Boosting Brand Value with Celebrities

Chapter 1: Introduction

1.1. Background

Celebrity endorsement is one of the widespread phenomena that is used by retailers in advertisement and is one of the integral parts of the marketing. Celebrity endorses products for better marketing as it helps to create value for customers and also creates a strong customer relationship. This is vital as it increases the value of the brand in the market. In this regard, the celebrity endorser is a person “who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” (Byberg & et al., 2011). Several celebrities are lending their name to the brand such as Golf star Tiger Woods endorses the brand Nike. The endorsement by celebrities positively influences the brand image and creates differentiation. It is argued that celebrity endorsement is a successful marketing strategy that is effective in raising awareness and augment sales along with revenues. Celebrity endorsement is about increasing the attention along with brand recognition for the products. The endorsement is a channel of brand communication where the celebrity certifies the position of the brand and acts as a spokesperson. The credibility of the celebrity is transferred to the promotion of the brand for greater effectiveness. The impact of celebrity endorsement is high upon the image of the brand (Doss, 2015). The endorsement by a celebrity is being done for the effectiveness of the sales strategies along with marketing campaigns. For the success of the brand, the main factor is to transmit the persuasive information with the help of the well-known celebrity. Endorsement by a celebrity has the power to influence the purchase decision of customers as a celebrity is a public figure, and brand using their image positively influences the purchase decision.

This has been one of the most effective tools for an advertisement that is positively helping to build the brand image. Celebrity endorsement primarily focuses upon the consumer's brand awareness so that the product details are provided to customers that impact the brand image. The endorsement is also gaining relevance in the market to attract customers and create positive demand. There are several impacts that celebrity endorsement has upon the retail business and brand awareness as it increases awareness among customers about the products (Koshy & Manohar, 2017). Celebrity is effective and has the power to influence the target audiences so that they can increase value. The brand image is augmented and the credibility is ensured to increase trust by the use of the celebrity endorsement. However, it is also argued by many that endorsement by a celebrity might have some negative impacts such as negative publicity. If the name of the celebrity is linked with the negative image, then it impacts the brand image. Celebrity endorsement is a successful tool that is being used to improve the sales along with revenues and positively influences the product success. This promotional tool is vital as the credibility of the endorsers leads to attractiveness, trustworthiness along with increases the reliability (Cuomo & et al., 2019). The attitude of customers towards the brand changes due to celebrity endorsement.

1.2. Research Aims and Objectives

For the success of the research study, it is vital to determine the effectiveness of celebrity endorsement to improve the brand image. The main aims of the research study are to:

Determine the vitality of celebrity endorsement

Impact of brand image and celebrity endorsement influences

Determine how celebrity endorsement can influence the brand image and reputation of companies within the retail industry of UK

Chapter 2: Literature Review

Brand image is an important aspect that is being considered upon for the growth of the business as it is about the perception that is being perceived by customers. Brand image is vital as it is an important part of marketing communication, experiences, and social influences. Brand image is formed in such a way that it can retain customers through making the effective decision making. Brand image is vital as it has the power to influence customer mind and influence decision making to augment sales. It is unique in its approach and has the power to strengthen brand communication. According to the views of Rosengren & et al. (2010), brand image cannot be created but it can be formed as it increases the overall value of the business. Brand image is something which is objective and has much to play with the mind of consumers so that the products have a strong image in the mind of customers. It is also stated by Khalid & Siddiqui (2018) that brand image has the power to enhance the goodwill of the brand by augmenting the value of the organization. Therefore for the image to augmented promotional tools such as celebrity endorsement is being considered upon as it increases the value and strengthens the brand valuables. The attitude to purchase products is being influenced by brand image because it is about the attitude of customers towards the products of the brand. The attitude towards the brand and the purchase intention impacts the image. Brand leading to an effective purchase decision is one emotional factor that is being influenced to affect the business to improve sales and productiveness positively.

2.1. Celebrity Endorsement

According to Bergkvist and Zhou (2016), celebrity is a person who possesses higher credentials people like Sports icons, popular entertainers, movie stars and TV personalities. They have the power to grab the attention of the audience. A larger audience segment could recognize instantly and even identify the famous person and there is a transfer of affection and goodwill upon the products. A celebrity endorser is a celebrity who brings the products of the brand over the media. The celebrity endorser is even termed as an individual who possesses public recognition for their achievement in its areas rather than the endorsed class of products. It is even stated by McCracken (2009) that Celebrity endorsement is the form of branding or advertising campaigning which uses the name and fame of the renowned personality to promote its products and services. It is even a popular form of enhancement of the advertisement which has the potential to enhance the financial returns for the company by employing celebrities in the advertising campaigns. The celebrity, in general, is credible which exerts a greater impact on the brand attitudes and purchase intention of the consumers (Thomas and Fowler, 2015).

Miller and Laczniak (2011) state that Celebrity endorsements are the extensively utilized strategy in the raising of profile. Such endorsement makes a celebrity to give experts opinions regarding the product and is associated with the product. The types of an endorsement could be either implicit, explicit, co-presentational or even imperative. The involvement of the celebrity in the product attracts those consumers who adore the celebrity and consumers to start liking the products too (Okorie, 2010). The celebrity endorsement acts as a competitive advantage for the company as these endorsements are highly effective in sustaining the brand name of the advertisement in the print advertisement. It is argued critically that the viewer of advertisement is higher during celebrity endorsement as compared to viewers of advertisement in the absence of celebrity. The buyer’s decision making is even dependent on word of mouth which involves a celebrity. However, the effectiveness of celebrity endorsement is highly dependent on the endorsed products as products should be linked with their personality (Bergkvist and Zhou, 2016). The celebrity endorsement has a major impact on the buying preferences and customers' attitude so the company needs to be very alert while selecting the endorser as wrong selection would lead to a decline in brand reputation and image.

2.2. Models and Theories of Celebrity Endorsement

The celebrities are highly involved in each of the industries, including the retail industry. This attracts several attention and enhances the brand image and reputation. This study has explained regarding Meaning transfer model and the Trickle-down theory.

2.2.1. Meaning Transfer Model

According to Um (2013), The meaning transfer model mainly describes how celebrity gives meaning to the process of endorsement using prevailing personality and status. It is analyzed that consumers possess some meaning linked with the endorser which is eventually transferred to the brand through the suggestions of a three-stage meaning transfer model. Firstly, when the celebrity endorser endorses the product than the audience makes the formation of connotation. The meaning of a famous person moves from endorser to products. The mind of the consumer associated the product with celebrity attitudes. In the consumption phase, there is a transfer of meaning from products to the consumers (Okorie, 2010). The third stage explicitly showcases the essentiality of the decision of the consumers wherein meaning is transferred to the brand or company. This part is essential as there is no transfer of meaning automatically nor self-transformation is possible automatically. Since the celebrity gives certain meaning and value to the materials, consumers are even more keen to build the same value and build self from them. This model states that it is essential for the company to make the selection of the celebrity who possess appropriate response from the consumers (Radha & Jija, 2013). When there is higher involvement of the situation than a celebrity is found, the appropriate and psychological risk is seen to be higher.

2.2.2. Trickle-Down Theory

This is a kind of distribution theory that describes and has an understanding of celebrity endorsement in the advertisement. This theory states that preference of product generally moves from higher to middle and then working-class people (Thomas, 2014). Such a level of advertisement is determined on different societal levels. The effectiveness of celebrity endorsement has its effects on the purchasing power of customers and towards a sense of style. This theory even explores than different class people get satisfied with those products which are advertisements by those class celebrities as it enhances their standards (Sudha and Sheena, 2017).

2.2.3. Match-up Hypothesis

This model or theory of collaboration states that there should be a proper relationship between celebrity and brand to get maximum output from the entire campaign. The match-up hypothesis even states that there needs to be the bodily attraction of celebrity with the brand to increase the features of the products which are being advertised by them (Zamudio, 2016). Moreover, this also explains the reputation and brand image of the company directly impacts the face selection of the celebrity for the means of advertisement.

2.3. Impact of Celebrity Endorsement on the Customer's Purchase Behavior

It is stated by Miller and Laczniak (2011) that celebrity endorsement brings about positive believability in the advertisement of the products. It also possesses positive effects on the customer's behavior as consumers likeliness towards celebrity is transferred towards the endorsed brand and product. Celebrity endorsement even possesses an impact on the brand outlook and consumer’s purpose towards the purchase (Walker & Langmeyer, 2012). The celebrity endorsement possesses effects on the consumers in two different ways which include buying behavior of the consumer and using the media.

It is reviewed by McCracken (2009) that celebrity endorsement is essential for the retail industry to satisfy the physical and psychological demands of the consumers as per the new trends to attain success. The customers generally review the behavior of the celebrity and copy it which increases the demand for the products in the retail sectors (Temperley & Tangen, 2016). In the past eras, customers used to make purchasing decisions using any rational decisions. However, presently, customers gather information through different sources and then come up with a rational conclusion. The celebrity endorsement is taken as a mediator to aware and refer the consumers regarding goods and services. Each of the celebrity moves is imitated, learned and even followed by the consumers (Nelson, Tunji and Gloria, 2012). This is the reason that the company needs to be very aware while choosing the celebrity for its products as one wrong decision could change the purchase intention of the customers.

2.4. Impact of celebrity endorsement on brand image and reputation

According to Patel and Basil (2017), The increased competition between the firms to attract a larger number of consumers have made the brand to use celebrity to endorse their products. The featuring of the famous personality assists the marketers in solving the issues of over-communication. Each of the products possesses an image and usage of celebrity endorsement gives the image of products closer to the consumer’s expectations by the transfer of cultural meaning which resides in the product’s image (Radha & Jija, 2013). It is, however, essential for the company to choose the right celebrity as a brand ambassador and must be sure to choose the one who can portray the company’s image. The celebrity who acts as ambassador matters greater deals to its customers and thus, credibility for brand ambassador needs to be given higher importance rather than boosting the company growth (Miller & Laczniak, 2011). This even implies that the company needs to be very conscious while choosing an ambassador as it has a direct connection with brand image and reputation. It is further reviewed by Nelson, Tunji, and Gloria (2012) that brand is the most valuable asset of the company and thus, the promotion made through brand ambassadors increases its value which leveraged through the extension of the brand. The properly endorsed brands which possess established personality are one of the prominent features which bring immediate awareness and enhance the reputation of the brand. It is further analyzed that there needs to be good match in-between the celebrity and product image as brand image and reputation is enhanced when customers find celebrity feasible for the product (Rice, Kelting and Lutz, 2012). It is the celebrity that strengthens the image of the company and even gives provide an edge over its competitors. The power of a brand in the market is one of the increased functions of the effectiveness of endorsement prices which enhance the brand growth among its competitors. It is further analyzed that the impact of celebrity is however not reliable or doesn’t add value to the brand if the brand doesn’t possess a distinctive identity or doesn’t add value to the product. It can thus be stated by Silvera &Austad (2014) that celebrity endorser, as well as product, brings its image towards the expectation of consumers which thereby boost up sales and even increase brand image and reputation. The consumers attain the feeling of similarity to celebrity endorsers which enforce brand consumption by the target customers which thereby enhance the image of product and brand. Although celebrity endorsement standout to bring a higher level of recall and increase brand image and reputation, however, Mikulas and Svetlik (2016) state that there are even certain factors of risk which are linked with celebrity endorsement. It is stated that negative publicity of the celebrity is one of the major risks while endorsing a celebrity which even has its impact on the brand image and reputation (Wei and Lu, 2013). The negative publicity regarding the celebrity who is endorsed could change the consumer’s perception towards the brand and products which could decline brand image and reputation. The marketers need to pay a greater amount for the misdeeds of the celebrity and would face serious embarrassment and disgrace (Erdogan, 2009). It is even reviewed that most of the time, consumers don’t look over the product but notice the celebrity which fails brand as sales of the product could be declines.

2.5. Impact of Consumer Endorsement in the Brand Image and Reputation of the Retail Industry in the UK

As per Erdogan (2009), the UK retail industry is an ever-changing landscape, which is also one of the essential parts of the UK economy which contributes five percent to the gross development product. The UK retail sector covers each of the business which sells goods to the public from departmental stores and larger chains through virtual stores. It had been reviewed that celebrity endorsement is very costly and not all retail industries of the UK could afford it. However, the majority of the retail industry of the UK is seen applying customer endorsement as millions of dollars could be gained in return for this endorsement. Since the people of the UK are highly influenced by the celebrity and follow their lifestyle, so managers of the retail sectors prefer to make major investments over the intangible assets (McCormick, 2016). The UK’s retail sectors even make co-operation with various celebrities to enhance brand image and reputation. This industry in the UK is seen applying various methods for advertisement. The usage of social media, digital media, print media and traditional media are covered by this industry to gain publicity and enhance celebrity endorsement. Customers of the UK generally don’t products only for their usage but even purchase it as advertisements possess the customer’s favorite celebrity (Walker & Langmeyer, 2012). It can be stated that there is a greater impact of consumer endorsement in the brand image and reputation of the retail industry in the UK as a retail industry has seen both positive and negative results due to endorsement of celebrity (Mikulas and Svetlik, 2016). The retail industry has thus become a very conscious choice of the celebrity and employ that celebrity who match the products and target customers demand.

Chapter 3: Research methodology

3.1 Introduction

The research methodology is a systematic plan to conduct the research. Since the aim of the study is to explain how celebrity endorsement can influence the brand image and reputation of companies within the retail industry of the UK. This chapter had explained research strategy, designs, approach, sampling strategy, research philosophy and another research process into consideration.

3.2 Research Philosophy

Research philosophy is the assumption’s clarification, which is related to the source and nature of gathered data and knowledge. Positivism and interpretivism are the two main research philosophy in this research study. Positivism research philosophy makes the usage of statistical data to attain findings while interpretivism research philosophy diverse approaches for the investigation of the research study. This study has made the usage of positivism philosophy as it is more flexible than positivism and is even bottom-down approaches that would make this study stronger. Moreover, since this study possesses more statistical data, so the major focus is given on numbers to reflects various issues.

3.3 Research Approaches

The research approach is known as a plan which assumes to attain detail knowledge regarding data collection, analysis and interpretation. Research approaches of two types namely deductive and inductive wherein the inductive approach collects data and develops theory in the form of data analysis results. On the other hand, the deductive approach is linked with theory development and is suitable for quantitative methods. Since the aim of the study is to explain how celebrity endorsement can influence the brand image and reputation of companies within the retail industry of the UK, this study had used a deductive approach into consideration. This approach is applied in this study to attain a conclusion from propositions and premises.

3.4 Research Strategy

The research strategy is an effective method that helps in ensuring appropriate resources which are made available to carry research study in calculated time Zone. This strategy states that when the study objective is addressed effectively, then it enhances work efficiency. The research strategy is divided into different forms which include case study, interviews, surveys and experimental research to attain research study. Since the aim of this research is to explain how celebrity endorsement can influence the brand image and reputation of companies within the retail industry of the UK, this study has used the survey to attain the research objectives. This strategy has helped the researcher to attain valid data and information linked with research and even assist in evaluating respondent’s experiences.

3.5 Research Methods

Research methods are of three types, namely qualitative, quantitative and mixed methods wherein qualitative data possess non-numerical data and quantitative methods give focus on the statistical data to analyze numerical data. Since the aim of this research is to explain how celebrity endorsement can influence the brand image and reputation of companies within the retail industry of the UK, this study has used quantitative research design into consideration. This method is even applied to make an informed assessment of methods that are used to attain results linked with the research problems. This method is even used as survey techniques are being applied to attain the research aim and objectives.

3.6 Data Collection

Data collection is an essential component of the research study, which possesses two data sources namely primary and secondary data. Primary data is firsthand data, which is collected through interviews, surveys, questionnaires, etc. whereas secondary data are already published data which is attained from books, journals, articles, and other academic sources. This study has collected primary data using a survey wherein managers of the retail industry of the UK have been surveyed. On the other hand, secondary data have collected using books, academic papers and journals.

3.7 Sampling

Survey sampling is the process of selecting the members from the target population to be in the sample for the survey. This study has also applied a questionnaire survey wherein the internet has been used to send the survey questions. The data have been collected through mails wherein sample selection was done through probability-based samples. This sampling has been used as known members of the retail industry in the UK were chosen. 100 people associated with 10 retail industries were surveyed in this study.

3.8 Data Analysis

Data analysis is the process that is applied to acknowledge the information gathered using different sources to attain effective growth. The primary data is collected using a survey, so correlation and regression methods are used to analyze those data. On the other hand, secondary data are analyzed using thematic analysis methods.

3.9 Ethical Consideration

Ethics is considered an essential consideration that is needed while conducting the research study. Ethical consideration is applied while collecting primary and secondary data. The participants who are allocated for the survey have not been forced and ethics were maintained. The secondary data were also collected with ethical consideration and none of the data were plagiarized.

Chapter 4: Findings

In order to understand about the role of celebrity endorsement on brand reputation and status a questionnaire survey has been conducted with 100 respondents in the retail industry in the UK. Their responses have provided significant understanding about the impact of celebrity endorsement on customers and how they observe celebrity endorsement while purchasing retail products.

4.1 Demography of the Respondents

From the analysis, it can be observed that most of the respondents studied are male. The following figure demonstrates the gender of the respondents studied.

With respect to age of the respondents, it can be observed that most of the respondents belong to the age group of 31 to 40 years. About 30 respondents belong to the age group of 18 to 30 years and 22 respondents belong to the age group of 41 to 50 years. Only 6 respondents are more than 50 years (see following figure). This indicates majority of the respondents are young and the key trendsetters in the retail industry. This age group has much knowledge about celebrity impact on customers.

With respect to educational qualification of the respondents, it can be observed that most of the respondents (about 63%) have passed graduation. 28% respondents have completed the higher secondary education and 5% respondents have completed the master’s education. Only 4% respondents have certain kind of secondary education (see following figure). This specifies that majority of the respondents are educated enough to give proper response to the questions, making the research valid.

4.2 Perception regarding Celebrity Endorsement

In order to understand the perception of respondents regarding celebrity endorsement, the respondents are asked to rank a series of statements from highly agree to highly disagree. The first statement was that organizations use the celebrities so that the brands are recognized easily. On this question, most of the respondents have agreed with this fact. About 15 respondents were neutral on this fact and only 10 respondents were disagreed on this fact. This indicates celerity endorsement help companies to enhance the brand recognition easier for the customers. The next statement was that organizations use celebrities so that the brands are remembered easily. In this question also most of the respondents have agreed with this fact. 10 respondents were neutral on this statement and only 9 respondents were disagreed on this statement. This specifies that celebrity endorsement is also utilized by companies in order to have better brand recall during purchase. The third statement was if the organizations use celebrities to enhance the sales. Majority of the respondents agreed with this fact, while 11 respondents were neutral with this fact and 7 respondents were disagreed with this fact. Accordingly, it can be stated that when customers will recognize and recall the brand in retail stores during purchase, which is endorsed by a popular or favorite celebrity, they might be enthusiastic to purchase the product and as a result it will increase the sales (see following figure).

Competition is one important aspect of retail industry as there are many brands in the UK market which intends to enhance the market share. In this respect, the next statement was that organizations use celebrities to better compete with brands. In this context, most of the respondents have agreed with this fact. 12 respondents were neutral, and 9 respondents disagreed with this fact. Hence, it can be stated that by using celebrities, retail brands are able to enhance its competitive ability in comparison with other brands. The respondents are asked if they agree that organizations use celebrities to obtain the attention of the customers. Majority of the respondents agreed with this fact, while 12 were neutral and only 2 respondents disagreed with this fact. The respondents are asked if they believe celebrities are credible source of information. Most of the respondents were disagreed with this fact were significant number of respondents were found to be neutral with this fact. This indicates, irrespective of celebrity endorsement people cannot completely find them credible. They also like to obtain information regarding the brand and validate it from other sources also rather than depending one source (see following figure).

The respondents are asked if they believe that the brands endorsed by celebrities are trustworthy. Most of the respondents are neutral with this fact. About 26 respondents are agreed with this fact while 18 were disagreed with this fact. This specifies that since, celebrities endorse a brand due to business purposes some people do not find them completely trustworthy as celebrity endorsement is conducted by brand for profit motive. The respondents are asked if they find that brand endorsed by celebrities are informative. On this aspect, most of the respondents have agreed with this fact. However, considerable number of respondents also disagreed with this fact. From this finding it can be stated that although celebrity endorsed ads provide certain valuable information regarding the brand, there can also be certain hidden information which are not revealed by them. The respondents are asked if they find it interesting about the brands endorsed by celebrities. On this statement, most of the respondents are agreed, while 11 were neutral (see following figure). This indicates that celebrity endorsement generate curiosity among the customer regarding a brand, which in turn can help to seek information regarding the brand and increase brand recognition.

4.3 Celebrity Endorsement and Brand Image

In order to understand if celebrity endorsement impact on the brand image, the next series of statements have been designed. The first aspect was if they believe brand endorsed by celebrities are also used by them. Mixed reaction has been observed on this question where 33 respondents agreed with this fact, but 35 disagreed with this fact. This indicates even if a brand is endorsed by celebrities, they might use or not use the brand personally. When asked if the brand endorsed by celebrities are more popular than those who do not use it, majority of the respondents were agreed. 12 respondents were neutral with this fact while 15 were disagreed with this fact. This specifies that celebrity endorsement help to increase brand popularity, as someone’s favorite celebrity using the brand will make it popular for people who like that celebrity. In this way it can make a brand reputed among customers. The respondents are asked if brand endorsed by celebrities easily come into their mind while making purchase. This statement is also supported by most of the respondents (see following figure). Since celebrities can make a brand popular, it can easily be remembered by customers while shopping from retail stores among the existence of different brands.

In the next statement, the respondents are asked if poor behaved celebrity can create negative brand image. In this context, most of the respondents have agreed with this fact. Only 10 respondents were neutral on this fact. This finding validates that celebrities have strong impact on brand image. While reputed celebrity can enhance the brand image, this brand image can also be ruined if the celebrity faces any kind of bad reputation. The respondents are asked if a celebrity endorse multiple brand of similar product category can have negative effect on brand. Most of the respondents have agreed with this fact. This indicates that multiple endorsement of celebrity can impact on the credibility of information and also reveal the profit motive of the celebrity, which can have negative effect on the brand. Therefore, most of the celebrities avoid endorsing multiple products of similar category, as it will hamper the brand image. The respondents are asked if celebrity endorsement can create lots of publicity. Majority of the respondents have agreed with this fact. Only 6 respondents disagreed with this fact (see following figure) This specifies that celebrity endorsement is a great tool for marketers for public relation and promotion of brand and it has strong influence on brand image, whether positive or negative.

4.3 Impact of Celebrity Endorsement on Purchasing Behavior

In order to understand the impact of celebrity endorsement on purchase behavior, respondents are asked if they believe advertisements having celebrities are effective than those which don/t use them. In this context, most of the respondents are agreed with this fact. On the other hand, 35 respondents are neutral with this fact (see following figure). This indicates that use of celebrities makes the advertisement much effective by making it interesting and by attracting the attention of the key target audience who observe a particular celebrity as role model for a specific age group or specific culture.

The respondents are asked if the celebrity endorsement help to switch products from regular to products endorsed by favorite actor or actress. In this question also most of the respondents (about 34 and 21 respectively) are agreed and strongly agreed with the fact. About 29 respondents are neutral with this fact. Only 12 respondents are disagreed with this fact (see following figure). This specifies the effect of celebrity endorsement on customers, when they observe their favorite actor or actress is representing a brand, they simply desire to associate themselves with the brand. Such attitude makes them to switch from regular to celebrity endorsed products.

In the next question, the respondents are asked if they desire to know more about a brand before purchasing even if it is endorsed by favorite celebrity. 55 and 20 respondents respectively have agreed and strongly agreed with this fact. This specifies that even if popular celebrity is endorsing the brand, the customers do not have blind faith on them. They also desire to obtain additional information as they understand there is certain profit motive for celebrity endorsement.

In the next question, the respondents asked if customers take chances by purchasing new brand if it is endorsed by celebrities. In this question majority of the respondents (about 54 and 11 respectively) are disagreed and strongly disagreed with this fact (see following figure). This indicates that only celebrity endorsement is insufficient for a company to satisfy a customer. There are other factors also which impact on their purchasing decision.

In order to know the important factors, the respondents are asked to rank list of the factors mentioned in the survey according to their importance for making purchasing decision. About ten key factors was analyzed in order to know their significance for purchasing decision. Among them, the important and most important factors according to most of the respondents are observed to be brand reputation, price, previous experience of customer regarding the brand, brand availability, packaging, promotion and quality of the brand. On the other hand, the moderately important factors mentioned by most of the respondents are brand advertisements and recommendations by others. Finally, the least important factor mentioned by the respondents are special advantages (see following figure). This indicates that apart from brand endorsement, these factors are also important and can influence on the purchasing decision of the customers.

Finally, the respondents are asked if celebrity endorsement a vital factor for selecting a product. Majority of the respondents have agreed and strongly agreed with this fact. However, 19 respondents were disagreed and 18 were neutral with this fact (see following figure). This indicates that celebrity endorsement helps to increase the brand reputation and make a brand popular, which is again a vital factor for making purchasing decision of customers as demonstrated in previous question.

4.4 Analysis

4.4.1 SERVQUAL Analysis

In order to evaluate the findings obtained from the survey, the SERVQUAL model is used. In order to evaluate the impact of celebrity endorsement on brand image four dimensions are used, which are perception regarding celebrity, impact of celebrity endorsement on brand image, impact of celebrity endorsement on purchasing behavior and role of celebrity endorsement on selecting a product. The key features pertaining to perception regarding celebrity is as follows.

The key features pertaining to impact of celebrity endorsement on brand image is as follows.

The key features pertaining to impact of celebrity endorsement on purchasing behavior is as follows.

On the basis of these features the SERVQUAL score is as follows.

4.4.2 Correlation Analysis

In order to understand if there is any relationship between celebrity endorsement and brand image, at first correlation analysis is conducted.

From the above analysis, it can be observed that the value of correlation coefficient between celebrity endorsement brand recognition and celebrity endorsement brand recall with brand endorsed by celebrities are more popular is 0.538 and 0.573 respectively. This indicates that there is positive relationship between these variables, i.e. increased brand recognition and increased brand popularity due to celebrity endorsement help to make a retail brand popular, hence enhancing brand image. In the similar context, correlation coefficient between brands endorsed by celebrities are interesting and brand endorsed by celebrities are more popular is observed as 0.563, which is positive and closer to 1. Thus, it can also be stated that celebrity endorsement make a brand advertising interesting, which in turn makes the brand ads effective for those who use celebrities. However, the correlation coefficient between brands endorsed by celebrities are trustworthy, brand endorsed by celebrities are informative and brand endorsed by celebrities are more popular is observed as 0.170 and 0.083 respectively, which is positive but not closer than 1. Therefore, it can be stated that weak positive relationship exists between the variables.

4.4.3 Regression Analysis

In order to understand the significance of aforementioned relationship between celebrity endorsement and brand image, regression analysis is conducted. The key independent variables which has been used for measuring celebrity endorsement in this context are:

These independent variables has been analyzed against the key dependent variable for brand image which is measured by “brand endorsed by celebrities are more popular than those who do not use them”.

a. Predictors: (Constant), Brands endorsed by celebrities are interesting, Organizations use celebrities so that the brands are recognized easily, Brands endorsed by celebrities are trustworthy, Brand endorsed by celebrities are informative, Organizations use celebrities so that the brands are remembered easily

a. Dependent Variable: Brand endorsed by celebrities are more popular than those who do not use them

b. Predictors: (Constant), Brands endorsed by celebrities are interesting, Organizations use celebrities so that the brands are recognized easily, Brands endorsed by celebrities are trustworthy, Brand endorsed by celebrities are informative, Organizations use celebrities so that the brands are remembered easily

a. Dependent Variable: Brand endorsed by celebrities are more popular than those who do not use them

From the above analysis, it can be observed that the value of R2 is 0.414, which indicates that any changes in the independent variables is related with about 41.4% changes in the dependent variable, i.e. brand image, which is quite significant. Furthermore, from the ANOVA table, the P value of the analysis is observed as 0.0001, which is less than 0.05, i.e. P 0.05. This specifies that the relationship between the variables are statistically significant. Hence, on the basis of the analysis, it can be stated that celebrity endorsement has significant influence on brand image in retail industry in the UK.

Chapter 5: Discussion

It has been understood that celebrity endorsement has been affected by the growth of the retail sectors of the UK. Along with this, it is also changing the perception of the people about the brand image. Celebrity endorsement has become a famous method of advertising that is to be used for attracting more customers towards them. Through this, the demands of the customers are also explained, and this in turn, also advantages the company to gain better competitive advantages out of this. A celebrity endorsement can gain success if the products are matching the celebrity’s personality (Nelson, Tunji and Gloria, 2012). This has also created a huge influence on the buying preferences of the customers. However, if celebrity endorsement does not create an impact on the mindset of the consumers, it may affect the company’s growth and prosperity. It has been noticed that the majority of the customers mention that this process has been successfully used for gaining recognition. Also, the sales of the company are enhanced with the support of this.

Celebrity endorsement is also used for competing with other brands. It is also said to be beneficial in increasing trustworthiness with the customers. However, the most effective thing that the organization gains after using celebrity endorsement is in attracting more customers towards them. This has also been efficacious for them in increasing their brand image. On the other hand, various models and theories are also used to attract more customers to the company. The brand image, as well as the reputation of the company, is also been influenced by the use of these models and theories (McCormick, 2016). Meaning transfer theory is a process by which the celebrity’s ways of presenting the products and goods can be understood. Apart from this, the use of their status and personality in impressing the customers also falls under this model. However, this may create a negative impact if the celebrity fails to have a better image in the market. In this manner, it can provide both advantages as well as disadvantages to the company and its image.

Matchup hypothesis is also used for knowing the relationship that has been caused between the brand and celebrity. It is beneficial for understanding the role of celebrity endorsement and its impact on the products delivered by the company. On the other hand, celebrity endorsement has also been useful in making people aware of the services and products that the company is delivering. The celebrity endorsement is acted as a mediator through which the company will be able to provide better advantages to the consumers. This advertising process is needed to be used in such a manner that it can suit the celebrity (Patel and Basil, 2017). It is one of the most mandatory matters that those products are needed to be used that can be perfect for the celebrity so that the customers can get attracted to this. From the findings, it can be understood that celebrity endorsement has been useful for organizations regularly. This has also changed the perception of the customers towards the company. Celebrity endorsement has been stated as a vital aspect of the products of the organization. This has provided better advantages to these companies in the UK.

Brand image has become a vital issue that can also be gained with the support of celebrity endorsement. From the participants’ perception, it can be stated that the bran endorsement has been impacting the consumer’s buying behavior and this has also increased the sales of the companies. On the other hand, celebrities are also observed to be increasing the negative use of the brand image. This affects the growth of companies in a drastic manner. For this reason, the celebrity endorsement advertising process is needed to be used in a justified manner so that they can gain better recognition and scopes among the demands of the customers (Wei and Lu, 2013). They need to observe that negative issues so that they can use strategies for preventing those issues which may affect the customers’ perception. However, the celebrity endorsement also impacts the reputation of the company and this in turn, increases the demand of the customers towards the products of the organization.

Chapter 6: Conclusion and Recommendations

6.1 Conclusion

The research scholar of this study aims to understand the impact of celebrity endorsement on the brand image and the way the reputation of the companies is influenced due to this. Celebrity endorsement has been affecting the retail sectors of the UK drastically. It also aims to understand the influence of celebrity endorsement on the purchasing behavior of the customers. It has been noticed that celebrity endorsement is impacting the growth of the products and brands. The use of celebrity endorsement is also noticed while fulfilling the demands of the consumer, whether it is the psychological demand or physical demand. Through the help of celebrity endorsement, the retail sectors will also be capable of knowing the purchasing behavior of the consumers. Through the support of theories and models, meaning transfer model and trickledown theory are used and this has also been beneficial in knowing the product preferences of the companies. Matchup hypothesis is also used and in this case, the features of the products preferred by the customers are known. The research scholar uses the positivist philosophy and the deductive approach for its betterment. To fulfilling the aims and objectives, the quantitative research method is taken into consideration. Both the primary and secondary methods are used and 100 people were taken from 10 retail industries for understanding the impact of celebrity endorsement on the UK retail sectors. It has been found that according to the respondents, the organizations are influenced by the use of celebrity endorsement. This has helped them to understand the consumer’s buying behavior. The brand image is also influenced because of this reason.

6.2 Recommendations

It has been understood that the retail sectors are using different procedures of using celebrity endorsement as their advertising process. It has also been useful in targeting the customers to make them aware of the products that they are going to sell. It can be recommended that the retail sectors of the UK need to take those celebrities that are quite famous so that the general public can get influenced by this. For this reason, the companies have to provide a huge amount of investments and intangible assets so that they can improve their advertising process and can also gather more customers towards them (Kim, Choe and Petrick, 2018). Celebrity endorsement is also influencing the brand image of the organization and this also helps the sectors to provide better competition to the other brands of the UK. However, it can also be understood that the retail sectors of the UK cause negative effects due to the use of multiple endorsement advertising process. Thus, it can be recommended that the companies should choose a single person for their celebrity endorsement and its impact will be seen on the brand image. It has been understood that the ads which are having celebrities are gaining more recognition than those which are not using celebrity endorsements.

6.3 Future Research Scope

In this research study, the scholar states about the matter of celebrity endorsement, and along with this, it also states about the different models and theories that are to be used for knowing the effect of celebrity endorsements such as meaning transfer model and trickledown theory. On the other hand, the impact of celebrity endorsement on buying behavior has also been addressed. However, the scholar fails to provide some statistical data by which the academic quality would have been maintained. Apart from this, it also does not state about the negative issues faced by the organizations due to celebrity endorsement.

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