...Celebrity Advertising: Literature Review and Propositions Peter Yannopoulos* In this paper we review several studies in the area of celebrity advertising. Topics include, why companies use celebrity advertising, achieving the right fit between the brand and the celebrity, the use of athletes as spokespeople, financial considerations of celebrity advertising, and potential risks of celebrity advertising. Next, we develop several propositions and discuss the conclusions and managerial implications of the research. Field of research: Celebrity advertising, Celebrity endorsers, Sponsorship, Celebrity spokespeople 1. Introduction A celebrity endorser is “an individual who is known to the public (actor, sports figure, entertainer, etc) for his or her achievements in areas other than that of the product class endorsed” (Friedman & Friedman 1979). Sponsorship is defined as “providing support for and associating the organization‟s name with events, programs, or even people such as athletes or teams” (Peter & Donnelly 2006). Corporations have chosen both sponsorship and celebrity endorsement as means to increase exposure and brand awareness, as well as reposition their products. The terms celebrity endorsement and sponsorship will be used interchangeably in this report. It has been estimated that about 10% of the dollars spent on television advertising are used in celebrity endorsement advertisements (Agrawal & Kamakura 1995). Because of its importance, it is imperative for managers...
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...The Positive Effects of Basketball Athletes Endorsements by Aristotle Philip Rodriguez Villar October 2015 Chapter 1 The Problem and Its Background Introduction; The use of athletes in advertising campaigns is an ever growing trend. Marketers look for ways to have their products stand out from competing brands. While athletes have been found to endorse both high and low status products, measuring consumers’ attitudes and purchase intentions of these products endorsed by the athletes is important to the success of the product in the marketplace. The success of these endorsed products in the marketplace may also come from star power, which is characterized as unique characteristics possessed by the individual that makes them star worthy.The researcher is familiar with his chosen topic because since he was a little kid he has been a huge fan of basketball and the researcher watched how the basketball industry market and sell their names. He has been updated every releases such as their equipment and other stuff. The researcher preferred this topic because the basketball industry merchandisebecomes one of his collections since he was fond of playing basketball. The researcher findtheir selling items very easy, comfortable, versatile and fashionable to use. For example, a Nike LeBron 12 is very useful in his basketball games and also in fashion sense it is very appealing. One of the most effective and positive associates by transferring different qualities to the product...
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...Effect of Athlete Endorsers on Consumer Purchase Decision of Teenagers for Non–Sporty Products Chua-Lao, Peterlao F. Cristobal, Michelle Ann Manlangit, Stephen John 3AMC Chapter 2 Introduction Nowadays, the utilization of celebrity-athletes on endorsements are very much common. Everyone is aware of the fact that numerous athletes are being contacted by various companies to co-present their products; whether it may be a sports or a non-sports brand product or services. But what we do not know is the concept of how much of an impact the celebrity-athlete impact gives to the audience. It is explained in this part the difference between an athlete’s endorsement on sports brand and an athlete’s endorsement on non-sports brand. It is also stated in this chapter the effects of the two, of what is being perceived by consumers and how they are going to respond based on attitude. Athlete endorsement One of the most common approaches to increase sales is the use of athlete endorsers as to continuously remind them of the product (Ruihley, 2010). According to a study, for an endorsement to be effective, the chosen athlete endorser must be amid the leading performers of his or her career and must seem to have a reliable attitude to the purchasers. (Ruihley, 2010). In a consumer’s point of view, in promotions, it is more engaging and consistent when a celebrity is being used as the endorser; as this forms brand image. (Sertoglu, 2014) But still, efficiency of the celebrity may vary...
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...started getting noticed as a tennis prodigy. She put her first mark in tennis as a thirteen year old when she won The Girls 16-and-under Eddie Herr Championship. 2. From the case how does the Business of Sports impact players’ careers (outside their sports activities)? Establishing a brand is key in any athletes career, in the case of Maria Sharapova she had ‘team sharapova’ that helped her build her brand. Like in Sharapova’s talent and winning are at the forefront of it all, without it it is impossible to build a power brand. Maria had all the talent in the world and winning the 2004 Wimbledon she exploded as tennis superstar on the court but also off the court as Max Eisenbud said “my phone did not stop ringing”. An athlete takes that winning image and sales it to corporations as the perfect person to the face of their brand. Athletes apart from their winning on the court, they have endorsements, licensing deals and merchandising the players earn huge amounts of money in the business of sports. Every endorsement is carefully chosen to fit and build an athlete’s power brand and that image that is built is what companies invest on when they sign an athlete to sale their brand. 3. The case spends several pages on the Tennis sector of Sports. Summarize in a few paragraphs the key elements of Tennis industry. 4. What part did Max Eisenbud play in the development of Maria’s career? Max Eisenbud played an enormous part in...
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...television advertisements, to take in the company’s future marketing campaigns. Growing Under Armour Company to a $10 billion brand will require the rolling out of successful marketing campaigns. The “I Will What I Want” marketing campaign had gone viral because it had been launched on a multichannel platform with social media as the core channel. Additionally, Under Armour’s management has to address the issue of whether the company should continue using large amounts of money to enlist famous athletes to advertise the brand or should if it could rely on the services of ordinary people in pushing brand awareness. Famous athletes have proven to be a hit with regards to growing brand awareness. However, celebrity endorsements can also be a major risk as seen in the Tiger Woods’ case. There are brands that are relying on non-celebrities in their marketing campaigns and have been very successful. Therefore, Under Armour has to reach a decision with regards to relying to celebrity endorsements or using the services of everyday people in the company’s marketing campaigns. Problem Analysis In the first issue, Under Armour’s management has to decide if the company should continue to target and grow its female market segment. The company’s first expansion strategy into the female segment yielded good results with the segment accounting for a larger percentage of the company’s annual sales. This is an indicator that the female market segment has a huge potential that the company should...
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...audience in a global scale. Connecting people from around the world, this has been the most effective way of communicating and sending a message to the people. And mass media led companies and alike to have a new way of reaching their prospects and consumers through advertisements. Advertisements of products on radio, television, billboards and others alike have been around for more than 300 years. And as we fast forward in time, it has evolved from simple and in-your-face commercials to the lavish and extravagant advertisements seen and heard by us. And other companies let the celebrities do the talking. Sports icons, movie stars and musicians, to name a few, are used to endorse a company’s product or service. It has been a trend for the companies, small and big, old and new, to have a “face” that can carry the name of the product or service they will provide to their customers. Having a celebrity endorser to a company comes with a very big price, literally. They...
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...What is behind every major brand in the world? An iconic sportsman endorsing it. The celebrity status of sportsmen all over the world has continued to grow, especially in the past decade. Sports stars are often regarded as role models and therefore it has been suggested they should only be able to endorse certain brands and messages. I will be arguing in this essay through the example of NBA star LeBron James how I agree due to sporting stars growing influence on society, especially children and teens, they should not be allowed to endorse negative brands or messages such as unhealthy food. The influence of sporting stars in today’s society is major. Most athletes idolised by millions around the globe, kids holding onto every word that comes from their mouths. Think of your childhood idol for a second. When you are a child you are so infatuated by your idols you want to be just like them, do what they do, eat what they eat and wear what they wear. With this kind of influence on thousands of people caution needs to be taken when deciding the brands and messages one can endorse. A case study completed by youth in India provides proof of the influence Sporting Stars can have on our youth. About 14.1% of the children tested admitted to purchase products that appear in ads endorsed by their sporting heroes while 51.6% youngsters say that they make the purchase however, not always. 20.4 % say that they never buy products that appear in ads. Another 13% say that they do not want...
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...Celebrity endorsement, this is when a Brand uses a celebrity to help sell there product, service or charity. This may be in adverts, creating a line, or in the case of charity attending different events, fundraising or being a face of a charity. There are both advantages and disadvantages of using celebrity endorsements, for many brands it is about them being noticed, and catching the attention of there market and many brands think that by using a celebrity known in society it will help entice the consumers in. One of the main points that have become noticeable is the way different genders see an advert and the gender of the celebrity in the advert. “There is some evidence that women may be more favorably disposed toward celebrity endorsers than men.” Lake, Reece, Rifon, (2010 page p30-32) Lake et al (2010) showed in their study that men look at the more noticeable aspects of the advert where as the women look at it in a broader view and pick up different cues. In one study done by (Peetz, Park and Spencer, 2004) the results showed that male athletes were known 4 times greater than women athletes are known, this may prove that for Brands advertising sportswear they may be more inclined to use a male campaigner. Although (Ohainian, 1991) stated in her study that gender it was not an issue, it was the perceptions of the celebrity’s attractiveness, trustworthiness or expertise. In recent years though some of the sporting celebrity’s have been putting their brands under strain...
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...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’ 2 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...
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...Michael Jordan vs. Kobe Bryant COM/155 July 8, 2012 Oksana Vorobieva In today’s generation of basketball superstars, there is one distinguished player, Kobe Bryant that holds a reflection to another known superstar, Michael Jordan in his ability to play the game, offensively and defensively; however, they differ in their overall performances. Although sports fans attempt to compare the two players, many will agree that Michael Jordan carries the best offensive and defensive numbers, while Kobe Bryant holds the title of the youngest all-star to ever enter the National Basketball Association. Both Jordan and Bryant were offered huge endorsement deals, with Kobe Bryant taking the lead as one of the largest global brands, in basketball history. The game of basketball is a rewarding sport that allows its players to give back to the community. There is no competition, when it comes to giving back to the community, as each player is equally involved in charitable organizations. In the professional basketball world, sports fans will agree that Michael Jordan is the better player, while other fans are loyal to Kobe Bryant. When looking at offensive and defensive numbers, objectivity and a hard look at the facts leaves one conclusion without a doubt, that Michael Jordan is one of the greatest players in NBA history. He is famous for blocked shots, rebounds, and scoring an average of 30 points per game, during his career (Squidoo, 2012). As an offensive player...
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...brand of sports food and beverage product built around the line of sports drinks. It is manufactured by Pepsico and is distributed in 80 countries worldwide. The beverage was first developed in 1965 by researchers at the University of Florida, to replenish the combination of water, carbohydrates, and electrolytes that the school's student-athletes lost during rigorous athletic competitions. Its name was derived from the collective nickname of the university's athletic teams, "the Gators". Gatorade has been an admired brand of beverage in the United States and the main thing that has worked for the brand is the advertising strategy, which involves popular sports stars and clubs associated with the brand. We intend to present the positioning of Gatorade, to understand the various strengths, weaknesses, opportunities and threats of the brand in the Indian context and to study a few hypotheses surrounding Brand Gatorade with the Indian consumer in mind. INTRODUCTION PURPOSE & OBJECTIVES Gatorade has been a 45-year-old brand and has been a leading sports drink ever since its inception in 1965. It was formulated to aid hydration in athletes and as replenishment for body fluids lost during physical exertion that is caused by sports....
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...INTRODUCTION Lady Footlocker is part of the athletic shoe and Apparel Empire owned by Footlocker. This includes other stores owned by the Footlocker chain such as Foot Action, Champs, and East Bay. Lady Footlocker was founded in 1982 in Joliet, Illinois. Lady Footlocker originates from the Woolworth family, as does Footlocker, and its other chain stores. Over the last quarter century, Lady Footlocker has risen to become the largest retailer of women’s athletic footwear, apparel, and accessories. Lady Footlocker has over 600 retail locations throughout the United States, Europe, and Canada. Most Lady Footlocker locations boast an average retail space of 2200 square feet. Lady Footlocker prided itself on providing the best in woman-to-woman service and product selection. BACKGROUND OF THE PROBLEM Lady Footlocker is brand of Foot Locker, Inc. to meet women’s consumer’s needs in athletic footwear and apparel. Foot Locker, Inc. is an American sportswear and footwear retailer, with its headquarters in Midtown Manhattan, New York City, and operating in approximately 20 countries worldwide. Formerly known as Venator Group, Inc., it is the successor corporation to the F.W. Woolworth Company. Foot Locker, Inc. operates the eponymous “Foot Locker” chain of athletic footwear retail outlets (along with “Kids Foot Locker” and “Lady Foot Locker” stores), Champs Sports, Footaction USA, and Eastbay/Footlocker.com Eastbay/Footlocker.com own the rights to Final Score,...
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...Today, the Nike Swoosh is recognized around the world. This is the result of more than 40 years of work and innovation. It signed the first athletes to wear its shoes in 1973. Early on, Nike realized the importance of associating athletes with its products. The partnerships help relate the excellence of the athlete with the perception of the brand. Through focus groups and surveys, Nike discovered the pyramid influence, which shows that the mass market can be influenced by the preferences of a small group of top athletes. After it realized this effect, Nike began to spend millions on celebrity endorsements. The association with the athlete also helps dimensionalize the company and what it believes in. With Nike, this was, and remains, extremely important. It wants to convey a message that the company’s goal is to bring innovation to every athlete in the world. Nike also uses the athletes to design new products by attempting to meet their individual goals. Explaining Nike’s strategy of celebrity endorsements, Trevor Edwards, vice president of U.S. Brand Management, says that the sports figures, such as Ronaldo, Michael Jordan, and Tiger Woods, who have endorsed Nike brands, all have represented excellence in some way. Nevertheless, the athletes also have a personal side, such as their drive to win or their ability to remain humble. All these qualities speak something about the Nike brand; this not only benefits the brand, but also helps to define what the Nike...
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...credibility and other variables. This is the quantitative research, and 301 participants received the questionnaires. All of the participants were divided into two groups: the low- and high-source-credibility group. In H1, the source credibility was proved to have positive influence towards the purchase intention and product favorability. H2 was investigated that the audiences’ favorability to the overall advertisements can influence the purchase intention. However, in H3, this research cannot prove the dominant elements which can significantly influence the perceived price. Moreover, the separate dimensions of source credibility and overall source credibility showed different impacts towards the buying behavior. In conclusion, the celebrity endorsers with highly source credibility create positive associations and influences to the target audiences. 2 Acknowledgements I would like to thank...
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...think that marketing is very important when it comes to success because without marketing there would be a lot to question and companies would not exactly know who their target customers are. I would say that my take on marketing involves advertising most if all. Marketing would be planning on how to sell your product which celebrities to use in your commercials and ads. I would also say that marketing involves research on who is more likely to buy your products compared to everyone else. According to “Definition of Marketing” (n.d.), “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” Marketing is the activities of a company associated with the buying and selling of a product or service which includes advertising, selling, and delivering products to people ("Marketing Definition ", n.d.). According to "Marketing Definition" (n.d.), “People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements, and general media exposure.” Even the small tasks such as thank you letters, playing golf with a client, returning calls promptly, and meeting a past client for coffee are considered marketing ("Marketing Definition ", n.d.). Based on these definitions I would say that marketing plays a big role in organizational success...
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