Brand Advertising and Celebrity Endorsement: The Impact on Consumer Behaviour
1. Introduction
Branding and advertising is going through a paradigm shift. Traditional methods of advertising and branding are taking a different path by using celebrities to endorse a brand and approve its credibility, quality, and trust. While the recent events shows that many of these issues may go wrong, often with huge bill on the brand, both in terms of finance and brand equity. More and more brands are now interested in and using this method of advertising for their brands. However, the motivations for using such endorsements remain unknown while some argue it is the influence these celebrities have on the brand and consumers. Little is known about how consumer choices are influenced by such endorsements, as I wonder whether they choose a product that they had a bad experience (previously) based on the endorsement of a celebrity. In this case, the aim is to understand what factors motivate consumers to make a decision when they are exposed to celebrity endorsed brand advertising. This study is conducted within the scope of this paper using secondary data analysis.
1.1. Motivation
As a student who aspires to become a marketing and branding professional, it has always been in the best interest to understand how celebrities influence consumers’ buying decisions and cognitive thinking. More interestingly, how often people see a credible or trustworthy endorsement in television or on mass media? Despite these doubts, I believe that conducting a study in this area would provide me with better knowledge and understanding about how celebrity endorsements and consumer behaviour is related, which would help me in understanding the marketing and branding function in a better way.
1.2. Aims and Objectives
The main aim of this paper is to investigate and study about the influence of celebrity endorsement on the consumer, whereas the major objectives of this study are:
• To critically examine how celebrities can help consumers in identification of brands and products
• To critically discuss and evaluate how properly devised and planned endorsement can influence the tastes and preferences of the consumer
1.3. Method of Analysis
In this paper, a case study method is used to analyse the problem. Three cases are chosen in which two of them shows failed endorsement efforts with highly paid celebrities, while one of them represents a highly successful endorsement campaign which has been going on for years. The three brands used in this case study analysis are:
1. Blackberry – Major smartphone manufacturer
2. Kellogg’s – Leading cereal and breakfast food maker
3. Air Jordan from Nike – Specialised shoes for basketball players from Nike – branded and sold under the name of legendary basketball player Michael Jordan, who is also the endorser for the brand
However, the analysis only deals with the endorsement related activities and brand attitudes, or personalities, and not related to the entire organisation as a whole, as the main aim of this paper is analyse the research problem from a consumer behaviour perspective, and to analyse the reason for failure and success, so that better findings can be made to relate with consumer behaviour.
2. Literature Review
Branding has always been a consideration among marketing researchers. Brands have been around for many years and are considered as a distinguishing factor that differentiates products of one company from others. According to Keller (2008), a brand can be “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and service of one seller or group of sellers and to differentiate them from those of competition”. Even though this is the traditional definition of brand, this definition has evolved over time, and became more complex and comprehensive term in marketing. Keller (2008) viewed that branding has evolved to become a tool to create awareness, reputation, prominence, and such in the market. In short, a brand can be considered as both the above. It must distinguish the business and products, while creating opportunity to carry out day-to-day marketing tasks………………
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