Topic - How does Celebrity Endorsements effect Brand Visibility and

Purchase Decision?
Methodology
People were asked how attractiveness, trustworthiness and expertise of a celebrity effected their brand
attitude and purchase decision. They rated these factors on the scale of – very high, high, average, low
and very low.

Summary of survey
1. Factors effecting Brand Attitude of a consumer. The response in the survey was -

Very High High Average Low Very Low

Attractiveness 19 28 17 3 3
of Celebrity
Trustworthines 18 32 16 2 2
s of Celebrity
Expertise of 12 30 18 8 2
Celebrity

2. Factors effecting Purchasing Decision of a consumer. The response in the survey was -

Very High High Average Low Very Low

Attractiveness 17 17 19 11 6
of Celebrity
Trustworthines 20 21 19 5 5
s of Celebrity
Expertise of 11 21 24 10 4
Celebrity

Calculations prior to T-test

Weighted sum of the choice of consumer was calculated by assigning weights to Ordinal data as

Very High 5
High 4
Average 3
Low 2
Very Low 1

T-tests
Hypothesis
H0 – Effect of Attractiveness of Celebrity on Brand Visibility and Purchase Decision is equal.

H1 - Effect of Attractiveness of Celebrity on Brand Visibility and Purchase Decision is not equal.

Confidence Interval
Confidence Interval taken

α = .05

Test Results

Table 1-1

PURCHASE
BRAND
DECISION
  VISIBILITY[Attractivenes
[Attractiveness of the
s of the celebrity]
celebrity]
Mean 3.814285714 3.414285714
Variance 1.051966874 1.579503106
Observations 70 70
Pearson Correlation 0.690171384
Hypothesized Mean Difference 0
Df 69
t Stat 3.625307869
P(T<=t) one-tail 0.000274002
t Critical one-tail 1.667238549
P(T<=t) two-tail 0.000548004
t Critical two-tail 1.994945415  

Conclusion
Value of t-stat calculated = 3.625307869

Value of t-stat critical (two tail) = 1.994945415

Since, t-stat calculated > t-stat critical

We reject the null hypothesis H0 and conclude that Effect of Attractiveness of Celebrity on Brand Visibility
and Purchase Decision is not equal.

Also by checking t-stat (one tail), we can conclude that effect of Attractiveness of celebrity on Brand
Visibility is greater than its effect on Purchase Decision.
Table 1-2

PURCHASE
BRAND ATTITUDE
DECISION
  [Trustworthiness of the
[Trustworthiness of
celebrity]
the celebrity]
Mean 3.885714286 3.657142857
Variance 0.8563147 1.387991718
Observations 70 70
Pearson Correlation 0.681389076
Hypothesized Mean Difference 0
Df 69
t Stat 2.195668622
P(T<=t) one-tail 0.015740463
t Critical one-tail 1.667238549
P(T<=t) two-tail 0.031480926
t Critical two-tail 1.994945415  

Conclusion
Value of t-stat calculated = 2.195668622

Value of t-stat critical (two tail) = 1.994945415

Since, t-stat calculated > t-stat critical

We reject the null hypothesis H0 and conclude that Effect of Trustworthiness of Celebrity on Brand
Visibility and Purchase Decision is not equal.

Also by checking t-stat (one tail), we can conclude that Effect of Trustworthiness of celebrity on Brand
Visibility is greater than its effect on Purchase Decision.

Table 1-3

BRAND ATTITUDE PURCHASE

  [Expertise of the DECISION [Expertise
celebrity] of the celebrity]
Mean 3.6 3.357142857
Variance 0.997101449 1.189440994
Observations 70 70
Pearson Correlation 0.692011207
Hypothesized Mean Difference 0
Df 69
t Stat 2.465303269
P(T<=t) one-tail 0.008090771
t Critical one-tail 1.667238549
P(T<=t) two-tail 0.016181542
t Critical two-tail 1.994945415  

Conclusion
Value of t-stat calculated = 2.465303269
Value of t-stat critical (two tail) = 1.994945415

Since, t-stat calculated > t-stat critical

We reject the null hypothesis H0 and conclude that effect of Expertise of Celebrity on Brand Visibility and
Purchase Decision is not equal.

Also by checking t-stat (one tail), we can conclude that effect of Expertise of celebrity on Brand Visibility
is greater than its effect on Purchase Decision.

Table 1-4

PURCHASE
BRAND ATTITUDE
  DECISION
[OVERALL]
[OVERALL]
Mean 11.3 10.42857143
Variance 4.966666667 8.161490683
Observations 70 70
Pearson Correlation 0.698830793
Hypothesized Mean Difference 0
Df 69
t Stat 3.545119068
P(T<=t) one-tail 0.000354882
t Critical one-tail 1.667238549
P(T<=t) two-tail 0.000709764
t Critical two-tail 1.994945415  

Conclusion
Value of t-stat calculated = 2.465303269

Value of t-stat critical (two tail) = 1.994945415

Since, t-stat calculated > t-stat critical

We reject the null hypothesis H0 and conclude that overall effect Celebrity Endorsement on Brand
Visibility and Purchase Decision is not equal.

Also by checking t-stat (one tail), we can conclude that overall effect of celebrity endorsement on Brand
Visibility is greater than its effect on Purchase Decision.

Above tests also shows that comparatively Trustworthiness of celebrity has the greatest effect on the
Purchase decision of a consumer and Attractiveness of the celebrity has the least effect.