø Celebrity endorsement is a
unique key driver of the company’s strategy, operations, services and product
development. Sometimes celebrities are endorsed to save the reputation of a
dying brand.
Ø Most of the consumers are
interested to know about celebrities to an extent. They would like to know
about their, success, achievements, living.
Ø Customers preferred
advertisements that have creativity as they are more interesting for them to
watch. They also prefer advertisements to have more features in them like
celebrity endorsement, using children, humour, sex appeal etc. to make them
gain more attention or interest.
Ø Consumers do feel that
celebrities are associated with the brand of their, position, image and
stature. It helps to build trust on the product or band like David Beckham
endorsing a sports shoe will definitely have an impact.
Ø Customers are also aware
that any celebrity cannot endorse any brand. Customer agree that celebrities
are used effectively by the companies in endorsement, so also the companies use
them effectively to ensure effective communication to the target customers and
proper return on investment.
Ø Companies and advertising
agents say it is fair to endorse more than a brand by a celebrity to an extent
as long as they are not endorsing similar products or brand. Companies prefer
celebrities who have good image and are on good legal terms. Consumers are also
fine with the celebrities endorsing more than a brand as far as they are not to
a maximum level and not confusing due to endorsements of same product line.
Ø The image, value and
perception increases to an extent because of brand ambassadors to an extent but
it does not influence in the buying of the consumer as the customer looks for
many other characteristics and features of a brand. Thereby, the perception is
influenced and not the buying.
Ø The negatives, scandals or
failures of the endorsed celebrity in the market do not influence most of
consumer buying the brand endorsed. It might influence only a small group (fan
group).
Celebrity
endorsements are just an advantageous technique or an effective tool used by
companies to endorse their brand and these brand ambassadors only influence the
perception of the consumers and persuades them to buy but the purchase decision
and purchase is made on many other aspects, characteristics and dimensions.
5.3. Recommendations
Research is a successful
project if all other resources are assimilated in a rational way. Different
incidents specified in different areas of this research are noted. The
reliability of this work depends on the methodology, question design as tools
of collecting data. Author has decided to give the following recommendations
based on the research carried.
Ø Companies should try to
adopt different strategies moving with time in advertising. Consumers lose
interest on same repeated advertisements.
Ø Demand for branded
products are at increase, consumers prefer and buy branded products frequently
as the name itself promises more than the product. So companies should put more
effort on building brand as well.
Ø Brand building at every
stage of the product is necessary. Companies have to strive hard to build and
maintain the brand. It is said ‘It takes years to win and hours to lose.’
Ø Celebrity endorsement
should be used as an technique or one of the form of advertising or
communication and not as a whole part of promotion of the company.
Ø In celebrity endorsing,
the celebrity or the brand ambassador to be selected should match the brand or
the product as the image, stake and stature are inter-related. A company has to
look for and then sign a celebrity.
Ø Companies have to
constantly monitor the market, consumer behaviour and the image of endorser to
avoid negative impacts,
Ø Celebrity selecting for
endorsements should be attractive and have good image in the society in the
previous and belief of carrying it in the future also so that the company plans
for a short term or long term future.
Ø Celebrity endorsement
should be a long term commitment but with different celebrity depending on
their popularity. Companies should make sure that investment on celebrity
endorsement gives them good return as well.
Ø New well known celebrity
or faces should be used to endorse than using celebrities who have endorsed
many other brands.
Ø Companies should ensure to
have rights, trademarks and legal contracts. The celebrity endorsing the brand
to be on the legal terms.
Ø Companies should be aware
of the celebrity credibility so that they are prepared to face the situation if
the endorsed celebrity gets involved in a scandal or any other negative
impacts,
5.4 Limitations and further research
The methodology used to
collect primary data was interviews from companies and questionnaires from
consumers in which questionnaires were mailed to many respondents and
distributed among public, out of which few did not respond due to lack of time,
lack of interest, annoyed of filling many different questionnaires or
suggestions at many places. Interview from the company managers were only for
short time, so more or deeper information were not gathered, more information
were not provided due to confidentiality.
Information collected may be prone to inaccuracy due to lack of
information, poor recalling of information. Few respondents do not wish to
reveal their actual perception or attitude towards the questions.
Further research could be
done on different influencing factors of consumers on buying and different
techniques adopted by company in building brand and advertising. Further
research can be carried on the different kinds of advertisements like fear
factor advertisement from insurance companies, humours, imitating or showing
brand comparison or fight in the advertisements. Also deeper research on
celebrity endorsement like Return on Investment in celebrity endorsement,
celebrity match-up hypothesis, perception of a celebrity by consumers.
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APPENDIX
APPENDIX 1-INTERVIEW QUESTIONNAIRE
(Company-
marketing department)
1.
What role does advertisement play in your company and how
important are they?
2.
Is brand building necessary for the success of a company and
how are they advantageous?
3.
How do you retain consumers with respect to your promotional
activities?
4.
What do you say about endorsing a celebrity?
5.
Are advertisements with celebrity endorsement useful and
effective in a company? Are they beneficial?
6.
What are the strategies adopted by your company to influence
customer’s perception towards your brand?
7.
Is it fair using the same celebrity to endorse a brand who
has already endorsed other brand
8.
Where do you see your company with respect to competitors and
how is your growth in today’s world?
APPENDIX 2-INTERVIEW QUESTIONNAIRE
(Advertising Company)
1.
What role does advertisement play and how important are they?
2.
Does advertisement help in brand building and are they
necessary for the success of a company and how are they advantageous?
3.
What do you think about celebrity endorsements? How are they
useful for a company?
4.
Is it fair using the same celebrity to endorse a brand who
has already endorsed other brand?
5.
Where do you see your company with respect to competitors and
how is its growth in today’s world?
APPENDIX 3-Questionnaire
Hi….
I am a student
pursuing MBA in UWIC, currently doing dissertation to find the “Impact of
celebrity endorsement in advertising and their influence on branding and
consumer buying behaviour”. Your answer would help me in my research.
Kindly type ‘x’
between the brackets with respect to your answer or make any change for your
answer…
1.) Gender
please…?
Male [ ]
Female [ ]
2.) Age please…..
13-20
[ ]
21-29 [ ]
30-39 [ ]
40 and above [ ]
3.) Monthly
income… please… (in pounds)
0-1000 [ ]
1001-2000 [ ]
2001-3000 [ ]
3001 and above [ ]
4.) What does
advertisement help in…?
Product awareness [ ]
Product information [ ]
Building brand [ ]
All the above [ ]
5.) How important
is brand name to you…?
Very important [ ]
Important [ ]
Not too important [ ]
Not at all important [ ]
6) Brand means….?
Better quality [ ]
Image / status [ ]
Value for money [ ]
All the above [ ]
7.) When do you
buy branded products…..?
Always [ ]
Frequently [ ]
Occasionally [ ]
Never [ ]
8.) Are you
interested in knowing the rich and famous personality and their lively (living)…?
Yes [
]
No [
]
Yes to some extent [ ]
9.) What makes the
advertisement interesting or watchable?
Creativity [ ]
Product / Brand [ ]
Celebrity endorsing [ ]
Using children, humour, sex appeal
etc [ ]
All the above [ ]
10.) Should celebrities
endorse the brand…?
Yes [
]
No [
]
Yes to some extent [ ]
11.) Celebrities
endorsed are associated with the brand in advertising and are linked of
their stake and value.
Strongly Agree [ ]
Agree [ ]
Some what agree [ ]
Disagree [ ]
Strongly disagree [ ]
12.) Celebrities
are being effectively used by the companies who are endorsing them
to promote their brand through
advertisements…?
Strongly Agree [ ]
Agree [ ]
Some what agree [ ]
Disagree [ ]
Strongly disagree [ ]
13.) Does the
image or value of brand increase in due to celebrity
endorsements….?
Yes [
]
No [
]
Yes to some extent [ ]
14.) Do the
celebrity endorsement / face of the brand / brand ambassadors influence
your buying…?
Yes [
]
No [
]
Yes to some extent [ ]
15.) Is it fair to
endorse more than one brand by celebrities…?
Yes [
]
No [
]
16.) Does the
impact of negatives on celebrities who have endorsed a brand influence
you in buying that particular brand….?
Yes [
]
No [
]
Yes to some extent [ ]
Comments
please……………………………………………………………………
...................................................................................................................................
Thank you for your
valuable time…..!!!!
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