final thesis.docx

An Empirical Investigation of Celebrity Endorsement on Brand Equity in Shampoo Brands

Submitted by:

Mahrukh Malik (1411287)

Muhammad Mujtaba (1111240)

Thesis Report

Business Research Methods (BRM)

Submitted to:

Syed FaheemHasanBukhari

Summers 2015

Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology (SZABIST) 154 Clifton, Karachi

Declaration

We certify that this is my own original research work. The work has not, in whole or in part,

been presented elsewhere for assessment. Where material has been used from other sources, it

has been properly acknowledged. If this statement is untrue and if we are found guilty of the

plagiarism, the punitive actions against us may be taken as per the SZABIST Anti Plagiarism

Policy

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Program: Management Science

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Certificate of ApprovalThis is to certify that ________________________________bearing registration no(s) 1411287

and 1111240 respectively, has completed their Independent Study , entitled an empirical

investigation of emotional attachment on consumer responses to brand extension, in partial

fulfilment of the requirements for the completion of BBA Project under the supervision of Mr.

Faheem Hasan Bukhari The research project meets the prescribed requirements and standard as

set by Management Science Department, Shaheed Zulfikar Ali Bhutto Institute of Science &

Technology (SZABIST), Karachi, Pakistan.

_______________________

Assistant Professor

Syed Faheem Hasan Bukhari

Faculty Business Research Methods

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Abstract In the present business environment, marketers are using different kinds of marketing strategies

to achieve the organizational goals. Celebrity endorsement is one of the marketing strategies

which are adopted to achieve the organizational goals. Celebrity endorsement advertisements

have been known as ‘ubiquitous feature of modern marketing. This study attempts to measure

the impact of celebrity of endorsement on brand equity in the cosmetic product. For this purpose,

110 respondents were selected from which 56 were the female respondents while the rest of 54

were male, by using convenience sampling methods. The data analysis covered over all

reliability, inter-item reliability, correlation and regression by using SPSS software. Results

revealed that the overall reliability is 95.7% making it reliable enough to precede the research.

Celebrity endorsement and brand equity are positively correlated. A result of the regression

analysis is celebrity endorsement (Independent Variable) 0.631 which means 63.1% percent

impact on brand equity. This study would hopefully benefit to the academicians, researchers,

policy makers and practitioners through exploring the impact of celebrity endorsement and brand

equity.

Keywords:

Celebrity endorsement, brand equity, advertisement

Contents

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Declaration..................................................................................................................................................2

Certificate of Approval................................................................................................................................3

1.0 Introduction.....................................................................................................................................7

1.1 Background.......................................................................................................................................7

1.2 Research Problem..............................................................................................................................8

1.3 Research Questions............................................................................................................................8

1.4 Research Objectives..........................................................................................................................9

1.5 Justifications......................................................................................................................................9

1.6 Research Beneficiaries.......................................................................................................................9

1.7 Limitations...................................................................................................................................9

1.8 Scope of Research...........................................................................................................................10

1.9 Assumptions....................................................................................................................................10

1.10 Definition of Key words............................................................................................................10

1.10.1 Celebrity Endorsement.......................................................................................................10

1.10.2 Brand Equity...........................................................................................................................11

1.10.3 Advertisement.........................................................................................................................11

Chapter 2 Literature Review......................................................................................................................12

2.1 Celebrity Endorsement....................................................................................................................12

2.2 Trust worthiness..............................................................................................................................13

2.3 Credibility........................................................................................................................................14

2.4 Attractiveness..................................................................................................................................15

2.5 Expertise..........................................................................................................................................15

2.6 Celebrity match up product..............................................................................................................16

2.7 Brand Equity....................................................................................................................................16

2.8 Brand Awareness.............................................................................................................................17

2.9 Brand Image....................................................................................................................................17

3.0Research Methodology.........................................................................................................................18

3.4 Sample and Sampling Method.........................................................................................................19

3.5 Instrument Selection........................................................................................................................19

3.6ConceptualFramework......................................................................................................................19

3.61 Independent Variable.....................................................................................................................20

3.62 Dependent Variable.......................................................................................................................20

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3.7 Hypothesis.......................................................................................................................................21

3.8 Plan of Analysis...............................................................................................................................22

3.9 Software Employed.........................................................................................................................22

4.0 Data Analysis and Interpretation.....................................................................................................23

4.1 Reliability Analysis.........................................................................................................................23

4.11 Over All Reliability Analysis.........................................................................................................23

4.12 Inter-item Reliability Analysis Celebrity Endorsement.................................................................24

4.13 Inter-item Reliability Analysis Attractiveness...............................................................................24

4.14 Inter-item Reliability Analysis Expertise.......................................................................................25

4.15 Inter-item Reliability Analysis Credibility.....................................................................................26

4.16 Inter-item Reliability Analysis Trustworthiness............................................................................26

4.17 Inter-item Reliability Analysis Celebrity Matchup Products.........................................................27

4.18 Inter-item Reliability Analysis Brand Awareness..........................................................................27

4.19 Inter-item Reliability Analysis Brand Image.................................................................................28

4.110 Inter-item Reliability Analysis Brand Relation............................................................................28

4.111 Inter-item Reliability Analysis Brand Loyalty.............................................................................29

4.2 Correlation.......................................................................................................................................29

4.21 Celebrity Endorsement..................................................................................................................30

4.22 Attractiveness................................................................................................................................30

4.23 Expertise........................................................................................................................................30

4.24 Credibility......................................................................................................................................30

4.25 Trustworthiness.............................................................................................................................31

4.26 Celebrity Matchup product............................................................................................................31

4.3 Regression Analysis 4.31 Model Summary Analysis......................................................................31

4.32 Anova Analysis.............................................................................................................................32

4.33 Co-efficient Analysis.......................................................................................................................32

4.331 Celebrity Endorsement................................................................................................................33

4.332 Attractiveness..............................................................................................................................33

4.333 Expertise......................................................................................................................................33

4.334 Credibility....................................................................................................................................33

4.335 Trustworthiness...........................................................................................................................33

4.336 Celebrity Match-up Product.........................................................................................................33

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4.4 Demographic Analysis......................................................................................................................33

5.0 Conclusion.......................................................................................................................................36

5.1 Recommendations...........................................................................................................................37

5.2 Area of Further Research.................................................................................................................37

Appendices............................................................................................................................................37

1.0 Introduction

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1.1 Background

On regular schedule a huge number of buyers are being presented to a great many visual pictures

on garish magazines, on spread pages of daily papers, TV, bulletins, person to person

communication destinations and radio. Each brand is in the battle to get consideration of its

purchaser, to attach them a bit longer to persuade them to purchase their items. Advertisers are

utilizing different sorts of showcasing procedures to accomplish their authoritative objectives.

Yet, the test is the manner by which to clasp them a moment longer. In serving to accomplish

this, the utilization of big name underwriting is generally utilized promoting technique.

These days, individuals flip over, look down and change the channel when an ad comes however

the appeal of a big name goes unnoticed. Along these lines the embodiment of big name support

in an ad is of incredible hugeness. Firms accept the force of a brand, lies between the mentality

of its current customers and what they have really experienced about the brand specifically or

perhaps by implication, utilizing superstar support.

Celebrity support is being utilized over numerous years as per an exploration in 1979 one in

every six plugs utilized big name underwriting and the proportion went up to 25% till the end of

2001 (Erdogan, et al, 2001). Celebrity support in appreciation to showcasing is a sort of divert in

brand correspondence where celebrities are the agents of the brand and formally express brand's

case by developing their identity, fame amongst the mass and status in the general public or

mastery in the field to the brand. In short it is a device to make a corner in the business and

among the contenders of the business. Correspondence, and also advertising correspondence that

uses VIP endorsers, can be recognized as a procedure in which the sender passes on jolts to

persuade the conduct of others (Hovland 1953).Lasswells (1948) built up system of powerful

correspondence isolates the components of correspondence methodology as per his surely

understood strategy "who says what in which channel to whom." The first component which is

"who" is alluded to the message source or sender (Ajzen, 1992; Hovland 1953). There are three

sorts of message sources unoriginal i.e. commercial, interpersonal can be your companions or

partners and experiential (Keaveney and Parthasarathy, 2001). In setting to support, Celebrity is

a generic message source, so his or her qualities including clear individual characteristics like

engaging quality, dependability or believability, may choose underwriting achievement as far as

the positive brand image result.

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Key terms: Celebrity endorsement, Brand equity, Advertisement.

1.2 Research Problem

Big name Endorsement goes about as a persuading method for "cash blazing". Since this is a

universe of items for which the worth a buyer acquires from buying any given mixed bag. (Clark

& Horstman, 2003). Subsequently these days, organizations spend a lump of cash for every year

on superstar underwriting to make a focused edge over its rivals, to make attention to its image

and to depict a positive picture. Be that as it may, there are numerous issues hazy with respect to

the relationship between celebrity endorsement and brand equity. This exploration will look at

the impact of utilizing famous people and how can it change the impression of customers.

Thusly, this exploration will unravel the constructive outcomes of superstar supports and how

does the impact change the affectability of the brand and influence its image value. Likewise

does burning through billions of dollars really advantage the brand or not.

1.3 Research Questions

RQ1: What is the overall impact and relationship of celebrity endorsement with brand equity?

RQ2: How does trust worthiness impacts the brand equity?

RQ3: Is there any relationship between credibility and brand equity?

RQ4: What is the impact of attractiveness over brand equity?

RQ5: To what extent celebrity match up product is related with brand equity?

RQ6: How does expertise impact the brand equity?

1.4 Research Objectives

RO1: To ascertain the impact and relationship of celebrity endorsement towards brand equity.

RO2: Establish the impact of trustworthiness towards brand equity.

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RO3: Establish the relationship between credibility and brand equity.

RO4: Identification of attractiveness towards brand equity.

RO5: Understand the impact of expertise towards brand equity.

RO6: Identifying the relationship between celebrity match-up products with brand equity.

1.5 Justifications

Brand equity is the value of having a well-known brand and the company can generate more

money with the brand name. So the most important thing is associating the right people with the

brand to generate more money. Hence this study will evaluate the essence of celebrity

endorsement with brand equity. And how the consumer perception is changed through celebrity

intervene.

1.6 Research Beneficiaries

The main stakeholders of this research are:

Academicians

Researchers

Practitioners, through investigating the effect of big name underwriting and brand equity.

1.7Limitations

The study just secured a specimen of individuals due to time confinement and

Accessibility,

The information was accumulated just from Karachi as a result of Accessibility,

Time limitations,

Law and request circumstances,

Literacy rate of Pakistan,

Budget.

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1.8 Scope of Research

The study was conducted in Karachi Pakistan, the findings and conclusion will be useful

for especially Pakistani companies.

The research focused on the consumer perception regarding celebrity endorsement and its

impact on brand equity.

This study was carried out in Karachi, Pakistan. Karachi is the capital of Sindh as well as

the largest and most populated metropolitan city. Karachi is known to be the financial

center of the country. It is the Pakistan’s center of banking, industry, economic activity

and trade and is home to Pakistan’s largest corporations including those involved in

textile, advertising, publishing and etc.

1.9 Assumptions

All political and law & order situation in Karachi will remain stable during the research.

The information and data which is taken from internet is reliable and truthful and reflect

the correct dimensions of Celebrity endorsement which is affecting brand equity.

1.10Definition of Key words

1.10.1Celebrity Endorsement

It is a type of publicizing crusade that obliges a surely understood individual utilizing their

distinction and accomplishment to help advance a result of administration. Fantastic celebrity

support procedures are utilized, for example, TV advertisements and dispatch occasion

appearances in the promoting of their item.

1.10.2 Brand Equity

A brand's energy got from the goodwill and name acknowledgment that it has earned after some

time, which deciphers into higher deals volume and higher net revenues against contending

brands.

1.10.3 Advertisement

It is a type of promoting correspondence used to convince a crowd of people to make or proceed

with some move, for the most part concerning a business offering or ideological backing. Notice

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makes and expands brand awareness by presenting brand to clients. (Aaker 1991, Batra et al.,

1995, Keller 1993, Rossiter and Percy 1987 and Yoo et al., 2000).

Chapter 2 Literature Review

2.1 Celebrity Endorsement

"Celebrity is a ubiquitous element of society, blasting enduring impressions in the recollections of all who cross its way." – Kurzmanet. Al (2007).

A big name endorser is an element who appreciates open appreciation and who utilizes this affirmation for the benefit of a customer decent by rousing them through a notice (McCracken, 1989). Friedman and Friedman certify that a VIP endorser is a person who is known not opens for his or her achievement in locales others than of the item class embraced. (Friedman & Friedman, 1979)

For the most part, celebrities inside of a positive or coordinating social gathering contrast from the collective practice and standard and appreciate a high measure of open mindfulness (Schlecht, 2003). Big name endorser's go about as the "initiator" and "influencer" in the

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customer's purchasing choice; they create mindfulness and build up the interest of the individuals in the brand and permit item affiliation (Guptha, 2014).

A prestigious big name endorser as a brand or item promoter could help to recoup the assessment of the business (Rashid et al, 2001) and to have a relationship between the brand/item and the endorser (Tellis, 1998). That is the reason organizations think utilizing an understood big name as an endorser instead of less known and took after representative. Importance Transfer Model suggests that famous people pass on typical implications and qualities to items or administrations they embrace (Amos et al., 2008; Lee & Thorson, 2008; McCracken, 1989; Till et al., 2008)

There are distinctive types of celebrity supports, which incorporate print publicizing in magazines, TV promotions, items which are utilized as a part of films and TV programs. (Eshaghpour, 2010).

Despite the fact that superstar supports are extravagant yet there are numerous advantages slanted towards big name underwriting thusly it is still a generally looked for advertising method. By utilizing the acknowledgment of the big name the organizations have the capacity to increase numerous focal points. (Mcaleer, 2010).

Firstly, it could immediately include believability. It is a typical accepts amongst shoppers that if a big name is utilizing a certain item or brand, the organization that is creating the item or administration must have notable level of high caliber.

Also, it snatches moment consideration. With famous people supporting a specific brand or item, the buyer's consideration are well on the way to be pulled in by the celebrities and are willing to give careful consideration.

Thirdly, it can upgrade in media presentation. A brand being included with a celebrity pulls in media. An occasion with big name underwriting is accounted for by the media which produces free reputation in daily papers and magazines. Shoppers like to partake in occasions with their most loved superstars being included and which subsequently expands brand mindfulness.

Fourthly, big name underwriting may likewise really enhance the money related status of the organization that puts resources into big name supports as a venture. (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001).

In this chapter endorsement will be further explored in the context of different constructs like Trustworthiness, Attractiveness, Credibility, Expertise and Celebrity match-up product.

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2.2 Trust worthiness

Dependability adverts to the trustworthiness, honesty and the authenticity of an endorser

(Erdogan et al. 2001). Organizations attempt to find endorsers who are broadly seen as trustful

and who are pictured as genuine, trustworthy and tried and true (Shimp, 1997). Reliability is the

most critical angle as to the source believability and impact validity. Publicists can create the

most extreme impact by charming these two elements, preferring and reliability, into portrayal.

Since it is confirmed when purchasers like a big name, they by outline believe a celebrity.

(Friedman, Santeramo &Traina, 1979).

The dependability is premier substance for viable endorsers. On the off chance that purchasers

consider what the endorser is telling and they believe him or her, the unavoidability of the

advertisement is lifted and viewpoint of the customers will support.

Reliability is the level to which one can believe the objectives of the sender to relate to the

recipient the most substantial contentions (Ohanian, 1991). In the event that the endorser is

reliable, thought to be a specialist, or is appealing then he or she ought to be persuading. What's

more, if endorser is drawn into an outrage then negative exposure influences allure and

believability of celebrity endorsers contrarily (Chan, 2013; Spears, 2013). The segments

appropriateness, openness and incompletely, good faith were critical arbitrators of shopper's

mentalities out of the huge five identity measurements.

2.3 Credibility

Credibility is said to be the extent to which the recipient sees the source as having applicable

learning, abilities, or experience and trusts the source to give unbiased, target data (Belch &

Blech, 1994). The two hugest elements of validity are ability and trust (Hovland et al, 1953). Big

names are seen as sound establishments of data (Goldsmith et al, 2000) and the validity of a

superstar is characterized as the aggregate sum of positive sorts that make and raise the usual

meaning of the message (Erdogan,1999). Validity is a standout amongst the most fundamental

components of big name support. Validity is prevalently vital when individuals have a negative

methodology towards the brand and effective feelings are expected to keep the counter differing

and emphatically influence the standpoint towards the brand. Along these lines, when big names

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are dependable if influences the acknowledgment of the message and the impact (Belch & burp,

2001).

As per Ohanian (1990), the adequacy of big name support is relied on upon the endorser's

apparent engaging quality and saw validity, which are Trustworthiness and Expertise. Along

these lines believability is a vital develops of this examination. This model was generally utilized

by the scientists while they were contemplating the adequacy of superstar support. As shown in

Figure1.0.

Trustworthiness Expertise Attractiveness

Not Dependable-Dependable

Dishonest-Honest

Unreliable-Reliable

Insincere-Sincere

Untrustworthy-Trustworthy

Not Expert-ExpertInexperienced-ExperiencedUnknowledgeable-knowledgeableUnqualified-QualifiedUnskilled-Skilled

Unattractive-AttractiveNot Classy-ClassyUgly-BeautifulPlain-ElegantNot Sexy-Sexy

Figure 1.0- Source credibility-scale (Ohanian, 1990)

In the model, there were three measurements which were:

• Trustworthiness, which included not tried and true/tried and true, deceptive/genuine,

temperamental/dependable, tricky/earnest, conniving/reliable.

• Expertise, which included not master/master, unpracticed/experienced,

unknowledgeable/proficient, devious/true, and conniving/dependable.

• Attractiveness, which included, ugly/alluring, not tasteful/tasteful, monstrous/delightful,

plain/exquisite, and not hot/provocative.

Thus above stated is part of the credibility in celebrity endorsement.

2.4 Attractiveness

The thought of appeal does not just include the physical allure. Appeal likewise requests

thoughts, for example, scholarly abilities, identity properties, method for living, athletic

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exhibitions and aptitudes of endorsers (Erdogan, 1999). Big names can be alluring as they are

well respectable for instance extraordinary game exhibitions or effective performing artists and

open have immense appreciation for their prosperity and subsequently they are pulled in towards

them. Physical engaging quality prompts that a VIP determines the effectiveness of impact as a

consequence of that clients needing to be similar to the endorser and needing to perceive

themselves with that endorser (Cohen & Golden, 1972).

Appealing endorsers are said to be more successful and effectively gets the consideration of

buyer's and helps in item advancement. (Till and Busler, 1998). As Aristotle characterizes

"Magnificence is more noteworthy suggestion than any letter of presentation." accordingly,

buyers accepted appeal is the most vital criteria in the matter of source believability, making

alluring superstar endorsers more solid and valid. (Till & Bustler, 2000)

2.5 Expertise

Skill of big name underwriting is disclosed as the extent to which an endorser should be an

establishment of compelling declarations (Erdogan, 1999). Concerning aptitude, it isn't

noteworthy that the big name is truly a specialist in the field. It is essential that shoppers consider

and trust a big name as a skill (Ohanian, 1990). To illustrate, in an offering situation a specialist

businessperson brought on a significantly hoisted number of clients to purchase an item than the

non-master sales representative did (Woodside & Davenport, 1947).

Master likewise causes influenced perceptions of the item's quality. The source or big name that

is an individual has been discovered to be all the more persuading (Aaker, 1997) and delivers

more buy point (Ohanian, 1991). What's more Speck, Schumann and Thompson (1988) asserted

that big names, who are envisioned as a specialist in a specific range, fortify higher brand

thankfulness than big names that are seen as non-specialists. The force of superstar skill will

choose its prosperity (Amos, Holmes & Strutton, 2008). The extra skill a big name has, the more

productive it will be.

2.6 Celebrity match up product

Various studies (Cooper, 1984; Forkan 1980) clarify that match-up similitude in the middle of

big name and the item is of real importance. This correspondence brings about an improved

review of the business and brand data and will completely influence the exchange persuasion

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with respect to the representation of the brand (Rockney & Green, 1979). Publicizing is an item

by method for big name that has a comparatively elevated item consistent picture, prompts better

promoter and superstar acceptability on the off chance that you would stand out it from a less

comparable item/VIP picture (Kotler, 1997). The match-up comprises of two focal terms: the

clear fit and the picture of the big name (Misra, 1990). At the point when a celebrity has a

magnificent picture and fit to the item and organization, these will direct to more prominent

authenticity and achievement. By holding those qualities you create two focal points, working

together for the item (Erdogan, 1999). What is of immense significance for an endorser, is the

match up of the big name through the picture and message an organization needs to spread.

2.7 Brand Equity

Brand value, an idea rose in the 1980s and moved the advertising specialists in every conceivable bearing looking for an immaculate fixing to increase finish client's trust. The expression "Brand Equity" alludes to the extra esteem which is added by a brand name to an item (Farquhar, 1989).

(Aaker, D. A, 2009) Evidently characterizes brand value as an arrangement of benefits and liabilities that are related to the brand of their item or administration which thusly creates a positive or negative contact on the firm and its clients. He likewise clarifies that brand value can be isolated into five measurements:

1. Brand dedication

2. Name mindfulness

3. Perceived quality

4. Brand relationship notwithstanding saw quality

5. Propriety brand resources licenses, trademarks, channel and connections and so on.

Brand value can be measured by measuring the parts of the brand worth chain and characterizing the corporate marking methods, characterizing the brand progressive system and brand-item lattice and actualizing an approach for brand fortress and influence after some time and over topographical limits. (Keller, K. L., Parameswaran, M. G., & Jacob, I. 2011).

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2.8 Brand Awareness

Brand awareness implies whether your buyers can recall or recognize a brand, or just regardless

of whether purchasers think around a brand (Keller, 2008). Brand awareness prompts building

brand value. The brand name offers the memory hubs in shoppers' brains (Aaker, 1991).

Purchasers may tie the joined brand data to the brand name, which finally contains brand value

(Aaker, 1991 and Keller, 1993). Hence, mark awareness gives a sort of learning advantage for

the brand (Keller, 2008). Brand awareness impacts buyer's choice making, particularly for low-

contribution bundled products. Brands that purchasers perceive are more obligated to be joined

in the shoppers thought set (Hoyer and Brown, 1990 and MacDonald and Sharp, 2000).

Customers may utilize brand mindfulness as a buy choice heuristic (Hoyer and Brown, 1990 and

MacDonald and Sharp, 2000). In this way, brand awareness lifts brand market schedule.

2.9 Brand Image

Brand image has been a general term in advertising research and practice for a large portion of a

century, being allotted to some degree distinctive implications by different creators and in

various settings. On the other hand, these definitions when all is said in complete offer the

review that a brand image exists in the psyches of purchasers, as a result of how individuals

recognize and comprehend the brand and the advertising exercises bordering in it, subsequently

venturing out in front of the genuine item itself. Keller (1993) characterizes brand image as

"discernments about brand as reflected by the brand affiliations held in buyer memory."

Evidently, buyers shape a picture of the brand on the relations about the brand.

A few researchers assert that brand picture is connected with late utilizations information, and

the more positive the image the higher is seen quality, worth, fulfillment, and client dedication

(Johnson et al, 2001; Andreassen and Lindestand, 1998).

3.0Research Methodology

3.1 The Research Design

This research adopted positivism approach, wherein the data was collected quantitatively with

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the inductive approach with the help of a structured questionnaire. The analysis of information

was taken place through the mono-method approach. The cross section method will be applied

on data, which were gathered from the targeted respondents and was analyzed accordingly.

3.2 The Procedure

Discussed the existing models and theories about Celebrity Endorsement and Brand

Equity through study of secondary literature.

A structured questionnaire was constructed which was adopted from literature review with close

ended questions based on five Likert Scales.

Data was collected from target respondents by getting in touch with them face to face and through

online docs.

Data was confined into SPSS for the purpose of analysis.

Result will be portrayed, discussed, concluded; at the end.

3.3 Target Population

3.3.1 Frame of Reference

Population which was the respondents of this research mainly includes youth of Pakistan. The

justification behind choosing the youth is that they are better aware about the celebrities

endorsing the brands in the market due to their emotional attachment and connection with the

celebrities. In this way, the researcher can focus on their different opinions by gathering their

responses to make sure whether their emotional preference leads to brand equity or not.

3.4 Sample and Sampling Method

The objective of this research was to ascertain the impact and relationship of celebrity

endorsement on brand equity. Since researcher was not able to cover youth on whole, thus a non-

probability sampling technique, which is convenience sampling technique, was adopted to get

110 respondents from the youth in Karachi. To make the research more authentic, it was focused

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on youth and the target audiences were the students of different universities. Therefore, the aim

was to gather information from different universities i.e. IBA University, SZABIST University,

Bahria University and CBM University. The rationale behind adopting the convenience

technique was that this allows the researcher to analyze the data taken from the respondents

easily.

3.5 Instrument Selection

Two types of data were used primary and secondary. Only primary data was collected by using

structured questionnaire. The secondary data was collected from different reviews of literature

conducted internationally.

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3.6ConceptualFramework

Figure 2.0- The conceptual framework.

3.61 Independent Variable

Celebrity Endorsement

Trustworthiness

Celebrity Match-up Product

Attractiveness

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Brand Equity

Brand Awareness

Brand Image Brand Relation Brand Loyalty

Celebrity Endorsement

Attractiveness

Trustworthiness

Credibility


Expertise

Expertise

Credibility

3.62 Dependent Variable

Brand Equity

Brand Awareness

Brand Image

Brand Relation

Brand Loyalty

3.7 Hypothesis

HO: There is no correlation of Trust worthiness over Brand Equity.

HO: There is no correlation of Celebrity Match up product over Brand Equity.

HO: There is no correlation of Attractiveness over Brand equity.

HO: There is no correlation of Expertise over Brand Equity.

HO: There is no correlation of Credibility over Brand Equity.

HO: There is no impact of Trust worthiness over brand Equity.

HO: There is no impact of Celebrity Match up product over Brand Equity.

HO: There is no impact of Attractiveness over Brand Equity.

HO: There is no impact of Expertise over Brand Equity.

HO: There is no impact of Credibility over Brand Equity.

HA: There is correlation of Trust worthiness over Brand Equity.

HA: There is correlation of Celebrity Match up product over Brand Equity.

HA: There is correlation of Attractiveness over Brand Equity.

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HA: There is correlation of Expertise over Brand Equity.

HA: There is correlation of Credibility over Brand Equity.

HA: There is an impact of Trustworthiness over Brand Equity.

HA: There is an impact of Celebrity Match up product over Brand Equity.

HA: There is an impact of Attractiveness over Brand Equity.

HA: There is an impact of Expertise over Brand Equity.

HA: There is an impact of Credibility over Brand Equity.

3.8 Plan of Analysis

Descriptive statistics

According to the nature of data, descriptive statistics was used and results were portrayed in the

form of tabular and graphical.

Inferential Statistics

In order to check the noble fit and cause of independent variables over dependent variable, the

test of multiple regressions was run on the data. In order to check the degree of distinctiveness

and similarity between the variables, correlation test was used. Interpretation of either test was

made as per agreeing hypothesis.

3.9 Software Employed

SPSS was used to analyze the quantitative data collected from the primary data which is the

questionnaire.

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4.0 Data Analysis and Interpretation

4.1 Reliability Analysis

4.11 Over All Reliability Analysis

Case Processing Summary

N %

Cases

Valid 109 99.1

Excludeda 1 .9

Total 110 100.0

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Figure 3.0- Case Processing Summary

Reliability Statistics

Cronbach's

Alpha

N of Items

.957 23

Figure 4.0- Over All reliability Analysis

Since the cronbach alpha value of Over All Reliability value is greater than 0.6 therefore the data

is reliable enough to perform further statistical analysis.

4.12 Inter-item Reliability Analysis Celebrity Endorsement


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0

Figure 5.0- Case Processing Summary


Cronbach's

Alpha

N of Items

.830 3

Figure 6.0- Inter

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Since the cronbach alpha value of Celebrity Endorsement is greater than 0.6 therefore the data is

reliable enough to perform further statistical analysis.

4.13 Inter-item Reliability Analysis Attractiveness


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0


Cronbach's

Alpha

N of Items

.802 2

Since the cronbach alpha value of Attractiveness is greater than 0.6 therefore the data is reliable

enough to perform further statistical analysis.

4.14 Inter-item Reliability Analysis Expertise


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0

26


Cronbach's

Alpha

N of Items

.816 2

Since the cronbach alpha value of expertise is greater than 0.6 therefore the data is reliable


4.15 Inter-item Reliability Analysis Credibility


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0


Cronbach's

Alpha

N of Items

.875 3

Since the cronbach alpha value of credibility is greater than 0.6 therefore the data is reliable


4.16 Inter-item Reliability Analysis Trustworthiness

27


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0


Cronbach's

Alpha

N of Items

.853 3

Since the cronbach alpha value of Trustworthiness is greater than 0.6 therefore the data is


4.17 Inter-item Reliability Analysis Celebrity Matchup Products

28

4.18 Inter-item Reliability Analysis Brand Awareness


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0


29


N %

Cases

Valid 110 100.0

Exclude

da0 .0

Total 110 100.0


Cronbach's

Alpha

N of

Items

.525 2

Since the cronbach alpha value of Celebrity Match-up Product is less than 0.6 but the

overall reliability is more than 0.6 therefore the data is reliable enough to perform

further statistical analysis.

Cronbach's

Alpha

N of Items

.831 2

Since the cronbach alpha value of Brand Awareness is greater than 0.6 therefore the data is


4.19 Inter-item Reliability Analysis Brand Image


N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0


Cronbach's

Alpha

N of Items

.809 2

Since the cronbach alpha value of Brand Image is greater than 0.6 therefore the data is reliable


4.110 Inter-item Reliability Analysis Brand Relation


30

N %

Cases

Valid 110 100.0

Excludeda 0 .0

Total 110 100.0


Cronbach's

Alpha

N of Items

.834 2

Since the cronbach alpha value is greater than 0.6 therefore the data is reliable enough to perform


4.111 Inter-item Reliability Analysis Brand Loyalty


N %

Cases

Valid 109 99.1

Excludeda 1 .9

Total 110 100.0


Cronbach's

Alpha

N of Items

.916 2

31

Since the cronbach alpha value is greater than 0.6 therefore the data is reliable enough to perform


4.2 Correlation

Correlations

Celebrity

Endorseme

nt

Attractiven

ess

Expertis

e

Credibili

ty

Trustworthi

ness

Celebrity

Matchup

Product

Brand

Equity

Celebrity

Endorsement

Pearson

Correlation1 .679** .572** .608** .486** .489** .569**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 110 110 110 110 110 110 109

Attractiveness

Pearson

Correlation.679** 1 .545** .703** .612** .540** .677**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 110 110 110 110 110 110 109

Expertise

Pearson

Correlation.572** .545** 1 .588** .531** .526** .549**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 110 110 110 110 110 110 109

Credibility

Pearson

Correlation.608** .703** .588** 1 .643** .683** .742**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 110 110 110 110 110 110 109

Trustworthiness

Pearson

Correlation.486** .612** .531** .643** 1 .543** .639**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 110 110 110 110 110 110 109

CelebrityMatchupPr

oduct

Pearson

Correlation.489** .540** .526** .683** .543** 1 .659**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 110 110 110 110 110 110 109

BrandEquity Pearson

Correlation.569** .677** .549** .742** .639** .659** 1

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

32

N 109 109 109 109 109 109 109

**. Correlation is significant at the 0.01 level (2-tailed).


Since the significance values is less than 0.05 therefore we have sufficient evidence to reject the

null hypothesis Ho, and state that Celebrity Endorsement and Brand Equity are significantly

positive correlated

4.22 Attractiveness


null hypothesis Ho, and state that Attractiveness and Brand Equity are significantly positive

correlated.

4.23 Expertise


null hypothesis Ho, and state that expertise and Brand Equity are significantly positive

correlated.

4.24 Credibility


null hypothesis Ho, and state that Credibility and Brand Equity are significantly positive

correlated.

4.25 Trustworthiness


null hypothesis Ho, and state that trustworthiness and Brand Equity are significantly positive

correlated.

4.26 Celebrity Matchup product


null hypothesis Ho, and state that Celebrity Matchup product and Brand Equity are significantly

positive correlated.

33

4.3 Regression Analysis

4.31 Model Summary

Analysis

Adjusted R square measures the impact of independent variable over dependent variable in the

above, example adjusted R square is 0.631 that means 63.1% impact of independent variable

over dependent variable

4.32 Anova Analysis

34

Model Summary

Mode

l

R R Square Adjusted R

Square

Std. Error of

the Estimate

1 .807a .651 .631 .137

a. Predictors: (Constant), Celebrity Matchup Product,

Celebrity Endorsement, Trustworthiness, Expertise,

Attractiveness, Credibility

ANOVAa

Model Sum of

Squares

df Mean Square F Sig.

1

Regression 3.564 6 .594 31.723 .000b

Residual 1.910 102 .019

Total 5.474 108

a. Dependent Variable: Brand Equity

b. Predictors: (Constant), Celebrity Matchup Product, Celebrity Endorsement,

Trustworthiness, Expertise, Attractiveness, Credibility

Since the significance value is less than 0.05 therefore the impact of IVs on DVs is 46.54%.

4.33 Co-efficient Analysis


Since the significance value is greater than 0.05 therefore we have sufficient evidence to except

the null hypothesis and state that celebrity endorsement has no significance on brand equity

4.332 Attractiveness

Since significance value is less than 0.05 therefore we have sufficient evidence to reject the null

hypothesis and state that attractiveness has 4.3% impact on brand equity

4.333 Expertise

Since the significance value is greater than 0.05 therefore we have sufficient evidence to except

the null hypothesis and state that expertise has no significance on brand equity

35

Co efficientsa

Model Un standardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) .047 .054 .874 .384

Celebrity Endorsement .018 .028 .054 .637 .526

Attractiveness .043 .021 .194 2.032 .045

Expertise .005 .019 .021 .260 .795

Credibility .098 .034 .295 2.898 .005

Trustworthiness .063 .030 .173 2.120 .036

Celebrity Matchup

Product.061 .023 .223 2.693 .008

a. Dependent Variable: Brand Equity

4.334 Credibility


hypothesis and state that credibility has 9.8% impact on brand equity.

4.335 Trustworthiness


hypothesis and state that trustworthiness has 6.3% impact on brand equity.

4.336 Celebrity Match-up Product


hypothesis and state that celebrity matchup product has 6.1% impact on brand equity.

4.4 Demographic Analysis

Statistics

Gender Age Residence Education

level

Shampoo

Brands

NValid 110 110 110 110 110

Missing 0 0 0 0 0

There were total 110 respondents who filled the Questionnaire.

Gender

Frequency Percent Valid

Percent

Cumulative

Percent

Valid

Male 54 49.1 49.1 49.1

Female 56 50.9 50.9 100.0

Total 110 100.0 100.0

36

From the total of 110 respondents, 49% men filled the questionnaire and 51% were women.

Age


Percent

Cumulative

Percent

Valid

18-25 83 75.5 75.5 75.5

26-33 25 22.7 22.7 98.2

34-41 2 1.8 1.8 100.0

Total 110 100.0 100.0

75.5% respondents were aging from the age bracket of 18-25 while 22.7% aged from 26-33 and

the rest of 1.8% aged from 34-41.

Residence


Percent

Cumulative

Percent

Valid

Clifton 20 18.2 18.2 18.2

Defence 39 35.5 35.5 53.6

Gulshan 20 18.2 18.2 71.8

Tariq road 14 12.7 12.7 84.5

Gulistan-e-

Jauhar17 15.5 15.5 100.0

Total 110 100.0 100.0

The 35.5% respondents filling the questionnaire were living in Defence, while 18.2% lived in

Clifton and Gulshan, 15.5% were living in Gulistan-e-Jauhar while the rest of 12.7% were living

in Tariq road.

Education level

37


Percent

Cumulative

Percent

Valid

Bachelors 81 73.6 73.6 73.6

Masters 26 23.6 23.6 97.3

others 1 .9 .9 98.2

7 2 1.8 1.8 100.0

Total 110 100.0 100.0

Mostly the respondents who filled the questionnaire have done their bachelors while 23.6%

respondents have undergone with their masters’ degree. While only 7% were others.

Shampoo Brands


Percent

Cumulative

Percent

Valid

Loreal 25 22.7 22.7 22.7

Dove 13 11.8 11.8 34.5

Pantene 5 4.5 4.5 39.1

Clean & Clear 7 6.4 6.4 45.5

Head &

shoulders29 26.4 26.4 71.8

Garnier 3 2.7 2.7 74.5

Others 28 25.5 25.5 100.0

Total 110 100.0 100.0

Majority of 26.4% respondents used Head & Shoulders, respondents using other than the

mentioned shampoo brands were (others) 25.5%. People using Loreal were 22.7%, 11.8% used

Dove, 4.5% used Pantene, 6.4% used Clean & Clear, 2.7% used Garnier.

38

5.0 Conclusion

The research depicted that all the independent variables which are Expertise, Attractiveness,

Credibility, Celebrity Match-up Product and Trustworthiness are significantly positively

correlated with the dependent variable which is Brand Equity.

The respondents have positive opinion about the attractiveness of the celebrity. Respondents

think the credibility of the celebrity does matter also trustworthiness is an important element

when making a decision to buy a brand with celebrity endorsement.

Moreover through the findings we come to the conclusion that although all the independent

variables have positive correlation but only Attractiveness, Credibility, Celebrity-Match up

Product and trustworthiness has an impact on Brand Equity.

5.1 Recommendations

1. For the organizations to see an adjustment in brand value they should ought to pick the

celebrity carefully before contracting for the underwriting in light of the fact that the they can

help to make and authorize the brand Image.

2. Engaging quality is one of the vital developing that has an effect on Brand Equity so the

celebrity ought to be alluring to have an effect on brand value.

3. The organization ought to know regardless of whether the purchasers believe the big name

or not on the grounds that reliability is an essential variable.

4. Validity ought to be kept as a noteworthy variable as purchasers incline toward more

trustworthy celebrities.

5.2 Area of Further Research

The zone where there ought to be more research which the study proposes are in the fields of

publicizing and advertising where the analysts can investigate more segments which impact the

39

effect of celebrity support on brand equity. Celebrity Endorsement is a suitable choice of

exploration and whether it is attainable to contribute such a lot of cash on popular big names.

References

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41

AppendicesSurvey questionnaire

The purpose of this survey is to understand “The impact of celebrity endorsement on brand

equity in Shampoo brands”. This research is based in Karachi and for academic purpose only and

information will be kept confidential. Respondents valuable time to answer the below questions

will be much appreciated. Thank you.

PART A

Demographics (Please Tick in the following blanks)

Gender: Male____________ Female__________

Age: 18-25______, 26-33______, 34-41______, 42-49______, 50+_______

Residence: Clifton______, Defence______, Gulshan-e-Iqbal______, Tariq Road______,

Gulistan-e-Johar______.

Educational Level: Bachelors______, Masters_______, PhD______, Others_______

What shampoo brand do you use?

1. Loreal

2. Dove

3. Pantene

4. Clean & Clear

5. Head & Shoulders

6. Garnier

7. Others

42

PART B

SA: Strongly Agree A: Agree N: Neutral DA: Disagree SD: Strongly Disagree

Questions SA A N DA SD

Celebrity Endorsement (Independent Variable)

Q1: I remember a shampoo brand just because celebrities

are endorsing it

Q2: I buy a product just because the celebrities are using

it.

Q3: I think celebrity endorsement is an important factor

when I make my decision.

Attractiveness

Q4: I buy a product based on the attractiveness of the

celebrity.

Q5: Attractiveness of celebrity endorsers is very

important.

Expertise

Q6: If the celebrity endorser is knowledgeable, they can

trigger my purchase to their endorsed shampoo product.

Q7: If the celebrity endorser is qualified, they can trigger

my purchase to their endorsed shampoo product.

Credibility

Q8: Celebrity delivers what it promises in shampoo

brands

43

Q9: The celebrity has the name you can trust.

Q10: the endorsed celebrity reminds me of someone

who’s competent and knows what he/she is doing.

Trustworthiness

Q11: Dependable celebrity endorsers can trigger my

purchase to their endorsed shampoo products.

Q12: Reliable celebrity endorsers can trigger my

purchase to their endorsed shampoo products.

Q13: Sincere celebrities can trigger my purchase to their

endorsed products.


Q14: The endorsed celebrities are bad fit for the shampoo

brand.

Q15: Not logical for the celebrities to endorse the

shampoo brand.

Brand Awareness

Q18: I am aware of the brand because of celebrity

endorsement.

Q19: I can recognize the brand because a famous

celebrity is endorsing it.

Brand Image

Q20: Celebrities’ endorsement increases the value of their

endorsed shampoo brands.

Q21: Celebrity endorsers’ image and value increase their

endorsed shampoo product’s image and value.

Brand Relation

Q22: Do you feel correlated with the shampoo brand with

celebrity endorsement?

44

Q23: I trust a shampoo endorsed shampoo brand.

Brand loyalty

Q24: I feel loyal with a shampoo brand which has

celebrity endorsement

Q25: It is likely that celebrity endorsed shampoo brand

would be my first choice when considering the purchase.

45

Documents

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