Preview

Celebrity Endorsement gone bad - A Conceptual Framework on the Impact of Negative Celebrity Endorsement on Consumer Behavior

Best Essays
Open Document
Open Document
3909 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Celebrity Endorsement gone bad - A Conceptual Framework on the Impact of Negative Celebrity Endorsement on Consumer Behavior
Table of Figures

Figure 1: Meaning Movement and the Endorsement Process Source: McCracken (1989)……………………………………………………………..11

Table of Contents

1 Introduction

In todays society there is a heightened interest towards using celebrities to promote a particular product or brand and its positive effects are increasingly being recognized. Every year companies spend millions of dollars on endorsement contracts to align their brand and themselves with endorsers (e.g. celebrities).1
“When you have nothing important to say, get someone very important to say nothing for your brand.”2 The reason why celebrity endorsement has become an important role in the advertising industry is that businesses have realized that it is indispensible using celebrities if they wish to achieve a competitive advantage. “Strong, unique and favorable brand associations” help companies differentiate their products from those of competitors.3
Celebrities in Advertising can be traced back to the 19th century.4
Taking a closer look on advertising we find ourselves surrounded by celebrities. Approx. 25 percent of all televised commercials feature celebrities in their advertising campaign.5 But not only television is a popular medium for promoting a product - magazines, newspapers and the Internet are staring them as well.
The aim behind pursuing such marketing strategies is to gain attention, high brand exposure, interest, desire and action.6 The consequence is a positive influence of the advertised product through a celebrity and eventually a favorable effect on the brand image.7
While the benefits of using famous people as endorsers can be very appealing for companies, it is not without potential risks. Choosing the wrong celebrity can backfire and bring a huge financial downsize to the company. Negative information and publicity concerning the celebrity is one of the major risks associated with celebrity endorsement.8
For instance Tiger Woods



References: Aaker, J. L. (1997), ”Dimensions of Brand Personality”, Journal of Marketing Research, Vol. 34, pp. 347–56. Atkin, C. and Block, M. (1983), “Effectiveness of celebrity endorsers”, Journal of Advertising Research, Vol. 23, pp. 57-61. Belk, R.W. (1988), “Possessions and the extended self”, Journal of Consumer Research, Vol. 15 No. 3, pp. 753-60. Carrillat, F. A., D’Astous, A. and Lazure, J. (2013), “For Better for Worse? What to Do when Celebrity Endorsement Goes Bad?”, Journal of Advertising Research, Vol. 53, pp. 15-30 Choi, S Eckhardt, A. K and Rennhak C. (2006), “Erfolgsfaktoren im Celebrity Marketing”, Munich Business School Working Paper, pp. 2-9 Erdogan, B Giles, D. (2003) “Media Psychology”, Lawrence Erlbaum, pp. 188-198 Friedman, H Kamins, M. A. (1989), “Celebrity and Noncelebrity Advertising in a Two-Sided Context”, Journal of Advertising Research, pp. 34–42. Kamins, M. A., Brand, M. J., Hoeke, S. A. and Moe, J. C. (1989), “Two-sided Versus One-sided Celebrity Endorsements: The Impact on Advertising Effectiveness and Credibility”, Journal of Advertising, Vol. 18, pp. 4–10. McCracken, G. (1989), “Who is the celebrity endorser? Cultural foundations of the endorsement process”, Journal of Consumer Research, Vol. 16 No. 3, pp. 310-21. Miller, F. and Laczniak, G.R. (2011), “The Ethics of Celebrity – Athlete Endorsement. What Happens When a Star Steps Out of Bounds?”, Journal of Advertising Research, Vol. 51, pp. 499-510 Ohanian, R Ohanian, R. (1990) “Construction and Validation of a Scale to Measure Celebrity Endorsers’ Perceived Expertise, Trustworthiness, and Attractiveness”, Journal of Advertising, pp. 39–52. Patra, S. and Datta, S. K. (2012), “Celebrity Selection & Role of Celebrities in creating Brand Awareness and Brand Preference – A Literature Review”, Journal of Marketing and Communication, Vol. 8, pp. 48-57 Staiger, J Tripp, C., Jensen, T. D. and Carlson, L. (1994), “The Effects of Multiple Product Endorsements by Celebrities on Consumers’ Attitudes and Intentions”, Journal of Consumer Research, Vol. 20, pp. 535-547 White, D.W., Goddard, L Senghas, S. (2007), “Why Do We Care So Much About The Lives Of Celebrities, Anyway?”, published: Feb 19, 2007, Yahoo Voices, last hit May 22, 2012: http://voices.yahoo.com/why-we-care-so-much-lives-celebrities-203648.html?cat=38

You May Also Find These Documents Helpful

  • Good Essays

    In the present market, there are many kinds of marketing methods. The products and services become more and more various. The marketing strategies also must be arranged more and more sophisticated. Using of celebrities to represent and promote products and services is the one of method. This is a special form of advertisement. Some enterprises are good at using this method, some enterprises will ask: Why is there no any echoes after put in a large amount of money?…

    • 483 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    References: Mowen, J.C. & Brown, S.W. 1981. On Explaining and predicting the effectiveness of celebrity endorses. Advances in Consumer Research, 8(1): 437441…

    • 7714 Words
    • 31 Pages
    Powerful Essays
  • Best Essays

    Athlete Endorsements

    • 4178 Words
    • 17 Pages

    Jones, C. (2009, February 23). Scandals tarnish star endorsements, marketers shy away from employing. USA Today, 5B.…

    • 4178 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Celebrity endorsements can be a sense of false advertisement and put smaller businesses out of business because they can't afford the payments of a celebrity promoting the product. These endorsements don't give a reliable source of how the make of the product is, people may just buy the product due to the celebrities promotion. Endorsements can mislead the consumer to buy a lower quality product that is overpriced. The product is overpriced because of the celebrities backing of the…

    • 903 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    These strategies are sometimes so successful that people often purchase celebrity endorsed products without realizing how or if at all it is effective or beneficial to them. For example, “People have paid large sums of money for a tape measure owned by President Kennedy, an autograph by astronaut Neil Armstrong, and the pop star Britney Spears’ chewed-up bubble gum (see Bloom and Gellman 2008; Hood and Bloom 2007 cited by Kurt, D., 2010). This simply shows that consumers value items that are associated in some way with their celebrities. Researchers have found out that it is beneficial to spend millions of dollars on endorsement not only to gain billions of dollars back, but also to create a big brand name for businesses. “Using celebrity endorsement…

    • 173 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Celebrity marketing is quickly becoming one of the most popular forms of advertising. Per recent data 20% of all television commercials have a famous person in them. And about 10% of all the money spent on any form of television advertisement use a celebrity to endorse the brand and product (Advertising Age 1987; Sherman 1985). Research has demonstrated that celebrities make advertising products more plausible (Kamins et al. 1989). They also help the consumer with product recall (Friedman and Friedman 1979). Additionally, celebrities aid the identification with the brand (Petty, Cacioppo, and Schumann 1983). The use of celebrities is intended to instill a positive view in the consumer’s mind in regards of the brand (Kamins et al. 1989), this helps bring life into a product and give it it’s very own personality (McCracken, 1989). Since here are more and more brands investing highly in these celebrity endorsements the question that now must be asked is if it is worth it and persuades consumer purchase intention.…

    • 454 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Celebrities are well known faces that the consumer can use to connect with a product. Whether they hate or love the celebrity it will help the audience remember the product. Imbibing this memory into the consumers can lead to a potential purchase of said product in the future. Secondly, people like Jozui have suggested boycotting companies that use celebrity advertising. Only harm can come from this action. When companies like Nike get boycotted for the unethical working conditions overseas there is loss of profit. Companies don't just eat this loss, they have to compensate for it. Due to a boycott companies may deem it necessary to cut American jobs, or even simply fire all the overseas workers. Once again a net negative, regular people are put out of work while celebrities are still sitting pretty. Was Jozui not arguing that this is the right thing to do? Finally the author states, “We should boycott this kind of advertising and legislate rules and guidelines for advertisers.” (6). Restricting advertisers by forcing legislations upon them and dictating what they can and cannot do is anti-free market, and frankly not American. Putting advertisers on a tight leash by not allowing them to use celebrities or even making it more difficult to is unethical. That would be as if animals weren't to be allowed in advertisements because it is cruel. It simply does not make sense. Advertisers should have the right to use whomever to push their products. Overall using celebrities in advertisements is the smart thing to…

    • 601 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Celebrity Placement Paper

    • 4004 Words
    • 17 Pages

    An advertising agency creating a commercial or advertising campaign tries to come up with a creative and persuasive message that consumers will respond to. Often these advertisements feature a celebrity endorser that the agency has decided fits the best with the product and/or the message that they are trying ‘sell’ to the consumer. But do they just simply think off of the top of their head who they believe will be the best fit for the campaign? Sometimes probably yes. But there are also models used to determine the appropriate celebrity for the job, and that is what my paper is going to be researching. “One of the most important variables…

    • 4004 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    References: Atkin, Ch. and Block, M. (1983). Effectiveness of Celebrity Endorsers. Journal of Advertising Research, 23 (1), 57-61…

    • 4440 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    McCracken, Grant (1989), “Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process,” Journal of Consumer Research, 16 (December): 310-321.…

    • 1064 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Celebrity Phenomenon

    • 1581 Words
    • 7 Pages

    Till, Brian D. and Terence A. Shimp (1998), “Endorsers in Advertising: The Case of Negative Celebrity Information,” Journal of Advertising, 27 (1), 67-82.…

    • 1581 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Obama Imc Strategy

    • 2983 Words
    • 7 Pages

    Till, B.D. & Shimp, T.A. (1998). Endorsers in Advertising: The Case of Negative Celebrity Information. Journal of Advertising. Vol. 27, No. 1, pp. 67-82.…

    • 2983 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Celebrity Endorsement

    • 1008 Words
    • 5 Pages

    Celebrity endorsement is a form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service. Manufacturers of perfumes and clothing are some of the most common business users of classic celebrity endorsement techniques, such as television ads and launch event appearances, in the marketing of their products.…

    • 1008 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Final Project Report

    • 18724 Words
    • 76 Pages

    Karmali, M.A. 1989.Celebrity and Non-Celebrity Advertising in Two Sided Context, Journal of Advertising Research.29 (3):34-42.…

    • 18724 Words
    • 76 Pages
    Good Essays
  • Good Essays

    Celebrity Endorsement

    • 8279 Words
    • 34 Pages

    Bardia Yousef hakimi Faculty of Management, Multimedia University, Cyberjaya, Malaysia E-mail: Bardia_hkm@yahoo.com Tel: +60174152606 Abed Abedniya Faculty of Management, Multimedia University, Cyberjaya, Malaysia E-mail: Abed.abedniya@gmail.com Tel: +60126808177 Majid Nokhbeh Zaeim Faculty of Management, Multimedia University, Cyberjaya, Malaysia E-mail: Majid.Zaeim@gmail.com Tel: +60173587896 Abstract Nowadays, celebrity endorsement is used more than ever before in companies’ sales strategies and marketing campaigns. Generally the types of celebrities who are used to endorse products are music artists, movie stars, and also famous athletes and sportsmen. This study sets out to find the amount of influence that celebrity endorsers have on customers and also the brand image as a whole. To reach this goal, there are five research questions mentioned that will help us come to a conclusion about celebrity endorsement. As there have been few academic literatures on the topic of the effectiveness and usefulness of celebrity endorsement in the field of advertising, I set it as the main goal of my studies to investigate the influence of celebrity endorsement as a promotional technique in Malaysia’s markets, by studying how much Malaysian consumer behaviors are effected by celebrity endorsement, and discovering the factors of celebrity endorsement that can affect the brand image. To appropriately gain the results required and, a questionnaire was distributed to a target group of consumers between the ages of 18 and 33 years old. This group of consumers came specifically from Multimedia University. The data collected from the surveys were studied, analyzed and utilized to come to suitable conclusions, which were ultimately used to find out whether…

    • 8279 Words
    • 34 Pages
    Good Essays