ADV392K Proseminar in Promotional Communication

 

Measuring the Effects of Multiple Product Endorsements by Celebrities through Source Credibility

Model, Source Attractiveness Model, Match-Up Hypothesis & Meaning Transfer Model (MTM)

 

Nam-Hyun Um

The University of Texas at Austin


    Table of Contents


     

    Abstract

     This study explores the effects of multiple product endorsements by celebrities in Korean advertisements. The source credibility model, the source attractiveness model, the match-up hypothesis model, and the meaning transfer model will be employed to measure effects of multiple product endorsements by Korean celebrities. Korean TV commercials featuring celebrities will be shown to 200 college students. The questionnaire for this current study will be designed based on previous studies which have been used to measure the effects of celebrity endorsement in advertising. Implications for advertising researchers and practitioners will be discussed after this study is finalized.
(Note: This study will be continued and developed in the ‘Advanced Advertising Research Course’ by Dr. Wei-Na Lee for the spring semester.)

 

    Introduction

     Advertising has become a part of culture in our society. The practice of celebrity endorsement in advertising plays a pivotal role in making advertising into our culture. The use of celebrity endorsement has been on the rise and its phenomenon is worldwide. According to the industry sources in the United States, approximately 25% of all television ads feature a celebrity (Eedogan, Baker, and Tagg 2001). In Korea, over 70% of TV commercials feature a celebrity - actor/actress, pop musician, sports figure, entertainer, etc. (2006 Kim).

     The use of celebrity endorsement is a global practice. In line with this global trend, the celebrity endorsement has been a popular advertising tool for advertising practitioners as well as clients world-wide. As companies extend their businesses internationally, using celebrities with worldwide popularity has become a global marketing communication strategy. For example, Asics ran a TV commercial featuring internationally-known soccer players, including David Beckham, Michael Ballack, Duri Cha, Gonzales Raul, and other players. Worldwide, popular celebrities’ endorsement can help companies overcome cultural barriers, constructed through i.e., language, time, space, relationships, risks, masculinity and femininity. (Hofstede 1984; De Mooij 1994).

     Celebrities are defined as people who enjoy public recognition by a large share of a certain group of people who often have distinctive attributes such as attractiveness and trustworthiness (Silvera and Austad 2004). Advertisers spend billions of dollars on celebrities in hopes that they will bring positive effects, such as increasing sales and profits, generating positive attitudes toward the advertised brand, and increasing brand awareness and advertising recall by penetrating the clutter of advertising spots. Celebrity endorsement is also known to affect consumers’ purchase intention favorably (Ohanian 1991). In addition, celebrity endorsements can also generate extensive PR effects and provide an opportunity to let the new brand be known to the public (Erdogan, Baker, and Tagg 2001).

     Previous research (Friedman and Friedman 1979; Ohanian 1991; Tripp, Jensen, and Carlson 1994; Solomon 2002) supports the effectiveneon, multiple product endorsement and celebrity shadow effect. Celebrity shadow effect, in particular, is likely to occur when advertising focuses too much on the celebrity him/herself at the expense of the advertised brand (Lee, Paek, and Kim 2004). Using an associative network model of memory as a theoretical framework, Till and Shimp (1998) found that negative information about the celebrity will lower consumers’ brand evaluations.

     Among the concerns shared by advertising researchers and practitioners, celebrities’ multiple product endorsements have been an important issue in the Korean advertising industry where the use of multiple product endorsements by celebrities is especially prevalent since advertising is considered to be ‘an entertainment business’ in Korea. The Korean advertising industry provides a good arena for researchers to find effects of multiple product endorsement by celebrities. The author will explore the effects of multiple product endorsements by celebrities through source credibility, source attractiveness, match-up hypotheses, and meaning transfer model. In different product categories how does the use of celebrities’ multiple product endorsements work?    

 

    Literature Review

     Both the source credibility model and the source attractiveness model rest on research in social psychology. They were originally devised to explain communications processes and were later applied to the endorsement process (McCracken 1989). The match-up hypothesis suggests that the effectiveness of celebrity endorsement depends on the existence of a ‘fit’ between the celebrity endorser and the endorsed brand (Till and Busler 1998). The meaning transfer model by McCracken (1989) explains the effectiveness of celebrity endorsement by assessing the meanings consumers associate with the endorser and eventually transfer to the brand.

     In short, the source credibility and the source attractiveness models explain the relationship between the information source (endorser) and the message receiver (consumer) whereas the match-up hypothesis model explains the relationship between an endorser and an advertised brand or product. Unlike the other three models, the meaning transfer model (MTM) deals with three dimensional aspects of celebrity endorsement processes and explains the relationship between an endorser and the product/brand, and product/brand and consumer.

  Source Credibility Model

     Source credibility is defined as a term which is ‘commonly used to imply a communicator’spositive characteristics that affect the receiver’s acceptance of a message’ (Ohanian 1990). The source credibility model first proposed by Hovland and his associates contends that the effectiveness of a message depends on perceived expertise and trustworthiness of an endorser (Hovland et al., 1953 and Ohanian 1991). These two factors expertise and trustworthiness highlight the concept of the source credibility (Ohanian 1990). According to Kelman (1961), ‘credible source’s information can have impact on beliefs, opinions, attitudes, and behavior through internalization process, ‘which occurs when receivers accept a source influence in terms of their personal attitude and value structures.’

  Expertise  

     Expertise refers to the perceived level of knowledge, experience, or skills possessed by an endorser (Hovland et al. 1953). Ohanian (1990) contends that the perceived expertise of celebrity endorsers is more important in explaining purchase intentions rather than their attractiveness and trustworthiness. In short, a celebrity who is perceived as an expert by consumers carries more persuasiveness than others. The source’s perceived expertise has a positive effect on consumers’ attitude change (Ohanian 1990; Horai, Naccari, and Fatoullah 1974).

  Trustworthiness

     Trustworthiness, according to Ohanian (1990) is ‘the listener’s degree of confidence in, and level of acceptance of, the speaker and the message’. Erdogan et al. (2001) also define trustworthiness as ‘the honesty, integrity, and believability of an endorser as perceived by the target audience.’ In terms of the effect of trustworthiness on attitude change, Miller and Baseheart (1969) conducted an experiment and showed a result supporting that when the perceived communicator’s trustworthiness is high, attitude change is more likely to occur. Many prior research (Friedman and Friedman 1976; Friedman, Santeramo, and Traina 1978) found that trustworthiness has high correlation with ‘a respondent’s perceived similarity to the source, the level of source’s expertise, and the source’s attractiveness’. Friedman et al. (1978) also found that trustworthiness is the important factor in source credibility. However, interestingly, Ohanian (1990) suggests that a celebrity’s trustworthiness does not have significant relations with purchase intentions.

  Source Attractiveness Model

      Source attractiveness is related to physical attributes of endorsers, such as similarity, familiarity, and likeability. In line with the attributes of the source attractiveness, the source attractiveness model contends that ‘the effectiveness of a message depends on source’s “familiarity”, “likeability”, “similarity”, and “attractiveness” to the respondent’ (McGuire, 1985; Ohanian 1990). According to Kelman (1961), a communicator’s physical attractiveness affects ‘the effectiveness of persuasive communication through identification, which occurs when information from an attractive source is accepted as a result of desire to identify with such endorsers’.

  Match-up Hypothesis

The match-up hypothesis suggests that the effectiveness depends on the existence of a ‘fit’ between the endorsing celebrity and the endorsed brand (Till and Busler 1998). In other words, the degree of consumers’ perceived ‘fit’ between an advertised brand and a celebrity endorser’s image plays a significant role in product and ad-based evaluations. Kamins (1990) conducted an experiment with 89 graduate students to explore a possible relationship between celebrity endorser’s physical attractiveness and the advertised brand’s attractiveness. The study finding suggests that attitude toward ads and products becomes favorable as celebrity endorser’s attractiveness increases. The congruency between celebrity endorsers and brands was studied by researchers (Till and Busler, 1998; Till and Shimp 1998) in order to explain the effectiveness of using celebrities in advertising. Study results show that a number of celebrity endorsements turned out to be very successful while others were literally fiascos (Till and Busler, 1998). This study result belies the general assumption that using celebrity endorsement is always effective.

  Meaning Transfer Model

    Meaning transfer model provides insight when it comes to explaining a complicated process of celebrity endorsements in advertising. McCraken (1989) explains the effectiveness of celebrity spokespersons by assessing the meanings consumers associate with the endorser and eventually transfer to the brand. According to McCraken (1989)’s meaning transfer model, meaning transfer follows three stages. First, the meaning associated with a celebrity moves from the endorser to the product or brand. Second, meanings attributed to the celebrity become associated with the brand in the consumer’s mind. And lastly, the brand’s meaning is acquired by the consumer in the consumption process. The final stage of this model underscores the importance of the consumer’s role in the process of endorsing brands with celebrities.
McCraken’s theoretical concept of model transfer model was tested by Langmeyer and Walker (1991). Their study results show that symbolic meanings possessed by celebrities (Cher; Madonna, and Christie Brinkley) transferred to the endorsed brand/product (Scandinavian Health Spa, bath towels, and blue jeans) (Erdogan, Baker, and Tagg 2001).

  Celebrity Endorsement by Product Type

    Friedman and Friedman (1979) first studied the effectiveness of celebrity endorsement by product type. Their study finding suggests that the use of celebrity endorsement is more effective in jewelry products that have high social and/or psychological risks whereas the use of an expert is more effective in vacuum cleaner products which have high financial, performance, and/or physical risks (Friedman and Friedman 1979). The use of a typical consumer is more effective in cookies where the above risks mentioned are low.
In terms of sustaining recall of the advertisement and the brand name of the product, the celebrity endorsement was known to be more effective than the use of experts and/or typical consumers, regardless of product types (Friedman and Friedman 1979).

  Celebrities’ Multiple Product Endorsements

     Prior studies (Mowen and Brwon 1981; Mowen, Brown, and Schulman 1979) suggest that knowing that a celebrity endorses multiple products negatively affects consumers’ perceptions of endorser trustworthiness, brand image, and ad evaluations. Utilizing attribution theory, Kelly (1973) contends that multiple product endorsers are evaluated less favorably than single product endorsers, hence, ‘multiple product endorsements precipitate differences in consumers’ perceptions of the endorsers (Tripp, Jensen, and Carlson 1994).
Tripp, Jensen, and Carlson (1994) suggest that ‘the number of products a celebrity endorses negatively influences consumers’ perceptions of endorser credibility and likability, as well as attitude toward the ad, and the number of exposures to the celebrity endorser has an impact on attitude toward the ad and purchase intention’ (1994). Tripp, Jensen, and Carlson (1994) also found that the number of products endorsed by the celebrity and the number of exposures to the celebrity do not affect consumers’ attitudes.

  Cross-Cultural Study in Celebrity Endorsement in Advertising

    Korea is characterized as a collectivistic and high-context culture whereas the United States is characterized as individualistic and low-context (Cho et al. 1999; Hofstede 1984; Taylor, Miracle, and Wilson 1997). In a collectivistic culture like Korea, celebrities could be considered more credible and influential than in an individualistic culture. According to the recent study by Choi, Lee, and Kim (2005), consumers in a high-context culture are more likely to be ‘familiar with indirect or implicit ways of communication via a symbol’ than those in a low-context culture. Hence, the use of celebrity can be more effective in a high-context culture like Korea than in a low-context culture like the United States.
      Therefore, the celebrity endorsement may be considered an effective marketing strategy in Korea. However, it is not yet known whether this cultural uniqueness collectivistic with high-context culture applies to the reason why the use of celebrity endorsement is so prevalent in Korea and whether it is effective communication in advertising. In their 2005 study, Choi, Lee, and Kim found that celebrities in US advertising are featured as themselves while celebrities in Korean advertising are more likely to act in roles. It is also known that there is similarity when it comes to using celebrity strategy mainly to a certain product category, such as food, beverage, personal care products (Choi, Lee, and Kim 2005). This study result is consistent with ELM that celebrities can be more effective in low involvement product category

 

    Research Questions and Hypotheses

 RQ 1 How do consumers in Korea view multiple product endorsements by celebrities?

 RQ 2 How do multiple product endorsements affect advertising and brand evaluation?

 

 H 1 Consumers in Korea will not view celebrities endorsing multiple products

        negatively.

 H 2 The number of products a celebrity endorses will not negatively affect consumers’

        perceptions of endorsers credibility and likability, as well as attitude toward

        the ad.

 H 3 Celebrities’ product endorsements will be more effective in low-involvement

        products than in high-involvement products.

 

    Methodology

     For this study the actual TV commercials featuring Korean celebrities will be employed, rather than creating experimental stimuli. A Korean celebrity, Jung Ji-Hoon who is a famous singer known as Rain in most Asian countries, will be employed in the study. His product/service TV commercials will be tested on 200 college students in return for extra credit. He appears in different product categories, ranging from drinks, fried chicken, credit cards, notebook computers, and boilers. The TV commercials will be divided according to product type (low-involvement vs high involvement). This experiment will operate online.

Low-involvement Product TV Ads - drink, fried chicken
High-involvement Product TV Ads - notebook computer, boiler, and credit card

     

    References

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    About the Author

Nam-Hyun Um is a PhD student in the Department of Advertising at the University of Texas at Austin. His current research interests include cross-cultural study, celebrity endorsement, and the relationship between advertising and brand loyalty. To contact him, please, send mail to: goldmund@mail.utexas.edu