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Sample Undergraduate Marketing Literature Review

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IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOUR PARTICULARLY IN CASE OF FASHION INDUSTRY OF THE UK

CHAPTER 2: LITERATURE REVIEW

Introduction

This chapter includes the relevant literature which is related to assessing the impact of celebrity endorsement on consumer behaviour, particularly in the case of the fashion industry in the UK. This chapter includes celebrity the concept of endorsement which explains the importance of celebrity endorsement in fashion endorsement.

This chapter also includes the concept of consumer buying behaviour along with the stages in the buying process of the consumer and the role of celebrity endorsement in consumer buying behaviour. The significance of celebrity endorsement is also incorporated in this chapter which shows the importance of celebrity endorsement.

The factors of celebrity endorsement that are affecting the buying behaviour of consumers are also discussed in this chapter. Moreover, the impact of celebrity endorsement on consumer buying behaviour is also included in this chapter which helps to identify the increase or decrease in the buying behaviour of consumers due to celebrity endorsement.

Furthermore, the theoretical framework in this chapter provides the relevant theory which shows the celebrity endorsement impact on consumer buying behaviour. The conceptual framework is provided at the end of this chapter which shows the relation between dependent and independent variables.

Concept of Celebrity Endorsement

Celebrity endorsement is a marketing strategy, used by organisations to promote their products and to attract consumers to buy their products. It considers involving celebrities in advertisements that are known to have a particular type of influence over a huge amount of audience and known to maintain a good reputation (Muda, Musa, and Putit, 2017).

In addition to the definition of celebrity endorsement, it is also important to mention that such a type of marketing strategy is not only limited to the marketing of the product but is also known to create social awareness amongst the society or to discuss environmental problems (Ahmed et al., 2015).

The reason organisations use celebrity endorsements is to create a positive image amongst the stakeholders and to communicate the benefit the product can bring to the lives of the consumers. Celebrity endorsements are considered to be much followed by organisations in the fashion industry but non-profit organisations are also considered to use this type of marketing strategy.

The reason non-profit organisations are likely to use celebrity endorsement is to create social awareness by using celebrities to divert individuals’ attention and to promote discussion regarding a social issue or challenge faced or for fundraising (Park and Cho, 2015).

It is often observed that organisations are regarded to use celebrity endorsements because it creates a positive perception in the minds of the consumers as they consider the organisation to develop a sense of reliability and credibility amongst the consumers (Shenje, J., 2017).

Moreover, celebrity endorsement is regarded to be used by organisations since the 1900s century to promote their products and services. Celebrity endorsements had been used in 25 per cent of the advertisements after there was a boom in the marketing of products and services in the 1900s (Chiosa, 2013).

However, organisations in the fashion industry are considered to identify the link between the brand that is going to be advertised with the celebrity to be endorsed, if the link does not match, it is likely to be seen that the product will not be much successful.

Consumer Buying Behaviour

Consumer buying behaviour is regarded to be the activity which is associated with the purchase, use and disposal of the product by the customer. Consumer buying behaviour is considered to be a lot of challenges for organisations. Consumer demands and preferences are in constant change and marketers need to keep track and gain information to improve their marketing strategies (Javadi et al., 2012). Following consumer buying behaviour, it is important to state that the purchasing decision is significantly based upon the previous experience of the product or the perception created in the minds of the consumer.

Five stages of the consumer buying process

The consumer is considered to follow 5 stages during the consumer buying process and is known to identify consumer behaviour.

Identifying the problem

It is important to suggest that the first step in the consumer buying process is to identify the problem. The customers are identifying their needs and wants and are constantly engaged in searching for products that can satisfy their requirements (Negricea and Edu, 2015). Moreover, the consumer is highly indulged in the exploration of information about the product to satisfy their needs and wants. The first stage of the consumer buying process is also regarded to be the gap between the current state and the state that is desired by the consumer (Makarewicz, A., 2013). Per the consumer need, it is important to understand that the consumers are regarded to possess certain expectations that want to be fulfilled and need adequate information to cater to their needs.

Information Search

However, if the consumers can receive an adequate amount of information regarding their product then it is likely to suggest that their needs are going to be met. Their primary drive or motivation is going to be overcome with the availability of the product. Furthermore, the interest of the consumer is likely to be influenced by the willingness to obtain more information regarding the product (Milner and Rosenstreich, 2013). The information that the consumer is likely to obtain can be from family, friends, advertisements and organisations (Ashman et al., 2015). Furthermore, a consumer with an adequate amount of information does not necessarily buy the product and may look for alternatives.

Evaluation of alternatives

In this step, the consumer might compare and contrast the products that have been sought in the previous step. The judgement may be based upon the product’s specification, reputation and the benefits brought forward by the product (Milner and Rosenstreich, 2013). It is often observed that consumers develop a likelihood toward brands that can match their preferences. Furthermore, consumers are not always regarded to have a positive judgement concerning a particular brand, therefore, if the brand can overcome the motive of the consumers then they will consider following that brand (Gordon, 2010). Moreover, consumers choose brands which pose to possess qualities that can benefit them greatly.

Purchase decision

After evaluating the alternatives, a consumer may finally come to the point of making a purchase decision. The consumer may make a purchase intention which is also based upon the adequate amount of information received from the sources during the information search stage (Ashman et al., 2015). Furthermore, a purchase decision is highly based upon the consumer’s commitment to the products or services of the organisation.

Post-purchase evaluation

The final step of the consumer buying behaviour process is based on the consumer having assessed the product. This step is considered to be important since it provides the evaluation of the product after the consumer has bought and started using the product (Alamgir et al., 2011). This step provides insight into whether the consumer is satisfied with the product or not. If the evaluation regarding the product is positive, the consumer may likely purchase the product in the future.

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The significance of celebrity endorsement for consumers

In the contemporary business environment, the fashion industry is known to use celebrity endorsements as its best-used marketing strategy. In support of the previous statement, it is studied that a successful advertisement with celebrity endorsement may return over 20 times the cost of sales to the organisation (Wigley, 2015). It is often observed that it is not necessarily the product may be at the side of the celebrity but the celebrity might be a frequent user, the owner or is likely to work for the brand.

Moreover, brands are known to enjoy the huge amount of benefit that is brought to them from celebrity endorsements and may also be a source through which not only the fashion organisation may improve its reputation but it is likely to improve the reputation of the celebrity as well (LEUNG et al., 2018).

Following the fashion industry, it is highly important to choose celebrities that are considered to have a good reputation since it can develop a negative perception in the minds of the customers regarding the products (Worthen, 2014). The celebrity chosen for an advertisement should not only be attractive but should be popular enough to attract the consumers to the organisation’s products.

Advantages and disadvantages of celebrity endorsement

It has to be understood that celebrity endorsement is a marketing strategy which is used by an organisation to promote a particular product. Using the right type of celebrity can develop a sense of trust within the minds of the consumers which is highly associated with enhancing the credibility of the organisation as well (Nelson and Deborah, 2017).

Furthermore, the consumer starts to believe that the product being endorsed is of good quality and reliable. However, it is important to understand if the product does not match the quality promised by the celebrity, then it may damage the reputation of the celebrity (Spry et al., 2011).

Moreover, it is important to suggest that celebrity advertisements may contribute to high costs to the fashion industry (Priyankara, 2017). Organisations in the fashion industry need to contemplate the fact that celebrity endorsements can provide advantages as well as drawbacks to their marketing strategies.

Factors of Celebrity Endorsement Affecting Consumer Behaviour

Credibility

In the fashion industry, the buying behaviour of consumers is dependent on the credibility of the celebrity to a certain extent. In light of the research study conducted by Sertoglu, Catlı and Korkmaz (2013), the effectiveness of the message is dependent on the level of trustworthiness and expertise that an endorser has.

The opinions, behaviour, attitudes and beliefs of the individuals can be influenced by the celebrity through a process called internalisation. For this purpose, the celebrity needs to be trustworthy which can impact the buying behaviour of the consumer. Consumers are most likely to get influenced by celebrities that are credible and trustworthy.

In the light of the research study conducted by Bhatt, Jayswal and Patel (2013), in the context of celebrity endorsement, the believability, integrity and honesty of an endorser refer to trustworthiness. The endorsers that are dependable, believable and trustful are frequently searched by the companies.

When it comes to likeability and credibility, trustworthiness is considered the crucial factor and is mentioned as a significant aspect of trust. According to the study conducted by Chan, Leung Ng and Luk (2013), the trustworthiness of the brand is increased when a consumer likes a celebrity.

Attractiveness

There is an impact of celebrity attractiveness on the attraction of the consumers. In light of the research study conducted by Hwang and Han (2014), there is a positive stereotype among the consumers about the physically attractive people. It is more likely that if the communicators are attractive, they might change the beliefs of the people or might influence them.

As compared to unattractive endorsers, the attractive endorsers are better at generating the consumer’s buying intentions. According to the study conducted by Sallam and Wahid (2012), the effectiveness of the message depends heavily on the liking, familiarity and similarity of the endorser.

In light of the research study conducted by Teng et al., (2014), the similarity is considered as the resemblance between the receiver and source of the message. It is more likely that the consumers easily get influenced by the endorser which is more like them. This is because of the reason that consumers assume that due to the similarity between themselves and the endorser, they might also look attractive as shown in the advertisement.

They start comparing in a positive manner which works for the company and the sales of the product are increased. According to the study conducted by Tingchi Liu and Brock (2011), the similarity between the endorser and the consumer helps to convey the message more effectively.

Meaning Transfer

The meaning transfer model was made up by McCracken in 1989 which applies to the endorsement of the celebrity (Ahmed, Mir and Farooq, 2012). There are three stages in the model and according to McCracken, there is the impact of celebrity endorsement on all three stages.

In the first stage of the model, the celebrities are offering different kinds of personalities and lifestyles meaning which normal people might not. In light of the research study conducted by Johansson and Bozan (2017), in the second stage of the meaning transfer model, the companies for the specific products must choose the right celebrity.

The company must ensure to transfer the personality and meaning from the celebrity to the product. According to the research study conducted by Johansson and Bozan (2017), in the third stage of the meaning transfer model, the company must transfer the personality and meaning of the product to the customer who has purchased the endorsed product.

These three stages in the meaning transfer model play a significant role in the buying behaviour of the consumer. The three stages in the model help the organisation to convey the meaning of the product to the consumers from which they relate to the product and indulge in buying those products.

Impact of Celebrity Endorsement on Consumer Buying Behaviour

The strategies that are intended to attract the interest of the consumer towards the message are regularly practised by the advertisers. This is done by the organisations to anticipate the influence of consumer buying behaviour and to differentiate their offerings. In the light of the research study conducted by Choi and Rifon (2012), the use of attractive celebrities in the advertisement or product promotions is to grab the attention of the consumers which impacts their buying behaviour of the consumers.

This is considered the psychological factor to grab the attention and influence the target market based on celebrity. It is a common factor that people get more influenced by celebrities or other famous people whom they admire most. According to the research study conducted by Lidwell, Holden and Butler (2010), celebrities have more power in terms of influencing other people and changing their perception of a particular product or service.

This shows that it is more effective for organisations to attract and convey the message of the product with the help of celebrity endorsement. The fashion trend mostly starts in the movie industry where the celebrity who has a unique style of its own appears with branded clothes to promote the product.

Celebrities are followed by many people in the world based on their style, sense of fashion or personality. In the light of the research study conducted by Joy et al., (2012), the sense of fashion of the celebrity attracts most the people and they try to copy or adapt the same style.

For this purpose, celebrity endorsement has a significant impact on the buying behaviour of the consumer, especially in the fashion industry. People look at the celebrities in the advertisement and try to compare and assume that they might also look this attractive in similar clothes. This affects the buying behaviour of the consumer towards a particular product or service.

Theoretical framework

The Dual Entertainment Path model greatly explains the phenomena of the celebrity endorsement process that can bring about an impact on consumer behaviour. The purpose of this theory is to highlight the effect of using the right celebrity for a particular advertisement to engage consumers to purchase a product.

Furthermore, the model is also considered to identify that organisations need to look for celebrities that have a good reputation amongst consumers and must match the character of the product that is to be advertised (Roy and Mishra, 2018). The theory, however, is considered to pose limitations as it lacks to provide a complete insight regarding celebrity endorsement concerning consumer behaviour (Hung, 2014). It can be analysed that celebrity endorsement does play a critical role in developing the interests of the consumer so that organisations are better able to promote their products.

Conceptual framework

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The conceptual framework above shows the relation between the dependent and independent variables of the study. The independent variables in the study are credibility, attractiveness and meaning transfer which affect the mediating variable. The mediating variable in the study is celebrity endorsement which is affected by the independent variables and makes its impact on the dependent variable. The dependent variable in the study is the consumer buying behaviour which is affected by the celebrity endorsement.

Summary

In this chapter, the concept of celebrity endorsement is explained which shows that the involvement of celebrities in promoting the product or service plays a significant role in influencing the consumers. The concept of consumer buying behaviour is explained which shows that the buying behaviour of the consumer depends on several factors that might increase or decrease the buying behaviour of the consumer.

The stages of the consumer buying process are also discussed which shows that the consumer had to go through several steps before making the purchase. The factors of celebrity endorsement that affect the buying behaviour of the consumer are also discussed which include credibility, attractiveness and meaning transfer.

The impact of celebrity endorsement on consumer buying behaviour shows that consumers are influenced and motivated by the endorsement of celebrities. The conceptual framework shows the relation between dependent and independent variables. The dependent variable is consumer buying behaviour and the independent variables are credibility, attractiveness and meaning transfer. The Dual Entertainment Path model discussed in the theoretical framework explains the importance of the right celebrity for the promotion of a particular product.

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References

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