Analyzing Celebrity Endorsement's Impact on Consumer Behavior

This dissertation investigates the impact of celebrity endorsement on consumer buying behavior within the UK fashion industry, focusing on Marks & Spencer (M&S). The study begins with an introduction outlining the background, aims, objectives, research questions, rationale, scope, and dissertation structure. It then delves into a comprehensive literature review, exploring the concept of celebrity endorsement and its influence on consumer behavior, supported by relevant articles and journals. The research methodology chapter details the research type, approach, philosophy, data collection methods, sampling, data analysis, and ethical considerations. Findings and analysis are presented in the results and discussion chapter, followed by a conclusion and recommendations for M&S on enhancing sales through celebrity endorsement. The study employs a structured questionnaire to collect data from 30 M&S customers, identifying factors impacting consumer buying intentions. The dissertation aims to understand the concept of celebrity endorsement, identify factors affecting consumer buying behavior in the UK fashion sector, assess the extent of celebrity endorsement's impact, and recommend effective strategies for M&S to improve sales. The research highlights the importance of celebrity endorsement in a competitive market and its potential to enhance brand image and financial growth.

Dissertation

ABSTRACT
The main aim of this study is to explore the impact of celebrity endorsement over the
consumer buying behaviour within fashion industry. This research study is focussed on
discovering the opinion of the UK customers about the celebrity endorsement through the way of
analysing the key concept behind the celebrity endorsement pertaining to the consumer buying
intentions. In this research, a review of the literature on the present topic is conducted which
provides a clear perspective on the relevance of the topic. The data has been collected from the
30 customers of M&S with the help of the structured questionnaire through which it has been
found out that there are various and differentiating factors which results in impacting the
consumers buying intention and behaviour in respect to the celebrity endorsement. Based on
which certain actions are recommended for effectively achieving the desired objectives through
celebrity endorsement and overcoming the challenges.

TABLE OF CONTENTS
ABSTRACT....................................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background............................................................................................................................1
1.2 Aims and objectives...............................................................................................................2
1.3 Research Questions................................................................................................................2
1.4 Rationale................................................................................................................................2
1.5 Scope and Significance..........................................................................................................3
Problem statement of research.....................................................................................................3
1.6 Dissertation structure.............................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Introduction............................................................................................................................6
2.2 Concept of celebrity endorsement.........................................................................................6
2.3 Factor having influence on the consumer buying behaviour within fashion industry...........8
2.4 Extent of celebrity endorsement on influencing customer buying behaviour.....................10
2.5 Conclusion...........................................................................................................................13
CHAPTER- 3 RESEARCH METHODOLOGY...........................................................................14
3.1 Introduction..........................................................................................................................14
3.2 Research Type.....................................................................................................................14
3.3 Research Approach..............................................................................................................14
3.4 Research Philosophy............................................................................................................15
3.5 Data Collection....................................................................................................................15
3.6 Sampling..............................................................................................................................15
3.7 Data Analysis.......................................................................................................................16
3.8 Reliability and validity........................................................................................................16
3.9 Research limitation..............................................................................................................16
3.10 Ethical consideration.........................................................................................................17
3.11 Chapter Summary..............................................................................................................17
CHAPTER 4: RESULT AND DISCUSSION...............................................................................18
4.1 Introduction..........................................................................................................................18

4.2. Findings and Analysis.........................................................................................................18
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................32
5.1 Introduction..........................................................................................................................32
5.2 Realisation of Research Aim and Objectives......................................................................32
5.3 Conclusion...........................................................................................................................32
5.4 Problems/Limitations...........................................................................................................33
5.5 Recommendations................................................................................................................33
REFERENCES..............................................................................................................................35
APPENDIX....................................................................................................................................38
Questionnaire\............................................................................................................................38
Research Ethics Checklist – Undergraduate Students...................................................................39

Title: To analyse the impact of celebrity endorsement on consumer buying behaviour in UK
fashion sector. A study on Marks & Spencer
CHAPTER 1: INTRODUCTION
1.1 Background
In the modern days, it is considered to be crucial for carrying out celebrity endorsement
for the purpose of promoting the products and services. The celebrity endorsement accounts for
the marketing strategy whose main aim is to use one or more celebrities in order to advertise a
specific product or service. There is rise in implementation of celebrity endorsement in regard to
the promotion of the product and services of the organization (Priyankara and et.al., 2017). The
primary objective pertaining to the use of this strategy is to reach the greater audience which is
represented by the celebrity's fan base. In the similar way, the present study assists in getting an
understanding about the celebrity endorsement as the marketing strategy. It is the concept in
which the firm coordinates with the factors having potential to impact the consumers purchase
decision. This results into enhancing the brand name and positioning of the company in the
market. Thus, with the help of celebrity endorsement the organization can increase its revenue
and attract large group of customers towards it.
In this study, Marks and Spencer Group plc (M&S) is taken as an organization which is a
major British MNC in fashion and retail industry. The company was founded in the year 1884
by Michael Marks and Thomas Spencer (ABOUT US. 2021). The company is headquartered in
London, UK. As of now, the organization is having approximately 959 stores all across UK out
of which 615 stores only sell food products. The revenue of the company in 2020 was £10,181.9
mn with number of employees to be 80,000. It operates in the food, clothing and home products
line where specialized products pertaining to high quality are sold to its target market. Over the
recent years it has been spreading its business across various geographical boundaries where
they capitalize on the availability of the resources or the cheap labour. It has adopted aggressive
marketing strategies that are used to establish and positively publicize its brand image which
ultimately boosts the profitability of the company.
The present research uses both primary and secondary data collection methods for the
purpose of generating valid results which helps in meeting with the stated aim and objectives.
Along with that, with the help research approaches, the researcher tries to present the research
study in an effective and efficient way which helps in answering the research questions.
1

1.2 Aims and objectives
Aim:
The aim of the study is to analyse the impact of celebrity endorsement on customer
buying behaviour with regard to M&S.
Objectives:
 To understand the concept of celebrity endorsement.
 To identify factors that impact consumer buying behaviour within UK fashion sector.
 To assess the extent to which celebrity endorsement affects buying behaviour of M&S
customers.
 To recommend effectual strategies to M&S regarding sales enhancement through
celebrity endorsement.
1.3 Research Questions
1. What do you understand by celebrity endorsement?
2. What are the factors having impact over the consumer buying behaviour in UK fashion
sector?
3. What is the extent to which celebrity endorsement affects the buying behaviour of
customers?
4. What are the various strategies through which the organization can enhance its sales
through celebrity endorsement?
1.4 Rationale
The rationale behind the selection of this topic is that there has been increase in
competition in the UK fashion industry and in order to grab the large audience, the use of
celebrity endorsement as the marketing strategy is highly used. With the implementation of this
strategy will result into effectively building up the positive brand image of the company. This
will result into enhancement in the financial growth and performance of the company.
Therefore, study on this topic will help in effectively analysing the relevance of celebrity
endorsement to the company along with the factor impact the effectiveness of it pertaining
consumer buying behaviour. Apart from this, to maintaining the long-lasting brand image in the
mind of consumers, it becomes essential for the firm to introduce an attractive marketing method
which in turn leads to increasing the profits of the company. In the current era with the increase
in the level of competition the celebrity endorsements prove to be essential for the company to
2

attract larger proportion of the market share and thereby boost their profitability through
competitive advantage. Also, with the changing taste and preferences and to introduce new
products in the new market, the company needs aggressive marketing strategies which derive
brand equity by the corresponding image of the celebrity. With the evolution of the celebrity
culture, the research problem becomes highly impactful for the businesses and their future
growth prospects. They can incorporate the significance of the celebrity endorsement in their
marketing plan to achieve brand value in the market.
1.5 Scope and Significance
This study is having wider scope as it will help the other researchers who are carrying
out the similar research in a far better way with more reliable and accurate outcome. The past
researches can prove to be a source of secondary data that the current scholar can refer and
derive the findings and conclusion in respect of the research problem. This data can be helpful in
conducting the investigation timely and efficiently within the prescribed budget constraints. In
addition to this, it will help the companies within the fashion industry to consider the use of
celebrity endorsement in their marketing and promotional activities and how it influences the
customer buying behaviour. The competitors within the industry can refer to the study and apply
similar marketing strategies to realize the effect of such celebrity endorsement on the revenues
and growth of the company. This shall also help them generate the edge over competitors in the
fashion business. Along with that, the study is based M&S so it examines the factors which in
turn affect the operations while implementing celebrity endorsement and identify the solution for
enhancing the sales. Thus, the relevance of conducting the study on this topic clearly reflects the
effect of celebrity endorsement upon customers.
Problem statement of research
The current study involves the research problem related to the impact of celebrity
endorsement on the customer buying behaviour of Mark and Spencer Company. The solving of
the problem shall be suggesting regarding the extent of profitability and future growth prospects
that the company is able to derive through involving celebrities in the marketing plan. The
investigations are based on the major determinants or the factors that are responsible for the
influence that is caused on the consumer buying behaviour. It has been analysed by the
responses of the various customers regarding the major drivers to the performance of the
company and further the effective strategies that must be applied in order to gain benefit from
3

the celebrities who are the brand ambassador of the company. The findings that are derived from
the research problem shall be used for proving the hypothesis and concluding the study.
1.6 Dissertation structure
Chapter 1: Introduction
This is the first chapter which incorporates an overview of the study and along with this,
it highlights the aim, objectives and the research questions pertaining to the study which is to be
addressed by the scholar in the research. It includes the statement of problem that is to be solved
by addressing the various research questions. In addition to this, the researcher also states the
rationale behind this topic and scope and significance of the same.
Chapter 2: Literature review
The literature review is the second chapter which is the most important part in research
as in this the researcher critically evaluates the topic by taking into consideration books, articles,
and journals. In this research is done on secondary basis in which the resources already
published by the other researchers are utilized for answering the research questions. The past
studies assist the researcher in deriving the findings and conclusion to the research problems
with maximum accuracy and reliability of data.
Chapter 3: Research Methodology
This chapter describes the research methods and approaches which is being used by the
research for the purpose of effectively and accurately conducting the study. This results into
answering the problem in a better way. It shall determine the method which is used for analysing
the data and drawing conclusions from it.
Chapter 4: Result and discussion
Under this chapter, the data derived through the primary research is collected and
analysed. It involves graphical or tabular representation of the responses or outcomes for clearly
depicting the end results. Also, findings are supported by literature review for providing accurate
results based upon which the conclusion is drawn.
Chapter 5: Conclusion & Recommendations
This is the final chapter of dissertation which provides a summary of the end result or
outcome which is being derived from that and help stated about whether the stated aim and
objectives is being achieved or not. Along with that, it defines the various strategies or the ways
4

which can be implemented by the organization in order to enhance its sales and increase its
profits.
5

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature Review (LR) mainly refers to the comprehensive analysis and summary of the
researches which is already being carried out by the other researcher in respect to the specific
topic. It provides an understanding and knowledge to the current knowledge base through the
way of identifying the theories and approaches which will help in effectively meeting with the
gaps in the research. In the same way, this chapter will provide in-depth understanding about the
topic celebrity endorsement and its factors in respect to consumer buying behaviour. For doing
this, relevant articles, journals and books are being evaluated which helps in effectively meeting
up with the defined aims and objectives.
2.2 Concept of celebrity endorsement
According to Osei-Frimpong, Donkor and Owusu-Frimpong (2019) celebrity
endorsement basically refers to the marketing or promotional campaign used by the companies
for the purpose of promoting its products and services which involves the celebrities or the well-
known personality. This form of marketing strategy is used with the hope that the positive image
of the celebrity endorsers will be passed on to the products and services or the brand image
associated with the celebrities. Author further added that the just merely selecting the celebrity is
not enough as it might lead to negative impact if the selected celebrity fails to connect with the
target audience. As per the view of Adam and Hussain (2017) there are key determinants in
regard to the celebrity endorsement like credibility which refers to the extent to which audience
sees the endorser as having relevant knowledge for giving unbiased and objective information.
Next important factor is the trustworthiness which accounts for the honesty and integrity of an
endorser. This is the most important source of credibility and if the consumer likes the celebrity,
then they will automatically start trusting a celebrity.
In addition to this, celebrity attractiveness and similarity is the other key determinant in
regard to celebrity. According to Khalid and Yasmeen (2019) this determinant states that the
attractive endorser will result into having attractive impact over the endorsement. This is an
essential element for grabbing the attention of the target audience in certain ways like physical
appearance, lifestyle, competence and so forth. The endorser who is having attractiveness has a
higher chance of enhancing the memorability of the associated brand. In other hand, similarity
means the resemblance among the endorser and the target audience. If the consumer finds
6

themselves with the respected celebrity endorser like having common interest, then a better
cohesive is developed. This is the reason why celebrities are being selected based upon their
characteristics. Author further emphasized that the selection of right and appropriate celebrity is
a huge task which helps in determining the whether the celebrity endorsement will be successful
or not. As per EBHOTE and ODIA (2019) this is the considered to an effective method for
drawing the attention of the larger group of people towards the respected product. Author also
added that although the perception of the consumer which involves price, quality and value are
the essential determinants of their shopping behaviour along with the choice of the product. The
research in this context lead to the development of the model called the persuasive hierarchy
model which predicts the opposite. As per this model, if the promotion is being done for
increasing the sales then it must inform and then persuade the consumers. The pattern based on
which this model is being developed is the consumer buying intention which is highly affected
by the advertisements.
Rabia and et.al. (2019) states that the celebrity endorsements that are undertaken by the
company for marketing, its product and services are very significant for developing its brand
image and positively publicizing the value to its customers. One of the major significance of
endorsing the brand through a well-known celebrity is that the company can target a new or
niche market. A celebrity which is familiar to the potential target market of the company can be
made the brand ambassador which shall impact the buying behaviour of the customers. If the
celebrity and their image are relative to the product or service then the customers shall be
attracted and expand the market share of the company. On the contrary Deepa and Giridhar
(2019) believes that such celebrity endorsement impose huge costs for the company which can
lower down the efficiency and profitability of the business. A well- known personality shall be
charging the costs based on the reputation and the image they carry which can prove expensive
for the company. Also, many a time such celebrities who are selected by the company for
promoting their brand can be a misfit which can spoil the reputation of the company. Hung
(2020) analyses that in the recent time the celebrity culture and their power are on boom. They
carry an immense social capital with them which can be capitalized for generating the brand
equity of the company. These celebrities are the trendsetters and some of their followers blindly
follow the taste and preferences of these famous people. They are successful in leaving an
7

impact on the minds of the people and they remember the brand associating with the celebrity
who endorsed it.
2.3 Factor having influence on the consumer buying behaviour within fashion industry
As per the opinion of the Khan and et.al. (2016) the consumer buying behaviour in the
fashion industry is highly volatile and changes frequently with the changing market conditions.
There are several factors that affect the buying decision of the customers which are to be
capitalized upon in order to generate sales for the company. One of the most dominating factors
are the changing market trends. With the change in the trend of fashion sense the company and
customer both adapt as per the changed market. On the contrary Wiederhold and Martinez
(2018) believes that the trends are established by the tastes and preferences of the consumer. So
it can be said that customer influences the trend of the market which as a result can be seen in
their purchasing pattern. Cham and et.al. (2018) evaluated that the branding of the company
must be positively placed in the minds of the potential customers. This positive publicity shall
influence the choice and buying decision of the customer. If the brand image in terms of quality
and money value is positively delivered then it shall be major factor reflecting in the buying
decision of the buyers.
Ertemel and Ammoura (2016) stated that customer tastes and preferences are the major
drivers of the buying decision that is undertaken by the customer. The company must ensure that
it delivers the goods and services as per the taste and preference of the buyer. This shall ensure
capturing of target market for the company and boost its profitability and future growth
prospects in the business. Kong and et.al. (2016) against the opinion specified that the changing
taste and preferences of the customer is due to competitors move of offering varied products and
services in the market. In order to survive in the market the company has to develop competitive
advantage in the market and capture wider market share to ascertain its growth. Cham and et.al.
(2018) presented that demographic factors in the population like the age, gender, race, caste,
religion etc. are some crucial factors that impact the choice and decision of the buyers in the
market. The fashion industry stays highly affected by the culture and background of the potential
customers. The system is valued as is followed by an individual in the major determinant of the
fashion preferences.
According to the Nam, Dong and Lee (2017) what matters the most for the customers of
any brand is that they should derive the value for the money paid to acquire a particular product
8