Interdisciplinary Journal of Research in Business
Vol. 1, Issue. 10, (pp.67- 72) November, 2011
Relationship of Celebrity Endorsement with Consumers Impulse Buying in
Peshawar, Khyber Pakhtunkhwa, Pakistan
Murad Hussain
Lecturer, Institute of Management Sciences, Kohat University of Science and Technology (KUST), Kohat, Khyber
Pakhtunkhwa, Pakistan.
Email: [email protected]
Sheikh Raheel Manzoor
Lecturer, Institute of Management Sciences, Kohat University of Science and Technology (KUST), Kohat, Khyber
Pakhtunkhwa, Pakistan.
Email: [email protected]
Shamsurrehman
Lecturer, Institute of Business and Management Sciences, Khyber Pakhtunkhwa Agricultural University Peshawar,
Pakistan.
Email: [email protected]
Syed Rashid Ali
Department of Social Work & Sociology, Kohat University of Science & Technology-Pakistan
Email: [email protected]
Zia-ud-din
Lecturer, Institute of Management Sciences, Kohat University of Science and Technology (KUST), Kohat, Khyber
Pakhtunkhwa, Pakistan.
Imran
Lecturer in Sociology, Department of Social Work & Sociology, Kohat University of Science and Technology (KUST),
Kohat, Khyber Pakhtunkhwa, Pakistan.
Email: [email protected]
ABSTRACT
This research is mainly conducted to find out the relationship of celebrity endorsement and consumer impulse
buying. This research shows the behavior of the consumer in Khyber Pakhtunkhwa. Peshawar is taken as area
of the study. The data is collected from three shopping markets on random basis from the university road
markets i.e. Jawad Tower, City Tower and Wadood Sons. Chi-square is applied to get appropriate result.
Survey research method is used by distributing structured questionnaires to a sample size of 95 respondents
from these targeted markets. The result shows that that celebrity endorsement has no relationship with impulse
buying of the consumers.
Key words: Celebrity endorsement, Consume behavior, Impulse buying, and measurement
1.
INTRODUCTION
In today’s cut throat competition among business rivals, knowledge about the consumer is the first step toward a
successful competitive strategy. To accumulate accurate information about consumer behavior is the main
purpose of marketing research. To understand why and how people acquire products is part of the focus of
marketing concepts. The process used by individual in selecting, purchasing and using good and services is of
utmost importance to the marketers. And the course of action which consumer adopts to purchase a product is
the subject matter of consumer behavior. Consumer behavior may be defined as the decision process and
physical activity that individual is engaged in when evaluating acquiring, using disposing of goods and services
(Loudon and Bitta, 1988). The study of consumer behavior is very complex but it is necessary for the marketers
to know about their target market how they behave, what influences them to make a decision to buy and what
process they follow when selecting a product or service, And to understand this behavior is actually the study of
consumer behavior.
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Vol. 1, Issue. 10, (pp.67- 72) November, 2011
The term celebrity refers to an individual who is known to the public (Actor, Sports figure, Entertainer etc) for
his/her achievements in areas other than that of the product class endorsed. This is true for classic form of
celebrities, like actors e.g. Shan, Arbaz khan of Lollywood and Amitabh Bachan, Shahrukh khan, Salman khan
and Katrina Kaif of Bolly wood, models Malaika Arora, Lisa ray, Aishwaryarai, sports figures e.g. Shahid
Afridi, Younis Khan, Shoaib Akhtar and Sachin Tendulkar, entertainer e.g. Umer Sharif, Shakeel Khan, Mr.
Been and pop stars e.g. Madonna, David Bowie, but also for less obvious groups like business man e.g. Donald
Trump, Bill Gates or politicians. Even in Pakistan, every day consumer is exposed to thousand of voices and
images in magazines, newspaper and billboards, websites, radio and television. Every brand has the chance to
steel at least a friction of an unsuspecting person’s time to inform him/her of the amazing and different attributes
of the product at hand. The challenge of the marketer is to find a hook that will hold the subjects attention.
The use of celebrities will lead to greater impulse buying behavior. However, despite the fact that celebrities are
consistently used in television commercials and huge amounts are spent on them, little research has done on this
in Eastern work setting. Though, as discussed above, the relationship between “celebrity endorsement and
impulse buying” has been investigated in different places of the world however, no research (as per researchers’
knowledge) in general and Pakistan in particular, has yet been conducted that have studied the relationship
between celebrity endorsement and impulsive buying.
The current study has conducted on when and why impulse buying happens. In the 21 st century, increased access
to retail stores, shopping malls and internet technology is having very particular consequences on consumer
buying pattern. At present, modern societies provide ever increasing opportunities for unplanned spending.
However Advancement in technology such as ATM, twenty four hours convenience and grocery stores, shop at
home television programs and internet shopping are reasons to act more instantly and buy around the clock.
2.
LITERATURE REVIEW
There are different styles of consumer buying behavior but, the area of interest here for the researcher is impulse
buying behavior. Impulse buying behavior is a puzzle in the marketing world, because it has been of theoretical
and practical worth in economics, consumer behavior and psychology. Therefore impulsiveness of buyers or
spontaneous buying behavior is a key area of investigation in consumer behavior research. There are many
forms of impulse buying behavior. It includes four characteristics i.e. “it is unplanned it is the result of exposure
to stimulus it is decided on the spot and “it involves an emotional and or cognitive reaction (Piron, 1991). It is
opposite to a planned purchase, impulse buying is an unstructured and instant purchase where the consumer is
not actively looking for a product and has no previous plan to purchase because planned buying behavior
involves a time consuming information search followed by rational decision making (Piron, 1991; Stern, 1962).
There are many clear and obvious figures from many researcher point of views and has given different
percentage of impulse purchases or unplanned purchases. Most people almost 90% make purchases on impulse
occasionally (Welles, 1986). Early researcher were mostly interested in the questions that what type of product
is having more tendencies to be purchase impulse or unplanned and what kind of retail stores would obtain
unplanned buying. Ever since 1980, research has focused more on the question of whom, what type of consumer
likely to engage in impulse buying?
Impulse buying behavior is synonymous to unplanned buying and defines it as any purchase which a shopper
makes but has not planned in advance (Stern, 1962). Impulse buying behavior is a puzzle in the marketing
world. Impulse buying has been of theoretical and practical significance to economics, consumer behavior and
Psychology. The mainstream consumer behavior and marketing approach has produced theoretical list of those
goods that are likely to buy impulsively (Ballenger et al, 1978). Prior to 1982 impulse buying focused on the
product rather than consumer as the motivator of impulse purchases (Hausman, 2002). Impulse buying is mostly
associated with an unplanned and sudden purchase which is initiated on the spot, accompanied by a powerful
urge and felling of pleasure and excitement (Rook et al, 1995)
Those consumers who purchase products are based on reason, the foundation of an assessment of costs and
benefit, the majority of people less based on reasons and their buying behavior. It has now long been recognized
and in the consumer behavior literature that consumer purchase behavior hardly ever grow after the principles
of economic theory, consumer purchases often seem to be desire, mood or emotion driven, which thus seems
natural and the default state of affairs (Etzoni, 1986).
Gender has given important role in other research methodologies which is the main reason of impulse buying
due to the difference in their perception. According to Colly and Burges (2003) consumer buy products for all
kind of reasons other than because these are strictly necessary, such as to relieve a depress mood, to express an
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Vol. 1, Issue. 10, (pp.67- 72) November, 2011
identity or simply for fun. Significant segment of sales comes through impulse purchase which shows that
impulse buying is a key subject to both retailer and retail industry.
Impulse buying mostly take place on store position point of sale display at the departing point or checkout
counters known the most favorable location of product placement on shelves. Impulse buying largely depends
on resources such as money, time, physical and mental efforts (Stern, 1962). There are nine product related
factors that might be influential that are low price, marginal need for the product or brand, mass distribution, self
service, mass advertising, prominent store display, short product life, small size and ease of storage (Stern,
1962). These all nine variables appeal to impulse buying. Shoppers who planned to buy a product but still not
decided about which feature brand they want can also be considered impulse buyers.
The use of testimonials by advertisers dates back to the 19 th century when medicines were patented. Firms have
been juxtaposing their brand and themselves with celebrity endorsers (e.g. athletes, actors) in the hope that
celebrity may boast effectiveness of their marketing. The increasing number of endorsements throws a valid
question to the consumer, is there a science behind the choice of these endorsers or is it just by the popularity
measurement? What are the reasons which lead to impact of celebrity endorsement on self image? Self image
or self identity on other hand represents the totality of the individual’s thoughts and feelings (Arnold, Price &
Khan, 2002). From marketing perspectives, the study of self image is of particular relevance because the image
that individual associate with themselves frequently dictates specific purchase behavior pattern. For example,
consumer may buy a product because among other factors, they feel that the product enhance their own self image, similarly, consumer may decide not to buy a product at a particular store if they feel that these action are
not consistent with their own perception of themselves (Britt, 1966) .Consumer are aware of their own self
image and thus they use self image is a criterion in evaluating product (Kim, 1988).self image is a set of
knowledge and beliefs about one self that is stored in memory. As such it can be activated and recalled to
influence purchase decision. Product and services have symbolic images that are often more important to a
product’s success than are its actual physical attributes and characteristics (Aaker, 1991).Each person has a
believed self image as a certain kind of person with certain habits, relationship to claim that consumer, self
perception can have a strong influence on their behavior in the market place. Self concept may be defined as the
totality of the individual’s thoughts and feelings having reference to himself as an object (Sirgy, 1982). A
propensity to impulse buy will be at its strongest when there is a perceived self discrepancy, between the actual
self and the ideal self on the most important attributes to the person. Some consumer impulses buy goods that
offer them material symbols of personal and social identity (Dittmer et al, 1995). Hence, clothes are more likely
to be impulse bought than say, basic kitchen equipment for high impulse goods psychological buying motivation
become more powerful than price and usefulness, consumer buy because the purchase “puts me in a better
mood”, makes me feel more like the person I want to be “and” express what is unique about me”.
METHOD OF RESEARCH
This study uses quantitative data to test hypotheses related to consumer motivation to engage in impulse buying
with relation to celebrity endorsement and self image. The data is collected through survey research method
using structured questionnaire as a primary source of information gathered in Peshawar area.
3.1
Population
The area of interest from which sample size i.e. 95 is drawn is Peshawar city which represents the entire
population of Peshawar city.
3.2
Sampling Design
The sample size of this research was comprised of 95 respondents who are selected on random basis from
Peshawar city. The proposed shopping centers where questionnaires were distributed include: Wadood Sons,
City Towers and Jawad Towers.
3.3
Product Category
The response of the customers is basically measured on convenient goods and specialty goods. These are the
products which almost consumer buy in their daily routine. Convenient goods are like soap, shampoo, beauty
cream, tooth paste, news paper, beverages etc, while specialty products are like Camera, computer, clothes,
furniture, mobile phones, motor cars, air conditions jewelry etc.
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Interdisciplinary Journal of Research in Business
Vol. 1, Issue. 10, (pp.67- 72) November, 2011
3.4
Data Collection
The questionnaires were distributed on equal allocation basis in these three proposed markets. Keeping in view
the size of market one extra remaining questionnaire was allocated to city towers.
3.5
Hypothesis
Following hypothesis was tested by using proper statistical tool.
Ho:
Celebrity endorsement has no relationship with Consumers’ Impulse
Buying.
H1:
Celebrity endorsement has a significant relationship with Consumers’ Impulse
Buying
3.6 Statistical Model (Chi Square)
To test the hypothesis, chi-square is used to find out the relationship between celebrity endorsement and unplaned/impulse buying, which are given below in detail.
3.6.1
Chi-square
Pearson's chi-square is used to assess two types of comparison: tests of goodness of fit and tests of
independence. A test of goodness of fit establishes whether or not an observed frequency distribution differs
from a theoretical distribution. A test of independence assesses whether paired observations on two variables,
expressed in a contingency table, are independent of each other.
Calculating the test-statistic, the value of the test-statistic is
(Chaudhry and Kamal, 1996)
Where
Χ2 = Pearson's cumulative test statistic, which asymptotically approaches a χ2 distribution.
Oi = an observed frequency;
Ei = an expected (theoretical) frequency, asserted by the null hypothesis;
n = the number of cells in the table.
3.
STATISTICAL RESULTS AND FINDINGS
Based on the empirical study, data on the nature of purchase whether planned or unplanned with whether the do
respondents think their unplanned purchase is affected by the celebrity who used a product had been collected
from the respondents to arrive at the findings. Results of this research show that 28.4% of the respondents say
that they mostly purchase on pre planed basis and celebrity endorsement affect their purchases while 36.8% say
that they mostly purchase on pre planed basis but celebrities have no effect on their unplanned purchases when
they do. Only 9.5% of the respondents say that they do shopping on unplanned basis and their buying behavior
effected by the celebrities endorsed.22.1% of the respondents say that their buying behavior is always unplanned
but has no effect of celebrity on that .Majority of the respondents deny the effect of celebrities on their
unplanned buying. Data is given in Table 1.1 below.
Table 1.1 goes here
The chi square test was applied to see the association between purchasing nature (pre-planned/unplanned) and
celebrity endorsement. The chi square test value and significance value clearly shows that there is no association
between these two variables. It is tested by taking 10% level of significance, which is (sig, 0.292>.010). This
means that in Peshawar city there is no association between purchasing nature and celebrity endorsement. Data
is given in Table 1.1 below.
Table 1.2 goes here
4.
REASONS OF INSIGNIFICANCE
There are several reasons for this insignificance of research results .Some of them are growing trend of
talibanization, warnings to local celebrities and electronic media, life insecurity, bomb blasts and mental shocks,
homelessness and joblessness, ego problem, market access etc.
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Interdisciplinary Journal of Research in Business
5.
Vol. 1, Issue. 10, (pp.67- 72) November, 2011
CONCLUSION AND SUGGESTIONS
On the basis of the study findings following conclusions and recommendations are outlined.
5.1
CONCLUSION
The aim of this research was to find out the the relationship of celebrity endorsement with consumer impulse
buying in Peshawar city. Three markets were selected as a sample size to thoroughly investigate the impulse
buying behavior of the consumer in the light of celebrity endorsement, on which companies spend millions of
rupees every year. This research shows that celebrity endorsement has no relationship with impulse buying of
the consumer in Peshawar city. Chi-Square is used to test the relationship between celebrity endorsement and
consumer impulse buying. Different reasons are there of this insignificance like the growing trend of
Talibanization, kidnapping for ransom, bomb blasts, insecurity, social class down fall, warning to local
celebrities, mental shocks etc. All these have diverted the mind of consumers and resultantly they search for
discount in prices, sales allowances, premium, and coupon and do not consider celebrities.
5.2
SUGGESTIONS
This is high time for the advertising practitioners and all local and multinational companies to give attention to
the discount in price, premium, and allowances instead of spending high amount on celebrities. The
environment is not congenial for celebrities here in Pakistan and particularly in Peshawar city to get attention.
Pakistan is in a state of war, which has crippled its economy and disturbed the people mentally. It is better to
provide some relief to consumers through which they can improve their sales. Further research should be
conducted for gaining further insights on the phenomena at hand.
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Vol. 1, Issue. 10, (pp.67- 72) November, 2011
Table 1.1
Do you purchase mostly on............... * Do you think your unplanned purchase is affected
by the celebrity who used this product?
Do you think your unplanned
purchase is affected by the
celebrity who used this product?
Do you purchase
on...............
mostly Pre planed
Unplanned
Other
Total
No
35
Total
Count
Yes
27
% of Total
28.4%
36.8%
65.3%
Count
9
21
30
% of Total
9.5%
22.1%
31.6%
Count
2
1
3
% of Total
Count
2.1%
38
1.1%
57
3.2%
95
% of Total
40.0%
60.0%
100.0%
62
Table 1.2
Do you think your unplanned purchase is affected by the celebrity who used this
product?
Chi-Square Tests
Pearson Chi-Square
Likelihood Ratio
Value
2.464a
2.486
df
2
2
Sig. (2-sided)
.292
.288
72