Research Proposal

ON“The Impact of Celebrity Endorsement and Brand Positioning on

Financial Performance”

MASTER OF COMMERCE (M.COM)

Name: BABAR BAIG

Roll No: AT-562208

Registration No: 02-PRI-9982

Department of CommerceFaculty of Social Sciences and Humanities Allama Iqbal Open University Islamabad

Year 2012 - 2014

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SATISFACTION LEVEL OF AIOU STUDENTS IN M.COM STUDIES

Name: BABAR BAIG

Roll No: AT-562208

Registration No: 02-PRI-9982

Signature: _________________

SYED WAQAR AKBAR Name of Supervisor

This Research Proposal is submitted to Department of Commerce Faculty of Social

Sciences and Humanities Allama Iqbal Open University Islamabad in partial fulfillment

of the requirement for the degree of M.Com.

Department of CommerceFaculty of Social Sciences and Humanities Allama Iqbal Open University Islamabad

Year 2012 - 2014

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1. Introduction

Now a day’s globalization and technology have shaped the possibility and even the

likelihood of a global culture. With the huge availability of media the appearance of a

new stage of commercial communication has taken outline. Companies are always

judgment new ways in which they can communicate with their consumers at both

conscious and intuitive level by bombarding customers with constant brand messages.

Consumers are looking for exact product or service of interest they selectively recognize

relevant product messages. Public attraction for celebrities and the extravagant lifestyles

they lead have extensive influence on fashion and popular society. It is implicit that

celebrities have a commanding effect on the affluence of the brands they endorse

(Alsmadi, 2006).

A successful endorser can increase consumers purchase intentions and preference toward

brands directly or indirectly. Celebrity like television stars movie actors and famed

athletes are extensively used in advertising to pressure consumers brand choice behavior

(Shimp, 2003). Advertisers try to create a link between their brands and attractive image

or lifestyle of a celebrity (Suegker, 2003). Consumers are most quiet and highly ready to

spend when celebrities endorse things that relate to their desired image. The perceived

image of celebrities is likely to have a positive impact on product choice behavior

(Goldsmith, 2000 & Mathur, 1997). Consumers are likely to take more notice of celebrity

advertisements and improve their level of product recall (Bowman, 2002). This study also

attempts to see the impact of celebrity endorsement on competitive financial

performance.

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2. Background of Study

It has been observed that input of celebrities is on rise in advertisement of

companies and there is need to study the impact of celebrity endorsement on competitive

financial performance.

3. Importance of Research Work

The study bears an extensive importance for the students of M.Com as well as

university administration in following areas.

It will help us understanding the relationship of celebrity endorsement on

comparative financial performance.

It will give us understanding and brand positioning affect the comparative

financial performance or not.

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4. Aims and Objectives

To examine the effect of celebrity endorsed branding and brand positioning on

comparative financial performance.

5. Literature Review

Celebrity endorsement: Celebrity is a widely recognized or famed person who orders a

high degree of public and mass media notice. The base of the word is one who is

celebrated. Another meaning of a celebrity is a person who is famous for being well

known. They may be known to the community for their performance and achievements in

areas other than the product class endorsed.

Celebrity endorsement has been defined as any individual who enjoys public

acknowledgment and who use this recognition on behalf of buyer goods. Celebrity

endorsement is only for hold purposes.

Advertisements in a large range of media use endorsements. An endorsement means any

publicity message which consumers are likely to believe reflects the opinions belief

findings of a party other than the advertiser. The party will be called the endorser (Tobin,

1975).

Brand positioning: Brand is a particular intangible asset to a buy and sells. It can be a

name word symbol nature association trademark or design which is proposed to identify

the products or services of one supplier or group of suppliers and to make different them

from those of competitors. Brand positioning is the force of challenging brand has to

direct its category through the level of its delivery. It connect the process by which

vendors try to generate an image in the minds of their target market for its product. It is

the relative competitive judgment the product occupies in a given market as supposed by

the consumers.

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Competitive financial performance

Both economic theory and past experience support the importance of judgment ways of

achieving good financial performance for the long term wealth and survival of entity

firms. While economics is somewhat uncertain on how to get this end owners and more

newly hired managers have in apply to make decisions to improve their companies

financial performance in the face of complex environmental authenticity and show of

deliberate choices and variety of ways to accumulate. The stable endurance today of

firms included in the late 19th and early 20th centuries is testimony to some grouping of

successful managerial decisions good business and economic conditions and chance

leading to levels of financial performance acceptable over the long run. The loss free

entities of many more once successful organizations born in a similar time period or later

is facts to major failure in achieving satisfactory financial performance (Scott Hoeing,

1996).

Celebrity Endorsement and Competitive Financial Performance

The paper looks particularly at the role that celebrity personalities play in bonding brand

quality and the public network together. Competitor endorsers are frequently used as role

models for positioning sports products and brands because of the community pressure

and community ideas attached to sport and because image and status foster brand

recognition. Studies have found cognitive associations are linked to the athletes personal

characteristics instilling trust power status and reliability into the product aid

sport branded products connect communality and novel because of the opportunities for

managers to use professional role models to target exact result. Iconic sporting figures

have also become symbols in the promotion of a wide range of non sports brands.

Celebrity endorsement provides a chance for image transfer (McDonald, 2002).

Brand positioning and financial performance

The purpose of this paper is to explore and open the discussion of the perception of brand

positioning. In wide review the roots and the growth of the thought traced. The review of

positioning shows 1 the surprising imprecision of the concept 2 the control of a market

oriented approach and 3 the lack of a holistic view. In this paper the discuss is impartial

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Celebrity Endorsement

Competitive Financial

performance Brand Positioning

by exploring positioning both as an image driven construct and as an identity driven

construct. Five major ways how positioning is implied in theory and practice are

presented with the help of images. Positioning as chess puzzle monopoly wordplay and

act contravention. The map is to surface the way and map routes onward for a more

dynamic view of positioning in research and practice. Positioning as a process is one of

the optional routes to explore (Chirstian Koch, 2013).

6. Theoretical Framework:

The following theoretical framework has been developed on the basis of evidence

available in above mentioned literature. The dependent variable is competitive financial

performance and two independent variables are celebrity endorsement and brand

positioning.

7. Research Design & Methodology

Sample:

The sample size will be 250 students of different departments of the various universities

in Islamabad and Rawalpindi. Sampling technique will use to collect the data.

Instruments and Measures:

Primary data will gather by using questionnaire as the instrument.

8. Data Analysis:

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The response of sample trainees received through questionnaire will be analyzed with

complete impartiality. The accuracy of analysis will be ensured. The data will be lying on

scale. There are four steps in data analysis.

To know the characteristics of the data sample.

Cleaning the data.

Modifying the data.

Analyzing the data.

9. Output/Deliverable

After collecting data and analyzing it I will discuss limitations and constraint the

research faces whiling working on research. I will explain the complete result of research.

Conclusion and recommendation will also be completed and submitted for more use of

the research studies. In the end I will also effort to make out the future areas of the

research so that it may be continued and improved by the preceding students.

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10. Bibliography

Aaker, D., Kumar, V. and, Day, G. S. (2004), Marketing Research, 8th edition, John

Wiley & sons, Inc., New York, P. 259.

Alsmadi,S. (2006), The Power of Celebrity Endorsement in Brand Choice Behaviour: An

Empirical Study of Consumer Attitudes in Jordan Journal of Accounting –

Business & Management, Vol. 13, PP. 69-84

Armstron,G., and Kotler, P. (1997), Marketing: An introduction. New Jersey: Prentice-

Hall.

Belch, George E. and Michael A. Belch (2001), Advertising and Promotion: An

Integrated Marketing Communications Perspective, 5th ed., Boston, MA:

McGraw-Hill, Boulding.

Blakeley, K. (2001), Oops, They Did It Again, Forbes, Vol. 168, Issue 8, P. 54.

Choi, Sejung M. and Rifon, Nora J. (2007), “Who Is the Celebrity in Advertising?

Understanding Dimensions of Celebrity Images,” The Journal of Popular Culture,

Vol. 40, pp. 304-324

Cuneo, Alice Z. (2002), Retailers Tap Celebrities, Advertising Age, Vol. 73, Issue 30,

PP. 4-5.

Daneshvary, Rennae and R. Keith Schwer (2000), “The Association Endorsement and

Consumers’ Intention to Purchase,” Journal of Consumer Marketing, 17 (3), pp.

203-213.

Desarbo W. S., and Harshman R. A. (1985), .Celebrity-brand congruence analysis.,

Current Issues and Research in Advertising, James Leigh and Claude Martin, eds.

Ann Arbor, Michigan: University of Michigan, pp. 17-52

Dimed C. and Joulyana S. (2005), Celebrity Endorsement – Hidden factors to success

Eltom, H. (2006), Celebrity Endorsement Branding linking fragrances to celebrities.

Erdogan, B. Z., Baker, M. J. and Tagg, S. (2001), Selecting Celebrity Endorsers: The

practitioner's Perspective, Journal of Advertising Research, Vol. 41, Issue 3, PP.

39-48.

Ferguson, Doug (2000), Woods: $45 Million Man?, Wall Street Journal Interactive

Edition, September 19.

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