FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

--------***--------

GRADUATION THESIS
Major: International Business Administration

THE IMPACTS OF CELEBRITY ENDORSEMENT

ON UNIVERSITY STUDENTS’ PURCHASE
INTENTION IN HANOI DURING COVID-19
PERIOD: A STUDY IN VIETNAMESE
FMCG INDUSTRY

Student Name : Nguyen Ha My

Student ID : 1712280041
Class : English 1 – Advanced Program
Batch : 56
Supervisor : Assoc. Prof. Dr. Le Thai Phong

Hanoi, July 2021

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ACKNOWLEDGEMENT
For me, working on this dissertation has been a life-changing experience. I would
like to thank everyone who has continued to support me during this study; without
them, this would not have been possible.

First and foremost, I would like to thank Assoc. Prof. Dr. Le Thai Phong, my
dissertation supervisor and also a professor during my thesis, for his patience and
support during this process. His suggestions always provided me with the motivation
I needed to bring my study ideas to fruition. I was grateful for the chance to work
under his supervision.

Besides, I am grateful to my family and friends for their never ending support and
faith in me. They have been the most patient people during these last months and
always helped me to work toward my goals.

Last but not least, I am so grateful for all individuals who gladly participated in the
survey that helps me dig deeper into the knowledge to conclude my findings.
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ABSTRACT
The present thesis is a research about a marketing strategy: celebrity endorsement.
Despite the fact that celebrity endorsement brings up some risks, especially during
the COVID-19 crisis, it has been used quite extensively in the present era and it is a
method to reach competitive advantage by companies.

This dissertation focuses on examining the relationship among a set of variables: (1)
credibility, (2) attractiveness, (3) multiple celebrities and (4) multiple product
celebrity that were identified during the literature review and consumers purchasing
intentions. This relationship will spotlight Vietnamese University students in Hanoi
and will use the Vietnamese advertising industry as a contextualization, due to the
fact that it was identified a lack of information about celebrity endorsement overall
strategy in Vietnam.

The study in hand begins with a literature review which provides an insight into the
research done by previous authors followed by an overview of Vietnamese
advertising campaigns in 2020. A quantitative approach has been adopted to
investigate the relationship between the dependent and independent variables and 255
respondents have participated in the survey.

All of the independent variables showed a positive impact on University customers'

purchase intentions, however, one of them was quite low, according to the findings.
Other findings gained from evaluating the collected data yielded some highly
fascinating facts, which were described in the conclusion, as well as management
implications related to it.

Keywords: celebrity endorsement, purchase intentions, credibility, attractiveness,

multiple celebrities, multiple products celebrity
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CONTENTS
ACKNOWLEDGEMENT ........................................................................................ i
ABSTRACT .............................................................................................................. ii
LIST OF ABBREVIATIONS...................................................................................v
LIST OF TABLES .................................................................................................. vi
LIST OF FIGURES ............................................................................................... vii
CHAPTER 1: INTRODUCTION ............................................................................1
1.1 Research rationale ...........................................................................................1
1.2 Research objectives and scopes ......................................................................2
1.2.1 Research objectives and questions ..............................................................2
1.2.2 Research scope ............................................................................................2
1.3 Research methodology.....................................................................................3
1.4 Research process ..............................................................................................3
1.5 Research structure ...........................................................................................4
CHAPTER 2: LITERATURE REVIEW ................................................................6
2.1 Celebrity Endorsement ...................................................................................6
2.2 Models on celebrity endorsement strategy ....................................................9
2.2.1 Source Credibility........................................................................................9
2.2.2 Source Attractiveness ................................................................................12
2.2.3 Match-up Hypothesis .................................................................................15
2.2.4 Meaning Transfer model ...........................................................................16
2.3 Single vs. Multiple product and Multiple Celebrity Endorsement ...........19
2.4 Celebrity endorsement risk theories ............................................................21
2.4.1 Negative information .................................................................................21
2.4.2 Overshadowing ..........................................................................................22
2.4.3 Overexposure .............................................................................................22
2.4.4 Financial risk ............................................................................................23
2.5 Purchase intentions ........................................................................................23
2.6 Customer decision-making process ..............................................................25
2.7 Overview of FMCG industry in Vietnam ....................................................27
2.7.1 FMCG industry charactertistics ................................................................27
2.7.2 Vietnamese FMCG industry development during COVID-19 period .......29
2.7.3 Vietnamese customer purchasing behaviours ...........................................32
CHAPTER 3: RESEARCH METHODOLOGY .................................................34
3.1 Research model and hypotheses ...................................................................34
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3.1.1 Celebrity’s Credibility ...............................................................................34

3.1.2 Celebrity’s Attractiveness..........................................................................34
3.1.3 Multiple Celebrities ...................................................................................35
3.1.4 Multiple Product Celebrity ........................................................................35
3.2 Conceptual Framework.................................................................................36
3.3 Research approach ........................................................................................37
3.4 Sampling .........................................................................................................39
3.4.1 Questionnaire design .................................................................................40
3.4.2 Sample size ................................................................................................42
3.5 Data Collection ...............................................................................................43
CHAPTER 4: FINDINGS AND DISCUSSION ...................................................44
4.1 Results Analysis .............................................................................................44
4.1.1 Reliability analysis ....................................................................................44
4.1.2 Demographic profile .................................................................................44
4.1.3 Descriptive statistics..................................................................................46
4.1.4 Exploratory factor analysis .......................................................................48
4.1.5 Correlation coefficient ..............................................................................51
4.1.6 Regression analysis and hypotheses testing ..............................................52
4.2 Discussion .......................................................................................................57
CHAPTER 5: RECOMMENDATIONS AND CONCLUSION .........................59
5.1 Outlook of FMCG ..........................................................................................59
5.2 Limitations of the study.................................................................................63
5.3 Recommendations for future research ........................................................64
5.4 Practical Implications ....................................................................................65
5.5 Contributions .................................................................................................66
5.6 Conclusion ......................................................................................................67
REFERENCES ........................................................................................................69
APPENDIX ............................................................................................................. vii
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LIST OF ABBREVIATIONS

CE Celebrity Endorsement

E-commerce Electronic Commerce

EFA Exploratory Factor Analysis

FMCG Fast Moving Consumer Goods

OTC Over the counter

SPSS Statistical Package for the Social Sciences

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LIST OF TABLES
Table 2.1 Celebrity Endorsement theories and models sum-up ...............................18
Table 3.1 Measuring scales and references for the proposed constructs ..................41
Table 4.1 Cronbach's Alpha Coefficients .................................................................44
Table 4.2. Demographic profile of respondents ........................................................45
Table 4.3 Descriptive Statistics .................................................................................46
Table 4.4. Exploratory Factor Analysis ....................................................................49
Table 4.5 Correlation Coefficient .............................................................................52
Table 4.6 Model Summary ........................................................................................53
Table 4.7. ANOVAa ..................................................................................................54
Table 4.8 Coefficients ...............................................................................................55
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LIST OF FIGURES

Figure 1.1 Research process (Author, 2021)...............................................................4

Figure 2.1 Classical Conditioning Model and Its Application to Marketing
Communications (Erdogan, 1999) ..............................................................................7
Figure 2.2 Source Credibility Model (Ohanian, 1990) .............................................12
Figure 2.3 Meaning Transfer Model of McCracken (McCracken, 1989).................17
Figure 2.4 Steps in the consumer decision-making process (Lamb et al., 2004) .....25
Figure 2.5 Major Segments in FMCG (Kantar, 2019) ..............................................28
Figure 2.6 Percent of Value Share in total FMCG ....................................................30
(FMCG Report Vietnam, 2020) ................................................................................30
Figure 2.7 Total FMCG value spend year-on-year change .......................................31
(FMCG Report Vietnam, 2020) ................................................................................31
Figure 3.1 Conceptual Framework (Author, 2021)...................................................36
Figure 3.2 The research ‘onion' developed by Saunders et al. (2020) ......................37
Figure 3.3 Examples of response options in Likert scales (Krabbe, 2017) ..............40
Figure 5.1 The change in consumer tastes of FMCG products between the period of
stabilization and the period of initial impact of COVID-19 .....................................60
(Kantar, 2020) ...........................................................................................................60
Figure 5.2. Modern shopping channels are gaining the upper hand when building
trust with shoppers (Kantar, 2020) ............................................................................61
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CHAPTER 1: INTRODUCTION
1.1 Research rationale

Despite the effect of COVID-19, a majority of Vietnamese consumers are optimistic

about the domestic economy and intend to increase their living expenditures in 2021
(Deloitte, 2020). Thus, the retailing market is expected to grow significantly this year,
especially FMCG industry.

It was assumed that the cooperation of celebrities and brands transferred the value of
these individuals to the brands. The brands then inherit such values and build
credibility with the public (Ambroise and Albert, 2019). Notwithstanding this
strategy has been adopted for more than 50 years (Hovland & Weiss, 1951), today, it
is still recorded as one of the most effective and popular choices for numerous
marketers. There is thus a relationship between celebrity endorsement and customers'
purchase intention. Moreover, each different factor of celebrity endorsement may
have different impacts on customers’ decisions.

This research has been motivated by several previous studies, in which this
relationship was investigated in different contexts. However, to the best knowledge
of the researcher, this topic has not been thoroughly examined in the context of
Vietnam and especially Vietnamese FMCG industry. In addition, Zafar and Rafique
(2012) suggested that it is easy for brands to get a celebrity to endorse their products,
but endorsing them in a proper, consistent way remains to be challenging. Vietnamese
companies thus lack knowledge about how customers' perceptions can be changed
through effective endorsement strategies. To fill these limitations, this study aims to
provide with helpful findings about the relationship between celebrity endorsement
and University students’ purchase intention in Vietnamese FMCG market during the
COVID-19 epidemic.

Regarding the originality and value of this research, it is expected that this study will
contribute to the theories of celebrity endorsement and fill in the shortcomings of
previous research. Besides, as it is the first time this research topic has been
investigated in Vietnamese FMCG context, companies may have insightful
information about their customers and take it as the basis for their marketing
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activities. Moreover, the findings gained from this study also help marketers to
understand how customers respond to different attributes of celebrity endorsers, from
which they adopt this strategy in an appropriate and effective way.

1.2 Research objectives and scopes

1.2.1 Research objectives and questions

The research question for this study is: “What are the impacts of celebrity
endorsements on University students’ purchase intention in Vietnamese FMCG
industry?” and “How different characteristics of celebrity endorsement affect
University students’ purchase intention of FMCG?”.

As previously noted, the celebrity endorsement topic is extensively established in

academic literature; nevertheless, many of those research yielded contradictory
results, particularly in terms of celebrity endorsement's effect on consumer purchase
intentions. Thus, the main purpose of this study is to investigate the relationship of
credibility, attractiveness, as well as multiple endorsements and multiple products
endorsements on consumers purchasing intentions.

This research aims at answering the research question through:

(1) Investigating how different characteristics of Celebrity Endorsement affect

University students’ purchasing intentions of FMCG;

(2) Gaining theoretical contribution to fill in the gaps of previous studies;

(3) Gaining practical implications to help Vietnamese marketers have an insightful

understanding when adopting University students in the promotion of FMCG.

1.2.2 Research scope

Major emphasis of this research is to determine how marketers are using celebrities
to change consumers buying pattern and how are they creating a good image by
selecting strong publicly desirable celebrities from February 2020 to January 2021,
when the COVID-19 pandemic was complicated, only in Hanoi. The researcher
identifies the key factors which may influence University students’ buying behavior
through celebrity endorsement.
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1.3 Research methodology

The study tries to find out the influence of celebrity endorsement on University
student purchasing intentions of FMCG in Hanoi city. The study focuses on
understanding the University students buying behavior based on different factors
such as age, gender, educational background, income levels, and shopping habits. For
the research, various approaches have been used to keep research on track for
effective and relevant outcomes. In order to collect primary source of information
from University living in Hanoi, Vietnam a formally structured questionnaire is
designed and divided into classification and objective part. The respondents for the
study were chosen via convenience sampling by the researcher. Qualitative analysis
has been done referring to existing concepts, theories, data, articles, and various other
research works related with the influence of celebrity endorsement on purchase of
FMCG.

There are some limitations in the study regarding a small sample size of 255. The
samples are also collected using convenience method, and it is conducted within a
limited time frame.

1.4 Research process

To begin, a study topic of interest is chosen, which is marketing. A preliminary
literature study is done to identify developing topics in the field of marketing and the
research deficit in this research area in order to narrow down the research subject for
this thesis. The study subject is chosen and research questions are formulated based
on the preliminary literature evaluation. As a result, a theoretical framework and
assumptions are established. To be more specific, a literature review is conducted to
clarify important ideas and justify variables influencing the purchase intentions of
University students studied in this study, resulting in the formation of research
hypotheses.

The study design concerns the research technique used - quantitative approach – as
well as the research model and how data is collected and analyzed. A pilot study is
conducted to assess the feasibility of the research and the questionnaire's
appropriateness. After collecting 100 observations, the data will be analyzed to
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determine the questionnaire's appropriateness. After the questionnaire has been

updated, data collecting will begin. Following that, the data is analyzed in order to
allow discussion of the findings, and recommendations and conclusions are formed.
The research process which consists of eight stages or is depicted in a sequential order
in Figure 1.1.

Selection of research area

Writing up literature review

Research question formulation

Development of theoretical framework and research hypotheses

Research design, design of surveys and interview questions

Data collection

Data analysis and discussion

Recommendation and conclusions

Figure 1.1 Research process (Author, 2021)

1.5 Research structure

Five chapters compose this research and a short synopsis of each is given below:

Chapter 1: This chapter provides a background to the topic, consisting of an

explanation concerning the relevance of using celebrity endorsement in the
advertising industry but also the recent concerns about it. The purpose of this study
is also explained and the structure of the thesis is presented.

Chapter 2: The literature review is divided in two parts: the first one is related with
the celebrity endorsement theme, addressing several dimensions such as credibility
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and attractiveness models, multiple uses of celebrities and its effects. The second part
of this chapter makes a review on consumers purchasing decisions, explaining the
decision-making process and its steps.

Chapter 3: The methodology chapter includes the research questions and conceptual
framework, but also presents a description of the data sources, data collection
methods and techniques, as well as questionnaire design and measurement scales.
The research technique (quantitative), hypotheses, sample method, data collecting
method, questionnaire design, and data analysis method connected with data
collection are all covered in the third chapter.

Chapter 4: In the analysis and results chapter, the main findings will be presented
followed by an objective report in which the results will be discussed. Following the
collection of primary data, IBM SPSS software is used to perform a variety of
analyses, including descriptive, reliability, exploratory factor analysis, Pearson
correlation coefficient, and regression analysis.

Chapter 5: Finally, it is presented the outlook of FMCG industry in Vietnam, the

major conclusion of the study but also the existing limitations and recommendations
for further research will also be posted.
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CHAPTER 2: LITERATURE REVIEW

2.1 Celebrity Endorsement

According to McCracken (1989), a celebrity is any well-known person who is

recognized by society and considered as a role model for the general public. Kurzman
et al. (2007), on the other hand, saw celebrity as a feature of modern society that
makes an effect on those who pass by. Companies seek to exploit celebrities' public
awareness in marketing efforts to be eye-catching and remarkable to their target
audiences, since celebrities are increasingly influencing customers' views
(McNamara, 2009; Rachbini, 2018).

Celebrity endorser, as defined by McCracken (1989, p. 310), is 'any individual who

enjoys public recognition and who uses this recognition on behalf of a consumer good
by appearing with it in an advertisement.' In the same research, he stated that celebrity
endorsement is the association of celebrities' recognition, fame and image with
products and brands by promoting or advertising these brands through their
appearance.

According to Solomon et al. (2016), the process by which consumers' attitudes and
intents change in response to external circumstances occurs when two stimuli are
coupled together, one of which can elicit a reaction while the other cannot. Because
the two stimuli are linked, the second stimulus creates the same reaction as the first
stimulus over time. When it comes to endorsement, once customers are exposed to
the relationship between an endorser (unconditional stimulus) and a product
(conditional stimulus), the good feeling for endorsers will be transferred to the brand
and product (conditional response).
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Unconditioned Stimulus Unconditioned Response

Conditioned Stimulus Contioned Response

Application to Marketing Communications

Endorser Positive Feelings and Perceptions

Promoted Product Positive Feelings and Perceptions

Figure 2.1 Classical Conditioning Model and Its Application to Marketing

Communications (Erdogan, 1999)

This viewpoint is related to McCracken's (1989) 'meaning transfer' theory, according

to which celebrity endorsers have traits that embody the brand personality, and these
traits subsequently flow from the celebrity to the goods, and from the goods to the
customers. Consumers are easily convinced since these folks have such a strong
influence on their thinking. As a result, celebrity endorsement evolves into an
enticing, successful, and powerful marketing strategy.

Numerous studies emphasised that celebrity endorsers seem to have a greater impact
on consumers' mind than non-celebrity endorsers. According to Pugazhenthi and
Ravindran (2013), as celebrities catch the attention of people easily and their images
are associated with the endorsed products, these products thus become popular, easy
to be recognised and outstanding compared to other competitors. Kaikati (1987)
suggested that celebrities have the ability to draw customers' concentration among a
cluster of competing ads. Zafar and Rafique (2012) contended that the use of
celebrities in advertising makes the ads become more memorable and easier to
capture customers' attention. When being applied in a strategic way, celebrity
endorsement may positively influence marketing effectiveness, brand awareness,
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customers' attitude, customers' purchase intention and even their buying decisions
(Hollensen and Schimmelpfennig, 2013; Osei-frimpong et al., 2019).

However, the effectiveness of celebrity endorsement remains to be a debatable topic

as there was some literature showing opposite arguments. Zahaf and Anderson (2008)
suggested that the attributes of celebrities have no direct impact on consumers'
intention despite an increase in their willingness-to-buy. Meanwhile, another study
conducted by Silvera and Austad (2003) implied that the effectiveness of celebrity
endorsement is limited and varies among different cultural backgrounds.

Though the cost for celebrity endorsement is extremely high, success and
effectiveness are not always ensured as celebrities come with risks. Firstly, if
celebrity endorsement is adopted irrelevantly, brands will be overshadowed by the
celebrities. Ilicic and Webster (2014) suggested that when celebrities show a weak
linkage with the brands or the products, when viewing an advertisement, customers
tend to focus on the celebrities while the attitude towards the brands is scarce. Thus,
Cooper (1984) claimed that in order for products to grab people's attention, the
products or brands must be the star and the center of the advertisement, not
celebrities. Meanwhile, Zafar and Rafique (2012) recommended companies to have
clear scopes be mindful while choosing celebrities endorsing their products, and this
collaboration must be a win-win that both partners gain benefits and values. Another
risk related to celebrity endorsement is the negative publicity that unexpectedly
happens. For instance, when famous people suddenly change their images or commit
in an immoral situation, their fame may drop and their credibility to the public may
decrease at the same time (Cooper, 1984). According to Erdogan (1999), when the
perception of consumers towards celebrities change due to negative information, their
perception towards the endorsed products and brands will also be affected.

The factors of celebrity endorsement that directly or indirectly influence customers’

purchase intention are divided into two main types, which are also the two popular
theories and have been investigated by several studies before. These two theories are
source credibility and source attractiveness, which are also generally known as the
source theories or source effects.
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2.2 Models on celebrity endorsement strategy

It is not simple to find the right celebrity to promote a product or company. Many
studies have been conducted to aid in the development of a guideline model for
selecting the endorser. In 1953, Carl Hovland and his colleagues produced the Source
Credibility Model, which was one of the first models. Following that, the Source
Attractiveness Model (McGuire 1985), the Product Match-Up Hypothesis (Forkan
1980, Kamins 1989), and the Meaning Transfer Model were all enhanced
(McCracken 1989). To date, the models listed above have served as the foundation
and backbone for explaining the efficacy of celebrity endorsement, and have played
a critical part in the development of our understanding of the phenomenon.

2.2.1 Source Credibility

Several research, including Hovland and Weiss (1951) and McCracken (1989), and
Liu et al. (2007), have explored source credibility theory in the past. Customers see
a brand as having higher quality when it is supported by a trustworthy source (Osei-
frimpong, 2019). Furthermore, trustworthiness affects the brand image as well as
customer attitudes toward advertisements and products (Tripp et al., 1994). The
source credibility model is said to be based on two major factors: trustworthiness and
expertise. Previous research has found that trustworthy celebrities are more
persuasive than untrustworthy celebrities (Priester and Petty, 2003), while the
expertise of the famous endorsers tends to have a positive relationship with the
attitude and intention to purchase of the customers (Schouten et al., 2019).

A “communicator's favorable traits that later affect the receiver's perception of the
message” is described as source credibility (Hovland and Weiss 1951; Ohanian
1991). An endorser with important credibility source elements may significantly
enhance a consumer's purchase intentions and can also impact their views, opinions,
attitudes, and actions through a process called internalization (Liu et al., 2007). This
happens when receivers accept a source of influence in terms of their personal
attitudes and value systems (Erdogan 1999), that is, when the receiver learns and
accepts the concept of a credible speaker, because he supposes that the information
provided represents an accurate position on the issue.
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When it has been shown that credible endorsers and their personal sources can
increase and influence consumers purchase intentions (Gotlieb and Sarel 1991), and
are even more persuasive when the consumer has not yet learned much about a
product or formed an opinion about it (Beltramini and Sirsi 1992), it may be a way
to bring higher levels of believability into an advertising message (Beltramini and
Sirsi 1992).

According to the source credibility model, the efficacy of a communication is

determined by two factors: the endorser's perceived competence and trustworthiness
(Dholakia and Stemthai 1977; Hovland, et al. 1953; Hovland and Weiss 1951;
Ohanian 1991; Solomon 1996). Expertise is defined as "the perceived degree of
knowledge, experience, or skills possessed by an endorser" (Hovland et al. 1953),
and is thus seen as a reliable source of information (Roozen, 2008). According to
Ohanian (1991), a celebrity's perceived knowledge is more essential in explaining
purchasing intentions and carries more persuasiveness than their attractiveness and
trustworthiness in the eyes of customers.

Ohanian (1990) defines trustworthiness as "the degree of trust consumers have in a

communicator's purpose to transmit the statements s/he thinks most valid." According
to Erdogan et al. (2001), trustworthiness is defined as "an endorser's honesty,
integrity, and credibility as viewed by the target audience." Advertisers invest on the
attribute of trustworthiness endorsers, choosing people who are widely regarded as
honest, believable, and trustworthy (Shimp 1997). Miller and Baseheart (1969)
conducted an experiment on the influence of trustworthiness on attitude change and
discovered that when the perceived communicator's trustworthiness was high,
attitude change was more likely to occur. Friedman and Friedman (1976); Friedman,
Santeramo, and Traina (1978) discovered that trustworthiness was highly correlated
with the amount of knowledge of the source, the attractiveness of the source, and the
perceived resemblance of the respondent to the source. This final point has also been
validated by Desphande and Stayman (1994), who argue that an endorser's ethnic
status influences their trustworthiness, and that these interactions occur because
people trust people who are similar to them. One managerial implication of their
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results is that ethnic background must be carefully examined when targeting certain
ethnic groups (e.g., Africans, Europeans, and Asians).

The attractiveness of the communication source, in addition to reliability and

competence, can improve the influence of the message transmitted (Canning and
West, n.d). The source's attractiveness is determined by whether it is sophisticated,
gorgeous, elegant, sensual, and appealing (Ohanian 1990). As a result, source
credibility is divided into three categories: competence, trustworthiness, and
attractiveness. What is less apparent is which elements are more essential and how
they influence a consumer's attitude, opinion shift, and purchase intention. To analyze
a celebrity endorser's perceived competence, trustworthiness, and beauty, Ohanian
(1990) created a tri-component measure of credibility. According to Pornpitakpan
(2004), trustworthiness and expertise may play distinct roles in influencing attitude
development and transformation, and the three sources of credibility may contribute
to source effectiveness in different ways.

Although it is an essential aspect to consider when choosing a celebrity endorsement,

source credibility is not the only factor to consider (Erdogan, 1999). The complexity
of the endorser's iconic traits has not been fully captured in this method, and
credibility alone cannot explain all of the impacts supplied by the endorser
(McCracken, 1989). Having said that, it is legitimate to ask whether being a celebrity
enhances credibility, and the answer is no. The truth is that, among other factors,
credibility boosts desire to buy, but the celebrity element alone does not. On the other
hand, it does not mean that a celebrity cannot bring credibility to the product and if
the celebrity is seen as trustworthy, similar, and credible, then that effect may be
transferred to the willingness-to-buy (Zahaf and Anderson, 2008).
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Similarity Expert

Familiarity Attractiveness Expertise Experienced

Likeability Knowledgeable

Qualified

Skilled

Trustworthiness

Dependable Honest Reliable Sincere Trustworthy

Figure 2.2 Source Credibility Model (Ohanian, 1990)

2.2.2 Source Attractiveness

It is for no coincidence that most advertisements use attractive people (Erdogan

1999), once consumers tend to form positive stereotypes about such people. In
addition, research has proven that physically attractive communicators are more
successful at changing beliefs (Baker and Churchill 1977; Chaiken 1979; Debevec
and Keman 1984) and generating purchase intentions (Friedman et al. 1976;
Petroshius and Crocker 1989; Petty and Cacioppo 1980) than their unattractive
counterparts.

Physical qualities such as resemblance, familiarity, and likeability, which are key
elements in an initial evaluation of another person, are more connected to source
attractiveness and its efficacy (Ohanian, 1990; McGuire 1985). Similarity is defined
by Belch and Belch (2001) as "a perceived likeness between the source and the
recipient of the message," with the implication that consumers are more easily
persuaded by messages from people with whom they have a sense of
similarity.Familiarity is considered to be “the level of knowledge a celebrity
possesses of a brand” (Belch and Belch, 2001) and likeability as “affection for the
source as a result of the source's physical appearance and behaviors” (Erdogan 1999).
 13

In sum, if consumers perceive a celebrity endorser being similar to them, familiar and
they even also like that celebrity, consumers will tend to find the celebrity more
attractive (Amos, Holmes and Strutton, 2008).

According to Cohen and Golden (1972), the physical beauty of a communicator

influences the efficacy of persuasive communication through a process known as
identification, in which a message from an attractive source is accepted as a
consequence of a desire to identify with such endorsers. This process is also linked
to celebrities' impact on today's customers, which may be explained by their function
as referents. Celebrities have been elevated to that position because they exhibit
distinguishing characteristics, and their fame and recognition drive the public's
acceptance or desire to follow their personalities, lifestyles, looks, and behaviors. In
this sense, consumers consider celebrities to be referents, which are real or imagined
people who are thought to have a major impact on a person's judgments, ambitions,
or conduct (Choi and Rifon, 2007).

However, beauty is not just determined by physical features - though they are
essential - but also by other virtues that recipients may see in endorsers' intellectual
abilities, personality traits, or lifestyle characteristics (Erdogan 1999).

Kahle and Homer (1985) used a single product, Edge razors, to alter two factors:
celebrity physical beauty and likeability, and then evaluated attitudes and purchase
intentions. Participants who were exposed to an attractive celebrity enjoyed the
product more than those who were exposed to an ugly celebrity, according to the
findings. In terms of brand memory, it was higher in both beautiful and liked celebrity
scenarios.

According to the findings, an attractive celebrity generated more purchase intentions

than an ugly celebrity, but a surprising finding revealed that an unlikeable celebrity
generated more purchase intentions than a liked celebrity. Familiarity refers to the
endorser's understanding of the source (McGuire, 1985) or the source's knowledge of
the endorser (McGuire, 1985). (Biswas et al., 2006). The degree to which the source
resembles the receiver is referred to as similarity (McGuire, 1985). The attraction of
a source due to its physical beauty, personality, or behaviors is known as likeability
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(McGuire, 1985). Friedman and Friedman (1979) backed up the idea that celebrities
who are well-liked by the general public are more likely to be successful endorsers.
Other research have found that likeability is not limited to physical appearance but
also includes intangible characteristics that might influence customers' perceptions of
companies and products (Kok Wei and Li, 2013). In general, any source that is well-
known, comparable, or well-liked by the public is compelling and well-accepted.

Chen and Huddleston (2009) suggested that attractive celebrities is likely to be more
effective in endorsing goods or services that involve attractiveness. Since this topic
will be investigated in the context of Vietnamese FMCG industry, where beauty
products are competing fiercely, physical beauty turns out to be a critical factor.
Baker and Churchill (1977), however, found that while attractiveness was effective
in increasing positive advertisement evaluations, it was not effective in producing
stronger purchase intentions. Caballero, et al. (1989) and Till and Busler (1998)
studies keep the idea presented by Baker and Churchill, that positive feelings towards
advertising and products is not necessarily transferred into a behavior or purchase
intention. Celebrity endorsement appears to work on the cognitive and emotive
components of attitudes rather than the behavioral components, which might explain
why celebrity endorsers have little influence on purchase intentions (Baker and
Churchill, 1977; Fireworker and Friedman, 1977).

To summarize the influence of source attractiveness, the attribute attractiveness

relates to the endorser's physical appearance, personality, likeability, and
resemblance, and it is utilized to produce successful communications (Ohanian,
1990). It has been proven that attractive celebrity endorsers improve views about
advertising and companies, but it has yet to be proven if they can induce buy
intentions. The concept of endorser attractiveness is undoubtedly important in the
context of celebrity endorsement. The nature and extent of the attractiveness
construct, on the other hand, remain unknown, and therefore are worthy of further
investigation.
 15

2.2.3 Match-up Hypothesis

Previous study has revealed that the efficacy of endorsement varies by product
(Friedman, 1979; Atkin and Block 1983), with certain endorsers more suited to a
particular product than others (Friedman, 1979; Atkin and Block 1983). The match-
up hypothesis was created to codify the concept of a fit between an endorser and a
product (Forkan 1980, Kamins 1989).

For efficient communication, the match-up theory says that the signals given by the
celebrity image and the product message should coincide (Erdogan 1999). To put it
another way, the effectiveness of a message is contingent on the existence of a
relationship and a fit between the endorsing celebrity and the endorsed brand (Till
and Busler 1998). Furthermore, advertising must match three elements: the
product/brand image, the celebrity's personality, and the target demographic, so that
an effective message can be established. According to Friedman and Friedman
(1979), the higher the amount of endorsement effectiveness, the better the match
between the celebrity and the recommended brand is regarded by customers.

The match-up hypothesis has been explained using attractiveness as the key criteria
(Kahle and Homer, 1985; Kamins, 1990). When a celebrity's physical beauty matches
that of the promoted product, the match-up theory is partially proven, and the product
and advertisement ratings should improve (Kahle and Homer, 1985). This is why
many personal care products are endorsed by beautiful celebrities (Garcia, 2009).

The match-up variables, on the other hand, are not consistent across all studies. Till
and Busler (1998, 2000) looked at attractiveness vs expertise as a relevant match-up
factor and found a general attractiveness impact on brand attitude and purchase
intentions, but no match-up effect, suggesting that expertise is better for matching
items with celebrity endorsers.

If the brand and the celebrity are incompatible, the audience will remember the
celebrity rather than the product (Byrne et al., 2003), resulting in the so-called
"vampire effect," in which the celebrity drains the product's life-blood and dries it out
(Evans, 1988). Furthermore, if the audience sees a lack of connection, customers may
feel that the celebrity has been lavishly compensated to support the product or service
 16

(Erdogan, 1999), and the message sent to the consumer may be ineffective (Huston,
Ouville and Willis 2002). Michael Jordan's efficacy as a celebrity endorser is better
when promoting items relevant to his sports field, such as Gatorade or Nike, than
when endorsing products unrelated to his athletic prowess, such as WorldCom
Communications, according to Till and Busler (1998). Another example is golfer
Tiger Woods, who, despite being seen as an appealing source, would not be
anticipated to increase the value of basketball shoes or stimulate purchase intents if
he sponsored them (Sawatari, 2005).

Although the Match-up Hypothesis corrects some of the flaws in the source
effectiveness model, which claimed that any celebrity who is beautiful, credible,
and/or liked can sell any product, it still ignores the cultural connotations of celebrity
endorsers (Erdogan, 1999).

2.2.4 Meaning Transfer model

According to McCracken (1989), a combination of beauty and skill isn't enough to

get effective sponsorships. Erdogan (1999) also claims that neither source credibility
nor beauty, nor the match-up theory, are suitable assessment techniques for picking
the best endorser. Furthermore, the author believes that “for the source model's goal,
any celebrity should function as a compelling source for any advertising message as
long as the credibility and attractiveness requirements are satisfied.”

Furthermore, according to McCracken (1989), the models only make claims about
the message sender's trustworthiness and attractiveness, and do not investigate the
endorser's function as a message medium. As a result, a new model – the meaning
transfer model – has been developed to address the endorsement process from a
cultural standpoint, proposing that celebrity endorsers are special cases of meaning
transfer: the endorser's effectiveness is based in part on the meanings that he or she
brings to the endorsement process (McCracken, 1989). He explains that there are
numerous cultural meanings in the world, and that celebrities are constantly
developing their own images, which are accumulations of meanings, making them
unique and allowing them to transfer those images to the products they endorse, due
to the roles they play in their careers.
 17

Consumers may believe that some of the meanings represented by celebrities are
important to their ideal self-image, and may mimic their styles/behaviors by
purchasing products promoted by celebrities in the hopes of becoming similar to
them. Consumers have a preconceived picture of a celebrity, as Atkin and Block
(1983) shown, and this image may be transferred to the brand. In this regard, celebrity
pictures play a significant influence in the endorsement process.

Figure 2.3 explains McCraken's model, showing that there is a conventional path for
the movement of cultural meaning in consumer societies. This process involves three
stages:

1. The formation of celebrity’s image

2. Transfer of meaning from celebrity to product

3. Transfer of meaning from product to consumers

In stage 1, practitioners have access to a special category of individuals – celebrities

– charged with detailed and powerful meanings drowned from their public persona.
As stated before, celebrities have particular configurations of meanings that are
drawn from the roles they assume in their careers.

Figure 2.3 Meaning Transfer Model of McCracken (McCracken, 1989)

The initial step in stage 2 is to determine the symbolic characteristics desired for the
product, followed by selecting a celebrity who fits the desired symbolic properties
 18

and implying fundamental resemblance between the celebrity and the product. An
advertising campaign must identify and communicate these meanings to the product
after a celebrity has been picked. It's the point at which the product takes on a
personality when the meanings of celebrities are transferred.

In stage 3, the meanings are transferred from the product to the consumer where the
properties of the product become the properties of the consumer, thereby rendering
the process of transfer of the meaning from the celebrity to the consumer complete
(McCraken, 1989).

This model suggests that companies must deeply investigate the real meanings that
are desirable for their product and later on search for the right celebrity, so they can
not only guarantee the fit between product and celebrity, but also assure the
effectiveness of the advertisement (Garcia, 2009).

LangMeyer and Walker (1991) put this concept to the test, and their findings revealed
that the symbolic connotations carried by celebrities like Cher and Madonna were
transferred to the endorsed goods, Scandinavian Health Spa and bath towels,
respectively (Erdogan, Baker, and Tagg 2001).

An overview is presented in a table to sum up all the models and theories as well as
their characteristics:

Table 2.1 Celebrity Endorsement theories and models sum-up

Model/Theory Characteristics Source

Source The effectiveness of the endorser’s message Hovland, Irving

Credibility depends on his perceived level of expertise Kelly and
Model and trustworthiness. Both attributes lead to Harold (1953)
the internalization process.

Source The effectiveness of the endorser’s message McGuire

Attractiveness depends on his/her similarity, familiarity and (1985)
Model
 19

liking. The identification process determines

attractiveness.

Match-up The effectiveness of the strategy is Forkan (1980)

Hypothesis determined by the harmony of the match Kamins (1989)
between the celebrity endorser and the
product being endorsed.

The Meaning The effectiveness of celebrity endorsement McCracken

Transfer Model strategy relies on the meaning that celebrity (1989)
conveys through the endorsement process.

(Source: Author, 2021)

These models all united with all understandings and evidences can form a strong basis
for the creation of the celebrity endorsement concept.

2.3 Single vs. Multiple product and Multiple Celebrity Endorsement

The number of items promoted (single product vs. many products) or the number of
celebrities involved in the endorsement can be categorized (single celebrity vs.
multiple celebrities). When a celebrity endorses only one product or brand, it is
known as a single product endorsement. Because celebrities are more likely to
endorse multiple products over time, single product/celebrity endorsements are
uncommon (Nam-Hyun Um 2008).

In advertising, it is usual to notice that some businesses utilize the same celebrity for
a long time, whilst other marketers choose to use numerous celebrities in a single
campaign (Hsu and McDonald, 2002). The employment of two or more celebrities in
an advertising campaign is referred to as multiple celebrity endorsement (Hsu and
McDonald, 2002). Based on how a celebrity or celebrities are featured in advertising,
there are two forms of multiple celebrity endorsement: The first is an endorsement in
which two or more celebrities collaborate to promote a product or brand in a single
advertisement. The second form of multiple celebrity endorsement is when several
celebrities advocate the same product or brand over the course of several marketing
 20

campaigns (Nam-Hyun Um, 2008). Furthermore, in the process of meaning transfer

to a product or brand, multiple renowned individuals included in an advertising
compliment one another (Sliburyte.L, 2009). According to Hsu and McDonald
(2002), despite the fact that the celebrities in the commercial share some qualities,
they have distinct personalities, and so the symbolic meanings they impart to the
product are complimentary. The marketed product or brand is anticipated to gain a
broader range of transferable meanings. When celebrity endorsers are considered to
have obvious similarities, that is, when they replicate rather than complement one
another, their meaning transference to the product or brand are more likely to be
powerful.

When more than one celebrity appears in a campaign, the consumer's attitude about
the advertising, attitude toward the company, and buy intentions all improve (Saleem,
2007). As a result, using several celebrities to promote a product might have certain
advantages for a firm, such as attracting and covering all of the various target groups
(Hsu and McDonald, 2002) and assisting advertisers in reducing ad boredom. Some
executives, on the other hand, think that a celebrity is a better spokesperson for a
brand in terms of delivering messaging to target audiences than any other voice.
Celebrities have powerful personalities and may swiftly alter public opinions of a
company.

If there are two or three celebrities in a campaign, whose personality is the brand
attempting to capture? (Erdogan and Baker, 2000). However, one must be cautious
with this technique to protect the fundamental brand values, as there is a high risk of
customers becoming confused about the brand identity. To avoid a mix-up like this,
managers who have legitimate reasons to utilize more than one celebrity for a
campaign should make sure that each celebrity has the same meaning that companies
are looking for (Erdogan and Baker, 2000). Consumer attitudes and perceptions are
improved when a celebrity promotes a product, according to Fireworker and
Friedman (1977). Is it true that as more celebrities are featured in advertisements,
consumers have a negative attitude about them? According to Schiffman et al. (1997),
when a celebrity promotes a product, customers are more likely to see the product
favorably and express a stronger desire to acquire it. Will it have any influence on
 21

customers' purchasing intentions if many celebrities support one product (multiple

celebrity endorsements)?

When a celebrity supports many companies and goods, it is known as multiple

product endorsement. Multiple product endorsements have been shown to favorably
influence customers' perceptions of the endorser's trustworthiness, brand image, and
ad assessments in the past (Mowen and Brwon 1981; Mowen, Brown, and Schulman
1979). The major reason is because there is a lot of uniqueness, with one famous
individual enduring numerous goods rather than focusing on and promoting one
single brand (Tripp, 1994 Furthermore, multiple product endorsements strengthen the
effects of celebrity on the product (Tripp and Jensen 1994), and the number of
products endorsed by a celebrity, in addition to the number of exposures to the
celebrity endorser, positively influences consumer perceptions of the endorser and
advertising itself. According to McCracken (1989), the celebrity endorser passes on
meanings from one commercial to the next, and supporting many products affects
those given meanings, making the celebrity less trustworthy and likable to the
customer. In terms of meaning transmission, matchup consistency, and the credibility
model, it is of importance that the celebrity believes in his product and has affinity
with it.

2.4 Celebrity endorsement risk theories

2.4.1 Negative information

One danger of using celebrity endorsers is the chance of bad information about the
celebrity surfacing. Because customers develop a relationship between a brand and a
celebrity via frequent pairings, bad information about the celebrity may have a
detrimental influence on the endorsed brand (Erdogan and Baker 2000; White,
Goddard and Wilbur, 2009). Till and Shimp (1998), on the other hand, suggest that a
strong associative relationship between celebrity and product must be established
before such celebrity information affects brand ratings. Furthermore, Amos, Holmes,
and Strutton (2008) performed research and discovered that negative information
about the celebrity had the greatest influence on the efficacy of celebrity endorsement
in advertising. This finding highlighted the considerable risk of hiring celebrity
 22

endorsers, as well as the significant influence that bad information about the celebrity
may have on customer views. It is critical to anticipate the emergence of unfavorable
material concerning celebrity endorsers whenever feasible.

Negative publicity from celebrity crimes, such as celebrity endorsers implicated in

drug scandals, rape, and murder, has harmed several businesses. Consumers'
confidence and credibility in these brands may be harmed as a result of the damage
done to their reputations (Johansson and Sparredal 2002).

2.4.2 Overshadowing

When a celebrity endorser is employed, there is a danger that customers may focus
on the celebrity rather than the brand being advertised (Sandin and Widmark, 2005;
Erdogan, Baker and Tagg 2001). Surana (2008) conducted a study and claims that
the ad then becomes more about the celebrity and his/her looks and appearance rather
than the product it is promoting.

Overshadowing happens when a celebrity endorser acts in the midst of numerous

other stimuli that all compete to create a relationship with the celebrity endorser,
according to Till (1998). While the marketer hopes to create a relationship between
the celebrity and the endorsed brand, overshadowing implies that the celebrity
endorser is more likely to form a link with the most dominant stimulus, which may
or may not be the highlighted brand in the commercial execution. Khatri (2006)
released a survey that found that 80% of those polled recognized the celebrity but
couldn't recollect the brand being promoted.

To address this, advertising should hire a celebrity endorsement who will draw
attention to the product while not overshadowing the brand (Belch and Belch, 2001).
Making the celebrity and the product the two strongest components in the
commercial, according to Till (1998), is one method to reduce the likelihood of
overshadowing effects.

2.4.3 Overexposure

This problem arises when a celebrity endorses too many products, either concurrently
or not, resulting in overexposure (Belch and Belch, 2001), which negatively affects
 23

consumers' perceptions of endorser credibility, likeability, and attitude toward the

advertisement.

Overexposure is frequent between well-known endorsers and highly competitive

companies, leaving the customer perplexed and unable to recollect which brand the
celebrity represents (Tripp et al., 1994). As a result, the buyer begins to wonder
whether the celebrity truly loves the company or is simply doing it for the money
(Tripp et al., 1994; Johansson and Sparredal 2002).

According to a study by King (1989), celebrity endorsers' perceived trustworthiness

has plummeted, especially among young viewers, with 64% feeling that celebrities
participated in advertisements just for the money (King, 1989).

2.4.4 Financial risk

Companies investing in celebrity endorsement, according to Walker et al. (1992),

take a significant financial risk. Because it is a two-sided coin, Till (1998) and Shimp
(1997) believe that it poses a significant financial risk. On the one hand, corporations
must acknowledge that they have little influence over the celebrity's activities (which
may spell disaster for the firm), but on the other hand, a wise celebrity pick can pay
off handsomely.

The expense of employing celebrities as endorsers may run into the millions of
Euros/Dollars for a single product endorsement. According to recent sources, David
Beckham makes over $40 million per year in endorsement fees, while Tiger Woods
earned over $110 million in endorsement fees before his public problems (Scott
2007). Advertisers must evaluate the cost efficiency of their option at some point
when deciding whether or not to utilize celebrity endorsers. Rather than seeking a
well-known endorser, advertisers might be better off opting for a less well-known,
less costly endorser who fits the brand's message and appeals to the target
demographic (Johansson and Sparredal, 2002).

2.5 Purchase intentions

The tendency to buy a specific brand or product is referred to as purchasing intentions

(Belch et al., 2004). Purchasing intentions also reveal how likely an individual is to
 24

purchase a product (Phelps and Hoy, 1996). It has been utilized as a dependent
variable in several prior research (Goldsmith et al., 2000; Yi, 1990; Saliagas, and
William, 1987; Machleit and Wilson, 1988).

Consumer behavior happens when customers are motivated by external

circumstances and make a purchase decision based on their own traits and decision-
making process, according to Kotler (2000). These considerations included product
selection, brand, store, time, and quantity. Consumers' purchase intentions always
occur after they have a sense of value and benefit, which is to say, after they have a
sense of benefits and values, and it is a critical factor in predicting their purchasing
behavior.

Perceived value and perceived quality, according to Monroe and Krishnan (1985),
impact purchase intentions, and the higher the perceived value and perceived quality,
the higher the purchasing intention. The customer's attitude and evaluation of external
variables determines their purchase intent, and it is a crucial component in predicting
consumer behavior (Fishbein and Ajzen, 1975).

Purchasing intentions assess a buyer's propensity to buy a thing, and the higher it is,
the more likely a consumer is to buy a product (Dodds, et al., 1991; Schiffman and
Kanuk, 2000). Consumers' purchasing intents suggest that they will gather
information, assess options, and make decisions based on their previous experiences,
preferences, and external environment (Zeithaml, 1988; Dodds et al., 1991;
Schiffman and Kanuk, 2000; Yang, 2009).

People like to buy items that they are acquainted with, as well as those with a positive
brand image, since a positive brand image may make you feel safe and secure.
According to Laroche et al. (1996), the greater a consumer's familiarity with a
product, the greater their confidence and attitude toward it, and therefore their
purchase intention. Wang (2006) discovered that the stronger the brand image, the
higher the buy intention. He utilized brand image as an independent variable, product
category as a moderator, and purchase intention as a dependent variable. Consumers
will form psychological connections and an irreplaceable relationship with a brand if
it delivers product functionalities that fulfill their needs, according to Fournier
 25

(1998), and they will subjectively continue engagement with the brand and boost their
buy intention as a result.

2.6 Customer decision-making process

The most well-known consumer purchase decision-making model, according to

Engel, Blackwell, and Miniard (1995), may be split into five stages: (1) problem
detection, (2) information search, (3) alternative appraisal, (4) buy choice, and (5)
post-purchase behavior.

Figure 2.4 Steps in the consumer decision-making process (Lamb et al., 2004)

The five phases depicted in the above diagram reflect a basic process that takes a
customer from recognizing a need for a product or service to evaluating a purchase.
It does not, however, imply that all customer decisions will be made in the same
sequence across all of the phases (Lamb et al., 2004). Each of these processes is now
examined in further depth.

a. Need (Problem) Recognition

When a customer sees a problem or a need, the buying process begins. Internal or
environmental factors might elicit the desire. Marketers must determine the
conditions that lead to a certain need. Marketers may discover the most common
stimuli that ignite interest in a product category by gathering information from a
variety of customers, and then design marketing tactics to pique consumer interest.
 26

b. Information Search

After identifying a need, the customer goes through a process of looking for solutions
to meet that need. This search can be carried out either internally, by checking one's
memory for previous product encounters, or externally, when previous experience is
insufficient and the danger of making a poor purchasing decision is significant.
Personal sources, such as friends and family, are the most important external sources,
followed by public sources, such as specialists.

c. Evaluation of Alternatives

Consumers must assess potential alternatives after they have all of the essential
information (Boyd and Walker 1990; Kotler 2000; Lamb et al., 2004; Murray and
O'Driscoll 1996). Information will lead to an evoked collection of alternative items
(known brands) from which a decision must be taken (Li, 2004).

Consumers can assess prospective alternatives in three ways, according to Boyd and
Walker (1990):

1. Concentrating on a small number of known brands (evoked set) rather than all
conceivable brands;

2. Evaluating each brand in the evoked set on a limited number of product dimensions
or attributes; and

3. Combining and comparing brand evaluations across characteristics.

According to Lamb et al., (2004), users can choose a product characteristic to exclude
all items that lack the required particular attribute, reducing the number of brands in
the evoked set. The amount to which the consumer feels connected with the product
is a key factor of the scope of the review. The degree of perceived relevance and
personal importance that comes with a decision is referred to as involvement. When
a purchase is really important to the client, he or she is likely to conduct considerable
research.
 27

d. Purchase

Consumers, according to Kotler (2000) and Du Plessis et al. (1994), would choose
the most important information, whether internal or external, assess the advantages
of each item, and make a choice to buy or not buy the specific product, postpone the
purchase, or perhaps not buy at all.

The purchasing choice is influenced by a number of things. These factors include the
price of the product in relation to the amount of money the customer can afford to
spend, the opinions of family or friends, and the marketer's sales and service policies.
Before making a large purchase, some customers may want to sample a product.

e. Post-Purchase Behavior

Customers frequently continue to review the purchase after making a purchase

choice, comparing it to his initial expectations, and there are three probable
consequences of these evaluations (Li, 2004):

1. Perceived performance meeting expectations, resulting in a neutral feeling;

2. Perceived performance exceeding expectations, resulting in positive

disconfirmation of expectations and satisfaction (this experience may lead to
consumer repeat purchase);

3. Perceived performance exceeding expectations, resulting in a positive

disconfirmation of expectations and satisfaction (this experience may lead to
consumer repeat purchase)

When it comes to post-purchase evaluations, customers often compare their

experiences to their expectations (Kotler 2000; Sheth and Mittal 2004). A positive
experience may lead to a repeat purchase, whilst a negative experience may lead to a
buy postponement.

2.7 Overview of FMCG industry in Vietnam

2.7.1 FMCG industry charactertistics

The fast-moving consumer goods (FMCG) business is characterised by products that

sell quickly and at relatively low costs. Hence, the FMCG industry relies primarily
 28

on revenues generated from huge volumes of items supplied. The more things sold
and the faster they are sold, the more profit is made. Hundreds, if not thousands, of
goods, can be off the manufacturing line in less than a minute for major firms.
Household appliances, personal consumables, food and beverage, and basic
healthcare supplies are the four areas that make up the FMCG industry. Its
characteristics are respectively (1) FMCG products are frequently purchased. It
means that FMCG products are used on a daily basis and hence they need to be bought
frequently; (2) FMCG products are usually available at an affordable price. As this
industry provides essential goods which are used on an everyday basis, most of them
are available at a low rate; (3) Short shelf life. Certain FMCG products are perishable
in nature. Therefore, they have to be consumed before they expire such as milk and
bread, etc. expire within days.

FMCG

Food &
Household care Personal care Health care
beverages

Oral care, hair Health

Fabric wash, beverages, OTC products
care, skin care,
cleaners... bakes, soft and ethicals
cosmetics...
drinks...

Figure 2.5 Major Segments in FMCG (Kantar, 2019)

FMCG items, such as food, drinks, and other home needs, are relatively affordable
and important for everyday use from the consumer's perspective. This means that
FMCG products should always be available in stores and marketplaces close to
residential areas. Large FMCG businesses often do not sell directly to consumers,
instead of relying on a network of merchants to supply their goods.
 29

2.7.2 Vietnamese FMCG industry development during COVID-19 period

Vietnam is one of the most active growth markets in Southeast Asia, with rising
disposable income, rising living standards, stable GDP and economic development,
a young population, and low inflation. The fast-moving consumer goods industry had
a growth, especially in the period of COVID-19 from February 2020 to January 2021.

In comparison to last year's performance, the FMCG market is experiencing higher

growth in both urban and rural areas, but this is progressively stabilizing in the short
term. Cooking assistance and convenient meals continue to promote the rise of
packaged goods, especially in urban areas. This year, Dairy and Personal Care are
also performing nicely. This might be due to a shift in consumer preferences toward
health, hygiene, and safety as a result of the COVID-19. As consumers seek good-
for-health choices, juice milk has been blooming in both Urban and Rural markets
for in-home consumption over the last eleven months of 2020, thanks in part to
nutrients and different flavours the product provides. The category growth is
attributable to the expansion of the consumer base, especially in rural areas, which
are 4 big cities: Ho Chi Minh, Ha Noi, Da Nang, Can Tho (Kantar, 2020). In the
Urban 4 major cities, emerging channels and large modern retail formats continue to
play a significant role in supporting FMCG growth. With a considerable share gain,
modern retail continues to evolve.

Some notable points in Kantar Worldpanel FMCG Vietnam Report (2020) show that
total revenue from services and consumer goods in Vietnam increased by 11.6%,
tourism increased by 10.8% while the total value of FMCG increases by 5.5% in 4
big cities and 8.8% in the countryside (it is expected that the growth period for 2020-
2025 will increase by 5-6%). Beverages and personal care equipment are the
categories with the highest growth rates. The fastest-growing categories include
beverages and personal care products.
 30

Figure 2.6 Percent of Value Share in total FMCG

(FMCG Report Vietnam, 2020)

In the FMCG industry, traditional trading is still effective. However, more and more
contemporary commercial competitors, such as retail stores, speciality stores, and
internet shopping, have lately emerged. Consumers in Vietnam are optimistic about
the future. Food safety, health, and environmental issues are also major priorities for
them. According to the Vietnam FMCG industry study for 2020, Vietnamese
consumers spend most of their money on food and consumer goods (27.1% in big
cities and 26.9% in rural areas). Consumers spend more of their FMCG money on
beverages and personal care goods than on basics. According to the FMCG Report
Vietnam, Personal Care Goods grew the most in both urban and rural regions,
followed by Dairy and Dairy products. This demonstrates that these two categories'
brands are "doing well" this year (FMCG Report Vietnam, 2020).
 31

Figure 2.7 Total FMCG value spend year-on-year change

(FMCG Report Vietnam, 2020)

When it comes to the shopping channels, we are in the era of the 4.0 industry, when
technology is still expanding and people use the Internet at all times and in all places.
It is easy to see why, with a 38% increase, internet shopping has become the most
important growth channel in the urban region. This is demonstrated by the rapid
growth of e-commerce sites like Tiki, Shopee, Lazada, and Sendo... Furthermore,
customers' shopping habits in the urban region are changing away from department
stores, small grocery stores, and traditional markets and toward speciality stores,
micro supermarkets/shops, and more convenience or supermarkets/hypermarkets.
 32

Because in rural areas, people are still more familiar with traditional shopping
channels.

2.7.3 Vietnamese customer purchasing behaviours

Vietnam has long been regarded as a country with a high rate of Internet penetration.
With a population of around 98 million people, the number of individuals using the
Internet in our nation is up to 70% of the population, and we have 155 million mobile
users, putting us fifth in the world in terms of subscribers to population. People spend
a lot of time online and do so often due to inexpensive Internet rates and good
connection speeds. In 2019, the typical Vietnamese citizen uses the Internet for
around 6.5 hours each day. Outdoor entertainment was restricted during COVID-19,
bringing the total time spent outside to roughly 7 hours each day. COVID-19 posed
numerous challenges, but it was also a significant bump for Vietnamese e-commerce
platforms in the previous year. During the pandemic's outbreak, Vietnam's e-
commerce industry grew by 18%, reaching $11.8 billion USD, accounting for 5.5 per
cent of the country's total retail sales of consumer products and services. The
government's severe social distance rules have pushed customers to adjust to buying
remotely without having to leave their homes, which has resulted in this
unprecedented development (Adsota, 2021).

According to Adsota research, new user growth via e-commerce platforms in

Vietnam accounts for 41% of all new users. Surprisingly, up to 91 per cent of them
have opted to keep using these e-commerce sites even after the pandemic has passed
(Adsota, 2021). Vietnam soon became an “attractive piece of cake” for e-commerce
in Southeast Asia, thanks to its rapid growth. In this setting, consumer habits and
behaviours have shifted in order to quickly adapt to new ways of purchasing and
selling things. As a result, in order to get to know, approach, and deliver items to
customers, businesses must immediately grasp and customize their experiences in
this “new normal”,

Before the obvious impact of the COVID-19 pandemic, the buying behaviour of
Vietnamese consumers has had certain changes. Outside shopping activities such as
supermarkets, stores or traditional markets are minimized by consumers, instead, they
 33

tend to increase and focus more on spending that can be done at home. . The items
with strong spending growth during the epidemic season are essential items
(especially food), Internet services, housing & utilities and healthcare. Contrary to
this increasing trend, spending on beauty and entertainment products/services
plummeted due to strict social distancing measures from the government to limit the
spread of the disease. Besides, the impact of the epidemic makes consumers' price
sensitivity no longer a leading factor in purchasing decisions. At this time, consumers
tend to save more, but instead of choosing cheap products, they are interested in
products with good quality and health benefits. For food items, for example, survey
data shows that more than 60% of Vietnamese households use sugar-free or low-
sugar beverages. Dairy-free or dairy-free alternatives are also growing in popularity,
such as “nut milk” – a nut-based beverage believed to be more heart-healthy than
regular milk (Adsota, 2021).
 34

CHAPTER 3: RESEARCH METHODOLOGY

Every research has its own purpose and its research objectives. In this chapter it is
presented the research hypothesis, its framework, and an explanation about the
methods that were adopted to carry out the research, including a review and reasons
for the choice of the research sample, data collection, measurement scales adopted
and also the type of variables used in the study.

3.1 Research model and hypotheses

3.1.1 Celebrity’s Credibility

Previous studies suggested that credibility of Celebrity Endorsement is one of the

most significant factors in determining the outcomes of the advertisements.
Numerous researches found out that a credible Celebrity Endorsement leads to
positive changes in the attitudes and behaviours of customers (Hovland and Weiss,
1951; Ohanian, 1991; Mikulas and Svetlik, 2016). This happens when the audiences
let the sources affect their personal perceptions and values set (Erdogan, 1999) as
they assume information provided by credible sources are valid. Thus, the first
hypothesis is proposed as below:

H1: Celebrity’s credibility has a positive impact on University students’ purchase

intentions of FMCG products.

3.1.2 Celebrity’s Attractiveness

Attractiveness of celebrities is a key factor affecting the outcome of Celebrity

Endorsement. McCracken (1989) defined attractiveness as the appealing attributes of
a person. According to Bardia et al. (2011), physical appearance is the first
impression that customers have about celebrities, thus, it shapes customers'
perception of the endorsed products.

The attraction of celebrities is believed to increase brand recall and positively affect
customers' attitude towards brands and products (Kahle and Homer, 1985). In the
same research, findings also indicated that customers tend to buy products endorsed
by appealing celebrities than unattractive ones. Besides, it is evident that the
attractiveness of CE enhances the effectiveness of the message that brands want to
 35

communicate with their target audiences (Chen & Huddleson, 2009; Cohen &
Golden, 1972). However, there are still some opposing opinions about this
characteristic of CE. According to Bryne et al. (2003), appealing celebrities enhance
customers' attitudes but not purchase intention towards a product. Besides, too much
attractiveness may cause celebrities to overshadow the endorsed brands and products
(Anon, 2006).

However, a majority of literature shows its support to the effectiveness of celebrities’

attraction. Cabe et al. (2014, as cited by Anwar and Jalees, 2017) suggested that
attractive celebrities are powerful in endorsing products related to improving
attractiveness, which is the case of FMCG brands. Thus, the following hypothesis is
presented:

H2: Celebrity’s attractiveness has a positive on with University students’ purchase

intentions of FMCG products.

3.1.3 Multiple Celebrities

When more than one celebrity appears in a campaign, the consumer's attitude toward
the commercial, brand perception, and purchasing intent all improve (Saleem, 2007).
As a result, using several celebrities to promote a product may have several
advantages for a brand, such as attracting and covering all of the various target
markets (Hsu and McDonald, 2002) and assisting marketers in reducing ad boredom.
Some executives, on the other hand, assume that a celebrity is a better spokesperson
for a company in terms of transmitting messages to target markets than any other
voice. Celebrities have powerful personalities and can easily alter public expectations
of a business. Hence, the next hypothesis is presented:

H3: Advertising campaigns featuring more than one celebrity endorsing the
FMCG product, have a positive impact with University students’ purchase
intentions.

3.1.4 Multiple Product Celebrity

When a celebrity endorses multiple brands and products, it is known as multiple

product endorsement. Multiple product endorsements have been shown to positively
 36

influence consumers' perceptions of the endorser's trustworthiness, brand image, and

ad assessments in the past (Mowen and Brwon 1981; Mowen, Brown, and Schulman
1979). The main explanation is that there is a lot of uniqueness, with one famous
individual enduring many brands rather than focusing on and representing one
particular brand (Tripp, 1994). It is critical that the celebrity believes in and has
passion for his product in terms of sense transfer, matchup congruence, and reputation
model. Following this discussion, the fourth hypothesis is proposed as below:

H4: Celebrities who endorse more than one FMCG product/brand at the same
time have a positive impact on University students’ purchase intentions.

3.2 Conceptual Framework

The conceptual framework for this research contains four independent variables,
which are the four dimensions of Celebrity Endorsement: credibility, attractiveness,
multiple celebrities, multiple products celebrity. Meanwhile, University students’
purchase intentions is the dependent variable.

Celebrity’s H1
Credibility

H2 (+)
Celebrity’s
Attractiveness
UNIVERSITY
Multiple H3 (+) STUDENTS’
Celebrities PURCHASE
(+)
INTENTIONS
H4
Multiple
Products Celebrity

Figure 3.1 Conceptual Framework (Author, 2021)

 37

3.3 Research approach

The research onion was established by Saunders et al. (2020) to represent what a
researcher has to clarify, in addition to the validity and reliability of the data gathering
and data analysis they may employ, as well as related ethical and access problems.

Figure 3.2 The research ‘onion' developed by Saunders et al. (2020)

The chosen methods for this study are marked with red circles. To be specific,
positivism, deductivism, quantitative method with cross-sectional survey design were
adopted to test the relationship between Celebrity Endorsement and University
students Purchasing Intentions.

Regarding the research approach, this study chose deductivism as the main approach,
which is the process of generating and testing hypotheses to explain theories or laws
(Bell et al., 2019). According to Saunders et al. (2020), deductivism is ideal when
studies are well backed up with theories and need further practical validation. As
presented in the literature review, the relationship between CE and purchasing
intentions has been investigated by various studies in the past and gained many
 38

opposing ideas. Thus, deductivism was chosen to test those previous findings in a
different context, which is Vietnamese FMCG market and University students.

The main methodology for this study will be quantitative research with a cross-
sectional survey approach, which refers to the research that collects data from more
than one case all at the same time (Bell et al., 2019) or the research that commits
respondents from diverse backgrounds but share some similarities (Jones and
Gratton, 2004). According to Bell et al. (2019), this method relates to inferential
statistics, which is used to establish the relationship between different variables and
to test the hypotheses. In this study, self-completion questionnaire will be the key
tool to collect primary data. Collected data then will be used to test the hypotheses
and to analyse the relationship between the independent variables of celebrity
endorsement and the dependent variable of customers' purchase intention. However,
other research approaches such as interview might be conducted afterward if findings
gained from the questionnaire need cross-check.

There are reasons underlying the decision to conduct quantitative research via
questionnaire. First of all, the scope of this study is defining the relationship between
celebrity endorsement and customers' purchase intention in Vietnamese FMCG
market by testing the hypotheses. Thus, quantitative method would be the ideal
choice as it is based on the theory of deductivism (Bell and Bryman, 2019), which is
suitable for the scopes of this study. Secondly, self-completion questionnaire is a
convenient tool for both researcher and respondent. On the one hand, for the
researcher, the data is easy to collect and analyse, the form of online questionnaire is
also easy to organise and control even in a large distribution. On the other hand, as
questionnaire contains a limited number of fixed questions, respondents will have
motivation to finish without feeling tired. Moreover, as the responses will be recorded
anonymously, the answers are more likely to be honest, reliable and unbiased (Bell
and Bryman, 2019; Eden et al., 2020). Opposite opinions for this research design may
argue that qualitative research via in-depth interview or focus group is more helpful
as it provided with interesting and new insights from customers. However, this
method is too complicated for a Capstone project as it requires the interviewer to have
such traits and qualities to guide the interview in the right direction (Bell and Bryman,
 39

2019). Moreover, due to the characteristics of qualitative research, the number of

participants will be restricted. Thus, the sample size will not be sufficient to test the
hypotheses, which is also the main scope of this study (Bridgmon and Martin, 2013).
Lastly, the cost of self-completion questionnaire is lower than other qualitative
approaches (Bell and Bryman, 2019). As the Capstone research project will not be
sponsored, the researcher prioritises this economical option.

Similar to any other research method, quantitative approach carries itself such
limitations. Firstly, the data collected from quantitative questionnaire lacks in-depth
information and is hardly to obtain brand new findings. It is due to the fact that
questionnaire is self-completed by respondents, without any probe or motivation to
elaborate from the interviewers. Secondly, as the questionnaire cannot be too long,
otherwise the respondents may refuse to do, the researcher must consider
meticulously to include only those essential questions. The data collected is thus
restricted. The last limitation, which is also described as one of the most serious, is
the failure to gain sufficient and valid responses. As questionnaire is taken by
individual without any inspection, attendants may skip some of the questions, hence,
the data will be missed and the response will become invalid. In addition, self-
completion questionnaire is also recorded as one of the method with lowest response
rate if being conducted in an ineffective way. Meanwhile, if sample size fails to reach
the expected number, the research outcome may become bias and unreliable (Bell &
Bryman, 2019; Bridgmon and Martin, 2013; Saunders et al., 2020).

3.4 Sampling

The random sampling approach is used in this investigation. Random sampling,

according to Lavrakas (2008), refers to a number of selection strategies in which
sample members are chosen at random and each member of the population has an
equal chance of being chosen. Random sampling techniques are used in most social
scientific, corporate, and agricultural surveys to pick survey participants or sample
units, which can be people, businesses, geographical sites, or other units for study.
The entire survey research strategy relies heavily on random sampling (Lavrakas,
2008).
 40

3.4.1 Questionnaire design

The questionnaire is divided into two sections. During the COVID-19 period, the first
phase collects demographic information from respondents, such as age, gender, level
of education, income, and buying channels. The questionnaire's second section has
20 questions based on the components of the study model. The questionnaire for this
study was created using a 5-point Likert scale. Respondents are explicitly asked to
score their degree of agreement on a series of assertions, which might be positive or
negative. The response is based on a five-point agreement scale for each statement
(Tullis & Albert, 2013). Examples of response options in Likert scales are presented
in Figure 3.3.

Figure 3.3 Examples of response options in Likert scales (Krabbe, 2017)

 41

The questionnaire is made up of the measuring scales listed below, with the
parameters specified in the study model taken into account (Table 3.1). Every
statement or inquiry identifies a variable that has been seen.

Table 3.1 Measuring scales and references for the proposed constructs

Constructs Code Description Source

Celebrities are knowledgeable about the

CC1
FMCG that they promote

Celebrities totally understand the FMCG Abbas et

CC2
Celebrity’s products they promote al. (2018),
Credibility Celebrities are experienced with the FMCG Mittal
CC2 (2017)
that they promote

Celebrities are experts in terms of the

CC3
FMCG that they promote

When promoting FMCG, celebrities are

CA1
beautiful

When promoting FMCG, celebrities are Abbas et

CA2
Celebrity’ classy al. (2018),
Attractiveness When promoting FMCG, celebrities are Mittal
CA3 (2017)
elegant

When promoting FMCG, celebrities are

CA4
charming

The presence of more than one celebrity in

MC1
an advertisement makes it trustworthy
Rachita et
The presence of more than one celebrity in al. (2013),
MC2
Multiple an advertisement makes it convincing Carvalho
Celebrities More than one celebrity in a single (2012),
MC3 McDonald
advertisement makes it appealing
(2002)
More than one celebrity in a single
MC4
advertisement makes it dynamic

Multiple My opinion about the celebrity positively

Products MPC1 changes because they promote many Rachita et
Celebrity different products al. (2013),
 42

When a single celebrity promotes more than Carvalho

MPC2 one brand, I still remember all the endorsed (2012)
brands

My level of trust about the celebrity

positively changes because they promote
MPC3
more than one brand in a short period of
time

My opinion about an advertisement

MPC4 positively changes when I see the same
celebrity promoting many different products

If I were in store or online, I tend to take a

PI1
look at these products
Khan et
Purchase PI2 I tend to seek out these products al. (2019),
Intention PI3 I buy these products Mittal
(2017)
I like these products than those products
PI4
which are not promoted by celebrities
(Souce: Author, 2021)
3.4.2 Sample size

Determining the sample size according to the population estimate often requires a
large sample size. However, the researcher has limited time and without financial
support, the ability to sample the population estimate will be difficult to implement.
Therefore, researcher uses a sampling formula based on the quantitative method used
to analyze the data. Two methods that require large sample sizes are regression and
exploratory factor analysis (EFA). EFA always requires a much larger sample size
than regression, so researcher uses the formula for calculating the minimum sample
size for EFA as the formula for calculating the sample size for this study (Hair et al,
2014).

N = 5*number of measurement variables participating in EFA

According to Hair et al (2014), the minimum sample size to use EFA is 50, preferably
100 or more (Hair et al, 2014). The ratio of observations to an analyte is either 5:1 or
10:1, which some researchers suggest should be 20:1. “Number of observations”
simply means the number of valid questionnaires required; “Measurement variable”
 43

is a measurement question in the survey. In this situation, this study’s survey has 20
questions using a 5-level Likert scale (corresponding to 20 observed variables of
different factors), these 20 questions are used to analyze in EFA. Applying a ratio of
5:1, the minimum sample size will be 20 × 5 = 100, if the ratio is 10:1, the minimum
sample size is 20 × 5 = 200. This sample size is larger than the minimum size by 50
or 100, so researcher need minimum sample size to perform EFA exploratory factor
analysis of 100 or 200 depending on the selection rate based on survey ability.

3.5 Data Collection

In this study, primary data was collected through a self-completion online

questionnaire. It consisted of two main parts: demographic profile and questions
about their purchase intention. Moreover, as the study context is Vietnamese FMCG
market, the survey only collects data from University students who are living in
Hanoi and using at least one FMCG product. After two weeks of distribution, 255
valid responses were recorded and taken to the analysis stage. Although 255 is much
smaller than the actual population, it could be considered as a significant number and
valid for the study (Tabachnick and Fidell, 1996).

Data was then analysed using IBM SPSS. First of all, a reliability test using Cronbach
Alpha was taken to test whether the research is reliable or not. Secondly, a descriptive
analysis of respondents' profile was built so that the researcher could have a deeper
understanding of the samples. Most importantly, exploratory factor analysis, multiple
correlation and multiple linear regression were used to statistically test the
relationship between celebrity endorsement and University students’ purchase
intention of FMCG. According to Bobko (2010), a correlation test allows researchers
to define what is the relationship between the two variables while regression shows
how different variables affect each other. From the test results, the researcher
suggested whether the hypotheses should be accepted or not.
 44

CHAPTER 4: FINDINGS AND DISCUSSION

4.1 Results Analysis

4.1.1 Reliability analysis

Reliability test was taken using Cronbach’s Alpha, which determines whether
different items in a questionnaire consistently represent the constructs by measuring
the internal consistency (Field, 2009). The average Cronbach’s Alpha of a variable
should be greater than 0.7 to be considered acceptable (Nunnally, 1978). Besides,
each of the measured items under a variable should be above 0.3 to ensure the
reliability.

The summarised results are presented in Table 4.1 and detailed results are in
Appendix 2. For every variable, the Cronbach's Alpha coefficient is above 0.7,
indicating a strong internal consistency. Thus, it is ensured that this research is
sufficiently reliable, the questionnaire is valid and well presents the predictors.

Table 4.1 Cronbach's Alpha Coefficients

NO. VARIABLES CRONBACH'S ALPHA

1 Celebrity’s Credibility 0.896

2 Celebrity’s Attractiveness 0.891

3 Multiple Celebrities 0.888

4 Multiple Products Celebrity 0.864

5 University Students’ Purchase Intention 0.817

(Souce: Author, 2021)

4.1.2 Demographic profile

Most of the respondents were females, which accounted for 54.5% of the total
sample. Male and other genders ranked second and third, with 40.4% and 5.1%,
respectively. The age of the respondents mostly falls into 22 to 24, which is 64.3%.
 45

Next, the group 18 to 21 makes up 23.1% and others is 12.6%, hold the last ranking.
When it comes to the educational levels, most respondents are undergraduate students
with 73%, while graduate students are 19.2%, which is approximately 11% more than
the percentage of postgraduation. In terms of the income, they mostly earned average
salaries, which is 5 to 10 million VND, and took 39.6% of the total samples.

The COVID-19 pandemic not only has a strong impact on the commodity market,
but also changes consumers' shopping habits and choices, especially University
students. As can be seen, 73% of respondents usually use online platforms for
shopping FMCG. If commercial centers are forced to close or shorten their operating
hours during the day, traditional markets pose a potential risk of infection because of
difficulties in hygiene control, online shopping websites, supermarkets, mini
supermarkets are the most popular. Safety, large and diverse supply, guaranteed
products, stable customer base and limited close contact, support programs and home
delivery, etc. are the characteristics that make distribution channels modern in the
eyes of consumers during the epidemic period.

Table 4.2. Demographic profile of respondents

Category Frequency Percent

Gender Female 139 54.5

Male 103 40.4

Other 13 5.1

Age 18 - 21 59 23.1

22 - 24 164 64.3

25+ 32 12.6
 46

Educational Levels Undergraduate 186 73

Graduate 49 19.2

Postgraduate 20 7.8

Income Levels 3 to 5 million VND 72 28.2

5 to 10 million VND 101 39.6

Higher than 10 million 82 32.2

VND

Shopping channels Online 186 73

In-store 69 27

(Souce: Author, 2021)

4.1.3 Descriptive statistics

The table below shows descriptive statistics for all variables that were observed. It
provides a summary of respondents' responses to each of the questionnaire's
statements. As previously stated, the questionnaire employs a 5-point Likert scale to
represent respondents' levels of agreement, ranging from 1-strongly disagree to 5-
strongly agree. As a result, observable variables with high mean values suggest high
levels of agreement among respondents.

Table 4.3 Descriptive Statistics

N Minimum Maximum Mean Std.

Deviation

CC1 255 1 5 3.93 1.034

CC2 255 1 5 3.85 1.029

 47

CC3 255 1 5 3.87 1.044

CC4 255 1 5 3.89 1.121

CA1 255 1 5 4.31 .847

CA2 255 1 5 4.20 .894

CA3 255 1 5 4.36 .853

CA4 255 1 5 4.23 .854

MC1 255 1 5 3.91 .988

MC2 255 1 5 3.73 .939

MC3 255 1 5 4.02 1.027

MC4 255 1 5 4.09 ,904

MPC1 255 1 5 4.15 ,954

MPC2 255 1 5 4.00 1,037

MPC3 255 1 5 3.91 1,012

MPC4 255 1 5 3.94 1,018

PI1 255 1 5 4.01 ,986

PI2 255 1 5 4.01 ,982

PI3 255 1 5 3.98 ,918

PI4 255 1 5 4.18 ,931

Valid N
255
(listwise)
(Souce: Author, 2021)
Overall, the mean values of all observed variables are high, ranging from 3.7 to 4.4.
As a result, respondents seemed to agree that celebrity endorsements have an impact
on their purchasing intentions. When it comes to celebrity attractiveness, the
observed variable CA3 has the highest mean of 4.36, indicating that respondents
strongly agree that a celebrity's physical appeal influences their buying intention.
 48

The mean value of other variables in this construct is similarly greater than 4. As a
result, it is clear that respondents firmly believe in the relationship between
attractiveness and purchasing intention. In terms of celebrity credibility, CC1 has the
highest mean of 3.93, suggesting that respondents believe celebrities are trustworthy.
Respondents also express strong support for the employment of many celebrities in a
promotion. All of the observed variables in Multiple Celebrities had mean values over
3.7. In the case of Multiple Products Celebrity, the observed variables had mean
values ranging from 3.9 to 4.15, indicating that respondents agree on the stimulation
provided by these elements.

Finally, all observed variables of Purchase Intention have mean values of above 3.9,
hence, it can be deduced that respondents have the intention to buy FMCG thanks to
celebrity endorsement.

4.1.4 Exploratory factor analysis

Three tables to evaluate in the exploratory factor analysis (EFA) are The KMO
(Kaiser-Meyer-Olkin) and Bartlett's test, Rotated Component Matrix, and Total
Variance Explained. EFA examines the relationship between variables in all different
groups (factors) in order to detect observed variables that are loaded with multiple
factors or observed variables that are differentially initially factors.

According to Worthington and Whittaker (2006), The KMO is an index used to

consider the appropriateness of factor analysis. The value of KMO must reach a value
of 0.5 or more (0.5 ≤ KMO ≤ 1) which is a sufficient condition for factor analysis to
be appropriate. If this value is less than 0.5, then factor analysis is likely not suitable
for the research data set (Worthington & Whittaker, 2006). According to IBM,
Bartlett's test of sphericity is used to see if the observed variables in the factor are
correlated with each other or not. Bartlett's test has statistical significance (sig
Bartlett's Test < 0.05), showing that observed variables are correlated with each other
in the factor (IBM, n.d.).

Table summarizes the results of the EFA analysis. Only one rotation of the
component matrix is performed. The KMO result is 0.839> 0.8 in terms of the KMO
and Bartlett's Test. The KMO number should be at least 0.5, according to Kaiser
 49

(1974); nonetheless, KMO levels beyond 0.5 are still considered low. The paucity of
observations is indicated by KMO values below 0.5. In other words, it implies that
the sample size for the EFA analysis is inadequate (Kaiser, 1974). According to Field
(2013), the KMO value should be at least 0.5. KMO levels exceeding 0.8, on the other
hand, are optimal (Field, 2013). As a result, the sample size is determined to be
sufficient for conducting a factor analysis.

Table 4.4. Exploratory Factor Analysis

KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .839

Approx. Chi-Square 3347.978

Bartlett's Test of Sphericity df 120

Sig. .000

Rotated Component Matrix

Component

1 2 3 4

CC2 .823

CC1 .802

CC3 .798

CC4 .744

MPC3 .856

MPC4 .855

MPC2 .767

MPC1 .739

MC2 .849

MC1 .827
 50

MC4 .773

MC3 .722

CA3 .836

CA1 .780

CA2 .769

CA4 .686

Extraction of sums of squared loadings

Cumulative %: 75.590
Initial Eigenvalues
Total: 1.210
(Souce: Author, 2021)
The KMO and Bartlett's Test significance values are both less than 0.05. According
to Hair et al. (2010), the significance value of KMO and Bartlett's Test must be less
than 0.05 for data to be appropriate for exploratory factor analysis (Hair, et al., 2010).
As a result, the EFA analysis may be used with the data. Second, because the sample
size is 255, the factor loading of 0.5 is used to execute the rotated component matrix.
The underlying structure of observed variables is shown in the rotated component
matrix as follows:

- Independent variable CC comprises observed variables CC1, CC2, CC3, and

CC4;
- Independent variable MPC comprises observed variables MPC1, MPC2,
MPC3, and MPC4;
- Independent variable MC comprises observed variables MC1, MC2, MC3,
and MC4;
- Independent variable CA comprises observed variables CA1, CA2, CA3, and
CA4.

In the Total Variance Explained table (refer to appendices), there are two items to
examine: Eigenvalues and Cumulative percent. Factors with eigenvalues greater than
 51

1 are listed in the Total Variance Explained table by Field (2005). In the table's
Extraction Sums of Squared Loadings section, such eigenvalues are re-demonstrated.
In the Extraction Sums of Squared Loadings columns, eigenvalues less than 1 are
ignored (Field, 2005). The extraction in this study comes to a halt at the fourth
component, which has an Eigenvalue of 1.210. The cumulative percent of sum
squared loadings is 75.590%, which is greater than 50%. As a result, the exploratory
factor analysis is found to be appropriate for the data. This means that observed
variables can account for up to 75.590 percent of the variance in the four components
retrieved from the rotated component matrix. According to Hair et al. (2010), in social
studies, it is considered adequate if observable factors account for 60% (or less) of
the variance of the components (Hair, et al., 2010, p. 107). Therefore, the cumulative
% of sum of squared loadings of 75.590% is deemed adequate in this study.

4.1.5 Correlation coefficient

There are four independent variables, or predictors in this model, which are
celebrity’s credibility (CC), celebrity’s attractiveness (CA), multiple celebrities
(MC), multiple products celebrity (MPC), and one dependent variable, University
students' purchase intention (PI). Correlation coefficients are presented in Table 4.5.

The correlation results indicate that all of the p-values are .000, which is lower than
0.05, showing that the model is significant. In this study, correlation helped the
researcher to evaluate two phenomena: multicollinearity and relationship between
dependent and independent variables. The Pearson correlation values of the
dependent variables range from 0.418 to 0.639 (p-value = 0.000 < 0.05), which
indicates that there are relationships between the independent and dependent
variables (Lira, 2004).

In details, according to Statistics Solutions (2020), variables are strongly correlated

when the Pearson Correlation coefficient is above 0.5 and moderately correlated
when Pearson Correlation coefficient is within the range of 0.3- 0.49 (Statistics
Solutions, 2020). Therefore, Celebrity’s Credibility, Celebrity’s Attractiveness, and
Multiple Celebrities are strongly correlated with the University students’ Purchase
Intention. Multiple Products Celebrity whose Pearson Correlation coefficients are
 52

within the range of 0.3- 0.49 are moderately correlated with Purchase Intention. In
order to further evaluate how Celebrity Endorsement affects University students’
Purchase Intention, a regression model was run and results are presented in the next
section.

Table 4.5 Correlation Coefficient

PI CC CA MC MPC

Pearson Correlation 1
PI
Sig. (2-tailed)

Pearson Correlation .585** 1

CC
Sig. (2-tailed) ,000

Pearson Correlation .639** .592** 1

CA
Sig. (2-tailed) ,000 ,000

Pearson Correlation .635** .589** .551** 1

MC
Sig. (2-tailed) ,000 ,000 ,000

Pearson Correlation .418** .364** .489** .341** 1

MPC
Sig. (2-tailed) ,000 ,000 ,000 ,000

N = 255

**. Correlation is significant at the 0.01 level (2-tailed).

(Souce: Author, 2021)
4.1.6 Regression analysis and hypotheses testing

A multiple linear regression was run to test how the independent variables affect the
dependent variable.
 53

Table 4.6 Model Summary

Adjusted R Std. Error of

Model R R Square Durbin-Watson
Square the Estimate

1 .740a 0.548 0.541 0.51993 2.004

a. Predictors: (Constant), MPC, MC, CC, CA

b. Dependent Variable: PI

(Souce: Author, 2021)

Table 4.6 shows the model summary of the regression tests. R square and adjusted R
square are 0.548 and 0.541, respectively, which are higher than 0.5. According to
Darlington (1968) a model could be considered as significant if the adjusted R square
is higher than 0.5. In this case, it means that 54.1% of the variance in the dependent
variable could be explained by the predictors. Overall, this model is a good fit and
the findings are significant.

When it comes to The Durbin–Watson value (DW), it is a statistical quantity used to

test the phenomenon of first-order series autocorrelation (testing the correlation of
adjacent errors). DW has a value that ranges from 0 to 4; if the residuals do not have
a first-order serial correlation, the value will fluctuate at 2, if the value is smaller,
close to 0, the residual is positively correlated; if larger, closer to 4 means residual is
negatively correlated. Andy Field (2009) said that, if DW is less than 1 and greater
than 3, we need to really pay attention because there is a very high possibility of first-
order series autocorrelation. Yahua Qiao (2011) said that, usually, the DW value in
the range of 1.5 - 2.5 will not occur the phenomenon of first-order series
autocorrelation.

However, Kumar (2020) claims that the presence of autocorrelation is ruled out if
Durbin-Watson is more than dU and less than 4-dU. (Kumar, 2020). The Durbin-
Watson table of Savin and White (1977) was used in this analysis, with a significance
level of 5%. The Durbin-Watson table reveals that dL= 1.760 and dU= 1.825 for four
 54

predictors and 255 observations (Murhadi, 2011). Clearly, the Durbin-Watson

coefficient is within the range of dU to 4- dU. Hence, this model does not have
autocorrelation.

The ANOVA table, according to Vijalapuram (2019), displays an analysis of variance

in which the Significance of F shows the link between independent and dependent
variables (Vijalapuram, 2019). Because Sig. = 0.000b < 0.05 in the ANOVA table,
the regression model is appropriate for the dataset and relevant in this study.

Table 4.7. ANOVAa

Model Sum of df Mean F Sig.

Squares Square

1 Regression 81.892 4 20.473 75.735 .000b

Residual 67.582 250 .270

Total 149.474 254

a. Dependent Variable: PI

b. Predictors: (Constant), MPC, MC, CC, CA

(Souce: Author, 2021)
There are four elements to examine in the Coefficients table: Collinearity Statistics,
Significance of T, unstandardized beta, and standardized beta. Variance Inflation
Factors (VIF) and Tolerance data must be examined in order to determine the
likelihood of multicollinearity. VIF statistics are above 1 and below 2, as stated in the
Coefficients table. VIF values in the range of 1- 5 suggest the lack of considerable
multicollinearity, according to Klimberg and McCullough (2012). (Klimberg &
McCullough, 2012, p. 98). In addition, the table of Coefficients reveals that Tolerance
statistics are relatively high (all above 0.5). Tolerance statistics of less than 0.4,
according to Allison (1999), may raise the issue of multicollinearity (Allison, 1999).
High tolerance values, according to Weisburd and Britt (2013), suggest minimal
multicollinearity (Weisburd & Britt, 2013, p. 541). As a result, it is fair to conclude
that multicollinearity does not exist.
 55

Table 4.8 Coefficients

Coefficientsa
Model Unstandardized Standardized t Sig. Collinearity
Coefficients Coefficients Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) .605 .210 2.885 .004
CC .145 .048 .174 3.029 .003 .548 1.826
CA .317 .060 .309 5.253 .000 .522 1.917
MC .304 .051 .331 5.975 .000 .588 1.701
MPC .082 .044 .090 1.840 .067 .750 1.334
a. Dependent Variable: PI
(Souce: Author, 2021)
The unstandardized Beta represents the slope of the line connecting independent and
dependent variables, according to Statistics Solutions (Statistics Solutions, n.d.). The
regression equation is built as follows using the unstandardized beta coefficient:

BI = 0.605 + 0.145×CC + 0.317×CA + 0.304×MC + 0.82×MPC

According to Statistics Solutions (2020), standardized Beta indicates fluctuations of

standard deviation of the dependent variable following a unit of change in a particular
independent variable. The standardized Beta helps identify the predictor with the
strongest correlation with the dependent variable (Statistics Solutions, 2020). Using
the standardized beta coefficient, the regression equation is formed as follows.

BI = 0.174×CC + 0.309×CA + 0.331×MC + 0.90×MPC

As the regression model is significant, the coefficients (Table 4.8) were taken into
consideration to test the significance of the study and the validity of the hypotheses.
To further testing the four hypotheses, the sig. values and standardised Beta are taken
into consideration.

H1: Celebrity’s credibility has a positive impact on the University students’

purchase intentions of FMCG products.
 56

The p-value of credibility is .003 < .05, indicating that 99.7% of the variances in
University students' purchase intention of FMCG could be explained by celebrities'
credibility. As a rule of thumb, the Beta coefficient is statistically significant. The
beta value is .174>0, which means that this relationship is a positive effect. For every
one unit change in the credibility, the University students' purchase intention will
vary by .178 unit. The first hypothesis is thus accepted.

H2: Celebrity’s attractiveness has a positive on with University students’ purchase

intentions of FMCG products.

For the second hypothesis regarding the independent variable ‘attractiveness', its sig.
value is .000<.05, proving that there is a relationship between celebrities'
attractiveness and the University students' purchase intention of FMCG products. In
addition, as the Beta coefficient is .309>0, for every one unit vary in the expertness,
the University students' purchase intention will also vary by .309 unit, and vary in the
same way. Hypothesis 2 is then accepted.

H3: Advertising campaigns featuring more than one celebrity endorsing the FMCG
product, have a positive impact with University students’ purchase intentions.

The p-value of multiple celebrities is .000<.05, which means the relationship between
multiple celebrities in one campaign and University students' purchase intention of
FMCG products in Vietnam is significant. The beta coefficient, which is .331,
statistically measures the degree of this relationship. It means that for every one unit
increases in the congruence between FMCG products and celebrity endorsers,
University customers' purchase intention will also increase by .331 unit, and vice
versa. In addition, of all the four independent variables, the beta coefficient of
multiple celebrities is the highest. Thus, it could be concluded that in this research
context, multiple celebrities is the most important factor of celebrity endorsement on
TV advertisements that affect University customers' purchase intention.

H4: Celebrities who endorse more than one FMCG product/brand at the same time
have a positive impact on University students’ purchase intentions.
 57

The first condition to consider whether or not to accept a hypothesis in a regression

test is considering the p-value. In this case, the p-value of physical attractiveness is
.067>.05. It means that 93.3% of the variance in University students' purchase
intention of FMCG products could be statistically explained by multiple products
celebrity. As a rule of thumb, the beta coefficient becomes insignificant and the
hypothesis is rejected. Generally, in this research context, multiple products of
celebrity endorsers have no or little effect on University customers' purchase
intention.

4.2 Discussion

Results gained from this study suggest that credibility has a positive impact on
University students’ purchase intention. This finding is similar to Winter (2019),
which implied that credibility increases brand loyalty and affects the purchase
intention of customers. Ohanian (1991) also indicated that honest and reliable
celebrity endorsers tend to be more powerful in drawing attention and positive
responses towards the ads. However, this finding is totally contrary to other research
about the relationship between Celebrity Endorsement and University customers’
purchase intention in Vietnam. In Vietnamese context, it is suggested that consumers
do not really care whether the celebrities are honest or not (Ho et al., 2020; Nguyen,
2021), especially when payments are made online (Uyen et al., 2017). This conflict
could be explained by the differences in the research context and target audiences as
previous studies were taken on mobile phone sectors or Vietnamese young customers.
Meanwhile, the context of this dissertation is the FMCG market with young
customers.

The finding about physical attractiveness is quite similar to previous studies in

Vietnamese context. Nguyen (2021), Ho et al. (2020), Uyen et al. (2017) all
highlighted the role of attractive celebrities when delivering marketing campaigns in
Vietnam. This dissimilarity could be explained by the differences in the research
category and target audiences. While Nguyen (2021) and Uyen et al. (2017) studied
OPPO mobile phones and took a specific celebrity as a case study, this research only
chose general FMCG products without naming a specific case. By doing so, this study
 58

aims at gaining both theoretical and practical knowledge in the personal hygiene
category, and prevents data from not being generalised.

The use of more than one celebrity in an advertisement proved to have a positive
relationship with University consumers’ purchasing intentions and their attitude
towards the ad seems to be different. In this research question it was used once again
an advertisement, which was showing a bank service and respondents agree with the
fact that the ad becomes more dynamic and appealing that is aligned with previous
studies. Those have concluded that when using more than one celebrity in a
campaign, the consumer has a positive impact on attitude toward the advertisement,
attitude toward brand and purchase intentions (Saleem, 2007). Furthermore, Hsu and
McDonald (2002) also concluded that this technique would help the advertisers to
reduce the boredom of the ad. However, the use of multiple endorsements did not
proved to be worthwhile if practionners want to make the ad more convincing or more
persuasive.

Finally, despite the fact that same celebrity appears endorsing more than one
product/brand, it has got a positive but weak relationship with University students
purchasing intentions. Findings from this study, present evidence that respondents
agree with the idea that when the same celebrity endorsers several different brands,
the phenomenon of overexposure occurs and makes the consumer confused and
unable to recall correctly all the endorsed brands. Past research on multiple product
endorsements (Mowen and Brwon 1981; Mowen, Brown and Schulman 1979)
suggest that it does negatively affect consumers assessment of the endorser's
trustworthiness, brand image and ad evaluations, however respondents of this study
showed to be totally indifferent to those aspects.
 59

CHAPTER 5: RECOMMENDATIONS AND CONCLUSION

5.1 Outlook of FMCG

This research is undertaken in the context of Vietnamese FMCG industry. In order to

gain a comprehensive overview of this outlook, analyses on Vietnamese macro
environment and Vietnamese fast-moving consumption market will be respectively
provided.

Vietnam has an emerging economy and has shown a rapid development since the
economic reform in 1986. For the period from 2002 to 2018, the GDP of Vietnam
rose by 2.5 times, the poverty rate did fell significantly from 70% to nearly 6%, with
over 45 million people were out of the poverty situation. The country has shown a
stable macroeconomic situation with a high rate of GDP growth and a gradual
increase in the total sales of goods and services. Besides, Vietnam is a country with
high population, thus, it is suggested that domestic demand is high and companies
have chances to compete in the market (World Bank, 2019; Kantar, 2019; Tien et al.,
2020).

FMCG industry, which relates to fast-moving consumer good, has shown a prominent
growing scenario in Vietnam over the years. There are such unique attributes shaping
the nature of FMCG industry: Fast purchase decision, Low profit per unit, Price per
product is low, Short shelf-lives and Products are distributed to end-users via retailers
(Kitchen, 1989; Tien et al., 2020). Regarding the rate of growth, FMCG industry
ranks one of the fastest-growing industry in Vietnam with the growth rate of two-
digit number every year. Moreover, Vietnam was also recorded as the country with
highest growth rate of FMCG sector in Asia. (Tien et al., 2020; Kantar, 2019). In
addition, according to the report of Kantar (2019), the key decision makers in FMCG
sector tend to be optimistic as they agree that Vietnamese economy Vietnamese
consumers' purchasing powers will increase in the short-run. Besides, it is reported
that households in Vietnam tend to spend most of their budgets on fresh food and
FMCG. This perception clearly positively affects FMCG market as Ludvigson (2004)
suggested that consumers' perception and confidence have a positive relationship
with their spending.
 60

Contrary to the strong growth rate of 2019, before the pandemic of COVID-19, in the
first two months of 2020, the FMCG industry showed signs of slowing down with a
growth rate of 5.2%, slightly down from 6.3 % of the same period last year. At the
time when the government officially announced the infectious epidemic in Vietnam
(February 1, 2020) and the 17th case appeared (March 6, 2020), the demand for food,
food and essential goods was very high. Weaknesses increased dramatically, creating
a disparity in FMCG market share.

YTD FEB 2020 COVID-10 INITIAL IMPACT

(8 w/e 23rd Feb 2020 vs. 8 w/e 24th Feb 2019) (4 w/e 23rd Feb 2020 vs. 4 w/e 24th Feb 2019)

Value change % Value change %

FMCG +5.2% FMCG +10.0%

Diary +8.5% Diary +10.3%

Beverages -6.8% Beverages -14.1%

Packaged Foods +10.8% Packaged Foods +26.2%

Personal Care +14.5% Personal Care +29.0%

Household Products 1.7% Household Products +11.4%

Figure 5.1 The change in consumer tastes of FMCG products between the
period of stabilization and the period of initial impact of COVID-19

(Kantar, 2020)

Accordingly, canned, frozen, ready-to-eat foods, and dairy products have an increase
of up to 2.5 times compared to the forecast in the same period because of high storage
demand. Food can be stored longer. Following the preference for personal hygiene
and health care products, household appliances also doubled. On the contrary, the
beverage market dropped sharply, especially for carbonated and alcoholic beverages
when this item was no longer a priority in consumers' shopping carts.
 61

Figure 5.2. Modern shopping channels are gaining the upper hand when
building trust with shoppers (Kantar, 2020)

In terms of advertising activities in Vietnamese FMCG sector, studies showed that in

order to impress consumers, advertisements need to run frequently and widely
through a set of traditional print ads and commercial television videos. In addition, it
is suggested that for fast consumption products, people prefer rational advertisements
to emotional ones because these ads provide consumers with helpful knowledge and
instructions for the products. However, previous research rarely mentioned the use of
celebrity endorsement in Vietnamese FMCG sector in their findings. To the best
knowledge of the researcher, this tool is more prevalent in promoting slow
consumption goods such as phones, real estate, or home appliances (Le and Nguyen,
2007; Khang and Ngoc, 2018).

As the lives of consumers and families become busier, they seek more convenient
solutions. In fact, consumers shop for FMCG products online more than before.
Online stores are also offering same-day delivery to preserve product freshness – the
equivalent of a consumer buying in person. This is also a factor motivating consumers
to accept and prioritize using these convenient services. Technology is changing the
way consumers eat and drink. Busy lifestyles pave the way for products with less
preparation and packaging requirements. Supermarkets are also increasing their
competition by offering a wide range of convenient, ready-to-eat meal options from
snacks, pre-cut fruit-vegetables to main meals. And FMCG manufacturers are also
 62

trying to meet the needs and desires of consumers in many aspects of convenience.
For example, some foods are being improved by pre-processing to make it more
convenient for the consumer, easier to prepare, and still retain the flavor compared to
traditional suppliers.

Shopping is now not only meeting pure and basic needs such as eating and drinking,
but also becoming a form of entertainment and experience. An increasingly popular
trend is to include users in the production process, creating products. There is no one
who does not feel loved and attached to the product that they themselves participated
in the process of creating it. That is the message that some brands are using to attract
customers, and the message also matches the psychology of modern consumers
wanting to express themselves. This promotes consumer involvement in product
production, self-sufficiency and personalization.

According to research by Kantar, with a growth rate of 11.6%, the development

potential of the FMCG industry in Vietnam is very large. With the development of
technology and e-commerce platforms, FMCG businesses have many advantages in
approaching customers, processing orders and exchanging goods. Strong FMCG
consumer goods on post-pandemic e-commerce platform include food and beverage
(up 34%), home care and personal care products (up 30%), dairy products (up 22%),
baby food (up 23%), home appliances plus electronics all up 21% (Kantar, 2021).

Conducting the research of celebrity endorsement and University students' purchase

intention in Vietnamese FMCG market is different from conducting in any other
context. Firstly, as Vietnam is an emerging country with a high rate of development
(World Bank, 2019) and its FMCG industry constitutes a significant percentage of
overall market value (Kantar, 2019), companies and organizations will help an
abundance of opportunities to compete and grow. Secondly, since the context of
Vietnam is fast-growing and ever-changing (Kantar, 2019), which is very different
from a developed country, findings gained from this research are expected to be
interesting and provide with new insights of the market. Thirdly, consumer goods are.
However, demographic and social profiles of Vietnamese people are likely to change
rapidly (World Bank, 2019), which may lead to significant changes in consumers'
 63

demand and perception. Thus, the implications summarized from this study may not
work in the long-run and cannot adapt to these changes because data is collected at
the same time.

5.2 Limitations of the study

As it happens with the majority of studies, no honest research is complete without

admitting the limitations that were faced during the study. The present study has, also,
some constraints that need to be mentioned.

The first limitation is related with the sampling method that fails in not being
representative of the entire population and consequently the values obtained from the
statistical tests are considered to be true within the sample used but not to be
extrapolated to the universe.

The second restriction is that there are 255 samples in Hanoi and primarily in the
neighbourhood of the researcher. As a result, it may not be well-presented to the
entire community, particularly Vietnamese university students. While they make up
the majority of the population, the results for the total population cannot be
conclusive.

Next, this research looks at University customers who buy FMCG items. However,
such items cater to diverse demographics, and not all of them have the same target
market. Besides, this study, and more especially, the survey construct, contains flaws
that must be addressed. When doing EFA testing, the issue arises when the
components cannot be rotated and organized into various components. This occurs
when the components being examined are not differentiated. This lack of distinction,
or perhaps a lack of thorough knowledge of the survey on the part of the respondents,
resulted in extremely similar features among variables. Because of this, the
component matrix cannot be rotated, and all of the independent variables have the
same underlying structure. The issue should be recorded in order to perform future
polls.Additionally, limitation is that the level of understanding of the problems in the
questionnaire is unregulated. When respondents respond to the researchers' requests
rather than taking the questionnaire seriously, this might happen. However, it was
 64

assumed that everyone would answer the questionnaire honestly, which made it
difficult for the study to be completely honest.

Despite the aforementioned constraints, the empirical research and its limitations
serve as a foundation for future recommendations in order to improve future studies
into the same area.

5.3 Recommendations for future research

Further research on this problem should first include a diverse range of ages in the
sample, keeping in mind that this study mostly focused on responders under the age
of a typical student. It would also be fascinating to investigate not only student
perspectives, but also those of customers at other phases of life, such as housewives
and/or children, who all get a significant amount of targeted advertising in Portugal
today. Including them in future study would be beneficial in gaining a general
understanding of Vietnamese customers.

Future research might benefit from the use of focus groups to get customer opinions
and views from a variety of perspectives. Despite the fact that this study relied on a
quantitative methodology to gather data, qualitative studies such as semi-structured
interviews and focus groups would allow researchers to dig deeper into the answers
and gain a better grasp of the research issues.

When it comes to the regression analysis, because of its influence on purchase

intention, the factor of multiple product celebrity should receive a lot of attention,
according to the regression study. Source features are more convincing in television
commercials than in print commercials, according to Chaiken and Eagly (1983).
Despite the fact that it would make the questionnaire excessively long, it would be
fascinating to include TV advertising, not only because of the sources' features, but
also because of the general dynamic it would add to the study. Another option is to
utilize those TV commercials as the focus group's material.

The conduct of the survey should be the focus of future study on this issue. Finding
the proper sample of respondents is critical, but so is ensuring that they have a
thorough understanding of the study and, more particularly, the survey. The EFA
 65

testing portion described in the preceding section demonstrates this. Respondents

would be more clear and definite in their responses if they had the proper perspective
on the survey, the questions, and each variable. Furthermore, this indicates a survey-
conducting issue. It must have a distinct structure that distinguishes each component
and variable.

Finally, McCracken's (1989) Meaning Transfer Model should be investigated further.

It is also possible to analyze how the celebrity's meaning is transferred to the product,
the reasons for the media's selection of such celebrities, and how customers are drawn
to their features, which leads to purchasing behavior.

5.4 Practical Implications

This study contributes practical implications on how marketers should deliver their
Celebrity Endorsement campaigns through all of channels. Of the four independent
variables, the multiple celebrities in a marketing campaign is the most influential
factor towards University students’ purchase intention. Normally, marketers favour
celebrities who are popular to the target audiences to gain public support (Zafar and
Rafique, 2012). However, it seems to be not enough in Vietnamese FMCG context
as customers prioritise the match-up between products and celebrities. Thus, for firms
selling FMCG products, it would be helpful to run an ad hoc study on their target
customers and evaluate the degree of congruence between the products and multiple
celebrities. By doing so, the effectiveness of the ads will be maximised as the target
audiences are happy to receive the ads (Mishra et al., 2015; Wright, 2016).

Secondly, it is of paramount importance for marketers to choose a credible celebrity

when promoting FMCG products. Besides, celebrities with attractiveness appear to
be essential in this study context. If celebrities are truthful and knowledgeable about
the endorsed products, customers feel the sense of reliable and high-quality and trust
the products. Meanwhile, attractive Celebrity Endorsement draws the attention of
customers towards the ads, with positive effects on the brand perception and moderate
effect on strengthening the purchase intention (Ohanian, 1991).

To maintain the credibility of the FMCG products as well as the Celebrity

Endorsement campaign, it is suggested that marketers should carefully investigate the
 66

personal life and personalities of the celebrities to ensure they are trusted by the
public. Besides, it would be better if brands and companies run a potential risk
prediction for the celebrities they plan to work with. An example is Vietnamese
famous comedian, Le Duong Bao Lam, who gradually lost his credibility to the public
due to promoting several low-quality and unbranded products. As customers no
longer trust him, other high-quality brands promoted by him were accidentally
affected.

5.5 Contributions
FMCG industry is the subject of this study, which considers five aspects of
influencers. Based on primary data, it is clear that relevance, competence,
trustworthiness, attractiveness, and familiarity influence customers' purchase
decisions in the fashion sector. Because this study includes both theoretical and
practical information, the three research objectives are met.

In terms of theoretical contribution, this study employed a new conceptual framework

than prior research and was conducted in a fresh environment, the fashion industry.
Reliability tests, EFA, Pearson correlation, and regression analysis were used to
examine the connection between independent and dependent variables.

When it comes to the academic standpoint, this study has helped to close a research
gap on the elements that influence customer purchase decisions for FMCG items in
Hanoi. This research is being carried out in Hanoi and focuses on a specific segment
and industry. Furthermore, it clearly identifies the elements that have a positive and
direct impact on customers' decision-making while purchasing fashion products.
 67

5.6 Conclusion
This study is undertaken on Vietnamese FMCG industry and considers the four
dimensions of CE. Based on primary data, it is evident that in Vietnam, University
students toward FMCG are affected by the credibility, attractiveness and multiple
endorsements of celebrities while multiple products celebrity barely influences
customers. The three research objectives have been achieved as this study has filled
in both theoretical and practical knowledge.

Celebrities endorsing companies has become a popular way to promote brands and
improve a company's image. After considering the data, it becomes clear that all of
the participants are well aware of the trend of celebrities promoting items. The study
reveals that majority of respondents are positively influenced by celebrity
endorsement in an advertisement. In terms of theoretical contribution, this study was
conducted in an entirely new context, which is FMCG industry and adopted a
different conceptual framework compared to other studies in Vietnam. The
relationship between independent and dependent variables have been verified
through reliability test, multiple correlation and multiple regression.

The findings show that celebrity attractiveness, trustworthiness, the presence of many
celebrities, and the presence of multiple products celebrity all influence buy
intentions. It is critical for marketing managers to choose the proper celebrity to
promote their products. Not all celebrities are appropriate for all product categories
or target audiences. As a result, marketing managers must map product qualities,
personality traits, and target audience characteristics when choosing a celebrity.
Furthermore, the chosen celebrity should not have supported too many items or
businesses that are competitors. Ignoring these factors may cause consumers to get
confused and have a negative impact on the brand's image. Companies should not
overlook brand quality and loyalty, since both have a positive relationship with
purchase intent.

This survey also revealed that brand is the most important element affecting
customers' purchasing decisions. Thus, rather of relying just on celebrity
endorsement, firms should take a strong interest in improving the brand value of their
 68

FMCG products. Celebrity endorsement, on the other hand, may be utilized

imaginatively to boost the FMCG company's brand value. Consumers should be
protected from anomalies in the quality, quantity, and pricing of FMCG brands
sponsored by celebrities, since consumers have a propensity to place more trust in
products endorsed by celebrities. Future researchers should use a larger sample size
and focus on a specific age group and economic level. To assess the impact of
celebrity endorsement on FMCG purchase, only four key criteria were considered.
Additional variables should be considered by future scholars for further investigation.

Regarding the managerial implications, multiple celebrity endorsement is the most

significant factor. Thus, marketers should find relevant endorsers when promoting
their FMCG products in Vietnam. By doing so, the brand values and brand messages
are fully transferred from the products to the customers. In addition, celebrities’
credibility and attractiveness also play an essential role in shaping University students
in Vietnamese FMCG context. Marketers should be mindful when adopting CE and
make sure their credibility to the public is checked.
 69

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 vii

APPENDIX
Appendix 1. Questionnaire

Dear Participants,

My name is Nguyen Ha My. I am currently a final year undergraduate Business

Administration student at Foreign Trade University. This research is conducted
by me, which is part of my thesis. The purpose of this study is to investigate the
impacts of celebrity endorsement on University Students’ Purchase Intention in
Hanoi during the COVID-19 period. You are recommended to read and answer
the following questions. Please do not include your personal information in your
answers. Your responses will be recorded anonymously and your participation is
voluntary.

Thank you for your time and cooperation.

-----

PART 1: DERMOGRAPHIC PROFILE

1. Your gender:

• Female
• Male
• Others

2. Your age:

• 18 – 21
• 22 – 24
• 25+

3. Your educational level:

• Undergraduate
• Graduate
• Postgraduate

4. Your income level:

 viii

• 3 to 5 million VND
• 5 to 10 million VND
• Higher than 10 million VND

5. You often shop on channel during COVID-19 pandemic:

• Online: e-commerce, websites, social media platforms…

• In-store

PART 2: CELEBRITY ENDORSEMENT TOWARDS CUSTOMERS'

PURCHASE INTENTION

FMCG = Fast Moving Consumer Goods. FMCG includes household products,

functional foods, food and personal care products, cleaning and laundry products,
beverages, etc. Please rate your answer from 1 to 5, with 1 is strongly degree, and 5
is strongly agree.

Celebrity's Credibility

1 Celebrities are knowledgeable about the FMCG

that they promote

2 Celebrities totally understand the FMCG

products they promote

3 Celebrities are experienced with the FMCG that

they promote

4 Celebrities are experts in terms of the FMCG

that they promote

Celebrity’s Attractiveness

1 When promoting FMCG, celebrities are

beautiful

2 When promoting FMCG, celebrities are classy

 ix

3 When promoting FMCG, celebrities are elegant

4 When promoting FMCG, celebrities are

charming

Multiple celebrities in an advertisement who promote FMCG

1 The presence of more than one celebrity in an

advertisement makes it trustworthy

2 The presence of more than one celebrity in an

advertisement makes it convincing

3 More than one celebrity in a single

advertisement makes it appealing

4 More than one celebrity in a single

advertisement makes it dynamic

Celebrities who promote more than one FMCG at the same time

1 My opinion about the celebrity positively

changes because they promote many different
products

2 When a single celebrity promotes more than one

brand, I still remember all the endorsed brands

3 My level of trust about the celebrity positively

changes because they promote more than one
brand in a short period of time

4 My opinion about an advertisement positively

changes when I see the same celebrity
promoting many different products
 x

Purchase Intention: Think of FMCG which are promoted by celebrities

1 If I were in store or online, I tend to take a look

at these products

2 I tend to seek out these products

3 I buy these products

4 I like these products than those products which

are not promoted by celebrities
 xi

Appendix 2. SPSS output: Descriptive Analysis

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

CC1 255 1 5 3,93 1,034

CC2 255 1 5 3,85 1,029
CC3 255 1 5 3,87 1,044
CC4 255 1 5 3,89 1,121
CA1 255 1 5 4,31 ,847
CA2 255 1 5 4,20 ,894
CA3 255 1 5 4,36 ,853
CA4 255 1 5 4,23 ,854
MC1 255 1 5 3,91 ,988
MC2 255 1 5 3,73 ,939
MC3 255 1 5 4,02 1,027
MC4 255 1 5 4,09 ,904
MPC1 255 1 5 4,15 ,954
MPC2 255 1 5 4,00 1,037
MPC3 255 1 5 3,91 1,012
MPC4 255 1 5 3,94 1,018
PI1 255 1 5 4,01 ,986
PI2 255 1 5 4,01 ,982
PI3 255 1 5 3,98 ,918
PI4 255 1 5 4,18 ,931
Valid N (listwise) 255
 xii

Appendix 3. Realiability Analysis

1. Celebrity’s Credibility

Reliability Statistics

Cronbach's N of Items
Alpha

,896 4

Item-Total Statistics

Scale Mean if Scale Variance Corrected Item- Cronbach's

Item Deleted if Item Deleted Total Alpha if Item
Correlation Deleted

CC1 11,61 8,011 ,777 ,863

CC2 11,69 7,941 ,798 ,855
CC3 11,66 7,909 ,788 ,858
CC4 11,64 7,868 ,716 ,887

2. Celebrity’s Attractiveness

Reliability Statistics

Cronbach's N of Items
Alpha

,891 4

Item-Total Statistics

Scale Mean if Scale Variance Corrected Item- Cronbach's

Item Deleted if Item Deleted Total Alpha if Item
Correlation Deleted

CA1 12,79 5,370 ,735 ,870

CA2 12,90 5,005 ,792 ,848
CA3 12,74 5,139 ,803 ,845
CA4 12,87 5,399 ,716 ,877
 xiii

3. Multiple Celebrities

Reliability Statistics

Cronbach's N of Items
Alpha

,888 4

Item-Total Statistics

Scale Mean if Scale Variance Corrected Item- Cronbach's

Item Deleted if Item Deleted Total Alpha if Item
Correlation Deleted

MC1 11,84 6,149 ,823 ,828

MC2 12,02 6,425 ,810 ,835
MC3 11,74 6,193 ,766 ,852
MC4 11,66 7,287 ,626 ,900

4. Multiple Products Celebrity

Reliability Statistics

Cronbach's N of Items
Alpha

,864 4

Item-Total Statistics

Scale Mean if Scale Variance Corrected Item- Cronbach's

Item Deleted if Item Deleted Total Alpha if Item
Correlation Deleted
MPC1 11,85 7,314 ,631 ,857
MPC2 12,00 6,799 ,667 ,845
MPC3 12,09 6,479 ,772 ,801
MPC4 12,07 6,412 ,782 ,796

5. Purchase Intentions

Reliability Statistics
Cronbach's N of Items
Alpha
,817 4
 xiv

Item-Total Statistics

Scale Mean if Scale Variance Corrected Item- Cronbach's

Item Deleted if Item Deleted Total Alpha if Item
Correlation Deleted

PI1 12,18 5,322 ,686 ,746

PI2 12,18 5,605 ,612 ,782
PI3 12,21 5,772 ,635 ,771
PI4 12,01 5,779 ,618 ,779
 xv

Appendix 4. SPSS output: EFA

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. ,839

Approx. Chi-Square 3347,978

Bartlett's Test of Sphericity df 120

Sig. ,000

Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Variance % Total Variance % Total Variance %
1 7.430 46.437 46.437 7.430 46.437 46.437 3.178 19.864 19.864
2 2.149 13.429 59.866 2.149 13.429 59.866 3.024 18.899 38.764
3 1.305 8.159 68.025 1.305 8.159 68.025 2.992 18.702 57.466
4 1.210 7.565 75.590 1.210 7.565 75.590 2.900 18.125 75.590
5 .792 4.953 80.543
6 .727 4.541 85.085
7 .489 3.058 88.142
8 .362 2.260 90.402
9 .331 2.070 92.473
10 .294 1.839 94.312
11 .268 1.673 95.985
12 .212 1.326 97.311
13 .153 .956 98.267
14 .133 .833 99.099
15 .094 .590 99.690
16 .050 .310 100.000
Extraction Method: Principal Component Analysis.

Rotated Component Matrixa

Component

1 2 3 4
CC2 ,823
CC1 ,802
CC3 ,798
CC4 ,744
MPC3 ,856
MPC4 ,855
MPC2 ,767
MPC1 ,739
MC2 ,849
MC1 ,827
MC4 ,773
MC3 ,722
 xvi

CA3 ,836
CA1 ,780
CA2 ,769
CA4 ,686

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
 xvii

Appendix 5. Pearson Correlation

Correlations

PI CC CA MC MPC

Pearson Correlation 1 ,585** ,639** ,635** ,418**

PI Sig. (2-tailed) ,000 ,000 ,000 ,000

N 255 255 255 255 255

Pearson Correlation ,585** 1 ,592** ,589** ,364**
CC Sig. (2-tailed) ,000 ,000 ,000 ,000
N 255 255 255 255 255
Pearson Correlation ,639** ,592** 1 ,551** ,489**
CA Sig. (2-tailed) ,000 ,000 ,000 ,000
N 255 255 255 255 255
Pearson Correlation ,635** ,589** ,551** 1 ,341**
MC Sig. (2-tailed) ,000 ,000 ,000 ,000
N 255 255 255 255 255
Pearson Correlation ,418** ,364** ,489** ,341** 1

MPC Sig. (2-tailed) ,000 ,000 ,000 ,000

N 255 255 255 255 255

**. Correlation is significant at the 0.01 level (2-tailed).

 xviii

Appendix 6. Regression

Model Summaryb

Model R R Square Adjusted R Std. Error of the Durbin-Watson

Square Estimate

1 ,740a ,548 ,541 ,51993 2,004

a. Predictors: (Constant), MPC, MC, CC, CA

b. Dependent Variable: PI

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 81,892 4 20,473 75,735 ,000b

1 Residual 67,582 250 ,270

Total 149,474 254

a. Dependent Variable: PI
b. Predictors: (Constant), MPC, MC, CC, CA

Coefficientsa

Model Unstandardized Standardized t Sig. Collinearity Statistics

Coefficients Coefficients

B Std. Error Beta Tolerance VIF

(Constant) ,605 ,210 2,885 ,004

CC ,145 ,048 ,174 3,029 ,003 ,548 1,826

1 CA ,317 ,060 ,309 5,253 ,000 ,522 1,917

MC ,304 ,051 ,331 5,975 ,000 ,588 1,701

MPC ,082 ,044 ,090 1,840 ,067 ,750 1,334

a. Dependent Variable: PI
xix
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xxi