Consumer Attitudes Towards Celebrity Endorsed Products - Dissertation Example

Globalization and the power of the modern media over consumer societies have contributed to the phenomenon of using celebrities to endorse consumer products. Celebrities today have become an important part of the marketing communication process because brands love endorsement and consumers buy into ‘celebrity’ (Crutchfiled, 2010). The use of celebrities to endorse a product has been in use for decades as it was believed that it resulted in more favorable advertisement ratings and better financial performance (Silvera and Austad, 2004). Endorsement increases market acceptability and awareness, thereby creating sales momentum (Mustafa, 2005). Celebrity endorsement has become one of the communication strategies employed by marketers as it helps build a congruent image between the brand and the consumer (Byrne, Whitehead, and Breen, 2003).
In the US celebrities can be found in more than 15% of the advertisements and the numbers are much higher in India (24%) and Taiwan (45%) (Crutchfield, 2010). The value of using celebrities to endorse a product is well accepted in the marketing function. Advertisers use successful individuals from different fields such as entertainment, sports, cuisine, business, and politics and elevate them to celebrity status (Choi, Lee, and Kim, 2005). The mass media plays its role in projecting the images and information about celebrities which enhances the image and characteristics of the celebrity in the eyes of the public. The celebrities thus enjoy public recognition and appear in advertising in association with consumer products or services.
Celebrity endorsements have been prevalent since the 1990s when companies invested more than $1 million in athletic endorsement deals and $10 million in advertisements and in promoting celebrities (Farrell, Karels, Montfort and McClatchey, 2000). During the same period, Nike cut its endorsement budget by $100 million and Reebok International dropped 700 athlete endorsers. This suggests that marketers need to exercise caution when using celebrities as consumers are now less susceptible to, and more skeptical about the link between the product and superstardom (Marketing Week, 2006). It also raises the concern then why do brands still seek celebrity endorsements?
Crutchfield (2010) cites hundreds of cases where celebrity endorsements have indicated that sales of some brands have increased 20% but instances such as the Tiger Wood crisis led to a devastating blow to the celebrity endorsement. Celebrity endorsements are considered to be scary and unstable but an essential marketing activity to the extent that an estimated 50 billion dollars are invested globally on corporate sponsorships and endorsements (Crutchfield, 2010). However, matching celebrities to the product is equally important in achieving the objectives of using celebrities to enhance the brand image. Companies do face difficulties in creating a credible match with the endorser because the endorser must be able to bond with the consumer and boost sales (La Ferla, 2005). Marketers use consumer surveys and focus groups to identify the celebrity while the fashion companies rely on the designers who try to establish synergies. Despite these, their strategies fail. Fashion companies are known to discard celebrities with increasing rapidity as in the case of Louis Vuitton which hired Jennifer Lopez to promote its status handbags.