Celebrities’ Impact on Branding

Center on Global Brand Leadership Columbia Business School

January 15, 2003

Christina Schlecht 527 Riverside Dr., Apt. 4K New York, NY 10027 (212) 280 5447 cschlecht02@gsb.columbia.edu

Table of Contents
1. Introduction 2. A Definition of ‘Celebrity’ 3. Celebrities as Spokespersons 4. Source Credibility and Attractiveness 5. The Match-up Hypothesis 6. The Meaning Transfer Model 7. Multiple Brand and Celebrity Endorsement 8. Conclusion

Table of Figures
Figure 1: Catherine Zeta-Jones endorsing the brand ‘Elizabeth Arden’ Figure 2: Successful and unsuccessful celebrity endorsements Figure 3: Meaning transfer in the endorsement process Figure 4: Brands endorsed by top model and actress Milla Jovovich Figure 5: Celebrities endorsing the luxury brand ‘Omega’

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Introduction
The billions of dollars spent per year on celebrity endorsement contracts show that celebrities, like Liz Hurley, Britney Spears and Tiger Woods, play an important role for the advertising industry (Daneshvary and Schwer 2000, Kambitsis et al. 2002). Female athlete Venus Williams, tennis player and Wimbledon championship winner in 2002, for example, has signed a five-year $40 million contract with sportswear manufacturer Reebok International Inc.1 Theory and practice prove that the use of super stars in advertising generates a lot of publicity and attention from the public (Ohanian 1991). The underlying question is, if and how the lively interest of the public in ‘the rich and famous’ can be effectively used by companies to promote their brands and consequently increase revenues. As a first step to answer this question, this paper will examine the relationship between celebrity endorsements and brands, by applying a selection of widely accepted principles of how consumers’ brand attitudes and preferences can be positively influenced. Thereby the concepts of source credibility and attractiveness, the match-up hypothesis, the meaning transfer model and the principles of multiple product and celebrity endorsement will be used. The following paragraph will give a brief introduction into the topic of celebrity endorsement, to provide a common framework for the later discussion of the above listed concepts.

A Definition of ‘Celebrity’
Celebrities are people who enjoy public recognition by a large share of a certain group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed, it can be said that within a corresponding social group celebrities generally differ from the social norm and enjoy a high degree of public awareness. This is true for classic forms of celebrities, like actors (e.g. Meg Ryan, Pierce Brosnan), models (e.g. Naomi Campbell, Gisele Buendchen), sports athletes (e.g. Anna Kournikova, Michael Schumacher), entertainers (e.g. Oprah Winfrey, Conan O’Brien) and pop stars (e.g. Madonna, David
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View Forbes.com (2002).

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Bowie) – but also for less obvious groups like businessmen (e.g. Donald Trump, Bill Gates) or politicians (e.g. Rudy Giuliani, Lee Kuan Yew). Celebrities appear in public in different ways. First, they appear in public when fulfilling their profession, e.g. Pete Sampras, who plays tennis in front of an audience in Wimbledon. Furthermore, celebrities appear in public by attending special celebrity events, e.g. the Academy Awards, or world premieres of movies. In addition, they are present in news, fashion magazines, and tabloids, which provide second source information on events and the ‘private life’ of celebrities through mass-media channels (e.g. Fox 5 news covering Winona Ryder’s trial on shoplifting, InStyle). Last but not least, celebrities act as spokespeople in advertising to promote products and services (Kambitsis et al. 2002, Tom et al. 1992).

Celebrities as Spokespersons
Companies frequently use spokespersons to deliver their advertising message and convince consumers of their brands. A widely used and very popular type of spokesperson is the celebrity endorser (Tom et al. 1992)2. According to Friedman and Friedman (1979, p. 63) a “celebrity endorser is an individual who is known by the public (…) for his or her achievements in areas other than that of the product class endorsed.” The cosmetics manufacturer Elizabeth Arden, for example, uses the actress Catherine Zeta-Jones to endorse its perfume (view Figure 1). The reason for using celebrities as spokespersons goes back to their huge potential influence. Compared to other endorser types, famous people achieve a higher degree of attention and recall. They increase awareness of a company’s advertising, create positive feelings towards brands and are perceived by consumers as more entertaining (Solomon 2002). Using a celebrity in advertising is therefore likely to positively affect consumers’ brand attitudes and purchase intentions. To ensure positive results, however, it is critical for advertisers to have a clear understanding of the ‘black box’ of celebrity endorsement. In the following section, selected concepts that have to be considered when using celebrities as spokespersons are discussed.
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Other types of endorsers include the professional expert and the typical consumer (Friedman and Friedman 1979).

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Figure 1: Catherine Zeta-Jones endorsing the brand ‘Elizabeth Arden’ (Source: elizabetharden.com)

Source Credibility and Attractiveness
A central goal of advertising is the persuasion of customers, i.e., the active attempt to change or modify consumers’ attitude towards brands (Solomon 2002). In this respect, the credibility of an advertisement plays an important role in convincing the target audience of the attractiveness of the company’s brand. Pursuing a celebrity endorsement strategy enables advertisers to project a credible image in terms of expertise, persuasiveness, trustworthiness, and objectiveness (Till and Shimp 1998). To create effective messages, celebrity advertisers also have to consider the attractiveness of the spokesperson (McCracken 1989). Source attractiveness refers to the endorser’s physical appearance, personality, likeability, and similarity to the receiver, thus to the perceived social value of the source (Solomon 2002). The use of (by corresponding standards) 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). This behavior mainly goes back to a halo effect, whereby persons who perform well on one dimension, e.g. physical attractiveness, are assumed to excel on others as well, e.g. happiness and coolness (Solomon 2002). 5

By proving in her study that each source has different effects on consumers’ brand perceptions, Ohanian (1991) however warns, that these source dimensions of the celebrity endorser could be treated indistinctive. She therefore urges to pursue a systematic strategy of celebrity-spokesperson-selection. This raises the question which famous person to select to promote a company’s brand. The next paragraph examines whether, and under what conditions celebrities are appropriate in endorsing products.

The Match-up Hypothesis
Literature reveals that a spokesperson interacts with the type of brand being advertised. According to Friedman and Friedman (1979), a famous relative to a ‘normal’ spokesperson is more effective for products high in psychological or social risk, involving such elements as good taste, self-image, and opinion of others. Several research studies have examined the congruency between celebrity endorsers and brands to explain the effectiveness of using famous persons to promote brands (e.g. Till and Busler 1998, Martin 1996, Till and Shimp 1998). Results show that a number of celebrity endorsements proved very successful, whereas others completely failed, resulting in the ‘termination’ of the respective celebrity communicator (Walker et al. 1992). Figure 2 shows some examples for successes and failures.
Celebrity Endorser Liz Hurley Cindy Crawford Bruce Willis Michael Jordan Whitney Houston Jerry Seinfeld Milla Jovovich Company/Product Estée Lauder Revlon PepsiCo Seagrams Nike WorldCom AT&T American Express L’Oréal Success (Yes/No) Yes Yes Yes No Yes No No Yes Yes

Figure 2: Successful and unsuccessful celebrity endorsements (Source: Till and Busler 1998, Walker et al. 1992, Till 1998)

Simply assuming that a person just has to be famous to represent a successful spokesperson, however, would be incorrect, with a considerable number of failures proving the opposite (Solomon 2002). Very well accepted and attractive super stars like 6

Bruce Willis and Whitney Houston failed in turning their endorsements into success. Among the possible reasons identified by several authors (e.g. Tom et al. 1992, Daneshvary and Schwer 2000), including overexposure and identification, the ‘match-up hypothesis’ specifically suggests that the effectiveness depends on the existence of a ‘fit’ between the celebrity spokesperson and endorsed brand (Till and Busler 1998). Empirical work on the congruency theory often has concentrated on the physical attractiveness of the endorser (e.g. Kahle and Homer 1985). According to Kahle and Homer (1985) attractive spokespersons are more effective in terms of attitude change when promoting brands that enhance one’s attractiveness. Though Ohanian (1991) acknowledges a popular person’s ability to create awareness and initial interest for an advertisement, she concludes that this may not necessarily change consumer’s attitude toward the endorsed brand. The author rather states, that “for celebrity spokespersons to be truly effective, they should be knowledgeable, experienced, and qualified to talk about the product.”3 A deeper insight in the complex process of celebrity endorsement is provided by the meaning transfer model, that will be explained in the next paragraph.

The Meaning Transfer Model
McCracken (1989) explains the effectiveness of celebrity spokespersons by assessing the meanings consumers associate with the endorser and eventually transfer to the brand. This perspective is shared by Kambitsis et al. (2002, p. 160), who found the athletes’ personality as being an important factor in influencing “specific target groups, to which such personalities are easily recognizable and much admired.” McCracken suggests a meaning transfer model, that is composed of three subsequent stages. First, the meaning associated with the famous person moves from the endorser to the product or brand. Thus, meanings attributed to the celebrity become associated with the brand in the consumer’s mind. Finally, in the consumption process, the brand’s meaning is acquired by the customer. The third stage of the model explicitly shows the importance of the consumer’s role in the process of endorsing brands with famous persons. The meaning transfer process is shown in Figure 3.

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Ohanian (1991), p. 52.

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Figure 3: Meaning transfer in the endorsement process (Adapted from McCracken 1989)

McCracken’s model is based on the concept of meanings. Celebrities contain a broad range of meanings, involving demographic categories (e.g. age, gender, status), personality and lifestyle types. Madonna, for example, is perceived as a tough, intense and modern women, and is associated with the lower middle class (Walker et al. 1992). The personality of Pierce Brosnan is best characterized as the perfect gentlemen, whereas Jennifer Aniston has the image of the ‘good girl from next door’. McCracken (1989) emphasizes that a famous person represents not one single meaning, but expresses a number and variety of different meanings. According to Martin (1996, p.29), celebrity spokespersons are useful in marketing because they provide a “set of characteristics” that supports consumers in evaluating the presented brand. In contrast to anonymous endorsers, celebrities add value to the image transfer process by offering meanings of extra depth and power, what is complemented by their lifestyles and personalities (McCracken 1989).4 Having determined the brand’s symbolic features by considering consumers’ needs, the advertising company has to select the celebrity who contains the appropriate set of characteristics, and “who will best be able to produce the most favorable response from consumers.”5 L’Oréal decided to promote its lip color brand ‘Shine Délice’ as “sheer, sumptuous, sensual” with “juicy shades…for luscious lips.” (L’Oréal USA 2002) French model and actress Laetitia Casta with her fresh and sexy look best matched the cosmetic
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McCracken (1989, p. 315) further explains, that “celebrities draw these powerful meanings from the roles they assume in their television, movie, (…), athletic, and other careers.” Martin (1996), p. 28. However, besides such constraints as availability or budget, there are further limits in finding the ‘perfect’ match, with no data collection of celebrities (and their meanings) available at present (McCracken 1989).

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brand’s properties and was therefore selected to portray this brand line of L’Oréal. Pairing the model and the beauty product in an advertisement allows the transfer of Casta’s meanings to the consumer good, thus her meanings (e.g. youthful, fresh, appealing) become associated with the L’Oréal brand ‘Shine Délice’ in the mind of the female consumer. Using a different character, for example the actress Andie McDowell, to endorse ‘Shine Délice’, would affect the meaning of the brand in the minds of consumers (Walker et al. 1992). The meanings associated with her, like sophisticated, moral, mature woman, and family-type, are completely different to those of Casta, thus, when transferred, resulting in different associations with L’Oréal’s lip color brand, for example, less youthful, more introverted, and safe. These findings prove, that it is crucial to select the appropriate celebrity endorser, i.e. a spokesperson that is able to promote the desired attributes of the brand.6

Multiple Brand and Celebrity Endorsement
Studying TV and print advertisements, one will realize that either some celebrities are endorsing several brands or a specific brand is endorsed by different spokespersons. These concepts are called multiple brand endorsement and multiple celebrity endorsement respectively. Some spokespersons are “shared” by different advertising firms, i.e. they are promoting more than one brand (Tripp et al. 1994, p. 535). Golf champion Tiger Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta-Jones is used by T-Mobile and Elizabeth Arden. James Bond character Pierce Brosnan promotes Omega, BMW, and Noreico. Top model and actress Milla Jovovich is a spokesperson for a broad range of brands, including L’Oréal, Banana Republic, Christian Dior, Calvin Klein, and Donna Karan. (View Figure 4). The question is, does this special form of celebrity endorsement does affect consumers’ brand attitudes? Following Tripp et al. (1994), the endorsement of as many as four products negatively influences the celebrity spokesperson’s credibility (i.e.
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In fact, Andie McDowell is also a spokesperson for L’Oréal. However, she is used to endorse products for women of her age group, e.g. the hair color brand ‘Excellence’.

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expertise and trustworthiness) and likeability. They further add, that these effects are independent of the celebrity, i.e. the perceptions of even well-liked stars can be influenced. Reasons may be found in the lack of distinctiveness, with one famous person endorsing several products instead of concentrating on and representing one specific brand. Though these findings may be valid, it does not automatically mean that the concept of multiple product endorsement is useless. Further research is suggested on potential positive effects, like transfer of positive brand images, and on the shape of consumers’ response when more than four products are endorsed.

Figure 4: Brands endorsed by top model and actress Milla Jovovich (Source: millaj.com)

More satisfying results have been achieved on the concept of multiple celebrity endorsement. Hsu and McDonald (2002, p.21), studying the effectiveness of the ‘milk mustache campaign’ on consumer perceptions, found that endorsing a product with multiple celebrities “can be beneficial for appealing to various audiences to which the product is aimed.” The watch manufacturer Omega, for example, promotes its brand by matching selected celebrities with the company’s product lines. (View Figure 5).7 With celebrity spokespersons representing a diverse mix of type, gender, and age, they can effectively be used to endorse specific brand lines of a company as shown by the cosmetic manufacturer L’Oréal, which matches its diverse product lines in accordance with the celebrity’s meanings.

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Another example represents L’Oréal, which has used this concept for several years. The cosmetics company’s brands are endorsed by stars like Andie McDowell, Laetitia Casta, Milla Jovovich, Heather Locklear, Vanessa Williams, and Virginie Ledoyen (lorealparisusa.com 2002).

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Figure 5: Celebrities endorsing the luxury brand ‘Omega’

(Source: http://www.omega.ch/omega/wo_star_ambass_entry)

Conclusion
This article addressed a popular method of marketing communication: the use of celebrity spokespersons in advertising to endorse brands. A brief assessment of the current market situation indicates, that celebrity endorsement advertising strategies can under the right circumstances indeed justify the high costs associated with this form of advertising. However, as several failures show, it is essential for advertisers to be aware of the complex processes underlying celebrity endorsement, by gaining an understanding of the described concepts of source credibility and attractiveness, match-up hypothesis, meaning transfer model, multiple product and celebrity endorsement. While these concepts can help to answer the question if and when celebrity advertising investments pay off, it has to be the goal of further research efforts to develop an extensive, consistent and user-friendly tool to avoid arbitrary decisions and enhance the strategic character of celebrity sponsorship decisions.

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References
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