Impact of advertisement by celebrities on Customers purchase behavior in Malaysia By NAKISA ROSTAMIAN A project paper submitted in part fulfillment of the requirements for the degree in Master of Arts in Communication


Impact of advertisement by celebrities on
Customers purchase behavior in
Malaysia

By
NAKISA ROSTAMIAN
A project paper submitted in part fulfillment of the requirements for the degree in Master of Arts in Communication (Communication in advertising)

Limkokwing University of Creative Technology

NOVEMBER 2018

ACKNOWLEDGEMENT

I wish to express my deep gratitude to and respect the Dr,Akeem my supervisor in this study was support and give me advice when I worked on this study. Its orientation is the reason why I could get an idea so this research.

DEDICATION

I am so grateful to my family and My Dear Behnam who supported me and encouraged me throughout my life and study. I am proud to Them, they have always loved and helped me during all these years. Encouragement made me work on this study in a good situation.

Thank you to all my friends who have shared their knowledge with me while I was a student at the university.

ABSTRACT

Attracting customers to a brand, product or service is a very vital matter for every
company or organization. Nowadays there are many different strategies which can
attract customers toward a brand; one of these strategies is celebrity advertisement.
People have different views over celebrities and as long as celebrities are important
people in society, they can influence others and when it comes to a marketing point
of view, companies advertise them to transfer their credit to their products or brands.
The main aim of this study is to understand whether celebrity advertisement strategy
has any effect on customers in the capital city of Malaysia, Kuala Lumpur and on the
other hand to find out if these effects are positive toward the customer purchase
behavior.
Researcher wants to examine the factors of celebrity’s characteristics which can
influence customers and their behavior toward brands and products. This study
examines four different dimensions of celebrity’s characteristics such as credibility,
attractiveness, expertise and the match-up between celebrity and the product/service.
According to the results, the researcher wants to recommend to other researchers
clues to improve this strategy and suggest new opportunities for future studies.
A structured questionnaire was designed to gather data from samples to help the researcher find the answer to research questions in this scope. Finding of this information can help the researcher find the relationship between dependent and independents variables of the conceptual framework.
Data was collected and analyzing its results showed that all four dimensions have a positive effect on customers purchase behavior in Kuala Lumpur of Malaysia, therefore this strategy is a useful marketing strategy to attract customer?s attention toward product/brand in this country.

TABLE OF CONTENTS

Page
DECLARATION 2
ACKNOWLEDGEMENTS 3
DEDICATION………………………………………………………………………………………….…….3
ABSTRACT……………………………………………………………………………………………….….4
TABLE OF CONTENTS. 5

CHAPTER 1 INTRODUCTION………………………………………………………………………….12
1.1 Introduction………………………………………………………………………………………….12
1.2 Background of Study 12
1.3 Problem Formulation 11
1.4 Research Questions 15
1.5 Research Objectives 15
1.6 Significance of the Study 15
1.7 Scope of the Research 16
1.8 Outline of the Study 17

CHAPTER 2 LITERATURE REVIEW 19

2.1 Foreword 19
2.2 Celebrity Advertisement 19
2.3 Celebrity Advertisement and 21st Century 21
2.4 Gap between Reality and Image 22
2.5 Advantages and Disadvantages of Celebrity Advertisement Strategy 21
2.6 Benefits of Using Celebrity Advertisement 26
2.6.1 Draw Attention….. 26
2.6.2 Improving Image 26
2.6.3 Brand Introduction 26
2.6.4 Repositioning the Brand 27

2.7 Risks of Celebrity Advertisement 27
2.7.1 Possible Negative Publicity 28
2.7.2 Overshadowing 28
2.7.3 Overexposure 29
2.7.4 Overuse 29
2.7.5 Extinction 29
2.7.6 Financial Risk 30
2.7.7 Reducing Risk of Celebrity Advertisement 30
2.8 ROI and Celebrity Advertisement 31
2.9 Dead Celebrities 31
2.10 Celebrities Advertisement and Consumers Buying Behavior 32
2.11 Athletes as Advertisers 33
2.12 Professional Advertisers and Celebrity Advertisement 35
2.13 Theory of Source Characteristic 36
2.13.1 Source Credibility 37
2.13.2 Source Credibility – Expertise 38
2.13.3 Source Credibility – Trustworthiness 39
2.13.4 Source Attractiveness 40
2.13.4.1 Source Attractiveness – Similarity 40
2.13.4.2 Source Attractiveness – Likeability 41
2.13.5 Source Power 42
2.14 Match Up 42
2.15 The Elaboration Likelihood Model 43
2.16 McCracken Culture Meaning Transfer Theory 44
2.16.1 First stage: Meaning Acquisition/Culture 45
2.16.2 Second Stage: Advertisement 45
2.16.3 Third Stage: Consumption 46
2.17 AIDA Model 47
2.17.1 Celebrity Advertisement Brand Equity Model 47
2.17.2 Co-Branding and its Impact on Brand Equity 48
2.18 Factors of Co-Branding that Affect Consumer Based Brand Equity 49
2.18.1 Congruency 49
2.18.2 Celebrity Attractiveness 50
2.18.3 Celebrity Credibility 50
2.19 Relation of Social Influence and Celebrity Advertisement 50
2.20 Multiple Celebrity Advertisement 51
2.21 Gender and Age of Celebrity 51
2.22 Proposed Conceptual Framework 52
2.23 Summary 53

CHAPTER 3 RESEARCH METHODOLOGY 55
3.1 Foreword 55
3.2 Research Design 55
3.3 Proposed Conceptual Framework 56
3.3.1 Independent Variables 57
3.3.2 Dependent Variable 57
3.4 Hypothesis Development 57
3.5 Research Instrument 58
3.5.1 Questionnaire Design 58

3.5.2 Sampling 59
3.6 Sources of Data 60
3.6.1 Primary Data 60
3.7 Pre-test Sample/Pilot Study 60
3.7.1 Reliability 61
3.8 Summary 62

CHAPTER 4 ANALYSIS OF DATA 63
4.1 Introduction 63
4.2 Demographic of Respondents 63
4.2.1 Respondents? Age 64
4.2.2 Respondents? Gender 65
4.2.3 Respondents? Race 66
4.2.4 Respondents? Marital Status 67
4.2.5 Respondents? Level of Education 68
4.2.6 Respondents? Monthly Income 69
4.3 EFA/Exploratory Factor Analysis 70
4.4 KMO and Bartlett?s Test 70
4.4.1 Attractiveness 71
4.4.2 Credibility 72
4.4.3 Expertise 72

4.4.4 Match 73
4.5 Reliability 73
4.6 Multiple Regressions 75
4.7 Residual Analysis 79
4.8 Hypothesis Testing 81
4.9 Conclusion 82