term paper of reserch on celebrity endorsement

1. Introduction
Celebrity endorsement has become an essential part of today’s advertisement world.Every big
brand is using celebrities to promote their brands.
This paper is the analysis of effect of celebrity endorsement on the purchase behavior of
consumers. This study is carried out on 50 respondents from different courses in lovely
professional university.
Review of literature
1.Factors predicting the effectiveness of celebrity endorsement
advertisements
Summary
This research examines whether consumers infer that celebrity endorsers like the products they
endorse, and presents a model using these inferences and other characteristics of the endorser to
predict attitudes toward the endorsed product.
2.Celebrity performance and endorsement value: the case of Tiger Woods
summary:
An interesting issue little explored in the celebrity endorsement literature is whether or not the
activities of a celebrity endorser affect company performance. We examine the impact of Tiger
Woods’s tournament performance on the endorsing firm’s value subsequent to the contract
signing. We do not find a relationship between Tiger’ss tournament placement and the excess
returns of Fortune Brands (parent of Titleist).
3.The equity effect of product endorsement by celebrities: A conceptual
framework from a co-branding perspective
Summary:
The purpose of this study is to outline a conceptual framework that can be used to organise and
guide future research into how celebrity product endorsement creates equity for both the
endorsed product-brand and the endorsing celebrity. The central thesis is that both endorser
image and brand image serve as mediators in the equity-creation process of celebrity product
endorsement.

2. 1. http://www.emeraldinsight.com/10.1108/03090560410560218
2. http://www.emeraldinsight.com/10.1108/03074350010766756
3. http://www.emeraldinsight.com/10.1108/03090560710718148
4.The naked truth of celebrity endorsement
Summary:
This case study examines the use of celebrity endorsement in the formation of the retail image of
leading European grocery distribution group J. Sainsbury, in particular, the process of
transference of celebrity images to the product’s image. The incorporation of Jamie Oliver (well
known as television celebrity The Naked Chef) into the promotions of one of Britain’s leading
grocery chains involves a high profile campaign that has been adopted in order to imbue the
company’s products with an image of quality. The success of the campaign has been replicated
in New Zealand by another grocery retail “giant”, Foodstuffs, who have also adopted The Naked
Chef to endorse their products. The case draws on field research with consumers and key
informant interviews with advertising agency personnel who identified the criterion for the
choice of Jamie Oliver. The extent to which the market place recognises and consumers associate
themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored.
5.Celebrity Endorsement in Food - UK
This report assesses celebrity endorsement of food since the last Mintel report was published in
January 2005. Over the last three years increased media coverage of food and cookery has
propelled celebrity chefs into the limelight. At the same time issues such as healthy eating,
organic and free-range production values have come to the fore. The result is a much more
complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of
food products, celebrities have become crusaders for the food sector, challenging consumers to
think before they eat and resulting in significant changes in purchasing behaviour.
.6.How sports celebrity endorsements affect a company's branding
The effect of sports celebrity endorsements on a company's branding can not be underestimated.
Usually the effect is positive however at times it can backfire and cause an undesired outcome.
Throughout the past chundred and twenty five years or so we have seen sports and business

3. intertwined in the advertising world and the relationship grows stronger every year elevating
both brand and athlete to levels of public conciousness neither would likely realize on their own.
4. http://www.emeraldinsight.com/10.1108/00070700310477086
5. http://www.just-food.com/store/product.aspx?id=64297
6. http://www.helium.com/items/1142527-how-sports-celebrity-endorsements-affect-a-companys-
branding?page=2
7. Celebrity Endorsement: Advertising Agency
Managers’ Perspective
This paper has explored on advertising agency managers’ point of view regarding celebrity endorsement
strategy. Findings revealed that managers see media clutter as the biggest challenge for marketing
communications practitioners nowadays and utilise a celebrity endorsement strategy to overcome this
challenge. A celebrity campaign to bring desirable campaign results must support a good idea and there
must be an explicit fit between celebrities and brands. While deciding on a particular celebrity, a range of
criteria are reported to be taken into account and these criteria’s importance was communicated to be
very similar in the UK, but it would differ across countries mainly because of cultural differences.
8.Celebrity Endorsement in Food - UK - April 2008
This report assesses celebrity endorsement of food since the last Mintel report was published in January
2005. Over the last three years increased media coverage of food and cookery has propelled celebrity
chefs into the limelight. At the same time issues such as healthy eating, organic and free-range
production values have come to the fore. The result is a much more complex, wide-ranging relationship
between celebrities and food. No longer simply endorsers of food products, celebrities have become
crusaders for the food sector, challenging consumers to think before they eat and resulting in significant
changes in purchasing behaviour.
9.Celebrity Endorsements
It is estimated that companies in the U.S. spent $800 million in 1998 to“acquire
talent — entertainers, athletes and other high profile personalities —to spotlight in
advertising, promotion and PR campaigns” (IEG Endorsement Insider)
Approximately 20% of all television commercials feature famous people.
Why do ads for some products feature celebrity endorsements while ads
for others do not? To answer this question, we develop a coordination model of
advertising in which firms choose both advertising levels and advertising format
— ads with celebrity endorsements or ads without. We show that the equilibrium
formats are either ones that reach large audiences at low cost or that

4. coordinate well. The former provides a cost-based explanation for celebrity
endorsements
that is consistent with experimental evidence showing that celebrities
enhance product recall. The latter provides an explanation for celebrity
endorsements consitent with evidence that they enhance consumer perception
of product value. For this latter case, we show that celebrity endorsements
are chosen for products that i) have large potential customer pools, ii) provide
large coordination returns to consumers or iii) require coordination across diverse
sets of customers. Our analysis also provides an explanation for the use
of “fictional” celebrities like Joe Camel.
http://fulltext.ausport.gov.au/fulltext/1999/cjsm/v3n3/erdogan&baker33.htm
http://academic.mintel.com/sinatra/oxygen/display/id=319432
www.rotman.utoronto.ca/ihorstmann/JEMS.2005-07-07.clark.pdf
Research design: In this research we used exploratory design. Exploration is a
particularly useful when researchers lack a clear idea of the problems they will meet during the
study. Through exploration researchers develop concepts more clearly, establish priorities,
develop operational definitions and improve the final research design. Exploration may also
save time and money.
Sampling design: in this research we used convenience sampling. Non probability
samplings that are unrestricted are known as convenience sampling. They are the least reliable
design but normally the cheapest and the easiest to conduct. Researchers or field workers have
the freedom to choose whomever they find , thus the name convenience .

5. Analysis
1: This is the analysis of no. of consumers who watch advertisement.
Statistics
Do you watch advertisement
N Valid 50
Missing 0
Mean 1.00
Median 1.00
Mode 1
Std. Deviation .000
Do you watch advertisement
Cumulative
Frequency Percent Valid Percent Percent
Valid 'yes' 50 100.0 100.0 100.0
Do you watch advertisement
'yes'
DATA findigs:
100% of respondents said that they watch advertisements.

6. Inference :
All the respondents say that they watch advertisements.
2.This is the analysis of response of consumers on celebrity endorsement in advertisements
Statistics
Do you think that celebrity is required in an advertisement
N Valid 50
Missing 0
Mean 1.20
Median 1.00
Mode 1
Std. Deviation .404
Do you think that celebrity is required in an advertisement
Cumulative
Frequency Percent Valid Percent Percent
Valid 'yes' 40 80.0 80.0 80.0
no 10 20.0 20.0 100.0
Total 50 100.0 100.0
Do you think that celebrity is required in an advertisement
'yes'
no
__

7. Data findings:
80% respondents says that celebrity endorsement is required for advertisements.
Inferences:
Majority of respondents says that celebrity endorsement is required for advertisements.
3. This is the analysis of choice of celebrity on the basis of gender.
Statistics
Is your favorlte celebrity is male or female
N Valid 50
Missing 0
Mean 1.58
Median 2.00
Mode 2
Std. Deviation .499
Is your favorlte celebrity is male or female
Cumulative
Frequency Percent Valid Percent Percent
Valid 'male' 21 42.0 42.0 42.0
female 29 58.0 58.0 100.0
Total 50 100.0 100.0
Is your favorlte celebrity is male or female
'male'
female

8. Data findings:
58% of respondents says that they like female celebrities in advertisements.
Inferences:
Majority of respondents favor female celebrity endorsement on the place of male celebrity.
5. This is the analysis of behavior of respondents for the uses of product due to celebrity
endorsement.
Statistics
Do you keep using a brand only because of the endorsing celebrity
N Valid 50
Missing 0
Mean 1.76
Median 2.00
Mode 2
Std. Deviation .431
Do you keep using a brand only because of the endorsing celebrity
Cumulative
Frequency Percent Valid Percent Percent
Valid 'yes' 12 24.0 24.0 24.0
no 38 76.0 76.0 100.0
Total 50 100.0 100.0
Statistics
Do you keep using a brand only because of the endorsing celebrity
'yes'
no
__

9. Data findings:
76% respondents said that they are not using a brand only because of endorsing celebrity
Inferences:
majority of respondent use brands only according to their choice noy because of celebrity
endorsement in it.
6. This is the analysis of respondent’s preference while purchasing any brand
Statistics
what makes you notice a brand
N Valid 50
Missing 0
Mean 1.48
Median 1.00
Mode 1
Std. Deviation 1.035
what makes you notice a brand
Cumulative
Frequency Percent Valid Percent Percent
Valid 'quality' 39 78.0 78.0 78.0
advertisement 3 6.0 6.0 84.0
endorsing celbrity 5 10.0 10.0 94.0
price 1 2.0 2.0 96.0
other 2 4.0 4.0 100.0
Total 50 100.0 100.0

10. what makes you notice a brand
'quality'
advertisement
endorsing celbrity
price
other
__
Data findings;
78% respondents said that the give more value to the quality before purchasing any particular
brand.
While 2% respondents give price as more important factor than any other while purchasing any
brand.
Inferences:
Majority of respondents give preference to the quality of product of brands while purchasing.

11. 7. This is the analysis of consumer buying behavior due to celebrity
endorsement.
Statistics
celebrity
celebrity celebrity endorsem
celebrity celebrity endorsem endorsem ent is celebrity celebrity celebrity
endorsem endorsem ent is ent essential endorsem endorsem endorseme
ent ent essential increases for product ent ent alters nt attracts
increases decreases for the or service celebrity increases the buying individuals
your the risk success of trustworth promotion endorsem the behaviour attention
probability related to product eness of in the this ent credibilty of a towards
to go and the and the competitve increases of the person in the product
purchase product or services in product or market the brand product or a positive or services
a product service the market services place recall services way advertised
Valid 50 50 50 50 50 50 50 50 50
Missing 0 0 0 0 0 0 0 0 0
Mean 2.40 2.58 2.46 2.48 2.36 2.48 2.46 2.32 2.20
Median 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Mode 2 2 2 2 2 2 2 2 2
Std. Deviation .969 .992 .952 .886 .942 .953 .952 .819 1.050
celebrity endorsement increases your probability to go and purchase a product
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 5 10.0 10.0 10.0
agree 29 58.0 58.0 68.0
neutral 10 20.0 20.0 88.0
disagree 3 6.0 6.0 94.0
strongly disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0
celebrity endorsement decreases the risk related to the product or service
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 4 8.0 8.0 8.0
agree 24 48.0 48.0 56.0
neutral 14 28.0 28.0 84.0
disagree 5 10.0 10.0 94.0
strongly disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0

12. celebrity endorsement is essential for success of product and services in the market
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 6 12.0 12.0 12.0
agree 24 48.0 48.0 60.0
neutral 12 24.0 24.0 84.0
disagre 7 14.0 14.0 98.0
strongly disagree 1 2.0 2.0 100.0
Total 50 100.0 100.0
celebrity endorsement increases the trustwortheness of the product or services
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 3 6.0 6.0 6.0
agree 28 56.0 56.0 62.0
neutral 13 26.0 26.0 88.0
disagree 4 8.0 8.0 96.0
strongly disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0
celebrity endorsement is essential for product or service promotion in the this competitve market place
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 7 14.0 14.0 14.0
agree 25 50.0 50.0 64.0
neutral 13 26.0 26.0 90.0
disagree 3 6.0 6.0 96.0
strongly disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0
celebrity endorsement increases the brand recall
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 6 12.0 12.0 12.0
agree 22 44.0 44.0 56.0
neutral 16 32.0 32.0 88.0
disagree 4 8.0 8.0 96.0
strongly disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0
celebrity endorsement increases the credibilty of the product or services

13. Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 3 6.0 6.0 6.0
agree 31 62.0 62.0 68.0
neutral 9 18.0 18.0 86.0
disagree 4 8.0 8.0 94.0
strongly disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0
celebrity endorsement alters the buying behaviour of a person in a positive way
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 5 10.0 10.0 10.0
agree 29 58.0 58.0 68.0
neutral 12 24.0 24.0 92.0
disagree 3 6.0 6.0 98.0
strongly disagree 1 2.0 2.0 100.0
Total 50 100.0 100.0
celebrity endorsement attracts individuals attention towards the product or services advertised
Cumulative
Frequency Percent Valid Percent Percent
Valid 'strongly agree' 13 26.0 26.0 26.0
agree 22 44.0 44.0 70.0
neutral 9 18.0 18.0 88.0
disagree 4 8.0 8.0 96.0
strongly disagree 2 4.0 4.0 100.0
Total 50 100.0 100.0

14. celebrity endorsement increases your probability to go and purchase a
product
'strongly agree'
agree
neutral
disagree
strongly disagree
__
celebrity endorsement decreases the risk related to the product or service
'strongly agree'
agree
neutral
disagree
strongly disagree
__

15. celebrity endorsement is essential for success of product and services in the
market
'strongly agree'
agree
neutral
disagre
strongly disagree
__
celebrity endorsement increases the trustwortheness of the product or
services
'strongly agree'
agree
neutral
disagree
strongly disagree
__

16. celebrity endorsement is essential for product or service promotion in the
this competitve market place
'strongly agree'
agree
neutral
disagree
strongly disagree
__
celebrity endorsement increases the brand recall
'strongly agree'
agree
neutral
disagree
strongly disagree
__

17. celebrity endorsement increases the credibilty of the product or services
'strongly agree'
agree
neutral
disagree
strongly disagree
__
celebrity endorsement alters the buying behaviour of a person in a positive
way
'strongly agree'
agree
neutral
disagree
strongly disagree
__

18. celebrity endorsement attracts individuals attention towards the product or
services advertised
'strongly agree'
agree
neutral
disagree
strongly disagree
__
Data findings:
1. 29% respondents said that celebrity endorsement increases the probability of product
purchase.
2. 24% respondents said that celebrity endorsement decreases the risk related to the product
or services.
3. 48% respondents said that celebrity endorsement is essential for the success of product in
the market place.
4. 56% respondents said that celebrity endorsement increases the trustworthiness of products.
5. 44% respondents said that celebrity endorsement increases the brand recall.
6. 50% respondents said that celebrity endorsement is essential for promotion of product and
services in this competitive marketplace.
7. 58% respondents said celebrity endorsement alters the buying behavior in positive way.
8. 62% respondents said that celebrity endorsement increases the credibility of the product.

19. 9. 44% respondents said that celebrity endorsement attracts individuals towards thw product
or services.
Inferences
Majority of respondents are in favor of celebrity endorsement and they think that celebrity
endorsement can definitely have effect on the buying behavior of any brand.
Final findings:
100% of respondents said that they watch advertisements.
80% respondents says that celebrity endorsement is required for advertisements
58% of respondents says that they like female celebrities in advertisements.
76% respondents said that they are not using a brand only because of endorsing celebrity
78% respondents said that the give more value to the quality before purchasing any particular
brand.
While 2% respondents give price as more important factor than any other while purchasing any
brand.
29% respondents said that celebrity endorsement increases the probability of product purchase.
24% respondents said that celebrity endorsement decreases the risk related to the product or services.
48% respondents said that celebrity endorsement is essential for the success of product in the market
place.
56% respondents said that celebrity endorsement increases the trustworthiness of products.
44% respondents said that celebrity endorsement increases the brand recall.
50% respondents said that celebrity endorsement is essential for promotion of product and services in
this competitive marketplace.

20. 58% respondents said celebrity endorsement alters the buying behavior in positive way.
62% respondents said that celebrity endorsement increases the credibility of the product.
44% respondents said that celebrity endorsement attracts individuals towards thw product or services.
Chi-square test
H0- there is no significant difference between celebrity endorsement and
using a brand
H1- - there is significant difference between celebrity endorsement and
using a brand
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Do you think that
celebrity is required in
an advertisement * Do
you keep using a brand 50 100.0% 0 .0% 50 100.0%
only because of the
endorsing celebrity
Do you think that celebrity is required in an advertisement * Do you keep using a brand only because of the
endorsing celebrity Crosstabulation
Do you keep using a
brand only because of
the endorsing celebrity
Total
'yes' no

21. Do you think that 'yes' Count 12 28 40
celebrity is required Expected Count 9.6 30.4 40.0
in an advertisement
Residual 2.4 -2.4
no Count 0 10 10
Expected Count 2.4 7.6 10.0
Residual -2.4 2.4
Total Count 12 38 50
Expected Count 12.0 38.0 50.0
Chi-Square Tests
Asymp. Sig. Exact Sig. Exact Sig.
Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 3.947(b) 1 .047
Continuity
2.474 1 .116
Correction(a)
Likelihood Ratio 6.239 1 .012
Fisher's Exact Test .092 .046
Linear-by-Linear
Association 3.868 1 .049
N of Valid Cases 50
a Computed only for a 2x2 table
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 2.40.
Here p value is small than the .05 so we will reject the H0 and accept the H1