Impact of endorsement on Brand image
Introduction
Overview:
When a brand launches a product, the major part that affects the purchase is the brand image and loyalty of the consumers towards the brand. If the consumers do not trust the brand and does not have a good image of a brand in their minds than it negatively affects the purchases of the products of that brand.
Definition of a Brand and endorsement
According to Kotler and Keller (2006:274), a brand image can be defined it as, “name, term, sign, symbol, design or a combination of them Endorsement and its types intended to identify the goods or services of one seller or group of sellers to differentiate them from those of competitors”.
My research deeply focuses on how celebrity endorsement affects the brand image, and what factors of celebrity endorsement influence the advertisements and the brand image of a company. Endorsement is defined
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Another objective was to explore the connection between different brands and the psyche of consumers and on which factors a model is chosen for endorsement which helps a brand to identify the critical areas that need attention and concentration.
1. Primary objectives:
• The impact and effects of celebrity endorsement on a brand’s image.
2. Secondary objectives:
• To study the perception of the consumer of celebrity’s personality on the image of brand and how that image is created with the help of an endorser.
• To understand how the different types of endorsers can have different effects, and the way their life events affect the perception of the brand in a consumer’s minds.
• Lastly, to know how celebrity endorsed ads are perceived differently from other advertisements.
Research question:
1. What is the Impact of celebrity endorsement on brand
If a brand has a good reputation, customers and businesses, are more likely to purchase that brand. Examples include logos and packaging. (B2B and B2C Similarities and Differences , n.d.) These need to capture the attention of their customers because businesses have competition and therefore need to stand out.
Many people that watch TV often get interested in commercial products because of the celebrity promoting the item. Sue Jozui in her excerpt, argues that applying a famous person to an advertisement should be boycotted because they are supplying the spectator with false information. The author supports her claim by first presenting that consumers expect the object they are purchasing off the advertisement to be an enhancement from their previous purchases. She continues by stating that it is insulting to buyers when famous people are encouraging an item that they simply do not even utilize theirself. The author’s purpose is to boycott celebrities from advertisements and construct laws in order to terminate the fallacious statistics that is
His coach, manager and he himself have worked collaboratively to make this up to this far. There are instances, when he envisaged his success and took it to the next level through meritocracy and proper branding strategy which resulted him being sponsored by so many top notch brands. There are few areas where branding, has played the pivotal role in the success factor. The few points that come up as analysis are: • Endorsing celebrities has the potential to either enhance or damage a company’s image. Celebrities are often in the spotlight, so their behaviors need to correlate with the mission and values of the firm.
The studies were about Tiger Wood’s impact on Nike’s sales and how the celebrity endorsement affects the consumer’s utility during the endorsement period. For example, the statistical data demonstrated that Nike earned approximately $176 million in extra revenue during Tiger Woods’ endorsement period. Especially, Nike golf balls were sold additional 1,416,000 each month when Tiger Woods was under a Nike’s contract. This showed that the celebrity endorsements lead to the higher sales and this can become a firm’s greatest promotional strategies. However, Wood’s scandal caused negative publicity to consumers and endorsers; they began to cut ties with Tiger Woods.
These advertisements that appear in the media have a really significant influence over people 's lives; we all look to those advertisements for a sense of direction or guidance on how to perceive the world. Advertising in the media potentially plays a major role in shaping public attitudes and perceptions because most audiences (including myself) are passive; we accept whatever we are shown and that influences our opinions on what we
Jozui in her passage argues that celebrity marketing is very misleading on the product they are trying to selling and insults the intelligence of the consumers. Jozui supports her argument by first explaining that not everyone is gonna buy the newest car because a well-known “talk-show host is paid to pretend to drive one”, or because Katy Perry uses Proactiv to clean her face. She continues by providing illustrations of what most commercials look like now a days. The author’s purpose is to inform the consumers that celebrities should stop being the way to sell a product in order to stop the indignity of the audience’s intelligence. The author establishes an objective tone towards the advertising company.
Celebrity endorsement is when a company uses the notoriety of a famous person to sell a product or service. There are many benefits in using a celebrity in an advert. It helps build brand equity. The brand gets linked to the celebrity and therefore can get more recognition, allowing the company to achieve larger sales and profits.
Non-product attributes are functional benefits, experiential benefits, and symbolic benefits (Keller 1993). Excluding advertisement, word of mouth is such a powerful tactic the brand could perform to associate with consumers. With word of mouth, customers will develop brand awareness, brand knowledge, and brand image that lead to customer-based brand equity or CBBE (Keller 2003). Keller (2001) developed pyramid models of consumer-based brand equity building steps as shown in figure 2, and six brand building blocks as displayed in figure 3. Successful brand building is to create resonance that builds relationships between the brand and its customers, which generates brand loyalty, attitudinal attachment, and community engagement as the best
People such as celebrities, have a higher influence on people and their decision making on products, which is why many companies hire well-known celebrities to promote their products in the media. In an article written by Marketing Charts called, “How Influential are Celebrities?” they discuss the power of product placement and celebrity endorsements. The statistics for how much a celebrity influences its fans varies throughout the article, depending on what exactly they endorse. The article had some very interesting key points about celebrities also having a negative impact on product endorsement, mentioning that traditional brand promotion without celebrities had more of a positive influence.
1. Introduction David Jones Limited is an Australia based departmental store. In the time of 1838, a Welsh foreigner David Jones set up this store. By and by, Woolworths Holdings Limited, a South African retail gathering, claims this organization (Eden & Ackermann 2013). This is the most established working departmental store under its unique name on the world.
Subsequently, the celebrities that are symbols for these products become a product in themselves. In some cases, we buy products purely because a celebrity has worn it, endorsed it, or has been associated with it in another type of way. A consumer’s inclination towards materializing a lifestyle of a celebrity leads to the merging of the corporate and the self. This is extremely prevalent with the Kardashian family. The Kardashian family became celebrities through their reality television show Keeping Up with the Kardashians.
The marketing and advertising executives control the innovative aspects of these ads and endorsements to celebrities, so they can help form an image for Nike
Applications: The applications deal with the “Halo effect”. This effect occurs when the public sees celebrities use the products, they are more inclined to buy the product because they want to mimic their role model. A celebrity is a person who is known by his well knownness. McCracken has defined a celebrity endorser as a person who enjoys public recognition and who uses this recognition on behalf of a brand to endorse the brand.
Consumer compare the prices of brands. And purchase the product with best outcome in low price but in many cases, consumer can pay more for better results. The product has design which attract the customer and easy to carry. Fashion leaders purchase the product which is more stylish and can satisfy their ego. The brand promotion has unique impact on brand image.
Celebrity endorsement is used by companies to enjoy media exposure. Brand equity will be improved due to celebrity endorsement (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001). Celebrity endorsement will give companies a competitive advantage over similar brands. However, celebrity endorsement will not be effective if they endorse more than one brand (Solomon,