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BADM Report Final.

This is an analysis report based on the impact of celebrity endorsement on consumer purchase decision

Uploaded by

eliya
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
31 views

BADM Report Final.

This is an analysis report based on the impact of celebrity endorsement on consumer purchase decision

Uploaded by

eliya
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 35

IMAPCT OF CELEBRITY ENDORSEMENT

ON PURCHASE DECISION
COURSE: BUSINESS ANALYTICS FOR DECISION MAKING (MAN 606)

Submitted By:
Syed Ali Raza (21699)
Submitted to Sir Imran Khan EliyaSattar (21738)
Omer Bin Tanveer (21712)
INDEX

S.No. DESCRIPTION Page No.


1 Acknowledgment 02
2 Abstract 03
3 Chapter 01 – Introduction 04
4 Chapter 02- Literature Review 05
5 Chapter 03 – Research Design 07
6 Chapter 04 – Analysis & Interpretation 14
7 Chapter 05 – Conclusion & Recommendation 22
8 Annexure-A Survey Questionnaire 25
9 Annexure-B Google Survey Form 28
ACKNOWLEDGEMENT

Firstly, we would like to express our sincere gratitude to our course instructor Sir
Imran Khan for making us challenged to push the boundaries. His guidance
helped us all the time in writing of this report. We could not have imagined having
a better advisor who not only provided us guidance to connect the dots and
pointed us in the right direction in order to conduct a research on a business
problem.

He gave us the knowledge on how to analyze a business problem and how to


apply business analytics concepts to back the research based on the findings.
Throughout the session he was very helpful; engaging us, identifying the key
elements of the project and how the project should be executed in order to get
the maximum results from this research.

Besides this, the entire team was co-operated and highly dedicated, efforts put in
by the member will be highlighted in the report.
Abstract
Celebrity endorsement is an effective marketing technique to grab attention of
consumers. Despite the cost and the risks involved with this technique of
advertising, it is been used quite extensively in the present era. Currently, most of
the brands are using expensive celebrities for its advertising campaigns. It has
been appreciated a lot by the customers.

This research is designed to know whether the purchase decision of consumer is


because of celebrity endorsement or not. We want to know the extent to which
these advertising strategies are effective in influencing the buying decision of the
consumers.

This is a descriptive research conducted on the multiple factors on celebrity


endorsement and buying decisions

Questionnaire approach has been adopted to investigate the impact of celebrity


endorsement on purchase decision. The findings derived from analyzing the
collected data unearthed some facts which have been summarized in the
conclusion and also limitations related to it have been discussed.
CHAPTER 01: INTRODUCTION

Marketers spend huge sum of money yearly on celebrity endorsement contracts based on the
faith that celebrities are effective spokespeople for their products or brands. Companies
allocates money and count it in the cost of their product or brand as a part of their marketing
expense. They believe that famous celebrity the one admired by huge masses would act as a
face of the brand and due to this face value the chances are more likely that it will increase the
sale of that particular brand or product in future.

Celebrity Endorsement is observed as a billion dollar industry in 21st century. Famous


renowned brands like NIKE, GUCCI, D&G etc. owned by various companies across the globe are
signing deals with celebrities from different segments, in the hope that by using celebrities they
can accomplish a unique and relevant position in the minds of the consumers. In order to
position the brand in the mindset of the people, celebrity endorsement plays a vital role as they
are the trend setters in the field and people love to follow their act, their trends and their style.

Celebrity endorsement has always been used to clutch the attention of the customers towards
a particular product which ultimately affect how people recognize a product. For example if a
person sees Cristiano Ronaldo, the first brand that clicks their mind is ADDIDAS reason being
RONALDO a sports celebrity and people prefer ADDIDAS for sportswear. Similarly is a person
sees AISHWARYA RAI, the first brand comes into their mind is LOREAL PARIS as RAI is the
famous model and considered to be the symbol of elegance and beauty and LOREAL is the top
notched company engaged in making beauty products for women.

To explore more about the connection between the impact of celebrity endorsement and its
impact on customers buying behavior of a customer for a particular product. The research leads
the way that to identify the preference of customers towards a particular product on 4 factors.
These factors are categorized as under:

• Celebrity Popularity
• Celebrity Credibility
• Celebrity Expertise & Product Consistency
• Celebrity Likeability
Based on the above, these factors leads us to research more about the effects of celebrity
endorsement on the buying preferences of customers. The main aim of our research is to see
whether the purchase decision varies because of celebrity endorsement or not.

It is moreover it is clarified that the properties, highlights and the nature of the product
or services mirrors the buyers’ utility. The further attraction and brand inclination which
is incited by a celebrity who is loved affects the buying activities and brand preference.
The marked and trusted brands frequently experience consumer’s reliability and the
brands who aspire to gain more consumers or even hold the current consumers take
help of celebrity endorsement tool to impart to their clients who strengthen the
dedication of the clients to the particular brands and their products for the most part on
any cost. Using high end celebrities as an endorser to enhance the product or brand has
always been a core purpose of advertisement. To effectively utilizing the worldly
renowned celebrities for this reason, it is highly important that the big name must be
critically chosen on the grounds that both the positive and negative picture and view of
the endorsed celebrity can impact the portrayal of the brand out globally. Relation
between profile of the endorsed celebrity and their trustworthiness to target the
consumers of certain market plays a key role in the brand name establishment.
CHAPTER 02: LITERATURE REVIEW
The universal feature of today’s marketing is celebrity endorsement. In order to seek attention
to products or services, the strategy is to invest plenty amount of money on the famous
celebrities with the belief that it may transfer the personality’s image values to the product or
services by advertising. Celebrity is a modern communication phenomenon nowadays for the
advertisement of the product. Marketing uses celebrities to achieve their objectives. The profile
and qualities of the celebrities plays a major role in communication context. Their personality
traits seem to impact the message they deliver to the targeted audience. The audience’s
positive perception on the celebrity seems to gain more attention towards the product/service
or message they deliver and also makes it seem more promising.

According to the theory of source effect it is believed that the characteristics of the source of
communication used has an advantageous effect on the receiver’s perception; it makes the
message of source more influential and persuasive. The characteristics of source are classified
as source credibility model and source attractiveness model by the researchers.
The source credibility model demonstrates the trustworthiness and expertise. These two
components are important elements in message receptivity but not necessarily in the product
purchase intentions.

The other model is source attractiveness. The consumers tend to make more favorable
estimations regarding product when it is advertised by attractive model on the basis of it
physical attractiveness as a source of attribute. There two distinct elements of it evaluated by
the researchers i.e. likeability and similarity. Likeability is connected with the attractiveness as
appealing people are given more attention as compared to unlikeable ones e.g. likeable
spokesperson. Similarity elements indicate that the more similar presenter is preferred
regarding social status, opinion, activities, attitudes, background etc. As studies show that a
salesperson that is thought to be similar to them by consumer, the message delivered by that
salesperson is considered as more impacting.

A research was conducted to study the impact of celebrity endorsement on consumers. The
main objectives of the study were to analyze consumer’s attitude regarding the endorsed
products, to prove the impact of the assumed images of the celebrity endorser on purchasing of
the product, and to validate the similarity between impact of celebrity endorser’s image and
their own product endorsement.
The research showed that the consumers tend to hold a satisfactory and positive mindsets
regarding celebrity endorsement. They perceive it to be more attention grabbing, engaging,
appealing and impactful. But it was not convincing to be specific. The products and services
endorsed by the famous celebrities were not seen to be playing major impact on the intention
and interest of customers in purchasing. Although he personality, likability, trustworthiness,
allure and stardom of the endorsing celebrity was a main source of seeking attention to the
endorsement and brand as well. It also tends impart an important role in successful
advertisement. As the advertising is done by celebrity, it gains popularity and then mainly
credibility and expertise of the celebrity plays a more persuasive impart on purchasing intention
of the consumer.
It was proved that consumers assume congruity between their product endorsement and
celebrity endorser’s perceived images. Expertise in product categories was seemed to possess
by the celebrities which were reliable with their images and lifestyles they are perceived to
lead. A celebrity must be suitable for the product. Respondents indicate that they find the
product more reliable when the endorser is related to the product somehow. Celebrities must
be perceived to know about the type of the product they are endorsing. If the product seems to
be of no use or irrelevant to the celebrity, then the product is not perceived to be reliable. For
example, if the celebrity is a singer, then products related to music, fashion or garments are
more appropriate instead of house wares, camps, sports, utensils, etc. The respondents may
perceive that celebrity endorser has sufficient knowledge regarding product and would give the
best recommendation because he is expert in this. If irrelevant products are endorsed then the
celebrities lose their reliability and credibility. Advertisers are more conscious regarding the
image and lifestyle portrayed by the celebrities as this affects the credibility of the celebrity and
also has a huge effect on how consumers perceive them.
Intention to buy the endorsed product does not necessarily extend by a favorable perception of
celebrity endorser. In the eyes of the targeted audience, endorser must be credible and must
be regarded to have an expertise in the endorsing product. Other than credibility, image of the
celebrity must be congruent with the product’s they are endorsing. The conclusion of the study
urges to engage consumer research as assistance for choosing an appropriate celebrity to
lessen the risks involved in the celebrity endorsement campaign.
Every brand has its own unique identification, vibe, and aura that help to maintain their own
separate level from all other services and products available in the competition. The main
essence of brand is to create the connection with the segment they are targeting that can be
masses or niche. One parent company can have different products that help in associating
different markets and of course those can be based on different variables like cost, size,
availability, etc. taking example of Colgate they have multiple different products like Colgate
total, maxfresh, sensitive original, visible white, etc for each product they have different
celebrities for Colgate Sensitive Original they have their panels of doctors in advertisement to
help the consumer to connect with the doctors and build trust based on medical science for
their tooth ache relieve and if we take Colgate Visible White they try to associate the product
with beauty and confidence hence to give the face to product they chose Sonam Kapoor. This is
all done to create the association with the targeted consumers or the potential consumers.

As well explained by Austid and Silvera (2004) the brands are set of insight and description that
indicate an organizations’ service and products, the brand itself is a large domain that can be
understood in in-depth study and research. There is a misconception amongst the layman that
the brands are superficial name adopted by the organizations rest it doesn’t sever in any other
way. As per early research celebrities exerts psychological and physical impacts on the
consumers and all together on society as concluded by Ohanian (1991). The study was
conducted by Tsiotsou (2006) in which he conducted experiment to check the relationship
between purchase behavior and the product quality and that encompassed the brand loyalty as
well, the study showed that there was a strong and positive connection between these three
variables. Furthermore, Pappu and Cornwell in 2011 conducted a study to see the relationship
of celebrity endorsement in relation with credibility of product and the equity of the particular
brand, the studies and experiment revealed that there is a strong relationship between them.
The author confirms that brand credibility is a mediating element that along with endorsement
adds up in equity of the brand.
The masses living in our country are extremely cognizant about their status and their inclination
is towards utilizing branded products either in the field of cosmetics or hair care or
consumption of food items to show their image of status. In Pakistan, prices are believed to be
rising for a number of products which are already the necessity of life for the number of people
ranging from the electronic devices to the FMCG products. All the products considered, the
consumers are presently increasingly well aware of the product values and the running tough
competition amongst the brands.
The consumers prefer products from various different brand names. In Pakistan the pattern of
commercials has changed over the period of time from main motive to induce more sales by
convincing individuals and is making a positive effect on customers purchasing behavior and
decisions. Buyers buy those product/brands with which they end up sincerely connected. Both
male and female are affected by notices which have big names and they respond emphatically
to those promotions. Like image of surf excel and its main theme to “daag toh achy hotay hain”
encouraging mothers to let their kids live their childhood fullest, nonstop Bachpan

Ads have the ability to persuade the masses to use the products and experience its value added
aspects and when endorsed celebrities are presented in such sorts of commercials, they make
more noteworthy constructive impact on people in light of the fact, as mostly the individuals
are attracted by ads more than word to mouth. This psychological and social construct plays a
pivotal job during purchasing.
CHAPTER 03: RESEARCH DESIGN

OBJECTIVE OF THE STUDY


The specific purpose of this study is to find out the impact of celebrity endorsement on
consumer’s purchase decision when considering a particular product. This will help in analyzing
the perception of people about the celebrity endorsement in order to see whether or not these
endorsement influence their decision and to conclude that which factor out of the categorized
4 factors as stated above attract more to the consumer.

RESEARCH APPROACH
Once designing the hypothesis is done, research approach could be determined next. In this
study, to extract basic knowledge, already existing literatures and previous researches provide
insights and idea about the construction of the questionnaire. Especially questions related to
celebrity endorsement and source credibility would be designed based on the theories and
conceptual framework.

RESEARCH QUESTION
What are the key factors affecting the purchase decision of consumer when buying a particular
product?

SIGNIFICANCE OF THE STUDY


This study will determine what are the factors that consumer keeps in mind while buying a
particular product and also to determine whether or not celebrity endorsement has impact on
the brand success?
This research will also identify whether people recognize any brand or product when they see
any famous celebrity in any advertisement or at any event etc.

SCOPE OF THE STUDY


This study will be conducted by collecting data from people living in Karachi. Data collected
from people of different demographics including students, salaried individual, retired person
both men and women covering Universities, Markets, Private and Public Companies and
Shopping Malls etc.
Findings of this study can be used by other researchers as the primary research to find out
whether celebrity endorsement has impact on purchase decisions of the consumer.

LIMITATIONS OF THE STUDY


As with all research, the results of this study need to be considered in light of its limitations. The
analysis was done via web mediums thru survey tools. Moreover, this study was conducted at a
time when there was complete uncertainty in the global market due lockdown caused by
COVID-19. This research will be conducted within Pakistan only and mainly in Karachi
Another limitation that we will have is the age limit of the respondents, they most of the
respondents will be in age bracket of 25 to 35.
The response of only those will be counted as valid who are urbanized and can understand the
concept of celebrity endorsement

RESEARCH METHODOLOGY
The research is purely exploratory research with a view to identify impact of celebrity
endorsement on purchase decision. The philosophical design of research study is positive
paradigm with deductive approach used for data analysis, our research study adopted a mixed
approach using both qualitative & quantitative methods. A survey questionnaire was developed
and distributed to selected people and some of the respondents were interviewed as well.
The questionnaire was based on 17 questions and overall it was divided into 4 parts for better
factorization of the questions to cover all the aspect for the research.
As far as time horizon is concerned this was a cross sectional study due to time limitation.
Factors were selected based on literature. Our target population was people living in Karachi.
Data collected from people of different demographics including students, salaried individual,
retired person both men and women covering Universities, Markets, Private and Public
Companies and Shopping Malls etc. More than 150 questionnaires were distributed in addition
to questionnaires posted on selected websites. A total of 100 valid responses were received.

DATA ANALYSIS TECHNIQUE


To analyze the data, several techniques have been used to test the reliability, accuracy,
consistency, validity and generate the findings of the data collected to answer the research
question. Primarily these include Mean Correlation and Linear Regression. Also we have
analyzed our data by using Anova Test and Google Survey form to conclude our hypothesis to
produce reliable and authentic results.
DATA COLLECTION
The research is based on the primary data to ensure the collected data remains aligned with the
core targeted sample of the research. Furthermore, a specially designed questionnaire survey
was distributed through personal contacts via email, in person visits and website postings from
different people like salaried individual, entrepreneurs, businessmen, professionals and retired
individuals. Some of the respondents were interviewed on calls to get their views on the overall
impact of celebrity endorsement to analyze the buying behavior towards a particular product.
Out of 150 respondents, 100valid responses were ultimately processed to conduct further
research and perform tests on to get results.

S.No Research Function Research Function

1. Sources of Data & tools Survey questionnaire and selected personal interviews.
for data collection

2. Sampling Plan Population Definition- working professionals, businessmen, retired


individual and students
Sampling Design- random sampling
Sample Size- 100respondentsof different age group

CONCEPTUAL FRAMEWORK
Our conceptual model consisted offered independent variables and one dependent variable as shown
in the figure below. The independent variables were celebrity popularity, celebrity likeability, celebrity
expertise and product consistency and celebrity credibility and the dependent variable was purchase
decision and eventually buying behavior.
Figure 3.1 Conceptual Framework

This model was brought under sketch through vigorous discussion after the initial research conducted
on it. This was extracted thru the secondary data available on web, books and research articles
already available. It helped in identifying multiple independent variables like celebrity’s popularity,
likeability, credibility expertise and product consistency and finally the dependent variable, purchase
decision which leads to the buying behavior.

HYPOTHESIS

From the literature review and conceptual framework we were able to draw the following hypothesis to
further enhance out our research

H0: There is no impact of celebrity endorsement on purchase decision of the consumer.


Ha1: There is an impact of celebrity endorsement on purchase decision of the consumer.
Ha2: There is a relationship between celebrity endorsement and buying behavior.
CHAPTER 04: ANALYSIS & INTERPRETATION

DEMOGRAPHICS:
Looking at the nature of our research project we had to extract the results of population in general so
our demographic measure had no constrains this research was conducted on the both genders; male
and female to have their insight, the most of the participants were salaried individual and the least were
retired, the second leading ratio was students in this research.

We noted that the majority of our participants were in the age bracket of 26 to 35 years old individuals
hence we can say that the targeted sample was youth.

In the today’s generation the most leading medium for any transaction or flow of information has been
internet so was the case with this research, most of the people confirmed that they have been updated
on the new products and their celebrity endorsement via internet.

INCOME:
GENDER:
SALARIED INDIVIUALS 63%
MALE 66% BUSINESSMEN 11%
FEMALE 34% STUDENTS 24%
RETIRED INDIVIUALS 02%

AGE GROUP: MEDIUM:

16-25Yr 31% INTERNET 45%


26-35Yr 62% TELEVISION 46%
36-45Yr 07% RADIO 02%
More Than 45Yr 02% MAGAZINE 04%
NEWSPAPER 03%
DESCRIPTIVE ANALYSIS:
Popularity Credibility Expertise& Likeability Effectiveness
Product of Celebrity
Consistency Endorsement

Mean 3.585106 2.882979 3.691489 3.489362 3.531915


Standard Error 0.116584 0.119918 0.096882 0.108803 0.096498
Median 4 3 4 4 4
Mode 4 2 4 4 4
Standard Deviation 1.130321 1.162648 0.939304 1.054888 0.935582
Sample Variance 1.277625 1.351750 0.882292 1.112789 0.875315
Skewness -0.672478 0.274616 -0.454668 -0.532978 -0.939725
Minimum 1 1 1 1 1
Maximum 5 5 5 5 5
Sum 337 271 347 328 332
Count 100 100 100 100 100

Here in the given table, the number of total respondents “N” is 100 whereas the Median of
celebrity credibility is the lowest which is 3.0 whereas the median of celebrity popularity,
celebrity expertise and product consistency, celebrity likeability, effectiveness of celebrity
endorsement and purchase decision remains the same which is 4.0.
Moreover the most repeated value in celebrity credibility is 3.0, followed by celebrity
popularity, celebrity expertise and product consistency is 4.0which means that most of the
respondent agree with the fact that they do follow celebrities and they do consider celebrity
endorsement as one of the factor when buying a particular product.
CORELATION ANALYSIS

Pearson correlation –basically tells the correlation between the two variables. The closer the
value to 1, the stronger will be the relation.If we look at the row for celebrity popularity, we can
see that the first column contains the correlation of the variable with itself, which is of course 1
which is a perfect positive correlation.
The relationship between Celebrity Popularity and Celebrity Credibility is 0.432. This means that
there is slightly a strong relationship between the two variables and changes in one variable are
strongly correlated with changes in the second variable. If the celebrity popularity increases (if
we will take a popular celebrity), then ultimately our celebrity credibility increases.

On the other hand Celebrity popularity and celebrity likeability has a very strong relationship,If
the celebrity is popular it will have direct impact on the likeability and ultimately increase in the
change in the celebrity popularity will have direct impact on the increase in the likeability.
The relationship of Celebrity popularity to Effectiveness of celebrity Endorsement is concerned
is 0.114, it shows low relationship between the two variables. If the celebrity is popular it will
not help us in making the celebrity endorsement effective.

The celebrity popularity also has a strong relationship with the purchase decision which is of
0.750. This proved that the celebrity popularity has direct impact on the purchase decision.
Moreover if we see the correlation between Celebrity Credibility and Celebrity Expertise and
product consistency is very weak that is 0.288 which is very low, hence celebrity credibility does
not have much impact on the celebrity expertise and product consistency. If we see the
correlation between celebrity credibility with Celebrity likeability, effectiveness of celebrity
endorsement and purchase decision we see that the all have somewhat strong relationship but
the strongest relation is with the effectiveness, which is very much close to 1, hence according
to the research celebrity credibility has direct impact on the purchase decision, if the celebrity
has the quality of being trusted and believed in then this will have impact on the purchase
decision of the customers.
Correlation between Celebrity Expertise and Effectiveness of celebrity Endorsement (0.111) and
purchase decision (0.008), are all very low. According to research the celebrity expertise in the
constant selling of the product does not have any impact on it.
As far as Celebrity likeability is concerned it has a strong relation with the purchase decision
which is 0.674, which is near to 1. If the celebrity that is promoting the product is liked by the
customers ultimately the purchasing power will increase,

When we see the correlation of Effectiveness of celebrity endorsement to the Purchase


decision we see it is slightly stronger that is 0.524, according to the research the effective
selling of the product may lead to the increase in the purchase decision

CORELATION ANALYSIS ON EXCEL

NOTE: For the purpose of clarity we have also conducted this test on excel in order to see the
results and compare it with SPSS analysis. The result do vary, in this regard we have taken SPSS
analysis to conclude our findings

Popularity Credibility Likeability Effectiveness Purchase Decision


Popularity 1
Credibility 0.486912924 1
Likeability 0.608639435 0.457745745 1
Effectiveness 0.467598075 0.642050105 4.569930812 1
Purchase Decision 0.204233852 0.194447071 0.512905454 0.63798687 1
MULTIPLE REGRESSION ANALYSIS
Here we have used regression testing to obtain the strength and nature shared between
depended variables which were celebrity popularity, celebrity likeability, celebrity expertise and
product consistency and celebrity credibility namely. It was to solely identify the level up to
which these factors could relate with each other.

The regression equation is:

Y = b0 + b1X1 + b2X2 + b3X3 +……… + bkXk

The table above shows the list of the variables entered into the equation. The data has five
predictors that are: Effectiveness of Celebrity Endorsement, Celebrity Expertise and Product
Consistency, Celebrity Likeability, Celebrity Popularity and Celebrity Credibility. The response
variable is purchase decision of a particular product.
The above results of regression analysis explains the measures of how well the five factors in
overall model fits to estimate the purchase decision based on celebrity endorsement. The first
measure in the table is R which is 0.812. It indicates a high degree of correlation but for more
accurate measure, it is better to interpret R square. The value of R square is 0.649 so the data
suggests that 64.9% of the variance in purchase decision of a particular product can be
explained by these five factors present in the model. The adjusted R square is 0.649. It indicates
that there is more than half of the variation explained by these factors. The smaller the
standard error of the estimate is, more accurate the predictions are. According to the data, the
standard error of the estimate is 0.576. The value is larger which explains that the predictions
are less accurate.

REGRESSION ANALYSIS ON EXCEL

NOTE: For the purpose of clarity we have also conducted this test on excel in order to see the
results and compare it with SPSS analysis. The result do vary in this regard we have taken SPSS
analysis to conclude our findings
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.812730606
R Square 0.750073736
Adjusted R Square 0.734867794
Standard Error 0.282719421
Observations 100

ANOVA
df SS MS F Significance F
Regression 8 537.7389525 5.782139275 5.432312786 1.26696603
Residual 92 142.9018003 11.90848336
Total 100 680.640701
ANOVA TEST ANALYSIS:

ANOVA
Source of Variation SS df MS F P-value F crit
Between the Group 537.7389525 5 5.782139275 5.432312786 2.61967E-45 1.26696603
Within the Group 142.9018003 8 11.90848336 11.18800557

Total 680.640701 13

This above table shows the output of the ANOVA analysis and whether there is a statistically
significant difference between our group means. We can see that the F critical value is 1.2669
with degree of freedom 5 between the group & 8 within the group.
This F critical value is less than the F value which is 5.4323 in our research. Between the groups
here means that the chances are more likely that consumer prefer the 4 factors while
considering any particular product. Our test run on DATA ANALYTICS through Excel shows that F
value is greater than F Critical value in the ANNOVA TEST analysis.
Therefor we shall reject our null hypothesis in this research and select the alternative
hypothesis.
CHAPTER 05: CONCLUSION & RECOMMENDATION

To cut a long story short in a nut shell, it can be said that the celebrity endorsement has a
strong impact on the purchase decision of the consumer. This conclusion is backed by our
ANNOVA test that shows that there is an impact of celebrity endorsement on purchase decision
of the consumer. So, we reject our null hypothesis and accept the alternative hypothesis in
this research.

Also there are two evidences that is, Correlation analysis in the earlier chapter showed that
most of the variable like credibility, popularity and likeability etc. have a strong positive relation
with each other and depicts a strong connection towards purchase decision of the consumers.
This particular analysis not only made the researchers’ choice and construction of data
collection tool reliable but also helped in reaching to the research objective.
In today’s advertisement agencies; social media or the other digital media, the brains behind
the advertisements are forcefully utilizing the celebrity endorsement. Still it is a big challenge to
align the brand credibility and the celebrity profile before making a promoting campaign as it
can make a significantly high effect on the brand trustworthiness and loyalty. The product
quality additionally ought to be cautiously made in the perspective of buyers and consumers
since a positive impact of quality can help in further building of brand image and equity
simultaneously
However, the study does not cover the full scope as although the study proved that celebrity
endorsement does impact purchase decision of consumers positively, but some of the
important factors that weren’t taken into consideration also impacts the purchase decision of
the consumers including:
❖ Preference for foreign over local brands.
❖ Price/Affordability,
❖ After Sale Service/Warranty.
Excluding these elements has made this study a bit more inclined to the exploratory side rather
than directing it to applied research side. Nevertheless, the findings establish a baseline and a
new dimension to be considered upon for celebrity endorsements and its impact and provide a
room for further and more thorough research.
Because of limited capacity to focus time, assets and lockdown, the information gathered was
of limited. Just a few respondents were selected and information dissected and test size may
not be an adequately enough to speak to the vision of the whole segment gathering or the
objective market size group of individuals. Leading an exploration in Pakistan where the
education rate is low and the higher study principles are not sufficient, is troublesome and
tedious since individuals are either not intrigued by this conducted research or they don't
comprehend the handiness this work. The language obstruction was an issue. To wrap things
up, a huge number of individuals show nonattendance or no enthusiasm because of absence of
concern and mindfulness for satisfying the survey.
A - RESEARCH QUESTIONNAIRE
IMPACT OF CELEBRITY ENDORSEMENT ON PURCHASE DECISION
This survey is being conducted by the students of IOBM in order to determine the impact of
celebrity endorsement on the purchase decision of customers. The information provided will be
solely used for research purpose and will not be disclosed to any unconcerned party. Please
provide your responses as authentically as you can.
1. Age
• 16 - 25 Years
• 26 - 35 Years
• 36 - 45 Years
• Above 46 years

2. Gender
• Male
• Female

3. Profession
• Student
• Unemployed
• Salaried Person
• Businessman
• Retired Individual

4. Does the presence of celebrities helps you recognize the brand?


• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

5. Do you consider the familiarity of the celebrity serves as a factor for purchase decision of a
particular product?
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
6. Would you prefer to buy products which have been endorsed by famous celebrities?
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

Celebrity Credibility
7. Do you consider celebrity trustworthiness as a factor when making a purchase decision of
buying a particular product?
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

8. I associate the celebrity directly with the quality and performance of the product.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

9. Brand image is directly related to celebrity’s image


• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

Celebrity Expertise and Product Consistency


10. Do you think that there should be a connection between the celebrity and the product being
advertised?
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

11. If an unrelated celebrity is endorsing a particular product, would you buy it?
• Yes
• No
• Maybe
Celebrity Likeability
12. Do you feel celebrity's attractiveness has a direct impact on the product/brand he/she
endorses?
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

13. As a consumer, do you consider the likeability of the celebrity as a factor when making a
purchase decision of buying a particular product?
• Yes
• No
• Maybe

14. Would you buy particular product if your favorite celebrity is endorsing it?
• Yes
• No
• Maybe

Effectiveness of Celebrity Endorsement


15. How frequently do you come across advertisements that feature celebrities?
• Never
• Occasionally
• Sometimes
• Often
• Always

16. Which medium do you consider most effective when celebrity endorsement is used?
• Newspaper
• Magazine
• Radio
• Television
• Internet

17. Celebrities make difference to the image of the brand.


• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
Age

16 - 25 Years
26 - 35 Years
60.3% 36 - 45 Years
Above 46 years

32.1%

Gender

Male
Female
29.9%

70.1%

Profession

Student
Unemployed
Salaried Person
9% Businessman
66.7%
Retired Individual

21.8%
Celebrity Popularity

Does the presence of celebrities helps you recognize the brand?

Strongly Disagree
Disagree
46.8% Neutral
14.3% Agree
Strongly Agree

11.7%

22.1%

Do you consider the familiarity of the celebrity serves as a factor for


purchase decision of a particular product?

Strongly Disagree
43.4% Disagree
Neutral
Agree
Strongly Agree

26.3%
19.7%
Would you prefer to buy products which have been endorsed by famous
celebrities?

Strongly Disagree
19.7% Disagree
Neutral
Agree
7.9%
Strongly Agree
48.7% 7.9% Nuetral

14.5%

Celebrity Credibility

Do you consider celebrity trustworthiness as a factor when making a


purchase decision of buying a particular product?

Strongly Disagree
25.3% Disagree
Neutral
10.7% Agree

24% Strongly Agree


Nuetral

32%
I associate the celebrity directly with the quality and performance of the
product.

Strongly Disagree

18.7% Disagree
17.3% Neutral
Agree
9.3%
Strongly Agree

13.3%

41.3%

Brand image is directly related to celebrity’s image

Strongly Disagree
34.7% Disagree
Neutral
Agree
10.7%
Strongly Agree

20% 10.7%

24%
Celebrity Expertise and Product Consistency

Do you think that there should be a connection between the celebrity and
the product being advertised?

Strongly Disagree
Disagree

16% Neutral
48% Agree
Strongly Agree
Nuetral
9.3%

21.3%

If an unrelated celebrity is endorsing a particular product, would you buy


it?

Yes
52% No
Maybe

10.7%

37.3%
Celebrity Likeability

Do you feel celebrity's attractiveness has a direct impact on the


product/brand he/she endorses?

Strongly Disagree
Disagree
44% Neutral
14.7% Agree
Strongly Agree

12%

25.3%

As a consumer, do you consider the likeability of the celebrity as a factor


when making a purchase decision of buying a particular product?

Yes
38.7% No
Maybe

34.7%
26.7%
Would you buy particular product if your favorite celebrity is endorsing it?

Yes
40% No
Maybe

21.3%

38.7%

Effectiveness of Celebrity Endorsement

How frequently do you come across advertisements that feature


celebrities?

Never
36% Occasionally
Sometimes
13.3% Often
Always

25.3% 22.7%
Which medium do you consider most effective when celebrity
endorsement is used?

Newspaper
44% Magazine
Radio
Television
Internet

50.7%

Celebrities make difference to the image of the brand.

Strongly Disagree
Disagree
Neutral
58.7%
Agree
10.7%
Strongly Agree

9.3%

17.3%

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