0809 Garcia c

7/28/2019 0809 Garcia c

1/115

MASTER THESIS, 2009

BEYOND THEEFFECTIVENESS OFCELEBRITY ENDORSEMENT2009Supervisor: Dr. Patrick Cotting

Author

Cristel Garcia04-984-704

[email protected][email protected]

Master inCorporateCommunication

Faculty ofCommunicationSciences

7/28/2019 0809 Garcia c

2/115

UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009

2

I. AKNOWLEDGEMENTS

This Masters thesis is the accomplishment of my university journey. The theme of the thesis aroseduring this journey, while knowledge was sent from everywhere inside the universitys walls.Writing this thesis made me gain knowledge on a subject for me very interesting and important intodays society with consumer power.

First of all, I would like to thank my supervisor Patrick Cotting for all support and expertise, and whohas given me valuable guidance.

In addition, I would like to express my gratitude to the managers who gave me a little of their precioustime and who have been helpful in answering my questions with their remarkable knowledge: RobertoCosta, Head of Advertising & Internet at Swatch; Valrie Bastardoz, Head of Communication at BCV; and

Sandra Helfenstein, Deputy Head Administrative Unit Communication at SFU.

I would like to say a special thanks to my parents and sister, Ins, who always gave me support duringthis period of my life.

Finally, I would like to thank all the persons who gave me encouragement and helped me throughoutthis period of study: Davide, Sophie, Anne, Adrien, and of course Massimo.

I have a last thought for all my colleagues, who have also accomplished their final work and who haveshared with me their doubts, despair, happiness, and finally pride of having ended the work. Good luckto everyone.

7/28/2019 0809 Garcia c

3/115


3

II. EXECUTIVE SUMMARY

This Masters thesis is a research about one popular marketing strategy: celebrityendorsement. Indeed, even though celebrity endorsement represents some risks, it is

a largely used method to reach competitive advantage by companies. Today,

companies spend millions each year for the endorsement of their products/services

by celebrities. It is always a great challenge for marketers to determine the meaning

consumers associate with the brand in order to select the right celebrity and to build

the right celebrity endorsement concept. Therefore, it was of a great interest to

investigate this topic further in details.

The initial idea of this thesis has been activated by the lack of information about

celebrity endorsement overall strategy. In fact, there are many factors influencing the

effectiveness of a celebrity endorsement strategy which are not taken into

consideration well enough.

This thesis analyzes existing literature and contains suggestions about the

development of such a strategy taking into consideration all the elements susceptible

to have an influence on its effectiveness.

The approach of this study is first qualitative with the examination of existing theories

and methods about celebrity endorsement. After a literature review research on the

celebrity endorsement concept, findings have shown that there was too much focus on

the celebritys attributes selection and not enough focus on the other elements, such

as the company (product/brand), media environment, and customer behavior. Many

factors are an integral part of the strategy as well as the celebritys attributes.

Then, the aim of the second part is to consider the gaps in the existing theory and to

create a model able to bring together each factor needed to reach the effectiveness of

celebrity endorsement strategy. The core of the thesis is represented by a suggested

model of the overall celebrity endorsement strategy which should lead to the

7/28/2019 0809 Garcia c

4/115


4

maximization of effectiveness. This model was thought as a solution for companies

willing to reach a successful campaign. The model involves all dimensions and success

factors needed to develop an effective strategy. It was designed with a strong focus on

filling the lack of elements to build an effective celebrity endorsement strategy. These

elements were called the success factors of the strategy. The model was designed on

the basis of an existing sponsorship model, which was an excellent base due to its

marketing roots.

In order to check the feasibility of the suggested model, companies have been

interviewed about their own celebrity endorsement strategy and about the model.The result of these interviews was positive and showed that companies must consider

all success factors to reach a success campaign. Sometimes, some factors are

underestimated or forgotten, which enhance the importance of using a model as a

step-by-step toolkit.

Moreover, while analyzing the model, another use of the model appeared. Indeed, the

model can also be used as a measurement tool, which is essential for a company afterdoing such a campaign. To monitor celebrity endorsement success a set of measures is

proposed.

The aim of the thesis was to try to meet companies expectations and needs with a

model proposal which will solve some issues within the whole celebrity endorsement

management.

7/28/2019 0809 Garcia c

5/115


5

III.TABLE OF CONTENTS

I. AKNOWLEDGEMENTS .................................................................................................................... 2

II. EXECUTIVE SUMMARY ................................................................................................................... 3

III. TABLE OF CONTENTS...................................................................................................................... 5

IV. THEORETICAL PART ........................................................................................................................ 7

1. INTRODUCTION ............................................................................................................................. 8

1.1 Problem Discussion .............................................................................................................. 81.2 Purpose and Research Questions ................................................................................... 9RESEARCH QUESTIONS ................................................................................................................................................................9HYPOTHESIS ...................................................................................................................................................................................10

1.3 Delimitations ....................................................................................................................... 10

2. DEFINING CELEBRITY ENDORSEMENT LITERATURE REVIEW ......... ........... ...... 102.1. Definition ............................................................................................................................... 102.2. Origins .................................................................................................................................... 12

THE SPORTS INDUSTRY ............................................................................................................................................................13THE BEAUTY INDUSTRY ...........................................................................................................................................................14

THE MERGER OF BRANDS AND CELEBRITIES ..............................................................................................................16THE WATCHTOWER ...................................................................................................................................................................19THE FAN POWER ..........................................................................................................................................................................20THE VISIBILIY OF CELEBRITIES ...........................................................................................................................................20THE CELEBRITY INDUSTRY ....................................................................................................................................................21

2.4 Existing Theories and Models ....................................................................................... 23PROS AND CONS OF CELEBRITY ENDORSEMENT STRATEGY ..............................................................................23(1)SOURCE CREDIBILITY MODEL ........................................................................................................................................26(2)SOURCE ATTRACTIVENESS MODEL .............................................................................................................................27(3)THE PRODUCT MATCH-UP HYPOTHESIS ..................................................................................................................28(4)THE MEANING TRANSFER MODEL ...............................................................................................................................30

2.5 Celebrity Selection ............................................................................................................. 31COMMON CELEBRITIES ATTRIBUTES ..............................................................................................................................31THE FRED PRINCIPLE ................................................................................................................................................................364Fs .......................................................................................................................................................................................................37SOURCE ATTRIBUTES AND RECEIVER PROCESSING MODES................................................................................38Q-RATINGS .......................................................................................................................................................................................39SPORTS INDUSTRY ......................................................................................................................................................................41

2.6 Overview of models and theories ................................................................................ 43

VI. PRACTICAL PART ....................................................................................................................... 46

7/28/2019 0809 Garcia c

6/115


6

3. MODEL PROPOSAL ..................................................................................................................... 473.1 The Management Circle for C.E. Strategy.................................................................. 47

OVERALL STRATEGIES ..............................................................................................................................................................48DEFINITION OF BRAND PERSONALITY ............................................................................................................................49DEFINITION OF C.E. STRATEGY ............................................................................................................................................51IMPLEMENTING & CONTROLLING C.E. STRATEGY.....................................................................................................52

3.2 The Drivers of C.E. Strategies ........................................................................................ 53THE COMPANY AS A PRINCIPAL DRIVER OF C.E. STRATEGIES ............................................................................53THE BRAND .....................................................................................................................................................................................54THE CELEBRITY PERSPECTIVE .............................................................................................................................................54THE PARTNERS PERSPECTIVE.............................................................................................................................................55THE MEDIA PERSPECTIVE.......................................................................................................................................................55THE PUBLIC PERSPECTIVE .....................................................................................................................................................55

3.3 The C.E. Effectiveness Model ......................................................................................... 56

4. QUESTIONNAIRE: Celebrity Endorsement Strategy CHECK ..................................... 62

5. COMPANIES INTERVIEWS ..................................................................................................... 645.1 SWATCH ................................................................................................................................ 64

SWATCH HISTORY .......................................................................................................................................................................64PROMOTIONAL ACTIVITIES AT SWATCH ........................................................................................................................64INTERVIEW WITH ROBERTO COSTA, HEAD OF ADVERTISING & INTERNET (23.07.09) .......................65

OBSERVATIONS ................................................................................................................................................................................675.2 BCV Banque Cantonale Vaudoise ............................................................................. 67

BCV HISTORY ..................................................................................................................................................................................67CELEBRITY ENDORSEMENT ACTIVITIES AT BCV .......................................................................................................68BCVS CELEBRITIES .....................................................................................................................................................................68INTERVIEW WITH VALRIE BASTARDOZ, HEAD OF COMMUNICATION (05.08.09) .................................69OBSERVATIONS .............................................................................................................................................................................75

5.3 SWISS FARMERS UNION (SFU) ................................................................................... 75HISTORY............................................................................................................................................................................................ 75CELEBRITY ENDORSEMENT ACTIVITIES AT SFU ........................................................................................................76SFUS CELEBRITIES .....................................................................................................................................................................76THE ACTIVITIES OF THE CAMPAIGN .................................................................................................................................78INTERVIEW WITH SANDRA HELFENSTEIN, DEPUTY HEAD ADMINISTRATIVE UNIT

COMMUNICATION ...........................................................................................................................................................................

78

OBSERVATIONS .............................................................................................................................................................................80

6. MODEL ADJUSTMENT AND SUGGESTIONS ...................................................................... 81

7. GENERAL CONCLUSIONS......................................................................................................... 84

VII. APPENDICES ................................................................................................................................. 87

BIBLIOGRAPHY .......................................................................................................................................112

7/28/2019 0809 Garcia c

7/115


7

IV.THEORETICAL PART

7/28/2019 0809 Garcia c

8/115


8

1. INTRODUCTION

Jennifer Anniston, Tiger Wood, Roger Federer, Beyonc: these names have becomesymbols of the role of endorsers in advertising.

Companies invest millions of dollars to sign up with celebrities to endorse their

products. This is not a new phenomenon; it goes back to more than a century.

However, todays use of celebrities in advertising strategies is becoming more and

more sophisticated and complex. Because of its cost, usually celebrity endorsement

strategy is used by big firms. Nonetheless, smaller companies with limited budgets are

starting now to use celebrities to promote their products.

However, companies should not select a celebrity before knowing if there is a need for

a celebrity endorsement. Indeed, many brands get by quite well without using

personalities.

In this paper, many factors used for the selection of celebrity endorsers have been

identified through academic literature review, such as celebrity attractiveness,

credibility, product-celebrity match, message and product type, target characteristics,

and general meanings of celebrities.

1.1 Problem Discussion

From a marketing communication point of view, it is essential that companies plan

differential strategies to create competitive advantage. The use of celebrity

endorsement is a widely used strategy to achieve this competitive advantage. This

type of marketing strategy has become popular but it involves certain risks. Hence, to

avoid the risk of a failure, companies should prepare in detail this kind of strategy.

That means, they must think of each dimension, factor, and driver involved in the

process of celebrity endorsement. This leads to the aim of this thesis where through

an exploratory research a deeper understanding of an effective usage of celebrity

endorsement will emerge, as well as the development of suggestive ideas.

In the literature review, findings are varied and incoherent regarding the way of

choosing the right celebrity endorser. According to Byrne (Byrne, Whitehead, & Breen,

7/28/2019 0809 Garcia c

9/115


9

2003), choosing the right celebrity is the problem companies are facing. Companies

need help in determining a model which will give them the way to reach effectiveness

of celebrity endorser. A further research is needed to help them selecting celebrity

endorsers taking into account every dimensions, factors, and drivers. Indeed, most of

the authors analyzed the celebritys attributes to be a good endorser, but is it enough

to build a good strategy? The product is sometimes forgotten and too much focus is on

the celebrity, while the focus should be on the product. The product and the celebrity

need to match together, but there is either an environment around them and also an

audience. There are too many components that must be taken in consideration during

a celebrity endorsement process.

1.2Purpose and Research Questions

Many of the previous research on celebrity endorsement have explored celebrities

attributes, and celebrity endorsers influence on consumer behavior. What is really

missing in these studies is a global strategy of celebrity endorsement that would give

an entire overview of the process to companies willing to go on with celebrities as

spokespersons for their brand, product/service. The lack of research in this area gave

me the motivation for the present thesis. The purpose of this study is stated as

follows:

To gain a deeper understanding of the overall celebrity endorsement strategy in order to

develop an effective step-by-step model for companies willing to adapt this kind of

strategy.

RESEARCH QUESTIONS

I. What is the complete list of factors involved in the celebrity endorsementprocess which leads to an effective strategy?

II. Who are the drivers involved in the celebrity endorsement process whoinfluence the strategy?

7/28/2019 0809 Garcia c

10/115


10

HYPOTHESIS

I. Celebrity attributes are not the only success factors to reach the effectiveness ofcelebrity endorsement.

II. Each factor must fit together in order to achieve the effectiveness.III. Each factor and driver should be controlled as much as possible to an effective

strategy.

1.3 Delimitations

This research involves many aspects of celebrity endorsement. Therefore, there will

be restrictions because of time, and resources. Further, the model proposal will not be

tested by a company, but only assessed by few companies since the time for this study

is limited.

2. DEFINING CELEBRITY ENDORSEMENT LITERATURE REVIEW

In this section, relevant theories and models to the research questions will bepresented.

2.1. Definition

[The most effective way to use a celebrity is that you want people to relate to the

product through that celebrity.] (Levine, 2003)

The last 100 years, endorsement strategies provided many memorable moments. A lot

of people remember Michael Jordan endorsing the Nike shoe, as well as Tiger Woods

with the Nike golf equipment. Then, Michael Jackson endorsed Pepsi singing and

dancing, and Claudia Schiffer with her blond hair endorsed Elvive for LOral. Today,

Nespresso had a huge success with the What else? sentence said by Georges

Clooney. So, what is all about endorsement strategy?

7/28/2019 0809 Garcia c

11/115


11

A company using endorsement is promoting the companys product by the means of

the personal recommendations of a celebrity, a person who is sufficiently well known

to influence the potential consumers of that product or brand. In other words, a

celebrity is in a way sponsoring the companys product, and he/she is paid for doing

so (Bagehot, 1998). The concept is simple. A celebrity is chosen to express approval of

a product or service. Then an agreement between the celebrity and the company,

which represents the product being endorsed, is signed (Pemberton, 1997). The

importance of this strategy is not only the increase revenue of the company, but in

how the celebrities add value to a company, brand or product (Amos, Holmes, &

Strutton, 2008).It is important to differentiate endorsement and licensing. Indeed, endorsement is

very similar to licensing except that the name of the endorser is used to promote a

product or brand, while the endorsers name in licensing is on the product (Lipsey,

2006). Endorsement means the stamp of approval of a celebrity to a product, service

or brand (Pemberton, 1997). When David Beckham1 accepted to endorse Giorgio

Armani underwear, he accepted to give his stamp of approval for the product and

brand. It is estimated that he received 25-28 millions dollars for a three year contract(Carlo, 2008). He will be Giorgio Armanis face for a while. So, the stamp of

approval should be a real one to transmit credibility and create message

persuasiveness.

Today, celebrities cannot pursue themselves endorsement deals and contracts

because of the visibility industrys growing. Indeed, celebrities need the help of

experts to take care of their image. There are different ways of using celebrities to

endorse products. There is the tools-of-the-trade endorsements when celebrities

endorse products used in the course of their work, for example Anna Kournikova who

endorsed Adidas. Then, there are the non-tool endorsements when celebrities

endorse products that are not related with their work, for example Anna Kournikova

who endorsed Omega watches (Rein I. , Kotler, Hamlin, & Stoller, 2006).

1 Appendix 2

7/28/2019 0809 Garcia c

12/115


12

According to these definitions, celebrity endorsement is a well-liked strategy used by

companies in order to add more value to their brand/product by associating them to a

celebrity. This association will give to consumers a way of choosing a product by

relating it to someone they know.

2.2. Origins

The first celebrity who endorsed a product was a famous English actress, Lillie

Langtry, with the Pears Soap in 1893 (Exhibit 1). She was also the first one that

affected negatively the desired brand image of a company because of her reputationfor being promiscuous (Louie, Kulik, & Jacobson, 2001).

From Lillies endorsement till today, the use of celebrity spokespeople has been on the

rise. In 1975, a study reported that 15% of prime time television commercials

featured celebrities and by 1978 the number was reported to be over 20% (Kamins,

Brand, Hoeke, & Moe, 1989). Today, during a Super Bowl you will watch 32%

advertising with celebrities (Carlo, 2008). The celebrities business is always

increasing.

Exhibit 1

Lillie Langtry endorsing Pears Soap

www.lillielangtry.com

7/28/2019 0809 Garcia c

13/115


13

THE SPORTS INDUSTRYAs everyone can observe, the sporting goods industry often uses the celebrity

endorsement strategies. Indeed, athletes are used to market a wide range of products,services and brands. Especially, shoe companies are well-known for those kinds of

strategies. In 1997, Sports Services of America did a survey which results show that

sports celebrities endorsers have increased the value of products by more than 25%

over the products of competitors that do not use endorsement strategies (Pemberton,

1997). Many outside reasons have influenced the athletes potential of doing

endorsement during the last 30 years. One reason is the medias desire to write about

an athletes personal behavior, like the actors and singers. Today, athletes, actors and

singers life is scrutinized from every angle. Therefore, it is much difficult to choose an

endorser. In the past, athletes bad habits were not known and it made no distort to

the companies they were working with.

Many well-known athletes made the history of celebrity endorsement. Babe Ruth,

member team of the New York Yankees, was the first celebrity in sports who did a

media endorsement. The deal was made in 1919 and the sportsman was paid five

dollars to describe each homerun he hit in a written exclusive to United Press

International (Schaaf, 2004).

From 1936 to 1957, the business of sports evolved in an impressive way. Indeed,

during these 20 years, the financial and social architecture of the sports industry

changed a lot. The mass media evolved too embracing the sports industry, which did

the same in return. Then in the late 1940s, television increased the move of

sponsorship and with it celebrity endorsement. Today, with the immense evolution of

technologies, the sports industry truly profits from the multiple print, radio, TV, and

internet newspeople that cover all the sports events in multiple languages and for

multiple outlets. Consumers have many sources of receiving content: newsprint, radio,

TV, computer, cellphone, and pager. All these technological improvements made life

easier for companies who want to market their products. Celebrity endorsement

strategies can be sent through all these means. Other names that made the history of

7/28/2019 0809 Garcia c

14/115


14

celebrity endorsement are Michael Jordan, Tiger Wood, Joe Louis2, and Wayne

Gretzky. They were more than just sportsmen. They were mega-stars and

businessmen. Through the years, convergence of innovation and consumer marketing

has built a multibillion-dollar sports industry that will continue to expand all over the

world year after year (Schaaf, 2004). The sportsmen understood how the sports

industry is working and they are all becoming sports-businessmen, such as David

Beckham3. They also understood that it is more than a simple endorsement. Celebrity

endorsement strategies also measure an athletes popularity away from the action.

THE BEAUTY INDUSTRY

The beauty industry begins in the mid-nineteenth century where we can trace

advertising aimed at women. The development of this industry came from the

marketing of beauty products. However, this industry truly grew in the 1920s and

1930s. Then, after the Second World War, the beauty industry evolved and became

the beauty industry we all know today (Black, 2004).

The interest of women for beauty products was related to their new sense of identity

as consumers. The magazines played an important role in inducing women into the

world of brand-name products and smart shopping (Black, 2004).The Pears Soap, as previously said, was the first product endorsed by a celebrity who

was a famous actress. Many others followed, such as Marilyn Monroe4 with two

famous endorsements for Westmore Hollywood Cosmetics. Stars are used by many

people as role models, even more in the area of personal appearance (Pringle, 2004).

A new standard of beauty appeared in Hollywood in the 1930s. Indeed, the stars

industry created a kind of gold standard of beauty around the Hollywood stars.

Cinema able to diffused a standardization of taste. In 1950s, Hollywood creates more

than a standardization of beauty; it produced a golden age of glamour where

Hollywood stars were seen as deities with an unapproachable beauty (Cashmore,

2006).

Today, almost every hair care or cosmetics company has a celebrity face to

represent its products. Hair products and cosmetics usage by women is still growing.

2 Appendix 13 Appendix 24 Appendix 3

7/28/2019 0809 Garcia c

15/115


15

The role of celebrities in the beauty industry is fundamental. Celebrities create trends

that had always been followed. It is already 200 years that celebrities are endorsing

hair care products. Recently, Jennifer Aniston, actress, was rated as one of the most

powerful stars for the hair care industry (Pringle, 2004).

Nowadays, the beauty industry knows that celebrities sell cosmetics. Many examples

can prove that in this industry the best seller are the celebrities. There are many

famous celebrities in this industry. Some examples: Catherine Zeta-Jones with

Elizabeth Arden; Beyonc Knowles with LOral; Madonna with Max Factor; Kate Moss

with Rimmel; Pierce Brosnan with LOral.

The advertising of the beauty industry has long time being criticized because it isaccused to create idealized stereotypes that in some way forces women to follow.

However, this industry will not change for some time. Celebrities will keep on being

the models of many women, and men for beauty concerns.

2.3 Celebrity CultureError! Reference source not found.

[A celebrity is a person whose name has attention-getting, interest-drawing, and profit-

generating value.] (Rein, Kotler, & Stoller, 1997)

Celebrity culture is all around us and sometimes even invades us by shaping our lives,

conduct, style and manner. It affects many fans, but also entire populations with the

shift from plain consumer to aspirational consumer. Celebrities made a real change in

the media and in the consumer society.

Celebrities emerged from the sports and entertainment industries. They get attention

of people by being visible in the media. Usually, celebrities are first noticed through

their professional lives, but then people get attracted by their private lives as well.

During the 1980s and 1990s, celebrity culture was a real part of the social life. This

celebrity culture was supported by the global media that promoted celebrities usually

from entertainment and sports industries (Cashmore, 2006). According to Len

7/28/2019 0809 Garcia c

16/115


16

Sherman (1992), once a time, people admired heroes such as statesmen, scientists,

explorers and military figures because of their heroic accomplishments. These heroes

today have been exchanged by many celebrities that became examples for the society

even without accomplishing heroic actions. They are simply figures who embodied

publics convictions and hopes and therefore they are being admired as heroes of the

society to be respected. Sherman means that today an athlete who wins a football

game seems to have conquered the Everest. The attraction of the public is not

necessary related to the celebritys talent, since there is no required relationship to

his/her celebrity status. Much of the time, a celebrity does not have talent but only

presence.

[We have forsaken our traditional heroes and replaced them with actors and

athleteswhere once admired people who do great things, now we admire people who

play people who do great things.] (Sherman, 1992)

Literature review shows that celebrity has different meanings. A first consideration is

that celebrity is a cultural change towards a culture that privileges the visual and

sensational. A second one is that a celebrity is someone that has an innate quality thatis discovered by industries of sports or entertainment. A third consideration is the fact

that a celebrity evolved through the process of commodification and became a

product that makes promotion, publicity and advertising (Turner, 2004). Indeed, as

soon as someone grows up in the scales of public visibility he/she can start to sell. By

being a product, celebrities can be bought and sold in a marketplace. Celebrities

became a kind of raw material that need to be refined, developed, and packed before

being marketable. The commodification process which makes people tradeable and

ready for the consumption is a key process in the celebrity culture (Cashmore, 2006).

THE MERGER OF BRANDS AND CELEBRITIESButterfield developed a model (Exhibit 2) that shows how celebrities work well for

the brands promotion. One fundamental thing about working with celebrities for the

brands promotion is that since they are famous, they will be more likely invited in

by customers (Pringle, 2004). This is one consideration that Butterfield pointed out in

order to better understand the subscription decision process. Butterfields model is

7/28/2019 0809 Garcia c

17/115


17

the result of many works done on countries, issued causes, and charities. He claimed

that there are two key factors for the identification process, awareness and familiarity,

which can somehow stand for the term subscription. However, for the creation of a

real relationship, Butterfield considered that the factor visualization must be

integrated in between.

Explanation of the model: Stars have high (1) public awareness as well as high (2)

visibility which give people a sense of (3) familiarity. If the fit between the celebrity

and the brand is well created, then it will give a meaningful (4) resonance and a

positive (5) disposition. These steps lead to (6) subscription which is the last step to

build a good relationship (Pringle, 2004).

In a world, where transnational companies, such as AOL Time Warner, News

Corporation, Sony, and Disney, build their power by diversifying one media form

across many media platforms, celebrities became the bond to connect all these cross

media processes. Celebrities allow the transfer from one format to another through a

branding mechanism. This mechanism is part of the celebrity routine which is made of

cross-promotions (Turner, 2004). For example, a movie star will promote the new

movie by going in different talk shows and at the same time the movie star will

promote a new hairspray because of the spontaneous interest of the audience related

Exhibit 2The subscription decision process

(Pringle, 2004)

7/28/2019 0809 Garcia c

18/115


18

to the launch of the new movie. Everything is correlated and that is the reason why it

is called a cross-promotion.

[The cast of characters that make up todays generation of celebrities couldnt be more

saleable if they had barcodes]. (Cashmore, 2006)

Celebrities make money and it is a fact. They market everything with their names and

images because they simply attract audiences. Therefore, celebrity endorsements are

used by marketers to brand their products, as well as television programs use

celebrity appearances to build their audiences. They all make a kind of merger

between the product to be promoted and the celebrity who will promote it. As in

every merger, the two partners need to be compatible to make it work. The celebrity

is a commodity, as explained in last section, that will marry another commodity and

as in every relation an understanding of both parts is crucial.

The celebrities are well conscious of their power and therefore they develop their

public personality as a valuable asset that is defined from all the personal and career

choices. They became real commodities and even if they do not like this word, they

work on strategies to increase the value of this commodity to the industry.

There are various ways celebrities can work for a brand. HPI, a leading UK research

company, developed a model (Exhibit 3) where we find all the different modes a

celebrity can be exposed for a brand.

Exhibit 3Five ways a celebrity can work for a brand

(Pringle, 2004)

7/28/2019 0809 Garcia c

19/115


19

According to HPI, these terms can clearly be connected or even overlapped in a

celebrity endorsement strategy (Pringle, 2004):

Testimonial: the celebrity is a spokesperson or a mouthpiece for the brand. Imported: the celebrity plays a role that the audience already knows from

TV or movie appearances.

Observer: the celebrity plays the role of commenting about the brand. Invented: the celebrity performs a part invented only for the brand. Harnessed: the celebrity is tied to the storyline of the brand advertising; the

character of the celebrity can evolve through it.

The UK company stated that with the testimonial and imported mode the strategy isless effective because of the imposed perception, while with observer, harnessed, and

invented mode, the customers perceive more integration between celebrity and

brand.

THE WATCHTOWERNowadays, the public is no more passive. The public is asking more from celebrities,

something different. The public is standing in a watchtower and celebrities must

surrender themselves to life as they are standing in a gold prison (Cashmore, 2006).The fans want to watch and inspect whenever they want. If celebrities do not

surrender, the public might lose interest and go on with other more interesting

celebrities. As soon as the public is no longer interested, he can send it to oblivion and

leave it there. Being active, the consumers can promote a celebrity career or destroy it

by simply discarding him/her as a real commodity. The public knows it and this is its

true power. Today, consumers have more power collectively on celebrities than ever

and they like it because they know that they are not just observers anymore but also

players. Consumers are players and creators of celebrities with their desire for new

celebrities figures. This also explains the new trend in consumer behavior. In the past,

consumers needed to own goods, but often could not afford everything. Now,

consumers want to emulate celebrities lives. Even if it is hard to reach the same level

of life, they try to do as much as they can by reaching the nearest thing.

7/28/2019 0809 Garcia c

20/115


20

THE FAN POWERCashmore described the word fan as a description of followers, devotees, or

admirers of virtually anybody or anything in popular culture (Cashmore, 2006). Hedefined different types of fans. The first category, the low worship fans, involves

people who just read about celebrities. The second category of fans is the

entertainment-social character, which concern the one who follow kindly the

celebrities. The third, regards those who are really interested in knowing the

celebrities lives, called the intense-personal feelings. Finally, there are the extreme

worshippers who are really obsessed by the celebrities (Cashmore, 2006). This close

involvement with celebrities lives is called by Neil Alperstein (Alperstein, 1991) the

artificial involvement. He said, in his study, that this involvement helps people in a

certain way making sense of their reality by integrating celebrities in daily life. In

Benson Fraser and William Browns study with Elvis fans, they explained the fans

attitude with three possibilities (Fraser & Brown, 2002). The first is that ordinary

people develop extraordinary psychological relationships with celebrities, whether

living or dead. The second possibility is the fact that people consider celebrities as role

models to follow. The last one is that fans adopt what they see as a celebritys

attributes, including his or her values and behavior.

[Consumer product companies are always looking for that next certifiable star, because

the impact that individual has in his public sphere of influence. The recognition and

loyalty of his fans means sales in terms of cereal, video games, chewing gum, shoes,

hardware, and just about anything.] (Schaaf, 1995)

The fan has a real power towards the celebrities. Indeed, he/she can change their lives

in a positive and negative way. The fan can highlight the celebrity, but can also press

the delete key of the computer and make celebrities disappear from the stage. It is a

true influence on a life of someone. It is a terrific power. It is the fan power.

THE VISIBILIY OF CELEBRITIESIn 1999, Forbes magazine introduced Celebrity Power 100 with the ranking of the

celebrities based on stars brand franchise, and not based on the fortune. This shows

7/28/2019 0809 Garcia c

21/115


21

how celebrities visibility is important. There are different dimensions in the visibility

hierarchy which are space and time.

Space can be illustrated with a pyramid made of five levels: (1) Invisibles; (2) Local

Visibility; (3) Regional Visibility; (4) National Visibility; (5) International Visibility

(Rein I. , Kotler, Hamlin, & Stoller, 2006).

Time is the enemy of many celebrities. Indeed, there are few celebrities that become a

legend and many that are often one-day or one-year well-known people.

THE CELEBRITY INDUSTRYAccording to Rein et al. (1997), there are many sub-industries that support the

celebrity industry. Coordination between these sub-industries is needed in order to

produce and promote brands. Moreover, the celebrity industry (Exhibit 4) is also

defined to coordinate the services that the sub-industries provide in order to produce

and promote the celebrity. Therefore, it works in both sides, the entertainment and

the communications industry (Rein, Kotler, & Stoller, 1997/2006).

The first industry entertainment industry consists of theatres, music halls, dance

halls, sports arenas, museums, county fairs, sport games and movie studios. This

industry was born mostly in Hollywood. The second industry communicationsindustry is the media channels, through which we know the visible people. Many

images, products and stories about these visible people are sold through the media

channels, such as television, radio, film, cable, magazines, newspapers and internet.

The promotion of these two industries entertainment and communications

industries is made with the third industry which is the publicity industry. It

encompasses publicists, PR firms and advertising agencies which constitutes the

largest form of promoting, and marketing research firms. Then follow the

representation industry composed by agents, personal managers, and promoters,

which handle the celebrities by negotiating engagements for them in exchange of a fee

or commission. Some agents, few of them, do not only sell their clients as they are.

They try to offer a total service to their clients giving them all the support they need

to improve themselves day by day. Unfortunately, there are few agents acting like that.

That is the reason why the appearance and the coaching industries exist to give

personal consultancy. The appearance industry is one of the fastest-growing

7/28/2019 0809 Garcia c

22/115


22

components because of the high degree of importance of the celebrity image. This

industry includes makeup specialists, hairstylists, clothing stylists, color consultants,

image coordinators, dermatologists, nutritionists and plastic surgeons. This is a real

competitive environment that is growing every day. The coaching industry is related

to the professional performance of the celebrities. It helps celebrities improving

different skills, such as dance, music, speech, that aspire to be highly visible. Then, the

legal and business services industry gives different kinds of legal, accounting and

investment advice. Finally, the endorsement and licensing industry is a growing

industry since marketers understood that it is a powerful mean to distinguish a

product or service from the competitors (Rein I. , Kotler, Hamlin, & Stoller, 2006).The celebrity industry earlier than today was not as transparent since the industry did

not want to show all the activities behind the trade. Nowadays, the industry is well-

known and transparent. Closing the eyes to this industry is impossible because it is

anchored to the fabric of our economy and culture.

To make the system work it is necessary to know the existence of all these industries

that have a crucial role in the development of the celebrity industry. There are many

Exhibit 4

Structure of the Celebrity Industry

(Rein, Kotler, & Stoller, 1997)

7/28/2019 0809 Garcia c

23/115


23

key figures too within these industries that must be taken into account agents,

managers, and publicists. Of course, there are many variations depending from market

to market. The economic interdependencies between these figures and the celebrities

form a bind that makes the key to the structure of the celebrity industry.

The power of the celebrity industry is limited due to many conflicts of interests which

create gaps in its understanding of the context. For example, we know that the system

does not work perfectly for the publicity industries interests because of many

scurrilous revelations of many celebrities (Turner, 2004).

2.4Existing Theories and Models

PROS AND CONS OF CELEBRITY ENDORSEMENT STRATEGYDuring the last years, celebrity endorsement became a well-known communication

strategy with the aim to build a congruent image between the brand and the

consumer. This is a real challenge for marketers who have to find the right endorser

who will fit with the brand of the company. The challenge is to determine the meaning

consumers associate with the brand. Therefore, before starting a celebrityendorsement strategy, the company must be sure to have chosen the right

communication strategy in order to reach consumers expectations. Marketers must

examine thoroughly the fit between the celebrity and the product before launching

any campaign. Before taking any decisions, the company should check all the pros and

cons of having a celebrity endorsing its product.

Even if there are significant potential benefits in using a celebrity endorsement

strategy, companies should know that there are also significant costs and risks.

According to Erdogan (1999), there are as many potential advantages in a celebrity

endorsement as potential hazards (Exhibit 5).

7/28/2019 0809 Garcia c

24/115


24

According to Erdogan (1999), the advantages are significant and companies trust that

such a strategy will generate desirable campaign outcomes. Today, consumers easily

can choose what advertise commercials they would like to see by zapping or watching

TV programs without commercials. Therefore it has become more challenging for

companies to get consumers attention and penetrate the clutter of brief andnumerous advertising spots. The competition is hard, so a great strategy is needed to

stand out from the rest. Celebrities help in doing so and improve the communicative

ability by cutting through excess noise in a communication process (Miciak &

Shanklin, 1994).

With celebrity endorsement, an authentic positioning of the brand/product can easily

be done. Moreover, the exclusivity of the celebrity is an essential key, as well as the

gain of credibility amongst consumers and also retailers (Cotting, 2007-2008).

The image polishing can also be done through a celebrity endorsement strategy when

a company is going in the wrong direction. Indeed, when a company image is

suffering, using celebritys image will transfer his/her own image to the band or

product. A good way of introducing a new brand/product is to design it around the

personality of a celebrity. It will give direct appeal and the image of the celebrity will

instantly be pushed over to the product.

Exhibit 5

Pros and Cons of Celebrity Endorsement Strategy

POTENTIAL ADVANTAGES POTENTIAL HAZARDS

Increased attention Overshadow the brand

Image polishing Public controversy

Brand introductionImage change and

overexposure

Brand repositioningImage change and loss of

public recognition

Underpin global campaigns Expensive

(Erdogan, 1999)

7/28/2019 0809 Garcia c

25/115


25

One important advantage of this strategy is the creation of an emotional attachment

with the target group (Cotting, 2007-2008).

Although celebrity endorsement strategy has significant returns, sometimes

celebrities qualities become undesirable and therefore it is always a major challenge

to select and retain the right celebrity avoiding potential pitfalls. To prevent the

potential hazards, Erdogan states that pre-testing and planning carefully the strategy

are crucial for the success of the campaign. This will avoid the overshadowing of the

brand by the celebrity. Indeed, many times a celebrity endorsement strategy focuses

too much on celebrity and forgets to focus on product. By consequence, the product isforgotten by the consumers because the attention is too much paid over the celebrity.

[When a brand either new or established associates itself with an already established

personality, it can enhance its own brand identity or be swallowed up by the larger

identity it has annexed.]. (Levine, 2003)

Another well-known tactic is to buy a death and disgrace insurance for the contract

and to cautiously put provision clauses in the contract so that in any case of injury thecompany will be a minimum insured. It is either essential to mention in the contract

what is the exact role of the celebrity and should be a great idea to put restriction

clause to avoid too many endorsements with other brands. Indeed, the overexposure

is only an advantage for the celebrity but not for the company. The consumer might be

confused with too many brands endorsed by the same celebrity. The selection of the

celebrity is critical and it is fundamental to examine at what life-cycle stage the

celebrity is and how long this stage will last. The image of a celebrity changes during

his/her life but a brand should not be exposed by this change. In fact, if any kind of

image change might happened during the campaign then it can bring a loss of public

recognition. According to Erdogan, celebrity endorsement is also a powerful tool to

enter foreign markets. Indeed, the international visibility of many celebrities can be

used as a tool to enter new markets, using the same campaign for different countries.

7/28/2019 0809 Garcia c

26/115


26

Celebrity endorsers can also be compared with created characters endorsers. Instead

of using celebrity endorsers, many companies choose to create a character who will

endorse its products. This strategy is able to build a character that is congruent a

hundred percent with their brands and target audiences. While there is an absolute

control over this kind of strategy, celebrity endorsement has limited control with the

celebritys persona. Some studies prove that with created characters the link between

the character and the product is more effective. Following this reasoning and

according to the Classical Conditioning Paradigm5, consumers have a stronger

association with created characters than with celebrity endorsers. The reason is that

celebrity endorsers are linked to many other things whereas the created charactersare linked only to the product.

As already mentioned, the choice of a celebrity endorsement is an important task.

Therefore, considerable studies have been conducted in order to create models for

endorsement strategy. There are four significant models created between 1953 and

1989. The initial model was the Source Credibility Model constructed by Carl I.

Hovland and his associates. Then three other models follow it: the SourceAttractiveness Model (McGuire, 1985); the Product Match-Up Hypothesis (Forkan,

1980; Kamins 1989, 1990); and the Meaning Transfer Model (McCracken, 1989).

(1)SOURCE CREDIBILITY MODELThe source credibility model is the first of the celebrity endorsement strategy models.

The model affirms that the effectiveness of the endorsers message depends on his

perceived level of expertise and trustworthiness (Hovland, Irving, Kelley, & Harold,

1953). Trustworthiness and expertise start a process called internalization in which

the promotional message has influence on the consumers beliefs, opinions, attitudes,

and behavior since information comes from a credible source (celebrity) (Erdogan,

Baker, & Tagg, 2001). As a consequence, a celebrity endorser who possesses high level

of trustworthiness and expertise will be more likely to change the consumers attitude

5The Classical Conditioning Paradigm in Marketing Communications Context claims that consumers do associations between anunconditional stimulus (endorser) and a conditional stimulus (product) through repeated exposure (Erdogan, 1999).

7/28/2019 0809 Garcia c

27/115


27

(Ohanian, 1990). Hence, the more credible a source is, the more it will be persuasive.

Even though source credibility is an essential factor in defining a celebrity endorser

because of its direct effect on consumers behavior, it is not the only factor to consider

while choosing a celebrity endorser.

It seems that a sources credibility cannot be measured because of its subjectivity, but

there is a high degree of agreement among individuals called truth-of-consensus

method. This method is used to measure and assess a sources credibility and

attractiveness. The method is based on Gestalt principles which state that individuals

judgments of credibility and attractiveness come from person perception instead of

single characteristics (Erdogan B. Z., 1999). For the source credibility measurement,Ohanian (1990) created a Source Credibility Scale (Exhibit 6) after doing extensive

research and statistical tests. He bounded many characteristics to the credibility

attribute, but McCraken (1989) argued that to measure celebrity endorsement

effectiveness many other attributes should be taken into account because

attractiveness and expertise were not enough.

(2)SOURCE ATTRACTIVENESS MODELThe model affirms that the effectiveness of the endorsers message depends on

his/her similarity, familiarity, and liking (McGuire, 1968). Therefore, this means that

Exhibit 6Source Credibility Scale

ATTRACTIVENESS TRUSTWORTHINESS EXPERTISE

Attractive-

Unattractive

Trustworthy-

Untrustworthy

Expert-Not Expert

Classy-Not Classy Dependable-

Undependable

Knowledgeable-

Unknowledgeable

Elegant-Plain Reliable-Unreliable Qualified-

Unqualified

Sexy-Not sexy Sincere-Insincere Skilled-Unskilled

Beautiful-Ugly Honest-Dishonest Experienced-

Inexperienced

(Ohanian, 1990)

7/28/2019 0809 Garcia c

28/115


28

the endorser should have a resemblance with the receiver of the message (similarity),

as well as physical appearance and behavior that affect the receiver (likeability).

Moreover, the endorser should be well-known by the receiver through different

exposure (familiarity). The attractiveness of the endorser is usually determined by the

process called identification. This process works in the application to advertising

because consumers accept information given by an attractive endorser and as a result

they want to emulate him/her by having in this case a purchase intention (Kelman,

1961). Indeed, attractiveness can be observed in most advertisements which expose

attractive people. People are used to these kinds of attractive people that are being

stereotyped. Usually, the source attractiveness model works better when people havechanging beliefs (Baker & Churchill, 1977). Confusion can be done when talking about

attractiveness, since many times it means only physical attractiveness in the

advertisements. However, attractiveness signifies either other characteristics that the

receiver might perceive in a celebrity endorser, such as intellectual skills, personality,

etc.

Many studies have shown that there are no doubts that celebrities attractiveness

boosts attitudes towards advertising and brands. Nonetheless, some studies show thatthere are no purchase intentions with this kind of strategy, while other studies show

exactly the opposite. There is ambiguity about the results and the fact that celebrities

attractiveness alone can initiate behavioral intent (Erdogan, 1999). Indeed, Baker and

Churchill studies (1977) showed in an experiment for a coffee campaign that an

unattractive model leaded to behavioral intent of purchasing, while an attractive

model did not create such intentions towards male subjects. Patzer (1985) claimed

that physical attractiveness is an informational cue; involves effects that are subtle,

pervasive, and inescapable: produces a definite pattern of verifiable differences; and

transcends culture in its effects.

(3)THE PRODUCT MATCH-UP HYPOTHESISThe product match-up hypothesis sustains that harmony of the match between the

celebrity endorser and the product being endorsed is a key determinant for the

effectiveness of the strategy (Amos, Holmes, & Strutton, 2008). Forkan (1980) and

Kamins (1990) state that the messages sent by the source (endorser) and the message

7/28/2019 0809 Garcia c

29/115


29

of the product should be congruent to reach an effective advertising. Advertising with

high congruity between the celebrity image and the product message has more

credibility than advertising with low congruence. Indeed, the advertising effectiveness

will be measured by the degree perceived of the fit between brand and celebrity

image. Friedman and Friedman also confirmed the hypothesis that the celebrity and

product fit lead to a higher effectiveness of the strategy. In reality, consumers are also

expected to find a certain level of congruence between the endorsers image and the

product he/she endorses. So, from both sides, practitioners, and consumers, there is a

high expectation in the match between celebrities and brands. From the consumer

point of view, if match is missing, the consumer will only think that the celebrity hasbeen bought to endorse the product and that he/she does not believe in what he/she

is saying. From the practitioners point of view, if the product does not match the

celebritys image, then the vampire effect might occur. It means that consumers

remember the celebrity, but not the product (Evans, 1988). According to Evans

(1988), celebrities suck the life-blood of the product dry when there is no existence

of a product/celebrity fit. Kamins (1990) also suggested a specificity of the match-up

hypothesis about attractiveness. In fact, he proposed that celebrity endorsementstrategy is more effective when attractive celebrities endorse products that enhance

ones attractiveness. This is the reason why many personal care products are

endorsed by attractive celebrities.

However, according to Till and Busler (2000), the effectiveness can be measured in

terms of brand attitude, but not in terms of purchase intention. The match-up

hypothesis has some limitations because of the inability of identifying and measuring

which dimensions are applicable for a particular product. The match-up hypothesis

has to be extended to the match of the entire image of the celebrity with the entire

image of the brand and target audience (Erdogan B. Z., 1999).

[Its got to be a good match. You cant just pull a celebrity out of the air. The most

important thing is matching the celebritys image and the way the public relates to

them. You have to tap into that to be effective]. Noreen S. Jenney, President of Celebrity

Endorsement Network, (Levine, 2003)

7/28/2019 0809 Garcia c

30/115


30

(4)THE MEANING TRANSFER MODELMcCraken (1989) stated that the effectiveness of celebrity endorsement strategy

relies on the meaning that the celebrity conveys through the endorsement process.Celebrities can transfer different meanings to the products and there are undeniably a

huge number of meanings contained in a celebrity, such as status, gender, age,

lifestyle, and personality (Erdogan B. Z., 1999). Therefore, it represents for marketers

a large choice at their disposal for their strategies.

This model gives a conventional path for the movement of cultural meaning in

consumer societies (Erdogan, Baker, & Tagg, 2001). The process (Exhibit 7)

constitutes three stages: the formation of celebrity image, the transfer of meaning

from celebrity to product, the transfer of meaning from product to consumers

(McCraken, 1989).

In the first stage, McCraken (1989) contended that meanings come from a culturally

constituted world, a physical and social world composed by many categories and

principles of the current culture. In this process, there are many actors that play an

important role. Advertising is a way of joining together consumer needs and the

representation of the culturally constituted world. As a result, the role of advertising

is to communicate the culturally constructed meaning of products to consumers.

The second stage is the movement from celebrity to product. It is the moment where

the product gains a personality during the transfer of celebritys meanings. This work

is done by advertising agencies which choose the proper celebrity to represent the

product with the proper meanings. After the meanings are transferred to the product,

they should also be transferred to consumers (stage 3). According to McCraken, this

last transfer is to be done by the effort of the consumers who are willing to take

possession of the meanings. This movement will be achieved through cultural rituals.

7/28/2019 0809 Garcia c

31/115


31

Finally, this model suggests that companies should investigate the real meanings ofcelebrities that are desirable for their product or brand. In fact, the effectiveness of the

endorser will depend in part on the different meanings he/she conveys through the

endorsement process.

In his findings, Cotting (2002) had improved McCrakens model by integrating during

the stage 2 a new element. He claimed that the product has also an influence on the

celebritys image. Therefore, he added at stage two a two-way arrow between

celebrity and product.

2.5CELEBRITY SELECTION

This section includes models and theories which use success attributes for the

celebrity selection.

COMMON CELEBRITIES ATTRIBUTES

A celebrity endorser strategy is not without a certain level of risk. That is, selecting aninappropriate endorser can reduce sales revenues and tarnish a brands. Because of

the importance of selecting an effective celebrity endorser, the marketing literature is

replete with articles that evaluate which celebrity attributes correlate the highest with

a successful endorsement (Amos, Holmes, & Strutton, 2008).

Exhibit 7Meaning Movement and the Endorsement Process

(McCraken, 1989)

7/28/2019 0809 Garcia c

32/115


32

Trustworthiness

Most of the literature sustains that trustworthiness is one of the essential attributes

for a celebrity to be credible. The credibility of the message is one of the most

important criteria when choosing a celebrity endorser (Knott & James, 2003). Indeed,

the credibility of the source plays a considerable role in celebrity endorsement since it

influences beliefs, opinions, attitudes, and behavior through the internalization

process. That explains why trustworthiness appears to have a significant impact on

the effectiveness of the celebrity endorsement (Chao, Whurer, & Werani, 2005).

Trustworthiness represents honesty, integrity, and believability that an endorser

communicates with a target audience (Erdogan, Baker, & Tagg, 2001). Therefore,trustworthiness is the degree of confidence that a communicator transmits to his

audience (Amos, Holmes, & Strutton, 2008). If the degree of confidence is high, then

the audience attitude changes effectively. Moreover, a degree of confidence is even

more important if the audience has a negative position toward the offering. In

summary, an effective celebrity endorsement strategy requires a high level of

trustworthiness so that the transmitted message is credible.

Expertise

Expertise is another factor that lends credibility to the endorser source. Erdogan

(1999:298) defines celebrity endorser expertise as the extent to which the

communicator is perceived to be a source of valid assertions. Thus, the expertise of

an endorser stems from peoples perception of the knowledge, experience, or skills

s/he possesses. Perceptions of this knowledge, experience, or skills influence how the

audience judges the offerings quality. Therefore, individual perceptions of an

endorsers expertise are positively correlated with their purchase intentions and a

communicator perceived to be a source of valid statements can positively impact

attitude change (Ohanian, 1990:42).

Celebrity Power

Power is a relevant dimension in the process of persuasion. Power gives an endorser

the ability to bring another person to respond to the request or position the source is

7/28/2019 0809 Garcia c

33/115


33

advocating (Byrne, Whitehead, & Breen, 2003). Hence, the endorser should have

relevant power to administer rewards or punishments. This means that persuasion

occurs when the consumer comes to accept the endorsers position in order to receive

rewards or avoid punishments (Kelman, 1961). As a result, it signifies that the

receiver perceives the endorser is a source of power. It is prudent to note that

superficiality is one disadvantage of persuasion through the process of compliance. In

fact, persuasion lasts only as long as the receiver believes that the endorser retains the

power of dispensing rewards or punishments (Junokaite, Alijosiene, & Gudonaviciene,

2007).

The principal persuasive power of a celebrity comes from their being popular, famous,recognizable, admired, trendy and fashionable. These attributes are prime reasons

why a person achieves celebrity status, and why s/he has the power to influence

others. Celebrity power can be so strong that in some cases the selection of an

endorser is made almost solely upon the individuals level of popularity.

Match of Image and Values

The harmony of the match of the product/service offering and the celebrity endorseris explained by the match-up hypothesis (Till & Busler, 2000). This hypothesis posits

that the message of the celebrity endorser image and the offering message must be

congruent in order to be effective (Kamins M. A., 1990). A match exists when the

degree of perceived fit between brand (brand name, attributes) and celebrity image

is high (Erdogan B. Z., 1999). Interestingly, the perceived match between the

celebritys image and values and those of the advertised brand bolsters perceptions of

the celebritys credibility (Friedman & Friedman, 1979). This means that advertisers

must evaluate the characteristics of the target market, the celebritys personality

characteristics, and the characteristics of the product in order to attain the highest

perceived degree of match.

This congruence is essential to ensure that the consumer remembers the product

instead of only the celebrity. In fact, research confirms that if there is no relationship

between the celebrity and the product, consumers will remember celebrities rather

7/28/2019 0809 Garcia c

34/115


34

than products. This effect is called the vampire effect because the celebrity has

sucked the life-blood of the product dry (Evans, 1988).

Physical Attractiveness

A body of research spanning three decades provides strong support for the contention

that an individuals assessment of someone else is highly influenced by their physical

attractiveness (Solomon, 1998). Canary and Cody (1994, pp. 72) state that: we like

attractive people, we attribute positive qualities to them and find it rewarding when

they appear to like us. Moreover, they explain that: we are more likely to comply

with requests from likable, good-looking people than from people who are unlikableand unattractive (pp. 301). It is for these reasons that previous celebrity endorser

studies report that an endorsers physical attractiveness is a significant catalyst of

endorser effectiveness (Chao et al., 2005, DeSarbo and Harshman 1985, Ohanian

1990). A meta-analysis performed by Amos et al. (2008) also echoed this same

sentiment.

Genuine SupportGenuine support is a relevant criterion of endorser effectiveness because it increases

the audiences credibility perceptions (Magnini, Honeycutt, & Cross, 2007), who

perceive authenticity in the celebrity endorser. This authenticity is related to the

support of the celebrity for the product s/he endorses. Not only is this support

important in front of the camera, but also in his/her lifestyle (Magnini, Honeycutt, &

Cross, 2007). A way to increase genuine support is to involve the celebrity in the

creation of the products design and features (Boone & Kurtz, 2005). Such celebrity

involvement will motivate him/her to become a frequent user of the product, which

increases the perceived authenticity of the endorser.

Exclusivity

The exclusivity of a celebrity endorser is a criterion that enhances overall believability

(Schiffman & Kanuk, 2004). When a celebrity endorses multiple products, the

effectiveness of their endorsements is diluted (Marconi, 1996). In other words, the

7/28/2019 0809 Garcia c

35/115


35

exposure of a celebrity endorsing different products or brands makes an

advertisement less credible. Moreover, people can become overexposed to a

celebritys image, and for that reason will pay less attention.

Exclusivity can also serve to protect a sponsoring company. That is, if a celebrity

makes an unsuccessful brand endorsement, that failure can be transmitted to other

brands that the celebrity is endorsing. Asking exclusivity to the celebrity in the

contract, therefore, can serve as insurance against negative associations.

Reference Groups

Reference group appeals have been used for decades by marketers to persuadeconsumers to purchase goods (Peter & Olson, 2002). By definition, reference groups

are persons, groups or institutions that a person uses as a point of reference. In this

case, the reference point is a celebrity with values, behaviors, and lifestyles (Holbrook

& al., 2008). These values are a guide to help consumers choose their own values and

behaviors. The celebrity, with his/her values and behaviors, can guide the consumer

to purchase a product. In terms of celebrity endorsement strategy, the influence of

reference groups can be divided into two categories: relate and emulate.

Reference group: relate

This reference group is usually referred to as membership reference group, which

means that people turn into formal members, with a clearly specified structure of a

membership reference group. Membership reference group is a utilitarian reference

group that influences consumers with rewards and punishments. People are expected

to behave in a certain way and are rewarded for, or are punished when they do not

behave the way they are expected (Peter & Olson, 2002). The use of a celebrity can be

a strategy with the creation of a reference group influence by showing how a celebrity

is close to the consumer. The reference groups are usually social archetype groups,

which are groups of people that share a similar lifestyle. Consumers want to emulate

the celebritys consumption choice in order to assume part of the groups identity.

Most of the time consumers outside the group are fascinated by celebrities (Holbrook

& al., 2008).

7/28/2019 0809 Garcia c

36/115


36

Reference group: emulate

This reference group is usually termed aspirational, which means that people aspire

to emulate the reference group. An aspirational reference group is value-expressive in

the sense that it has an effect on peoples self-concepts (Peter & Olson, 2002).

Aspirational reference groups usually include cultural heroes, such as sports

celebrities, and film and music stars that consumers are willing to emulate. Children

can be particularly impressionable by celebrities they wish to emulate (Holbrook & al.,

2008).

THE FRED PRINCIPLE

The FRED principle (Exhibit 8) is an acronym which stands for Familiarity, Relevance,

Esteem, and Differentiation. This model is the result of a vast study based on 30000

interviews around the world to understand why advertising efforts succeed and fail.

This model was developed by Amy Dyson and Douglas Turco (Illinois State

University).

As already introduced in the source attractiveness model, Familiarity is an important

attribute for a celebrity since it means that the celebrity is well-known and perceived

by the consumer as a person who is friendly, likeable and trustworthy. This is about

the celebritys recognition. Marketers must choose a celebrity who is recognized by

the target audience. The second component of the FRED principle is the Relevance,

Exhibit 8The FRED Principle

Amy Dyson & Douglas Turco

7/28/2019 0809 Garcia c

37/115


37

which is by the meaning a synonym of the match of image and values. Indeed,

relevance is the connection between the celebrity, the product and the audience. The

third component is Esteem, esteem from the consumer to the celebrity. Consumers

must have respect and believe the celebrity to be influenced by him/her in order to

purchase the endorsed product. Finally, Differentiation is a key component to reach

competitive advantage. It is the ability of sending the right message in outstanding

way. If there is no differentiation with the competitors, then the strategy is not

worthwhile.

These four components are the success factors of the FRED principle. These guidelines

are a good way of beginning to select one celebrity. However, there is no guarantee ofsuccess because each companys objectives are different and individual evaluation

should be done.

4FsHamish Pringle suggests another model (Exhibit 9) for selecting the best famous

people to do a brand promotion. He presents guiding principles that should be

maximized and optimized in order to do the right selection. These principles are the

four Fs: Fit, Fame, Facets, and Finance.

Exhibit 9Four Fs in using a celebrity

(Pringle, 2004)

Hamish Pringle recommends marketers to ask themselves the following questions

(Pringle, 2004):

How well does this particular celebrity Fit in with the brand? How Famous is the star?

7/28/2019 0809 Garcia c

38/115


38

Which Facets of this high-profile person can best work for the brand profile? How much of this can the brand Finance?

The relationship between the star and the brand should be the more intimate so that

the campaign is the more effective possible in the marketplace.

SOURCE ATTRIBUTES AND RECEIVER PROCESSING MODESAnother approach on how the celebrity selection is done has been developed by Belch

& Belch (2001) with the Source Attributes and Receiver Processing Modes (Exhibit

10). This approach corresponds to the identification of the influence on consumersattitude on behavior through different processes.

Belch & Belch (2001) contend that for the success of the brand-celebrity collaboration,

credibility is an essential element. Credibility is defined as the consumers perceived

expertise and trustworthiness. Credibility has therefore a great influence on the

consumers acceptance. As already mentioned, internalization process is the process

through which a promotional message has influence on the consumers beliefs,

opinions, attitudes, and behavior since information comes from a credible source

(celebrity) (Erdogan, Baker, & Tagg, 2001). When consumers internalize an attitude

Exhibit 10Source Attributes and Receiver Processing Modes

(Belch & Belch, 2001)

7/28/2019 0809 Garcia c

39/115


39

or opinion, it will be integrated in his/her belief system (Kelman, 1961). The

credibility attribute is crucial when consumers have a negative position toward the

endorsed product. The target audience has to believe in the celebrity who is endorsing

a product.

The authors state that celebrity attractiveness has a positive impact on consumers.

Attractiveness is considered in this case as physical appearance, intellectual

capabilities, athletic competence and lifestyle. It includes in the definition: similarity

and likeability (McGuire, 1968). Consumers will more easily remember the brand if it

is endorsed by an attractive celebrity. Persuasion is done through a process of

identification. The result of this process is the consumers acceptance of informationfrom attractive endorsers because of consumers need of identification with such

endorsers (Kelman, 1961).

The third process through which persuasion occurs is called compliance. When

celebrity has power (Kelman, 1961), he/she is able to administer rewards and

punishments to consumers. Therefore, when a consumer accepts his/her influence he

will hope to obtain a favorable reaction or avoid punishment. However, in the case of

advertising, Belch & Belch (2001) claim that an endorser cannot apply any kind ofsanctions. The power in advertising can be used with an authoritative personality as

endorser. But, generally speaking, power is more effective as an attribute for a face-to-

face communication.

Q-RATINGSQ-rating is an approach that considers essentially familiarity and likeability of the

celebrity (Knott & James, 2003). The aim of this approach is to help establishing the

value of celebrities. It has been created in USA for over 40 years by a research

company in New York called Marketing Evaluations, Inc. The results of the data

collected establish the consumers perceptions and feelings into a likeability

measurement (Pringle, 2004). The Q-rating is defined as the percentage of those

familiar with a personality who rate that personality as one of my favorites (on the

questionnaire) (Knott & James, 2003). This survey is done twice a year so that the

rating is updated as much as possible. The survey is compiled by 1800 participants

from all ages. The data then can be sold to many entities such as television, public

7/28/2019 0809 Garcia c

40/115


40

relations professionals, advertisers, and agents. The criticism of this approach is the

fact that it is based on a simple ratio of likeability and familiarity. Indeed, it can bring

to misunderstanding and wrong interpretation (Knott & James, 2003). There are also

other lists that try to set the monetary value of the celebrities (movies stars). There is

even the Celebdaq6 with an online index where people can buy and sell shares in

stars like in a real stock exchange (Pringle, 2004) (Exhibit 11). The Forbes Magazine

makes either celebrities rankings but in terms of their earnings over the past twelve

months7.

Exhibit 11Pop Shares

http://www.bbc.co.uk/celebdaq/lists/POPprofile.shtml

All these rankings are snapshots that can change very quickly. Therefore, it is risky to

choose your celebrity endorser only relying on these rankings because it might be

only a flavor of the month. It would not be a wise decision. That is the reason why

many practitioners use their personal judgment most of the time when they choose

celebrities for advertising campaigns (Miciak & Shanklin, 1994).

According to Agraval & Kamakura (1995), who evaluated the economical impact of

C.E. contracts, they observed through 110 C.E. contracts that the investment in a

personality has value in the eyes of the analysts. Consequently, the value of the stocks

rises the day of the C.E. contract announcement. This explains why the right selection

of a celebrity as a spokesperson is crucial. The literature review is replete of different

6http://www.bbc.co.uk/celebdaq7http://www.forbes.com/2009/06/03/forbes-100-celebrity-09-jolie-oprah-madonna_land.html

7/28/2019 0809 Garcia c

41/115


41

strategies for

0809 Garcia c

Documents

Transcript of 0809 Garcia c