Negative Impact On The Endorsed Brand Marketing Essay

1.0 Abstraction

The chief purpose of this research is to analyze the negative deductions on the trade name caused by the injudiciousness on the portion of the famous person subscriber and to propose the appropriate famous person crisis direction methods that can be initiated to counter it.

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2.0 Introduction:

Celebrities presents have become the basis of advertisement. They influence and impact people from all walk of life with their life style. Their ‘iconic ‘ position is admired by people of all age groups and therefore it is no surprise that people want to have on or eat or ape whatever their favorite famous person does even if they can non be like them. Therefore, trade names all over the universe usage assorted famous persons ‘ public acknowledgment as a tool to showcase their merchandises and attempt and influence consumers to purchase them.

Celebrity indorsement is defined as “ any person who enjoys public acknowledgment and who uses this acknowledgment on behalf of a consumer good by looking with it in an advertizement ” ( McCracken, 1989, p.311 ) . The flexibleness of utilizing famous person indorsements across a broad portfolio of merchandises is another ground why companies prefer famous person advertisement. Researchers Atkin and Block in 1983 have found that the usage of famous person indorsements in beer advertisement created favorable ad evaluations and higher positive merchandise evaluations. Previous research has proven the success of a broad scope of merchandises courtesy of famous person indorsements. However, like every other promotional tool, famous person indorsements excessively have its portion of hazard. Because a famous person ‘s life is closely scrutinized by the media and public likewise, any title or action committed on his/her portion, which is deemed as an “ injudiciousness ” by these groups, creates a negative feeling non merely for him/her but besides for the trade name ( s ) he/she endorses. Several instances in the yesteryear have seen famous persons going liabilities for trade names they endorsed. For illustration, Pepsi had to cover with contentions affecting famous persons like Madonna, Mike Tyson who endorsed Pepsi ( Till et al, 1998 ) . This shows how indispensable it is to hold harm control methods in topographic point during such crises to salvage the “ affected ” trade name of possible fiscal deductions. This research besides aims to cover with how appropriate famous person crisis direction methods can be initiated depending on the nature of the crisis involved.

2.1 The Role of Celebrity in Ad

“ A famous person subscriber is defined as any person who enjoys public acknowledgment and who uses this acknowledgment on behalf of a consumer good by looking with it in an advertizement ” ( McCracken, 1989, p.310 ) .

Celebrities are used in advertizements because of the position they enjoy in society, to advance a merchandise, service or charity. This is known as famous person stigmatization. It can be in assorted signifiers like advertizements for a certain merchandise, service or charity, to a famous person go toing PR events ( Hollensen, 2007, p.450 ) . For illustration, David Beckham ‘s underwear advertisement run for Emporio Armani was started off by Beckham run intoing 300 fans who qualified for a particular VIP meet and greet ( Fashion Matters, 2009 ) .

Celebrities have a great power of pulling consumer ‘s attending to merchandises they endorse. Michael Jordan was one of the early famous persons who started this phenomenon in 1985 with Nike by establishing Nike ‘s Air Jordan in the USA. The run had great success with Nike Air Jordan taking the state by storm ( Hollensen, 2007, p.451 ) .

3.0 Research job

The undermentioned exploratory research analysis aims at proposing assorted ideal harm control techniques that a trade name or company ‘s direction ought to see in order to debar or at least limit the harm caused by their subscriber ‘s “ inappropriate ” behavior or behavior in their private lives which has come under public examination. The alteration in the general attitude towards the “ affected ” trade name would besides be investigated. As such, the survey will take to clear up if certain trade names will stay unaffected following the famous person ( subscriber ) crisis. However, it is suggested that this depends upon the nature of the injudiciousness and besides if there is a nexus between the committed injudiciousness and the indorsement relationship ‘s beginning features.

This survey is capable entirely to companies who use famous persons to back their merchandises and would give directions an chance to understand what nature of an injudiciousness could impact their concern and to what extent would it impact their repute, therefore finding whether or non to retain the “ corrupt ” famous person subscriber in that instance. Research besides would be done to explicate, in such a instance, the ideal stairss to counter the negative promotion and to avoid fiscal deductions for the company. An illustration would be to look for alternate trade name promotional techniques after taking the “ corrupt ” subscriber. But foremost, we will familiarise ourselves with the methods by which famous person indorsements work, which are based on beginning consequence, intending transportation and associatory acquisition which will be discussed farther down.

3.1 Aims

To look into how and to what extent negative promotion about the famous person subscriber subsequently affects trade name perceptual experiences and buy behavior.

To research the extent to which the nature of the offense affects the trade name perceptions/purchase behavior.

To research and propose assorted harm control/reputation direction techniques depending on the nature and gravitation of the famous person crisis.

4.0 RESEARCH APPROACH DEVELOPMENT

4.1 Literature Review

4.1.1 Why usage Celebrity Endorsements?

Today ‘s consumers are bombarded with advertisement messages every individual minute. Because of the increasing jumble in the advertizement sphere, advertizers know that they ought to come up with eye-catchy techniques in order to distinguish their merchandise ( s ) and do them stand out from the remainder of the competition and be noticed by the mark crowd. A 2007 IBM on-line study of consumer digital media and amusement wonts showed that audiences are more in control than of all time and progressively savvy about filtrating selling messages ( IBM Online, 2007 ) . Plus, with the current economic downswing still far from over, consumers have become wary of their disbursement wonts and are now fall backing to selective purchasing which means that sellers have got to work harder to sell their merchandise ( s ) .

Thankfully, over the old ages, society ‘s increasing compulsion with the famous person civilization has served as a moneymaking chance for the contemporary seller for indorsement intents. Galician ( 2004 ) indicates in a survey that a monolithic 83 % growing in indorsements was recorded from 1977 to 1997 ( Lecture Notes, Thwaites, 2010 ) . Harmonizing to Segrave ( 2004 ) , “ it is much better to hold the prima character thrust a auto that you want to sell, or utilize a aroma, or imbibe a soft drink as compared to a normal commercial, as you get a merchandise message and indorsement from a major star at the same clip ” ( Lecture Notes, Thwaites, 2010 ) . Well known famous person faces have found to “ capture attending, and are processed more expeditiously by the encephalon than ‘ordinary faces ‘ ” ( Buttle et al. , 1999 ) . Celebrity indorsement besides gives brands the chance to distinguish from their rivals and therefore increase its ability to be identified in a extremely littered market ( Burroughs & A ; Feinberg, 1987 ) . This is besides utile where consumers perceive few differences between viing trade names ( Solomon, 2006 ) . Celebrities are effectual subscribers because of their symbolic, aspirational mention group association and by virtuousness of their famous person profile and prosecuting properties ; famous persons are able to reassign these image values to the merchandises ( Lecture notes, Thwaites, 2010 ) . Talking about image transportation, McCracken ( 1989 ) states that companies should ideally take a famous person who portions similar qualities to that of the merchandise, therefore enabling the transportation of these qualities from the famous person onto the merchandise and the consumer.

Since all trade names are competing for consumer attending, the demand to travel the consumers along the lines of the AIDA model should be considered. Premeaux ( 2009 ) noted that in the instance of famous person indorsements, the chief AIDA influence is the subscriber ‘s ability to acquire clasp of attending. Harmonizing to Freiden ( 1984 ) , famous persons are effectual subscribers because they are viewed as extremely trusty, credible, persuasive and sympathetic. The undermentioned subdivision will sum up the literature environing how famous person endorsements work.

4.1.2 How does Celebrity Endorsement work?

4.1.2.1 Source Consequence

Meenaghan ( 1995 ) states that “ the beginning consequence theory is based on the belief that assorted features of the perceived beginning of the communicating have a good consequence on message receptiveness ” . This suggests that perceived features of the beginning influence the strength of the beginning ‘s message ( O’Mahony & A ; Meenaghan, 1998 ) . The beginning credibleness and beginning attraction theoretical accounts inform research and contemplation on the subject of famous person indorsement and are designed to find the conditions under which the message transmitter or beginning is persuasive ( McCracken, 1989 ) . McCracken ( 1989 ) goes on province that several earlier surveies ( Atkin & A ; Block, 1983 ; Friedman & A ; Friedman, 1979 ) have validated the fact that celebrities owe some of their effectivity as selling devices to their credibleness and attraction. However, he highlighted insufficiencies in these theoretical accounts by bespeaking that they can non explicate indorsement ‘s most cardinal characteristics such as the fact that “ endorsement consists of the transportation of these significances from the famous person to the merchandise and from the merchandise to the consumer ” . As a consequence of which he proposed the “ Meaning Transfer Model ” .

4.1.2.2 Meaning Transportation

McCracken ( 1989 ) suggested that “ famous person indorsement is a particular case of a more general procedure of intending transportation ” . Therefore, harmonizing to the “ Meaning Transfer Model ” , companies should carefully choose the appropriate famous person whose single features resemble that of the merchandise, therefore enabling a transportation of these features from the famous person to the merchandise and eventually to the consumer.

4.1.2.3 Associative Learning

“ Associative acquisition rules are based on a construct of memory as a web dwelling of assorted nodes connected by associatory links ” ( Till & A ; Shimp, 1998, Pg 68 ) . The transportation of feelings towards a famous person and/or significances in the famous person to the endorsed trade name is expected to go on through their recurring association and this perennial exposure helps to construct strong associatory links between the trade name and the famous person in the heads of the consumer ( Till & A ; Shimp, 1998 ) . This is seen in the instance of Coca-Cola ‘s repeated coupling with Bollywood star Aamir Khan in its Indian advertizements.

4.1.3 Match-up Hypothesis_

Empirical surveies have shown that this endorser-product congruousness positively affects consumer perceptual experiences of credibleness, attitudes, callback, acknowledgment, purchase purpose, and a willingness to pay higher monetary values ( Hsu & A ; McDonald, 2002 cited in Thwaites, Lecture Notes 2010 ) . Success of the indorsement is improbable if there is no lucifer between the merchandise and the famous person backing it. It is the supposed connexion between the subscriber and the trade name, or associatory nexus that causes the subscriber consequence ( Till, 1998 ) .

Although match-up theory sufficiently explains why some indorsements are more successful than others, it does non take into history any other factors that might act upon an effectual celebrity/brand partner offing. Shimp ‘s ( 2003 ) “ No Tears ” attack offers a more realistic sum-up of the factors that should be taken into consideration when choosing a suited subscriber. These are shown in the tabular array below.

4.1.4 Negative Impact On Trade names Caused By Celebrity Crisis

“ One of the hazards of advertisement tied to a famous person is that your image gets carried by person you ca n’t command, ” Jonathan Bernstein, president of Bernstein Crisis Management ( Associated Press Worldstream, 2009 ) .

Brand indorsements are deployed to pull more attending in favor of a trade name but non ever things go every bit planned. This by and large happens when a famous person backing a certain trade name commits an injudiciousness which so becomes public cognition, ensuing in a negative feeling of the famous person that carries onto the endorsed trade name every bit good, impacting its trade name perceptual experiences and fiscal public presentation.

The unfaithfulness dirts environing Tiger Woods is a great illustration of how things go incorrectly between a trade name and its famous person subscriber. The dirt affecting the golf player is said to hold cost around 12 billion dollars in losingss for portion holders of companies endorsed by Woods and caused many of the golf player ‘s commercial patrons to endorse off from him ( The Gazette, 2009 ) . Accenture, the company which had built its full run about Tiger Woods based on his success severed its ties with Tiger Woods and released a statement stating the golf player “ is no longer the right representative ” .

4.1.5 Celebrity Crisis Management

Since it has been established in several surveies that negative information about famous persons does hold inauspicious effects on their endorsed trade names ( Edwards & A ; La Ferle, 2009 ; Votolato & A ; Unnava, 2006 ) , it is all the more of import that the direction makes the right determination with respect to the future class of action after the famous person crisis jailbreak which would thenceforth find their trade name ‘s mentality in the public oculus and perchance its destiny excessively. Some of the normally taken direction actions are remotion of the famous person, issue of a public apology or straight-out denial of the allegations made. However, really small academic research has been carried out in this aspect although there are several articles and instance surveies which have been authored by crisis direction industry professionals and specializers.

4.1.6 Decision

The literature reappraisal has considered why famous person indorsements are basically used in advertisement. The assorted methods by which famous person indorsements work have besides been examined. It is clear from the bing research that a company must see famous person and trade name lucifer up and famous person credibleness as the cardinal properties while choosing their famous persons. The reappraisal besides points out that negative information adversely affects the trade names and why it is of import to deploy the ideal crisis direction schemes to counter it before it is excessively late. The proposed survey intends to look into these issues further.

5.0 RESEARCH DESIGN AND METHODOLOGY

5.1 Research Purpose

The undermentioned research aims to look into the extent to which negative promotion about the famous person subscriber affects trade name attitude and purchase behavior and to research if the nature of the injudiciousness is a specifying variable in this facet. Further surveies would besides be carried out to propose assorted famous person crisis direction techniques after taking into consideration the strength of the endorser-product nexus and nature and timing of the crisis.

5.2 Research Strategy

Primary informations will be collected utilizing the study technique of structured and self-administered questionnaires. The independent variable of negative information will be manipulated by researching the chairing factors of matchup and the nature of the injudiciousness on subscriber effectivity through the creative activity of fabricated endorsed trade names. This will be accounted for by utilizing real-life famous persons, therefore bettering the ability to generalise findings and to formalize the probe. Suggestion of famous person crisis direction methods will be done after sing other chairing variables such as the strength of the endorser-product nexus and gravitation and timing of the crisis.

5.3 Method Choice

The following survey will utilize the individual informations aggregation technique of self-administered questionnaires and matching analysis process, referred to as a “ glandular fever method ” ( Saunders et Al, 2007 ) . Advantages to this quantitative informations aggregation technique include the ability to obtain nonsubjective and mensurable consequences. Kruger ( 2003 ) states that ‘quantitative methods allow us to sum up huge beginnings of information and facilitate comparings across classs and over clip ‘ . The survey besides eliminates experimenter prejudice though measuring unknown participants and administrating the questionnaires in the absence of the experimenter.

5.4 Credibility of Research Findings

The following survey considers possible menaces which may impact the dependability of the research findings. For illustration, subject/participant prejudice is accounted for by utilizing anon. questionnaires. Care will besides be taken to guarantee nonsubjective analysis of consequences. Observer mistake is controlled by pre-testing and administrating indistinguishable questionnaires to respondents and by avoiding equivocal inquiries. Respondents will be given the option to supply feedback.

5.5 Ethical motives

Since real-life famous persons are used during the class of the experiment, it will be made clear to participants that the information refering famous person indorsement is wholly fabricated. Respondents would besides be assured that the information collected will non be passed onto any third-parties.

5.6 Data Collection

5.6.1 Sample

The mark population of this survey comprises of male and female British citizens aged 16 – 35 as people in this age class are capable to high degrees of advertisement exposure. Furthermore, due to clip and cost restraints, this sample is easy accessible. The ground for choosing this wide sample is to generalise the consequences to a wider population. Proper analysis will be carried out and the consequences taken into history to avoid any possible impact that age may hold on the research. No literature has found grounds of a important impact of sex on attitudes towards famous person indorsements ( Rines, 2004 ) , so both sexes are included. Attempts will be made to maintain the ratio of males to females in the survey every bit equal as possible so as to avoid any experimental prejudice in the consequences.

5.6.2 Sampling Technique

A convenience sampling technique will be used for street interviews as it is the least clip devouring and most cost effectual technique ( Malhotra & A ; Birks, 2007 ) . Judgmental trying which is besides convenient for the same grounds as above ( Malhotra & A ; Birks, 2007 ) would be carried out to take and interview the appropriate corporate single handling indorsements since they comprise of the 2nd set of respondents.

5.6.3 Sample Size

200 random participants will be used in the survey. This is based on suggested sample size at the 5 % assurance bound ( Saunders et Al, 2007 ) and adapted given the clip and cost restraints of the survey. This sample size is considered sufficient given the figure of participants used in similar surveies ( e.g. O’Mahony & A ; Meenaghan, 1998 ) . Besides, 10 sponsorship executives from assorted industries

5.6.4 Questionnaire Development

Self administered questionnaires will be used as they are simple to administer, bring forth dependable consequences and generate high response rates ( Malhotra et al. , 2004 ) . They remove possibility of interviewer prejudice and cut down the likeliness of societal desirableness responses ( Aaker et al, 1999 ) . The respondents would be preponderantly interviewed personally in the signifier of street interviews. The advantage of this method is that it makes it more efficient for the respondent to come to the interviewer than for the interviewer to travel to the respondent. Since face-to-face interaction with the respondents is possible, the interviewer can administrate, explicate and clear up complex inquiries, therefore giving more flexibleness for informations aggregation ( Malhotra & A ; Birks, 2007 ) . Email studies would besides be conducted to bring forth consequences faster from familiar respondents.

A sample questionnaire will be developed and administered to a few respondents to measure its quality before fixing the chief questionnaire. A fictional trade name will be created for each of the pre-determined famous persons to back based on the sensed best tantrum of merchandise class. This will be used in the chief questionnaire and serves to command for the chairing consequence of trade name association set size.

Questionnaires will be developed to prove how attitude towards the trade name and purpose to purchase are affected as a consequence of exposure to negative information about the famous person. 4 questionnaires with be developed tailored to each of the 4 experimental conditions outlined in the diagram below. Existing, valid concepts will be used to find attitude towards the famous person, attitude towards the trade name and purpose to buy ( Spears & A ; Singh, 2004 ) . Thereafter, instance surveies of old famous person crises would be analyzed to understand and explicate the ideal crisis direction schemes based upon chairing factors like nature of the injudiciousness, famous person image, trade name attitude, etc.

5.7 Data Analysis

A MANCOVA will be used to look into the impact of nature of the injudiciousness and congruity between the famous person characteristic key to the indorsement and the injudiciousness on trade name perceptual experiences and purpose to buy. In instance of any congruency, comparings will be made thenceforth to find the nature of the relationship. The MANCOVA will besides find whether attitude towards the trade name determines the relationship between negative information and purchase purpose.

6.0 Time Scale:

Undertaking

Duration

Coating

Literature reappraisal, Finalize Objectives and bill of exchange reappraisal, Draft Research Strategy and Method. Submit research proposal.

2 months

End of May

Develop, trial and revision questionnaire, enter informations into computing machine and analyse informations.

1 month

End Of June

Draft Findings Chapter, update and complete literature, and staying chapters.

And submit to coach for feedback.

1 month

End of July

Revise Draft and Format for entry

2 Weeks

Mid of August

Print, Bind and Submit

End of August