Abstract
In this study, we apply an econometric methodology to empirically examine the potential roles of a host of key factors on the part of the consumer in affecting the level of effectiveness (persuasiveness) of celebrity endorsement in advertising. Based on first-hand data obtained from surveys and using an econometric approach, we design and implement our empirical analysis. The analysis leads to estimation results showing that gender of the consumer matters critically in determining the level of effectiveness that persuasion of celebrity endorsed advertising could possibly reach. Through our regression exercise, we also find that the effectiveness of celebrity endorsed advertising crucially depends on the level of consumer income. In addition, our regression results also suggest that the socio-cultural background of the consumer plays a critical role in affecting the persuasiveness level of celebrity endorsed advertising.
Highlights
Celebrity endorsement in advertising can be understood as a channel of communication where celebrities act as spokesperson of a commercial product and by extending their popularity and personality they certifies the product’s claim and position (Friedman and Friedman, 1979)
We apply an econometric methodology to empirically examine the potential roles of a host of key factors on the part of the consumer in affecting the level of effectiveness of celebrity endorsement in advertising
This study is a survey-based econometric analysis aiming to explore the potential roles of a host of key factors on the part of the consumer in affecting the level of persuasiveness provided by celebrity endorsement in advertising
Summary
Celebrity endorsement in advertising can be understood as a channel of communication where celebrities act as spokesperson of a commercial product and by extending their popularity and personality they certifies the product’s claim and position (Friedman and Friedman, 1979). This study is a survey-based econometric analysis aiming to explore the potential roles of a host of key factors on the part of the consumer in affecting the level of persuasiveness provided by celebrity endorsement in advertising. We focus on the effects of various consumer characteristics on the expected persuasiveness level of celebrity endorsed advertising. Our research is motivated by the fact that the level of effectiveness of celebrity endorsed advertising depends crucially on the reaction of the potential consumers, which is in turn determined on the various consumer characteristics.
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