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CELEBRITY ENDORSEMENTS AND PRODUCT

PERFORMANCE: A STUDY OF NIGERIAN CONSUMER


MARKETS
Omotayo OYENIYI
Lagos State University, Ojo, Lagos, Nigeria
Email: omotayooyeniyi@yahoo.com

Abstract:
The Nigerian economy has experienced increased launching of consumer
products; this is occasioned by the level of competition in the country. As such
consumers are exposed to large number of product-related communication
messages in primetime television and newspaper content. One commonly
strategy adopted by manufacturers of consumer products is the use of celebrity
endorsement with it attendance cost and other risks. The main objective of this
study is to establish if there is a relationship between brand positioning,
purchasing decisions, brand equity and celebrity endorsement. A survey of 142
respondents was used and the data was analyzed with Structural Equation
Model. The results indicate that trust, level of expertise and the fit between the
celebrity and the product have positive impact on product performance. However,
it was discovered that attractiveness of the celebrity and the similarities between
the celebrity and the receiver has little effect on product performance. Therefore,
organizations desirous of making use of celebrity in promoting their products
should evaluate the attributes of the celebrities that will enhance product
performance.

Keywords: Celebrity endorsement, brand image, product performance

Introduction scenario has led not only intense


Consumer products market appears competition for consumer attention but the
saturated and it is increasingly becoming search for and emergency of innovative
difficult to penetrate the market to secure strategies to break through to the
and sustain customers’ attention. The consumers. One seemingly appealing
difficulty arose from the increasing strategy in the corporate sector is the use
number of new and competing products in of celebrity endorsement in
the market with primetime television advertisements.
cluster becoming almost a quarter of Celebrities are individuals who enjoy
promotional content. In addition, public recognition by a large share of a
newspapers contents are somewhat certain group of people. Friedman &
saturated with close to 50 percent Friedman (1979) defined the term
advertising. The espoused scenario is of “celebrity” as an individual who is known
advantage to media houses in terms of to the public, for example, actors, sports
revenue, however, the implication for the figure, and entertainers, among others.
corporate sector is that consumers are Dean and Biswas (2001) suggested that
exposed to floods of product-related celebrity endorsements can contribute to
communication messages. The problem higher consumer awareness,
that becomes easily discernable from the advertisement ratings and favorable
consumers perspective is the difficulty product evaluations. It is argued that
within the limit of his cognitive capacity to successful celebrity endorsements could
comprehend and absorb the flood have a substantial impact on firms’
marketing communication messages. The financial returns (Erdogan, Baker and
42 Management&Marketing, volume XII, issue 1/2014
 
Tagg, 2001). Celebrity endorsement This is important in order to ascertain
becomes effective when consumers can whether celebrity endorsement has
find a clue of the endorsers’ genuine positive value transfer as it is suggested
likeness of the product rather than elsewhere. Product related
possible earning from the endorsement. communication often form targets young
Research has shown celebrity consumers, therefore, the perception of
endorsement has multiple effects on the young consumers on celebrity
product and message performance: endorsement is important to gauge the
credibility, message recall, memory and relevance of the concept in understanding
likeability of the advert and purchasing consumers purchasing intention.
intentions (Erdogan, 1999; Ericsson and An important marketing function is to
Hakansson, 2005). position and effectively communicate the
However, celebrity endorsement is benefits and equity of a brand to the
not a trivial assignment both in terms of consumers effectively and to penetrate
financial and image consequences of bad the mind of the consumers enough as to
endorsement. Consequently, firms gain their attentions. The thrust of the
expend substantial attention and financial marketing efforts is not only to create
resources to attract and retain the right awareness, but to also catch the attention
celebrity for their products. Poor of the customers, develop appropriate
judgment in the choice of celebrity positive associations between the product
endorser could harm not only sales and and the value transfer of the celebrity,
corporate image but may hasten influence recall and eventually to induce
commercial failure of products in markets trial and effect purchase decisions (Jain,
where morality and ethical standards are 2011). Advertising as a marketing
of high essence. Therefore, this study communication tool attempts to
explores celebrity endorsement and its coordinate consumer behavior and
effectiveness in enhancing brand purchases. In high competitive consumer
purchase intention among consumers in a market like Nigerian market achieving this
developing economy like Nigeria. objective is an uphill task. As such,
There have been several studies on consumer product companies develop all
celebrity endorsement, however, majority kinds of measures to motivate and
of these studies were conducted in influence positive consumer behavior.
advanced economies. Therefore, as far One of such measures according to
as can be determined very few of such Ohanian (1991) is the use of superstars in
research are conducted in developing advertising to generate publicity and
countries of Africa particularly in Nigeria. attention
This gap in literature is somewhat
alarming given the emerging changes in Literature Review
consumers’ behavioural pattern that seem A Celebrity is person who enjoys
to be a snowball of the pattern in the public recognition by a large share of a
developed economy. In Nigerian, for certain group of people. Friedman &
example, consumers have become more Friedman (1979) defined the term
sophisticated with product demand that “celebrity” as an individual who is known
define consumers ‘self-concept’. This to the public (actor, sports figure,
study, in part, is an effort to bridge this entertainer, etc.). That is the
gap and explore the relevance of celebrity achievements of the celebrity are in areas
endorsement to Nigerian companies. Not other than that of the product class
much research work has been done in endorsed (Johansson & Sparredal, 2002).
Nigeria despite the fact of it being Celebrities appear in public for several
perceived as a potential market for reasons. They appear in public when
celebrity endorsed products. This study fulfilling the demands of their profession;
promises a new perspective of Nigerian attending special celebrity events like
consumers about celebrity endorsement. movie awards; they are part of news item;
Management&Marketing, volume XII, issue 1/2014 43
 
fashion magazines and tabloids, provide celebrities could influence consumers’
second source of information on events of feelings, attitudes and purchase behavior
their private life; and acting as spokes favorably.
people in advertising to promote products There are three main theories of
and services.(Kambitsis et al, 2002, Tom celebrity endorsement in literature: (a)
et.al. , 1992). When celebrities act as The Meaning transfer theory (McCracken,
spokes-people in advertising to lend 1989). This theory is based on the
credence to product awareness and assumption that celebrity endorsers have
possible sales this is referred to celebrity cultural and symbolic meanings which
endorsement. According to Ericsson & could be transferred to the product so
Hakansson (2005) celebrity endorser is endorsed. To adopt this theory the
“any individual who enjoys public company must identify product features
recognition and who uses this recognition that the celebrity also possesses or
on behalf of a consumer good by features of the celebrity that the company
appearing with it in an advertisement”. wants associated with the product, which
There are various categories of the consumers can relate with (Erdogan,
celebrities. They can be categorized 1999; Johansson & Sparredal, 2002). (b)
based work/performance area: The Elaboration likelihood theory (ELM)
entertainers (pop-stars, musicians, (Petty, Cacioppo & Schumann, 1983).
showmen, actors, models, etc.); sports The theory is based on the persuasive
figures, businesspersons or politicians. element of marketing communication
They could also be classified according to (advertising) to influence behavior and
the level of their familiarity (local, national attitude. The theory believes that attitude
or international / global), and their formation is a function of the amount and
demographics (Banytė, Stonkienė, nature of relevant and appropriate
Piligrimienė, 2011). Certain basic information that is available as a result of
attributes attract marketers to the persuasive message received. Therefore,
celebrities; these are beauty, talent, the celebrity endorsement can only be
athleticism, power, etc) which reflect the effective if the receiver’s involvement is
desired attractions of the brands they low as the celebrity effect on attitude is
endorse. more significant (Johansson & Sparredal,
Ericsson & Hakansson (2005) 2002). (c) Three-order hierarchy theory: is
argued that repeated association of a based on learning, dissonance/attribution
brand with a celebrity might ultimately and low-involvement models (Floyd,
lead consumers to think the brand 1999) relating to product differentials and
possesses the attractive qualities that are product involvement. It is a useful theory
similar to the celebrity’s. A purchasing when the consumers are
decision in favour of the brand may also Celebrity endorsement is effective
be made because consumers have only if there are positive links between the
preference for or likeness for the celebrity brand and the celebrity. However,
who endorses it. irrespective of the positive links the
Several reasons had been adduced association is riddled with risks (Till,
in extant literature for the use of 1998). The risk may eventually have
celebrities in advertising. Belch & Belch negative impact on the brand. These risks
(2001) indicate stopping power of the had been classified in extant literature to
celebrities as a good reason. They argued three: (a) celebrity-related risks involving
further that celebrity endorsement celebrity negative publicity arising from
enhances advertising messages, their private lives or professional activities
message recall and brand recognition as (White, Goddard, Wilbur, 2009). There
well as helping to create positive attitudes are various forms of celebrity-related
toward the brand and creating a risks, for example where an athlete is
personality for the endorsed brand. injured or involved in drug related issues
Additional argument put forward is that (extinction risk) or personal life scandal
44 Management&Marketing, volume XII, issue 1/2014
 
(moral danger risk) (Johansson & of valid assertions of the messages. The
Sparredal, 2002). (b) Product-related argument is extended by Aaker and
risks: this will occur when attention shift Meyers (1987) who advocated that
from the brand to the celebrity. This is consumers are more persuaded to buy
referred to as the risk of overshadowing. It advertised brands that are endorsed by
can also be risks of overexposure and knowledgeable celebrity or by celebrity
confusion that is celebrity endorses whose profession is closely linked to the
diverse products and many celebrities brand functions. However, Ohanian
endorsing a brand respectively (Ericsson (1991) posted that the expertise of the
& Hakansson, 2005; Johansson & endorser does not real matter in
Sparredal, 2002). (c) Financial risk is persuading and influencing the
associated with high cost of using consumers. There may be need for expert
celebrities to endorse a brand. The opinion or opinion of persons perceived to
question to be asked is the investment a be knowledgeable about a product partly
worthwhile one (Tandon & Mehrotra because of the nature of the product or
(2005). the need to provide ‘concrete basis of
There are a number of variables knowledge’ about the brand. The crux of
used in extant literature to evaluate the expert opinion is to influence positive
effectiveness of celebrity endorsement attitude toward the endorsed brand.
and its impact on brand. These include Therefore, it is proposed that:
trustworthiness, expertise, attractiveness, H2: The greater the expertise of a
respect and similarity (TEARS). celebrity endorser, the greater his/her
Celebrity Trustworthiness effectiveness in influencing
Trustworthiness can be captured purchasing decisions.
within the context of celebrity Celebrity Attractiveness
endorsement as honesty, integrity, and Langmeyer and Shank (1994),
believability of the celebrity by the define celebrity attractiveness as all
consumers. This elicits confidence in and embracing. It covers not only the physical
acceptance of the celebrity and the or facial beauty, but other embodiments of
inherent messages of the endorser by the beauty such as sportsmanship, charm,
consumers. This in the long run helps to grace, and intelligence. There are
influence consumer’s beliefs, opinions, evidences in extant literature to link
attitudes and purchasing behavior source attractiveness and brand image
(Erdogan, Baker, and Tagg, 2001; (Kamins, 1990). Research has shown the
Ohanian, 1991)). Trustworthiness in relationships between physical attractions
encompassed in credibility source model and evaluations, opinion, brand promises
which belief that level of acceptability of a recall and likeability of a brand (Joseph,
message depends on the the level of 1982; Kahle and Homer (1985). Other
credibility of the source of the message. researchers like Till and Busler (1998)
From the above it is proposed as follows: concluded that attractive celebrity has
H1: The greater the positive effect on consumer attitudes
trustworthiness of a celebrity towards a brand. The potency in
endorser, the greater his/her attractiveness source is its ability to covey
effectiveness on brand positioning. meaning effectively than less attractive
Celebrity Expertise sources. Consequently, brand image is
Expertise has been captured in positively affected by the attractiveness of
literature as authoritativeness, the celebrity. Therefore, it is proposed as
competence and qualification (Magnini, follows:
Honeycutt and Cross, 2008; McCroskey, H3.Celebrity attractiveness has an
1966; Whitehead, 1968). The celebrity indirect and positive effect on brand
level of persuasiveness is enhanced by equity
the expertise he is believed to possess. Celebrity Similarity
This will give the consumers’ confidence
Management&Marketing, volume XII, issue 1/2014 45
 
Similarity is an important concept in values of the celebrities with those of the
marketing communication. It rests on the customers and the brand. Marketing
assumption that consumers find it easy to communication using a celebrity whose
believe and rely on messages from image and values are similar to the brand
sources that share similar characteristics results in higher level of believable
with them. When the source and the messages. Meaning transfer is enhanced
receiver share similar needs, objectives, if there are close match between the
interest and lifestyle, the source is better celebrity and the brand (Kamins and
appreciated and his position easily Gupta, 1994). The messages to be
understood (Kelman, 1961). The bond of delivered within marketing communication
similarity between endorser and the process by the endorser should be related
consumer increases the source level of to his image and the product image
persuasion. This explains why marketers H5: The congruence or fit between
use regular-looking people that the celebrity and the product will have
consumers can relate with (Belch and a significant positive impact on the
Belch, 2001). Therefore, the following is brand image.
proposed: The relationship of the various
H4: The higher the level of variables and their effect is illustrated in
similarity between the celebrity and the model depicted in figure 1. The model
receiver, the higher the positive impact shows the effects and relationships of the
of the celebrity on brand image variables on how the consumers can
Celebrity Match-up emulate the celebrities and how such
One important reason for celebrity influences affect purchasing of the
endorsement is to match the image and product.

Figure 1. Conceptual Model of Celebrities endorsement and consumers’ intention


to purchase

Materials and Methods university located in the southwest part of


Respondents for this research are Nigeria. The research is restricted
undergraduate students in a public consumers of Chi Food limited (a
consumer product company, specializing
46 Management&Marketing, volume XII, issue 1/2014
 
in processed foods and drinks) and 7up parameter is. The survey instrument is
Bottling Company (producers of Pepsi in self-administered with 16 items measured
Nigeria). The choice of the companies on 7-point Likert scale ranging from
and the industries stemmed from the strongly agree (7) to strongly disagree (1).
observed preference of the companies in The research instrument benefited greatly
the use of celebrity endorsements for their from similar instrument in literature
product advertisements. Processed foods particularly the study of Magnini,
and soft drink industries are large Honeycutt and Cross (2008). The
industries with several big companies and instrument was modified consistent with
leading consumer products. For example, the requirements of the study and location
Chivita is a locally processed packed peculiarities for example age of the
drink with substantial size of the market. It respondents, products and the celebrities
is a leading processed packed drink with were included in the instrument.
only one leading competitor. Pepsi on the Of the sampled respondents 158
other hand is also a market leader. It is copies were retrieved, 16 copies were
not only an international brand but a rejected as they were not properly filled,
leading national product with only one while 142 copies were adjudged good and
other national competitor. As shown in the properly filled which form the basis of this
Table 1, the choice of celebrity by the study, this translated to about 65%
companies varies greatly from actors, response rate. Respondents included in
footballers to musicians. the sample have bought the product so
The study made use of survey endorsed by the celebrity and must have
research design. Survey research design seen the adverts. SPSS software
was chosen because conceptually as a package analysis was used for the
descriptive research design is meant to analysis of the data set. The internal
aid collecting of large and small samples consistency of the data was tested with
from a given population (Osuagwu, 2003). Cronbach Alpha. Cronbach Alpha is the
The choice of survey method was most acceptable measures to test
because it suitable to address the reliability of a multi-item scale. The item
research hypothesis in this study. The by item reliability test ranges between
study approach is inline with similar 0.747-0.883 which falls within acceptable
studies (Magnini, Honeycutt Cross, 2008) standard (Hair, Anderson, Tatham and
and survey approach recommended by Black, 1992). This suggests the adequacy
Conart, Mokwa and Varadarajan (1990) of the measurement. To test for construct
involving multi-item measure, self typing validity factor analysis was used in line
and research assessment. with suggestion of Hair, et. al (1992). The
The sample frame for this research suitability of factor analysis for the data
was drawn from a population of was tested using Barlettet’s Test of
consumers of the sampled products Sphercity (p=0.000) and Kaiser-Meyer-
among final year students of Business Olkin (KMO) Measure of Sampling
Administration and Marketing of a public Adequacy was discovered to be within
University, Lagos southwestern part of acceptable limits 0.643 (Hart, Webb and
Nigeria. Lagos is Nigeria’s largest and Jones, 1994)
biggest commercial center with The size of the sample (216) makes
headquarters of all commercial institutions factor analysis suitable. Cronbach’s Alpha
and Nigeria’s former capital. The coefficient as suggested by McColl-
programmes chosen for this study has a Kennedy and Fetter (1999) served as
combined population of two hundred and additional evidence of convergence
sixteen students (business administration validity. Reliability is a necessary
= 140 and marketing 76). The total condition for validity as unreliable
population was used for this study measure lessens correlation between
because the closer the sample size to the research measures (Hair, et. al 1992).
population is the closer the population
Management&Marketing, volume XII, issue 1/2014 47
 
Results and Discussion celebrity path to purchase the product
Structural equation model is used to endorsed. These assumptions have a
test the data collected and test combined effect or path coefficient of 0.22
hypothesis. Generally, the measurement on purchase intention. This is marginally
model fit the data well, and constructs lower than trust-intention to buy
possessed adequate measurement relationship, however, in a saturated
properties of structural equation model. market this could have more than
2
The overall fit of the causal model was marginal implications. While the R value
tested using the structural-equation for trustworthiness is 6.54%. This
approach (Figure 2). The intention is to confirmed H1. That is the findings indicate
determine individually and collectively the that if the consumer can trust the celebrity
effects of celebrity trust, expertise, he will be influenced to emulate and buy
support, relatedness and multiple the product.
contracts on whether the consumers will Hypothesis two indicates that the
emulate the celebrities or purchase the expertise of the celebrity and
product so endorsed by the celebrity. The trustworthiness have similar effect on the
purchase intention of the consumers is tendency to emulate celebrity. This
linked to whether he is willing to emulate suggests that the concern on the
the celebrity or not. The model fit the data characters and integrity of endorsers and
satisfactorily (χ2 (142) = 2.816, df =4, p < corporations strive to dissuade multiple
0.589; NFI = 0.944, CFI = 1.000, RMSEA endorsements in not misplaced. These
= 0.000. variables are connected to influencing
On the trustworthiness of a celebrity consumers purchasing decision. The path
endorser and its effects on consumers coefficient from figure 2 shows that
purchase intention of the products expertise having direct influence of 0.14
2 2
endorsed the path coefficient are 0.23 while the R and adjusted R are 6.98%
and 0.14 for trustworthiness on and 5.08% respectively. Since the values
consumers’ intention to emulate the are positive and significant it can be
celebrity. The study presumed that concluded that the perceived level of
consumers will translate their celebrity expertise of the celebrities’ of the product
trust, his/her judgment on the expertise of has positive effect on the consumer
the celebrity, celebrity support and ability buying intention through consumers’
to relate and associate with celebrity to emulation of celebrity.
emulate and consequently followed the
48 Management&Marketing, volume XII, issue 1/2014
 

Figure 2. Structural Equation Model

Celebrity attractiveness and its the consumer is 0.00 which indicate no


positive effects on consumer purchase relationship. As such the hypothesis is
intension is the subject of hypothesis rejected. A plausible explanation is the
three. Attractiveness is indicated as human tendency not to relate with others
support in Figure 2. A review of Figure 2 to such a level that the individuals identity
shows path coefficient of -0.08, R2 and is lost and important decisions are
adjusted R2 as 6.13% and 6.49% externally determined, more so, by a
respectively. This shows a negative distant celebrity. Celebrities, it seem, are
relationship between attractiveness of the valued for what they are. For the fifth
celebrity and consumer emulation of the hypothesis about the congruence of fit in
celebrity. As such, this hypothesis is indicated in figure 2 as contract the path
rejected. Consumers’ focus it does coefficient is 0.18 and the R2 and
2
appear is more on endorsers’ gifts and adjusted R are 8.16% and 6.43%
skills than physical attraction. Physical respective. This hypothesis is accepted.
attraction may enhance celebrity
endorsement value in terms of influencing Discussion and Implications
product sales if endorsers communicate The findings in this study generally
trust and skillful knowledge of issues confirmed the relationships that exist
related to products. Endorsers’ trust and between celebrity endorsement and
expertise have significant indirect effect consumer intention to buy which have
on consumers purchase intention through implications for brand management and
emulation of celebrities positioning. It indicates the relevance of
Hypotheses four and five talk about strengthening certain aspect of celebrity-
the influence of similarities between the consumer relationship as a theoretical
celebrity and consumer buying intension foundation of understanding the
as well as the congruence of fit between implications of product endorsement by
the celebrity and the product. Similarity is the celebrity. The search for alternative
shown as support in Figure 2. The path and effective ways of communication with
coefficient of the similarity between the consumers in the product saturated
celebrity and possibility of emulation by business environment and the use of
Management&Marketing, volume XII, issue 1/2014 49
 
celebrity should be goal-oriented in form sportsmanship, grace and intelligence;
that corporation secures profitable however, as can be inferred from the
operation. Celebrity endorsement costs study these qualities may actually not
much resource investment and the forceful on their own merit to persuade
consequences of bad endorsement consumers. This shows that consumers
extend beyond financial to corporate may use multiple of attributes to evaluate
image. Indeed, the effect of bad the impact of celebrity endorsement.
endorsement may not wear off in within a Corporations, therefore, must be
year: effects must be put in perspective. cognizance of the fact that attractiveness
The motivation for the use of celebrity must be complemented with other
stem from the possibility of its positively attributes to make meaningful
affecting corporate fortunes through endorsement and sales related impact.
creating and building consumer purchase The conclusion therefore, is that
intention. The consumer must indeed trust companies must be able to gauge the
the celebrity to be influenced by celebrity capacity of the celebrity to project multi-
to buy, that is, endorser must attributes which are consistent and of
communicate trust to consumers group interest to the consumer groups’
for corporation to profit from the requirements on all attributes. This is an
endorsement in terms of sales increase. important requirement that companies
This is particularly important in a country must evaluate the overall fit of the
like Nigeria where celebrities command celebrity with the brand. However,
substantial followings. It is important for celebrity-product-consumer group
the organizations to understand how their consistency maybe “diluted” when the
target consumers relate to the celebrity celebrity endorses several brands at the
endorser. In most cases the motivation of concurrently. The reactions of the
the consumer may not be determined by consumers depend on the whether they
the entertainment content of the advert are concerned about the entertainment
but by the perceived level of expertise content or are intensely attached to the
displayed or the level of expertise the celebrity. Companies must weigh and
celebrity is expected to possess about the make a choice of celebrity that possesses
product. This is easy to determine if the attributes that consumers can relate with.
functions of the products or parts of its Or that some of the attributes of the brand
attributes can be related to the can the linked with the attributes of the
professions of the celebrity. In this case celebrity. Either way it may be easy for
there may be superficial processing of the the consumers to find a similarity between
brand by the influenced consumers, the celebrity and themselves or assumes
perhaps without detail consideration of that the celebrity overall personality fit the
the brand and its attribute. To fulfill these brand and influence his buying behavior.
conditions therefore, companies must be There are a number of managerial
careful in selection of the celebrity. The implications of this study: one is the fact
celebrity must not only be trusted by there are some forms relationships
consumers they must also be seen to between celebrity and consumers of a
possess some level of expertise or some product. This attachment may be as a
of the attributes of the brand is related to result of the celebrity public image or the
the professional callings of the celebrity. fact that the consumers can find some
There is a caveat in celebrity resemblance between his own attributes
endorsement; the choice of a celebrity on and the celebrity. This relationship can be
the strength of attractions may not used as value transfer medium and can
translate to product purchase. Endorsers be exploited by the marketers to enhance
who are in difficulty in identifying with the product standing with the consumers,
product endorsed may lead to loss rather particularly, in intense consumer market
than profit for companies. Attractiveness competition like Nigeria. Two the choice
could be interpreted to include charms, of the right celebrity could have serious
50 Management&Marketing, volume XII, issue 1/2014
 
marketing implications for the marketers. This study is limited to celebrity
Attractiveness is one the easiest endorsement and its impact on consumer
attributes of the celebrity that can be used buying behavior. Future studies should
in selecting the celebrity. Choice of exploit the implications of multiple
celebrity must rest on those the endorsements by the celebrity on the
consumers’ respect and trust not just brand so endorsed. Future studies must
attractiveness. Marketers must develop a also explore the width and depth impact
number of criteria to guide the selection of of celebrity on the products they
celebrity for their products. There are endorsed. More importantly, is the need
celebrities with depth of attraction while to extend studies on celebrity
others have width of attraction depend on endorsement to industrial products and
the profession. These may be parts of the determine the endorsement capacity in a
criteria in selection its real impact must be developing economy like Nigeria.
investigated further.

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