This review should bring all relevant facts about the subject and facilitate practitioners and highlight areas for further research. In short celebrity endorsement is about endorsing products with the help from a celebrity. Consumer association towards a celebrity endorsed produced increases their purchase intention as many see the celebrity as a role model. However, it is important that the consumer can identify with the celebrity and that the celebrity? s image fits with the produced he or she endorses, only then will celebrity backing be an effective advertising strategy. . 2. Background and Definition Nowadays, celebrities are used in advertising in almost every context. Athletes such as Michael Ballack (Adidas) or Tiger Woods (Rolex) or models such as Cindy Crawford (Omega) or Heidi Klum (Katjes) endorse several products. These celebrities act as a spokesperson in order to advertise and promote products (Kambitsis et al. , 2002). Celebrities can create more positive responses towards advertising and greater purchase intentions than non-celebrity endorsers (Byrne et al. , 2003).
Using celebrity as an endorser for a given product can either be positive or negative for a company/brand. A campaign that turned out successfully was the campaign with Jamie Oliver as an endorser for the supermarket chain J. Sainsbury. The successful format of the TV production “The naked chef” provided an ideal platform to use for the advertising campaign within a context relevant for J. Sainsbury? s desire (Byrne, 2003). An example of a campaign that did not turn out successful was when J. Sainsbury used the actor John Cleese in the “value to shout about” campaign in 1998.
Employees and customers alike felt that Cleese was not the right personality to personify the supermarket’s quality image (Whitehead, 2003). In the literature there are two different definitions of celebrity endorsers used. The definitions used are: “A celebrity endorser is an individual who is known to the public (actor, sports figure, entertainer, etc. ) for his or her achievements in areas other than that of the product class endorsed”. (Friedman, 1979, p. 63) “Any individual who enjoys public recognition and who uses the recognition on behalf of a consumer good by appearing with it in an advertisement”. McCracken, 1989, p. 310) In other words these definitions says that an individual who is known to the public in different ways. The individual is famous and utilizes his or her publicity to advertise a product that does not have anything to do with the individual fame. I consider McCracken? s definition as the most informative one as it is short and concise. The definition gives a clear view of what a celebrity endorser is. Previous studies have been done on consumers? response to celebrity endorsement in advertising.
Results of these studies show that celebrities make advertising believable and enhance message recall. Furthermore, when celebrities are recognized with brand names, it creates a positive attitude toward the brand and a distinct personality for the endorsed brand. In the following chapter the method used for this review will be introduced. The chapter will start with how a literature review is defined, followed by the literature search, method problems and quality standards. 2. 1. Definition of literature review
Conducting a literature review is about understanding a topic that has already been addressed, how it has been researched by other authors, and what the key issues are (Hart, 1998). According to the author Chris Hart (1998) the definition of a literature review is the selection of available documents; both published and unpublished (in my review I will only study published academic documents), on the topic, which contains information, ideas, data and evidence written from a particular standpoint. 2. 2. Literature search, methodology used When searching for articles I used the databases Emerald, Ebsco and ProQuest.
These databases were used because of the highest ranked journals in the field of marketing were listed there. I used the article Journal quality list (2008) issued by Harzading. com, research in international and cross-cultural management. High ranked journals increase the validity of the thesis, as validity is defined as “The ability of a scale or measuring instruments to measure what is intended to be measured”(Zinkmund, 2000). I also tried to find books relevant to the topic by using the library here at Les Roches International School of Hotel management as well as the library database google. scholar. . 3. Description of sub-topics Purchase intentions: Describes what impact the celebrity endorser has on the consumers purchase intentions. A consumer is more likely to purchase complex or expensive products which are endorsed by celebrities rather than by non-celebrities. Daneshvary and Schwer (2000) point purchase intention as an environment of associations between endorsement and consumer, depending if the consumer can identify with that association and purpose. Consumers? association to celebrity endorsement/endorser: How consumers associate/have a connection towards the celebrity endorsement/endorser.
If a company want a consumer to associate to an endorsed product it is important to choose an endorser who uses the product and where that use is a reflection of professional expertise (Daneshvary and Schwer, 2000). A formula 1 driver endorsing helmets is good, while a tennis player endorsing car polish is less good (ibid). Consumers? attitudes towards the endorser: The consumers? often have a positive attitude towards the product and the celebrity, despite the fact, that it is well known, that the endorser earned a lot when promoting the product (Cronley et al. 1999). Effectiveness of celebrity endorsement/endorsers: How effective is the usage of celebrity endorsement. It is, most likely, more effective to use celebrity endorsement constantly to increase the strength of the link between the celebrity and the endorsed brand. It is also more effective to use a celebrity who is not associated with another product (Till, 1998). Positive/negative effects of celebrity endorsement: the usage of celebrity endorsement can be both positive and /or negative, which can influence the company / brand in the end.
For example, using celebrities can be very costly; also, celebrities might switch to a competitor, which would then increase the risk of a negative impact (Agrawal and Kamakura, 1995). However, in can be said that celebrities in advertising are widely spread and persistent and the marketing executives continue to utilize celebrity endorsement as an advertising strategy (ibid). Profitability of celebrity endorsement: The use of celebrity endorsement will hopefully lead to increased profitability.
A study indicates that there is a positive impact of celebrity endorsement on the expected future profits, which recommends marketing managers to use celebrity endorsers in their advertising campaigns (Agrawal and Kamakura, 1995). Friedman/Friedman (1979)Does effectiveness of celebrity endorsement depend on the product? Interviews with 360 house wives Celebrity endorsements are not effective for all products Till (1998)What are the effects of celebrities endorsing more than 1 product?
Case study with 99 students, who were shown different advertisings using the same celebrity endorserThe use of the same celebrity endorser to advertise for various products has got a negative impact on the efficiency of the ad, the product and the endorser. Atkin / Block (1983)Is celebrity endorsement effective in advertising and how does it influence customer purchase intentionsExperiment with 196 test persons, where each participant was shown 3 versions of an ad. Each version featuring a celebrity endorser and a non-celebrity.
Advertising using celebrity endorsement is under special conditions more effective than using non-celebrities. Choi et al. (2005)How can celebrities be used successfully in advertising? How effective is the recall-value and the emotional response to celebrity advertising? Experiment with different groups of test persons. Advertising with celebrities is more effective than using non-celebrities under special conditions. Sanbonmatsu / Kardes (1988)How does the credibility of a celebrity affect the consumer purchasing intention? Interviews with 542 persons.
Consumer purchasing intentions are more effected using celebrities than using non-celebrities. Tripp et al. (1994) How do consumers judge the celebrity endorsement, the ad and the brand, if the celebrity endorses various products? What are the effects on purchasing behaviour? First Study: interviews with 461 students. Second Study: Interview with 10 test persons. Simultaneous advertising trough the same celebrity has a negative effect on the ad, the product and the celebrity. Agrawal/Kamakura (1996)Which economical effects on advertising are there when using celebrities?
Event-Study in regards to the effects on share prices trough the announcement of celebrity endorsementCelebrity endorsement can have a positive and a negative effect on share prices. Agrawal/Kamakura (1995)Can a single celebrity have a positive effect on the company? s value? Analysis of the share price of a company after announcing a celebrity endorserCelebrity endorsement can have a positive and a negative effect on share prices. Charbonneau / Garland (2005)How does a company find the right celebrity endorser for its products? Which criteria should be considered? Questionnaires: 414 marketing managers at 148 advertising companies.