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The Effectiveness of
Celebrities as Product
     endorsers
Presented by: Courtney Goudes
Research Question
• Are Celebrities Effective As Product Endorsers?
Sub-research Questions
• SRQ1: What factors
  (credibility, attractiveness, expertise, familitarit
  y) have the most influence over pre-
  purchasing behavior?
• SRQ2: Do consumers care if the celebrity is
  mismatched, moderately matched, or perfectly
  matched or the product.
Purpose
•To understand if multiple uses of celebrities in brand
   promotion can increase the chances of recurring
                         purchases.
•To exams consumer responses to celebrities based on
  how well they were matched to the product they are
                         endorsing.
              • To determine which factors
 (credibility, expertise, attractiveness, or familiarity) pays
 the biggest role in determining how effective celebrities
                  are as product endorsers.
Theories
               Source Credibility Model
The source’s credibility is the degree to which a viewer
   perceives the source to possess knowledge or an
  appropriate experience and do not provide biased
 information. Thus two fundamental dimensions for
 source’s credibility are: expertise and trustworthiness
              (Hovland and Weiss 1951).
                 Matching Hypothesis
Theories
                Matching Hypothesis
“According to Match up theory the influence of using a
   celebrity on consumer perceptions depends on the
  congruency between the endorsed product and the
 celebrity. It also argues that the effect of using a star
  does not only depend on source of attractiveness or
source of credibility of the star but it depends basically
 on the fit between the image of the celebrity and the
                product.” (Solomon 1992)
Survey
• Participants:
   – 100 Nontraditional and Traditional Students at
           Queens University of Charlotte.
          – Freshman, Junior, Senior, and Graduate
   – Ages Groups – 18-26, 27-35, 36-43, 44-49, 50+
                           69       22        6      1   2
   – Genders
      • 50 Male
      • 50 Females
Act 1

  Celebrity
Endorser Love
Celebrity Endorser
• “a person who enjoys the public recognition and who uses
  this recognition in the name of goods while appearing with
  this one in advertising. They must have symbolic and cultural
  meanings when associating themselves with products they
  transfer these meanings to the endorsed products, and these
  meanings are passed to the target audience.” McCracken
  (1989)
Where does it start?
       television
Facts: While You’re Young
                             3mth infants
                   - 40% watch television regularly
         -This number will change to 90% by the age of two.

                             36 mth olds
          – can form mental images of organizations mascots

                    Leading Character Endorsers
                                   -Elmo
                              -Spongebob
                                   - Dora
                                  -Barbie
                          - Disney Princesses
                            - Buzz Lightyear
                                 - Batman
                               - Superman

          THESE CHARACTERS are just the Beginning for Future
                         Consumers
Facts:
• Approximately 25% of all commercials use
  celebrity endorsements, and advertisers must
  be aware of how they match their endorser to
  their brand. (Baker and Tagg 2001).
• According to Gaied and Rached (2010), the
  initial age for girls to be influenced by the
  celebrity endorsements ranged from 18 to 35.
How we are influenced
        television
Credible
Name, Expertise, Attraction, and
         Familiarity
Acts 2

Results &
Findings
Results
                  Matching Hypothesis

                                                   86%
90%

                                            78%
80%


70%


60%


50%
                                                           Males
                                                           Females
40%


30%

                        18%
20%                           14%


10%    4%
             0%
0%

      No Match    Moderately Matched   Perfectly Matched
Credible
Name, Expertise, Attraction, and
                  Familiarity credibility
 •two fundamental dimensions for source’s
 are: expertise and trustworthiness (Hovland and
 Weiss 1951).
 •Attractiveness and familiarity does play a role in
 how attracted the consumers are to the brands
 image, but it does not want to make the consumer
 engage in purchasing the product.
 • Hovland, Janis and Kelly (1953) defined expertise
 as the “extent to which a communicator is perceived
 to be a source of valid assertions.”
Excellent Credibility to their Name

70%
                     64%


60%


                           48%
50%



40%

              32%
                                                                              Males
30%                                                                           Females



        18%                                18%
20%                                  16%



10%

                                                    2%                 2%
                                                         0%       0%
0%

      Very Likely   Somewhat     Neither Likely   Somewhat    Very Unlikely
                      Likely     nor Unlikely     Unlikeley
Expertise in the product

60%
                     54%


50%
                           44%


40%
              36%



30%                                                                           Males
        26%
                                                                              Females


20%
                                     16%
                                           14%


10%
                                                                       4%
                                                    2%   2%       2%

0%

      Very Likely   Somewhat     Neither Likely   Somewhat    Very Unlikely
                      Likely     nor Unlikely     Unlikeley
Attractiveness
                     34%                   34%
35%
              32%
                                     30%
30%



25%


                           20%
20%

                                                    16%                         Males

15%                                                                             Females
        12%
                                                          10%
10%                                                                 8%


                                                                         4%
5%



0%

      Very Likely   Somewhat     Neither Likely   Somewhat      Very Unlikely
                      Likely     nor Unlikely     Unlikeley
Familiarity

60%


                     52%
                           50%
50%




40%




30%                                                                            Males
                                           24%                                 Females

              20%                    20%
20%


        12%

10%                                                  8%

                                                          4%       4%
                                                                        2%

0%

      Very Likely   Somewhat     Neither Likely    Somewhat    Very Unlikely
                      Likely     nor Unlikely      Unlikeley
Findings
• 64% of all the Males chose Credibility as their most
important variable when purchasing from a celebrity
endorse.

• 50% of all the Females placed the greatest amount of
emphasis on Familiarity for their purchase decision.

                         Ranking
 Males: Credibility, Expertise, Familiarity, Attractiveness
Females: Familiarity, Credibility, Expertise, Attractiveness
Findings
•Respondent’s answers show consumers are more
willing to purchase products from companies that have
perfectly matched the celebrity to the product they are
representing.
• Findings also indicate that there is a higher rate
purchase from celebrities that possess the following
qualities: credibility, expertise in the product being
represented, and familiarity.
References
•   Baker, M.,Tagg,S.(2001). Selecting Celebrity Endorsers: The Practitioner’s Perspective. Journal of Advertising and Research. 41. pp. 39-49
•   Bush, A., Craig, A., Victoria, D. (2004) Sports Celebrity Influence on Behavioural Intentions of Generation Y. Journal of Advertising Research. 44. pp. 108-118
•   Cooper, M. (1984). Can Celebrities Really Sell Products? Marketing and Media Decisions. 19 pp.64-65
•   Elberse, A.,Verleun, J. (2012). The Economic Value of Celebrity Endorsements. Journal of Advertising Research. June 2012. 146-165.
•   Friedman, H., Friedman, L. (1979). Endorser Effectiveness by Product Type. Journal of Advertising, 19, pp 63-71.
•   Gaied, A.,Rached, K. (2010). The Persuasive Effectiveness of Famous and Non Famous Endorsers in Advertising. IBIMA Business Review.Volume 2010. pp. 14
•   Hoffner,C., Cantor, J. (1991). Perceiving and Responding to Mass Media Characters. In J. Bryant and D. Zillman (eds), Responding to the Screen: Resception and
    Reaction Process, pp. 63-102.
•   Hovland,C., Weiss, W. (1951). The influence of source credibility on communication effectiveness. Public Opinion Quarterly. 15. pp. 635-650
•   Hovland, C., Janis I., Kelly, H. (1953). Construction and Validation of scale to measure celebrity endorsers perceived expertise, trustworthiness, and attractiness.
    Journal of Advertising 19. pp. 39-52
•   McCracken, G. (1989). Who is the celebrity endorser? Cultural Foundations of the Endorsement Process. Journal of Consumer Research. 16. pp. 310-321.
•   McDonough, J. (1995). Bringing brands to life. Advertising Age Midwest Region Edition. 66. pp. 3
•   McGuire, W. (1985). Attitudes and Attitude Change.The Handbook of Social Pyschology. 2. pp. 233-346
•   Mowen, J., Brown, S. (1981). On Explainging and Predicting the Effectiveness of Celebrity Endorsers. Advances in Consumer Research. 8. pp.437-441.
•   O’Mahony, S., Meenaghan, T. (1997). Research and Impact of Celebrity Endorsements on Consumers, New way of integrated communication. The
    Netherlands, ESCOMAR, pp. 1-16.
•   Pornpitakpan, C. (2003) The Effect of Celebrity Endorsers Perceived Credibility on Product Purchase Intention: The Case of Singaporeans. Journal of International
    Consumer Marketing, 16. pp. 55-74.
•   Rovell, D. (2006). Investors Fret About Nike’s Star Endorsements. CNBC, September 22, 2006.
•   Solomon, M.,Ashmore, R., Longo, L. (1992). The Beauty Match-Up Hypothesis: Congruence Between Types of Beatuy and Product Images in Advertisng, Journal of
    Advertising . 21. pp. 23-34.
•   Tripp, C., Jensen, T., Carlson, L. (1994). The Effect of Multiple Product Endorsements by Celebrities on Consumers’ Attitudes and Intentions. Journal of Consumer
    Research. 20. pp. 535-547.
•   Walker, M., Langmeyer, L. (1992). Celebrity Endorsers: Do You Get What You Pay For? Journal of Service Marketing. 6 pp. 35-42.
•   Wooeside, A., Devenport, W. (1974). The Effect of Salesman Similarity and Expertise on Consumer Purchasing Behavior. Journal of Marketing Research. 11. pp. 198-
    202.
Thank you for your Time

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The effectiveness of celebrities as product endorsers

  • 1. The Effectiveness of Celebrities as Product endorsers Presented by: Courtney Goudes
  • 2. Research Question • Are Celebrities Effective As Product Endorsers?
  • 3. Sub-research Questions • SRQ1: What factors (credibility, attractiveness, expertise, familitarit y) have the most influence over pre- purchasing behavior? • SRQ2: Do consumers care if the celebrity is mismatched, moderately matched, or perfectly matched or the product.
  • 4. Purpose •To understand if multiple uses of celebrities in brand promotion can increase the chances of recurring purchases. •To exams consumer responses to celebrities based on how well they were matched to the product they are endorsing. • To determine which factors (credibility, expertise, attractiveness, or familiarity) pays the biggest role in determining how effective celebrities are as product endorsers.
  • 5. Theories Source Credibility Model The source’s credibility is the degree to which a viewer perceives the source to possess knowledge or an appropriate experience and do not provide biased information. Thus two fundamental dimensions for source’s credibility are: expertise and trustworthiness (Hovland and Weiss 1951). Matching Hypothesis
  • 6. Theories Matching Hypothesis “According to Match up theory the influence of using a celebrity on consumer perceptions depends on the congruency between the endorsed product and the celebrity. It also argues that the effect of using a star does not only depend on source of attractiveness or source of credibility of the star but it depends basically on the fit between the image of the celebrity and the product.” (Solomon 1992)
  • 7. Survey • Participants: – 100 Nontraditional and Traditional Students at Queens University of Charlotte. – Freshman, Junior, Senior, and Graduate – Ages Groups – 18-26, 27-35, 36-43, 44-49, 50+ 69 22 6 1 2 – Genders • 50 Male • 50 Females
  • 8. Act 1 Celebrity Endorser Love
  • 9. Celebrity Endorser • “a person who enjoys the public recognition and who uses this recognition in the name of goods while appearing with this one in advertising. They must have symbolic and cultural meanings when associating themselves with products they transfer these meanings to the endorsed products, and these meanings are passed to the target audience.” McCracken (1989)
  • 10. Where does it start? television
  • 11. Facts: While You’re Young 3mth infants - 40% watch television regularly -This number will change to 90% by the age of two. 36 mth olds – can form mental images of organizations mascots Leading Character Endorsers -Elmo -Spongebob - Dora -Barbie - Disney Princesses - Buzz Lightyear - Batman - Superman THESE CHARACTERS are just the Beginning for Future Consumers
  • 12. Facts: • Approximately 25% of all commercials use celebrity endorsements, and advertisers must be aware of how they match their endorser to their brand. (Baker and Tagg 2001). • According to Gaied and Rached (2010), the initial age for girls to be influenced by the celebrity endorsements ranged from 18 to 35.
  • 13. How we are influenced television
  • 16. Results Matching Hypothesis 86% 90% 78% 80% 70% 60% 50% Males Females 40% 30% 18% 20% 14% 10% 4% 0% 0% No Match Moderately Matched Perfectly Matched
  • 17. Credible Name, Expertise, Attraction, and Familiarity credibility •two fundamental dimensions for source’s are: expertise and trustworthiness (Hovland and Weiss 1951). •Attractiveness and familiarity does play a role in how attracted the consumers are to the brands image, but it does not want to make the consumer engage in purchasing the product. • Hovland, Janis and Kelly (1953) defined expertise as the “extent to which a communicator is perceived to be a source of valid assertions.”
  • 18. Excellent Credibility to their Name 70% 64% 60% 48% 50% 40% 32% Males 30% Females 18% 18% 20% 16% 10% 2% 2% 0% 0% 0% Very Likely Somewhat Neither Likely Somewhat Very Unlikely Likely nor Unlikely Unlikeley
  • 19. Expertise in the product 60% 54% 50% 44% 40% 36% 30% Males 26% Females 20% 16% 14% 10% 4% 2% 2% 2% 0% Very Likely Somewhat Neither Likely Somewhat Very Unlikely Likely nor Unlikely Unlikeley
  • 20. Attractiveness 34% 34% 35% 32% 30% 30% 25% 20% 20% 16% Males 15% Females 12% 10% 10% 8% 4% 5% 0% Very Likely Somewhat Neither Likely Somewhat Very Unlikely Likely nor Unlikely Unlikeley
  • 21. Familiarity 60% 52% 50% 50% 40% 30% Males 24% Females 20% 20% 20% 12% 10% 8% 4% 4% 2% 0% Very Likely Somewhat Neither Likely Somewhat Very Unlikely Likely nor Unlikely Unlikeley
  • 22. Findings • 64% of all the Males chose Credibility as their most important variable when purchasing from a celebrity endorse. • 50% of all the Females placed the greatest amount of emphasis on Familiarity for their purchase decision. Ranking Males: Credibility, Expertise, Familiarity, Attractiveness Females: Familiarity, Credibility, Expertise, Attractiveness
  • 23. Findings •Respondent’s answers show consumers are more willing to purchase products from companies that have perfectly matched the celebrity to the product they are representing. • Findings also indicate that there is a higher rate purchase from celebrities that possess the following qualities: credibility, expertise in the product being represented, and familiarity.
  • 24. References • Baker, M.,Tagg,S.(2001). Selecting Celebrity Endorsers: The Practitioner’s Perspective. Journal of Advertising and Research. 41. pp. 39-49 • Bush, A., Craig, A., Victoria, D. (2004) Sports Celebrity Influence on Behavioural Intentions of Generation Y. Journal of Advertising Research. 44. pp. 108-118 • Cooper, M. (1984). Can Celebrities Really Sell Products? Marketing and Media Decisions. 19 pp.64-65 • Elberse, A.,Verleun, J. (2012). The Economic Value of Celebrity Endorsements. Journal of Advertising Research. June 2012. 146-165. • Friedman, H., Friedman, L. (1979). Endorser Effectiveness by Product Type. Journal of Advertising, 19, pp 63-71. • Gaied, A.,Rached, K. (2010). The Persuasive Effectiveness of Famous and Non Famous Endorsers in Advertising. IBIMA Business Review.Volume 2010. pp. 14 • Hoffner,C., Cantor, J. (1991). Perceiving and Responding to Mass Media Characters. In J. Bryant and D. Zillman (eds), Responding to the Screen: Resception and Reaction Process, pp. 63-102. • Hovland,C., Weiss, W. (1951). The influence of source credibility on communication effectiveness. Public Opinion Quarterly. 15. pp. 635-650 • Hovland, C., Janis I., Kelly, H. (1953). Construction and Validation of scale to measure celebrity endorsers perceived expertise, trustworthiness, and attractiness. Journal of Advertising 19. pp. 39-52 • McCracken, G. (1989). Who is the celebrity endorser? Cultural Foundations of the Endorsement Process. Journal of Consumer Research. 16. pp. 310-321. • McDonough, J. (1995). Bringing brands to life. Advertising Age Midwest Region Edition. 66. pp. 3 • McGuire, W. (1985). Attitudes and Attitude Change.The Handbook of Social Pyschology. 2. pp. 233-346 • Mowen, J., Brown, S. (1981). On Explainging and Predicting the Effectiveness of Celebrity Endorsers. Advances in Consumer Research. 8. pp.437-441. • O’Mahony, S., Meenaghan, T. (1997). Research and Impact of Celebrity Endorsements on Consumers, New way of integrated communication. The Netherlands, ESCOMAR, pp. 1-16. • Pornpitakpan, C. (2003) The Effect of Celebrity Endorsers Perceived Credibility on Product Purchase Intention: The Case of Singaporeans. Journal of International Consumer Marketing, 16. pp. 55-74. • Rovell, D. (2006). Investors Fret About Nike’s Star Endorsements. CNBC, September 22, 2006. • Solomon, M.,Ashmore, R., Longo, L. (1992). The Beauty Match-Up Hypothesis: Congruence Between Types of Beatuy and Product Images in Advertisng, Journal of Advertising . 21. pp. 23-34. • Tripp, C., Jensen, T., Carlson, L. (1994). The Effect of Multiple Product Endorsements by Celebrities on Consumers’ Attitudes and Intentions. Journal of Consumer Research. 20. pp. 535-547. • Walker, M., Langmeyer, L. (1992). Celebrity Endorsers: Do You Get What You Pay For? Journal of Service Marketing. 6 pp. 35-42. • Wooeside, A., Devenport, W. (1974). The Effect of Salesman Similarity and Expertise on Consumer Purchasing Behavior. Journal of Marketing Research. 11. pp. 198- 202.
  • 25. Thank you for your Time