CHAPTER TWO THEORITICAL FOUNDATION

Transcription

1 CHAPTER TWO THEORITICAL FOUNDATION In this chapter, the author wants to elaborate the theoretical foundation of this thesis. The author will describe theories that relates to the effectiveness of celebrity endorsement and its effect to purchase intention Celebrity Endorsement History Advertising started playing an active role when it came to the development of society in economy in the early 1930s. Celebrities acted as spoke persons, in order to advertise and promote products, services and ideas (Lindeberg, 2004). Those celebrities came from the art scene, modeling, sports and the movie industry (Kambitsis, Harahousou, Theodarakis & Chazibeis, 2002). The first advertisers used celebrities as pioneers in order to dictate trends. Lillie Langtry, British actress, appeared on a package of Pears Soap in 1893, she became the world s first celebrity endorser. The use of celebrity spokespeople has been on the rise (Advertising Age 1978). A 1975 Gallup and Robinson study (reported by Forkan 1975) estimated that 15 percent of prime time television commercials featured celebrities. By 1978 the number was reported to be over 20 percent. According to a recent report, individual in the advertising field were said to agree that celebrities are being sought out to endorse product as never before (Sherman 1985). 2.2 Celebrity O Guinn, Allen, Semenik (2009) stated that Celebrity is a unique sociological concept, and it matters a great deal to advertisers. Twenty-first-century society celebrity has become a new culture that affects a lot of business industry. Current thinking is that in a celebrity-based culture, celebrities help contemporary consumers with identity. Identity in a consumer culture becomes a fashion accessory prop for a day. By definition a 9

2 10 celebrity is a well-know personality (actor, entertainer, or athlete) who is known to the public for his or her accomplishment in the areas other than the product class endorsed (Shimp, 2003). Celebrity in author s personal opinion is an icon that can be in form of person, dead person, and cartoon character such as Mickey Mouse. Jagdish and Wagner (1995) state that celebrity make advertisement s believable and enhance message recall. Furthermore, celebrities aid in the recognition of brand names, create positive attitudes towards the brand and create a distinct personality for the endorsed brand. Byrne et al (2003, p.289) state celebrity can build, fresh and add new dimensions. What celebrities stand for enhances brands and they save valuable time in terms of creating the credibility a company has to create in order to build its brands by transferring their values to the brand. When consumers see a credible celebrity endorsing a product they think the company must be OK 2.3 Endorsement Past research documents a general tendency for consumers believe in the purity of the motives of celebrity endorsers; it is likely that this tendency varies substantially both consumers and endorser. Tripp et all (1994) showed that celebrities who endorse several products are viewed as less credible endorser, than those who endorse only a single product. Louie and Obermiller (2002) also demonstrated that celebrities who are blamed for negative events. (E.g. accidents) can have detrimental effects on the products they endorsed. In other hand, the effectiveness of a celebrity endorser is dynamic, dependent on the celebrity, the product, and perhaps even societal conditions at the same time and place where the advertisement is shown. So, it could be productive to ignore the use of traditional measures of the celebrity endorser s trustworthiness or credibility in general. In easement of directly measuring the degree to which individuals evaluate the celebrity as liking the endorsed product agree viewing the advertisement. Such evaluations fit under a class of judgment that has been referred to as correspondent inferences (Gilbert and Malone, 1995). Correspondent inferences more generally refer to any

3 11 judgment in which observers use an individual s behavior to assume similar characters in that individual. The author proposes that correspondent inferences are a direct measure of celebrity credibility in the specific context of the advertisement and thus should predict consumers attitudes toward the advertised product. In the other hand endorsement is similar with testimonial. According to Duncan (2008), endorsement /testimonial is a uses celebrities, experts, or typical users to deliver a message endorsing a product. Endorsement used in categories where there is product differentiation or where credibility is important. Endorsements can work if the person or group is right for the product. Conducting endorser strategy is one of the most popular marketing practices for enterprises. A successful endorser strategy can increase the level of consumer recall toward product information (Friedman and Friedman, 1979),strengthen consumer s recognition to endorsed brands, positively affect consumer s recognition to endorsed brands, positively affect consumers attitude to low involved product (Kamins, 1989; Petty et al., 1983), increase consumers increase consumers purchase intention and preference toward brand (Bower and Landreth, 2001; Kamins, 1989; Lafferty et al., 2002; Marthur et al., 1997; McCracken, 1989) 2.4 Celebrity Endorsement Celebrity endorsement is advertisements that use an expert or celebrity as a spokesperson to endorse the use of a product or service, By O guinn, Allen, Semenik (2009, p691). Other than that, celebrity endorsement has been defined as: any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (McCracken, 1989, p.311). Today, TV stars, movie actors, famous athletes and even dead personalities are widely used to endorse products (Shimp, 2003). According to Kambitis et al (2002) today s use of celebrities in advertising strategies are becoming more and more sophisticated and complicated. From 1979 to 1997 the popularity of using celebrites in advertising in USA

4 12 increased from 15 to 25 percent and now days more than 20 percent of all TV commercials feature celebrities (Belch & Belch, 2001). As the Author sees, Celebrity endorsement can have benefit to the advertising as well as effecting the consumer perception in fitness between celebrity and consumer. The benefit of celebrity endorsement as described by Jagdish and Wagner (1995), state that celebrities make advertisement believable and enhance message recall. Furthermore, celebrities aid in the recognition of brand names, create positive attitudes towards the brand and create a distinct personality for endorsed brand. Thus, the use of celebrity endorsements is an advertising strategy that should enhance the marginal value of advertisement expenditure and create brand equity by means of the secondary association of a celebrity with a brand. Celebrity endorsements become increasingly important to advertisers. This is especially true since past empirical research has shown celebrities to be well liked and oftentimes attractive, though not always credible and effective spokespeople (Atkin and Block 1983; Freiden 1984; Friedman, Termini and Washington, 1977). Till also stated that the usage of celebrity endorsement increases the pool of consumers who begin to become aware of the link between brand and the celebrity. Other than that, the effectiveness of celebrity endorsement has focused primarily on personal attributes of celebrity that enhance his or her persuasiveness. For example, a number of researchers have used models in which source credibility, typically viewed as a function of trustworthiness and expertise, is the primary factor determining how influential the endorser will be (Ohanian, 1991; Lafferty and Goldsmith, 1999; Lafferty et al, 2002). 2.5 Effectiveness of Celebrity Endorsement in Consumer Congruity In this part the Author will explain more about the theoretical aspect that connects with the congruity of celebrity endorsement advertisement with consumer.

5 13 According to Shimp (2003), two general attributes are important when determining the effectiveness of the endorsers as well as to communicate effectively; credibility and attractiveness. Sub-attributes to credibility are trustworthiness and expertise. The first general attribute, credibility, refers to a celebrity s believability and dependability. Expertise refers to the specific skills, knowledge or abilities that the endorser has about the brand. The second general attribute, attractiveness, consist of three sub components (Shimp, 2003). First is physical attractiveness. Second sub attribute is respect, or admiration of one s accomplishments. Celebrities can be respected for their athletic power, appealing personality and acting ability. The last sub attribute is similarity, which concerns how the endorser matches the audience in terms of age, gender, and ethnicity. According to Shimp about the two general attributes that are important to determining the effectiveness of the endorser as well as to communicate effectively. Trustworthiness refers tp general believability of the endorser, and is thus broader but conceptually similar to correspondent inferences about the endorser. Expertise refers to the product knowledge of the endorser and thus to the validity of his or her declaration regarding the product and is believed to be a factor that increases persuasiveness above and beyond the effects of trustworthiness. Other researchers have emphasized the importance of source attractiveness in determining liking for the endorser and so increasing endorsement effectiveness (Friedman and Friedman, 1979). To extent that attractiveness is an important determinant of endorsement effectiveness, research based on the matchup hypothesis (Kahle and Homer, 1985; see also Till and Bulser, 1998, for a discussion of the mathcup hypothesis in relation to endorser expertise) suggest that its importance is limited by the degree to which attractiveness fits, suitable, or has a congeniality well with the advertised product. So, physical attractiveness might be useful when selling cosmetics but nit when selling computers. Then, although source attractiveness research has focused primarily on physical attractiveness, attractiveness can also be viewed more generally as a positive attitude toward the endorser.

6 14 Therefore the author will use the TEARS model to be the foundation of congruity of celebrity endorsement advertisement with consumer. These two different product advertisements show different level of congruity. Luna Maya doesn t show any congruity between her and the product. Hence this is one of the examples of low fit product endorsement congruity. In authors perception audience would not buy one of both product from the advertisement because of the congruity. But Luna Maya tend to attract the audience because of the attractiveness. Nicholas Saputra has being chosen by L Oreal for brand ambassador. This is one of the high product endorsement congruities examples. The audience will respond the congruity between the product and the celebrity positively.

7 The TEARS Model Shimp (2003) writes that there are two general attributes, credibility and attractiveness that play an important role in facilitating communications effectively. These attributes are also important when it comes to determining how effective an endorser may be. Shimp (2003) claims that the first general attribute credibility refers to the tendency to believe or trust someone. When an endorser is perceived as credible, the attitude of the audience seems to change through a psychological process called internalization. This process occurs when the receiver accepts the endorser s position on an issue as his or her own. Two important sub attributes of the endorser credibility are Trustworthiness and Expertise, and someone who can be trusted. The celebrity earns the trust by his or hers accomplishment, on the movie screen, on the sports field, in public office etc. The trustworthiness of an endorser lays on the audience s perception of the endorser s motivation. If the consumers believe that the endorser is endorsing a product for selfinterest, the persuasive effect of the endorser will be lower than if the audiences see the endorser as someone having nothing to gain by endorsing the brand. The second sub attribute is expertise, the E component of TEARS model. The expertise is about having specific skills, knowledge or abilities that can be related to the endorsed brand. Shimp (2003) claims that whether the endorser is an expert or not is unimportant. All that matters is how the target audience perceives the endorser. IF the endorser is perceived as being an expert he or she is more likely to be able to change the opinion of the audience than if the endorser is not perceived as an expert by the audience. Shimp (2003) continues with the third general attribute, which is attractiveness. This is not just physical attractiveness the different characters that te audience can perceive in an endorser can be intellectual skills, personality properties, lifestyle characteristic and athletic skills. When the consumers find something in the endorser that they like, persuasion occurs through identification means that consumers are likely to adopt the endorser s behavior, attitudes, interest or preferences if the find the endorser attractive.

8 16 Attractiveness can be divided into three sub attributes, physical attractiveness, respect and similarity. The A component in the TEARS model attractiveness is a key consideration in many endorsement relationship. A good example f a successful attractive endorser is tennis player Anna Kournikova who has never won a tournament on the pro tour. She earns (estimated) 10 Million dollars per year in just endorsement. Ship (2003) claims that Kournikova was selected to endorse different brands due to hers physical attractiveness and not because her credibility or respect for her exceptional tennis abilities. Research supports the idea that attractive people are more likely to produce more favorable evaluation of advertised brands that less attractive endorsers. Fourth general attribute is Respect. The R in the TEARS model and represents the quality of being admired due to one s personal qualities and accomplishment. Celebrities can be respected for their acting abilities, athletic skills, political arguments and personality. A respected celebrity who endorses a brand can improve a brand s equity via the positive effect the consumers may get toward the brand. The final sub attribute in attractiveness is the S, which is similarity. This refers to how the endorser matches with the audience in terms of age, gender, ethnicity, social class etc. Shimp (2003) says that this is an important attribute because audiences tend to better like individuals who are sharing the same characteristics. A celebrity endorser is more likely to be seen as trustworthy the more he or she matches with the audience s gender, age and ethnicity etc. the research done on ethical minorities reveals that when a spokeperson matches the audience in ethical terms, the spokespersons trustworthiness is enhanced. This adds more favorable attitudes towards the endorsed brand.

9 Purchase intention Purchase intention is a part of the decision process on consumer behavior. In the buying process, the consumer should stop looking for and evaluating information about alternative option in the evoked set and makes a purchase decision. As the result the evaluation stage, the consumer may develop a purchase intention or a predisposition to buy a certain brand or product. Purchase intention is a part of decision process. Based on Belch and Belch (2009, p127) purchase intention are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. Joseph Jaffe (2003) explained about purchase Intent is arguably the key link between branding and response (acquisition). It is the point at which a consumer interest, motivation or preference becomes an actionable and directed likelihood that a purchase will result from the time spent consuming, evaluating and deciding that a defined need can be met through the exchange of hard-earned dollars for utility, value and/or service. In addition, Joseph Jaffe (2003) also explained that purchase intent is the trigger that joins branding and response, but the paths that lead to and from the bridge that crosses the contradictions are equally important. Purchase intentions have been widely use in the literature as a predictor of subsequent purchase. Past research has found that purchase intention is also positively associated with perceived value. (Dodds, Monroe, and Grewal, 1991; Grewal, Monroe, and Krishnan, 1998). According to Bagozzi (1983, p. 145) intentions constitute a willful state of choice where one makes a self-implicated statement as to a future course of action

10 Theoretical Framework Based on Author s first journal which is factor predicting the effectiveness of celebrity endorsement advertisements written by David H. Silvera and Benedikte Austad, the author doesn t found the exact and suitable framework that applicable to the thesis. But there are hypotheses that he made for their research which are: a. H1. Correspondent inferences will be positively associated with attitudes toward the advertised product b. H2. Observers will view the product endorser as liking the product better than the average person likes the product, even when the endorser receives a substantial endorsement fee. c. H3. Perceived product knowledge of the endorser will be positively associated with attitudes toward the advertised product. d. H5. Admiration and elements of physical attractiveness associated with the product will be associated with positive attitudes toward the endorser, and will contribute to predicting attitudes toward the advertised product. e. H6. Perceived similarity and elements of physical attractiveness that are unrelated to the product will be associated with positive attitudes toward the endorser, but will not contribute to predicting attitudes toward the product. f. H4. Positive attitudes toward the endorser will be associated with positive attitudes toward the advertised product. In the author s second journal which is Celebrity endorsement case study of J.Lindeberg by Christian Bergstrom and Rijkard Skarfstad, Author finds that figure 2.1 can be applicable for author s framework.

11 Figure 2.1 frames of reference by Bergstrom and Skarfstad 19

12 20 After comparing these two journals, the author found out that there is are several similarity. Thus the model of this research is based from eight hypotheses of David H. and Silvera and Benedikte research s and research model from Bergstrom and Skarfstad research s. The model is: Trustworthiness Role model spillover effect Expertise Attractiveness Product Celebrity Congruity Purchase Intention Respect Similarity Consumer perceived similarity Figure 2.2 by Author. There are nine variables that will be analyzed: a. Trustworthiness b. Expertise c. Attractiveness d. Respect e. Similarity f. Product congruence g. Purchase intention

13 21 h. Role-model spillover effect i. Consumer perceived similarity The above model representing the correlation between product-celebrity congruence to purchase intention: And the flow will be: The congruity between an endorser (celebrity) is influenced by 5 variables: o Trustworthiness o Expertise o Attractiveness o Respect o Similarity The congruity will directly influence purchase intention The congruity will influence purchase intention through: o Role model spillover effect Consumers will see a celebrity as their role model and will buy any product endorsed by the celebrity o Consumer perceived similarity Consumer will buy a product endorsed by a celebrity if they see a fit between the celebrity and themselves 2.8 Variables definition The main point of this thesis will discuss about effectiveness of celebrity endorsement and its effect to purchase intention. Into deep, the celebrity endorsement effect are based on the TEARS model which are; Trustworthiness, Expertise, Attractiveness, Respect, Similarity.

14 22 Steps that the author will conduct the research will be started with the TEARS model. The Tears model will include Trustworthiness Expertise Attractiveness Respect Similarity The first aspect is trustworthiness. As describe by Shimp (2003) the first general attribute credibility refers to the tendency to believe or trust someone. Celebrity trustworthiness will be elaborated with the endorsement then; Author would like to know if celebrity trustworthiness will affect the endorsement in consumer s mind. The second aspect is expertise. The expertise is about having specific skills, knowledge or abilities that can be related to the endorsed brand. Shimp (2003) claims that whether the endorser is an expert or not is unimportant. All that matters is how the target audience perceives the endorser. IF the endorser is perceived as being an expert he or she is more likely to be able to change the opinion of the audience than if the endorser is not perceived as an expert by the audience. In this aspect, Author would like to know if expertise will applicable in Indonesia s Celebrity endorsement in consumer s mind. The Third aspect is attractiveness. Other researchers have emphasized the importance of source attractiveness in determining liking for the endorser and so increasing endorsement effectiveness. Attractiveness is important if linked with advertisement, for example physical attractiveness might be useful in selling cosmetics but not when selling computers. Attractiveness can also be viewed more generally as a positive attitude toward the endorser. Thus, the author wants to know if attractiveness of the celebrity will affect the fitness of Indonesian consumer mind then it will reflect to the endorsement. The fourth aspect is Respect. Respect represents the quality of being admired due to one s personal qualities and accomplishment. Celebrities can be respected for their

15 23 acting abilities, athletic skills, political arguments and personality. A respected celebrity who endorses a brand can improve a brand s equity via the positive effect the consumers may get toward the brand. In this thesis, author wants to know the relation of respect in celebrity endorsement advertising effect the Indonesian consumer s mind. The last aspect is similarity. This refers to how the endorser matches with the audience in terms of age, gender, ethnicity, social class etc. Shimp (2003) says that this is an important attribute because audiences tend to better like individuals who are sharing the same characteristics. The author wants to know if similarity in celebrity endorsement advertisement will affect Indonesian consumer s mind. The TEARS model will be used by the author to measure be the factor that determines congruity between product and endorsers, in this case celebrity in consumer mind. Trustworthiness, expertise, Attractiveness, Respect, similarity, is being tested to comprehend aspects of the consumer towards celebrity endorsement. Second step is the celebrity endorsement will directly influence purchase intention, the author would like to know that TEARS model of celebrity endorsement affect the consumer purchase intention directly. Thus the author will know the purchase intention of consumer is determined by congruity of celebrity endorsement. For example Cristiano Ronaldo who is the endorser of Clear shampoo for men. In this illustration consumer will buy the shampoo because Cristiano Ronaldo has direct influence to purchase intention Next step the author will research the congruity of product-celebrity endorsement will indirectly influence purchase intention through role model spillover effect and consumer perceived similarity. Role model spillover effect is an effect that caused by the role model. In this case the author will relates role model spillover into the purchase intention. The author will test if role model spillover effect will become the reason for purchase intention. For example consumer will buy product that being endorsed by their idol; in this case consumer will buy Levi s jeans because Johnny Depp endorsed Levi s

16 24 Consumer perceived similarity is a consumer comprehension about the similarity of consumer identity, lifestyle or behavior. This consumer perceived similarity also be the factor that being tested to know consumer purchase intention. For example, Brylcreem is a hairstyling product for man that chose David Beckham as endorser. Consumer will perceive that their hairstyle might be similar with David Beckham. Thus consumer might buy brylcreem because of the perceive similarity of the celebrity endorsement