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1 Celebrity Endorsements Celebrity Endorsements Alexa DeFranco Keighle Joyce Dr. Bracken COM 355 CSU Summer 2015 2 Celebrity Endorsements I. Introduction In today’s society people have become more focused on the name associated with a product than the product itself. David Ogilvy founder of the international marketing agency Ogilvy & Mather has said, “Celebrity advertisements triggered above average product recall but resulted in below average sales.” Though the sales don’t jump from celebrity endorsements, products generate greater visibility amongst consumers. While celebrity endorsements in advertising fail to alter consumer’s behavior they succeed in positively impacting the consumer’s attitudes, thus affecting the consumers psychological processing of an ad. II. The Relationship Between Celebrity Endorsement and Psychological Processing According to Merriam Webster, celebrity endorsement defined as “to use a famous person’s image to sell products or services by focusing on the person’s money, popularity, or fame to promote the products or services.” This idea of endorsement has been around since the late 19th century. The first recorded celebrity endorsement was British actress Lillie Langtry endorsing Pears Soap (Han & Yazdanifard 2015.) In today’s society celebrity endorsements are everywhere. In the United States almost 20% of television ads include a celebrity endorser (Crutchfield 2010.) Corporations invest significant amounts of money to align their products with big-name celebrities in an attempt to draw attention to the endorsed product. Studies have shown that consumers have an overall positive attitude towards celebrity endorsements and perceive them as attention gaining, likable, and impactful ( O’Mahony, Meenaghan 1998.) Recent market studies show that eight out of ten television ads scoring the highest recall are those with a celebrity endorser (Mukherjee, 2009.) When consumers see ads with celebrity 3 Celebrity Endorsements endorsers they inherently assume that the endorser is a user of the product (Biswas, Hussain, & O’Donnell, 2009.) This kind of association leads consumer’s attitudes to change favorably if they are a fan of the celebrity endorsing. Example of this is when Pro-Active Skin care had Justin Bieber endorse their product. When consumers saw Bieber in ads for the product they instantly associated the skin-care line as “cool” (Barnes, 2011.) However, celebrity endorsements do not always work out. Celebrities can be unpredictable and their negative actions can have severe consequences on the brands they endorse. An example of this is in the case of Kobe Bryant. Bryant was going through issues in his private life at the time he was endorsing McDonalds. When he was convicted of sexually assaulting a woman, people found him being in McDonalds ads disturbing. Consumers thought less of the brand because they had Bryant endorsing them (White, Goddard, & Wilburd 2009.) Conclusion: The way consumers perceive celebrities directly influences how one processes an ad. While celebrity endorsements in advertising fail to alter consumer’s buying behavior they succeed in positively impacting the consumer’s attitudes, thus affecting the consumers psychological processing of an ad. When corporations are able to align themselves with a celebrity who seemingly fits for the brand from the viewpoint of consumers, is when this endorsement works out best for the corporation. The consumer’s psychological processing of an ad with a celebrity endorsement that is done correctly has the ability to make consumers attitude positive. 4 Celebrity Endorsements Works Cited Biswas, S., Hussain, M., & O'Donnell, K. (2009). Celebrity endorsements in advertisements and consumer perceptions: A cross-cultural study. Journal of Global Marketing, 22(2), 121-137 Retrieved From, http://www.ajms.co.in/sites/ajms/index.php/ajms/article/view/237 Crutchfield, D. (2010). Celebrity endorsements still push product. Advertising Age, 22. Retrieved From, http://adage.com/article/cmo-strategy/marketing-celebrity endorsements-push-product/146023/ Han, O., & Yazfanifard, R., (2015). The Review of the Effectiveness of Celebrity Advertising that Influence Consumer’s Perception and Buying Behavior. Global Journal of Management and Business Research” E-Marketing Retrieved from https://globaljournals.org/GJMBR_Volume15/4-The-Review-of-the-Effectiveness.pdf Mukherjee, D. (2009). Impact of Celebrity Endorsements on Brand Image. Social Science Research Network Electronic Paper Collection Retrieved from http://usdrinc.com/downloads/Celebrity-Endorsements.pdf O’Mahoney, S., & Meenaghan, T., (1998) The Impact of Celebrity Endorsements on Consumers. Irish Marketing Review. Retrieved from, http://iiiprxy.library.miami.edu:10038/docview/204576526?pqorigsite=summon&acc untid=14585 Skärfstad, R., & Bergström, C. (2004). Celebrity endorsement: case study of J. Lindeberg. International Business and Economics Program, 193, 8-19 Retrieved From, http://epubl.ltu.se/1404-5508/2004/193/LTU-SHU-EX-04193-SE.pdf 5 Celebrity Endorsements White, D. W., Goddard, L., & Wilbur, N. (2009). The Effects of Negative Information Transference in the Celebrity Endorsement Relationship. International Journal of Retail & Distribution Management, http://jmi.readersinsight.net/index.php/jmi/article/view/18