Critical Analysis of the Impact of Celebrity Endorsement on Brand Awareness-Dissertation Sample

QUESTION

Dissertation on Topic: Critical analysis of the impact of celebrity endorsement on brand awareness

3500 Words

ANSWER

CRITICAL ANALYSIS OF THE IMPACT OF CELEBRITY ENDORSEMENT ON BRAND AWARENESS

Abstract

The current dissertation provides a critical analysis of the impact of celebrity endorsement on brand awareness focusing on the case study of Nike. The 5 chapters of the dissertation provides an in depth description regarding the topic with the help of evidence by means of primary research. In the first chapter rationale of the research has been provided where it is identified that celebrity endorsement in Nike is consistent funding of business relation between personalities and brands. Also the issue of switching over for higher pay endorsements has been highlighted as a major issue. A research aim and four objectives of the research have been set in order to meet the research requirements. The second chapter provides an in-depth literature review where critical analysis of the existing literature regarding celebrity endorsement and impact of celebrity endorsement on brand awareness has been evaluated. The third chapter provides an overview of the research methods that have been used in the research such as interpretivism philosophy, inductive approach and descriptive design. Data collection method has been provided by means of interviewing 4 customers of Nike among the population size of 1000. A set of 9 questionnaires have been made for interviewing the respondents regarding their opinions of celebrity endorsement and impact on brand awareness. The last chapter provides a conclusion on the research highlighting celebrity endorsement as a major game shifter in influencing consumers as well as increasing the financial revenue of in both national and international scale of business. Two recommendations have been provided in order to mitigate the issue.

Acknowledgement

On completion of this project, I would like to express my sincere gratitude to my professor for providing me an opportunity for doing a project on celebrity endorsement and its impact on brand awareness. His guidance has helped me in completing the entire project successfully. Beside my mentor I would like thank my group members and friend for their encouragement and help during my project. I also want to thank the interviewees who have responded to my interview questions and helped me in completing the research on Nike. My sincere gratitude goes to my family member as well for keeping faith on me and motivating me to complete this research.

Thank you

Student name

Table of Contents

CHAPTER 1: INTRODUCTION 

1.1 Introduction 

1.2 Rationale 

1.3 Aims and Objectives 

1.4 Research questions 

1.5 Significance of research 

1.6 Structure of dissertation 

1.7 Chapter summary 

CHAPTER 2: LITERATURE REVIEW 

2.1 Introduction

2.2 Conceptual Framework 

2.3 Critical assessment of celebrity endorsement 

2.4 Evaluating the impact of celebrity endorsement on brand awareness

2.5 Issues in celebrity endorsement 

2.6 Literature gap 

2.7 Conclusion 

CHAPTER 3: RESEARCH METHODOLOGY 

3.1 Introduction 

3.2 Research onion 

3.3 Research Philosophy 

3.4 Research approach 

3.5 Sampling technique and sample size 

3.6 Data collection 

3.7 Data analysis 

3.8 Ethical consideration 

3.9 Time frame 

3.10 Chapter summary 

CHAPTER 4: FINDING AND ANALYSIS 

4.1 Introduction 

4.2 Findings 

4.3 Analysis 

4.4 Chapter summary 

CHAPTER 5: CONCLUSION AND RECOMMENDATION 

5.1 Conclusion 

5.2 Linking with objective 

5.3 Recommendations 

5.4 Research limitation 

5.4 Future prospect

Reference List

Appendices 

Appendix 1 

Appendix 2 

Appendix 3: Interview questions 

Appendix 4 

CHAPTER 1: INTRODUCTION

1.1 Introduction

Modern business campaign of highly influential brands has taken the route of celebrity endorsement for competing in national and global business region. Nike being a celebrated sport brand among buyers has included sport personalities like Tiger Woods, Ronaldinho, Cristiano Ronaldo and many more as brand endorsers. This chapter has presented a rationale on brand endorsement by celebrities along with identification of primary aim and objectives of research.

1.2 Rationale

What is the issue?

The primary issue of celebrity endorsement in Nike is consistent funding of business relation between personalities and brands. It has been found out by Nice Kicks that Nike has touched and expense of 10 billion Pound in 2016 (nicekicks.com, 2016). Another major issue of celebrity endorsement is switching over to rival companies for higher endorsement pay out. This does not only change the mindset of consumers but also questions the authenticity of claims made during celebrity ad campaigns. (Refer to Appendix 1)

Why is it an issue?

The identified challenges are important issue because conservation of revenue act as a back up in times of financial deficit and loss of customers. Pradhan et al. (2016, p.458) has highlighted that expense in celebrity endorsement often weakens the solidified customer base as brand tends to focus more on ads rather than consumers. The issue of switch over is an important fact that rules within business environment.

Why is it an issue now?

The issues are very much relevant to present business condition because it contemporary rivals of Nike such as Reebok and Adidas seek to influence the face of brand either through hike in package or through other influential elements. In order to score good in current business environment, it is required by companies to compete with rival under a strong financial back up.

What do research highlight?

The research shed light on the impact of celebrity endorsement on brand awareness focusing on the case study of Nike.

1.3 Aims and Objectives

The aim of research is to highlight influential factors for celebrity based endorsement in Nike. The objectives of research are:

  • To identify the major factors affecting celebrity-based brand awareness in Nike

  • To analyses the cost of celebrity-based brand endorsements

  • To evaluate the impact on brand awareness due to celebrity brand endorsements

  • To devise strategies for better involvement of the celebrities in brand awareness

1.4 Research questions

1. What is the impact of celebrity based endorsement on brand awareness?

2. What factors influence celebrity endorsement of brand Nike?

3. What issues affect the celebrity endorsement of Nike?

4. What strategies can be suggested to upgrade celebrity endorsement?

1.5 Significance of research

The research is significant to explore advantages as well as disadvantages of celebrity endorsement that surrounds Nike brand. It is relevant to find out the customer viewpoint on celebrities endorsing Nike brand.

1.6 Structure of dissertation

1.7 Chapter summary

High expense of relationship with celebrities and switch over to rival companies are issues of celebrity endorsement. It put a negative impact over Nike because a considerable amount of revenue always needs to be kept secured for maintaining a favourable bond with celebrated personalities.

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

This chapter has primarily considered three literatures from Journal of Product and Brand Management, Journal of Marketing Communications and Brand meaning management of EGPL group. These three journals are considered as the primary source of information on celebrity endorsement along with other relevant literatures on impact of celebrity endorsement. In order to understand the mechanism of celebrity endorsement, this chapter has conducted critical assessment on celebrity endorsement and issues surfacing celebrity endorsement. Successive section of this chapter includes a literature gap that highlighted missed out information and justified the reason for not including that information.

2.2 Conceptual Framework

2.3 Critical assessment of celebrity endorsement

The influential mechanism for business organisation to spread their claims among larger customer base is accompanied by praised celebrities of that particular region. It has been highlighted by Dwivedi et al. (2015, p.452) that celebrity endorsement is one kind of an advertising or marketing campaign to include the followers of celebrity as potential customers of the company. It cannot be denied that fans and followers of celebrities often incline toward products that have been endorsed by their favourite celebrities. This practical approach allows global brand such as Nike, Adidas, Zara and many more to compete on international level and increase the consumer base of the company. However, Escalas and Bettman (2015, p.32) has stated that celebrity endorsement needs to be maintained on continuous process for having a positive relation with brands. The contrary statement of author is relevant for companies as majority of the expenses cover the financial relation with celebrities. They need to be given high priority on regulated interval so that the tie up does not go through any type of friction.

On the other hand Pradhan et al. (2016, p.458) has conducted an online survey of 436 consumers of high class brands to state the correlation between brand awareness and celebrity endorsement. The results signified that consumers tend to buy products that are endorsed by celebrated personalities and also seek to continue their relationship with that brand. The interesting aspect of this survey was that linking the claims of brand with celebrity user can also improve the effectiveness of advertising campaign along with positioning of brand in major economies. The reviewed literatures signifies that celebrity endorsement are one of the major step to influence rival competition as well as put added pressure in handling brand campaign and funding relation with celebrity endorsers.

2.4 Evaluating the impact of celebrity endorsement on brand awareness

The success of an organisation depends on their effectiveness in understanding the needs and requirements of consumers. In order to influence consumers, advertising and marketing campaign should excite consumers to purchase products for long term basis. It has been addressed by Chung and Cho (2017, p.482) that popularity of celebrity decide the success factor for any company that has approached any celebrity endorsement. Celebrity endorsement allows a brand to form a communication bridge with potential consumers and also record higher business expansion after the practical application of celebrity endorsers.

It cannot be denied that celebrity endorsement leads an organisation toward first preference from consumers in comparison to business products that depends on itself to lure the consumers. Another major impact of celebrity endorsement is that it increases trust between consumers and particular brand. Influenced from the views of Gupta et al. (2017, p.18) it can be stated that celebrity endorsements over online and offline business provides a feeling of transparency and positive advertising platform for the companies. The statement of author is relevant in terms of garnering prolong relation with customers as well as increase in purchase of celebrity endorsed product.

2.5 Issues in celebrity endorsement

The major issue of celebrity endorsement is that company cannot afford to miss out any payment to partnered celebrity. Dissanayake and Gunawardane (2018, p.22) has stated that celebrity endorsers can have negative influence over brand recognition in case of any inconsistent funding relation with an organisation. It does not only result in brand switching but also decreases majority of the revenue. On the contrary Akram et al. (2017, p.14) has stated that brand success from celebrity endorsement is not stagnant. The author has highlighted the issue of low popularity and time period of celebrities in influential position. It can be considered a valid viewpoint that awareness campaign from celebrity endorsed brand needs to acknowledge the career expectancy of influential personality. It is required by companies to form a correct match between brand and influential personalities so that celebrities can influence the brand recognition among consumers.

2.6 Literature gap

The literature review has not highlighted the factors that are involved in forming a relation with product based companies because of fewer amounts of academic journals and online information. It also has not presented enough positive factor of celebrity endorsement due to time bound nature of research.

2.7 Conclusion

The above identified factors and issues of celebrity endorsement points to the conclusion that brand awareness receives a positive boost in terms of revenue and high customer base. There needs to be consistency in maintaining the relation with celebrities because of their influence over followers and the need avoid controversies. The celebrity endorsement result in positive influence over advertising campaign as majority of celebrity followers incline toward the claim of brand that are expressed with the help of celebrated personalities. It is also one of the most efficient tools in spreading the recognition of brand in international context as well as result in higher demand of endorsed products. Inclusion of celebrity endorsement helps an organisation to compete with companies that does not rely on celebrities for influencing consumers. However, it cannot be denied that career period celebrity is a major game shifter in brand recognition of endorsed products.

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction

This chapter has mentioned the methods are considered for research on celebrity endorsement of brand and their impact on brand awareness. A justified reason for including positivism philosophy and inductive research approach is determined in this chapter as per the design of research onion.

3.2 Research onion

Figure 3.1 Research onion

(Source: Based on views of Saunders et al. 2009, p.52)

The above shown figure has showcased that analysis of any particular is initiated after passing through various layers of research method. Among the philosophies given in layer of research onion, positivism research philosophy is considered for scientific exploration of brand awareness. As per the research onion, inductive approach is considered by this research to focus on scope of celebrity endorsement in brand awareness. Moreover, this research has also considered the use of interview to garner specific requirements of Nike customers and their perception on celebrity endorsement of Nike products.

3.3 Research Philosophy

Research philosophy is of three types that are positivism, interpretivism and realism. Among the three research philosophy, the research has progressed with interpretivism philosophy. This has allowed the research to interpret elements of this business research project such as improved customer base and increase in financial revenue.

Interpritivism philosophy has been selected as it focus on emphasizing qualitative analysis over quantitative analysis in order to find out possible issues in celebrity endorsement such as high expense and threat of brand switch to rival companies.

3.4 Research approach

Research approaches are of two types that are inductive and deductive approach. This research has acquired inductive research approach because a two way interview session has been conducted with relevant customer base of sport products.

It has been selected to identify brand awareness by questioning participants on celebrity endorsement on Nike products.

3.5 Sampling technique and sample size

Sampling technique is considered to be of two types that are probability and non-probability sampling technique. In this research, convenience sampling that comes under probability sampling technique has been chosen. Convenience sampling has been selected to identify participants according to particular needs from a large base of Nike customers from UK. The research has targeted 7 customers of Nike as for interview response among which 4 of them responded. Hence, the sample size for this business research project is 4 UK customers of Nike.

3.6 Data collection

Data can be collected from Primary and Secondary manner. In this research primary qualitative means of data collection is chosen by interviewing 4 customers of Nike. The 4 customers conceded for interview were selected from different UK stores of Nike. They belonged to the age group of 25-40 years. Three of these customers were male while the rest one customer was female.

Conducting interview has been chosen as it helped the researcher in garnering customer’s perception on celebrity endorsement adopted by Nike and ways by which it affects brand awareness.

3.7 Data analysis

Interview transcripts of the 4 respondents have been recorded by researcher. Only 4 respondents have been selected for this business research project in order to make the qualitative research findings precise well as simplified in nature. The interview questions have been framed after through research on celebrity engrossment done by Nike. Furthermore, the interview question that has been framed also focus on increasing brand awareness among the customers of Nike. The data collected from each question answer session has been analysed by means of forming statements from the interview transcripts which is redder to as content analysis. These statements have been further divided into factors and sub factors emphasising on the determinants of celebrity endorsement and brand awareness as per opinions of respondents and subsequently analysed.

3.8 Ethical consideration

The participants were not subjected to any sensitive topic for interview session. The recording of interview is kept secured under Data Protection Act, 1998. This legislation state that collected information cannot be subjected to manipulation to cover illegal means (legislation.gov.uk, 2019). Manipulation of the data collected from the interview respondents has been ignored by following the provisions of this act. Confidentiality and anonymity of the respondents were maintained and no monetary transactions have taken place between the interviewer and interviewee in order to complete the interview process.

3.9 Time frame

(Refer to appendix 2)

3.10 Chapter summary

Positivism research philosophy was required to evaluate customer attraction and purchase behaviour. Application of inductive approach helped in understanding the impact of celebrity endorsement and brand awareness by holding question answer session with consumers of brand products.

CHAPTER 4: FINDING AND ANALYSIS

4.1 Introduction

The analysis of findings garnered from interview session with brand influenced consumers is being conducted in this chapter. The required analysis needs to be conducted on the basis of open ended question that was referred to appendix 2 in the finding section. This chapter has also highlighted the need to understand the relationship between celebrity endorsement and brand recognition of Nike among consumers. Furthermore, the open ended interview session can help in understanding the relation between high profile brand and purchase behaviour of general consumer.

4.2 Findings

Following set of questions have been asked to the customers of Nike in order to collect the primary data:

1. Do you buy branded clothes? Which brand do you prefer and why?

2. Are you a regular buyer of Nike products? How often do you buy these products?

3. Do you feel that current advertisements used by Nike are quite attractive and appropriate?

4. Do you prefer brands which are associated with celebrity endorsement?

5. What is your opinion about the celebrity endorsement approaches adopted by Nike? Do they influence you in buying their products?

6. What is your opinion about using celebrities for endorsement and increase in product sale?

7. How does celebrity endorsement affect your reliability on the product?

8. Will celebrity endorsement urge you to buy more products from the company in future?

9. What are the main characteristics as per your opinion that a celebrity needs to have for associating with celebrity endorsement?

(Refer to Appendix 3)

4.3 Analysis

4.3.1 Critical analysis of consumer purchase decision on brand recognition of Nike

Purchase decision

As a response of 1st question of the interview session with 4 interviewees it has been identified that purchase decision of consumer on the bases of their preference for branded products and attraction from advertisement campaign has been analysed.

Brand preference

It has been commented by Nasir et al. (2016, p.22) that high quality brand reflect trust and fashionable design in their products. The statement of author can be related to the second question responce of the interview because most of the consumers consider buying Nike products due to the durability, quality and fashionable design on their shoes and other products. The findings also reveal that recognized brands such as Adidas and Nike put a high price on their products which is considered as one of the restrictive factor against purchase decision of branded products. However, Rahman (2018, p.368) has verified that high priced brand apply attractive advertisement campaign for influencing potential consumer of the company. Based on the findings, it can be said that consumers do not only prefer Nike products only but also ventures for other retailers as well. This approach allows them to compare their intended products before making a purchase decision.

Brand advertisement

Customer response for the third interview question highlighted the fact that Nike is considered to be the top most influential sport brand in the globe along with Adidas and Reebok. They are readily selected by consumer due to their high quality and unique slogan of ‘Just Do It’ which has become a popular code for Nike brand. Based on the findings generated in open ended interview session, it is clear that Nike is considered as one of the high priced brand with high quality products. It is understandable from the interview session that Nike promptly uses high class advertisement and marketing campaign to increase the accessibility of consumer. On the contrary Derdenger et al. (2018, p.42) has stated that brands that has achieved international recognition goes through high rivalry among them. The current advertisement regarding NikeID has been able to achieve new customer base because it provide comfortable foot wearing experience and customizable option for masses. As per finding, there is 50% probability for consumer to regularly update about Nike’s product through advertisement campaign. The advertisement campaign of Nike is mostly watched by that consumer that prefers to buy high priced products and also get influenced by the quality and fashionable design of such products.

4.3.2 Critical analysis of celebrity endorsement of Nike brand

Celebrity endorsement of Nike

As a response of the fifth question of the interview session, it is observed that they need characteristics in a celebrity, influence of celebrity on consumer and product sale and reliability of celebrity endorsed product are analysed.

Preferable characteristics of celebrities

It has been stated by Sasmita and Mohd Suki (2015, p.278) that companies acquiring celebrity endorsers needs to be careful while selecting the face of brand. The data fining from the 6th interview question responce also points to the analysis that Nike have to make sure that celebrity needs to consider the past controversies, present interaction with commoners and future direction of celebrities. It is required by Nike to consider celebrities that have higher popularity as it could help in increasing customer base as well as have positive shift through advertisement campaign.

Product sale and influence on consumers

Celebrity endorsement of Nike products helps the company to not only influence their consumer but also increase the product sale aspect of the company. It has been stressed by Osei-Frimpong et al. (2019, p.106) that celebrity endorsement is an influential marketing strategy that seeks to heighten the curiosity of consumer. Based on the findings from 7th interview question response it has been identified that there are two sets of view regarding celebrity endorsement. One section of customer’s sees celebrity endorsement as better alternative to garner consumer attraction because the recurrent exposure of product among favourite celebrities does not only increases their intention to buy Nike products but also allow Nike to make high sales volume.

Reliability of product

Kim et al. (2018, p.322) has highlighted that celebrity endorsement increases the reliable nature of product. Nike consumer generally purchases high priced products not only because of quality but also because of celebrity endorsers that has major influence over the reliable nature of product. Since celebrities vouch for company’s claim, they could be questioned by consumers in times of failed expectation from purchased products (Priyankara et al. 2017, p.132). However, celebrity endorsement of Nike also makes them capable of increasing their product sale because they get to sell the products that are produced in larger volumes.

4.4 Chapter summary

Celebrity endorsement work for the benefit of company in terms of heightened sale of product and also extend the recognition of brand. The celebrity endorsement is considered to be an influential marketing strategy by increasing the returns of investment. Consumers that generally get influenced by celebrity endorsement seek Nike products on regular basis as well as compare the products with other retailers to understand the quality of listed products in Nike store.

CHAPTER 5: CONCLUSION AND RECOMMENDATION

5.1 Conclusion

From the aforementioned chapters of dissertation, it can be concluded that celebrity endorsement of Nike brand helps in improving the customer base and influence the financial revenue in a positive note. It is required by Nike to make a conscious decision while selecting their celebrity for endorsement because they could either promote business in international scale or becomes the primary source of negative business performance. Celebrity endorsement acts as a major game shifter in influencing consumers as well as increasing the financial revenue of in both national and international scale of business. Celebrity endorsement needs to take into account two most recurrent issues. These issues are high expense in terms of funding the relationship with celebrities and switching over to rival companies.

Any mismatch between a company and celebrity could result in negative brand awareness and also entangle the brand into controversies. These issues could not only influence the buyers to select rival company as majority of celebrity endorsement helps in influencing their followers to choose a particular product that are being exposed with probable advertisement technique. The application of celebrity endorsement allows consumers to select products that features their favourite celebrities where as companies that do not seek any celebrity endorsement often scores bad financial performance and lower customer base.

5.2 Linking with objective

5.2.1 Linking with objective 1:

This objective has been met in primary qualitative question number 2, 4, 5, 7 and 8 that has explored the influence of Nike products over consumer and also presented the opinion of participants regarding celebrity endorsement of Nike brand

5.2.2 Linking with objective 2:

This objective has been met in question number 1 and 6 that has questioned the influence of branded products and highlights the product sale of Nike from celebrity endorsement.

5.2.3 Linking with objective 3:

This objective has been met in question number 3, 9 and 6

5.2.4 Linking with objective 4:

This objective has been met in primary qualitative question number 9 and 7 that highlight reliability of product and guidelines a company should follow before including any celebrity.

5.3 Recommendations

Recommendation 1:

In order to reduce the issue of high expense in celebrity endorsement, Nike can sign contract statement by signifying a particular amount as endorsement fees. This recommendation can b considered specific and attainable because it can help in regulating incessant requirement of celebrities and also bring transparency between both parties.

Recommendation 2:

In order to reduce brand switch over by celebrities, Nike should include celebrities in R and D department of product. This could allow Nike to know the requirements of celebrities as well as reduce any mismatch between them.

5.4 Research limitation

Unavailability of monetary fund posed as a barrier for gathering primary data by means of survey, which would have brought more clear responses for this business research project. On another hand, limited monetary funds also did not allow the researcher for getting access to costly literary sources of journals and books. Limited availability of statistical as well as literary data has been major limitations of this business research project and thus has also restricted appropriate execution of this business research project.

5.4 Future prospect

Some of the future prospect that can be considered for this research is that it can help in evaluating the future advantage for advancing the celebrity endorsement contract with only single personality. It could also help in garnering relevant information on primary demands of celebrities other than financial aspect of the endorsement contract.

Reference List

Akram, S., Nazam, M., Mubeen, R. and Ch, S.R., (2017). Factors influencing effec-tiveness of celebrity endorsement in advertising. British Journal of Marketing Studies5(1), pp.1-16.

Chung, S. and Cho, H., (2017). Fostering parasocial relationships with celebrities on social media: Implications for celebrity endorsement. Psychology & Marketing34(4), pp.481-495.

Derdenger, T.P., Li, H. and Srinivasan, K., (2018). Firms’ Strategic Leverage of Unplanned Exposure and Planned Advertising: An Analysis in the Context of Celebrity Endorsements. Journal of Marketing Research55(1), pp.14-34.

Dissanayake, R. and Gunawardane, N., (2018). Brand Activation: A Review on Conceptual and Practice Perspectives.

Dwivedi, A., Johnson, L.W. and McDonald, R.E., (2015). Celebrity endorsement, self-brand connection and consumer-based brand equity. Journal of Product & Brand Management24(5), pp.449-461.

Escalas, J.E. and Bettman, J.R., (2015). Managing brand meaning through celebrity endorsement. In Brand meaning management (pp. 29-52). Emerald Group Publishing Limited.

Gupta, R., Kishor, N. and Verma, D.P.S., (2017). Construction and validation of a five-dimensional celebrity endorsement scale: introducing the pater model. British Journal of Marketing Studies5(4), pp.15-35.

Kim, S.S., Choe, J.Y.J. and Petrick, J.F., (2018). The effect of celebrity on brand awareness, perceived quality, brand image, brand loyalty, and destination attachment to a literary festival. Journal of Destination Marketing & Management9, pp.320-329.

legislation.gov.uk (2019). Data Protection Act, 1998. Available at: https://www.legislation.gov.uk/ukpga/1998/29/contents [Accessed 1/04/2019]

Nasir, N., Khan, S., Sabri, P.S.U. and Nasir, S., 2016. CELEBRITY ENDORSEMENT AND CONSUMER BUYING INTENTION WITH THE MEDIATING ROLE OF BRAND PERFORMANCE: AN EMPIRICAL CONSUMER PERCEPTION STUDY IN FMCG SECTOR OF PAKISTAN. Science International28(1).

nicekicks.com (2016). Nike Spent Almost $10 Billion on Endorsements in 2016. Nice Kicks [Online]. Available at: https://www.nicekicks.com/nike-spent-almost-10-billion-endorsements-2016/ [Accessed 1/04/2019]

Osei-Frimpong, K., Donkor, G. and Owusu-Frimpong, N., (2019). The Impact of Celebrity Endorsement on Consumer Purchase Intention: An Emerging Market Perspective. Journal of Marketing Theory and Practice27(1), pp.103-121.

Pradhan, D., Duraipandian, I. and Sethi, D., (2016). Celebrity endorsement: How celebrity–brand–user personality congruence affects brand attitude and purchase intention. Journal of Marketing Communications22(5), pp.456-473.

Priyankara, R., Weerasiri, S., Dissanayaka, R. and Jinadasa, M., (2017). Celebrity endorsement and consumer buying intention with relation to the Television advertisement for perfumes. Management5(2), pp.128-148.

Rahman, R., (2018). Building brand awareness: The role of celebrity endorsement in advertisements. Journal of Global Scholars of Marketing Science28(4), pp.363-384.

Sasmita, J. and Mohd Suki, N., (2015). Young consumers’ insights on brand equity: Effects of brand association, brand loyalty, brand awareness, and brand image. International Journal of Retail & Distribution Management43(3), pp.276-292.

Saunders, M., Lewis, P. and Thornhill, A., (2009). Research methods for business students. London: Pearson education. 

 

Appendices

Appendix 1

Nike expense on celebrity endorsement

(Source: https://www.nicekicks.com/nike-spent-almost-10-billion-endorsements-2016/)

Appendix 2

Activities

Week 1-2

Week 3-4

Week 5-6

Week 7-8

Week 9-10

Week 11-12

Selecting topic

Setting aims and objectives

Conducting literature review

Setting research methods

Conducting interviews

(Primary qualitative data collection)

Analysing interview transcripts

Conclusion and recommendation

Submission of project

Appendix 3: Interview questions

Following set of questions have been asked to the customers of Nike in order to collect the primary data:

1. Do you buy branded clothes? Which brand do you prefer and why?

2. Are you a regular buyer of Nike products? How often do you buy these products?

3. Do you feel that current advertisements used by Nike are quite attractive and appropriate?

4. Do you prefer brands which are associated with celebrity endorsement?

5. What is your opinion about the celebrity endorsement approaches adopted by Nike? Do they influence you in buying their products?

6. What is your opinion about using celebrities for endorsement and increase in product sale?

7. How does celebrity endorsement affect your reliability on the product?

8. Will celebrity endorsement urge you to buy more products from the company in future?

9. What are the main characteristics as per your opinion that a celebrity needs to have for associating with celebrity endorsement?

Appendix 4

1. Do you buy branded clothes? Which brand do you prefer and why?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

Yes, Nike. Because of Ok quality and fashionable design

Yes, Adidas. Because of simplistic design

No, I don’t have any preferred brand as such

I do not like to depend on brand because I seek comfort and looks while buying product

2. Are you a regular buyer of Nike products? How often do you buy these products?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

No, Sometimes

No, I also buy form other retailers

Yes, most of the times

No, I rarely go for high priced products

3. Do you feel that current advertisements used by Nike are quite attractive and appropriate?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

Yes, I prefer their Nike ID advertisement

No, I do not regularly check their advertisement

Yes, Their slogan Just do it is influential

No, because I rarely go for Nike

4. Do you prefer brands which are associated with celebrity endorsement?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

Yes, It think it is a good marketing strategy

Yes, it influences the customers

No, I do not like celebrity influence

I do not know

5. What is your opinion about the celebrity endorsement approaches adopted by Nike? Do they

influence you in buying their products?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

They subconsciously influence the consumer in selecting their products

It works on behalf o Nike because they sponsor many football teams

Yes, It helps in influencing the consumer in a big way

I do not know

6. What is your opinion about using celebrities for endorsement and increase in product sale?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

It definitely increases their product sale and helps in garnering high consumer base

Yes, but they have to make conscious decision while selecting celebrities

Yes they can increase product sale of products manufactured in high volumes

I do not think I have specific information on product sale from celebrity endorsement

7. How does celebrity endorsement affect your reliability on the product?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

It does not affect much but if they sell tools such as football boot then it definitely affects the reliability of product

Yes it increases the reliability because celebrities pass the same level of faith to consumers

Yes they increase the reliability because more exposure to product results in high reliability

No I do not think it affects the reliability of my product.

8. Will celebrity endorsement urge you to buy more products from the company in future?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

Yes, more exposure to product result higher brand exposure

Yes, it could urge me to buy products

No, Because I do not get influenced by celebrities endorsement

Yes if they hire right celebrity for endorsement

9. What are the main characteristics as per your opinion that a celebrity needs to have for associating with celebrity endorsement?

Interviewee 1

Interviewee 2

Interviewee 3

Interviewee 4

Controversial figures should be avoided

The companies need to consider earlier decision of celebrities regarding the product

Celebrity interaction with commoners needs to be accounted

I do not know

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