“The Effect of Celebrity Endorsement on Consumer Purchase

Behavior: A Study for Mobile Phone Brands in Pakistan.”

Syed Haroon Fazal¹, Shahzaib Mian².

Institute of Business & Management, UET Lahore, Pakistan.

Abstract:-The study examined the Effect of Celebrity Endorsement on Customer Purchase

Decision. The aim of study was to explore the customer preferences while purchasing a Mobile

Phone. The research also investigated the perception of university students towards Celebrity

Endorsement strategy. Mobile Phone Brands which are implementing Celebrity Endorsement

strategy in Pakistan have been taken into consideration for study that is Q Mobile, Samsung &

Oppo Mobiles. Survey Research Design was used to record the findings of the study from

sample population. The target respondents were students studying in different universities of

lahore to record diverse opinions. Sample size was kept 300. Structural Equation Modeling

Technique has been used to test the relationship between different variables. Frequency

Tables of recorded responses have also been added in Data Analysis section to give a clear

understanding of customer preferences and perception of students towards Celebrity

Endorsement strategy. Results of the Study has identified that Brand Image and Customer

Purchase Intention mediates the relationship between Celebrity Endorsement and Customer

Purchase Decision. Provided recommendations to the Mobile Phone brands are to invest in

Product Quality and save advertising cost by focusing on Social Media Marketing.

KEY WORDS:- Celebrity Endorsement (CE) , Customer Purchase Intention (CPI) ,

Brand Image (BI) , Customer Purchase Decision (CPD) .

Introduction:-
The research paper examined the “Effect of Celebrity Endorsement on Pakistani Consumers for

Mobile Phone Brands”. Advertisement has now become a common practice by every brand to

successfully carry out their business in consumer market. It is now considered to be an effective

tool in order to spread marketing messages to build up a certain brand image in consumers mind.

The purpose of advertisement is to create awareness of product and to bridge the gap between

Customers and Brand. It is also considered to be a useful resource to build up the communication

channel between Customers and Brand . Due to increased competition and advancement in

technology every brand is now striving hard to be unique in the market in terms of their product

offerings. The most exciting thing to be observed is that even Brands of substitute products have

different Marketing Strategies. As the customer needs and market trends keep on changing

brands also come up with different strategies time to time in order to stay in competition.

Different tools are being used to promote a product and brand in the market. Celebrity

Endorsement is considered to be the most effective of them. Celebrity Endorsement is

an effective marketing strategy to grab the attention of customers for a particular brand or

product so that customers would start associating the brand image with personal image of

Celebrity endorsed in that Advertisement. The strategy behind Celebrity Endorsement is to give

an impression to target audience that after using that product, customers would be able to

enhance their self esteem and they would get appreciated in the society. Different celebrities

have been used to endorse Mobile Phone Brands in Pakistan. “Q Mobile” and “Samsung”

Mobile Phone brands are doing aggressive marketing now a days by endorsing different

Bollywood and Pakistani Actors in their Advertisements to build up a positive brand image in

the Pakistani consumer market. Q Mobile is the first Pakistani Mobile Phone Brand which has

endorsed Bollywood Actors and Actresses in launching their Mobile Phone Series. In 2013 Q

Mobile endorsed “ Kareena Kapoor” the famous Bollywood Actresses in launching their Mobile
Phone series which grabbed the attention of masses and gained positive brand image in the

market. Most of the consumers actually bought that Mobile Phone just because of the appearance

of Bollywood Actress. After that other famous celebrities were also endorsed by Q Mobile like

“Shahid Kapoor”, “Sonam Kapoor” due to which Q Mobile actually gained much larger share

in the Pakistani Market. At the beginning Q Mobile was solely depending on their Marketing

strategy but later consumers started complaining about their technology. Samsung being strong

competitor of “Q Mobile” in Pakistan also started endorsing Pakistani Celebrities like “Ali

Zaffar” and “Fawad Khan” but it could not get as much success as Q Mobile. On the other hand

most of the consumers did not even watch the advertisement of Apple I Phone but yet it is the

most favorite brand of Pakistani Consumers of “Upper Middle” and “Affluent Class” . No doubt

Celebrity Endorsement can play a vital role in creating brand awareness but question that is to be

addressed is that whether customer purchase Mobile Phones due to Advertisement endorsed by

famous celebrity or by keeping in view the quality, features and characteristics of the product.

Discussing some of the dynamics of Pakistani market where majority of the population belongs

to “middle class” and “lower middle class” .Q Mobile and Samsung have effectively marketed

their brand to fulfill the need of underprivileged class of Pakistani market by offering “low cost”

Mobile Phone products along with range of expensive Mobile Phones to target the affluent class

as well but these Pakistani Mobile Phone brands have not been able to capture the market share

of Apple . Despite being non Celebrity Endorsed Brand, Apple has been able to satisfy the needs

of customers without focusing much on Advertisements which means that if quality of a product

is good it gets recognition in the market. Purpose of this paper was to explore the factors behind

Customer Purchase Decision and to come to the logical conclusion that Celebrity Endorsement

Strategy is useful or not keeping in view the Quality and Price factors as well.
Research Gap :
Research Gap which was identified after reviewing previous studies was that no particular

research was done to investigate the effect of Celebrity Endorsement on Consumer Purchase

Decision for Mobile Phone Brands targeting the consumers in Pakistan. It was real time

learning to test the effect of Celebrity Endorsed Advertisement on Consumer Purchase Decision

because “Q Mobile” “Samsung Mobile” and “Oppo Mobile” all these brands are doing

regressive marketing by endorsing different Bollywood and Pakistani Celebrities to promote

their Mobile Phones. Results of the present study are a great resource for Mobile Brands to

understand perception of Mobile Phone customers towards Celebrity Endorsement and their

preferences while purchasing Mobile Phone.

Problem Statement:-
Problem Statement of the present study is to investigate the effect of Celebrity Endorsement on

Consumer Purchase Decision with mediating effect of “Brand Image” and “Consumer Purchase

Intention”.

Research Objectives :-

 To examine the effect of Celebrity Endorsement on Customer Purchase Decision.

 To understand the perception of students towards Celebrity Endorsement for Mobile

Phone product.

 To provide recommendations to Mobile Phone Brands whether to invest in “Product

Advertisement” or to invest in improving the “Product Quality”.

 To test the mediating effect of Brand Image between Celebrity Endorsement and
Customer Purchase Decision.

 To examine the mediating effect of Customer Purchase Intention between Celebrity

Endorsement and Customer Purchase Decision.
Research Questions:-
Q1 What is the perception of University Students towards Celebrity Endorsement?

Q2 What are the Customer Preferences in purchasing Mobile Phone?

Q3 What is the effect of Celebrity Endorsement on Customer Purchase Decision?

Research Significance:-
This research paper investigated that to what extent Celebrity Endorsement in

Advertisements can help companies to increase sales and improve brand image in the Consumer

Market. The Research paper gave a fair understanding to companies to reevaluate that

whether endorsing Celebrities in Brand Advertisement is a successful strategy or not. Study has

proposed useful recommendations to Mobile Phone Brands that how they can be able to save

Advertising cost on media channels which provides better investment opportunities to the

companies.

Research Limitations:-
Study was conducted in short span of time therefore only Mobile Phone Brands were taken into

account to investigate the effect of Celebrity Endorsement on Consumer Purchase Decision and

target respondents were also limited to the university students which is only portraying point of

view of younger consumer group. It can be assumed that result may vary if older consumer

group can also be considered as target respondents to record their point of view as well in

context to Celebrity Endorsement strategy.

 Variables: Variable is defined as a series of sequence of observations in which we observe
the change. Variables which have been selected for present study are mentioned below with
reference article.
Variables
Celebrity Endorsement
Customer Purchase Intention
Brand Image
Customer Purchase Decision
Type Reference Article Definition
Any individual who enjoys
Independent Bafna et al, (2016) public recognition and who uses
Variable “Influence of Celebrity this recognition on behalf of a
Endorsements on the consumer good by appearing
Consumer Behavior for with it in an advertisement.
Facial Care Product”, (Mc Craken’s ,1989)
Imperial Journal of
Interdisciplinary Research.
Jin et al,(2015) An individual’s conscious plan
Mediating “The Mediating Effect of to make an effort to purchase a
Variable Consumers’ Purchase brand. (Spears and Singh, 2004)
Intention: A
Perspective of Online
Shopping Behavior among
Generation Y”, Journal of
Marketing and Consumer
Research.
Perceptions about a brand as
Mediating Nasir et al, (2016) reflected by the brand
Variable “Celebrity Endorsement associations held in consumer
and Consumer Buying memory.(Keller’s ,1993)
Intention with the
mediating role of Brand
Performance: An Empirical
Consumer Perception study
in FMCG sector of
Pakistan”, Science
International.
A set of activities which
Dependent Afsheen Khan, Samreen involves the purchase and use of
Variable Lodhi, (2016) “Influence goods and services which
of Celebrity Endorsement resulted from the customers’
on Consumer Purchase emotional and mental needs and
Decision: A Case of behavioral responses.
Karachi”, Imperial Journal (Stallworth,2008)
of Interdisciplinary
Research.
Theoretical Justification of Variables:-

Celebrity Endorsement:- Celebrity Endorsement is defined as a concept of introducing famous

personalities of the society in Brand Advertisement to create awareness among the target

audience. It is considered to be a type of marketing strategy to maintain positive brand image in

the market so that customers would start associating brand image with personal image of

Celebrity endorsed in the advertisement. The main objective of Celebrity Endorsement is to give

a feeling of trust to the customers that after using that particular product they would get

appreciated in the society.

Brand Image:- It is the general reputation and impression of a particular brand in customers

mind that depends on the quality of product and service that is offered to customers. It can be

positive when customers feel satisfied with the brand offerings and negative at the times when

customers feel dissatisfied with the quality and service of a brand.

Customer Purchase Intention:- It refers to concept of customer’s intention to buy a product or

service from a particular brand. It is customer’s motivation to buy a product which is related to

his or her perception with a particular brand. When customers have a positive perception or

intention about a certain brand that their product or service would be of good quality it motivates

them to finally make a purchase decision. Negative customer perception or intention about a

brand would encourage customer to stop making purchase from that brand.

Customer Purchase Decision:- It refers to an idea of making a decision or showing willingness

to buy a product after identifying a particular need . Decision can be made on different factors

which can vary from customers to customers like for some customers quality is the greatest

factor to buy a product and for some customers it can be low price.
Literature Review:-
This research examined the influence of celebrity endorsement on consumer purchase decision

for face care products used in Karachi.(Khan & Lodhi ,2016) states that Celebrity Endorsement

is not only used to create brand awareness and brand recognition but it is also help company to

grab the attention of consumers . Results of the research showed that Celebrity endorsement is

not considered to be a only factor for customers to purchase a certain product from a brand but

other factors like product quality, brand image and personality of Celebrity endorsed is also a

key factor for customers to choose a certain brand for Skin care products.

This research paper discussed the impact of Celebrity Endorsement on Consumer Buying

Behavior.( Ahmed et al ) explained that advertisements which are endorsed by famous celebrities

are considered to be more attractive then the advertisements which are non endorsed. Study

concluded that there is a significant impact of Celebrity Endorsement on customers buying

behavior.

The article (Bafna et al, 2016) highlighted the influence of Celebrity Endorsement on Consumer

Behavior for Facial Care Products in Indian Market. The study has explained the fact that

Celebrity Endorsement is not the only reason which effects Customer Purchase Behavior but

other factors like price, quality of the product also play a significant role. Study also discussed

that similar packaging of Face Care products lead to confusion for customers so Company

should come up with innovative packaging.

The article written by ( Nasir et al, 2016) studied the Role of Celebrity Endorsement and

Consumer Buying Intention with Mediating role of Brand Performance in FMCG sector of

Pakistan. It was mentioned that Celebrity Endorsement positively effects the consumer buying

Intention. Results concluded that some dimensions of Brand Performance i.e (Brand Image,

Brand Awareness, Brand Favorability) played a role of mediator between Celebrity Endorsement

and Consumer Buying intention.

The objective of the Research was to investigate the Influence of Celebrity Endorsement on

Consumers Buying Behavior. (Kulkarni, 2014) explained that credibility of Celebrity Endorsed

in Advertisement makes the Consumer Buying decision a lot more easier. Furthermore study

reveals that Celebrity Endorsement has an impact on Consumer life style as it increases the Self

Esteem of Customers. Results concluded that Celebrity Endorsed Advertisements lead to brand

recognition and customers can easily recall that brand for longer time period.

The article (Chhajer et al , 2015) studied the impact of Celebrity Endorsement on Consumer

Buying Behavior. The study discussed that Celebrity Endorsement can increase growth of

Business to some extent but customers also perceive non endorsed advertisements equally if they

find advertisement campaign, product tag line, back ground music and captions of Brand to be

very attractive. The researcher also highlighted the fact that due to too many Celebrity Endorsed

Advertisements customers are losing their faith over them. Results proved that Credibility and

Popularity of Celebrity endorsed can play a significant role in grabbing attention of target

audience.

The research (Ramesh & Kumar, 2015) was carried out to study the impact of Celebrity

Endorsement on Consumer Buying Behavior. The purpose of the study is to find out the impact

of Celebrity Endorsement on consumers buying pattern. Researcher explained that Celebrity

Endorsement can enhance product information and creates awareness among consumers but

frequent changes in celebrity for advertisement would reduce consumer purchasing decision.

Respondents of the research believe that they have a clear understanding that Celebrities do not

use the products which they themselves endorse. Results states that most of customers believe

that products endorsed by celebrities have often good or low quality.

Theoretical Framework:-
Theoretical Framework explains the relationship between testable variables. Study explored

the impact of Celebrity Endorsement on Customer Purchase Decision for Mobile Phone Brands

with mediating effect of Brand Image and Customer Purchase Intention to examine the impact of

one variable on other. The study investigated that to what extent Celebrity Endorsement can

build up a positive Brand Image which motivates customer to finally make a Purchase Decision.

Model:- The below figure represents Theoretical Framework to study Effect of Celebrity

Endorsement on Customer Purchase Decision.

Independent Variable Mediating Variables Dependent Variable

Brand Image

Nasir et al, (2016)

Celebrity Customer Purchase

Decision
Endorsement
Customer
Bafna et al, (2016) Khan & Lodhi,2016
Purchase
Intention

Jin et al,(2015)

Hypothesis:- It is the testable statement about relationship between two variables. It is also
known to be the educated guess about the outcome of your study. Hypothesis is developed on the

basis of theory that exists in previous studies. Present study has developed relational hypothesis

as assumptions were based on identifying relationships between variables.

H1: There is a significant relationship between Celebrity Endorsement and Brand Image.

H0: There is no significant relationship between Celebrity Endorsement and Brand Image.

H2: There is a positive relationship between Celebrity Endorsement and Customer Purchase

Intention.

H20: There is no positive relationship between Celebrity Endorsement and Customer Purchase

Intention.

H3: There is a significant relationship between Brand Image and Customer Purchase Decision.

H30: There is no significant relationship between Brand Image and Customer Purchase Decision.

H4: There is a significant relationship between Customer Purchase Intention and Customer

Purchase Decision.

H40: There is no significant relationship between Customer Purchase Intention and Customer

Purchase Decision.

H5: Brand Image mediates the relationship between Celebrity Endorsement and Customer

Purchase Decision.

H6: Customer Purchase Intention mediates the relationship between Celebrity Endorsement and

Customer Purchase Decision.

Research Methodology:-
The present study is Quantitative in nature. Survey Research Design has been used to record the

findings of study from sample population. Target respondents were University Students to

understand their preferences while buying a mobile phone. Positivism approach has been used to

carry out study as previous articles were reviewed for Literature Review and development of

Hypothesis. Researcher of the present study would be known as positivist because logical facts

and theoretical assumptions of previous studies has been accepted with the belief that reality

is something that cannot be changed.

Data Collection Method:-
Responses were recorded after distributing Structured Questionnaires among the respondents.

Sample population size was kept 300. The target respondents were students of University present

in Lahore to record the diverse opinions. The reason of choosing university students as a sample

population was that they have a great knowledge of different Mobile Phone Brands which helped

in identifying real facts. Close ended Questionnaires were used to collect data from sample

population as it was not much time consuming to record responses.

Research Technique:-
Analysis was done to find out the relationship between dependent, independent variable and

mediating variables .First of all Reliability Analysis was applied in SPSS software to test the

reliability of instrument used and responses recorded from target respondents. Frequency table of

recorded responses of Celebrity Endorsement variable and Customer Purchase Intention variable

was also added to give a clear understanding of perception of university students towards

Celebrity Endorsement and their preferences while purchasing mobile phone. After that

Structure Equation Modeling Technique was applied in SPSS AMOS software to test the

mediating effect of Brand Image and Customer Purchase Intention between Celebrity

Endorsement and Customer Purchase Decision.

Data Analysis:-

The research questions of the present study were to identify the customer

preferences in purchasing mobile phone , To understand the perception of university students

towards Celebrity Endorsement and to examine the effect of Celebrity Endorsement on Customer

Purchase Decision. To fulfill the purpose of the research respondents were asked different

questions which were categorized into different variables which gave a clear understanding of
what customers think about Celebrity Endorsement and what is basically the motivation drive to

buy a mobile phone from a particular brand. Frequency Table is added to observe the responses

of targeted respondents.

Perception of Students towards Celebrity Endorsement:-

1. Advertisements featuring celebrities attract my attention.

CE1 Table 1.1

Frequency Percent Valid Cumulative
Percent Percent
Strongly Disagree 3 1.0 1.0 1.0
Disagree 11 3.7 3.7 4.7
Neutral 33 11.0 11.0 15.7
Valid
Agree 164 54.7 54.7 70.3
Strongly Agree 89 29.7 29.7 100.0
Total 300 100.0 100.0

54.7 % of the respondents agreed and 29.7 % strongly agreed to the fact that

Advertisements which feature celebrities effectively capture their attention.

2. Celebrities increase the awareness of the desired product.

CE2 Table 1.2
Frequency Percent Valid Cumulative
Percent Percent
Strongly Disagree 6 2.0 2.0 2.0
Disagree 17 5.7 5.7 7.7
Neutral 73 24.3 24.3 32.0
Valid
Agree 136 45.3 45.3 77.3
Strongly Agree 68 22.7 22.7 100.0
Total 300 100.0 100.0

45.3 % of the respondents agreed where as 22.7 % strongly agreed that Celebrities

increase the awareness of the products more effectively.

3. Celebrities make the desired product more memorable.
CE3 Table 1.3
Frequency Percent Valid Cumulative
Percent Percent
Strongly Disagree 2 .7 .7 .7
Disagree 10 3.3 3.3 4.0
Neutral 48 16.0 16.0 20.0
Valid
Agree 162 54.0 54.0 74.0
Strongly Agree 78 26.0 26.0 100.0
Total 300 100.0 100.0
54% of the respondents agreed whereas 26 % strongly agreed that celebrities make
the product more memorable.

4. Using of celebrity endorsed products increases my self esteem.

CE4 Table 1.4
Frequency Percent Valid Cumulative
Percent Percent
Strongly Disagree 3 1.0 1.0 1.0
Disagree 13 4.3 4.3 5.3
Neutral 39 13.0 13.0 18.3
Valid
Agree 140 46.7 46.7 65.0
Strongly Agree 105 35.0 35.0 100.0
Total 300 100.0 100.0

46.7 % of the total respondents agreed where as 35 % strongly agreed that celebrity
endorsed products increase their self esteem.

Interpretation:- Above mentioned results depicted the perception of students towards

Celebrity Endorsement. It can be interpreted from results that students consider the

Celebrity Endorsement successful strategy to create awareness and an effective tool to

capture the attention of consumers. Majority of the students also believe that celebrity

endorsed products increase their self esteem in the society. After analyzing the results we

can say that Celebrity Endorsement helps Brand to improve their Brand Image in the

market and customers start taking interest towards the product.

Customer Preferences:- Another approach of study was to investigate the preferences of
customers while making a purchase decision of a mobile phone. Celebrity Endorsement can help
brands to increase awareness but that does not mean that on the basis of Celebrity Endorsement
customers start buying mobile phones, there are other factors too which customers take into
account while buying a mobile phone. Frequency table is added to examine the result of targeted
audience.

1. Quality is The Most Important Factor in Buying Mobile phone.

CPI4 Table 1.5

Frequency Percent Valid Percent Cumulative
Percent
Strongly Disagree 2 .7 .7 .7
Disagree 17 5.7 5.7 6.3
Neutral 39 13.0 13.0 19.3
Valid
Agree 148 49.3 49.3 68.7
Strongly Agree 94 31.3 31.3 100.0
Total 300 100.0 100.0
49.3 % of the total respondents agreed and 31.3 % strongly agreed that quality is the most
important factor in buying Mobile Phone.

2. Price is the Most Important Factor in Buying Mobile Phone.

CPI5 Table 1.6

Frequency Percent Valid Percent Cumulative
Percent
Strongly Disagree 6 2.0 2.0 2.0
Disagree 21 7.0 7.0 9.0
Neutral 55 18.3 18.3 27.3
Valid
Agree 119 39.7 39.7 67.0
Strongly Agree 99 33.0 33.0 100.0
Total 300 100.0 100.0

39.7 % of the total respondents agreed and 33 % strongly agreed whereas 18.3 %
respondents are neutral to the fact that Price is the most important factor in buying
Mobile Phone.
Interpretation:- Results gathered from respondents proved that Quality of the product can never
be compromised no matter how effective the marketing strategy is. Attractiveness and personal
image of Celebrity endorsed in an advertisement can only lead to create awareness of the product
and to maintain positive brand image in the market but that would not be of much use if Quality
of the product is not up to the mark. Price is also another factor which customers keep in mind
while making a purchase of a mobile phone after doing cost to benefit analysis of the product
they finally make a purchase decision. Some respondents considered price factor to be neutral
and some disagreed that price is the important factor to buy a mobile phone which can be
interpreted in such a way that if quality of the product is good there are some portion of
consumers who are willing to pay more to buy good quality product.

Effect of Celebrity Endorsement on Customer Purchase Decision:-

Structural Equation Modeling Technique has been applied in Amos to test the effect of Celebrity
Endorsement on Customer Purchase Decision with the mediating variables Brand Image and
Customer Purchase Intention. Reliability test was applied first to check the reliability of
instrument used to record responses.

Reliability Analysis:- Table 1.7

Variables Cronbach's alpha No. of Items Remarks

Celebrity Endorsement .701 4 Good

Customer Purchase Intention .848 5 Strong

Brand Image .750 5 Good

Customer Purchase Decision .793 4 Good

Reliability Analysis determines whether the instrument measure things consistently. It also
measures that whether the responses recorded from respondents are consistent or not. From
Table 1.7 it is evident that the Cronbach’s alpha value of all the variables is more than 0.7 which
means that responses are consistent and reliable.

Confirmatory Factor Analysis Component Matrix Table 1.8

Component
Celebrity Endorsement 1
CE1 .730
CE2 .721
CE3 .831
CE4 .631
Component
Brand Image 1
BI1 .525
BI2 .727
BI3 .813
BI4 .832
BI5 .691
Component
Customer Purchase Intention 1
CPI1 .717
CPI2 .845
CPI3 .717
CPI4 .832
CPI5 .837
Component
Customer Purchase Decision 1
CPD1 .696
CPD2 .812
CPD3 .831
CPD4 .816

We apply Factor Analysis to test the validity of construct. Factor loading Values tell us that
whether items are valid or not. From above Factor Model (Table 1.8) it can be observed that
factor loading values of all the variables are greater than 0.5 which means each item of a
particular construct is valid.
Path Model Regression Weights Table 1.9
Estimate S.E. C.R. P Label
BI <--- CE .201 .057 3.501 ***
CPI <--- CE .894 .181 4.948 ***
CPD <--- BI 1.197 .330 3.628 ***
CPD <--- CPI .303 .053 5.698 ***
CPD <--- CE .120 .105 1.135 .256
BI1 <--- BI 1.000
BI2 <--- BI 2.913 .640 4.550 ***
BI3 <--- BI 3.375 .711 4.744 ***
BI4 <--- BI 3.366 .711 4.736 ***
BI5 <--- BI 2.626 .591 4.439 ***
CPI5 <--- CPI 1.000
CPI4 <--- CPI .869 .060 14.386 ***
CPI3 <--- CPI .643 .061 10.634 ***
CPI2 <--- CPI .861 .060 14.326 ***
CPI1 <--- CPI .767 .070 10.968 ***
CE4 <--- CE 1.000
CE3 <--- CE 1.512 .228 6.634 ***
CE2 <--- CE 1.396 .226 6.188 ***
CE1 <--- CE 1.236 .198 6.233 ***
CPD1 <--- CPD 1.000
CPD2 <--- CPD 1.256 .150 8.387 ***
CPD3 <--- CPD 1.221 .145 8.435 ***
CPD4 <--- CPD 1.102 .138 8.010 ***

Table 1.9 represents regression weights of each variable. Considering the path analysis all
relationship of variables are significant at probability level of 0.001 except the impact of CE on
CPD as the relationship is not significant having probability level of .256. The model represents
full mediation of Brand Image (BI) and Customer Purchase Intention (CPI) between Celebrity
Endorsement (CE) and Customer Purchase Decision CPD as the direct relationship between CE
and CPD is insignificant.

Model Fitness Table 2

CFI RMSEA P value
0.79 0.10 0.001

In model fitness CFI is 0.79 RMSEA is 0.10, P value is 0.001. All values are within the
acceptable range which means model represents good fit.
Analysis of Findings:-
Study has identified the following relationship between variables after applying factor and path

analysis in AMOS SPSS. From P values written in Regression Weight (Table 1.9) it can be seen

that which variable has a significant impact on other variable. In depth Analysis of Findings is

necessary to understand the relationship between variables and to highlight its impact on each

other. Results discussed below are interpreted and analyzed according to the responses gathered

from targeted respondents.

1. Celebrity Endorsement has a significant relationship with Brand Image.

Study has identified the significant relationship of Celebrity Endorsement with Brand Image

which means that Celebrity Endorsement plays a vital role in improving the Brand Image of

Companies. It can also be interpreted that Celebrities Endorsement is a successful strategy to

create awareness of products among target audience.

2. Celebrity Endorsement has a positive relationship with Customer Purchase Intention.

There is a positive relationship between Celebrity Endorsement and Customer Purchase Intention

which means that Celebrity Endorsement can help customers to build a positive perception

regarding a Brand and after watching different celebrities in advertisements customers start

taking interest in Brand’s product offerings and there is an increased possibility of purchasing a

product from Celebrity Endorsed Brand as compared to others.

3. Brand Image has a significant relationship with Customer Purchase Decision.

Positive Brand Image can lead to positive Customer Purchase Decision which means that if a

Brand has maintained its positive image in the market and customers are well satisfied with the

quality and price offered by a Brand on different products it would motivate customers to make a

purchase from that particular Brand. Celebrities can only be used to create awareness and

improving Brand Image but if a customer is not satisfied with the quality and price offered then

it can lead to a negative Customer Purchase Decision.

4. Customer Purchase Intention has a significant relationship with Customer Purchase
Decision.

Positive perception towards a brand will lead to a positive purchase decision. It can be

interpreted in such a way that a willingness to buy a certain product is done after identifying a

particular need so when customers feel that buying a particular product would facilitate them or

satisfy their need they would buy that product .There are different factors involved to maintain

positive Customer Purchase Intention which includes Quality, Price, Positive Word of Mouth,

Past Experience with the Brand, Celebrity Endorsed Advertisement etc.

5. Celebrity Endorsement has insignificant relationship with Customer Purchase Decision.

There is an insignificant relationship of Celebrity Endorsement with Customer Purchase

Decision which means that Celebrity Endorsement is not the only factor which customers keep in

their mind while making a purchase of a product. The other possible factors can be Quality and

Price offered with that particular product. Celebrity Endorsement can motivate customers to start

taking interest towards the product or it can also motivate customers to that extent that they

would actually go to buy that product but before making buying decision if they would find a

product to be of low quality or high priced they would refuse to buy the product.

6. Brand Image and Customer Purchase Intention mediates between Celebrity

Endorsement and Customer Purchase Decision.

The present study represents the full mediation of Brand Image and Customer Purchase

Intention between Celebrity Endorsement and Customer Purchase Decision which means that

positive brand image and positive intention of customer regarding a product would lead to a

positive purchase decision.

Recommendations:- The study has proposed following recommendations to Mobile Phone
Brands that are implementing the Celebrity Endorsement strategy:-

1. Invest in the Quality of Product:-

Celebrity Endorsement strategy is only successful when quality of the product is up to the mark

so if too much resources are allocated for implementation of Celebrity Endorsement strategy to

advertise low quality product it would result in bearing a huge financial loss. Good Quality

Product leads to positive word of mouth which results in increased profits. It is recommended to

invest in upgrading quality of product and bringing innovations within your product instead of

wasting too much cost on advertisements.

2. Focus on Social Media Advertising:-

Due to increased users on Social Media it has become a great platform for Companies to

advertise their products and create awareness among masses. Focusing more on Social Media

Advertisement will help in saving run time advertisement cost on different media channels.

3. Reducing the Frequent Repetition of Advertisements on Media Channels:-

Frequent repetition of Celebrity Endorsed Advertisements on media channels results in incurring

a lot of cost so this amount can be saved by displaying a limited amount of advertisements at

fixed timings. Saved amount can be utilized to extend product line.

4. Introducing Customized Pricing:-

Study reveals that Mobile Phone consumers keep in view the price of product as an important

factor while making a purchasing decision so customized pricing strategy should be introduced

to target higher class income group with good quality product and offering low quality product to

lower income class group.

Conclusion:- It can be concluded that Celebrity Endorsement strategy is successful marketing
strategy to create awareness among target audience but there are various factors that consumers

keep in their mind while purchasing a product no matter how attractive or famous is the celebrity

which is endorsed in advertisement. Quality and price are the two factors identified that matters

to consumers while purchasing a product. Results proved that Celebrity Endorsement can play a

significant role in improving Brand Image and maintaining positive Customer Purchase Intention

but customer always do cost to benefit analysis before purchasing a mobile phone so along with

good marketing strategy the quality of product should also be up to the mark otherwise it would

lead to negative customer perception which would result in facing financial loss to the company.

Direction For Future Study:-

The present study was only limited to Mobile Phone brands doing business in Pakistan to

examine the role of Celebrity Endorsement towards Customer Purchase Decision. Research can

be done to investigate Celebrity Endorsement strategy for auto mobile sector and also for FMCG

sector with addition of different variables and wide target respondents. Each and every company

ranging from FMCG to various other sectors are using Celebrity Endorsement Strategy so

examining its effect on other sectors would be very informative for the researchers.
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 Appendix (A)
Questionnaire: The aim of Questionnaire is to measure the “Effect of Celebrity

Endorsement on Customer Purchase Decision for Mobile Phone Brands”.

Personal Info:

Name: __________________________________________

Celebrity Endorsement

Q1) Advertisements featuring celebrities attract my attention

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q2) Celebrities increases the awareness of the desired product.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q3) Celebrities makes the desired product more memorable.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree
Q4) Using of celebrity endorsed products increases my self esteem

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Brand Image

Q5) I think celebrity endorsement help in strong brand promotion.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q6) Celebrity helps the familiar products to get and retain the brand image
5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q7) My favorite celebrity gives a positive image to the endorsed brand.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree
Q8) I remember a brand just because the celebrities are endorsing it.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q9) I think investing large amount of money for using celebrities helps
companies to increase their total revenue.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Customer Purchase Intention

Q10) I buy a product based on the attractiveness of the celebrity.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q11) I believe that the celebrities also use those product which they

themselves endorse.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree
Q12) I don’t believe products specifically advertised by the celebrities are of
good quality.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q13) Quality is The Most Important Factor in Buying Mobile phone.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q14) Price is the Most Important Factor in Buying Mobile Phone.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Customer Purchase Decision

Q15) I think celebrity endorsement is an important factor when I make my

decision.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree
Q16) I buy a product just because the celebrities are using it.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q17) Presence of celebrity influences the purchase decision.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree

Q18) Celebrity Advertisement increases the possibility of purchasing the

product.

5. Strongly Agree
4. Agree
3. Neutral
2. Disagree
1. Strongly Disagree