Influence of Celebrities and Customer Decision Making

This study aims to understand the impact of celebrity endorsements on the customer decision-making process in the retail industry of Australia. It includes a literature review, research methodology, and proposed structure of the study.

Running head: INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
A STUDY TO UNDERSTAND THE INFLUENCE OF THE CELEBRITIES ON THE
DECISION MAKING PROCESS OF THE CUSTOMERS: A CASE STUDY OF THE
RETAIL INDUSTRY OF AUSTRALIA
Name of the Student:
Name of the University:
Author’s Note:

1INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
Table of Contents
1.0 Introduction..........................................................................................................................2
1.1 Introduction......................................................................................................................2
1.2 Problem Statement...........................................................................................................2
1.3 Aim of the Study..............................................................................................................3
1.4 Research Objectives.........................................................................................................3
1.5 Research Questions..........................................................................................................3
1.6 Research Hypothesis........................................................................................................4
2.0 Literature Review.................................................................................................................4
2.1 Customer Decision Process..............................................................................................4
2.2 Celebrity Endorsements...................................................................................................4
2.3 Impact of celebrity endorsements on the customer decision making process.................5
3.0 Research Methodology.........................................................................................................5
3.1 Investigation Method.......................................................................................................5
3.2 Data Collection Process...................................................................................................6
3.3 Data Analysis Process......................................................................................................6
3.4 Ethical Considerations.....................................................................................................6
4.0 Proposed Structure of the Study...........................................................................................7
5.0 Time-Horizon.......................................................................................................................8
6.0 References..........................................................................................................................11

2INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING

3INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
1.0 Introduction
1.1 Introduction
This research proposal intends to focus on topic “the extent to which the decision
making process of the customers regarding the purchase of the products or the services
offered by the business enterprises are being influenced by the celebrity endorsement”. This
topic is an important one since it is seen that the majority of the contemporary business
enterprises are taking the help of celebrity endorsements to enhance the sale of the goods or
the services offered by them to the customers. As a matter of fact, it was seen that the
Australian retail industry spend more than $1 trillion on different celebrity endorsements for
the purpose of influencing the buying behaviour of the customers in the year 2018 alone
(Phillipov 2019).
1.2 Problem Statement
Rocha et al. (2019) are of the viewpoint that the usage of the celebrity endorsements
for the purpose of influencing the buying behaviour of the customers is a very common
marketing strategy and the majority of the business enterprises frequently resort to the usage
of this for the enhancement of their profitability through the increase in its sales. However,
the major problem arises because in the majority of the cases it is seen that the business
enterprises fail to get the actual reward for the capital that they have behind the different
celebrity endorsements that they use (Chimhundu 2016). For example, it was seen the entire
retail industry of Australia despite investing more than $1 trillion for celebrity endorsements
was able to attain an industry growth of 6.9% only (Phillipov 2019). In addition to this, there
are ethical issues involved in the process as well. For example, through the usage of
celebrities the enterprises often manipulate the behaviour of the customers rather than relying
on the qualities of the products or services offered by them (Attia 2017).

4INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
1.3 Aim of the Study
The aim of the study is to understand the impact of the celebrity influence on the
customer decision making process in the particular context of the retail industry of Australia.
1.4 Research Objectives
The research objectives which the researcher had selected for the conduct of the study
are listed below-
1. To understand the factors which influence the decision making process of the
customers in the retail industry of Australia
2. To evaluate the relation between celebrity endorsements and the customer decision
making process in the retail industry of Australia
3. To recommend ways through which the tool of celebrity endorsements can be used
with greater results for the purpose of influencing the customer decision making
process in the retail industry of Australia
1.5 Research Questions
The research questions which the researcher had selected for the conduct of the study
are listed below-
1. What are the factors which influence the decision making process of the customers in
the retail industry of Australia?
2. What is the relation between celebrity endorsements and the customer decision
making process in the retail industry of Australia?
3. What are the ways through which the tool of celebrity endorsements can be used with
greater results for the purpose of influencing the customer decision making process in
the retail industry of Australia?

5INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
1.6 Research Hypothesis
H1-Celebrity endorsements have a positive impact on the customer decision making process
H0-Celebrity endorsements do not have an influence on the customer decision making
process
2.0 Literature Review
2.1 Customer Decision Process
Carrillat, O’Rourke and Plourde (2019) are of the viewpoint that the customers before
the actual purchase of any products or services go through various stages which is commonly
called the name of customer decision making process. For example, the customers at the first
stage recognise the need for a particular product or service whereas in the second stage they
search relevant information regarding the product or service that they want to purchase
(Phillipov 2016). In the third stage, they usually undertake an evaluation of the different
objectives that they have whereas in the fourth stage they actually undertake the decision to
buy the concerned product or service (Chimhundu 2016). In the last stage, they undertake a
post-sale evaluation of the product or the service that they have purchased.
2.2 Celebrity Endorsements
As discussed by Tzoumaka, Tsiotsou and Siomkos (2016), there are various factors
which influence the decision making process of the customers like price, quality, brand-
image of the organisation selling the product or the service and others. In the present times, it
had been seen that the tool of celebrity endorsement is one of the most important ones which
is being used for influencing the decision making process used by the customers (Moreno-
Gavara and Jiménez-Zarco 2018). For example, it is seen that the business enterprises are
taking the help of the popular movie stars, sportspersons and others for participating in the

6INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
marketing campaigns or the advertisements created by them (Phillipov 2019). This is
primarily done to influence the psychology of the customers and make them believe that even
their favourite celebrities are using the same brand and thus they have the opportunity to
become like them through the usage of the same products or services (Attia 2017).
2.3 Impact of celebrity endorsements on the customer decision making process
A critical analysis of the marketing campaigns used by the contemporary business
enterprises and also the success attained by them reveals the fact that the tool of celebrity
endorsements had emerged as one of the most important ones for influencing the decision
making process of the customers (Carrillat, O’Rourke and Plourde 2019). However, it is seen
that the major problem with the usage of celebrity endorsements arises because of the fact
that the focus of these advertisements is completely on the celebrities rather than on the
values or the qualities of the product or the services offered by the enterprises (Rocha et al.
2019). Having said this, in the majority of the cases it had been seen that the effective usage
of the tool of celebrity endorsements for the purpose of marketing had enhanced the
profitability of the enterprises.
3.0 Research Methodology
3.1 Investigation Method
As discussed by Kumar (2019), three of the most important investigation methods
which are commonly used by the different researchers are exploratory, descriptive and
exploratory. The researcher for the effective completion of this research will take the help of
the exploratory investigation method since it will help the researcher to link the findings of
the study with the objectives which were formulated in the first section of the study.

7INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
3.2 Data Collection Process
Quinlan et al. (2019) are of the viewpoint that the researchers for the purpose of
collecting data or information for the completion of their study have the opportunity to take
the help of either primary data collection process or the secondary data collection.
Considering the nature of the topic which had been selected for the study, the researcher for
the completion of this study will take the help of the primary data collection method. The
researcher will thereby conduct survey with 100 customers of the retail industry of Australia
so as to find out the extent to which they are influenced by the celebrity endorsements.
3.3 Data Analysis Process
According to Flick (2015), two of the most commonly used data analysis methods by
the researchers are the qualitative data analysis method and the quantitative data analysis. The
researcher for the completion of this study will take the help of the quantitative data analysis
method. This method will enable the researcher to interpret the primary data which will be
derived through the process of survey in an effective manner and thereby address the
requirements of the study in an adequate manner.
3.4 Ethical Considerations
The researcher will comply with the ethical standards of academic research by taking
into account the entity of plagiarism. The researcher intends to attain this end by giving due
credit to the scholars or the authors whose works have been used for the completion of the
study through in-texts citations and reference list. More importantly, the researcher will also
ensure the fact that the primary data collected from the respondents would only be used for
the completion of the study and for no other purposes. In addition to these, the researcher
would also ensure the fact that no personal or private questions are being asked from the
respondents during the survey.

8INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
4.0 Proposed Structure of the Study
Figure 1: Proposed Structure of the Study
Source: (Created by the Author)
The entire study will comprise of five chapters, namely, introduction, literature
review, research methodology, findings and discussion and conclusion and recommendations.
In the first chapter, the researcher will highlight the background of the study, the problem
statement, aims, objectives, research questions and other facets of the entire research. In the
second chapter, the researcher will analyse the topic which had been selected for the purpose
of the research through the specific lens of the different concepts, frameworks, theories and
others articulated in the past literature. In the third chapter, the researcher will elucidate the
research methodological framework which will be used for the purpose of the conduct of the
research or the study. In the fourth chapter, the researcher will undertake a critical analysis of
the primary data which had been obtained through the process of survey from the respondents
in the light of the concepts, frameworks, models, theories and highlighted in the literature
review section of the study. Lastly, in the fifth chapter of the study, the researcher intends to

9INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
summarise the major findings of the entire study and also make suitable recommendations on
the basis of the findings of the study.
5.0 Time-Horizon
The time-horizon which the researcher intends to follow is given below-
Activity Months
M
Augus
t
M
Septembe
r
M
Octobe
r
M
Novembe
r
M
Decembe
r
M
Januar
y
M
Februar
y
Finalizing
the topic

Collecting
data from
secondary
sources
 
Forming a
layout of the
research
work

Conducting
Literature
review
  

10INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
Forming the
research
plan
 
Selecting
appropriate
research
methodologi
es
 
Collecting
data from
primary
sources
 
Analysis of
collected
data sets
 
Interpretati
on of
collected
data sets

Concluding
the Study


11INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
Designing a
rough draft
 
Submitting
the Final
Work
 

12INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
6.0 References
Attia, S.T., 2017. The impact of religiosity as a moderator on attitude towards celebrity
endorsement–purchase intentions relationship. Journal of Marketing Development and
Competitiveness, 11(1).
Carrillat, F.A., O’Rourke, A.M. and Plourde, C., 2019. Celebrity endorsement in the world of
luxury fashion–when controversy can be beneficial. Journal of Marketing Management, pp.1-
21.
Chimhundu, R., 2016. Marketing store brands and manufacturer brands: Role of referent and
expert power in merchandising decisions. Journal of Brand Management, 23(5), pp.24-40.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage
Publications Limited.
Moreno-Gavara, C. and Jiménez-Zarco, A., 2018. Strategies for Luxury Fashion Brands'
Targeting the Young Audience: How to Link Celebrity Endorsements and Brand Extensions
With Social Media. In Fashion and Textiles: Breakthroughs in Research and Practice (pp.
121-157). IGI Global.
Phillipov, M., 2016. ‘Helping Australia Grow’: supermarkets, television cooking shows, and
the strategic manufacture of consumer trust. Agriculture and human values, 33(3), pp.587-
596.

13INFLUENCE OF CELEBRITIES AND CUSTOMER DECISION MAKING
Phillipov, M., 2019. Supermarkets, television cooking shows, and integrated advertising:
New approaches to strategic marketing and consumer engagement. In Case Studies in Food
Retailing and Distribution (pp. 255-265). Woodhead Publishing.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South
Western Cengage.
Rocha, P.I., Caldeira de Oliveira, J.H. and Giraldi, J.D.M.E., 2019. Marketing
communications via celebrity endorsement: an integrative review. Benchmarking: An
International Journal.
Tzoumaka, E., Tsiotsou, R.H. and Siomkos, G., 2016. Delineating the role of endorser's
perceived qualities and consumer characteristics on celebrity endorsement
effectiveness. Journal of Marketing Communications, 22(3), pp.307-326.