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Transcript
Proposal
“Do celebrities’ endorsement affects the customer purchase
decisions?”
By:
Sakina Alwedaee | 20090242
Table of Contents
Abstract ........................................................................................................................................................ 3
Introduction .................................................................................................................................................. 3
Literature Review ......................................................................................................................................... 4
Research Methodology ................................................................................................................................ 7
Research Design ....................................................................................................................................... 7
Primary Research.................................................................................................................................. 8
Secondary Research ............................................................................................................................. 9
Data Analysis .......................................................................................................................................... 10
Limitations of the research .................................................................................................................... 10
Schedule, Required Resources and Budget ............................................................................................... 11
Reference .................................................................................................................................................... 12
Page 2 of 12
Abstract
The field of influential marketing has been greatly explored in context of celebrity endorsement
and its use in marketing. The current study focuses on exploring the effect of celebrity
endorsement on consumer choices of purchases. The study will adopt a qualitative
methodology for the research and focuses to address the questions raised to explore the
research topic. This proposal will be conducted in order to preface for the study and research; it
contains a general introduction about the effect of the celebrities’ endorsement on the
customer choices, a clear research question and related hypothesis. As well, a literature review
for an existing relevant researches and a detailed methodology section about how to collect the
researches data and evaluated them. The conclusion includes realistic forecast of the cost, time
and resources needed for such a study.
Introduction
Marketing has emerged from being a skill to a science where a large number of different factors
are considered in context of their impact on consumer behaviour and the choices that
consumers make in relation to consumption patterns. In this regard, the marketing experts
have been studying a number of external factors that influence consumer in decision-making
and include factors like celebrity endorsement, brand loyalty, brand personality and image and
the overall trend in the market, to name a few. However, among these, celebrity endorsement
is one of the most prominent and visible tactic that has been used by marketers for modifying
consumer behaviour positively to boost the consumption and hence the sales of the given
product. Celebrity endorsement represents a unique form of advertisement campaign for
brands where celebrities are engaged and their fame and repute is used as a platform for
promoting the given product or service. The most common products that extensively use
celebrity endorsements include perfumes, clothing, sports gear, personal hygiene and
cosmetics. It is to be noted the celebrity endorsements are very common in form of television
advertisements, launching ceremonies and such other marketing event. The most common
type of celebrity endorsement, also known as celebrity branding is through nominating a
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celebrity as a brand ambassador. This allows the marketing company to use the status of the
celebrity to market its product or service, wherein the model appears are promotional figure.
Bahrain is always trying to be up-to-date with the improvements that would keep the
renaissance in a high level. Thus, Bahrain tracks the international and local competition
especially in business sector in order to develop the economy. For example, related to the
celebrities’ endorsement effect on the customer decision; Bahrain uses this strategy in most of
the businesses to attract customers and raise their financial sector which lead the other sectors.
This strategy is very clear in which the customer could notice the celebrities’ advertisements in
everywhere in posts and banners form on the walls and doors of shops and streets.
The research aim of this thesis/dissertation is “Do celebrities’ endorsement affects the
customer purchase decisions?”. In simple words, the research paper focuses on exploring the
impact of celebrity endorsement on the choices that the customers make regarding purchases.
It is to be noted that celebrity endorsement is one of the most common forms of influential
marketing and its relation to consumer choices has widely been explored and established in
different researches. In order to study the hypothesis “Consumer purchase model changes or
influence with celebrity involvement for products”; a detailed research has been conducted and
evaluated carefully to cover all the hypothesis’s aspects.
Literature Review
Friedman and Friedman (1979) researched the concept of celebrity and celebrity endorsement
in marketing perspective and arrived at a definition that a natural person who gains public
attention and audience due to participation in entertainment (art, sports or other) or any like
achievement. However, Copper (1984) explored some general beliefs among advertisers and
found that messages delivered by celebrities are considered to be highly reliable by the
audience, adding to the credibility of the brand as well as the business. In addition, Copper
(1984) explained that marketers have a belief that messages delivered by celebrities are more
likely to be recalled, get attention of the audience and brings positive behaviour from the
consumers. Celebrity endorsement is commonly used in television and print advertisement;
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however, the impact of celebrity endorsement versus non-celebrity involvement was studied by
Menon (1998). He adopted a multivariate analysis to establish a model explaining the
phenomena. The focus on his study was on Milk (a food item) and the attributes he tested
include believability, knowledge, appearance and liking for celebrity in the advertisements. In
addition to this, Laferty and Goldsmith (1999) extended their study in exploring the endorser
credibility that has direct link with consumers’ attitude and purchase decisions. However, the
author found that corporate credibility i.e. image of the business or firm also plays a vital role in
addition to celebrity endorsement. However, in this context, a conclusive research was
conducted by Gupta (2007) who pointed out that credibility due to celebrity endorsement is
linked with the advertisement, while corporate credibility affects the brand image and thus
purchase intentions.
Celebrity endorsement is studied extensively as an important topic in influential marketing. In
this context, the research conducted by Anjum et al. (2012) defined celebrities in context of
influential marketing as individuals who are appraised in public due to their involvement in arts,
sports, entertainment or such areas. The definition was derived from the work of Friedman and
Friedman (1979). The authors pointed out that marketers have a general belief that the
message delivered by celebrities in advertisement has a higher impact in terms of appeal,
attention and possibility of recall, as compared with other messages. The authors also pointed
out that there exists an established belief in marketers that celebrity endorsement results in
creating a reliable image of the product, add credibility to the producer and increase
memorability of the message. Exploring the link between sales and celebrity endorsed
advertisements, the authors found that businesses use celebrities for enhancing their image,
expand brand awareness, establish recall retention and improve their credibility in eyes of
customers. The study also concluded that celebrity endorsement results in higher sales and
thus, a higher market share is achieved, due to higher consumer confidence, favourable buying
pattern for the given product and higher demand. This is based on the consumer perception
that the product is reliable because celebrities are trustable and knowledgeable.
Francis and Yazdanifard (2013) identified that celebrity endorsements form the baseline of
marketing strategies in various industries especially personal care products, foods and retail
Page 5 of 12
sector. Focusing their study in US and Asian continent, the author found that celebrity
endorsement changes the consumer decision regarding consumption to a considerable extent.
This makes celebrity endorsement a profitable activity for retail sector to associate a celebrity
to their advertisement. The positive impact on brand awareness achieved through the celebrity
endorsement results in higher demand from the customers, an indication of change in
consumer behaviour due to changed consumer perception stemming at the celebrity influence,
image, and likeness.
While exploring the advent of celebrity involvement, Choi and Berger (2009) indicated that
form the start of 21st century, the trend of globalization and internationalization has resulted in
emergence of celebrities as global icons, representing power and status. With emergence of
political, cultural and social power, celebrities enjoy strong influence on consumer choices, but
there are differing trends across the globe. The Western celebrities are well known as
compared with the regional celebrities.
Exploring the difference between celebrity
endorsement between US and Asia, the authors found that while western celebrities were well
known, the local celebrities have a lower trust rating. However, the authors also concluded that
celebrity endorsement is becoming a high pace trend in the Asian countries.
In addition, various researchers such as Balakrishan and Kumar (2011), Doss (2011) and Sola
(2012) found that the level of satisfaction experienced by a consumer in consuming a product is
higher when a celebrity endorser is there. This results in the fact that consumers are willing to
pay higher price for that product due to attachment of a premier perception. This premier
perception is due to the positive, reliable and respected image added due to celebrity
endorsement. However, these authors also indicated that although, other factors like lifestyle
of consumer, preferences, disposable income and other socio-economic factors play a vital role
in such decision-making but it was found that in spite of the fact that the endorsers perceived
image and the brand attribute fails to match, the credibility for the brand is positively
perceived. However, the most important thing that is to be noted that celebrity endorsement
has two main dimensions recognized in literature by the above researchers i.e. entertainmentbased motivation and the intense attachment motivation. The entertainment-based motivation
originates from the liking or admiration that general public or a particular class of consumers
Page 6 of 12
have towards a given celebrity. However, the intense attachment motivation relates to the
perception of being attached to a given personality or the feelings of belongingness towards
the celebrity. Both of these motivations are different and is based on feelings of the consumer
towards the endorser.
In addition to this, Jain (2008) explored the negative impacts of celebrity endorsement and
found that it limits effective communication of a given product, thus pushing the product in the
background while highlighting the celebrity. This creates a challenge for marketers not to over
emphasize the product or the celebrity in advertisement. Till and Shimp (1198) found that
celebrity involvement results in a cost in terms of increased advertisement costs and hence,
decrease the profitability and if the celebrity shifts to a rival brand, this brings a purely negative
impact on the previous brand. In addition, Erdogan (1999) found that involvement of celebrities
in high profile scandals could also affect the brand equity and image.
Research Methodology
The research methodology chapter explains the model and approach adopted by the
researcher to collect, analyse, process and present the data to find answers to the research
questions raised in previous sections. The purpose of research methodology is to define
research techniques, research paradigm and data collection methods to achieve research aim.
An important thing to be noted here, that the appropriateness of research methodology has
direct impact on the success of research. The proposed research methodology for the current
research is given hereunder;
Research Design
Research design explains the central approach that a researcher adopts for collecting data in
order to find answer to research questions. The research design may include descriptive design,
experimental, non-experimental, meta-analysis, case study or other such methods. However,
since the broader research topic of the current research is more of a descriptive nature and is
given as “Do celebrities’ endorsement affects the customer purchase decisions?”, the
Page 7 of 12
important variables that are closely related include consumer purchase pattern, repurchase
decision, and use of celebrity in advertisements. However, the previously identified variables
are qualitative in nature, and thus, a pure quantitative approach is not applicable. In order to
collect information regarding the given variables, there are two main methods of data
collection i.e. primary method of research and secondary method of research. It is to be noted
that primary research includes all such methods where the researcher collects data directly
from the subjects. These methods include interviews and surveys. Another method of data
collection is the secondary research where the researcher collection data from the work
already done by other institutions, individuals or bodies. In context of the current research, the
research design comprises of both primary and secondary methods of data collection to
achieve effectiveness to address research aim. A comprehensive research design will enable the
researcher to take into account different methods of data collection in order to ensure
comparison and generation of new knowledge. An important thing to note here is that primary
research will enable the researcher to collect data from the sample population that is highly
relevant and could be used to explore the relations and models establish in theory (identified
through secondary research) to address research question. Through this composite
methodology, the researcher is able to develop insight to the data collected by exploring the
links between the variables to be similar or different from that established in literature.
Primary Research
As mentioned that the research will adopt both primary and secondary data collection. The
primary method of data collection in current context involves questionnaire based survey, in
accordance with the limitations faced by the researcher. As well, interviews could also be used
as a source of primary data collection. However, the limitations like noise, extended time
requirements and difficulty to expand the research sample to a certain minimum number,
questionnaire-based survey is adopted.
Page 8 of 12
The Questionnaire
The questionnaire that will be used in survey shall comprise of 5 or 6 short questions that are
under MCQs format and are close ended. The researcher has developed unique legend/criteria
given with the questionnaire to help the participant in responding to the question. The
questions included in the questionnaire are designed to explore insights to the various research
questions and partially enable the researcher to apply different tools such as statistical or
graphic analytical tools to study trends in the responses.
Research Population Sample
The survey questionnaire will be circulated among total of 150 participants comprising of men,
women (on equal basis) including Bahraini nationals and expatriate with 80% local to 20%
foreigners. This will allow the research to take into account gender diversity as well as cultural
variables, which can form the basis for future research in the same context. It is to be noted
that 150 participants will be selected on random basis, and age-based stratification will be done
to make the sample reflect the whole of the Bahraini population. The questionnaire is planned
to be distributed among the participants through various channels such as softcopies will be
emailed to the participants and where possible, a hard copy will also be delivered. In addition,
the questionnaire contains an ethical statement declaring the purpose of the survey, the roles
and responsibilities of the researcher as well as the participant to meet the ethical
requirements of such research.
Secondary Research
The secondary method of data collection includes internet based research in online libraries
such as Wiley, Science Direct and others to identify the researches done previously that are in
line or related to the current research topic. The research will be conducted using certain key
words and after collection of a number of research papers, each of them will be scanned to
shortlist those that are highly relevant to any of the research questions or research objectives.
Page 9 of 12
Key words and phrases

Influential marketing;

Celebrity endorsement;

Celebrity advertisement;

Consumer behaviour and influential marketing;

Celebrities and consumption pattern
Data Analysis
As described previously, the questionnaire will contain MCQs that are developed and marked
under a specific manner enabling the respondents to suit the right answer that could be
translated to quantitative values. Data analysis techniques include use of Excel based functions
for graphs and mathematical calculations.
Limitations of the research
Since the research relates to social perspective, the research is subject to the limitations to
which social researches are exposed to. The common limitations of the research include time,
finance and human resource. Moreover, an important consideration in context of the research
is use of referencing system to cite the information used in the research. The referencing
system adopted in the current research is APA referencing style.
Page 10 of 12
Schedule, Required Resources and Budget
The following time, resources and cost are scheduled for the current research.
ACTIVITY
RESOURCES
TIME SCHEDULE
Cost
Submission of Proposal
Time, Human resources.
By 22 December, 2014
No cost
Finalization of Proposal
Time, Human resources.
31 December, 2014
No cost
Drafting Research
Time, Human resources.
15 January, 2015
No cost
Time, Human resources.
31 January, 2015
No cost
Questionnaire
Sampling the population
of individual and
companies
No cost for soft copy,
assuming 75 hard
copy, assuming 0.25
Questionnaire time
Time, Human resources.
28 February, 2015
fils per paper
(0.25*75= 18.75 BHD)
Data extraction
Time, Human resources.
10 April, 2015
No cost
Data processing
Time, Human resources.
20 April, 2015
No cost
Assessment and
Time, Human resources.
30 April, 2015
No cost
Introduction – Draft
Time, Human resources.
15 May, 2015
No cost
Literature Review - draft
Time, Human resources.
31 May, 2015
No cost
Methodology
Time, Human resources.
10 June, 2015
No cost
Findings and Evaluation
Time, Human resources.
20 June, 2015
No cost
conclusion and
Time, Human resources.
30 June, 2015
No cost
Time, Human resources
07 July, 2015
No cost
evaluation
Recommendations
Submission
and Monetary
Page 11 of 12
Reference
Anjum, D. B., Dhanda, S. K., & Nagra, S. (2012). Impact of Celebrity endorsed advertisements on
consumers . Asia Pacific Journal of Marketing and Management Review, 1(2), 22-33.
Balakrishan, L., & Kumar, S. C. (2011). Effect of Celebrity Based Advertisement on the purchase attitude
of consumers towards durable products (a study with reference to the city of Chennai). World
Review of Business Research, 1, 98-112.
Choi, C. J., & Berger, R. (2009). Ethics of Celebrities and Their increasing influence in 21st Century
Society. Journal of Business Ethics, 91, 313-318.
Cooper, M. (1984). Can Celebrities really sell products? Marketing and Media Decisions, 19(1), 64-65.
Doss, S. (2011). The transference of brand attitude: the effect on the celebrity Endorser. Journal of
Management and Marketing Research, 23, 5-87.
Erdogan, B. Z. (1999). Celebrity Endorsement: A literature review. Journal of Marketing Management,
15, 291-314.
Friedman, H. H., & Friedman, L. (1979). Endorser Effectiveness by Product type. Journal of Advertisement
Research, 19(5), 67-71.
Jain, R. S. (2008). A study on the impact of Celebrity Endorsement on Indian Customers' Purchase
Decisions. London: University of Nottingham.
Lafferty, B. A., & Goldsmith, E. R. (1999). Corporate Credibility's Role in consumers' Attitudes and
Purcahse Intentions When a High versus a low credibility endorser is used in the Ad. Journal of
Business Research , 44(2), 109-116.
Sola, O. A. (2012). The impact of Celebrity Endorsement on Strategic Brand Management. International
Journal of Business and social Science, 3, 141-145.
Till, B. D., & A., S. T. (1998). Endorsers in Advertising: The case of negative celebrity information. Journal
of Advertising, 27, 67-82.
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