Description
Describes about celebrity endorsements and its types. It also explains spread of celebrity endorsements, reasons why company uses celebrities for endorsement, theories of celebrity endorsement, how celebrity endorsements influence the consumer.
Who is a celebrity?
~Enjoy
public recognition
~Experts of their respective fields
~Wider influence in public life & societal domain.
?
?
McCracken's (1989, celebrity endorsement) definition of a celebrity endorser is, "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a more favorable evaluation of the product and advertisement, and a significantly more positive purchase intention.
BRAND AMBASSADOR
?
? ?
Celebrities might endorse as a brand ambassador or a brand face. Difference Between Brand Ambassador & Brand Face A Brand Ambassador would be one who is not only a spokesperson for the brand or is just appearing as a testimonial for the brand's benefits. He/she is an integral part of the brand persona and helps to build an emotion ale, which goes beyond just appearing on TV commercials He takes up the cause of a Brand Champion and is associated with every aspect related with the brand.
BRAND FACE
?
Brand Face would be the current celebrity who is just used as a tool to increase brand recall and is only appearing in the advertisement. It is usually seen that a brand face is a temporary contract and is very short term at times
CELEBRITY ENDORSER COMPANY / PRODUCT
?
Amitabh Bachchan * Dabur * Cadbury * Reid and Taylor * Parker Shahrukh Khan * Santro * Videocon * Sunfeast * Pepsi Juhi Chawala * Kurkure Ustad Zakir Hussain * Taj mahal tea Aamir Khan * Titan * Coke * Toyota Innova Kajol and Ajay Devgan * Whirlpool * Tata Indicom
TYPES OF CELEBRITY ENDORSEMENT
? ?
? ?
?
Testimonial: The celebrity acts as a spokesperson for the brand. Imported: The celebrity performs a role known to the audience. Invented: The celebrity plays a new, original role. Observer: The celebrity assumes the role of an observer commenting on the brand. Harnessed: The celebrity's image is integrated with the ad's storyline.
SPREAD OF CELEBRITY ENDORSEMENT
?
Celebrity endorsements are more likely chosen for products that have either of the following: High price-cost margins Large potential customer pools The need to coordinate across diverse sets of customer(marcoms, CELEBRITY ENDORSEMENT paper)
phones, video games, to sports drinks).
(Companies are using celebrities to promote a range of goods from mobile
CRITERIA FOR SELECTION
REASONS COMPANIES USE CELEBRITY ENDORSERS
? ?
? ?
Cognitive product recall (Bonnett, 2002: Rescoe, 1980; Friedman & Friedman, 1979), Product credibility (Rescoe, 1980; Kamins et al., 1989; Bonnett, 2002), Product image and loyalty (Veltri, 1998), Improve corporate profits (Agrawal & Kamakura, 1995).
Celebrity Endorsement in India
Phase 1: The Pioneering Phase (1950-1980) this phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations some bigger companies from their global experience introduced the concept of celebrity endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties.
?
2: The Phase Growth Phase (1980-1990) The introduction of television added a variable effective medium of communication. • Indian stars going global with events like Asiads and World Cup victory. •Vimal, Thums-Up,Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. •There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).
?
?
Phase 3: Globalisation
In highly competitive markets, the following realities about brand management exist: 1. Product differentiating factors are duplicable and imitable. 2. All long existing and successful brands imbue their products with a meaning.
THEORIES OF CELEBRITY ENDORSEMENT
Source Credibility Theory ? According to Source Credibility Theory5, acceptanceof the message depends on 'Expertness'andTrustworthiness' of the source. ? Expertness is defined as the perceived ability of the source to make valid assertions. ? Trustworthiness is defined as the perceived willingness of the source to make valid assertions. ? Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product.
Source Attractiveness Theory
?
?
?
According to Source Attractiveness Theory, which is based on social psychological research,the acceptance of the message depends on familiarity, likeability and similarity. Familiarity is the audience's knowledge of the source through exposure; likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. This theory explains the message acceptance in two ways: Identification and Conditioning.
Meaning Transfer Theory
?
?
?
Grant McCracken6 has criticized the previous two theories and proposed the Meaning Transfer Theory. The theory explains that a celebrity encodes a unique set of meanings which if well used can be transferred to the endorsed product. Such a transfer takes place in three stages - encoding meanings, meaning transfer, meaning capture.
HOW CELEBRITY ENDORSEMENT INFLUENCE THE CONSUMER
?
?
?
?
Compliance, Identification and Internalization Compliance infers that another individual or group of individuals influences an individual cause he or she hopes to achieve a favourable reaction from this other group. Identification applies to the situation wherein the individuals emulate the attitudes or behaviour of another person or group, simply because they aspire to be like that person or group. Internalization as a process of social influence is said to occur when individuals adopt the attitude or behaviour of another person because that behaviour is viewed as honest and sincere and is congruent with their value system.
Powerfullness
?
'Top of the Mind Position'. * Instant Awareness, knowledge about the brand and easy recall. * Values and image of the brand is defined, highlighted and refreshed by the celebrity. * The celebrity adds new edge and dimension to the brand. * Credibility, trust, association, aspiration and connectivity to brand. * Belief in efficiency and new appearance that will result in at least trial usage. (nasrinmalang January 5th, 2010, 10:45 PM)
EFFECTS
?
Celebrity endorsement is likely to positively affect consumers brand preference, brand attitude, brand association and purchase intentions. To ensure positive results, however, it is critical for advertisers to have a clear understanding of consumer's reactions and reinforcement of celebrity endorsement. The impact of celebrity endorsement on any brand as well as on consumer's purchase decision is very critical.
Here’s what the research reveals. Although almost 8 out of every 10 say that the most prominent ad that they remember are the ones with celebrities in it, it doesn’t influence their purchase pattern. It does not affect consumer-buying decision at any point of time. Since a celebrity is endorsing many brands/ product, more than assistance, it creates confusion for the consumer on the recall. ? what matters the most is the quality of the product that can be provided to the consumers. ? Across India, 78% of people feel that the most important factor whileu89 buying any product is ‘quality of the product’, followed by ‘price’, whereas only 3% consider a celebrity as an important factor before buying a particular product. (FINANCIAL EXPRESS ,wed 6th oct )
?
INFLUENCE OF CELEBRITIES
Customer feelings ? Attitudes ? Audience perception about the product. ? Capture the viewer's attention (Dyson & Turco, 1998; Miciak & Shanklin, 1994; Swerdlow, 1984) ? Increase product awareness (Wilson, 1997) ? Influence the purchase decisions of the target market (Ohanian, 1991) (eg. In Nike's ad campaign that ran during the 2002 World Cup series,
?
all of the people in the ad were soccer stars, dressed in Nike soccer apparel, playing in an "underground tournament". This immediately attracted the attention of the target market: soccer players.)
RISKS
?
?
?
? ? ?
Celebrity overshadows the brand Necessary Evil Celebrity creditability a question mark for the competent customer Conflicting Image Multiple Endorsement Influence of Celebrity scandals and moral violation on brands
RETURNS/BENEFITS
?
?
? ? ? ?
Differentiation of brand Celebrities break clutter Build Awareness Connects Emotionally Quick Connect Source of Imitation and hence inducing increased product usage
GUIDELINES FOR SUCCESSFUL CELEBRITY ENDORSEMENT
?
?
?
?
?
Controversial or outdated celebrity should be avoided Advertiser should not sign up a celebrity who does’nt connect Advertiser should not sign up a celebrity because every one is behind him Should not appoint a celebrity who has endorsed a variety of product There should be proper match between celebrities personality & product.
Impact of celebrity endorsement on buying decisions
?
?
?
Known products and names are sold more than unknown ones. More or less every consumer has a brand preference and given the affordability and societal norms, each buyer would like to buy and consume one of the highly acceptable, recognizable, and reputed brands. Celebrities are after all mere mortals made of flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also exacerbate the image of a brand.
Celebrity Endorsement For Social Causes
?
?
AMITABH IN POLIO – “Do boond zindagi ki”. AMITABH in HIV- AIDS. Aamir in incredible India- “Atithi Devo Bhava” Preity Zinta in bravery award.
? ?
VAMPIRISM
?
Vampirism is becoming another pitfall from which a company can suffer when using a celebrity endorser. Vampiring occurs when the celebrity becomes bigger than the brand that is being endorsed. This problem can be attributed to a limited number of celebrities with whom the consumers are familiar. However, by keeping the endorsements short-term and changing the celebrities who endorse the product, a company can help prevent the risk of vampiring (Jamnalal Bajaj Institute of Management Studies, 2001).
CONCLUSION
?
?
? ?
?
Celebrity endorsements do work in the Indian scenario. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favourable impact. Celebrity endorsements do work in the Indian scenario. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favourable impact. Multiple endorsements do clutter the minds of the consumer. When one endorser endorses many brands, then the recall of the endorsement depends entirely on the power of the brand. It is not just the financial gains from the endorsements that matter to the celebrity. They also look for the fit with the brand and what the endorsement might do to their image.
Contd…
? ?
?
?
Professional performance of the endorser is important in deciding the success of the endorsement. More than the bad performance in the professional field, it is the association of the celebrity with a controversy or illbehaviour that causes negative impact to the endorsements. The celebrities’ accessibility, regional appeal factors, popularity, attractiveness, belief system are some other important platforms, which are raised when we study the impact of celebrity endorsement on brands. Studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. Few celebrities have been more successful than those with almost parallel fame. So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as a assured strategic tool to win profits, market share,revenues, etc.
KEY FINDINGS:
'Bollywood actress' had the maximum advertising share of 'celebrity' endorsements on TV during H1 '2010. ? 'M S Dhoni' topped the list of celebrities endorsing for maximum number of advertisers on TV during H1' 2010. ? 'Aerated soft drink' was the top category in celebrity endorsements on TV during H1 '2010. ? 'Lux toilet soap' was the most advertised brand under celebrity endorsements on TV during H1 '2010. ? During H1'2010, 'film actress' leads with 45 per cent share of 'celebrity' endorsements on TV followed by 'film actor' and 'sports person' with 42 per cent and 10 per cent share respectively. (Overview of Celebrity endorsements on TV during H1 2010 (27 July, 2010) Indiantelevision.com's AdEx India Analysis)
?
doc_909197032.pptx
Describes about celebrity endorsements and its types. It also explains spread of celebrity endorsements, reasons why company uses celebrities for endorsement, theories of celebrity endorsement, how celebrity endorsements influence the consumer.
Who is a celebrity?
~Enjoy
public recognition
~Experts of their respective fields
~Wider influence in public life & societal domain.
?
?
McCracken's (1989, celebrity endorsement) definition of a celebrity endorser is, "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a more favorable evaluation of the product and advertisement, and a significantly more positive purchase intention.
BRAND AMBASSADOR
?
? ?
Celebrities might endorse as a brand ambassador or a brand face. Difference Between Brand Ambassador & Brand Face A Brand Ambassador would be one who is not only a spokesperson for the brand or is just appearing as a testimonial for the brand's benefits. He/she is an integral part of the brand persona and helps to build an emotion ale, which goes beyond just appearing on TV commercials He takes up the cause of a Brand Champion and is associated with every aspect related with the brand.
BRAND FACE
?
Brand Face would be the current celebrity who is just used as a tool to increase brand recall and is only appearing in the advertisement. It is usually seen that a brand face is a temporary contract and is very short term at times
CELEBRITY ENDORSER COMPANY / PRODUCT
?
Amitabh Bachchan * Dabur * Cadbury * Reid and Taylor * Parker Shahrukh Khan * Santro * Videocon * Sunfeast * Pepsi Juhi Chawala * Kurkure Ustad Zakir Hussain * Taj mahal tea Aamir Khan * Titan * Coke * Toyota Innova Kajol and Ajay Devgan * Whirlpool * Tata Indicom
TYPES OF CELEBRITY ENDORSEMENT
? ?
? ?
?
Testimonial: The celebrity acts as a spokesperson for the brand. Imported: The celebrity performs a role known to the audience. Invented: The celebrity plays a new, original role. Observer: The celebrity assumes the role of an observer commenting on the brand. Harnessed: The celebrity's image is integrated with the ad's storyline.
SPREAD OF CELEBRITY ENDORSEMENT
?
Celebrity endorsements are more likely chosen for products that have either of the following: High price-cost margins Large potential customer pools The need to coordinate across diverse sets of customer(marcoms, CELEBRITY ENDORSEMENT paper)
phones, video games, to sports drinks).
(Companies are using celebrities to promote a range of goods from mobile
CRITERIA FOR SELECTION
REASONS COMPANIES USE CELEBRITY ENDORSERS
? ?
? ?
Cognitive product recall (Bonnett, 2002: Rescoe, 1980; Friedman & Friedman, 1979), Product credibility (Rescoe, 1980; Kamins et al., 1989; Bonnett, 2002), Product image and loyalty (Veltri, 1998), Improve corporate profits (Agrawal & Kamakura, 1995).
Celebrity Endorsement in India
Phase 1: The Pioneering Phase (1950-1980) this phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations some bigger companies from their global experience introduced the concept of celebrity endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties.
?
2: The Phase Growth Phase (1980-1990) The introduction of television added a variable effective medium of communication. • Indian stars going global with events like Asiads and World Cup victory. •Vimal, Thums-Up,Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. •There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).
?
?
Phase 3: Globalisation
In highly competitive markets, the following realities about brand management exist: 1. Product differentiating factors are duplicable and imitable. 2. All long existing and successful brands imbue their products with a meaning.
THEORIES OF CELEBRITY ENDORSEMENT
Source Credibility Theory ? According to Source Credibility Theory5, acceptanceof the message depends on 'Expertness'andTrustworthiness' of the source. ? Expertness is defined as the perceived ability of the source to make valid assertions. ? Trustworthiness is defined as the perceived willingness of the source to make valid assertions. ? Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product.
Source Attractiveness Theory
?
?
?
According to Source Attractiveness Theory, which is based on social psychological research,the acceptance of the message depends on familiarity, likeability and similarity. Familiarity is the audience's knowledge of the source through exposure; likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. This theory explains the message acceptance in two ways: Identification and Conditioning.
Meaning Transfer Theory
?
?
?
Grant McCracken6 has criticized the previous two theories and proposed the Meaning Transfer Theory. The theory explains that a celebrity encodes a unique set of meanings which if well used can be transferred to the endorsed product. Such a transfer takes place in three stages - encoding meanings, meaning transfer, meaning capture.
HOW CELEBRITY ENDORSEMENT INFLUENCE THE CONSUMER
?
?
?
?
Compliance, Identification and Internalization Compliance infers that another individual or group of individuals influences an individual cause he or she hopes to achieve a favourable reaction from this other group. Identification applies to the situation wherein the individuals emulate the attitudes or behaviour of another person or group, simply because they aspire to be like that person or group. Internalization as a process of social influence is said to occur when individuals adopt the attitude or behaviour of another person because that behaviour is viewed as honest and sincere and is congruent with their value system.
Powerfullness
?
'Top of the Mind Position'. * Instant Awareness, knowledge about the brand and easy recall. * Values and image of the brand is defined, highlighted and refreshed by the celebrity. * The celebrity adds new edge and dimension to the brand. * Credibility, trust, association, aspiration and connectivity to brand. * Belief in efficiency and new appearance that will result in at least trial usage. (nasrinmalang January 5th, 2010, 10:45 PM)
EFFECTS
?
Celebrity endorsement is likely to positively affect consumers brand preference, brand attitude, brand association and purchase intentions. To ensure positive results, however, it is critical for advertisers to have a clear understanding of consumer's reactions and reinforcement of celebrity endorsement. The impact of celebrity endorsement on any brand as well as on consumer's purchase decision is very critical.
Here’s what the research reveals. Although almost 8 out of every 10 say that the most prominent ad that they remember are the ones with celebrities in it, it doesn’t influence their purchase pattern. It does not affect consumer-buying decision at any point of time. Since a celebrity is endorsing many brands/ product, more than assistance, it creates confusion for the consumer on the recall. ? what matters the most is the quality of the product that can be provided to the consumers. ? Across India, 78% of people feel that the most important factor whileu89 buying any product is ‘quality of the product’, followed by ‘price’, whereas only 3% consider a celebrity as an important factor before buying a particular product. (FINANCIAL EXPRESS ,wed 6th oct )
?
INFLUENCE OF CELEBRITIES
Customer feelings ? Attitudes ? Audience perception about the product. ? Capture the viewer's attention (Dyson & Turco, 1998; Miciak & Shanklin, 1994; Swerdlow, 1984) ? Increase product awareness (Wilson, 1997) ? Influence the purchase decisions of the target market (Ohanian, 1991) (eg. In Nike's ad campaign that ran during the 2002 World Cup series,
?
all of the people in the ad were soccer stars, dressed in Nike soccer apparel, playing in an "underground tournament". This immediately attracted the attention of the target market: soccer players.)
RISKS
?
?
?
? ? ?
Celebrity overshadows the brand Necessary Evil Celebrity creditability a question mark for the competent customer Conflicting Image Multiple Endorsement Influence of Celebrity scandals and moral violation on brands
RETURNS/BENEFITS
?
?
? ? ? ?
Differentiation of brand Celebrities break clutter Build Awareness Connects Emotionally Quick Connect Source of Imitation and hence inducing increased product usage
GUIDELINES FOR SUCCESSFUL CELEBRITY ENDORSEMENT
?
?
?
?
?
Controversial or outdated celebrity should be avoided Advertiser should not sign up a celebrity who does’nt connect Advertiser should not sign up a celebrity because every one is behind him Should not appoint a celebrity who has endorsed a variety of product There should be proper match between celebrities personality & product.
Impact of celebrity endorsement on buying decisions
?
?
?
Known products and names are sold more than unknown ones. More or less every consumer has a brand preference and given the affordability and societal norms, each buyer would like to buy and consume one of the highly acceptable, recognizable, and reputed brands. Celebrities are after all mere mortals made of flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also exacerbate the image of a brand.
Celebrity Endorsement For Social Causes
?
?
AMITABH IN POLIO – “Do boond zindagi ki”. AMITABH in HIV- AIDS. Aamir in incredible India- “Atithi Devo Bhava” Preity Zinta in bravery award.
? ?
VAMPIRISM
?
Vampirism is becoming another pitfall from which a company can suffer when using a celebrity endorser. Vampiring occurs when the celebrity becomes bigger than the brand that is being endorsed. This problem can be attributed to a limited number of celebrities with whom the consumers are familiar. However, by keeping the endorsements short-term and changing the celebrities who endorse the product, a company can help prevent the risk of vampiring (Jamnalal Bajaj Institute of Management Studies, 2001).
CONCLUSION
?
?
? ?
?
Celebrity endorsements do work in the Indian scenario. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favourable impact. Celebrity endorsements do work in the Indian scenario. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favourable impact. Multiple endorsements do clutter the minds of the consumer. When one endorser endorses many brands, then the recall of the endorsement depends entirely on the power of the brand. It is not just the financial gains from the endorsements that matter to the celebrity. They also look for the fit with the brand and what the endorsement might do to their image.
Contd…
? ?
?
?
Professional performance of the endorser is important in deciding the success of the endorsement. More than the bad performance in the professional field, it is the association of the celebrity with a controversy or illbehaviour that causes negative impact to the endorsements. The celebrities’ accessibility, regional appeal factors, popularity, attractiveness, belief system are some other important platforms, which are raised when we study the impact of celebrity endorsement on brands. Studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. Few celebrities have been more successful than those with almost parallel fame. So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as a assured strategic tool to win profits, market share,revenues, etc.
KEY FINDINGS:
'Bollywood actress' had the maximum advertising share of 'celebrity' endorsements on TV during H1 '2010. ? 'M S Dhoni' topped the list of celebrities endorsing for maximum number of advertisers on TV during H1' 2010. ? 'Aerated soft drink' was the top category in celebrity endorsements on TV during H1 '2010. ? 'Lux toilet soap' was the most advertised brand under celebrity endorsements on TV during H1 '2010. ? During H1'2010, 'film actress' leads with 45 per cent share of 'celebrity' endorsements on TV followed by 'film actor' and 'sports person' with 42 per cent and 10 per cent share respectively. (Overview of Celebrity endorsements on TV during H1 2010 (27 July, 2010) Indiantelevision.com's AdEx India Analysis)
?
doc_909197032.pptx