Does Celebrity endorsement affect consumers buying wants and needs?

by

Larissa Werbiuk

Table of Contents

1.0 Acknowledgment and Declaration................................................................................3

2.0 Abstract........................................................................................................................4

3.0 Introduction.................................................................................................................5

4.0 Literature Review.........................................................................................................64.1 Article 1................................................................................................................................64.2 Article 2................................................................................................................................74.3 Article 3................................................................................................................................84.4 Article 4................................................................................................................................94.5 Article 5..............................................................................................................................10

5.0 Methodology..............................................................................................................115.1 Research Methods..............................................................................................................125.2 Interviews...........................................................................................................................12

6.0 Results........................................................................................................................146.1 Question 1..........................................................................................................................146.2 Question 2..........................................................................................................................156.3 Question 3..........................................................................................................................166.4 Question 4..........................................................................................................................176.5 Question 5..........................................................................................................................186.6 Question 6..........................................................................................................................196.7 Question 7..........................................................................................................................206.8 Question 8..........................................................................................................................216.9 Question 9..........................................................................................................................226.10 Question 10.......................................................................................................................23

7.0 Interviews...................................................................................................................247.1 Interview 1..........................................................................................................................247.2 Analysis for subject 1..........................................................................................................267.3 Interview 2..........................................................................................................................277.4 Analysis for subject 2..........................................................................................................29

8.0 Discussion...................................................................................................................30

9.0 Conclusion..................................................................................................................33

10.0 References/Bibliography..........................................................................................34

11.0 Appendices...............................................................................................................35

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1.0 Acknowledgment and DeclarationI would like to acknowledge all 34 participants of my primary research surveys, my fellow classmates, friends and family for their continuing support and motivation. I am also eternally grateful to all the teachers that have taught and guided me across my two years education at RMIT University. Their dedication to my education, and me has allowed me to follow my dream of becoming a PR practitioner. In particular, I would like to acknowledge my tutor throughout this thesis, Alain Grossbard, for his continuing support and above and beyond efforts for helping me and my classmates reach our full potentials.

A huge thank-you goes out to Maria Vamvakinou, Federal MP, and those working in her office. They have taught and guided me throughout my internship and gave me opportunities and experiences I will forever remember.

I declare that all work created and words used in this document are my own and have not been submitted in any other form for another degree or diploma at any university or other institute of tertiary education.

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2.0 AbstractThe aim of this thesis was to gain deeper knowledge and draw conclusions about the topic “Does celebrity endorsement effect a consumers buying wants or needs”.

While researching the topic many conclusions were brought up such as consumers aren’t particularly influenced by advertising of celebrity endorsement unless it is a celebrity they admire, respect or like. Evan if there is an advertisement on a celebrity they do treasure, consumers will still not rush to purchase that product. If they do not like the celebrity that is representing the product than most consumers will not go out of the way to purchase those products unless they ultimately need them.

The research methods used were written surveys and personal interviews. The surveys were both online and a printed form, submitted to 34 participants, male and female with a range of ages from 16 to 60. The 2 person interviews were with Nicole De Luca (21) and Phillip Mitrov (21).

The research was also supported by an on-line literature review. The literature review helped form a general understanding of the topic and an idea of what the larger public and consumers generally feel about celebrity endorsement of a brand and product. Most articles concluded to varying degrees that celebrity endorsement does encourage a consumer to buy a product, but that it depends on the celebrity and their image to the public.

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3.0 IntroductionThis thesis identifies, interprets and evaluates whether celebrity endorsement affects consumers buying wants and needs. The original aim was to discover weather celebrity endorsement really does affect a consumer mind in purchasing a celebrity endorsed product over a non-celebrity endorsed product. The original hypothesis was that a main proportion of those surveyed would prefer a celebrity-endorsed product over a non-celebrity endorsed product.

The main question that were needed to be answered to help with the discussion were:

1. Does celebrity endorsement influence a consumer to buy a celebrity-endorsed product over a non-celebrity endorsed product.

2. Does it matter what celebrity is representing a product.3. Could a certain celebrity representing a product discourage a consumer to not

purchase the product represented by that celebrity.

By having these questions answered it would impact the results of the discussion and the over conclusion of this topic as well as answering it.

The primary research would be conducted in two ways:

Online surveys of 34 participants 2 One-on-one interviews

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4.0 Literature Review

4.1 Article 1.Carolyn Tripp, Thomas D. Jensen and Les Carlson. The Effects of Multiple Product Endorsements by Celebrities on Consumers' Attitudes and Intentions, Page 536 of 535-547, Journal of Consumer Research © 1994, viewed 31 July 2013, http://www.jstor.org/stable/2489757?seq=2

The authors believe that celebrity endorsement works, depending on the celebrity and their image to the public. If a celebrity is trustworthy, has a good appearance and is perceived in a positive manner, then their endorsement will have a positive effect in selling the product, as compared to celebrities perceived negatively. However, this positive effect will be watered down if a celebrity is seen to be endorsing too many products, with no ‘loyalty’ to any particular one. Studies have also shown that people will usually not know about a brand without some form of advertising. If that advertising involves the use of a celebrity, consumers will often remember the celebrity and their qualities rather than the brand. As such the ‘expertise’ or relevance’ and trustworthiness of the celebrity will affect attitude change and product evaluations. Consumers may then transpose their feelings or thoughts about the celebrity onto the brand. This is a double-edged sword, as negative responses can just as easily be associated with the product, which is why it is so important to choose the right celebrity for any given product.

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4.2 Article 2.Grant McCracken. Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process, Page 310 of 310-321, Journal of Consumer Research © 1989, http://www.jstor.org/stable/2489512

The author claims that celebrity endorsement is the modern way of marketing. If a celebrity is not smart in how they model and represent the brand, then it impacts negatively on the brand. Celebrities that enjoy being in the public eye and recognition, usually succeed better in celerity endorsement. By endorsing a product the celebrity is implying that they use this product and the consumer should use this product to be like a celebrity.

Celebrities may have some type of involvement in the manufacture and branding of a product, or no involvement at all except for representation. Some do not even use the product. However, Hoveland and Weis 1951-52 state that the effectiveness of a message depends on trustworthiness and expertness. Hence it is important to consider whether the celebrity is persuasive enough for the product.

The McGuire models depend on the familiarity, likability and similarity of the celebrity since celebrities owe some of their success from these characteristics. Celebrities can represent a product with little in depth knowledge about it or how it fundamentally works. This leads to the idea that the effectiveness of the celebrity endorsement has more to do with the celebrity than the product itself. It is therefore paramount to choose the right personality for the right product. Bill Cosby failed to endorse E.F Hutton but succeeded in Coca Cola and Kodak. John Houseman failed for McDonalds but succeeded for Smith Barney.

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4.3 Article 3.Barbara A. Lafferty, Ronald E. Goldsmith. Corporate Credibility’s Role in Consumers’ Attitudes and Purchase Intentions When a High versus a Low Credibility Endorser Is Used in the Ad, FLORIDA STATE UNIVERSITY, Tallahassee, Florida USA, http://www.sciencedirect.com/science/article/pii/S0148296398000022

This article states that celebrity endorsement is the biggest way to sell a brand. But it also comes down to corporate credibility and the reputation of the firm. One hundred women students were shown one of four mock magazine ads and were told to pick there favorites. The results show that both the attitude toward the brand and the attitude toward the celebrity were of significant importance. However it also showed that corporate credibility is important and could affect whether a consumer purchases the product. Endorser credibility has a greater influence on attitude-toward-the-ad; corporate credibility has a greater influence on attitude-toward-the-brand and on purchase intentions. More credible sources also influence behavior and positive attitudes towards the brands, as source credibility seems to impact attractiveness.

Goldberg and Hartwick, 1990 upholds the importance of the image of the company that produces the product. If the company has a bad image, consumers will not purchase regardless of which celebrity is endorsing it, as they can associate the celebrity with the negative aspects of the company. If a spokesperson knows the brands and perceives to be confident and assuring about the product, than it is more likely to sell well, as once again trustworthiness is created. Companies also who have a positive name to their brand are able to hold a positive look on their ads from people which also influences consumers to buying more.

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4.4 Article 4Kevin Lane Keller. Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, Page 1 of 1-22, Journal of Marketing © 1993 American Marketing Association, http://www.jstor.org/stable/1252054

This article dealt with the subject of celebrity endorsement of a ‘brand’, not just a product. This marketing technique can be used for a variety of purposes such as: increasing profits, during a merger, acquisition or divestiture. A brand’s value can be greatly increased with a successful celebrity endorsement campaign, as the celebrity’s on qualities are ‘adding value’ to the brand and impacting on consumer’s views of the brand.

How successful the celebrity endorsement will be depends on the marketing field and strategies. Different marketing fields and groups will need different celebrities which is why picking a celebrity is so important. Just some of the considerations include the celebrities age, gender, projected personality and what they are a celebrity for.

A company’s success is also determined by their marketing strategies. For a long term effect and benefit, more sophisticated marketing strategies are implemented with a life span of many years. This ‘longevity’ of a marketing plan, makes it even more important to pick the right celebrity whose image will remain effective during the whole long term campaign. Hence, if a company chooses a well respected and suited celebrity as a ‘figure head’ the product will sell better and for longer. This obviously represents a long-term investment in the celebrity, which would be expensive and detrimental to change if the choice was wrong.

The authors also state that brand awareness is subdivided to two parts; brand awareness and brand image. By fully understanding each framework - the brand and product alongside with it - it is easier to select a celebrity.

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4.5 Article 5Jagdish Agrawal and Wagner A. Kamakura. The Economic Worth of Celebrity Endorsers: An Event Study Analysis, Page 56 of 56-62, Journal of Marketing © 1995 American Marketing Association, http://www.jstor.org/stable/1252119

In this article we learn that celebrity endorsement is big business in America, with approximately 20% of all television ads featuring a celebrity and 10% of television advertising funds used on celebrity endorsement. Furthermore demand for this form of marketing is continually growing. It is believed that celebrities make products believable and enhance message recall. The technique can also help create a bigger brand name by having a celebrity image placed side by side with the brand. This can also give brands a more positive image; depending on the celebrity and marketing strategy. The authors explain that part of the impact and influence on consumers is due to their desire to ‘associate with and be like’ the celebrity.

Celebrity endorsement is, however, extremely expensive. Celebrities typically work by contract, although some also have a split of the profit from the products sold. Companies therefore have to build major marketing campaigns and advertising in order to make it worth the financial outlays.

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5.0 MethodologyThe aim of the research was to discover and gain further knowledge on whether celebrity endorsement does encourage or affect a consumer’s buying wants and needs. There was a good body of literature and information on the subject, but mostly from the 1990’s when celebrity endorsement was starting to become increasingly popular. It would have been interesting if there was more research done in the 21’st century, to reflect societal changes and in particular to perceptions of ‘body’ and ‘image’.

5.1 Research MethodsOnline Survey –The researcher used Survey Monkey as this site is easy to use, free and can be promoted on social media such as Facebook. Participants either filled in the survey on Facebook, or a printed out version. A total of 34 people participated in the survey. Participants were asked a variety of questions including their name; age; thoughts and views on celebrity endorsement; if celebrity endorsement effects how they feel and if a celebrity’s image can turn consumers off from purchasing products represented by the celebrity. The participants were asked their age and gender in order to see whether different age brackets/gender were influenced to a greater degree by celebrity endorsements. The survey contained 10 questions, each of which had an option from 3 different answers.

The limitations of using this research were possible uneven results due to the small sample size. The researcher would have liked to gather more feedback from participants in a wider variety of age groups; as most participants were in the same age group and found to have similar views and opinions. The same applies to the fact that most participants came from similar socio-economic and ethnic backgrounds as well as their geographical location. A larger and more diverse spread of participants could possible have produced more meaningful results A future research project involving participants from different countries could also yield interesting insights.

It was also difficult to gather much feedback, as users didn’t want to spare personal time in completing the survey when they had nothing to gain.

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5.2 InterviewsA total of two people were interviewed. One was Nicole De Luca, aged 21, who is a fellow student also completing the Advanced Diploma in Public Relations. The second was Phillip Mitrov, a 21-year-old cabinetmaker. The reason these two people were selected for the interview was because they appeared to have many of the typical qualities of youth of their age; and also their accessibility to complete the interview. The two participants were asked the same ‘base’, questions as in the survey, followed by several other more in-depth questions to gain greater insight on the subjects.

The limitations of this method are that both participants are the same age and brought up in the same decade and will therefore be exposed to similar influences in regard to celebrities and genres. This could be compounded by them also being in the ‘teen’ age group where celebrity endorsement if pushed the most. Hence their responses may be quite similar. Another limitation could also be that a sampling population of ‘2’ does not allow for a wide and diverse representation of views. A greater spread of information would have been gathered had more of the initial respondents also had the ‘in-depth’ interviews.

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6.0 ResultsThe instrument I used to collect my data were surveys and 2-person interviews. The 34 people surveyed consisted of work colleagues, friends and family of both sexes. This is the data I collected:

6.1 Question 1Do you often purchase brand products represented by celebrities?

82% of participants seemed to like celebrity brands either a lot, or some of the time, compared to only 24% who claimed not to purchase celebrity endorsed products.

Pie 1.

Yes

No

Sometimes

Table 1.

Voting option Responses Percentage

Yes 14 41%

No 8 24%

Sometimes 14 41%

As we can see from the results many people do purchase brand products from celebrities; with an even score of 14 participants voting ‘yes’ and ‘sometimes’. This is well over half of participants with 41% for each of the two. Participants obviously show that they are aware of celebrities and their products and do purchase their products. This question is important to the questionnaire as it helps the participants identify their own buying habits in relation to celebrity-endorsed products. This then gives them a ‘stand point’ from which to answer the other questions. However, the researcher recognises that these results are a consequence of their being just so many celebrity-endorsed products on the market that it would be difficult not to ever buy any.

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6.2 Question 2Does a celebrity influence what brand you buy in an item?

Participants seem to be unsure, possibly, depending on the brand, celebrity and what the celebrity is representing; or in fact how much they actually ‘need’ the product regardless of any endorsements.

Pie 2.

Yes

No

Sometimes

Table 2.

Voting option Responses Percentage

Yes 4 12%

No 8 24%

Sometimes 12 64%

The majority result was 12 responses (64%) to sometimes being influenced by celebrity endorsement with what brand they buy. A further 4 responses (12%) do get influenced with what brand they buy from celebrities and 8 responses (24%) do not get influenced at all. Once again this does show participants are aware of what brands they are purchasing as well as what celebrities represent each brand. Participants don’t seem that influenced or affected by the celebrities from what these results do show, with them either being sometimes influenced or not at all. As stated in question 1, maybe participants are just purchasing brands and products that they need and celebrities representing the brands just happen to fall under that category of what the participants purchase.

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6.3 Question 3Do you prefer to purchase celebrity endorsed products over non-celebrity endorsed products?

Only a small percentage of participants would definitely seek out a celebrity endorsed product. The majority seem to be unsure whether they consciously choose a celebrity or non- celebrity endorsed brands. A large percentage does however; definitely state that they do prefer a product due to a celebrity endorsement.

Pie 3.

Yes

No

Sometimes

Table 3.

Voting option Responses Percentage

Yes 3 9%

No 15 44%

Sometimes 16 47%

As the results show participants only sometimes prefer to purchase celebrity endorsed products over non-celebrity endorsed products with 16 participants stating yes (47%) and 15 (44%) participants saying no they don’t prefer it. A low percentage of only 9% (3-yes responses) show that people do prefer celebrity endorsed products. This is an unexpected result judging from the amount of responses in question one that state people do purchase celebrity endorsed products; whereas what we can see here is that participants prefer not to purchase celebrity endorsed products. Only 3 participants would actually prefer these products, which possibly reflects that they are more in the media’s eye and caring about celebrities and image and hence notice celebrities more. It would be good to find out why people wouldn’t want to purchase celebrity endorsed products over non-celebrity endorsed products. With 16 responses also saying ‘sometimes’ it shows that participants don’t really mind or bother about celebrity endorsement and the celebrity. Could it just be the fact of someone endorsing something in general that could make participants not bother about celebrity-endorsed products? That would be good to consider.

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6.4 Question 4Is a celebrity-endorsed brand more appealing than a non-celebrity endorsed brand?

Participants seem to think that celebrities don’t truly matter when buying a product and just because a celebrity is representing it doesn’t mean that they will buy it.

Pie 4.

Yes

No

Sometimes

Table 4.

Voting option Responses Percentage

Yes 6 18%

No 21 62%

Sometimes 7 20%

As the results show a majority of participants 21 (62%) stated that ‘no’ celebrity endorsed brand aren’t more appealing than non-celebrity endorsed brands. This shows that participants don’t prefer, or so much as go out of their way to look for and seek celebrity endorsed brands. This could mean that maybe celebrity endorsed brands and products don’t really pay off in the long run anyway, as both types mainly look the same to participants. Only 7 participants responded with sometimes it is more appealing. This could also be due to the range of products represented by the celebrities as some categories could be more suited to celebrity endorsement e.g. perfume, clothing. A low 6 (18%) of participants actually found celebrity endorsed brands to be more appealing.

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6.5 Question 5Does it make you feel better when buying a celebrity-endorsed product?

Most participants don’t seem to bother with the emotional feelings and attachments to celebrity products. They see the product for what it is and it’s use for them and do not focus on the celebrity.

Pie 5.

Yes

No

Sometimes

Table 5.

Voting option Responses Percentage

Yes 5 15%

No 24 71%

Sometimes 5 15%

As gathered from the result, 5 (15%) participants believed that ‘yes’ buying a celebrity-endorsed product does make them feel better. The same amount of people claim that ‘sometimes’ it does make them feel better. The ‘sometimes’ results could be affected by the range of product being endorsed and by which celebrity. Certain products could be more likely to make consumers feel better, such as make-up or clothes rather than homes wear and outdoors products, as the consumer are wearing them and it is about their image. 24 (71%) people don’t feel better once purchasing a celebrity-endorsed product. This could be as they see the product only as a product and do not see why it should affect their mood. This is a large percentage, and possibly shows that marketing strategies have to understand between the differences between the products itself making the consumer feel better, as opposed to the celebrity associated with it.

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6.6 Question 6Does a celebrity representing the product influence how you feel when using the item?

Similar to question 5, most participants don’t seem to bother with the emotional feelings and attachments to celebrity products and see the product and its purpose as the products alone and not the celebrity. Participants seem to only think of the product alone and don’t like or want to think of themselves as the celebrity when using the product because in reality they are not.

Pie 6.

Yes

No

Sometimes

Table 6.

Voting option Responses Percentage

Yes 7 21%

No 22 65%

Sometimes 5 15%

7 (21%) of participants claimed that ‘yes’ using a celebrity-endorsed product does actually make them feel better when buying the product. This could be affected by who the celebrity is as overall out of the 34 participants, this is not that big a score. A further 5 (15%) of participants said ‘sometimes’ it makes them feel better and 22 (65%) of participants said ‘no’ it does not make them feel better. Gathered from these results it should make the researcher and companies consider if celebrity endorsement really pays off and if it really does sell the product overall. An interesting question, therefore, is If it doesn’t make the consumer feel better, as shown from the strong amount of participants stating ‘no’, then what does make the consumer want the celebrity endorsed product. This could be something interesting to look further into.

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6.7 Question 7Does it matter what celebrity is representing what brand or topic?

Most participants can be swayed to ‘some degree’ by which celebrity is used and if they truly don’t like the celebrity, it will turn them off the brand and they will go for a different celebrity endorsed product or a non-celebrity endorsed product.

Pie 7.

Yes

No

Sometimes

Table 7.

Voting option Responses Percentage

Yes 5 15%

No 15 44%

Sometimes 14 41%

5 (15%) participants claimed that ‘yes’ it does matter which celebrity is endorsing a particular product. These participants care about the celebrity and the ‘added value’ their endorsement brings to the product. It could be that they would not buy the product unless they had some sort of respect or likeness towards the celebrity. Conversely, if they don’t like the celebrity then they would not want to purchase the product. Hence, businesses should be careful when considering whom they get to endorse their product. 14 (41%) participants stated ‘sometimes’ their buying pattern would be influenced by the choice of celebrity. Of course, this does not give us any insight into the reasons they choose these answers. To gain this depth of understanding an interview would have been more suitable.

15 (44%) stated ‘no’ that they did not care about which celebrity was endorsing the product. This is a surprisingly large result and is probably a reflection of some of the answers to previous questions in that many consumers are not swayed by celebrity endorsement in the first place, so it makes little difference who that celebrity is.

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6.8 Question 8Could a celebrity influence you to not purchase the product/brand?

Interestingly, answers to this question show a stronger correlation to the choice of celebrity influencing consumers ‘not to buy’ a product, than the results of question 7 for ‘buying the product’.

Pie 8.

Yes

No

Sometimes

Table 8.

Voting option Responses Percentage

Yes 16 47%

No 9 26%

Sometimes 9 26%

A majority of participants 16 (47%) state that they may stop buying a product due to the ‘negative’ influence of a particular celebrity endorsing it. This is a big gap from ‘no’ and ‘sometimes’ which both received 9 (26%) responses.

This is an important result as it seems to indicate that choice is celebrity is very important but not so much to influence ‘buying a product’ but more for ‘not buying a product’. It shows that if consumers don’t like the celebrity, then they will not want to spend their money on endorsing and contributing to the celebrity’s wealth and image.

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6.9 Question 9If you see an advertisement of a product represented by a celebrity does it influence you to go out and purchase that product as soon as you can?

Participants don’t seem to be swayed or influenced from seeing an advertisement with a celebrity representing a product. Consumers seem to look at the product qualities and their need for the product.

Pie 9.

Yes

No

Sometimes

Table 9.

Voting option Responses Percentage

Yes 8 24%

No 21 62%

Sometimes 5 15%

The winning response for question no was ‘no’ with 21 (62%) responses. This shows that advertising with a celebrity does not encourage a consumer to go out and buy the product as soon as they can. It does come down to the celebrity and what they’re representing and who they are. Just because there is an advertisement it does not encourage a consumer to purchase that product. It could be good to look into what therefore sparks these consumers to be interested in the product.

8 (24%) people claimed ‘yes’ it does encourage them. These consumers do have an interest and are aware of the celebrity advertisement and once seeing that advertisement they want to grab the product the celebrity represents. 5 (15%) people claimed ‘sometimes’ it does affect and encourage them to purchase the product. It could be that these consumers are more concerned about being ‘seen with a particular brand’ rather than the product itself.

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6.10 Question 10Could a celebrity influence you to purchase the product/brand?

Participants don’t seem fussed about the celebrity and only interested in the product and what the product can offer them.

Pie 10.

Yes

No

Sometimes

Table 10.

Voting option Responses Percentage

Yes 13 38%

No 14 41%

Sometimes 7 21%

14 (41%) participants responded with ‘no’, that a celebrity does not actually influence them to purchase a product. However, just below on 13 (38%) responses participants said ‘yes’ it does impact and influence them to purchase the product. This is a close match, which possibly suggest that it varies from person to person depending on their cultural views, morals, age, and socio-economic background. Among other things that could influence why participants may or may not want to purchase the product are: who the celebrity is, their image, reputation, why they are a celebrity and what participants think about the celebrity. Again, in depth interviews would be necessary to gain more meaningful insights.

A low 7 (21%) participants said ‘sometimes’ it does influence them to purchase or not to purchase a product.

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7.0 Interviews

7.1 Interview 1Participant: Nicole De Luca Age: 21

Subject 1

Question one; do you often purchase brand products represented by celebrities?

Yes I do.

Question two, Does a celebrity, influence what brand you buy?

Yes it does because I feel the celebrities are representing a product than this product will be trust worthier because I feel a celebrity will be representing it.

Question three; do you prefer Celebrity endorsed products to non-celebrity endorsed products?

Well it depends what the product is, if it beauty related I would prefer to go towards more celebrity endorsed products whereas if its just an everyday product or something more than everyday like perfumes and that I wouldn’t care much.

Question four: Now is a celebrity-endorsed brand more appealing than a non-celebrity endorsed brand?

It is, especially who the celebrity is and whom they’re representing Nicole defiantly feels like it does.

Question five: Does it make you feel better buy a celebrity-endorsed product over a non- celebrity endorsed product?

Nicole feels like her money is well spent because she finds celebrities only truly back up products that are good, as it does come down to the celebrities name as well so they wont represent something that they don’t believe in and will make the celebrity look bad. This is most times as she trusts the celebrity which makes Nicole feel good about her purchase.

Question six: Does a celebrity representing the product influence how you feel when using the item?

Yeah it does make Nicole feel more like and closer to the celebrity from buying their product, she is buying it for a reason because the celebrity that is wearing the product Nicole likes and therefor would want to be similar and smelling like that celebrity.

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Question seven: If you don’t like the celebrity representing a product but yet you want the product will it influence you not to purchase that product?

Defiantly as Nicole believes that if she doesn’t like what the celebrity represents or stands for than she wont want to spend her hard earned money on the celebrity and product.

Question eight: Does it matter what celebrity is representing what brand or topic?

Yes Nicole feels like it does matter as she feels as a buyer- who the celebrity is representing their choice of representation of the products. It also influences Nicole’s decision on the product as she wont want to purchase and spend money on people who already have lots of money. Nicole also feels that celebrities have a mission and right to be a good role model and someone for people to look up to and if they are bad and not good role model they don’t deserve to have the extra income especially if its fake and she would not want to further encourage that at all.

Question nine: If you see an advertisement of a product represented by a celebrity does it influence you to go out and purchase that product as soon as you can?

Yes it does, I’m a fan of the celebrity and their products I will make sure I go out and get that product. E.g. the Beyoncé perfume its my favourite and I love Beyoncé so as soon as it came out Nicole went and purchased that because she seems Beyoncé as a good role model and person and wants to not only seem like her but also encourage Beyoncé in what she is doing.

Question ten: Could a celebrity influence you not to purchase the product/brand?

Yes Nicole thinks so as if the celebrity is not sincere and the celebrity is just doing it for money she will not be encouraged to buy that product as it turns her off the celebrity and brand and product. Nicole believes celebrity endorsement is very important for a company and gets the product more known and creates higher profit but it does come down to the celebrity they choose and what they represent if they choose a bad celebrity it could greatly damage the product and brand as well. If there backing up a product but their contradiction git e.g. Shane Warne who was endorsed by Nicorette and yet he was founding smoking, that looks bad for the business and contradicts his message but if they do care about the product than the product should sell very well.

Nicole voiced the opinion that she does like celebrity endorsement and purchasing celebrity endorsed products but she is wary and looks out for who represents and is endorsing the product as she wont buy products from celebrities she doesn’t like. Nicole believes also that the products the celebrities do endorse do represent a part of the celebrity and believes they wouldn’t represent a product that is bad as it would cripple and affect the celebrity’s image in a bad way than.

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7.2 Analysis for subject 1Subject 1 seems to not have much to say on purchasing celebrity endorsed brands although she does purchase the mind doesn’t ignore them. The subject feels as thought she does like brand that have celebrities representing a brand as the subject can trust the brand because the subject believes celebrities would not represent a brand that would have a bad impact on their name or that aren’t trustworthy as it would all come down to the celebrity and their image. Although it does all depend for the subject as for more beauty and cosmetics the subject prefers to purchase them more represented by a celebrity than standard clothes or home wear with the main reason only because the subject wouldn’t want anything special for everyday things.

Most importantly the subject emphasis that it does all come down to the celebrity if that celebrity has a bad name or image to themselves it will put the subject of purchasing those brands and products because the subject doesn’t want to contribute to their wealth as well as influencing to continue being who there bad image is. This is why if it has a good well grounded celebrity that the subject likes the subject will defiantly prefer to purchase the product they represent as the subject feels as though she is encouraging them as well as supporting their career, as the subject believes in it. This also links into the subjects answer to question five for when the subject does feels good when buying products represented by good celebrities the subject likes as the subject is contributing to something and someone good and feels as though the subjects money is going to someone good and not just spending money to whomever that already has more than they can spend. This is why overall if the subject was going to purchase something that is celebrity endorsed, the celebrity must be respected and liked by the subject or the subject would not even consider celebrity endorsed products.

Both subject 1 and 2 have similar thoughts and views with celebrity endorsement. Although subject 1 would go more out of the subjects way to purchase celebrity endorsed brands, the subjects both still believes that they need to respect the celebrity as well as like the celebrity who they are and what they represent in brands and in general as their career. Both subjects don’t want to hand over money to celebrities that already have enough money and that don’t commit themselves to their brand. From subject 1 being a female and subject 2 being a male it does show the different things the different sexes would purchase when involved in celebrity endorsement. As subject 1 would prefer to purchase more cosmetics and perfumes and subject 2 wanting to prefer to purchase more sporting brands and sporting celebrity products. This demonstrates the two different views of celebrity endorsement from both sexes.

The interviews were a good index of depth and analysis more over the surveys although the interviews overall spanned out similar to the surveys just more in depth.

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7.3 Interview 2.Participant: Phillip Mitrov Age: 21

Subject 2

Question one; do you often purchase brand products represented by celebrities?

Phillip doesn’t really buy much products that are represented by celebrities nor does he take much notice if her were to buy an item from a celebrity if he wants it he just usually gets it mostly.

Question two, Does a celebrity, influence what brand you buy?

Not really as Phillip usually purchases what he sees and wants, but if it was something to do with sport and his favourite sporting star he would purchase and has purchased item that the celebrity representing the item as he loves that celebrity.

Question three; do you prefer Celebrity endorsed products to non-celebrity endorsed products?

It doesn’t really matter to Phillip he doesn’t take much notice as he is not very caring about objects or cares much about looks about what he has and doesn’t have. If he wants something represented by a celebrity and he has been looking at that item for a while he will purchase it without much notice of the celebrity but he wont go out of his way to purchase a celebrity endorsed product really.

Question four: Now is a celebrity-endorsed brand more appealing than a non-celebrity endorsed brand?

Phillip doesn’t really take much notice to it at all. He would probably say less if anything because he doesn’t notice it.

Question five: Does it make you feel better to buy a celebrity-endorsed product over a non- celebrity endorsed product?

No because it is all the same to Phillip he doesn’t notice the celebrities much unless it’s his favourite sporting star. Evan if it is for a good cause that he donates to it may swing him a bit but it would be more interesting seeing what celebrity is representing the cause rather than donating just for the celebrity representing the charity.

Question six: Does a celebrity representing the product influence how you feel when using the item?

No, never why should it affect him he believes as were all human at the end of the day, unless they’re famous for being really good at something and has a talent Phillip doesn’t care about them.

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Question seven: If you don’t like the celebrity representing a product but yet you want the product will it influence you not to purchase that product?

Yes, if Phillip notices the celebrity as he doesn’t wan his money going to pay for someone who already has heaps of money, unless they have a major talent like his favourite soccer players than he wouldn’t car or be fazed at all by the celebrity because they are just another human being to him. But if its some celebrity Phil really hates than he defiantly wont buy the product due to the fact that he doesn’t think they deserve it or he wont want the product if it has that celebrity’s name to it.

Question eight: Does it matter what celebrity is representing what brand or topic?

Yes, if Phil were to notice as similar to the question above Phil wont want to spend money on a celebrity that is representing something and yet he hates the celebrity and what he stands for e.g. the Kardashian family, Phil believes they are talentless and have too much money for doing nothing and would purposely not purchase on of their products for him or anyone.

Question nine: If you see an advertisement of a product represented by a celebrity does it influence you to go out and purchase that product as soon as you can?

No, Not unless it’s Phil’s favourite soccer star who he adores and wants to contribute towards his future and talent. If tis not him Phil isn’t fazed and doesn’t care about them, especially if they don’t stand for what they represent.

Question ten: Could a celebrity influence you not to purchase the product/brand?

Yes, because Phil doesn’t want to purchase items that are representing by talentless celebrities especially when they don’t stand for what they represent or a bad role models as he doesn’t feel the deserve it. If they have talent he is more than willing to support them as he would his friends because he enjoys watching or viewing them. Phil believe celebrity endorsement can work on the person, and the celebrity if it’s a celebrity people hate than he thinks people wont want to purchase the items as you wouldn’t by something of someone you hate from school or work so why should he purchase something from a celebrity who has much more money and doesn’t know or care about him.

Phillip vary rarely does purchase celebrity endorsed products, although when he does he mainly purchases products endorsed by his favourite sporting stars as he feels that his money will be well spent on talented people rather than a celebrity that gets famous over no reasons e.g Kardashian family. Phillip doesn’t take much notice into celebrity endorsement at all but does believe that it does matter who is representing what product and also who they stand for and who they are as a person, which would effect if he would buy a product that is celebrity endorsed.

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7.4 Analysis for subject 2Subject 2 doesn’t usually look into celebrity-endorsed products nor purchases them. The only real excuse for the subject to purchase celebrity endorsed products is if their represented by sporting celebrities that the subject holds dear to his heart. The subject doesn’t really feel influenced by celebrities and what brands they endorse as if the subject likes an item the subject will most properly purchase it If the subject sees it is represented by a celebrity that the subject doesn’t like, depending on how much the subject likes the product will truly influence if the subject will go ahead and purchase the product or not. Due to the subject not really paying attention to celebrity-endorsed products the subject doesn’t feel influenced or good after buying their products as he sees all product the same. Unless it is a pair of sporting equipment or something represented by the subjects favourite sporting star than he will want to achieve and perform like those sporting celebrities.

If the subject did notice that a product was represented by a celebrity he didn’t like or agree with the subject would most likely be still turned of them depending on how much he doesn’t like them. This is due to the fact that the subject believes that the celebrity does not deserve the subject’s money and encouragement to what the celebrity is doing. This is also why if the subject sees an advertisement with the subjects favourite sporting star advertising something new the subject would be intrigued to at least look into the product or be aware of it to ask around about the product as the subject trusts the celebrity and what the celebrity represents.

Both subject 1 and 2 have similar thoughts and views with celebrity endorsement. Although subject 1 would go more out of the subjects way to purchase celebrity endorsed brands, the subjects both still believes that they need to respect the celebrity as well as like the celebrity who they are and what they represent in brands and in general as their career. Both subjects don’t want to hand over money to celebrities that already have enough money and that don’t commit themselves to their brand. From subject 1 being a female and subject 2 being a male it does show the different things the different sexes would purchase when involved in celebrity endorsement. As subject 1 would prefer to purchase more cosmetics and perfumes and subject 2 wanting to prefer to purchase more sporting brands and sporting celebrity products. This demonstrates the two different views of celebrity endorsement from both sexes.

The interviews were a good index of depth and analysis more over the surveys although the interviews overall spanned out similar to the surveys just more in depth.

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8.0 DiscussionThe hypothesis expected for this research was that a consumer would prefer to purchase a celebrity-endorsed product over a non celebrity endorsed product. Gathering from the results from the surveys and interviews, this hypothesis has been proven incorrect, which is surprising. The researcher first assumed that celebrity endorsement does affect consumers buying wants and needs; and also does influence consumers to purchase a celebrity endorsed product over a non-celebrity endorsed product. The reason for this hypotheses being chosen is that in the 21st centaury celebrities have, become idols in culture, religion, morals and fashion, especially to the younger generations. Celebrities are much more in the media’s eye and are able to promote themselves on social media sites, magazines and TV. Mobile phones and the Internet have also make it a lot easier to access and find things out about celebrities. From this it is a lot easier for celebrities to promote and advertise themselves, who they are and their products they endorse or own. Hence, based on these reasons for choosing the hypothesis, the results are even more surprising.

As shown by the results, overall most participants believe that it all depends on whom the celebrity is and what they represent, as to whether a person will choose a celebrity-endorsed product over a non-celebrity endorsed product. This is also what Hoveland and Weis 1951-52 state, “The effectiveness of a message depends on trustworthiness and expertness.”

Participants don’t seem to worry so much about the excitement of buying a celebrity endorsed product or that they must have of a product represented by a certain celebrity. Participants seem to think more about whom the celebrity actually is and if they like the celebrity. This actually ties in exactly with a statement from Carolyn Tripp, Thomas D. Jensen and Les Carlson 1994 that believe from their research that if a celebrity is trustworthy, has a good appearance and is perceived in a positive manner, then their endorsement will have a positive effect in selling the product, as compared to celebrities perceived negatively. Then depending if they have respect and an affinity for the celebrity, they may be influenced to purchase that product. For instance Nicole De Luca in interview 1 stated that she would not want to buy something from the Kardashian brand, as she believes they are famous for no reason at all. Furthermore. Nichole argues, why should she spend her hard earned money and support a celebrity that has too much money anyway and has received all their fame from only their looks.

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In terms of secondary research (literature review), this contributed immensely to the thesis topic because it covered the overall topic on celebrity endorsement and why consumers purchase celebrity endorsed products. But, just as important, it looks at what goes on in a consumer’s mind when thinking about purchasing a celebrity-endorsed product. However, all articles that have been found date to the 1980’ s-1990, as it appears there was not much research or articles published in the 21st centaury. Hence it was felt that some of this early research might not be wholly relevant to the present day, as technology, advertising and celebrities in general have changed immensely in the past 15-20years. This is due to many reasons, but in particular to the wide spread use of mobile phones, laptops, internet and social media, which make information so much more accessible to todays consumers compared to those of the 1980’s-1990’s. This technology also give the media much more power in both creating a good celebrity image or in tarnishing it by writing or ‘posting’ an item that has the potential to reach the whole world almost instantly. Although looking past these limitations in the literature review, it did help in giving a better insight on how consumers thought in the 80s and 90s compared to the 21st. It also helped to build a greater understanding of what was to be asked in the surveys and interviews.

The two one on one interviews helped a great deal in uncovering a more in depth analysis of the questions. Both participants had some similar views on celebrity endorsement but some radically different attitudes.

Participant one, Nicole De Luca, does like celebrity endorsement and does purchase certain items with celebrity endorsement, but does have to like and respect the celebrity. She feels good wearing the celebrity’s items and does like to collect her favourite celebrities products. But participant two, Phillip Mitrov, isn’t so fond of celebrity endorsement and only purchases sporting goods and clothes that are represented by his favourite sporting stars. Phillip Mitrov doesn’t believe in celebrity endorsement and is never influenced by it, or advertisements of the celebrities and their product. He believes that although your view of a product can be affected by a celebrity endorsement, overall the products are the same as a non-celebrity endorsed product. He also feels that if he does purchase a celebrity endorsed product, then his money is going towards the celebrities paycheques and self esteem – both of which they already have too much off in most cases. Both Nicole De Luca and Phillip Mitrov find that celebrity endorsement only truly works if celebrities know their product and represent it well, but ultimately it does come down to who the celebrity is and if they are respected by the public.

From these insights of the interview participants, the researcher was able to gather a greater depth of knowledge into why survey participants answered what they answered in certain questions.

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Regarding both the Literature Review and the Research Results; there are some limitations that have arisen. Firstly as mentioned and explained beforehand, most articles date back to 1980’s-1990’s. Secondary the articles talk and deal with a lot of hypothesised research models that explain why consumers react and are influenced in the way they are. This held very limited information to the researchers topic. The main point that can be compared in the Literature Review and Research Results, is the consistent answer to the question “could a celebrity influence you to not purchase the product/brand?” establishing the answer as yes.

Celebrity endorsement, especially in the 21st century, has become a major and increasingly popular marketing tool. , Whether inner city or suburbs are celebrity endorsed averts for a wide range of products, from clothing to home ware, cosmetics to electrical. This makes it more surprising that celebrity endorsement doesn’t necessarily work and pay off. From the research results it is obvious that the right celebrity has to be picked for the right product in order to influence the correct target market. If the public does not like the celebrity, than as suggested from the survey and interview results, the product has less chance of selling, as consumers do not want to further influence of this particular celebrity and their career. This is why it is extremely important for businesses, when selecting a celebrity to represent their product, to select careful after getting an excellent understanding of who their target market is and whether the celebrity would have credibility with this market. If the wrong celebrity is selected, it could impact on sales greatly, as consumers would transfer the negative thoughts toward the celebrity onto the product. This is also bourn out by Carolyn Tripp, Thomas D. Jensen and Les Carlson 1994, who believe success is dependant on the celebrity and their image to the public. The same thoughts are echoed by Hoveland and Weis 1951-52, who state that if the celebrity does not use the product, it shows the celebrity has no respect or belief in the product, so why should consumer purchase it.

The main important points drawn from the research are as follows:

- Celebrity endorsement on its own rarely influences consumers to purchase products.- Celebrity endorsement only truly works if the celebrity uses, suits and can work well with

the product- Consumers do not necessarily prefer celebrity-endorsed products over non celebrity

endorsed products, but rather the best appropriate product for the consumer.- Celebrity endorsement cannot work well unless the celebrity is representing a product

similar to their celebrity status.- Most importantly celebrity endorsement only truly works if the celebrity is respected, liked

and wanted the public

These points are taken from both the research question answers and the literature review articles, which tie in with each other.

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As mentioned, the limitations of the primary research are the possibility of bias results, as most participants where of similar age, social groups and influence resulting in similar opinions.

In terms of literature research, again there was little information provided on whether celebrity endorsement affects consumers buying wants and needs. If this topic had been explored further, or more recently with more recent studies, this would have helped and affected the thesis, with possible different results emerging.

If the research where to be conducted again, it would be suggested that the time frame be increased, a variety of research methods used and a more diverse group of participants chosen in both age and social backgrounds. In this way different views, such as those of the ‘older generation’ could be obtained. This would be interesting as it is the ‘older generation’ that were the consumers in the 80s and 90s when this method of marketing first took off to such a large degree. Lastly, the number of participants could be increased, again to gather greater and more reliable information.

Overall, the results were quite surprising to what was hypothesised. The researcher believed that celebrity endorsement did have a larger impact on consumers buying wants and needs than what was revealed from the results.

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9.0 ConclusionAs mentioned in the summary of the beginning of the thesis; many conclusions where drawn from both the literature review research as well as the primary research. This research impacted and helped immensely to the research question and helping better to understand the answers.

Referring back to the objectives and questions; (combined literature review objectives and overall thesis questions)

- Does celebrity endorsement influence a consumer to buy a celebrity-endorsed product over a non-celebrity endorsed product.

- Does it matter what celebrity is representing a product.- Could a certain celebrity representing a product discourage a consumer to not

purchase the product represented by that celebrity.

All objectives and questions were answered throughout the analysis of the thesis research. The main conclusions brought up from this thesis research are that celebrity endorsement does work for businesses and companies, depending on whom they use as a celebrity and for what product. It is especially important to consider the celebrity’s personality and reputation to the public before considering them to represent a product. The celebrity also has to match and have something in common with the product for consumers to consider that the celebrity does also like the product and is representing it well. If a consumer feels cheated or dislikes the celebrity or if they feel as though the celebrity doesn’t represent the product well there is a higher chance of the consumer not purchasing those certain products represented from that particular celebrity.

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10.0 References/Bibliography1. Carolyn Tripp, Thomas D. Jensen and Les Carlson. The Effects of Multiple Product Endorsements by Celebrities on Consumers' Attitudes and Intentions, Page 536 of 535-547, Journal of Consumer Research © 1994, viewed 31 July 2013, http://www.jstor.org/stable/2489757?seq=2

2. Grant McCracken. Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process, Page 310 of 310-321, Journal of Consumer Research © 1989, http://www.jstor.org/stable/2489512

3. Barbara A. Lafferty, Ronald E. Goldsmith. Corporate Credibility’s Role in Consumers’ Attitudes and Purchase Intentions When a High versus a Low Credibility Endorser Is Used in the Ad, FLORIDA STATE UNIVERSITY, Tallahassee, Florida USA, http://www.sciencedirect.com/science/article/pii/S0148296398000022

4. Kevin Lane Keller. Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, Page 1 of 1-22, Journal of Marketing © 1993 American Marketing Association, http://www.jstor.org/stable/1252054

5. Jagdish Agrawal and Wagner A. Kamakura. The Economic Worth of Celebrity Endorsers: An Event Study Analysis, Page 56 of 56-62, Journal of Marketing © 1995 American Marketing Association, http://www.jstor.org/stable/1252119

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11.0 AppendicesOnline survey was created from Survey Monkey www.surveymonkey.com.au.

All 34 participants were from Melbourne, Australia North West suburbs both male and female.

Survey questions:

1. Do you purchase brand products represented by celebrities?

2. Does a celebrity, influence what brand you buy?

3. Do you prefer to purchase celebrity endorsed products over non-celebrity endorsed products?

4. Is a celebrity-endorsed brand more appealing than a non-celebrity endorsed brand?

5. Does it make you feel better when buying a celebrity-endorsed product?

6. Does a celebrity representing the product influence how you feel when using the item?

7. Does it matter what celebrity is representing what brand or topic?

8. If you don’t like the celebrity representing a product but yet you want the product will it influence you not to purchase that product?

9. If you see an advertisement of a product represented by a celebrity does it influence you to go out and purchase that product as soon as you can?

10. Could a celebrity influence you to purchase the product/brand?

Answers were categorised by yes, no or sometimes.

2 interview participants, Nicole De Luca 21 and Phillip Mitrov 21.

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