Analyzing Celebrity Endorsement Influence on Consumer Choices

This essay delves into the significant impact of celebrity endorsements on consumer purchasing decisions, using Tommy Hilfiger as a case study. The introduction provides a background on celebrity endorsement as a marketing strategy, highlighting its role in enhancing brand value and attracting consumers. The research aims to analyze the influence of celebrity endorsements, understand their significance to organizations, and identify associated challenges. The literature review establishes a theoretical framework, comparing and contrasting different viewpoints on celebrity endorsement. The research methodology outlines the approach, design, data collection methods, and ethical considerations. The results section presents the findings of the data analysis, followed by a discussion of the key findings and a conclusion summarizing the research. Recommendations are provided to improve understanding of customer purchase decisions. The study explores the effectiveness of celebrity endorsements, potential challenges, and the impact on consumer behavior within the competitive market.

Does celebrity endorsement
influence consumers
purchasing decisions?

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Title...................................................................................................................................1
1.2 Introduction......................................................................................................................1
1.3 Background of research....................................................................................................2
1.4 Problem Statement............................................................................................................2
1.5 Rationale of research study..............................................................................................2
1.6 Research Aim and Objectives..........................................................................................2
1.7 Research Questions..........................................................................................................3
1.8 Dissertation structure........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2.1 Literature Review.............................................................................................................5
2.2 Celebrity endorsement and its significance to the organisations......................................5
2.3 Influence of celebrity endorsement influence consumers purchasing decisions..............7
2.4 The challenges and obstructions faced by organisation during endorsing celebrities......9
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
3.1 Introduction....................................................................................................................12
3.2 Research philosophy.......................................................................................................12
3.3 Research approach..........................................................................................................12
3.4 Research design..............................................................................................................12
3.5 Research strategy............................................................................................................13
3.6 Data collection................................................................................................................13
3.7 Sampling.........................................................................................................................14
3.8 Data analysis...................................................................................................................14
3.9 Reliability and validity...................................................................................................14
3.10 Ethical consideration....................................................................................................15
3.11 Research limitation.......................................................................................................15
CHAPTER 4: RESULTS...............................................................................................................16
4.1 Introduction....................................................................................................................16
4.2 Results and Findings.......................................................................................................16
CHAPTER 5: DISCUSSION.........................................................................................................25
CHAPTER 6: CONCLUSION......................................................................................................28
6.1 Conclusion......................................................................................................................28
6.2 Recommendation............................................................................................................30
REFERENCES..............................................................................................................................32
APPENDIX....................................................................................................................................36

CHAPTER 1: INTRODUCTION
1.1 Title
Influence of celebrity endorsement influence consumers purchasing decisions: A study on
Tommy Hilfiger.
1.2 Introduction
The marketing strategies used by the organisations where marketers endorse one or many
celebrities in order to advertise specific product or services manufactured or delivered by the
organisation. The motive of celebrity endorsement is to reach greater audience, represented by
the fan base of celebrity (Pradhan, Duraipandian and Sethi, 2016). Big corporations willing to
spend millions of dollars in order to cut a deal with very popular and renowned celebrity. Their
aim is to gain competitive advantage and become leader in the industries. Tommy Hilfiger is one
of the leading designer lifestyle brand and is internationally recognised organisation (Ambroise
and et.al., 2014). It was founded in 1985 and aims to deliver premium quality products to
consumers worldwide. The company is known for conducting effective marketing campaigns
that helps in enhancing the productivity and profitability of the organisation. As per recent
reports, model Hailey Baldwin and model activist Winnie Harlow have been announced as
global brand ambassadors of Tommy Hilfiger's women collection (Hailey Baldwin, Winnie
Harlow to endorse Tommy Hilfiger. 2017). Earlier, celebrities like Lewis Hamilton, Selena
Gomez, and The Chainsmokers have endorsed products of Tommy Hilfiger. Celebrity
endorsement helps in raising up the value of brand and attraction of consumers.
In this context, the focus of dissertation would be on analysing the impact of celebrity
endorsement in influencing the purchase decision making of customers. In order to carry out the
research, researcher first conduct literature review in order to educate about the term and its
implications by analysing and reviewing articles written by senior researchers and authors.
Researcher will than provide information regarding the research methodology and research
methods which will be used by him or her in the present dissertation. Researcher will than
provide analysis of collected data and its interpretation in explicit manner in order to enhance the
effectiveness of the dissertation. Eventually, some of the best recommendations will be provided
by researcher to the management of Tommy Hilfiger in order to increase their understanding
about customer purchase decision.
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1.3 Background of research
Celebrity endorsement is now becoming trend for large scale organisations who are
willing to afford celebrities which endorse their products and services (Hambali and et.al., 2015).
The motive of using celebrity for marketing is to gain attraction of customers and influence their
purchase decisions. Researchers in their past studies have examined the benefits, challenges and
cost associated with celebrity endorsement. There are limited studies which examine the
behaviour of customers and their purchase decision because of celebrity endorsement. Thus, this
study will enlighten the influence of celebrity endorsement on purchase decision making of
customers by referring to Tommy Hilfiger.
1.4 Problem Statement
In order to sustain in competitive environment, it is essential and crucial for the
management of business organisation to formulate and devise specific strategies and plans.
Marketing plays crucial and prominent role in enhancing sales and profits of the company.
Celebrity endorsement is the method of marketing where organisation makes deal celebrities
who endorse their products and services. The major problem is that management does not
explicitly understand the meaning of celebrity endorsement and how it can influence the
purchase decision making of customers. In present dissertation, researcher will examine this
problem and provide optimum solutions.
1.5 Rationale of research study
Through this research study, the researcher will be able to enhance his or her level of knowledge
and understanding by analysing the concepts and theories related with marketing and celebrity
endorsement. Furthermore, through this research study, researcher will be able to get familiar
with Tommy Hilfiger which is one of most prestigious and renowned apparel organisation.
1.6 Research Aim and Objectives
Aim
The aim of present dissertation is “To analyse the influence of celebrity endorsement
influence consumers purchasing decisions; A study on Tommy Hilfiger.”
Objectives
In order to underpin aim, the summarised objectives of dissertation are described below:
 To comprehend the term celebrity endorsement and its significance to organisations.
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 To analyse the influence of celebrity endorsement influence consumers purchasing
decisions.
 To identify the challenges and obstructions faced by organisation during endorsing
celebrities.
1.7 Research Questions
The research questions are fundamental core of research study. In order to attain the aim and
objectives of research study, it is essential for researcher to formulate precise research questions.
In this context, the researcher will answer the following questions which are mentioned below:
1. What is celebrity endorsement and what is its significance to organisations?
2. How celebrity endorsements influence consumers purchasing decisions?
3. What are the challenges and obstructions faced by organisation during endorsing
celebrities?
1.8 Dissertation structure
In order to attain the aim and objective of research study, it is important for researcher to carry
out the dissertation in systematic and structured manner. In this context, the structure of
dissertation is described below: Chapter 1: Introduction – The first chapter dissertation will introduce the topic briefly.
In introduction, the background of study, rationale and problem statement of research will
be provided. Aims and objectives along with research questions will be explained in first
chapter. Chapter 2: Literature Review - Literature review is going to be second chapter of
dissertation. In this chapter, researcher will educate about the topic in more detail
manner. The motive is to enhance the comprehension understanding of readers. Chapter 3: Research Methodology - In third chapter, researcher will describe the
research methodologies associated with the research study. The design, approach,
philosophy, way of data collection and analysis will be provided in the third chapter. Chapter 4: Results – In the fourth chapter, researcher will provide interpretation of the
data collected for research purpose. The interpretation will be provided in explicit manner
in order to enhance the effectiveness of the dissertation. Chapter 5: Discussion – In this chapter, researcher will discuss the key findings
identified in the result section in most explicit and succinct manner.
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 Chapter 6: Conclusion - The sixth and last chapter will be conclusion and
recommendation where researcher will summarise the dissertation be providing
information of key findings produced in the dissertation.
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CHAPTER 2: LITERATURE REVIEW
2.1 Literature Review
Literature review is crucial part of dissertation. The motive of conducting literature
review is to establish theoretical framework in the study. In this chapter researcher will compare
and contrast on the view of authors so that robust argument can be created. Celebrity
endorsement is the marketing tactic used by marketers in order to promote the products and
services by signing contract with celebrity. In this context, researcher will provide in-depth
understanding about the subject matter by contrasting on the articles and literature done by senior
researchers and authors.
2.2 Celebrity endorsement and its significance to the organisations
According to Pradhan, Duraipandian and Sethi, (2016) celebrity endorsement is the term
used in marketing where marketer hires or make deals with celebrities in order to enhance the
promotion and marketing activities. Celebrity endorsement is a form of marketing strategy used
by brands or company to promote their products. Celebrities or well-known person help in the
launching of new products or services, even some times they are used for spreading general
awareness among public. It is commonly used to launch beauty or fashion brands. Companies
choose celebrities to promote products because they have mass communication skills, which help
to attract large audience at time. People usually listen attentively and carefully to celebrities.
Trade cards are given to audiences, this card contains picture of celebrity. Often these trade cards
are used in the products itself, this attracts customers. If a brand is launched by celebrity, the
aim of the company is to reach potential buyers.
In the words of Tzoumaka, Tsiotsou and Siomkos, 2016 this is an essential thing that is
use by various organizations to endorse their brands, health campaigns and products. It is a
special task which is conducted by many companies in order to achieve their goals and targets.
The effectiveness of this endorsement is very vast and effect on mass population with effectively
and efficiently. In the endorsement, advertising campaign and a form of brand includes by a
well-known and famous person for the promotion of such organization's products and services.
In this advertising method, clothing and manufacturing of several perfumes are the most
common example of this celebrity's endorsement. This technique is too much useful in various
business and many organizations adopt this method of publicity in order to achieve
organizational goals and attract more customers.
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According to the Lee and Koo, (2015) there are various brands look for those celebrities
who share the special qualities, ideas and values towards to create the potential synergy between
the celebrity and the organization which is adopted this technique. In addition to this context,
there are a large follower bases is the main criterion for the brand and it enables it to reach a
wider audience thanks to published clicks, tweets, pictures and shares. Further, the perceived
quality as like higher than customers are more attracting to that product and services. This will
attribute the credibility to a company that is endorsed by the special celebrity. Min and et.al.,
(2017) elucidated that it contributes the enhancement of the credibility of the particular
organization. The company who choose this technique, enjoy the enhanced credibility and
achieve the targets with the selection of right celebrities for their products and services. It also
boosts the organizational brand awareness with effectively and efficiently. A person who loves to
take pictures and this is always spread many blogs, social media, magazines and many more. So
this is a big promotional tools for those companies who choose this as the advertisement and for
attracting new customers in order to achieve their potential goals and objectives. There are
various endorsement techniques used by brands like television advertisement, inviting celebrities
in launching event of new products. Wang, Kao and Ngamsiriudom, (2017) said that celebrity’s
endorsement can benefit companies in many ways like direct sales, if a celebrity launches a
product customers get really excited and directly buy that product without any future thoughts.
Awareness about the brand.
Davies and Slater, (2017) proposed that people easily trust known personalities,
endorsement can help in building up of confidence among people about that particular product. If
a very famous personality launch product, it will attract more audience. Celebrities are person
whom we trust blindly, if they say something about the product, audience believe it to be true.
Market is dynamic in nature it always changes, future is unpredictable in this condition.
Celebrity branding can give positive response as well as negative response also, it depends upon
celebrities’ image in society. Paid endorsement is the contract between celebrity and the brand to
represent them in advertisement of product. If celebrity launch new product, it can reach to new
consumer within very short span. Younus, Rasheed and Zia, (2015) said that it has become one
of important marketing strategy. It help brand to grow and increase sale in market. It also help in
increase of followers of brand because people are very obsessed with celebrities, they want to
become like them. They make people believe, that product is used by them. Products are linked
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with the celebrity. Teenager are very impulsive there requirements or need always change to
meet requirement, they believe in product and buy it. Celebrities generally use their social
websites to promote products. They enjoy public recognition, if they support any of the brands
personally image of brand will rise. If they want to target elderly group than advertisement of the
product should be given on radio, newspaper televisions, etc. and if they wish to target s young
people then ads are given on social media or social application. Celebrity branding has positive
as well as negative effects also. Positive effect on individual behaviour can create good image.
Erfgen, Sattler and Villeda, (2016) said that indeed celebrity endorsement is very useful
if you want to cover large market. It influences purchase of the product, if product is launched
with the name of a famous personality then public generally buy that product. They have the
image set that if celebrity is using that product it will be good. Example if a customer has wavy
hairs and want a product for that, and celebrity having wavy hairs suggest for particular product
then they will buy that product. If product is launched by their favourite personality, people trust
that product. It helps to build awareness among people or public. Parmar and Patel, (2015) said
that brand awareness means, how much people are aware of the brand and product name. If
people are not aware of product they will not buy that product. New brand spend a lot to create
brand image. To increase sale it is very necessary to create positive image. Celebrity helps in
creation of image.
Small companies use celebrities to launch new products because it helps in positioning of
the brand. It creates strong impression in front of the public so that they can select particular
brand from various other brands available in market. Positioning is important for new or
developing brand. New product is launched by the company, it has to find new buyer for
product. Finding new buyers is not an easy task, they have to target particular segment of people
and awareness about product is spread between them. Advertisement of the product is done by
celebrity then people remember add or the product when the go for marketing. Advertisement
leaves some emotions behind, so it is not easy to forget.
2.3 Influence of celebrity endorsement influence consumers purchasing decisions
According to Lim, Cheah and Wong, (2017), Celebrity endorsement is important part of
organization to consume different commercial appliances in the other countries because most of
the customers are identified the different messages and information of product. Each and every
product are containing the information related the celebrity endorsement this celebrity
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endorsement have more values that would be purchased and the rate of value is very high. Most
of the organizations uses this celebrity endorsed in different areas or fields such as Bollywood,
sports and cricketers has specific endorse brand in the market.
Television is the best platform to promoting their product in marketplace because most of
the people are connected through this medium and all type of people see the advertisements so
that it is very for company to expanding their business with the help of technology, platform etc.
According to Kumar, (2015), In UK, the celebrities power is more important start their business
in a right direction with the use of endorsement. These celebrities are not only helpful for
promoting their product but also increasing selling in the marketplace. For example- Cad-bury is
very popular brand in market that would be promoting the product by Ferrero and Hershey. In
this way, it will increase the productivity and profitability in marketplace. Ronaldo is also
promoting the watch in the market and most of the peoples are attracted and increases their
selling in globally.
According to McCormick, (2016), celebrity endorse is very essential part to recognition
of consumer to provide an effective advertisement helpful for increasing their values in
marketplace. This is the best way to promoting their product and selling in the market. The
celebrities are earning a lot of money to introduce the product in globally. It will affect the
positive value on brand. In this way, it increases their brand value in marketplace. Market has
been expanded their business in all over the world because it increases the demand of people.
Most of the people are attracted by advertisement because the physical attraction is more
important for organization that influencing the consumer to buy a product in market. According
to Ong and Ong, (2015), it examined that the endorsement is uses celebrities because normal
people are not easily motivate the consumer.
The celebrities are product correlated to each other because both are attraction of people
to choose a particular item in the market. It is the most important way to influencing the people
towards the product and materials. Another process, it examined that two sources are directly
impact to the attitude towards the brand and advertisement (Ha and Lam, 2016). These are two
main part to understand the need of business in all over the world. Endorses celebrity motivated
to other advertisement because it will directly impact on the product details. In this way, it highly
influences to improve the product detail that would be matching to the requirement of
consumers. According to the Wu, (2015) the term celebrity enforcement is purely focuses on the
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promotion of organisations products and services by various methods and techniques so that the
customer of that particular company are influenced and attract to their products. It is very
common and useful technique that should be adopt by every company in order to achieve their
business goals and targets. Khan, (2018) Company can hire the special well known celebrity and
vouching them for promoting their products, trust, brand awareness which is an essential element
in the purchase decision making process. Many consumers who purchase that particular product
and use their services and they feel more sympathetic in order to that particular brand. This is the
simple psychological effect that people believe in purchasing the product and services that have
promoted by the well-known celebrity they admire. It will allow to them to emulate various
celebrity's wants and desired traits.
As per the view of Erfgen, Sattler and Villeda, (2016) this is an important factor for
attracting similar people into their life style. The celebrity endorsement is affect to the
consumer’s purchase intention and changes the consumer preferences. In this context, there is a
most relevant theory that linked with this technique that is, it introduces attributes such as
likeability, similarity and familiarity which are the main attributes that can effects on the
consumer buying intention. There are many brands, taking benefit of that by increasingly uses of
the social media communities of the celebrities. Bhakar and et.al., (2016) said that this technique
social media is a perfect method to reach many customers and in particular to those of younger
demographics to build and engage connections with the celebrities. It makes a special place for
these many famous person to plug with a company or their products and various services on their
personal accounts of social media. The celebrity endorsement is normally seen as the best option
for making brand image in the consumer's mind and for attracting them to reach certain stage of
success.
2.4 The challenges and obstructions faced by organisation during endorsing celebrities.
There are various challenging issues faces because of many obstructions are already
damage the market value. This will identify different challenging issues with the examples in
given below: According to Abbas and et.al., (2018), Celebrities endorsement is very successful
part of organization to do marketing on a particular product in which this is the best medium to
provide an effective information to their consumers. They also used different tool to promoting
their product in marketplace. There are many challenging phases that would be against the
business process and objective of ventures. Erfgen, Sattler and Villeda, (2016) is mainly focused
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to identifying research criteria of celebrities endorsement and many obstruction faces at the time
of marketing.
According to the Jamil and Rameez ul Hassan, (2014), Most of the celebrities are fit for
promoting the product in market while some times, celebrities are always making mistake at the
time of marketing and promotions that would be wrong impact on the consumers. They would be
directly affect the brand value and their image. For Example- In 2009, the Tiger Woods
published the photos of pornstar that would be negative impact on the advertisement.
According to Ranasinghe and Wanninayake, (2016), Sometimes, the celebrities would be
exposed in very bad way and they can be affected the whole organization other companies would
be taking advantages and promoting same product in marketplace. This is not helpful for
increasing their brand value in the global market. In this way, it can be decreases the value and
degrade the images. Another important issues is that when the same celebrities are working with
other companies that would be putting a bad impact on it. Customers are mainly focused on the
stars and celebrities. It is not focus on product so that it is very disadvantages for celebrities not
to be promoted harmful product in the market.
Celebrities are mainly focused on the money and they do not know about the product
safety and development. For Example- David Beckham is very famous personality and they have
done work in many companies. They are always seen in advertisement so that the consumer
noticed again and again in every advertisement. It will be directly affected the business
operations and their publicity. This author is also focused on the celebrities marketing because
they face many challenging issues at the time of promoting and marketing. Most of the
organizations are reducing their productivity in marketplace. In this way, they face many
challenging issues by celebrities' endorsement such as it becoming exposed at that time of
marketing and promotions, the brand value should be affected because of dual shadows in front
of consumers.
In celebrities endorsement, there are many issues and challenges which are facing by the
companies for example if a celebrity makes sure and support the brand then it should be
complete by some extent, though these products not giving any results but it should harmful for
the purchasers. There are many problems raising in choosing this method, these are as follows:
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