Celebrity Endorser Influence Essay Example for Free

Celebrity Endorser Influence Essay Celebrity Endorser Influence on Attitude Toward Advertisements and Brands Bahram Ranjbarian Associate Professor of management, Department of Management The University of Isfahan, Isfahan, Iran E-mail: Bahram1 [emailprotected] Zahra Shekarchizade Master Student of Business Management, Department of Management University of Isfahan, Isfahan, Iran E-mail: [emailprotected] Zahra Momeni Master Student of Business Management, Department of Management University of Isfahan, Isfahan, Iran E-mail: [emailprotected] Abstract Purpose- This study aims to analyze the celebrity endorser influence on attitude toward advertisements and brands. Design/methodology/approach – A theoretical model is developed and tested with a sample of 193 students in University of Isfahan in 2009. Structural equation modeling was used with LISREL 8.50 and the maximum likelihood (ML) method. Findings – The findings show that attitude toward celebrity endorser can influence on attitude toward brand directly or indirectly. In indirectly approach, attitude toward advertisement is as a mediator between attitude toward celebrity endorser and attitude toward brand. On the other hand, attitude toward celebrity endorser has not significant effect on purchase intention. Originality/value – This paper provides a model connecting attitude toward celebrity endorser, attitude toward advertisement and attitude toward brand that has been examined and validated using a sample of students in University of Isfahan. Paper type- Research paper Keywords: Endorsement, Celebrities, Brand, Attitude, Advertisement Introduction Today one of the most prevalent forms of retail advertising is through using of celebrity endorsement (White et al, 2007). In fact celebrity endorsers are being used in about 25 percent of all television advertisements in order to promote brands (Erdogan et al, 2001).These endorsers are being paid by about 10 percent of advertisers budgets (Agrawal and Kamakura, 1995). Marketers invest huge amounts of money in contracts with celebrity endorsers each year, since they believe that celebrities affect the process of selling of their brands or products (Katyal, 2007). A celebrity endorser is a wellknown person (e.g., actors, sports figures and artists) because of his successes in a special field other than the endorsed product class (James, 2004). Celebrity endorsers are used by firms who want to 399 European Journal of Social Sciences – Volume 13, Number 3 (2010) support a product or service (Amos et al, 2008). Since presence of celebrity endorsers affects purchase decisions of consumers positively, producers and retailers have always preferred to use celebrity endorsements in order to sell their products (Stafford et al, 2003; Erdogan, 1999; Kamins, 1990). Kaikati (1987) believes that using of celebrities in advertisements could have many benefits and advantages including: 1) facilitating of brand identification 2) changing or impressing the negative attitude towards a brand 3) repositioning an existing brand 4) global marketing or positioning of a brand or product 5) affecting purchase intentions of consumers. Although using of celebrity endorsers as brand messengers is impressive, but it could have some risks. For instance, celebrities who are known to be guilty because of negative events (e.g., accident) may have harmful effects on the products that they endorse (Lou ie and Obermiller, 2002). Studies reveal that using of attractive celebrity causes to increase attitude towards advertisements. Such attitude towards advertisements is defined as mental states which are used by individuals to organize the way they perceive their environment and control the way they respond to it (Haghirian, 2004). There is a considerable correlation between desirable attitudes with regard to advertising and rating of certain advertisements by respondents as being likeable, irritating, delightful, etc (Bauer and Greyser, 1968). Celebrity endorsers enhance awareness of a companys advertising, create positive feelings towards brands and are perceived by consumers as more amusing (Solomon, 2002). Thus using of a celebrity in advertising causes to influence brand attitude and purchase intentions of consumers in a positive way. Celebrity endorsement has a strong effect on consumers memory and learning approach too. Most consumers are not in a purchasing situation when they are encounter with message of the brand. Marketers use celebrity endorsement in order to help better storage of information in consumers minds which they can easily remember in purchasing situations (Schultz and Brens, 1995). However, there are many studies about celebrity endorser, but it seems that there are limited researches about the relationship between celebrity endorser and attitudes. The purpose of this study is to specify the impact of using celebrity endorsers in Iranian advertisements on attitudes of students in University of Isfahan toward those ads and brands. Literature Review Some properties such as likeability, expertise, trustworthiness and similarity cause a celebrity endorser to become a source of persuasive information and this creates a sense of certainty which has been revealed in many studies (Suranaa, 2008). Also physical attractiveness of the endorser is considerable in effectiveness of a message (Khatri, 2006). Acceptance of a message by a receiver could be influenced by celebrity endorsers as believable sources of information about a product or a firm (Amos et al, 2008). Using of celebrity endorsers to support products is explained by balance theory principles too. According to this theory, successful companies establish an emotional relation between the observer and endorser and a relation between endorser and brand too (Mowen, 2000). Before proceeding conceptual model, we describe the main constructs of this study. Celebrity Endorser McCracken (1998) has defined celebrity endorser as any individual who enjoys public cognition and who uses this cognition on behalf of a consumer by appearing wit in an advertisement. Moreover, celebrity is used as testimonial, endorsement, actor or spokesperson by the firm. Research has demonstrated that celebrity endorsement affects consumers feelings in general and it could affect the attitude of consumers towards the advertisement and brands too. This could result in enhancing of purchase intentions and as a result enhancing of sales. Some properties like credibility, physical attractiveness and likeability of celebrity endorser influence the ability of one person to impact other person (Amos et al, 2008). Source credibility is referred to identifying of communicators positive properties which influences acceptance of a message by the receiver (Ohanian, 1990). This consists of two main dimensions of expertise and 400 European Journal of Social Sciences – Volume 13, Number 3 (2010) trustworthiness. Source expertise refers to the degree which a communicator is perceived to be a source of valid assertion (Roozen, 2008). Source trustworthiness refers to faithfulness and reliability of the spokesperson (Khatri, 2006). Source attractiveness is the personality, likeability and similarity of endorsers to the receiver, thus to the perceived social values of the source (Solomon, 2002). Physical attractiveness of the source include being attractive, beautiful, elegant and charming. According to the studies in this ground, expertise dimension is more significant than physical attractiveness for matching of a brand with a suitable endorser (Brian and Michael, 1998). Likeability is referred to the positive or negative feelings that consumers have towards a source of information. We can define likeability as affection for the source because of its physical appearance and behavior (Erdogan, 1999). Though some research results reveal effectiveness of celebrities as endorsers (Freiden, 1984), but other researches suggest that celebrity endorsement may have different degrees of effectiveness depending on other factors like the fit between the celebrity and the advertised product (Till and Shimp, 1998). Celebrity Endorsers Effect on Aad and Ao Marketers are especially interested in consumers attitudes towards advertisements and brands. Essentially, attitudes are our predispositions with regard to things. An attitude shows whether we like something or not. Attitudes have three basic components: affective, cognitive and behavioral. Affective is related to our liking or feelings about an object. Cognitive is referred to beliefs about an object and behavioral component regards actions we take about that object (Severin and Tankard, 2001). Attitude towards advertisement is defined as a learned tendency to respond in a consistently desirable or undesirable approach toward advertising in general (Haghirian, 2004). On the other side, attitude towards the advertisement (Aad) is whether the consumer likes an advertisement (Ad) or hates it. Determinants of Aad consist of attitude towards the advertiser, assessment of the Ad execution itself, the mood evoked by Ad, and the extent to which the Ad affect viewers encouragement. Assessment of brands could be influenced by attitudes towards Ads. Of course what causes an advertisement to be impressive will change noticeably cross-culturally (Arnold et al, 2004). In performed studies, Aad is focused on as a mediator of advertisers effects on brand attitudes and purchase intentions (Suhere and Ispir, 2009). In recent studies, this issue has been proved that using of celebrity endorsement has a positive impact on attitudes of the consumer towards products and brands with which they are associated brand (Seno and Lukas, 2005). Agarwal and Malhotra (2005) have defined brand attitude as consumers general evaluative judgment of a brand based on brand beliefs. Such beliefs concern product-related attributes, like practical and experimental benefits. A successful endorser is able to enhance intentions and preferences towards brands directly or indirectly. An endorser who has major source factors of credibility (like expertise, trustworthiness and effectiveness) is able to impress purchase intentions of the consumer considerably (Liu et al, 2007). Information from a credible source can impress ideas, attitudes and behavior through a process called internalization (Belch and Belch, 1993). Internalization occurs when the receiver is motivated to have an issue. The receiver learns and accepts the idea of the credible spokesperson, since he supposes that information of this person represents an accurate position on the issue. Therefore, if such spokesperson who is known to be an expert endorses a product, consumers will more probably have a desirable idea about that advertisement and brand and they will consider it in their shopping list the next time they go shopping. Researchers have used the identification process of social influence in order to explain the effectiveness of celebrity endorsers (Basil, 1996). This theory suggests that if an individual identifies with another individual, then he is more likely to accept an attitude or behavior of that individual or a group. The internalization process of social influence is occurred when an individual accepts influence because the induced behavior is congruent with his value system†. An individual accepts the influence, since it provides a solution to a problem (Daneshvary and Schwer, 2000). In the elaboration likelihood model (ELM), individuals level of motivation to process central message arguments is represented which is one of its key factors that affects the relative impact of 401 European Journal of Social Sciences – Volume 13, Number 3 (2010) central and peripheral processing (Petty and Cacioppo, 1986). When applied to an adverting context, ELM suggests that consumers motivation to centrally process brand-relevant aspects of an advertisement is enhanced, the impact of central processing on brand attitudes should be enhanced, the effect of peripheral processing on brand attitudes should be reduced and the effect of brand attitudes on purchase intentions should be enhanced (Lafferty and Goldsmith, 1999). In this theoretical model, the endorser serves as cue just during peripheral processing. Therefore, the effect of the endorser should be reduced while central processing is enhanced. Mackenzie and Lutz (1989) have stated that advertiser credibility is a central processing cue more than any other thing. Credibility of the source is considered important in influence acceptance. A consumer will accept the accurate influence (information) and apply it if t here the source is perceived to be credible. It is accepted because it is demand by ones own values. Therefore, a products endorsement by a credible source may impress purchase behavior (Danwshvary and Schwer, 2000). As a result, celebrity endorsement can increase the process of recalling and consume assessment of products (Khatri, 2006). On the other hand, celebrity endorsement has a severe effect on learning approach and memory. Researchers in the field of marketing and social psychology have studied the manner of impressing of purchase decision by celebrity endorsements. Various hypotheses have been proposed including having recall of the product by celebrity endorsement, celebrities have credibility on expertise that makes the product more desirable or increases perceptions of quality; the celebrity endorsers image is transferred to the product so that those who use the product are associated with the image. Experiments suggest that celebrity endorsement can increase recall and consume assessment of the products in certain situations (Clark and Horstman, 2003). Most of the times, making connection with the brand message is occurred when consumers are not in a purchasing situation. Marketers use celebrity endorsement so that information will be kept in consumers minds better and in the case of purchasing situation, they can easily retrieve it (Surana, 2008). A successful endorser strategy can enhance the level of consumers recalling towards product information, reinforces consumers recognition to endorsed brands, positively influences consumers attitude to low-involved products and even enhance consumers purchase intention and preference towards brands (Liu et al, 2007) Therefore, hypothesizes of the study are as follows. H1: Attitude toward ad is positively affected by attitude toward celebrity endorser. H2: Attitude toward brand is positively affected by attitude toward celebrity endorser H3: Attitude toward brand is positively affected by attitude toward advertisement. H4: Intention to buy is positively affected by attitude toward celebrity endorser Method Data Collection Information was obtained from randomly selected students from University of Isfahan through survey questionnaires during September- November 2009. University of Isfahan is one of the major universities in the fields of science, human science and engineering. A total sample of 193 participants was obtained. The sample was composed of 137 women (71 percent) and 56 men (21 percent). A cluster sampling procedure with age and degree as main control variables was applied. The age of the respondents ranged from 19 to 30 years, with a mean of 24. All questionnaires were self-administered by the participants without interference from researchers. Measures The study uses multi-item scales to measure the constructs in our model. All items in the questionnaire were measured on a five-point Likert-type scale anchored from â€Å"strongly disagree† (1) to â€Å"strongly agree† (5). Some of the measures were available in the literature, though most were adapted to suit this European Journal of Social Sciences – Volume 13, Number 3 (2010) particular context. To measure attitude toward celebrity endorser we used ten items. Attitude toward advertisement and attitude toward brand were measured with six items and five items, respectively. In order to measure reliability of questions in the questionnaire, 30 questionnaires have been pre-tested through pilot studies. Then, amount of confidence coefficient has been calculated by method of Cronbachs alpha for which 0.83 % is obtained. This number shows that the applied questionnaire enjoys confidentiality or in other words the necessary reliability. Results Measurement Model Measurement model Structural equation modeling with LISREL 8.54 and the maximum likelihood (ML) method was used to analyse the data.. LISREL is a structural equations modeling technique that traces structural relations in a set of data (Eriksson et al, 2004). Structural equation modelling was used because it allows to estimate multiple and interrelated dependence relationships and unobserved factors can be represented in these relationships. Additionally, measurement error in the estimation process is accounted for (Hair et al., 1998). The model is assessed with the comparative fit index (CFI), standardised root meanresidual (SRMR), root mean square error of approximation (RMSEA), and Akaike’s (1987) information criterion (AIC). The measurement model provided a good fit to the data: (CFI = 0:98, SRMR=0.058, RMSEA = 0.015 and AIC =396.22). All values of CFI, SRMR, and RMSEA meet the standards suggested by Hu and Bentler (1999): 0.95 for CFI, 0.08 for SRMR, and 0.06 for RMSEA.There are no Guidelines for the AIC but lower values indicate better fit. The fit of the structural model is good and is reported in Table I. In the following we will test our hypotheses and consequently report the standardised path coefficients. As shown in Table I, three of hypotheses are empirically supported and one of them is not confirmed. The effect of attitude toward celebrity endorser on attitude toward advertisement is significant (standardised path coefficient = 0:49). This shows that the higher the attitude toward endorser, the more the attitude toward advertisement. Attitude toward celebrity endorser also have significant effect on attitude toward brand (standardised path coefficient= 0.24), but this effect is comparatively weaker than its effect on attitude toward advertisement. On the other hand, the effect of attitude toward advertisement on attitude toward brand is significant (standardised path coefficient = 0:56). This clearly shows that attitude toward advertisement has the highest standardized path coefficient and therefore has the strongest influence on attitude toward brand. The results show that the effects of attitude celebrity endorser on Purchase intention is not significant (standardised path coefficient = 0.11). This means that attitud toward celebrities, does not necessarily always translates into purchase intentions. Discussion The purpose of this study is to examine the relationship among attitude toward celebrity endorser and attitude toward advertisement and brand. Effects of a celebrity endorser on respondents assessments about advertisements and products endorsed by celebrities have been studied previously. There are some interesting findings for using of celebrity endorsers in Iranian advertisements. Attitude towards a celebrity endorser has a direct positive effect on attitude towards advertisement. Attitude towards advertisement has important effects on attitude towards brands, too and its effect is comparatively stronger than the effect of celebrity endorser. But the effect of attitude toward celebrity endorser on purchase intention is not considerable. Results of this study demonstrate that attitude towards celebrity endorser has an indirect effect on attitude towards brand. This result confirms outcomes of the previous research by Agarwal and Kamakura (1995), Till and Busler (1998), and White et al (2008). When there is a fit between the   European Journal of Social Sciences – Volume 13, Number 3 (2010) endorser and the endorsed product, endorsers image helps construct the image of the brand in consumers minds. In fact, using of an attractive endorser has a positive impact on consumer attitudes towards a brand, because attractive endorsers have a tendency to get more attention than less attractive ones. On the other hand, experience of celebritys negative information can have an undesirable effect on the endorsed product. Transfer of negative information between the celebrity endorser and the endorsed product could be facilitated through cognitive relational pathway. We have considered social position of artists because people have more positive attitude towards artists. So, they distribute attitude towards artists to attitude towards endorsed brand. The association between attitude towards celebrity endorser and attitude towards advertisement has been shown in numerous studies, as the relationship between sports celebrity endorsements and retail products adverting are reported (White et al, 2008) and sports celebrity endorsements are being used in advertisements to impress brand selection. It is recognized in one study that attitude towards advertisement is considered as an interagent that influences attitude towards brand (Suhere and Ispir, 2009). Results of our study reveal that attitude towards advertisement is as an interagent between attitude towards celebrity and attitude towards brand. In our opinion, Iranians are interested in artists and know them as credible sources. So, ads makers use artists as celebrity to impress viewers attitudes towards advertisement and thereupon attitude towards brand. According to previous studies about the effect of the celebrity endorser on purchase intentions, such as Kamins (1990), Ohanian (1991), Liu et al (2007), we expected that positive attitude towards celebrities impressed purchase intentions. But results of this study confirm research outcomes of OMahony and Meenaghan (1997). According to this study, attitude towards celebrities does not necessarily always interpret in to purchase intentions. It seems that Iranians consumer tendency for buying is influenced by other various items such as age, gender, income and education too. Limitation This study has some limitations. The primary limitation of the present research relates to generalizability. The sample was restricted to students in University of Isfahan and this limits our results to be generalized, too. Another relevant consideration is that numerous girl students in university of Isfahan are more than its boy students. Also, this study relied exclusively on questionnaires to assess influence attitude toward celebrity endorser on attitude toward advertisements and brands, whereas this relationships need to be more investigated. On the other hand, this paper could not estimate effect of attitude toward celebrity endorser on purchase intention. In addition, our results are relational and not causal; therefore, it can not be concluded from this study whether attitude toward advertisement and brand is only cause or result of attitude toward celebrity endorser. Conclusion In this study the goal was to indicate the influence of using celebrity endorsers in Iranian advertisements on attitudes of students in University of Isfahan toward those advertisements and brands. The result of this study showed that the positive and significant relationship between attitude toward celebrity endorser and attitude toward advertisements and brands. By analyzing the output resulting from testing hypotheses, it can be concluded that attitude toward celebrity endorser has directly or indirectly influence on attitude toward brand. Consequences suggested that attitude toward advertisement was as a mediator between attitude toward celebrity endorser and attitude toward brand. On the other hand, attitude toward celebrity endorser hadn’t significant influence on purchase intention. So, future researches should put more effort into making strong believable explanations for how celebrity endorsers are able to have significant influence on consumer intention for purchase. References [1] [2] Agrawal, J. and Kamakura, W.A. (1995), â€Å"The economic worth of celebrity endorsers: an event study analysis†, Journal of Marketing, Vol. 59 No. 3, pp. 56-62 Agarwal, J. and Malhotra, N.K. (2005), â€Å"An integrated model of attitude and affect: theoretical foundation and an empirical investigation†, Journal of usiness Research, Vol. 58 No. 4, pp. 483-93. Arnoulds, E., Price, L. and Zinkhan, G. (2004). â€Å"Consumers†. Boston: Mc Graw-Hill. Basil, M.D. (1996), â€Å"Identification as a mediator of celebrity effects†, Journal of Broadcasting Electronic Media, Vol. 40, fall, pp. 478-95. Bauer, R. A. and Greyser, S. A. (1968). â€Å"Advertising in America: The Consumer View†. Boston: Harvard University. Belch, G.E., and Belch, M.A. (1993), â€Å"Introduction to Advertising and Promotion: An Integrated Marketing Communications Perspective†, Irwin, Homewood, IL. Clark, R.C. and Horstman, I.J. (2003), â€Å"Celebrity Endorsents† (www.bu.edu/ e.con/seminar/micro/pdffav) celebendorse.bu.pdf. Clinton, A., Gary, H. and David, S. (2008), â€Å"Exploring the relationship between celebrity endorser effects and advertising effectiveness, a quantitative synthesis of effect size†, International Journal of Advertising, Vol.27 No.2, pp. 209–234. Daneshvary, R. and Schwer R.K. (2000), â€Å"The association endorsement and consumers intention to purchase†, Journal of Consumer Marketing, Vol. 17 No. 3 2000, pp. 203-213. Erdogan, B.Z. (1999), â€Å"Celebrity endorsement: a literature review†, Journal of Marketing Management, 15(3), pp. 291–314. Erdogan, B.Z., Baker, M.J. and Tagg, S. (2001), â€Å"Selecting celebrity endorsers: the practitioner’s perspective†, Journal of Advertising Research, Vol. 41 No. 3, pp. 39-48. Eriksson,K., Kerem,K. and Nilsson,D. (2005), â€Å"Customer acceptance of internet banking in Estonia†, International Journal of Bank Marketing,Vol.23 No. 2, pp. 200-216. Freiden, J.B. (1984), â€Å"Advertising spokesperson effects: an examination of endorser type and gender on two audiences†, Journal of Advertising Research, Vol. 24 No. 5, pp. 33-41. Haghirian, P. and Madlberger, M. (2005), â€Å"Consumer attitude toward advertising via mobile devices an empirical investigation among Austrian users†, in Proceedings of the European Conference on Information Systems, Regensburg, Germany, May 2005, (accessed on 4/26/2006). Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1998), â€Å"Multivariate Data Analysis†, 5th Ed., Prentice-Hall, Englewood Cliffs, NJ. Hu, L.-T. and Bentler, P. (1999), â€Å"Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives†, Structural Equation Modeling, Vol. 6 No. 1, pp. 1-55. Kaikati.J.G. (1987),â€Å"Celebrity advertising, a review and synthesis†, International Journal of Advertising, 6.93-105. Kamins, M.A. (1990), â€Å"An investigation into the ‘match-up’ hypothesis in celebrity advertising: when beauty may be only skin deep†, Journal of Advertising, Vol. 19 No. 1, pp. 413. Lear,K.E, Runyan,R.C. and Whitaker,W.H. (2009), â€Å"Sports celebrity endorsements in retail products adver tising†, International Journal of Retail Distribution Management, Vol. 37 No. 4, pp. 308-321. Katyal, S. (2008), â€Å"Impact of Celebrity Endorsement on a Brand†, Chillibreeze writer, available at www.chillibreeze.com/articles/ accessed on 12th, July. Khatri, P. (2006), â€Å"Celebrity Endorsement: A Strategic Promotion Perspective†, Indian Media Studies Journal Vol.1 No.1. July-Dec. 405