When Rich And Famous Speaks We Listen

Published Date: 02 Nov 2017

Maheen Mukhtar

Registration Number

325-FSS/BSMC/F11

Presented to

Ms Ayesha Sadaf

Department of Media and Communication Studies

International Islamic University, Islamabad

CHAPTER 1

INTRODUCTION

Willaim H. Bolen (1984, pp.4) defined advertising as any controlled form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor that is used to inform and persuade the selected market.

Oxford Advanced Learner’s Dictionary defines advertisement as a notice, picture or film/movie telling people about a product, job or service that is an example of something that shows its good qualities and making it public. Advertising is a one of the means of communication, adopted for marketing and to encourage or persuade audience to make a decision and to take certain action. Generally, the most wanted result is to compel consumer behavior in accordance to a commercial offering that also means turning the consumer’s mind towards the desired direction. The purpose of advertisement may also be to reassure the employees and shareholders of success and viability.

Monle and Johnson (2005) state that advertising is a paid, impersonal communication about an organization and its products or services that is transmitted to a target audience through mass media such as television, radio, newspapers, magazines, direct mail, outdoor displays, or mass-transit vehicles. For advertising purpose, different strategies are being adopted. Advertisements may use emotional appeal, facts and statistics based, complimenting the consumers, interrogative, patriotic, open ended, ideal situation depiction, celebrity endorsement based advertisement and a lot more.

Consumer is an entity that is the ultimate user of any product or service that is made available to them, within a social system. Consumer behavior is the approach or attitude of the consumer in the observation, selection planning and adoption process of the product or services that satisfy the requisites of the consumer and is available to them.

The basic purpose of advertisements is to persuade people towards their products. There are many influences that affect the buying decision of consumers, like Situational influences, psychological influences and social influences. Social influence includes roles, family, social classes, culture and subcultures, Reference groups and opinion leaders.

Sheth, Mittal and Newman (1999, pp.518-520) defined the customer decisions as the decisions customers make in the market place as buyers, payers and users. These decisions include whether to purchase or not, what to purchase, when to purchase and from whom to purchase. They further explained that decision making process consists of five steps which are problem recognition, information search, alternative evaluation, purchase and post-purchase behavior.

Today advertisers use a vast variety of advertising appeals for making their advertisements unique in the row of their competitive products and services. Celebrity endorsement is one of the advertising appeals which are now-a-days mostly used by the advertisers. Friedman and Friedman (1979, p.63) defined that celebrity endorser is an individual who is known to the public, be it any actor, sports figure, entertainer etc, for his or her achievements in areas other than that of the product class endorsed.

In the study of Perception of Advertising and Celebrity Endorsement (Zahid and Jainthy, 2002) shows that using a famous celebrity as an endorser could help to improve the subjects rating of the commercial. In advertising and branding, celebrities are commonly being used as communication means. It happens due to the strong conceptual image of the celebrities that helps in creating an influence of the brand they endorse. According to the advertisers, celebrity endorsers plant in the minds of consumers that ultimately positively trigger the purchasing decision of the consumer. It helps in the enhanced storage of information in the minds of consumers that is easily available in the purchasing scenarios.

Sherman (1985, pp.66-70) Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g. athletes, actors) in the hope that celebrities may boost effectiveness of their marketing for at least a century. One of the early examples is Queen Victoria’s endorsement of Cadbury’s Cocoa. Regardless of these hindrances, celebrity endorsed advertising is an important marketing tool which when used at the correct time, may prove to be far more rewarding.

(Walker et al. 1992) Results show that a number of celebrity endorsements proved very successful, whereas others completely failed, resulting in the ‘termination’ of the respective celebrity communicator.

Pakistani advertising industry has flourished over a moderate period of time. Mostly newspapers, magazines and digests were being utilized as the available medium by local businesses in the beginning. The race to compete became obsessive as the new businesses started to come forward. In order to survive and gain competitive edge, the new players reshaped the industry to be more professional and creative. Advertising in Pakistan has generally followed the trends and innovations adopted globally. It has responded to the changing business environment, media technologies and cultural and ethical pick-up lines. Dr. Kamran Siddiqui (2011 p.13) Indian production and Indian celebrities are now highlighting the glamorous era. Indian faces become brand ambassadors for Pakistani market, like Katrina Kaif, Shahrukh Khan, Saif Ali Khan, Kareena Kapoor etc. Further explaining the Pakistani ad industry, it can easily be segmented in four categories: (a) pure Pakistani - low budgeted, (b) pure Pakistani - high budgeted, (c) Coproduction between India and Pakistan – high budgeted, (d) pure Indian - very high budgeted.

Falak Sher et al (2012, p.642) During the recent years it is seen that multinational companies prefer the Indian stars in Pakistani advertisements in various products for marketing campaigns. These Indian stars that endorse product have impact on Pakistani people consumption pattern. However these Indian stars power in multinational brand advertisements in Pakistan can be measured by the successful endorsements done by Katrina Kaif (Lux, Veet, and Pantene etc. ads), Prinka Chopra (Sunsilk ad), Shilpa Shiti (Pantene ad), Kareena Kapoor (Head & Shoulder ad), Sulman Khan (Dew Soft Drink ad) and the others.

Rationale of the study:

Celebrities, now-a-days, are like mentors to the masses. Trends of following them in all most every field have become really common. The environment of advertising has become competitive and the competition is increasing on regular basis. These two are now collaborating and has successfully become a tool of advertising. The purpose of the study is to explore the effectiveness of Indian celebrity endorsement in Pakistani television advertisements as compared to the non-endorsed advertisements and its impact on the purchase decision of consumers.

Statement of Problem:

The aim of the study is to find out the effectiveness of Pakistani television advertisements endorsed by Indian celebrities as compared to the non-endorsed advertisements and its impact on the purchase decision of the consumers. This study shows that how the Indian celebrity endorsement changes the behavior of consumers in term of purchasing behavior of the advertised product and services.

Objectives:

To determine the effectiveness of Indian celebrity endorsed TV advertisements on gaining consumer’s attention.

To study the impact of Indian celebrity endorsed TV advertisements on consumer’s cognition process.

To find out the influence of Indian celebrity endorsed TV advertisements on the retention process of consumers.

To explore whether Indian celebrity endorsed TV advertisements persuade consumers towards buying process as compared to the non-endorsed advertisements.

Research Questions:

RQ1:Does Indian celebrity endorsed television advertisements are more effective in gaining attention of consumers?

RQ2:Does Indian celebrity endorsed television advertisements have more impact on consumer’s cognition process?

RQ3:Does Indian celebrity endorsed television advertisements have more influence on retention of consumers?

RQ4:Does Indian celebrity endorsed television advertisements persuade consumers, more effectively, towards buying process as compared to the non-endorsed advertisements?

Hypotheses:

H1: Indian celebrity endorsed television advertisements are more effective in gaining attention of consumers.

H2: Indian celebrity endorsed television advertisements have more impact on consumer’s cognition process.

H3: Indian celebrity endorsed television advertisements have more influence on retention of consumers.

H4: Indian celebrity endorsed television advertisements persuade consumers towards buying behavior more than the non-endorsed advertisements.

Significance:

This study has significance at societal level because it will be helpful to understand how Indian celebrity endorsed advertisements on TV affect the behavior of consumers in terms of making purchase decision about the advertised products and services. It is also a contribution in the field of advertising and marketing. Moreover, this technique of advertising is recent so its impact on people is yet to be analyzed.

CHAPTER 2

LITERATURE REVIEW

Theoretical framework:

The impact of Indian celebrity endorsed television advertisements on the purchasing behavior of consumers is a very complex phenomenon. Some of the most important aspects of the endorsed advertisements which have impact on the consumer’s decisions are explored in detail.

Theory of Persuasion is an appropriate theory in order to investigate the affects of Indian celebrity endorsed television advertisements of Pakistan on consumer’s purchase behavior.

Theory of persuasion:

Keefe(2002, p 6) quoted Beisecker and Parson who defined persuasion theory as "persuasion inherently has attitude change as its goal". It means the basic rationale of persuasion is to modify the approach of intended publics. Keefe also explained that persuasion and attitude change has a link with each other and they are very closely related. For example, when the goal of advertising message is to change the behavior of the target audience then the advertiser should use the strategy through which he/she will persuade the people and in return the attitudes of the people will change.

Attitudes are "orientation of minds" (Keefe, 2002, p 6) which means that by using the advertising message advertisers can change the mental conception of anything which they have held previously. For these attitude change, advertisers use persuasion theory.

Borge (2007, p 4) quoted Aristotle who gave another definition of persuasion as "the art of getting people to do something they wouldn’t ordinarily if you didn’t ask". Basically Aristotle defined persuasion as an art. According to him persuasion is the way through which the advertisers attain their goals. He explained persuasion theory as the customers move forward your advertisement from point 1(starting point). In the start of the advertisement they are not interested in the advertisement so the advertiser should make such convincing or interesting point which persuades the customers towards the advertising product. This is called as persuasion.

Shaughnessy & Shaughnessy(2004, pp126) explained the Elaboration Likelihood Model of Persuasion (ELM) which is given by Petty & Cacioppo. This model deals with how attitudes are developed and changed with the aid of persuasion. There are two routes to persuasion.

Central Route: In central route people use their cognition on the information of the advertised message. Such people pay their attention towards the content of the message. The attitudes formed are long lasting in central route. For example, in the advertisement of HBL, people pay their attention towards the detail of the services than the advertising appeal, music, slogan used by the advertiser.

Peripheral Route: Peripheral route deals with the different characteristics of the advertising message like music, humor, slogans. People who use peripheral route attracted by the above characteristics of the message. For example people who are attracted by the humorous appeal and slogan of the u-fone advertisement use peripheral route of persuasion.

Elaboration Likelihood Model modified by Hansen in 1997 as an Elaboration Likelihood Advertising Model (ELAM) (Hansen & Christensen, 2007, p 60). According to ELAM model, central route of persuasion deals with the information related with the product. Such information created awareness about the brand so people received the information and make perception about the advertised product. In turn attitudes of people will change and they will eventually buy the product. Peripheral route deals with the appearance of the advertising message like the jingle, humor, music used in the advertising message. These things make the attitudes of the people about the advertisement instead of about the brand of the advertised product. People who use peripheral route like the advertisement because of the appearance of the ad.

Edin, (2012), suggests that the concept of persuasion reaches around a wide range of

subjects, contrary to the view of Perloff, (2010, p 129) who opined that persuasion is basically anything that involves shaping or moulding attitudes. Therefore, persuasion is concerned with the understanding and subsequently changes of attitudes by influencing other people’s minds (Perloff, 2010).

Conceptual framework:

Endorsers:

McCracken (1989, p.310) provides a clear definition describing celebrity endorser as "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement. He further explained celebrity endorsement as a "ubiquitous feature of modern marketing."

(Friedman and Friedman, 1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed.

Consumers:

Black and Hirschman(1980-82) defined consumers as "consumers are the most likely to seek advice from influential individuals in their social network if the decision has to be made in circumstances of uncertainty".

Advertisement:

Moriarty et al(2012) defined advertisement as messages that organizations use, particularly in broadcast or print media, in order to inform, persuade and remind current and potential consumers of their offering or of the organization itself.

Purchasing decision:

(Pride and Ferrell, 2003) The buying behavior is the decision processes and acts of people involved in buying and using products. And the consumer buying decision is the buying behavior of people who purchase products for personal or household use and not for business purpose.

(Arens & Bovée, 2005) Making a purchase decision involves sequence of behaviors. The first task in promoting any new product is to create awareness – perception – that the product exists. The second is to provide enough information – learning –about the product for the prospective customer to make an informed decision. Finally, the marketer wants to be persuasive enough to stimulate the customer's desire –motivation – to satisfy his or her needs or wants by purchasing and repurchasing the product. These three personal processes of consumer behavior – perception, learning, and motivation – are extremely important to advertisers.

Operational definitions:

The operational definitions of the variables of the study are:

Endorser:

It can be defined for the study as the person who promotes a product or service. An endorsement is also known as a testimonial but the word is more commonly associated with celebrities. A celebrity endorsement is almost always a paid endorsement of the company or a certain product.

Consumer:

Consumer, for the research, can be defined as ultimate user of a product or service. The consumer is not always the purchaser of a product. In the case of cat food, for example, the cat is technically the consumer because it is the ultimate user, although of course the advertising is aimed at the cat owner.

Advertisement:

Advertisement can be defined as, as per the research, a notice or announcement in a public medium promoting a product, service or publicizing about an event. A tool through which, people can be made aware of the products and services being available to them.

Purchase decision:

It can be defined as sequence of preferences that a consumer makes before finally purchasing a product once the consumer has created readiness about buying. The consumer must then decide where to make the purchase, what brand, model, or size to purchase, when to make the purchase, how much to spend, and what method of payment will be used. The marketer attempts to influence each of these decisions by supplying information that may shape the consumer's evaluation process.

Previous studies:

Stephen K. Koernig and Thomas C. Boyd (2009) study the roles of product-endorser "fit" with celebrity and non-celebrity endorsers by comparing the effects of a famous athlete and an unknown model on a range of consumer responses. The results of the first experiment suggest that a well-known sportsperson is more effective when endorsing a sport brand than a non-sport brand.

In the second experiment, an anonymous model is identified as either a famous athlete or not and is paired with either a sport-related brand or a non-sport brand. Results indicate that an anonymous model identified as an athlete is more effective as an endorser where there is a match between the endorser and the product.

Sami al Smadi (2006) found in his study -about consumer attitudes towards the role of celebrity endorsement in television advertising in Jordan- that Jordanian consumers were generally positive about many aspects of this dynamic issue in advertising strategy. They also showed an interest in the relationship between celebrities and endorsed products in advertising. They seemed to believe in the importance of the match-up between the two. Yet, the majority did not seem to view this kind of advertising convincing enough, in principle, to affect their brand choice behavior.

Paul J. Costanzo Janelle E. Goodnight (2005) found in their study that the use of celebrities did not significantly result in higher brand recall. It may be of interest to note that in addition to poor recall of celebrities and corresponding brands endorsed, subjects connected the celebrity to competitors’ brands.

Christina Schlecht (2003) found in her study that celebrity endorsement advertising strategies can under the right circumstances indeed justify the high costs associated with this form of advertising.

Hee-Jung Kim et al (2005) illustrate differences between the two cultures in the implementation of celebrity advertising. Celebrities in U.S. advertising often portrayed themselves (i.e., they served as spokespersons), whereas the majority of Korean celebrities acted in roles. As spokespersons, celebrities are no doubt being used for their unique attributes that are compatible with the products.

Dr. Kamran Siddiqui (2011 p.13) Indian production and Indian celebrities are now highlighting the glamorous era. Indian faces become brand ambassadors for Pakistani market, like Katrina Kaif, Shahrukh Khan, Saif Ali Khan, Kareena Kapoor etc. Further explaining the Pakistani ad industry, it can easily be segmented in four categories: (a) pure Pakistani - low budgeted, (b) pure Pakistani - high budgeted, (c) Coproduction between India and Pakistan – high budgeted, (d) pure Indian - very high budgeted.

Syed Ali Hassan et al (2012, p.642) During the recent years it is seen that multinational companies prefer the Indian stars in Pakistani advertisements in various products for marketing campaigns. These Indian stars that endorse product have impact on Pakistani people consumption pattern. However these Indian stars power in multinational brand advertisements in Pakistan can be measured by the successful endorsements done by Katrina Kaif (Lux, Veet, and Pantene etc. ads), Prinka Chopra (Sunsilk ad), Shilpa Shiti (Pantene ad), Kareena Kapoor (Head & Shoulder ad), Sulman Khan (Dew Soft Drink ad) and the others.

CHAPTER 3

METHODOLOGY

Population:

Population refers to the group/class of the subjects that a researcher wishes to investigate.

In the current study the population comprising of advertisement consumers and buyers of the products and goods will be selected from the federal capital of Pakistan, Islamabad.

Sampling technique:

Sampling is the subset of the population, taken to be representative of the entire population.

The purposive sampling will be used in the study. The rational of using purposive sampling is to collect data from a specific and intentional group, which is consuming the advertisements in which Indian celebrities are endorsing and are the decision makers for buying products and goods.

Instrumentation:

The instrument for this study will be questionnaire that will be filled through purposive sampling. Hypotheses will be verified through the questions. There will be questions about the demographic information for example age gender and education. Questions will be closed ended and will be measured on likert scale.

Data collection:

A data from 100 respondents will be collected and analyzed using SPSS.

Biblography:

Bolen, William H(1984) Advertising @nd addition, canada John Wiley & Sons.

Sheth, jagdish N; Mitta, Banwari & Newman, Bruce I. (1991), Customer Behaviour: Consumer Behavior and Beyond, orland: The Drydan Press.

Friedman.H and Friedman.L (1979), "Endorser Effectiveness by Product Type", Journal of Advertising Research, Vol. 19(5) pp.63-71.

Sherman.P (1985), "When You Wish Upon a Star," Fortune, (August19), pp.66-71.

Syed Ali Hassan, Falak Sher, M. Shoaib, M.Z. Bilal, Ashraf Iqbal(2012), "Mass Media and cosumer Purchasing Behavior", Vol. 2, No. 2 pp.641-650.

Zabid M., Abdul R., Jainthy N. and Samsinar M. S. (2002). Perceptions of Advertising and Celebrity Endorsement in Malaysia. Asia Pacific Management Review, 7(4): 535-554.

Shaughnessy, John O & Shaughnessy, Nicolas Jackson O(2004), persuation in advertising, New York: Routledge.

Borge, James(2007), Persuasion, 2nd Edition, India: Kindersley(India) Pvt. Ltd.

Perloff, Richard M.;(2010), The dynamics of Persuasion Communication and Attitudes in the 21st century 4th Edition, New York: Taylor & Francis.

Stephen K. Koernig and Thomas C. Boyd, to catch a tiger or let him go: the match-up effect and athlete endorsers for sport and non-sport brands. Sport Marketing quarterly; 2009, vol. 18 issue, p15-37, 13p.

Al-smadi Sami / Journal of Accounting – Business & Management vol. 13 (2006) 69-84.

Paul J. Costanzo, Janelle E. Goodnight, Journal of Promotion Management, Vol. 11(4) 2005.

Schlecht, Christina (2003), celebrities’ impact on branding, Center on Global Brand Leadership: Columbia Business School, January 15, PP. 1-13.

Hee-Jung Kim Choi, Wei-Na Lee, and Sejung Marina. Jourval of advertising, vol, 34, no, 2 (Summer 2005), pp, 85-98, American Academy of Advertising.

McCracken, Grant (1989), "Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process," Journal of Consumer Research, 16 (3), 310-321.

Pride, WM & Ferrell, OC 2003, Marketing Concepts and Strategies, Houghton Mifflin Company, Boston.

Arens, W.; Bovée, C. (2005), Contemporary Advertising, Mc-GrawHill Irwin, ISBN 0072964723, Burr Ridge

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