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CELEBRITY ENDORSEMENT
“The Effect of Celebrity Endorsement on Consumer Brand
Preference”
Dhani
(1035110)
Haresh
Kumar
(1025115)
Supervised by
Shaista Ayesha Farhat
CONTENTS
INTRODUCTION
LITERATURE REVIEW
RESEARCH METHODOLOGY
ANALYSIS & KEY FINDINGS
CONCLUSION
RECOMMENDATION
LOGO
INTRODUCTION
INTRODUCTION
Celebrity Endorsement :An
Interesting Phenomenon
• Celebrities are people who
enjoy public acknowledgement
by a large group of people
whereas attributes like
passion, attractiveness, diligenc
e, discipline, self-motivation
and extraordinary lifestyle are
just examples and specific
common characteristics.
• Consumer recall rate is high
when exposed to celebrity ads
How to Find Right
Celebrity:
• Any who is famous and has a good
name in market can be the right
celebrity. Many advertisers consider
that their celebrity must have
popularity and charisma.
• While selecting the celebrity the
primary criteria is the fame, physical
attractiveness and credibility under
considerations.
CELEBRITY ENDORSEMENT IN PAKISTAN
Celebrities from the showbiz world are turning towards the
glowing world of representing a product as Brand Ambassador
Celebrities have made their side business besides the profession.
Famous celebrities like Shahid Afridi, Aisam-ul-Haq,Ali Zafar
started to endorse a product.
Shahid Afridi (Pepsi), Junaid Jamshed (Lays), they started
endorsement.There are many more examples regarding
celebrity endorsement in Pakistan.
Objectives of
the Study
• To explore people’s perception
about celebrity endorsement.
• To determine how consumer
decision effected by the celebrity
name.
• To determine the impact of
celebrity endorsement on brand.
• To analyze the rising number &
role of celebrity endorsement.
The Problem
Statement
• How customer’s
buying pattern
changes due to
celebrity
endorsement.
LOGO
LITERATURE REVIEW
LITERATURE REVIEW
 Marketers
worldwide
considered celebrity
endorsement as an
effective
promotional tool.
 According to (Atkin
and Block, 1983)
celebrity
endorsement
produce more
positive responses
towards advertising
and increase
purchase intentions.
Benefits of
Celebrity
Endorsement
 Create perception of
the brand
 Create awareness
of the brand
 Put add-on value to
the brand
 Create position for
the brand
 Raise media
coverage
 Put new life into a
fail brand
 Attract a new
customers
Types of
Celebrity
Endorsement
 Singer
 Actor
 Sportsmen
 Model
Shahid Afridi
• Pepsi
• Jazz
• Head & Shoulders
Aisam-ul-Haq
• Pepsi
• Olper’s
• Close UP
Ali Zafar
• Pepsi
• Telenor
Mahira
• Aquafina
• Tuc Biscuit
SUCCESSFUL LOCAL CELEBRITY
Methodology
Research Design
• Exploratory
research
Procedure
• Step 1:Scondary data
• Step 2: Surveys and interviews
• Step 3: Data Collection &
coding
• Step 4: Interpretation &
Conclusion
• Step 5: Evaluation &
recommendations
Population
• People located
within
Karachi, social
classes A & B
(SZABIST)
Sample and
Sampling Method
• Convenient sampling
method
• 300 responses
• Area: SZABIST
HYPOTHESIS
Hypothesis-1
Ho: Celebrity endorsement affects consumer buying behavior.
H1: Celebrity endorsement does not affect consumer buying behavior.
LOGO
ANALYSIS
Occupation Level
Above graph and table clearly shows that major part of our data
has respondents in form of students, almost 65.3 % of the
respondents are students, while the lowest number of
respondents are housewife.
.
Occupation
Frequen
cy Percent Valid Percent
Cumulative
Percent
Vali
d
student 196 65.3 65.3 65.3
job 75 25.0 25.0 90.3
business 25 8.3 8.3 98.7
house
wife
4 1.3 1.3 100.0
Total 300 100.0 100.0
Above pie chart and the table generated from SPSS shows that
the majority of the income level of our respondents lies
between 41000 to 50000, because they are the university level
students and most of them are graduates or undergraduates.
Household Income
HouseholdIncome
Frequency Percent Valid Percent
Cumulative
Percent
V
a
l
i
d
25000 to 40000 36 12.0 12.0 12.0
41000 to 55000 108 36.0 36.0 48.0
56000 to 70000 84 28.0 28.0 76.0
71000 and above 72 24.0 24.0 100.0
Total 300 100.0 100.0
We can easily observe that majority of our respondents around
66% have given positive response that the endorsement of any
celebrity has an impact on the re purchase of that product.
Impact on Consumer Repurchase
Does a celebrity endorsement has an impact on consumer repurchase * gender
Crosstabulation
Count
gender
Totalmale female
Doesacelebrityendorsementhasanimpactoncon
sumerrepurchase
yes 149 51 200
no 68 32 100
Total 217 83 300
The above blue biggest bar in above graph shows that most of
our respondents say that they can easily recognize the product
which is endorsed by their favorite celebrity or by any other
celebrity.
Easily Recognize Endorsed Product
Does consumers easily recognize endorsed product * gender Crosstabulation
Count
gender
Totalmale female
Does consumers easily recognize endorsed product yes 153 53 206
no 64 30 94
Total 217 83 300
LOGO
KEY FINDINGS
FINDINGS
The trust factor depends on different things like
the best quality products, or the accessible
prices, after sales services and much more.
It is revealed that the people think that the
celebrity is giving them a product of association
with basic need, so the trust factor can be built.
Celebrity has trust in
customers mind
CONCLUSION
Celebrity endorsement has incremental
impact on the success of the business.
The main finding is that the celebrity
endorsement can make the customers loyal in
terms of the quality.
The main reason for celebrity endorsement is
the recognition of the brand.
RECOMMENDATIONS
A high quality can retain good customer and shift they from the
category of stars to cash cows to achieve the ultimate goal of
business continuity and growth.
It's a highly competitive world out there. So the best and most
cost-effective way to get your product, service or brand noticed by
the consumer.
Our impartiality and unbiased recommendations will ensure that
both parties are happy with the arrangement and that the terms of
the contract are fair – after all, it must be a win-win situation for all
parties involved.
THANKYOU

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Ppt final

  • 1. CELEBRITY ENDORSEMENT “The Effect of Celebrity Endorsement on Consumer Brand Preference”
  • 5. INTRODUCTION Celebrity Endorsement :An Interesting Phenomenon • Celebrities are people who enjoy public acknowledgement by a large group of people whereas attributes like passion, attractiveness, diligenc e, discipline, self-motivation and extraordinary lifestyle are just examples and specific common characteristics. • Consumer recall rate is high when exposed to celebrity ads How to Find Right Celebrity: • Any who is famous and has a good name in market can be the right celebrity. Many advertisers consider that their celebrity must have popularity and charisma. • While selecting the celebrity the primary criteria is the fame, physical attractiveness and credibility under considerations.
  • 6. CELEBRITY ENDORSEMENT IN PAKISTAN Celebrities from the showbiz world are turning towards the glowing world of representing a product as Brand Ambassador Celebrities have made their side business besides the profession. Famous celebrities like Shahid Afridi, Aisam-ul-Haq,Ali Zafar started to endorse a product. Shahid Afridi (Pepsi), Junaid Jamshed (Lays), they started endorsement.There are many more examples regarding celebrity endorsement in Pakistan.
  • 7. Objectives of the Study • To explore people’s perception about celebrity endorsement. • To determine how consumer decision effected by the celebrity name. • To determine the impact of celebrity endorsement on brand. • To analyze the rising number & role of celebrity endorsement. The Problem Statement • How customer’s buying pattern changes due to celebrity endorsement.
  • 9. LITERATURE REVIEW  Marketers worldwide considered celebrity endorsement as an effective promotional tool.  According to (Atkin and Block, 1983) celebrity endorsement produce more positive responses towards advertising and increase purchase intentions. Benefits of Celebrity Endorsement  Create perception of the brand  Create awareness of the brand  Put add-on value to the brand  Create position for the brand  Raise media coverage  Put new life into a fail brand  Attract a new customers Types of Celebrity Endorsement  Singer  Actor  Sportsmen  Model
  • 10. Shahid Afridi • Pepsi • Jazz • Head & Shoulders Aisam-ul-Haq • Pepsi • Olper’s • Close UP Ali Zafar • Pepsi • Telenor Mahira • Aquafina • Tuc Biscuit SUCCESSFUL LOCAL CELEBRITY
  • 11. Methodology Research Design • Exploratory research Procedure • Step 1:Scondary data • Step 2: Surveys and interviews • Step 3: Data Collection & coding • Step 4: Interpretation & Conclusion • Step 5: Evaluation & recommendations Population • People located within Karachi, social classes A & B (SZABIST) Sample and Sampling Method • Convenient sampling method • 300 responses • Area: SZABIST
  • 12. HYPOTHESIS Hypothesis-1 Ho: Celebrity endorsement affects consumer buying behavior. H1: Celebrity endorsement does not affect consumer buying behavior.
  • 14. Occupation Level Above graph and table clearly shows that major part of our data has respondents in form of students, almost 65.3 % of the respondents are students, while the lowest number of respondents are housewife. . Occupation Frequen cy Percent Valid Percent Cumulative Percent Vali d student 196 65.3 65.3 65.3 job 75 25.0 25.0 90.3 business 25 8.3 8.3 98.7 house wife 4 1.3 1.3 100.0 Total 300 100.0 100.0
  • 15. Above pie chart and the table generated from SPSS shows that the majority of the income level of our respondents lies between 41000 to 50000, because they are the university level students and most of them are graduates or undergraduates. Household Income HouseholdIncome Frequency Percent Valid Percent Cumulative Percent V a l i d 25000 to 40000 36 12.0 12.0 12.0 41000 to 55000 108 36.0 36.0 48.0 56000 to 70000 84 28.0 28.0 76.0 71000 and above 72 24.0 24.0 100.0 Total 300 100.0 100.0
  • 16. We can easily observe that majority of our respondents around 66% have given positive response that the endorsement of any celebrity has an impact on the re purchase of that product. Impact on Consumer Repurchase Does a celebrity endorsement has an impact on consumer repurchase * gender Crosstabulation Count gender Totalmale female Doesacelebrityendorsementhasanimpactoncon sumerrepurchase yes 149 51 200 no 68 32 100 Total 217 83 300
  • 17. The above blue biggest bar in above graph shows that most of our respondents say that they can easily recognize the product which is endorsed by their favorite celebrity or by any other celebrity. Easily Recognize Endorsed Product Does consumers easily recognize endorsed product * gender Crosstabulation Count gender Totalmale female Does consumers easily recognize endorsed product yes 153 53 206 no 64 30 94 Total 217 83 300
  • 19. FINDINGS The trust factor depends on different things like the best quality products, or the accessible prices, after sales services and much more. It is revealed that the people think that the celebrity is giving them a product of association with basic need, so the trust factor can be built. Celebrity has trust in customers mind
  • 20. CONCLUSION Celebrity endorsement has incremental impact on the success of the business. The main finding is that the celebrity endorsement can make the customers loyal in terms of the quality. The main reason for celebrity endorsement is the recognition of the brand.
  • 21. RECOMMENDATIONS A high quality can retain good customer and shift they from the category of stars to cash cows to achieve the ultimate goal of business continuity and growth. It's a highly competitive world out there. So the best and most cost-effective way to get your product, service or brand noticed by the consumer. Our impartiality and unbiased recommendations will ensure that both parties are happy with the arrangement and that the terms of the contract are fair – after all, it must be a win-win situation for all parties involved.