Assignment on Consumer Behavior (PDF)

LUCY COLLEGE
DIRE DAWA CAMPUS
COLLEGE OF BUSINESS AND ECONOMICS
MASTER OF BUSINESS ADMINISTRATION
POST GRADUATE PROGRAM
ARTICLE REVIEW ON THE IMPACT OF CELEBRITY
ENDORSEMENT ON CONSUMER BEHAVIOR
BY: RIZWAN RAHEEM AHMED
SUMEET KUMAR SEEDANI
MANOJ KUMAR AHUJA AND
SAGAR KUMAR PARYANI
Course title: consumer behavior
Reviewed by
FATIYA YASIN
ID NO - PGP/223/11
Dec. 2018
Submitted to: Dereje A. (Ass. prof.)

IMPACT OF CELEBRITY ENDORSEMENT
ON CONSUMER BEHAVIOR
RIZWAN RAHEEM AHMED
Indus University, Karachi, PAKISTAN
SUMEET KUMAR SEEDANI
Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
(SZABIST, Karachi, PAKISTAN)
MANOJ KUMAR AHUJA
Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
(SZABIST, Karachi, PAKISTAN)
SAGAR KUMAR PARYANI
Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
(SZABIST, Karachi, PAKISTAN)
September 27, 2015

INTRODUCTION
In today’s world celebrities are being treated as a role model. People are changing their living
style related with their favorite celebrity. This thing creates a great impact on the buying
behavior of the persons. This attracts the customers and ultimately increases the company
productivity.
Celebrities are not always creating any kind of effect on persons mind in terms of buying. But
mostly it gives a great impact on perception of choosing any product. We are always thinking
that if our favorite celebrity is using them. Then we should use that to be like them (Khatri2006).
From last 150 years advertising is changing in different phases from the classical to modern.
Now a day it’s the best strategy used by marketers to influence customers by showing celebrities
with their products, it includes different appeals lie, exciting, absurdity, sexual etc. Belch, G. and
Belch, M. (2008) acknowledged that the main aim of formulating such strategies is to get high
brand revelation, longing, concentration and curiosity. To do so, marketers attach famous
personalities’ with their products.
McCracken (1989) stated that these famous personalities’ had great influence on the consumer’s
buying behavior that’s why it becomes the most attractive tool of advertising now a day. The
major aim to do advertising and adopt this strategy is to influence customers towards the
products (Ohanian 1990).
Erdogan (1999) concludes that celebrities are those people who have well known by the large
number of people. They have special uniqueness and features like magnetism, unusual standard
of living or special skills that are commonly experiential in common people.
Khatri (2006) studied that the celebrity endorsement is the Promotion strategy to attract the
customers. Zafar (2009) suggested that the celebrities’ endorsements are being used to get the
attention of the customers, by involving the best models in the advertisement and motivate
people to get attention towards the product because this will ultimately raise the customer toward
that company’s product. In this process the message of the main motive of the product is
explained by the well-known personalities. So they are more preferable by the companies for
developing the awareness.

SUMMARY
Today celebrity endorsement becomes the multi-million industries in the world. Marketers
endorsed celebrities with their products and brands in the advertisement to increase their sales
and change the perception of the viewer’s regarding their brand, which positively impacts on
their buying behavior. This research focuses on the celebrity endorsement and its impact on the
customer’s buying behavior and their perception regarding the product or brand of the company.
The study found that celebrities endorsed advertisements are more attractive than the non-
endorsed advertisements. Moreover the tested attributes of celebrity show positive relationship
with the buying behavior and brand perception as well. It also proved that there is a significant
impact of celebrity endorsement on the buying behavior. Finally, the results of the study further
proved that there is a significant impact of celebrity endorsement on the buying behavior of
customers.
McCracken (1989) found that celebrities endorses characterized an effectives way of transferring
meaning to brands. The common conviction of the marketers is that there is a significant and
huge impact of those advertisements, which are endorsed by the famous celebrities comparably
with the non-endorsed celebrities.
CONTRIBUTION/ STUDY PURPOSE
The study significantly contribute to the body knowledge by in sighting the impact of celebrity
endorsement on consumer buying behavior.
Furthermore, the study also contributes as a reference or literature review for other researcher
who want to study in the area or the results of this study will be useful for academicians; they
can gain insights and suggestions for future research.
The purpose of this paper is to establish the effectiveness or lack thereof of celebrity
endorsements. In addition the research study sought to determine which attributes consumers pay
attention to when evaluating and selecting a brand and which factors brought about by celebrity
endorsements contribute to building brand loyalty in the context of the Company’s
advertisements.