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 Commerce
Faculty of Social Sciences and Humanities
Allama Iqbal Open University Islamabad
Year 2012 - 2014

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 Commerce
Faculty of Social Sciences and Humanities
Allama Iqbal Open University Islamabad
Year 2012 - 2014

1.

Introduction

Now a days 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.

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.

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.

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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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.

Celebrity Endorsement
Competitive Financial performance
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.
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8.

Data Analysis:

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.

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: PrenticeHall.
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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