1

CHAPTER I
INTRODUCTION
1.1 Background of the Research
The use of celebrities in advertisements has become more prevalent in the recent
years. Now a days, many companies spend a huge amount of money per year on celebrity
endorsement in order to build up brand image and create positive awareness of their
products and brands. Marketers believe that the use of celebrities is a good technique for
persuading their target customers that would also help to increase the sales revenue for
their companies. From magazines to TV advertisements, from soaps to luxury goods,
celebrity- endorsed products have penetrated in almost every aspect of daily life
consumption. Firms, in the modern days, believe that the power of brand lies in the mind
of the target customers and their experience with the brand that they have faced directly
or indirectly. Famous endorsers appear in approximately 25 percent of all kinds of
television commercials to promote different products and brands, and roughly ten percent
of advertisers budgets are spent on the use of celebrities (White, Goddard, & Wilbur,
2009). This phenomena shows the increasing importance of celebrity endorsements in
advertising and promoting the products in order to deliver positive message to
consumers, to achieve the best result.
The trend of using celebrities for promotion of products has been very successful
abroad. Celebrities endorsing a brand is a way to take emotional advantage of the craze

that celebrities have among their fan followers. Global brands like Nike, also use
celebrity endorsement technique to appeal to their customers. Indian celebrities like
Sachin Tendulkar, Amitabh Bachhan, etc. have been selected for the promotion of various
products. In 2010, Indian firms noted that a clear market segment with an idol for
endorsement has a significant impact in the minds of consumers. Because celebrities
generally have higher image, even the less valued products tend to make an impact on the
consumers.
In the context of Nepal, Indian culture plays a major role, since the two countries
share an open border with similar culture. As seen, in case of Nepal Indian celebrities are
used to endorse products in the Nepali market. Voice editing is used for advertising
products that show Indian celebrities the brands and products. This is usually the trend
here because it is cheaper. However, Nepali celebrities are also seen promoting various
products. For instance, Rekha Thapa is promoting UTL and Paras Khadka is Promoting
Clinic Hair Oil. Other celebrities like Sugam Pokharel, Haribansha Acharya and Madan
Krishna have also been endorsing various products. In addition to this, the Nepali firms
dont seem as concerned about how much influence these celebrities have on the
consumers. As stated in an article which was published in the magazine New Business
Age in April 2015, it is found that the one of the reasons celebrities endorsers dont get
much priority is because celebrities in Nepal do have a strong fan base. In comparison to
international celebrities, the Nepali celebrities dont have enough fan craze.
The writer also states that another reason for such negligence is because of the
fact that celebrity endorsement in Nepal is cheap in the sense that celebrities in order to
keep up with their celebrity lifestyle and earn money, are ready to accept any type of

opportunities that come their way. So, appearing in any kind of advertisement has
degraded the value of the endorsing celebrities.
Another reason the writer points out is that, the advertising agencies have failed to
make suitable selection of celebrities. Although there are celebrities that have gained
respect in the Nepalese society, like Anil Shah, Dr. Bhagwan Koirala, advertisers have
not yet thought of using them as endorsers. So, in conclusion, the writer says that if
marketers are able to correctly identify the target segment and utilize the most appropriate
icon, celebrity endorsement in Nepal has a huge scope.
In this context, if consumers are able to relate themselves with the endorsing
celebrity, attitudes of consumers towards the particular brand can be enhanced. However,
as found by Byrne & Whitehead, it is not clear whether it leads to a repetitive purchasing
behavior and brand loyalty in customers.
1.2 Problem Statement
Many researches have been done regarding celebrity endorsements and brand loyalty
separately. However, there is little research done on whether celebrity endorsement has a
positive effect on creating brand loyalty. We cannot say in exact terms whether the
prevalent use of celebrities as endorsers in advertising has an effect on creating brand
loyalty in Nepal. Thus this research, aims to study the connection between use of
celebrities and its effectiveness in creating brand loyalty in advertising in context people
living in Kathmandu.

1.3 Objectives of the Research

The main objectives of the study have been stated below:

To examine the relationship between celebrity endorsement in advertisement and

brand loyalty.

To examine whether physical attractiveness, source credibility and celebrity

congruency of the endorsed celebrity has a positive impact on brand loyalty.

To examine which dimension of the endorsed celebrity greatly affects the customers
loyalty towards the brand.

To study the moderating effect of demographics on the customers with regards to

celebrity endorsement.

1.4 Significance of the Research

So far, no research has been done in Kathmandu to know about the impact of
celebrity endorsement. This research aims to study the effect of celebrity endorsement on
the attitude and buying behavior of customers and also highlights the characteristics of
celebrities that mostly affect the buying behavior. The results of this research will be
helpful for marketers to understand what strategies related to celebrity endorsement
should be adopted so that they can carry out effective marketing strategies to appeal to a
greater number of audience. Also, this research will serve the need for future research to
gain an in-depth knowledge that contributes to managerial implications and to other
researchers as well.

CHAPTER II
REVIEW OF LITERATURES
2.1 Introduction
Celebrity can be defined as a TV star, a singer or a movie star or any individual
who is successful in the world of business, art, sports, entertainment, politics, and the
military (McCracken, 1989). In an endorsement context, celebrity is an impersonal
message source, whose characteristics including personal attributes like attractiveness,
power, or credibility, enable the endorse to affect the consumer. As stated by Byrne,
Whitehead & Breen (2003), credibility refers to the knowledge, skill and expertise related
to the product/s, attractiveness refers to the likeability, familiarity and similarity of the
celebrity and power enables the endorser to affect the consumer.
The meaning of many advertisements is to serve as a social approval message,
which merely encourages people to respond by adding intangible pressure on them,
because the endorsers in advertisements are appealing to our emotions and thoughts.
Even with the increasing trend, advertisers need to focus on celebrity endorsement as an
alliance of two brands: the product and the endorser.
So, the choice of celebrity also plays a vital role in projecting a suitable brand
image and enhancing that image among the consumers. The impact of endorsement on
the consumers should be evaluated simultaneously in order to ensure that an impact has
been made on the targeted costumers and that it will ensure brand loyalty in the long run.

So, marketers need to make a careful selection of celebrities because celebrity

endorsement is very expensive and the wrong selection could lead the whole
advertisement campaign to collapse. Due to this, advertisers try to hire those celebrities
who are not only attractive (Baker and Churchill Jr. 1977) but also those that are credible
(Sternthal, Dholakia et al. 1978). Also, advertisers look for a proper match-up between
the celebritys personality and products attributes. So when all these attributes align, they
send a positive message to the customers and leads to the development of favorable
perceptions about the brand (Michael 1989, Ohanin 1991).
Marketers promote celebrity endorsement in their advertising mainly as a way to
increase brand loyalty. Studies have shown that celebrities endorsing a company
or brand can greatly increase consumers' awareness of an advertisement, capture
their attention and make the advertisement memorable. Additionally, when a
celebrity endorses a company, it tells the consumer that the company is reputable,
has good products or good customer service and is a sound company. However, a
study done by Jacoby and Kyner (1973) found that brand loyalty consists more
than just physical purchase and suggested that the traits like biasness, behavioral
response, existence of alternative brands, psychological condition in decision
making and evaluation, etc. may affect consumer loyalty.
As found by Till & Busler (2000), an inherent fit or consistency between a
celebrity and product leads to the perfect match between the endorsement and purpose of
celebrity endorsement. Also, it was found that customers might pay more attention to
celebrities presented in the advertisement rather than the actual product endorsed. So,
when customers are confused whether they like the celebrity better or the product, it
creates a paradox. As a result, marketers face a challenge in making customers more

focused on the product than the celebrity endorsed. So it is difficult to say that celebrity
endorsement will lead to stronger brand loyalty.
As defined by Friedman and Friedman (1979), a celebrity endorser is an
individual who is known by public () for his or her achievements in areas other than
that of the products class endorsed. It is found that while using celebrity endorsement,
famous people are given more attention and they have a greater impact on loyalty of
customers.
In the study carried out by Zafar and Rafique (2012), who are scholars at
International Islamic University Islamabad, Pakistan, they have aimed at investigating the
impact of celebrity endorsement based on physical attractiveness, source credibility and
congruence of celebrities on customers brand perception and purchase intention. Using
questionnaire for data collection, the researchers found that celebrity endorsement has a
reasonable impact on customers attitude and purchase intentions. They also found that
endorsing celebrities not only come out as an influential factor but also a casual factor
and results in higher sales for companies and organizations. The impact of celebrities was
found to be so influential that if customers found a favorable match between celebrity and
the endorsed product, they would instantly purchase the product while the features of the
product itself becomes only of secondary importance.
Munyau and Mwirigi (2013) have explored customer loyalty as a bi-dimensional
perspective where they have explored the relationship between customer loyalty towards
a product and customer loyalty towards a celebrity in context of Kenya. With the
configuration of the two dimensions, the authors have determined the subsequent effect
resulting from the extent of the two aspects. This research not only tried to identify the
perception of customer loyalty but also the difficulties involved in selecting a celebrity
endorser. The researchers found that customers are influenced by celebrities to only a

certain extent, while the remaining factors affecting customer perception included factors
like product quality, influence from peers, and attitude towards the product. Also, they
concluded that before deciding on product- celebrity match-up, the degree of loyalty
towards a celebrity and a product should be studied separately.
In an empirical study carried out by Aertoglu, Catli & Korkmaz (2014), tested
whether the source credibility affects the purchase intensions among young consumers in
Turkey. The source credibility measured three aspects including attractiveness,
trustworthiness and expertise. They also measured the perceived credibility differences
between the celebrities endorse and the spokesperson. The results of the study showed a
positive relationship towards purchase intension of consumers with regards to the
credibility dimensions for both celebrity endorser and spokesperson.
Pui Yi & Priscilla (2012) conducted a research to find out the effects of celebrity
endorsement on consumer purchasing intentions of apparel products in Hong Kong. They
carried out a quantitative research to investigate whether celebrity being an expert or the
trustworthiness of the celebrity have the most impact on the purchasing intentions
regardless of the gender. It was found that females and males had different ways of
perceiving celebrity endorsement. Females seem to prefer celebrity attractiveness over
other characteristics while, males perceived trustworthiness and the most important
aspect in a celebrity that would affect their purchasing intensions. It was also found that a
good-looking celebrity meant attractive and trustworthy but not an expert to the female
consumers. On the other hand, male consumers thought that a good-looking celebrity was
trustworthy, attractive as well as an expert. However, female consumers perceived a
plain looking celebrity as an expert in the brand they endorsed.
Mukta Dengra found that in case of Indore city, younger people were more
influenced by celebrities and they preferred the brand which had their favorite celebrities

endorsing it. The research was conducted based on both primary as well as secondary
data and the data collected were mainly from the people falling under the age group of
thirteen to forty years of age. The research was conducted in the sectors of apparels,
cosmetics and footwear. The researcher found that people get motivated to buy products
if they feel a connection between the celebrity endorsing a particular product and
themselves. It was also affected by the quality factor where, it was found that people
perceive a product as a high quality superior product if it is endorsed by a famous and
high profile celebrity and vice versa.
Dr.Puja Khatri carried out a research of celebrity endorsement as strategic
promotion to study the market situations. It was found that use of celebrities in
advertising does not directly influence sales but creates a buzz and make the consumers
feel better about the product resulting in the purchase of the product by delivering what is
expected by the consumers.
Boopathy N & Chaudhari (2013) carried out an exploratory research to find out
about the impact of advertisement featuring celebrities on children and its consequent
effect on the purchasing behavior of parents as a result of impact on the children. A
standard questionnaire was used to collect data from families with working parents. The
researchers found a significant difference between the factors that influence children and
parents. The study concluded about the importance of endorsing the right type of
celebrities for the brands because celebrities tend to have a greater impact on the younger
generation, and as a consequence of this, parents were influenced by their children to
purchase a particular brand.
Kausar Saeed conducted a descriptive research to understand the impact of
celebrity endorsement for the fast moving consumer goods (FMCG) in the context of
Pakistan. Consumers attitude toward celebrity endorser was measured with the help of a

10

multi-item scale was used. The researcher mainly focused on two habib FMCG products
that were manufactured and sold in Pakistan, and one FMCG product that was imported
from India. The results of the research showed that a weak relationship existed between
effect of advertising on purchase intention and preference of celebrity endorsed products.
However, the results showed a significant relation between the use of the
endorsed product by the celebrity and encouragement towards buying the product.
Trustworthiness and attractiveness had major roles to play in deciding the quality of the
product. Overall, the study showed that consumers attitude towards the brand and
advertisement have a significant role to determine their purchasing intensions of a
particular brand.
Anjum,et.al. (2012) attempted to know the impact of celebrity endorsement on
consumers and on sales of those companies that endorsed celebrities. Also, the
researchers tried to find out the reasons behind companies and organizations opting for
celebrity endorsers. Using both primary and secondary data for testing hypotheses, it was
found that companies are making use of celebrities for endorsing their products for
creating brand equity. It was also found that, sales of these companies had boosted as a
result of celebrity endorsement. The study concluded that companies were more into
celebrity endorsement because they wanted to enhance the image of their products, create
brand awareness among their customers, and increase their market share as celebrities
have a positive impact on not only customers but also the companies and their brands.
Roozen (2010) conducted a two part research, where he first made an analysis for
product and celebrity match-up and secondly, made a comparison between the celebrity
endorsed advertisements with the one with no celebrities. The result was that,
advertisements with celebrities were more effective in conveying the intended message.
Since the research was done to know the effect of celebrity endorsement on both high end

11

and low end products, it was found that for both low-end and high-end products,
advertisements with no celebrity had higher impact on the attitude and purchase behavior
of consumers. It was also found that product-celebrity match-up was only of secondary
importance depending on the type of product being endorsed. However, the research was
only limited to young female celebrity endorsers, so this limited insights and knowledge
that was derived from the research.
Shahrokh and Arefi (2013) aimed at analyzing and identifying the factors that had
the most influence on the effectiveness of celebrity advertising. The research mainly
focused on the credibility part of celebrities, and found that attractiveness of celebrities
trustworthiness was the one and only factor that has influence on credibility. Besides this,
the researchers also found that the factors that mostly affected the effectiveness of
advertising were attractiveness of the celebrity, credibility and fit between celebrities and
product.
Zhao (2004) examined different attributes of celebrity spokespersons in
advertising to analyze the various attributes that affected the consumers attitude towards
certain advertisement and their future interest after being exposed to those advertisements
where the celebrities were being featured. Results showed that attitude towards a product
and future interest in those products are highly determined by the perceived expertise and
identification with the celebrity. It also showed that future interest is significantly
determined by increased credibility but it had no significant effect on attitude towards the
ads. While increased attractiveness showed significant effect on attitude towards the ads,
it had no effect on the future interest towards the products or services that people would
have.
Ahmed, et.al. (2014) carried out a research to find out about the effect of
credibility of endorsed celebrity on the buying intensions of Pakistani students. This

12

research also tried to see if the experience of the celebrity with the brand they are
endorsing affected consumers. The research found that celebrities had a significant
impact on the consumers buying behavior.
A study carried out in business markets by Canning & West (2006) found that in
business to business markets, the credibility and match- up of celebrities and consumers
are related to the non-physical aspects, so factors related to celebrity endorsement needed
some modifications before carrying out the research.
Jayanthi Prasad (2012) conducted an experimental research and found that
consumers perceive a brand or a product as high quality when there is a positive matchup between the celebrity and the endorsed brand. Although, other attributes of a celebrity
have moderate effect on the perception of the consumers purchasing a brand, celebrity/
product match-up had the most significant effect.
A research done by Wai Ying (2012) in Hong Kong for cosmetic industry found
that by using a celebrity who was expert in the product they were endorsing, there was an
increment in the consumer-based brand equity. Also, it was found that there was a
significant difference based on gender of the endorser and also of the consumers.
The research carried out by Parmar & Patel (2014) in Gujrat explores if the
positive impact of celebrity endorsement was more or non-celebrity endorsement. They
found that the celebrity endorsed products were more influential than the non-celebrity
endorsements.
2.2 Constructs of Research Topic
Based on the literatures, it can be said that, brand loyalty comprises of both
attitudinal loyalty as well as behavioral loyalty. The attributes of the endorsing celebrity
has an impact on whether the consumers perceive a brand/product to be favorable. This
further results in the consumers decision to either buy the brand/product or search for

13

other brands. The major constructs of the model have been explained for
operationalization.
2.2.1 Brand Loyalty
Rebekah Bennett and Liliana Bove (2002) recommended that both attitudinal and
behavioral loyalty need to be measured to determine the consumers actual brand loyalty
towards a particular product or service. They pointed out that knowing the proportion of
each type of loyalty is important as customer reactions towards the marketing efforts
would differ according to the factors affecting consistent purchase behavior.
Brand loyalty has been defined as a complex multi-dimensional construct (Dick
and Basu; Ha 1998; Javalgi and Moberg 1997; Mellens et.al. 1996). Early researchers
conducted the study for loyalty either as an attitudinal (Guest 1944) or behavioral
approach (Cunnighram 1956) and is still prevalent today. However, the researches carried
out in the 90s focused on both attitudinal and behavioral dimensions of loyalty as two
distinct but important constructs (Baldingerand Rubinson 1996; Dick and Basu 1994).
2.2.2 Attitude towards the Brand (Attitudinal loyalty)
Attitudinal loyalty is concerned with the affective and cognitive aspects of brand
loyalty that measures brand preference of the customers (Gremler and Brown 1998;
Mellens, Dekimpe and Steenkampe 1996; Traylor 1981). The attitudinal approach to
loyalty stresses the importance of understanding the experiences of the purchase and
combines measures of attitude towards the object such as preference or liking
(Pellemans,1974; Ajzen and Fishbein, 1980; Mellens, Dekimpe and Steenkampe,1996),
commitment (Traylor, 1981; Foxall, 1987; Martin and Goodell 1991; Mellens, Dekimpe
and Steenkampe, 1996), and intentions to (re)purchase (Ajzen and Fishbein, 1980; Oliver,
1980; Shimp and Dyer, 1981; Westbrook and Oliver, 1981; Patterson, Johnson and
Spreng, 1997; Gremler and Brown, 1998).
2.2.3 Purchase Intention (Behavioral Loyalty)

14

Behavioral loyalty is mainly concerned with the observation and study of

repurchase of a brand made by customers among available options (East 1997; Ehrenberg
1988). The behavioral approach believes that consumer behavior is unplanned and
random. It is a function of a favorable repeat purchase pattern (Bandyopadhyay &
Martell, 2007). A number of aspects are said to have an effect on the purchase intentions
of the consumers. A consumer may exercise brand loyalty through a behavioral
perspective by a habitual manner or lack of knowledge about the alternatives (Chaudhuri
& Holbrook, 2001).
2.2.4 The Relationship between Two Loyalties
According to Dick and Basu (1994), the concept of behavioral loyalty is not
enough to determine the underlying factors that contribute towards the creation of brand
loyalty. Therefore, it is argued that brand loyalty is explained most suitably when there is
a combination between behavior and attitude towards a brand. A continuous purchase
behavior of a brand/products along with a positive attitude towards the brand is important
to determine the actual loyalty of consumers. Positive attitude is an important aspect
because it creates a desire for repeat purchases.
Dick and Basu (1994) made distinctions based on different market segments with
regards to the type of loyalty based on the nature of involvement and risk. They stated
that the consumable goods markets have a high rate of switching brands due to the low
amount of involvement and risk related to the products and so, behavioral measures can
be observed without the inclusion of attitudinal aspect. On the other hand, the high
involvement products like durable goods (i.e. furniture, laptops etc) require both positive
attitude and behavioral aspects.
The relationship between the two types of loyalty is thought-provoking because
the attitudinal aspect seems to be the result of consciousness while the other, behavioral,

15

is more related towards an unconscious upcoming. Since consumers minds are complex,
it is important to consider both the aspects to understand the complex process of brand
loyalty.
2.2.5 Physical Attractiveness
As defined by Solomen (2002), physical attractiveness refers to the endorsers
physical approach personality, likeability and similarity to the receiver, which means the
perceived social values of the source. Most studies have shown that a physically
attractive source facilitates attitude change (Baker and Gilbert 1997; Caballero and Price
1984; Chaiken 1979; Horai et.al. 1974; Joseph 1982; Mills and Harvey 1972). A goodlooking celebrity can be used to endorse a product that would promote the attractiveness
factor (Kahle and Homer 1985). The use of attractive people is common practice in
television and print advertising, with physically attractive communicators having proved
to be more successful in influencing customers attitudes and beliefs than unattractive
spokespersons (Ohanian 1991).
2.2.6 Source Credibility: Trustworthiness and Expertise
Source credibility model holds that effectiveness of a message is based on the
perceived level of expertise and trustworthiness the customers have in an endorser
(Sternthal, Dholakia et.al. 1978). Credibility refers to a persons perception of the truth of
a piece of information. It is a multi-dimensional concept that serves as a means for the
receiver of the information to rate the source or transmitter of the communication in
relation to the information.
2.2.6.1 Trustworthiness
As defined by Erdogan (1999) trustworthiness refers to the audiences confidence
in the source for providing information in an objective and honest manner. It is referred
as the honesty and integrity of the spokesperson. It is defined as the extent to which the
endorser is perceived to be believable, honest and dependable. Greater the proportion of

16

these aspects, higher will be the likelihood of the endorser to be selected by the
advertisers (Shimp 2007).
2.2.6.2 Expertise
Hovland, Jannis and Kelley (1953) defined expertise as the extent to which a
communicator is perceived to be a source of valid assertions. Expertise can be defined as
the extent to which the endorser (communicator) is perceived to be knowledgeable,
skillful and experienced. The benefit of using expert endorser is that it enhances brand
recall and positively affects the buying intentions of consumers (Erdogan 1999).
2.2.7 Celebrity/Brand Match-up
Celebrity/Brand Congruency hypothesis states that there should be a match
between the celebrity personality characteristics and brand attributes. As defined by
Erdogan (1999), the extent of successful match-up can be determined by the degree of
fitness between the brand and the celebrity. Michael (1989) states that an advertisement
in which the celebrities and the brand are highly congruent yields to be more influential
and believable.
A study done by Ohanian (1991) revealed that only those celebrities should
endorse products who are congruent and are perceived by the customers as having
expertise and knowledge about the product being endorsed. Also, in a study done by
Kamins (1990), it was found that attractive celebrities are more persuasive when
endorsing products that enhance prettiness, because customers assume that as the product
enhanced the beauty of the endorser, it will be the same for the customers as well.
2.3 Conceptual Framework
After defining the constructs, the conceptual framework has been generated which
shows the relationship between the independent and dependent variables. The effect of
moderating demographic variables have also been generated. The attributes of celebrity
endorsers including physical attractiveness, trustworthiness, expertise and celebrity/brand

17

match-up are the independent variables which will determine whether the consumers will
form a favorable or non-favorable attitude towards the brand. The attitude formation will
further lead to purchasing intentions of the consumers leading to brand loyalty.
Figure 1: Conceptual Framework
2.4 Research Hypotheses

Based on the conceptual framework, two major hypotheses have been framed,
which will be further tested for acceptance or rejection.

H1: There is a positive relationship between celebrity endorsement in advertisement

and brand loyalty.

H2: The demographics have a moderating effect on the consumers with regards to
celebrity endorsement.

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19

CHAPTER III
METHODOLOGY
3.1 Research Design
The research aims to examine the relationship between celebrity endorsement in
advertising and brand loyalty. The research is basically a descriptive study which has
used a correlational study to explain the relationship between the independent and
dependent variables. The unit of analysis is individual as the sample of the research
includes individuals who are exposed to different advertisements and consequently have
varying attitudes and behavior. Also, the research is a field study and involves minimal
interference from the researcher. The time horizon for this study is cross-sectional as it
involves the data collection only at one period of time.
3.2 Sampling
The population of this research is Nepalese people residing within Kathmandu
valley who are influenced by advertisements and celebrity endorsement of the products
featured in those advertisements. For deriving the samples for this study, non-probability
sampling method was used. Precisely, convenience sampling was used for determining
the sample of the research.
3.2 Data Collection
Based on the literatures, a standard self-administered questionnaire was selected
which has previously been tested for reliability and validity. The questions have been

20

formed using a five point likert scale. The data collection was done using both online
surveys as well as the printed forms of the questionnaire.
Some brands and products have been selected on the basis of their popularity and
frequency of exposure in the media considering the fact that they are more familiar and
appealing to the consumers.
3.3 Data Analysis
For the purpose of analyzing the collected data, SPSS was used. In order to test
the reliability and consistency of the questionnaire, Cronbachs Alpha was run. Along
with this, multivariate regression was conducted to check the relationship between
celebrity endorsement and its effect on the attitude of the consumers towards the
endorsed product. Also, single regression analysis was conducted to see the effect of
attitude on the purchase intentions of the consumers.
One way ANOVA was used to determine the effect of moderating variables on the
independent as well as dependent variables separately.

21

CHAPTER IV
RESEARCH RESULTS
4.1 Reliability Test
Table 1: Reliability - Cronbach Alpha

Variables

No. of Items

Reliability
Alpha)

Physical Attractiveness

0.821

Trustworthiness

0.744

Expertise

0.695

Celebrity/Brand Match-up

0.713

Attitude towards Brand

0.815

Purchase Intention

0.711

(Cronbach

As table 1 shows, the different variable groups have met the value required for
determining the reliability. The Cronbach alpha for each of the variables have been
computed with the help of SPSS tool. Among the variables, physical attractiveness,
trustworthiness, expertise and celebrity/brand match-up are the independent variables
which when combined are termed as characteristics of the celebrities endorsing the brand.
These characteristics determine whether or not the consumers have a positive attitude
towards the endorsed brand. This further helps to determine whether the attitude will lead
to consumers intentions to purchase the endorsed product.

22

4.2 Descriptive Statistics

In this section, descriptive statistics regarding factors investigated in the research
are presented. The results have been processed in SPSS and the mean for each of the
variables have been considered for this.
Table 2: Descriptive Statistics

Min

Max

Mean

Std.
Deviation

Physical Attractiveness

220

1 5

3.338

0.80499

Trustworthiness

217

1 5

2.783

0.88293

Expertise

217

1 5

2.572

0.85140

Celebrity/Brand Match-up

218

1 5

2.639

0.70138

Attitude towards Brand

218

1 5

2.794

0.71699

Purchase Intention

218

1 5

2.437

0.76053

Valid N (list wise)

211

Looking at the mean for each of the variables that affect consumers attitude and
purchase intentions, it has been found that on average, consumers perceive the celebrities
endorsing the brand to be physically attractive but lacking other attributes such as
trustworthiness and expertise. Also, on average, consumers feel that there is no match
between the celebrity and the brand they are endorsing.

23

Likewise, the mean scores for attitude and purchase intentions show that
consumers do not perceive the brand positively and are not willing to purchase any
product/service because of the influence of the celebrities endorsing them.

4.3 Correlation Analysis

In the section, correlation analysis is carried out to find out about the relationship
between the variables. Correlation analysis helps to determine the strength of each of the
relationships between the independent and dependent variables. In order to determine the
strength between the variables, the Pearson correlation analysis has been carried out.
4.3.1 Celebrity Endorsement and Attitude towards the Brand
The first relation has been tested between the attributes of the celebrity endorsing
the brand and the attitude of consumers towards that brand as a result of celebrity
endorsement. The result has been shown in the given table.

Pearson Correlation

Table 2: Correlation Analysis- Celebrity Endorsement and Attitude towards the brand
Attitude
towards
Brand

Attractiveness

Trustworthiness

Expertise

Celebrity
match-up

Attitude towards Brand

1.000

0.366

0.294

0.461

0.435

Attractiveness

0.366

1.000

0.487

0.318

0.356

Trustworthiness

0.294

0.487

1.000

0.576

0.532

Expertise

0.461

0.318

0.576

1.000

0.511

Celeb Match-up

0.435

0.356

0.532

0.511

1.000

Sig. (1-tailed)

24

Attitude towards Brand

0.000

0.000

0.000

0.000

Attractiveness

0.000

0.000

0.000

0.000

Trustworthiness

0.000

0.000

0.000

0.000

Expertise

0.000

0.000

0.000

0.000

Celeb Matchup

0.000

0.000

0.000

0.000

The table shows the relationship between attributes of celebrity endorsing the
brand and consumers attitude towards the brand. Based on the results, there seems to be
a significant positive relationship between celebrity endorsement and attitude of
consumers towards the endorsed brand. This means that the independent variables are
positively correlated with the dependent variable.
From the above table, we can see that all attributes of celebrity endorsement have
significant positive relationship with attitude towards the brand. Among the attributes of
the celebrity, physical attractiveness has the highest mean value of 3.338 which indicates
that customers found the celebrity endorsing the brand to be attractive. Physical
attractiveness had a positive correlation of 0.366 which is above the 0.300 range and is
hence not weakly correlated. Similarly, trustworthiness had a positive correlation score of
0.294 which indicates that the celebrity in general had weak positive correlation with
attitude towards the brand. In addition to this, the celebrity expertise and celebrity matchup had the highest positive correlation value of 0.461 and 0.435 respectively for attitude
towards brand. Therefore, all attributes had significant relationship with attitude towards
the brand, celebrity match-up and expertise had the highest correlation value. This
suggests that overall attitude towards the brand is much more affected by expertise and
celebrity match up variable.

25

As said by Cohen (1983) any value ranging from 0.30 to 0.49 in the Pearson
correlation analysis, is termed as having a medium strength in the relationship. In this
regard, it can be said that physical attractiveness and trustworthiness have a medium
strong relationship with attitude whereas, expertise and celebrity match-up have a strong
relationship.
4.3.2 Attitude towards the Brand and Purchase Intentions of the consumers
The second relation is between the attitude formed in the consumers minds as a
result of exposure to the advertisement featuring a celebrity endorsed product and their
purchase intentions.
Table 4: Attitude towards brand and Purchase Intention

Pearson
Correlation
Sig. (1-tailed)

Purchase
Intention

Attitude towards
Brand

Purchase Intention

1.000

0.518

Attitude towards Brand

0.518

1.000

Purchase Intention

0.000

Attitude towards Brand

0.000

The table shows that there is a positive significant relationship between the
consumers attitude towards the brand/product and their purchase intentions. Also, with a
score of 0.518, it can be said that the purchase intentions of consumers are strongly
determined by the attitude they have towards a particular brand/product.
4.4 Regression Analysis
Regression analysis is used in order to determine the pattern of the relationship between
the variables after a relationship has been proved with the help of correlation analysis. In

26

this section, the value of the independent variable is used in order to predict the value of
the dependent variable.
4.4.1 Celebrity Endorsement and Attitude towards the Brand
Table 5: Model Summary

R Square

Adjusted R Square

Std. Error of the Estimate

0.518a

0.269

0.265

0.60389

In this table, the value of R square is considered to indicate how much of the total
variation in the dependent variable i.e. attitude towards brand can be explained by the
independent variable i.e. celebrity endorsement. As seen in the table, the attributes of the
endorsing celebrity is able to explain only 26.9 percent of total variations for attitude
towards the endorsed brand/product. This states that besides the attributes that have been
considered in the research, there are various other factors that can affect the consumers
attitude towards a particular brand/ product.
Table 6: ANOVA- Celebrity Endorsement and Attitude towards Brand

Model

Sum of Squares

df

Mean Square

Sig.

Regression

33.608

8.402

23.457

0.000

Residual

73.784

206

0.358

Total

107.392

210

In this table, the p-value is less than 0.05, which means that there is a statistically
significant relationship between independent and dependent variables of the model. Thus,
the regression model statistically significantly predicts the dependent variable.
Table 7: Correlation matrix- Celebrity Endorsement and Attitude towards Brand

27

Model

Unstandardized
Coefficients

Standardized t
Coefficients

Std.
Error

Beta

(Constant)

0.967

0.206

Attractiveness

0.213

0.059

Trustworthiness
Expertise

Sig.

Correlations
Zero- Partial Part
order

4.695

0.000

0.242

3.629

0.000 0.366

-0.130 0.065

-0.160

0.292

0.063

Celebrity Match-up 0.273

0.076

0.245

0.210

-2.000 0.117 0.294

-0.138

-0.116

0.344

4.657

0.000 0.461

0.309

0.269

0.258

3.590

0.000 0.435

0.243

0.207

This table provides the necessary information for predicting the dependent
variable from the independent variable. It also helps to determine whether the
independent variable contributes statistically significantly to the model. Looking at the
table, it has been found that from among the four major attributes of the endorsing
celebrity, only physical attractiveness, expertise and celebrity/brand match up
significantly contribute to the model, whereas, the attribute trustworthiness does not
make any significant contributions to the model. It shows that trustworthiness has a
negative relationship with a negative beta value.
4.4.2 Attitude towards the Brand and Purchase Intention
Table 8: Model Summary

R Square

Adjusted R Square

Std. Error of the Estimate

0.518

0.269

0.265

0.65290

The table shows the value of R square is 0.269, which means that attitudes the
brand/ product is only able to predict 26.9 percent of the total variations for the purchase
intention that consumers have. This means that, purchase intensions of the consumers are
affected by many other factors besides the type of attitude they have towards the certain
brand/product that have been endorsed by celebrities.

28

Table 9: ANOVA- Attitude towards Brand and Purchase Intention

Model

Sum of Squares

df

Mean Square

Sig.

Regression

33.675

33.675

78.998

0.000

Residual

91.650

215

0.426

Total

125.325

216

In this table, the p-value is less than 0.05, which means that there is a statistically
significant relationship between the variables attitude towards the brand/product and
purchase intention of the consumers. Thus, the regression model statistically significantly
predicts the dependent variable i.e. purchase intention.

Table 10: Correlation matrix- Attitude towards Brand and Purchase Intention
Model

Unstandardized Standardized T
Coefficients
Coefficients
B

(Constant)

Std.
Error

Beta

0.892 0.179

Attitude towards Brand 0.553 0.062

Sig.

0.518

Correlations
Zero- Partial Part
order

4.977

0.000

8.888

0.000

0.518 0.518

0.518

Looking at the table, it has been found that the variable, attitude towards the
brand/product significantly contribute to the model, and is able to significantly predict the
purchase intentions of the consumers.

4.5 One-way ANOVA Analysis

In this section, one way analysis of variance (ANOVA) is used to determine if
there are any significant differences between unrelated independent groups. Here, one

29

way ANOVA has been used to test the significance of the moderating demographic
variables and to determine if there are any significant difference between how the
different groups perceive the brand/product endorsing celebrities that have been featured
in the advertisement.
The demographics include independent groups based on gender, age group,
education level and income level, which have been computed separately with the help of
one way ANOVA in SPSS.

4.5.1 By Gender

df

Mean Square

Sig.

Attractiveness

Between Groups

0.645

0.645

1.002

0.318

Within Groups

1Z39.109

216

0.644

Total

139.755

217

Between Groups

0.858

0.858

1.092

0.297

Within Groups

167.354

213

0.786

Total

168.213

214

Between Groups

1.654

1.654

2.300

0.131

Within Groups

153.865

214

0.719

Total

155.518

215

Between Groups

0.261

0.261

0.528

0.468

Within Groups

105.761

214

0.494

Expertise

Sum of Squares

Trustworthiness

Table 11: One-way ANOVA- by Gender

30

106.022

215

Between Groups

0.077

0.077

Within Groups

111.122

215

0.517

111.199

216

Between Groups

0.041

0.041

Within Groups

125.462

215

0.584

125.503

216

Purchase Intention

Attitude towards
Celebrity
Brand Match-up

Total

0.149

0.700

0.071

0.790

Total

Total

The results from the table indicate that there is no statistically significant
difference between how male and female perceive the celebrities who are featured in the
advertisements for endorsing a particular brand/product. It also shows that there is no
statistically significant difference between how consumers form attitudes about particular
brands and how they decide on buying a certain brand/product.
4.5.2 By Age

Attractiveness

Table 12: One-way ANOVA-by Age

Sum of Squares

df

Mean Square

Sig.

Between Groups

1.435

0.478

0.740

0.529

Within Groups

138.319

214

0.646

Total

139.755

217

3.202

1.067

Within Groups

165.011

211

0.782

Total

168.213

214

Between Groups

8.133

2.711

Within Groups

147.386

212

0.695

Total

155.518

215

Celebrity Match-up

Between Groups

3.926

1.309

Within Groups

102.096

212

0.482

106.022

215

Attitude towards Brand

Between Groups

6.764

2.255

Within Groups

104.435

213

0.490

111.199

216

Between Groups

4.931

1.644

Within Groups

120.572

213

0.566

125.503

216

Expertise

Between Groups

Purchase Intention

Trustworthiness

31

Total

1.365

0.255

3.899

0.010

2.717

0.046

4.599

0.004

2.904

0.036

Total

Total

The result shows that age group has a statistically significant difference between
expertise, celebrity match-up, attitude towards brand and purchase intention. This means
that, different age groups have different ways of thinking and deciding when it comes to
the attributes of the celebrities like expertise and celebrity/brand match-up. This also
states that different age groups form attitudes differently and consequently intend on
purchasing a certain brand/product differently.

32

However, there is no statistically significant difference when it comes to how

consumers perceive the physical attractiveness and trustworthiness in the celebrities.

4.5.3 By Education
Table 13: One-way ANOVA- by Education
Sum of Squares

df

Mean Square

Sig.

Attractiveness

0.260

0.065

Within Groups

139.494

213

0.655

Total

139.755

217

Trustworthiness

Between Groups

1.948

0.487

Within Groups

166.265

210

0.792

Total

168.213

214

Between Groups

5.945

1.486

Within Groups

149.574

211

0.709

Total

155.518

215

Celebrity Match-up

Between Groups

2.803

0.701

Within Groups

103.219

211

0.489

106.022

215

Attitude towards Brand

Between Groups

7.682

1.920

Within Groups

103.518

212

0.488

111.199

216

Between Groups

8.861

2.215

Within Groups

116.642

212

0.550

125.503

216

Expertise

Between Groups

Purchase Intention

33

Total

0.099

0.983

0.615

0.652

2.096

0.082

1.433

0.224

3.933

0.004

4.026

0.004

Total

Total

From this table, it can been seen that there is a statistically significant difference
among the consumers with regards to attitude towards brand/product and purchase

34

intentions. This means that consumers with varying levels of education significantly
differ when it comes to attitude formation and buying behavior.
However, there is no statistically significant difference among the consumers with
different levels of when it comes to the attributes of the celebrities endorsing the
brand/products.
4.5.4 By Income Level

Attitude Celebrity Match-up

towards
Brand

Expertise

Trustworthiness Attractiveness

Table 14: by Level of Income

Sum of Squares

df

Mean Square

Sig.

Between Groups

3.973

0.795

1.267

0.279

Within Groups

132.348

211

0.627

Total

136.321

216

Between Groups

7.721

1.544

2.019

0.077

Within Groups

159.087

208

0.765

Total

166.808

213

Between Groups

7.963

1.593

2.270

0.049

Within Groups

146.611

209

0.701

Total

154.574

214

Between Groups

2.176

0.435

0.876

0.498

Within Groups

103.846

209

0.497

Total

106.021

214

Between Groups

6.398

1.280

2.600

0.026

Within Groups

103.359

210

0.492

Purchase
Intention

35

Total

109.757

215

Between Groups

2.230

0.446

Within Groups

123.264

210

0.587

Total

125.493

215

0.760

0.580

Depending on the level of income, it is seen that there is a statistically significant

difference between the groups in regards to expertise and attitude towards the brand. On
the contrary, even with the varying income levels, there is no statistically significant
difference when it comes to the other attributes of the consumer like physical
attractiveness, trustworthiness and celebrity/brand match-up. Likewise, the way people
tend to purchase the products also remain same even with varying income levels.

36

CHAPTER V
SUMMARY, DISCUSSIONS, IMPLICATIONS AND LIMITATIONS
5.1 Summary of Findings
Based on the above analysis, it can be said that the use of celebrity endorsers in
advertising has a positive significant relationship with the consumers attitude towards the
endorsed brand/product. This further impacts the buying behavior of the consumers.
From among 220 respondents, 56.4% were males and 43.6% were female. The
sample included large number of respondents belonging to the age group (16-30) among
which, 57.8% had bachelors degree and 39% had masters degree for their level of
education. The summary of hypotheses that have been formulated is as follows:
Table 15: Summary of Results

Hypothesis

Sub Hypothesis

Significance

Result

H1: There is There is a positive relationship 0.000

a
positive
between attractiveness and attitude
relationship
towards brand.
between
There is positive relationship between 0.117
celebrity
trustworthiness and attitude towards
endorsement
brand.
in
advertisemen There is positive relationship between 0.000
t and brand
expertise and attitudes towards
loyalty
brand.

Supported

There is positive relationship between 0.000

celebrity match-up and attitude
towards brand.

Supported

Not
Supported
Supported

37

Table 15 # Continued: Summary of Results

H2:
The Age has a moderating effect on demographic
consumers with regards to celebrity
s have a
endorsement.
moderating
effect
on Gender has a moderating effect on consumers with regards to celebrity
consumers
endorsement.
with regards
to celebrity Education has a moderating effect on endorsement
consumers with regards to celerity
endorsement.

Significant for all except

Attractiveness

Level of income has a moderating effect on consumers with regards to

celebrity endorsement.

Significant
for
trustworthiness, expertise,
celebrity match-up

Not Significant

Significant for Expertise

5.2 Discussions
From the analysis of the result collected, we can see that there is a significantly
positive relationship between celebrity endorsement and attitude towards brand. This
indicates that using celebrity endorsers in advertising has some significant impact on the
respondents brand loyalty behaviors. The impact of celebrity endorsement is seen in both
attitudinal as well as behavioral aspects of the consumers who are exposed to
advertisements featuring celebrity endorsers. Since, there is a positive correlation among
the attributes of the endorsing celebrity and consumer loyalty, we can say that endorsed
products have a better chance of influencing purchase decision of the customer than nonendorsed brands.

38

The research has been conducted based on brands and celebrities that are often
seen being featured in advertisements, rather than specific brands or products, which is
the case in most of the previous studies. The previous studies have conducted their
research focusing on either attitudinal loyalty or behavioral loyalty. Although researchers
in their studies found that consumers can have a favorable attitude towards a particular
brand and they may be willing to purchase it if they found a match between the celebrity
and the endorsed product/brand, it was found that consumers are also influenced by other
factors like product quality, influence from peers, price, etc.
Researches carried out previously found varying results in different parts of the
world. For instance, studies carried out in Pakistan showed a weak relationship between
the consumers attitude and advertisement featuring celebrity endorsers for FMCG
products (Kausar). However, another study showed that non-celebrity advertisements
were more effective than celebrity advertisements for both high-end and low-end
products (Roozen, 2010). Also, researchers found that physical attractiveness and
expertise had more influence on the consumers than other attributes of the celebrity
endorsers.
In this regard, the research shows that consumers are mostly influenced by the
advertisements if they feel there is a match-up between the celebrity and the endorsed
brand. However, on the whole, it was found that consumers do not perceive the celebrity
endorsers to be trustworthy. This may have happened because of the fact that celebrities

39

are not considered as role models by the people in Kathmandu Valley. It is also due to the
reason that celebrities are willing to endorse any type of product regardless of whether it
matches with their personality or not. This also shows the weakness of the advertising
agencies to make the suitable selection of celebrities for brand endorsements.
5.3 Implications
The current study could have some crucial implication for marketers and
advertisers. First and foremost, the study could have strong marketing implication. Most
organizations are directed towards creating behavioral loyalty among their consumers
with little or no consideration towards creating attitudinal loyalty. Marketers and
advertisers are mostly focused on selling their goods and services but have less regards
for how their target consumers perceive the goods and services they are providing. Due to
this, most marketers are unsuccessful when it comes to selling their products, creating
brand loyalty among the target consumers and sustaining for the long run benefit.
Similarly, the inappropriate selection of celebrities for product/brand endorsement
is seen as a major constraint in the Nepalese markets. The major problem seen in Nepali
advertisements is the in congruency between the celebrity and the brand they are
endorsing. The trend in advertisements is that advertisers tend to select celebrities with no
prior research of whether the celebritys personality would match the brand name or the
product that they are going to endorse. So, using the model of this research, marketers
and advertisers could conduct surveys to understand which factor of celebrity endorser is

40

the most influential for consumers attitude towards the brand and purchase decision.
Hence, different industries could have different sets of attributes that influence
consumers attitude and purchase behavior.
Secondly, the results from the current research provides strong validity to the
theoretical model. The findings from this study provides further support to the previous
studies. However, the current study provides a different result in terms of trustworthiness
of the celebrity. The respondents in the study generally found the celebrities not being
trust worthy which is different from the findings of previous studies. This suggests that
while endorsed brand perform better in general, customers dont have much trust on the
celebrity used in advertisement. Such distrust could result from a number of reasons
including the fact that people generally are skeptical of celebrities endorsing the brand.
5.4 Limitations and Future Lines of Research
With the present research, non-probability method of sampling was used. The data
represented in the study has limited implications since the sample is based on
convenience sampling method. The use of non-probability method may limit the
generalizability of the results. Similarly, the relatively small sample size of the research is
another limitation. Since the research is based on non-probability sampling, large number
of sample is required in order to determine the reliability and validity of the study.
Another limitation of the study is that only those variables were included in the model
which were considered to fulfill the objectives of the model.

41

In order to assist future researches based on similar fields, a comparative study

could be conducted between the developed and developing countries by replicating the
current model to make a study of the consumers view point towards celebrity
endorsement. This can be helpful to both marketer and advertisers to understand their
markets better in order to increase customer loyalty in the long run.

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45

APPENDIXES

Appendix A: Questionnaire

46

47

48

Appendix B: Frequency tables

Frequency: Gender
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Missing

Male

123

55.9

56.4

56.4

Female

95

43.2

43.6

100.0

Total

218

99.1

100.0

System

.9

220

100.0

Frequency

Percent

Total
Frequency: Age

Valid Percent

Cumulative
Percent

Frequency:16-30
Education185

.5

.5

.5

84.1

84.9

85.3

Missing

31-45
26 Frequency
11.8 Percent11.9 Valid Percent
97.2 Cumulative
Percent
46-60
6
2.7
2.8
100.0
Intermediate
3
1.4
1.4
1.4
Total
218
99.1
100.0
Bachelors 2
126
57.3
57.8
59.2
System
.9

Total

Masters

Valid
Valid

Missing
Total

220 85

100.038.6

39.0

98.2

Ph.D

.9

.9

99.1

Others

.9

.9

100.0

Total

218

99.1

100.0

System

.9

220

100.0

49

Frequency: Monthly Income

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Missing
Total

Below 10,000

101

45.9

46.5

46.5

10,001-20,000

22

10.0

10.1

56.7

20,001-30,000

31

14.1

14.3

71.0

30,001-40,000

13

5.9

6.0

77.0

40,001-50,000

17

7.7

7.8

84.8

Above 50,000

33

15.0

15.2

100.0

Total

217

98.6

100.0

System

1.4

220

100.0