Literture Review

Introduction
The study ims to reserch bout one populr mrketing strtegy: celebrity

endorsement. Indeed, even though celebrity endorsement represents some risks, it is lrgely used method to rech competitive dvntge by compnies. Tody, compnies spend millions ech yer for the endorsement of their products/services by celebrities. It is lwys a gret chllenge for mrketers to determine the mening consumers ssocite with the brnd in order to select the right celebrity nd to build the right celebrity endorsement concept. This study ims to investigate Consumer buying behvior on celebrity endorsement nd brnd building in women clothes industry The objective of this project is to investigte whether celebrity endorsement, ct s source of effective brnd mngement, hve impct over the purchsing behvior of customers, evalute ssocited fctors tht contribute to the success or filure of the endorsement.

The objectives of the research are:

1. To do study nd nlysis s to why nd when brnds use celebrities s endorses nd wht kind of risks re involved 2. To identify the influence of celebrity endorsement on consumer buying behvior. 3. To study celebrity endorsement s source of brnd-building.
The survey will be conducted in Greece nd primary dt will be collected from consumers using structured questionnires nd lso compnies will be interviewed bout their celebrity endorsement strtegy. The reson why I chose to adopt this approach is to be able to examine from two different ngles. One would be that of consumers and the other that of companies. By pproching the problem from these two angles it will give me a more complete view of the overall problem.

Literature Review
According to Hart (1998) literature review is n essentil prt of the research for the reason that assists the researchers to be fmilirized with the topic of the research. Wht is more, it is referring to ll the vilble sources which re connected to the topic of the reserch. Additionlly, the critical position of the researcher is fundmentl when he or she conducts the literture review (Wllimn, 2009). The im of this section is to provide ll the theoreticl frmework of this study s discussed by previous researchers and also present relevant theories and models to the research question. In order to start the literature review a brief review of celebrity endorsement as a marketing communication strategy is given. First associated theories with celebrity endorsement will be provided following by the effectiveness of celebrity versus non-celebrity endorsement. What comes next is the pros and cons associated with this strategy and finally a brief explanation of the four most important models.

Definition of Celebrity/ Celebrity Endorsement

A celebrity is a person whose name has attention-getting, interest-drawing and profit-generating vlue (Rein, Kotler, &Stoller, 1997). The term celebrity refers to an individual who is known to the public (actor, athlete, entertainer, etc.) for his or her chievements (Friedman and Friedman, 1979). Levine (2003) argues that the most effective wy to use a celebrity is tht you wnt people to relte to the product through that celebrity. From mrketing communictions perspective, it is vital that firms design strategies that help to underpin competitive differential advantage for the firms products or services. Celebrity Endorsement is one popular marketing strategy used by companies in order to reach competitive advantage. The crescendo of celebrity endorsing brands has been steadily increasing over the past years. Marketers acknowledge the power of celebrities in influencing consumer-purchasing decisions and signing deals with celebrities hoping that they can help them stand out

from the clutter and give them unique and relevant position in the mind of consumer. By associating celebrities with the product/brand companies hope that consumers will select a product by relating it to someone they know. In other words, a celebrity is in a way sponsoring the companys product and he/she is paid for doing so (Bagehot, 1998). Based on Amos et al. the significance of this strategy is not only the boost of compnys revenue but lso how the celebrities add value to a company, brand or product. Another think which is fundmentl to tke into consideration is that endorsement is very similar to licensing except that the nme of the endorser is used to promote a product or brnd, while the endorsers nme in licensing is on the product. There re different wys of using celebrities to endorse products. There is the tools-of-trde endorsements when celebrities endorse products used in the course of their work and there re the non-tool endorsements when celebrities endorse products that are not related with their work (Rein, Kotler, Hamlin and Stoller, 2006).

Pros and Cons of Celebrity Endorsement Strategy

Academic reserchers have conducted sufficient reserch to express the benefits of celebrity endorsement. According to Erdogan (1990) there are as many potential advantages in a celebrity endorsement as potentil hazrds. Before starting a celebrity endorsement strtegy, the company must be sure to hve chosen the right communiction strategy in order to reach consumers expectations and also all the pros and cons of hving a celebrity endorsing its product should be checked. The following table summrises the pros and cons of celebrity endorsement strtegy according to Erdogan (1999).

The increased consumer power over programmed advertisement has made advertising more challenging. The competition is hard, so a great strategy is needed to stnd out from the rest. It has become more chllenging for companies to get consumers attention and penetrate the clutter of brief and numerous dvertising spots. Celebrities have the potential of helping the advertisements stand out from the surrounding clutter, guiding towrds a improved communictive bility by cutting through excess noise in communiction process

( Sherman 1985). Using celebrity endorsement s mrketing communication strategy n uthentic positioning of the brnd/product cn easily be done. A good way of introducing new brnd/product is to design it around the personality of a celebrity that will give stright ppel and the imge of the celebrity will be pushed over the product. All these lead to the conclusion that celebrity endorsements is likely to have positive effect on product choice behviour. Despite the previous potentil benefits, there re still many potentil hazards in using celebrities s prt of a marcoms campaign. Levine (2003) argues that when brnd ssocites itself

with an already established personality, it can enhance its own brand identity. Another problem is the overshdowing the brand which means that consumers may only give ttention to the celebrity and fail to realise the brnd (Belch & Belch, 2001) and remembers the celebrity but not the message given by the advertising so

celebrity may became at the first place more than the brnd and product. Erdogan (1999) states that in order to avoid overshadowing of the brand by the celebrity the pre-testing and the crefully planning of the strategy re fundmentl for the success of the campaign. The other problem about celebrity endorsement is overexposure. This problem takes place when a celebrity endorses too many companies and products (Belch & Belch, 2001). The consumer might be confused with too many brands endorsed by the same celebrity. According to Erdogan, celebrity endorsement is also a powerful tool to enter foreign markets. Certainly, the international visibility of many celebrities can be used as a tool to enter new markets, using the sme cmpign for different countries.

Models

The choice of a celebrity endorsement is an essential task. For that reason considerable studies have been conducted, models and concepts were constructed by researchers to draw the connection between celebrities, the brnd they endorsed nd the perception of the people relted to those two. Between the year 1953 and 1989 significant models hve been creted. In 1953 the Source Credibility Model by Carl I. Hovland nd his ssocites was the initial of the celebrity endorsement strtegy models. Three additional models followed this model: the Source Attractiveness Model (McGuire, 1985); the Product Match-Up Hypothesis (Forkan, 1980; Kamins 1989, 1990) and the Meaning transfer Model (McCracken, 1989).

1) The Source Credibility Model

According to Hovland et al. (1953) the Source Credibility Model confirms that the effectiveness of the endorsers message depends on his/her perceived level of trustworthiness and expertise. Based on Ohanian (1990) point of view the expression source credibility is used to describe the communicators possible attributes which affects the recipients cceptnce of a messge. In our cse the communictor is the celebrity and the recipient is the consumer. The more credible a source is, the more it will be persuasive. Information from a credible source such as a celebrity has the power to influence on the consumers beliefs, opinions, attitudes and behaviour. This process is called internalisation and has its basis on trustworthiness and expertise (Erdogan, 1999). Trustworthiness is defined as the degree of

confidence in the communicators intent to communicte the ssertions he considers most valid and consists of honesty, integrity and believability (Hovland et al., 1953). The dvertisers by selecting endorsers, who re widely regarded as honest, believable and dependble, cn cpitlise on the value of trustworthiness (Erdogan, 1999). Ohanian (1990) states that the message will be more effective and the receiver more integrted, when the celebrity is perceived to be more trustworthy.

Even though source credibility is vitl fctor in the celebrity selection process, as credibility has been proved to have direct nd significnt effect on ttitude and behviourl intentions, it should not be the only criteria that should be tken into considertion while selecting celebrity endorsers (Erdogan, 1999).

The min issue is tht sources credibility seems that cannot be measured of its subjectivity. For the source credibility mesurement, Ohanian (1990) created a Source Credibility Scale after doing extensive research. He bounded many characteristics to the credibility ttribute, but McCracken (1989) rgued that to measure celebrity endorsement effectiveness many other attributes should be taken into account because ttrctiveness and expertise were not enough.

2) The Source Attractiveness Model

McGuire (1968) states that the source ttrctiveness model affirms the effectiveness of the endorsers message depends on his/her similrity, fmilirity, and liking. Similarity refers to the resemblnce between the receiver and the source of the message whereas familiarity refers to the acquaintance of the source through exposure. While talking about similrity, it is mentioned tht consumers re more likely to be influenced by a message coming from someone they feel a sense of similarity with. (Belch & Belch, 2001). Likebility on the other hand is the fondness for the source which may be s result of behaviour, physical ppearnce or other personal characteristic and also these celebrities need to be at least well known and dmired in the public eye (Belch & Belch, 2001). Attrctiveness includes any number of attributes such as intellectual skill, personality properties, lifestyle or athletic prowess that consumers might perceive in a celebrity endorser, and thus does not simple refer to physicl ttrctiveness (Erdogan, 1999). Indeed, attractiveness can be observed in the most advertisements which expose attractive people. Research exposes that consumers hve a tendency to form positive stereotypes about attractive individuals and also tht s compred to their unttrctive counterprts, physically attractive communicators celebrities are more successful at changing

beliefs (Baker and Churchill, 1977) and generating purchase intentions (Friedman et al. 1976; Kahle and Homer, 1985). Many studies have shown that celebrities ttrctiveness boosts ttitudes towards advertising and brnds. It is indicated by Ohanian (1991) that more than physical attractiveness, the expertise of the endorser is more important in affecting attitude towards the endorsed brand.

3) The Product Match-Up Hypothesis

The product match-up hypothesis prolongs 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 endorser and the message of the product should go well together to reach an effective advertising. Friedman and Friedman (1979) 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. 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 lack of ability of identifying and measuring which dimensions are appropriate 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).

4) The Meaning Transfer Model

According to McCraken (1989), the previous models discussed above are not capable of capture the success factors of the endorsement process, hence he proposed the meaning transfer model as a rich and all-inclusive portrayal of the same, the central premise of which is that celebrities encodes unique sets of meanings which might be transferable to the endorsed product, provided the celebrity is used well. Celebrities can transfer different meanings to the products and as Erdogan (1999) highlights there is a huge number of menings contined in a celebrity, such as a status, gender, lifestyle nd personality. The process described by the meaning transfer model by McGranken (1989) constitutes three stages: the formation of celebrity image, the transfer of meaning from celebrity to product, the transfer of meaning from product to consumers. In the first stage the meanings associated with the famous person moves from the endorser to the product or the brand, and this meaning is drawn by the celebrity from its public persona. In the second stage, the creation of product personality takes place s the meaning is trnsferred from the endorser to the consumer. This is based on the symbolic properties conveyed by the endorser. Finally in the last stage which is known as the consumption process, the brand mening is attained by the consumer. The consumers who identify themselves with these symbolic properties the meanings are trnsferred to them thereby rendering the process of trnsfer of the mening from the celebrity to the consumer complete. The third stge of the model overtly proves the importnce of the consumers role in the process of endorsing brnds with fmous people (McCraken, 1989). Finally, this model suggests that companies should investigate the real meanings of celebrities tht are desirable for the product or brand.

THE MERGER OF BRANDS AND CELEBRITIES

Butterfield developed a model that shows how celebrities work well for the brands promotion. One fundmentl 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). Explntion of the model: Stars have high (1) public awareness as well as high (2)visibility which give people sense of (3) familiarity. If the fit between the celebrity and the brnd is well creted, then it will give a meaningful (4) resonance nd positive (5) disposition. These steps lead to (6) subscription which is the lst step to build good relationship (Pringle, 2004). 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 crosspromotions (Turner, 2004). Everything is correlated and that is the reason why it is called a cross-promotion.

Consumers perspective
The heterogeneity in consumers responses to emotional appeals in advertising is well documented in the behaviourl literture(Moore, Harris & Chen, 1995). McCraken (1989) described a consumer as a self that constantly detracts into their lives the symbolic properties from consumer products in order to construct aspects of themselves and the world. The results of the study conducted by OMahony and Meenaghan (1998) designte tht a consumer holds by nd lrge positive attitude towards celebrity endorsements. Research confirms that the celebrity endorsement can have an impact on the consumers recll evalutions, ttention and purchase intentions. It is often seen tht the understanding of the bond between the endorsed product and the product itself is difficult for the consumer to judge and thus this is critical to understnd while discussing celerity endorsement.(Hsu & Donald, 2002).Using the internationaliztion process, Friedmn & Friedmn (1979) posited that consumers were more likely to purchase expensive and/or complex products which were endorsed by expert celebrities rather than typicl customers. The celebrities are often looked upon by the young as their role model. It is seen that celebrity endorsement specially encourages the young to embrace their individuality by celebrting their contemporry icons and heroes.

References
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