406-2nd ICBER 2011 PG 2213-2226 Advertising Models

2nd

INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2nd

ICBER 2011) PROCEEDING

2213

DETERMINING ADVERTISEMENT’S EFFICIENCY:

CELEBRITY ENDORSEMENT VERSUS NON-CELEBRITY

MODELS

Behnam Forouhandeh

Hadi Nejatian

Kulandayan Ramanathan

Behrad Forouhandeh

Abstract

Purpose – The purpose of this paper is to study and compare the effectiveness of celebrity

endorsements versus non-celebrity endorsements based on both advertising models and celebrity

endorsement models. This research provides great amount of evidences to retailers based upon

the celebrity endorsement models and its comparison with non celebrity endorsement models to

encourage them to employ celebrity endorsements strategy in their ads rather than other

endorsement strategy like non celebrity endorsement. Moreover, the findings will be based on

using some adverting models such as AIDA which presents profound knowledge inside the

customers’ mind in which is established upon the celebrity endorsement models.

Design/methodology/approach – A theoretical conceptual review and analysis focuses on

adverting models, comparison of celebrity endorsement strategies against non celebrity

endorsement strategies. The analysis is discussed and applied to the celebrity endorsement

adoption strategy based on commercial efficiency.

Findings – The paper argues that in order to successfully communicate with the audience,

retailers and advertisers need to increase the efficiency of their advertisements via adoption of

the celebrity endorsement strategy rather than a non celebrity endorsement strategy.

Research limitations/implications – this research work is a conceptual study and the proposed

method of advertisement suggested based on the other scholars’ research work. Therefore,

2nd



2214

further research with detailed empirical analysis from various contexts is necessary to further

improve the usefulness of the proposed research work.

Originality/value – This paper introduces a new way for adopting an advertisement strategy

from a new perspective. This research work should be a useful approach for both academic

researcher and practitioners.

Keywords: Advertising, Celebrities, Attitude, Endorsement

Paper type– Conceptual paper

2nd



2215

1. Introduction:

One of the most significant matters which are being considered by firms and enterprises

especially the multinational corporations is grasping how consumers all around the globe make a

response to global marketing activities (Ferle & Choi, 2005). In a manner that corresponds with

truth, there are plenty of tensions and pressures that impose on the advertisers for achieving to

the firm’s financial objectives (Ferle & Choi, 2005). Paying attention to the financial attainment

point by advertisers plays a significant role via constructing the international brands that

consumers can recognize based on the global scale (Ferle & Choi, 2005). Consequently, by

appearance of the mass media and internet, advertisers tried to take such an advantage to use

different strategies such as endorsement advertisement to promote and enhance brand’s equity

(Lin, 1993, La Ferla, 2001).

Based on the Liu, Huang and Minghua research work (2007), one of the most effective ways of

advertising is using an endorser to promote a brand. Scientific works and investigations reveal

that a prominent endorser strategy can assist the customers to recall both product and brand

(Friedman & Friedman, 1979). In addition to the above statement, not only it has constructive

influence in terms of consumers’ apprehension toward the accredited brand but also, it would

doubtlessly have plenty of impacts on customers’ attitude toward another brand’s product

(Kamins, 1989; Petty & Schumann, 1983).

Moreover, this type of advertisement strategy has lots of positive effects on customer buying

behavior and preference toward the endorsed brand (Bower & Landreth, 2001; Kamins, 1989;

Lafferty, Goldsmith & Newell, 2002). In accordance with Liu, Huang and Minghua (2007),

endorsers composed of four types as follow: celebrity, CEO, expert and typical consumer. All of

the stated characters as the endorsers are sound reasoning to consumers based on their own ways

such as product type and involvement (Freiden, 1984; Petty et al., 1983).

Presently, endorsement of celebrities in advertisement has become one of the most influential

ways of merchandise advertisement. Looking quickly through the TV ads, online programs and

some of the online social networks’ advertisements like facebook; consumers will encounter

plenty of endorsed advertisements ranging from celebrities to experts and typical consumers.

2nd



2216

Tyra Banks for retailer Victoria’s Secret to Garth Brooks for Wal-Mart and LeAnn Rimes for JC

Penny to Trading Spaces’ Paige Davis for Home Depot are some of the examples (White,

Goddard & Wilbur, 2009).

In an approximate manner, 25 percent of the mass media commercials contain some of the most

well-known endorsers that advertise some brands (Erdogan, Baker & Tagg, 2001). Statistically

speaking, ten parts in every hundred of the firms and enterprises budget are being employed as

the payment to the celebrity endorsers (Agrawal & Kamakura, 1995). To sum it up, firms and

enterprise that located in USA spent large amount of their financial resources, about two to three

billion dollars on celebrity advertising (White, Goddard & Wilbur, 2009).

2. How Advertising Works: Models of advertising

Marketing mix includes of four components as below: product, place, price and promotion that

the last one contains variety of methods to reach to the present and future customers (Glowa,

2002). Statistic reveals that an American family turn on the television for six hours a day that it

pictures 30,000 TV advertisements in a year (Ogilvy, 1985). Thus, this point indicates that an

advertisement is an important tool since it is the primary communication tool that retailers have

with their potential customer (Witt, 1999).

Glowa believes that commercial program works since they try to create an effectual demand and

desire in the audience mind by watching, reading or listening to them. One of the critical factors

that lead a retailer to be successful in marketing campaign is finding out about the psychology of

the buyers as Gary Austin Witt (1999, p. 3) mentioned in his book as follow: “If you don’t

capture the buyer’s mind, you won’t capture his or her money.” In this essence, the effectiveness

concept in advertisement stems from the liaison that exists between brand and customer in terms

of awareness, intention and so on. In this regard, majority of the promoters perpetually make an

effort to explain and model how commercial advertisement works and in order to reach to their

target they strive to select the meaningful communication objectives (Bovee, Courtland, Thill,

Dovel & Wood, 1995).

2nd



2217

In the era of the intensity rivalry, a good commercial campaign can’t make a low quality level

product successful however; a poor advertising campaign can ruin a high quality product (Witt,

1999). The models that presented below shows the learning process that needs to be taken by

consumers via some sequential and non sequential manner to come to the purchasing process.

AIDA hierarchical model and learn-feel-do model show how advertisement grab customers’

attention at the first stage and lead him or her to the last stage which is purchasing intention. For

example, in the learn-feel-do model, at the initial step customer learns from the commercial and

at the next step there would be some feelings that would be create in the customer mind as a

question and at the final stage customer tries to take some actions such as purchasing intention

(Bovee et al., 1995).

There is also another influential model named as AIDA that in an original manner known as

DAGMAR, an acronym for Defining Advertising Goals for Measured Results by Colley (1984).

This model was constructed around four levels of communication that results as follow:

awareness, comprehension, conviction, and action (Glowa, 2002). This model also used in the

hypermedia with different procession name as below: Attention or Awareness, Interest, Desire

and Action (Kleindl, 2003). The AIDA procedure shows that at the initial level the attention of

the target receiver should be gained, in the next step the interest that created in goods or services,

desire generated and ultimately some action taken from the targeted consumer (Kleindl, 2003).

Figure 1: AIDA hierarchical model Hansen, Source: Glowa, 2002

The AIDA procedure is based upon the attitude models that means the consumer initially think

about an object (cognition), then expand his or her feelings (affect) and eventually become

involved in some form of behavior (conation) (Li & Leckenby, 2004). Meanwhile, there have

been plenty of models that proposed by different researchers to modify the old models. To

Awareness

Interest

Desire

Action

2nd



2218

exemplify, Robertson (1971), tried to alter the learn-feel-do sequential model to the hierarchy of

effects class of models, increasing its flexibility and identifying the learning factor as a

significant point. This model proposes that consumers have the capability to acquire knowledge

from their former experience and shift from the first level which is awareness to the last pattern

which is named as the purchasing behavior.

Figure 2: non-standard sequences Robertson’s model, source: Robertson, T. S. (1971)

As far as stated by Mehta and Fitzwilson (2001), the group of people who find the advertisement

more favorable based on their attitude will have more recall of that specific brand. As a result,

some of the ads have direct influence on the customers that lead them to take purchasing action

while some of the advertisement influence indirectly on customers’ purchase intention through

attitude toward brand and brand recall (Mehta & Fitzwilson, 2001) Studies and researches show

that there is a strong positive relationship between attitudes toward brand that accordingly will

influence on the customer purchasing intention (Batra & Ray, 1986). Advertisement efficiency

mostly rely on the consumers’ interest in advertisement as well as their attitude toward ads itself

(Mehta & Fitzwilson, 2001)

As a result, All the above models show the process of advertisement influence on customers

from first level till last one which is named as taking action or purchasing intention. However,

these models can be start at any point by the consumers as stated earlier.

Awareness

Interest

Desire

Action

2nd



2219

3. Celebrity Endorser versus Non-Celebrity Endorsers in terms of Advertisement efficiency

Day after day, customers are obliged to deal with plenty of commercials and advertising

messages. Historically speaking, in the late of 1980s, 20 percent of the TV advertisement in USA

were celebrity endorsement based (Motavalli, 1988). However, this number changed from 20

percent to 25 percent by 1997 (Shimp, 1997).

Retailers applying advertisement strategy due to some reasons such as: conveying their message

to the consumers and touching their emotions via their impressing message (Yeshin, Yoo & Kim,

2005). Studies conducted by Misra and Beatty (1990) reveals that the advertisement congruity

and congruity of the celebrity that employed in that commercial programs with the product will

have significant effect on recall power of customers toward both brand and product. There are

different attitudes that can be shaped toward an advertisement. Some of the feelings in this

regard can be named as liking it or being satisfied by it. Theoretically speaking, the more an

advertisement being liked, the more acceptive the patron is to the sales message it holds within

(Petrovici & Marinov, 2007).

It’s up to the retailers to choose either a celebrity or a created presenter as the indicator of their

products (Tom et al, 1992). Celebrity endorser has plenty of advantages that a non celebrity

character doesn’t have. For example, celebrity endorsers have the ability to create lots of

constructive attitudes regarding to the commercial and superior purchasing tendency that typical

endorser do not have (Atkin & Block, 1983). Moreover, celebrities have profound influence on

the profitability of the endorsed goods. For instance, the first year of contract between Michael

Jackson and Pepsi Co increased Pepsi Co sales for 1 percent that stands for millions of dollars

(Gabor, Jeannye & Wienner, 1987).

Marketers try to apply celebrities in their commercials since they believe employment of

celebrities will assist customers to recall that endorsed brand in the purchasing situation

2nd



2220

(Ranjbarian, Shekarchizade & Momeni, 2010). Employing celebrities in advertisement will

create the chance and opportunity to have plenty of positive impacts on customers’ attitude and

their buying intentions as well (Ranjbarian et al, 2010). Thus, established upon the Erdogan

research work (1999), celebrity endorsed products are more influential than the non celebrity

endorsed goods regarding to some aspects such as increasing attitudes towards advertising and

endorsed brand, strengthening customers’ intentions to buy, and so on.

Furthermore, there are some other advantages that celebrity endorsement delivers to the retailers.

To exemplify, Celebrity has the power to heighten the believability of the commercials (Kamins,

Brand, Hoeke & Moe, 1989). Moreover, celebrity endorsement assist customers to remember

brands’ message (Friedman & Friedman, 1979). In addition to the earlier statements, celebrity

endorsement enhances the process of brand recognition for customers and will have constructive

influence on the goods, especially the ones that have lesser purchasing involvement (Petty et al,

1983; Till, Haas & Priluck, 2006). All in all, celebrity endorsers have the potential to increase the

possibility of customer to select the brand that was endorsed by them (Ohanian, 1991).

3.1 Models on Celebrity Endorsement Strategy:

As a matter of fact, there are different models for selecting an endorser that describe the

characteristics of an endorser from different perspective. Here are some of them that explained in

brief in order to better understanding the marvelous role that a celebrity endorser can play while

a non celebrity cannot. The models can be described as below: 1- Source Credibility Model and

2- Source Attractiveness Model

3.1.1 Source Credibility Model

This model referred as the efficiency of an endorser mostly relies on some factors like expertism

of the endorser as well as his or her trustworthiness level (Lafferty et al, 2002). As far as stated

above, Source Credibility Model has two dimensions as follow: 1-Source expertise and 2-Source

trustworthiness Source expertise is the extent to which a person is perceived as a source of valid

2nd



2221

assertion (Roozen, 2008). Sincerity, faithfulness and reliability of the source to the audience can

be named as the Source trustworthiness (Khatri, 2006).

In this model, all the information from a credible source like a celebrity will generate significant

impact on attitudes, opinions and behavior by way of process called internalization (Belch &

Belch, 1993). Internalization happens when receiver have a desire to take the source of effects

regarding to his or her attitude and value since he or she believes that the celebrity has the

capability to solve the problem (Erdogan, 1999).

As far as presented above, this model will influence on different aspects of customers’ attitude

such as his or her desire. Consequently it will increase the efficiency of the ads based on some

models such as AIDA. Based on the AIDA model of advertising, the next level after Desire

named as an Action. Thus, celebrity enhances this process by his or her tremendous influence

over customer feeling that leads the patron to move from desire stage to the action one.

Therefore, this is one of the qualities that can be found mostly in celebrities than non celebrities.

So, based on this model, advertising models and the comparison of the celebrity endorsement

versus typical speaker, we can conclude that celebrities are the best source of commercial

adverting.

3.1.2 Source Attractiveness Model

This concept can be defined as how the physically attractiveness, likeability and similarity of the

endorser are related to the receiver that leads to the perceived social values of the sources

(Solomon, 2002). Physical attractiveness of celebrity endorser contains some inherent and

distinctive characteristics like having the power to attract, being delightful to look at, and

appearing charming and elegant (Ranjbarian et al, 2010).

These qualities will induce some positive attitudinal and behavioral reactions from consumers

(Ohanian, 1991). Cohen and Golden defined a process that called as the identification which

means, a celebrity endorser physical attractiveness demonstrates the efficiency of persuasive

communication. Based on this process, customers have great amount of tendency and desire to

2nd



2222

accept the information that coming from an attractive celebrity since they wanted to be identified

with such a celebrity endorser. (Cohen & Golden, 1972).

So, clients’ desire and feeling are affected due to qualities of the celebrities such as their beauties

and charming looks. Established upon some advertising models like AIDA and CAB (Cognition,

Affect and Behavior), celebrity attractiveness will have plenty of effects on audience’s desire and

feeling. As a result, celebrity attractiveness enhances this process by his or her marvelous

influence over customer feeling that leads the client to shift from desire and feeling stage to the

action one. Therefore, celebrities with some qualities such as attractiveness are better source for

doing commercial ads than the non celebrities. Moreover, based on some advertising models like

AIDA or Cognition, Affect and Behavior model (CAB), this attractiveness will have a

constructive influence on the desire and feeling (affect) of the audience. However, there is not

such an influence on the audience by non celebrity characters.

4. Conclusion and future research avenues:

Based on this researchers’ observation in advertisement area, majority of the scholars paid plenty

of attention to the endorsement effectiveness in either televisions or internet. However, lack of

attention in applying the most efficient endorser based on the advertising models is one of the

major problems. For instance, most of the advertisers prefer to choose typical consumer or non

celebrity for their advertisement rather than celebrity due to some reasons such as financial

burden or absence of their knowledge for selecting an appropriate endorser. A comparison

between efficiency of celebrity and non-celebrity endorsed advertisements reveals that endorsed

ads are more influential than non-celebrity endorsed ads (Agrawal & Kamakura, 1995).

In addition, advertisement effectiveness mostly depends on the consumers’ interest in

advertisement as well as their attitude toward ads itself (Mehta & Fitzwilson, 2001). According

to Erdogan (1999), celebrity endorsement has a significant effect in creating desirable result like

attitudes towards advertising and endorsed brand, intentions to purchase, and in fact actual sales.

Additionally, based upon some advertising models like AIDA and CAB, consumers initially

think about an object (cognition), then expand their feelings (affect) and eventually become

2nd



2223

involved in some form of behavior (conation) (Li & Leckenby, 2004). Those people who find

the commercial more favorable based on their attitude will have additional recall of that specific

brand (Mehta & Fitzwilson, 2001).

Customers have plenty of desires to take the source of effects which is a celebrity, based upon

his or her attitude in order to solve their issue (Erdogan, 1999). Therefore, we can find an attuned

relationship between celebrity endorsement and some models of advertisement such as AIDA

and CAB. However, in a converse manner there is no compatibility between non celebrity

endorsement and advertisement models due to their lack of influence on customers’ attitude and

desire. Thus, Celebrities are better source for advertisement than non celebrities due to their

influential power on desire and feeling (affect) of the audience. All in all, the aim of this research

is to provide plenty of proofs and evidences to encourage retailers and advertisers to employ

celebrity endorsements strategy in their ads rather than non celebrity endorsement. Generally

speaking, there is no perfect research as academic investigation. Further research with detailed

quantitative proofs from various contexts would improve the usefulness of the proposed research

work.

5. References

Agraval, J., & Kamakura, W. (1995). The economic worth of celebrity endorsers: an event study analysis. Journal of Marketing , 59, 56-62.

Agrawal, J., & Kamakura, W. (1995). The economic worth of celebrity endorsers: an event study analysis. Journal of Marketing , 59, 56-62.

Atkin, C., & Block, M. (1983). Effectiveness of celebrity endorsers. Journal of Advertising Research , 57-61.

Batra, R., & Ray, M. L. (1986). Affective responses mediating acceptance of advertising. The Journal of consumer research , 234 - 249.

Belch, G., & Belch, M. (1993). Introduction to Advertising and Promotion: An Integrated Marketing Communications Perspective.

Bovee, Courtland, Thill, J., Dovel, G., & Wood, M. (1995). Advertising Excellence.

2nd



2224

Bower, A., & Landreth, S. (2001). Is beauty best? Highly versus normally attractive models in advertising. Journal of Advertising , 30, 1-12.

Choi, S., & Rifon, N. (2007). Who is the celebrity in advertising? Understanding dimensions of celebrity images. Journal of Popular Culture , 40 , 304-25.

Colley, & Russell, H. (1984). Defining Advertising Goals for Measured Advertising Results.

Erdogan, B. (1999). Celebrity endorsement: A literature review. Journal of Marketing Management , 291-314.

Erdogan, B., Baker, M., & Tagg, S. (2001). Selecting celebrity endorsers: the practitioner’s perspective. Journal of Advertising Research , 41 , 39-48.

Ferle, C. L., & Choi, S. M. (2005). The Importance of Perceived Endorser Credibility in South Korean Advertising. Journal of Current Issues and Research in Advertising , 27.

Freiden, J. (1984). Advertising spokesperson effects: an examination of endorser type and gender on two audiences. Advertising spokesperson effects , 24, 33-41.

Friedman, H., & Friedman, L. (1979). Endorser effectiveness by product type. Journal of Advertising Research , 19, 63-71.

Gabor, A., Jeannye, T., & Wienner, D. (1987, December). Star turns that can turn star-crossed. 57.

Glowa, T. (2002). Advertising Process Models.

Kamins, M. (1989). Celebrity and non-celebrity advertising in a two-sided context. Journal of Advertising Research , 29, 34-42.

Kamins, M., Brand, M., Hoeke, S., & Moe, J. (1989). Two-sided versus one-sided celebrity endorsement: The impact on advertising effectiveness and credibility. Journal of Advertising , 18, 4-10.

Khatri, P. (2006). Celebrity Endorsement: A Strategic Promotion Perspective. Indian Media Studies Journal , 1.

Kleindl, B. A. (2003). Strategic electronic marketing managing e-business. united states of america: library of congress catalohing.

La Ferla, R. (2001). This Star for Rent, Now That Stigma Fades.

Lafferty, B., Goldsmith, R., & Newell, S. (2002). The dual credibility model: the influence of corporate and endorser credibility on attitudes and purchase intentions. Journal of Marketing Theory , 10, 1-12.

Lafferty, B., Goldsmith, R., & Newell, S. (2002). The impact of corporate credibility and celebrity credibility on consumer reaction to advertisements and brands. Journal of Advertising , 29, 43-54.

Li, H., & Lecken, J. D. (2004). Internet Advertising Formats and Effectiveness.

2nd



2225

Lin, C. A. (1993). Cultural Differences in Message Strategies: A Comparison Between American and Japanese Commercials. Journal of Advertising Research , 40-48.

Liu, M. T., Ying, Y. H., & Minghua, J. (2007). Relations among attractiveness of endorsers, match-up, and purchase intention in sport marketing in China. Journal of Consumer Marketing , 358–365.

Mehta, A., & Fitzwilson, F. (2001). Advertising Effectiveness on the Interactive Television Guide.

Misra, S., & Beatty, S. (1990). Celebrity spokesperson and brand congruence: an assessment of recall and affect. Journal of Business Research , 21, 159-73.

Motavalli, J. (1988). Advertising blunder of the rich and famous. 18-19.

Ogilvy, D. (1985). Ogilvy on Advertising.

Ohanian, R. (1991). ‘The impact of celebrity spokesperson’s perceived image on consumers’ intention to purchase’. Journal of Advertising Research , 31, 46-52.

Petrovici, D., & Marinov, M. (2007). Determinants and antecedents of general attitudes toward advertising Astudy of two EU accession countries. European Journal of Marketing .

Petty, R., Cacioppo, J., & Schumann, D. (1983). Central and peripheral routes to advertising effectiveness: the moderating role of involvement. Journal of Consumer Research , 10, 135-46.

Ranjbarian, B., Shekarchizade, Z., & Momeni, Z. (2010). Celebrity Endorser Influence on Attitude Toward Advertisements and Brands. European Journal of Social Sciences , 13.

Robertson, T. S. (1971). Innovative Behaviour and Communication.

Roozen, I. (2008). The relative effectiveness of celebrity endorsement for beauty, high- and low involvement product print advertisements.

Shimp, T. (1997). Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communication. (4, Ed.)

Soloman, M. (2002). Conumser Behaviour: Buying, Having and Being.

Till, B., Haas, S., & Priluck, R. (2006). Understanding celebrity endorsement: a classical conditioning approach. American Marketing Association, 17, p. 241. Chicago.

Tom, G., Clark, R., Elmer, L., Grech, E., Masetti, J. J., & Sandhar, H. (1992). The use of created versus celebrity spokesperson in advertisements. The Journal of Consumer Marketing , 45-51.

White, D. W., Goddard, L., & Wilbur, N. (2009). Theeffects of negative information transference in the celebrity endorsement relationship. International Journal of Retail & Distribution Management , 37 , 322-335.

Witt, G. A. (1999). You aren’t advertising a product, you are selling an idea.

2nd



2226

Yeshin, T., Yoo, C., & Kim, K. (2005). Processing of animation in online banner advertising: The role of cognitive and emotional responses. Journal of Interactive Marketing , 18-34.

406-2nd ICBER 2011 PG 2213-2226 Advertising Models

Documents

Transcript of 406-2nd ICBER 2011 PG 2213-2226 Advertising Models