Table consumers in Malaysia. A discussion on the problem

 

Table of Content
ABSTRACT.. 2
CHAPTER ONE: INTRODUCTION.. 3
Introduction. 3
Background of Study. 4
Objectives of the Study. 7
Research Questions. 8
Hypothesis of the study. 8
CHAPTER TWO: METHODOLOGY.. 9
Dependent and Independent
Variables. 9
Research Design. 10
Study population. 10
Research Instrument 11
Questionnaire Design. 11
Pilot Testing. 12
CHAPTER THREE: METHODOLOGY AND
ANALYSIS. 13
Introduction. 13
 

 

 

 

 

 

 

 

ABSTRACT

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Recent years have portrayed that many companies globally
have experienced growth and improvement in their marketing especially in the
form of celebrity product endorsement. Malaysian consumers has shown a high
interest in product used by celebrities of the country. This paper will be
focusing on the study on the effect of celebrity product endorsement on young
Malaysian consumers. The study was conducted by the research in Malaysia; Bukit
Jalil. The objectives of this study is to explore the relationship between value
added brand equity, consumer purchasing decisions and product congruency with
celebrity product endorsement, to identify the factors that affect or influence
celebrity product endorsement and to compare the effect of celebrity product
endorsement on young consumers in Malaysia. A discussion on the problem
statement of this study will be outlined in chapter one after a thorough
analysis of the research question.

 

 

 

 

 

 

 

 

 

 

CHAPTER ONE:
INTRODUCTION

Introduction

 

The purpose of this research paper is to study the
overall perception on celebrity product endorsement on young consumers here in
Malaysia. The study would also focus on studying value added index on brand
equity, consumer purchasing decisions and product congruency with the celebrity
endorser and see if the three aforementioned elements have a perception on
celebrity product endorsement. The end results of this research have great
importance on the promotion strategies adopted by commercial firms in product
marketing their branded goods and/or services. This research can also provide
implications on the impact of celebrity endorsement and its advertising on
developing nations around the world. Finally, this research could also add
value on educating young consumers into good decision making choices before
purchasing a product in the market.

 

Background of Study

 

One of the major and most commonly
used strategy in advertising nowadays by commercial companies is via celebrity
endorsements. The reason behind such an adoption is because in a perfect market
competition where products appear to be similar but can only be differentiated
by the strength of a brand name is to use an external force of public emerge of
a celebrity (Chan, Leung Ng and Luk, 2013). Therefore, in order to create a big
gap between rivalry companies in the same industry is to strength the brand name
of a particular product. The competency here is to outdo ones rivals by holding
on a grip of good and effective competitive advantage in the industry through
aggressive celebrity endorsement advertising (Spry, Pappu and Bettina Cornwell,
2011).

 

Thus, when advertising is being
conducted, commercial companies immaculately pick out endorsers so as to
amplify the characteristics of their branded products in the market. Ten years
ago, out of three advertisements aired on TV, one had a feature of celebrity endorsement.
In the recent years, celebrity endorsement advertisements have appeared vastly
on all media. Not only is the appearance done on TV’s, but as well as social
media platforms like Facebook ads, Instagram and YouTube ads. In United States
alone, about a fifth of all TV commercial feature a celebrity and about a tenth
of the money spent on TV advertisements alone is spent on celebrity
endorsements (Akturan, 2011).

Creating an emotional bond with
adverts through endorsements is yet another strategy adopted by endorsing firms
for branded products. This link of affiliated boding to the product creates a
memory in the heads of consumers and boosts their easiness in product decision
making strategy, product efficiency data mining, and product recommendation to
other consumers (Jain and Roy, 2016). This can be widely be seen in the
following international brand products with their international celebrity
endorsers; David Beckham with Giorgio Armani, Tyra Banks with Victoria Secrets,
Angelina Jolie with Lóreal and Charlize Theron with Dior.

Crossing borders to Malaysia,
celebrity endorsement has not been left behind. Various celebrities have been
used to endorse a particular product or brand. The purpose of such endorsement
is to effectively increase consumers’ belief and credibility on the sale of a
product. Associating the branded product to an endorsed celebrity helps
consumers remember the product easily and thus create a bond between safe
purchasing with the product. Thus, in order to create such a product bonding
with the customers, the localized customers need to be familiar with the
associated endorsed celebrity (Hassan Fathelrahman Mansour and Mohammed
Elzubier Diab, 2016). Below is a list of some of the common featured Malaysian
celebrities to a brand name or product.

 

 

 

 

Table
1:
Table constructed by researcher for the purpose of the study

Celebrity

Brand
name

Siti
Nurhaliza

Simplicity, Pepsi

Nur
Fazura

Neffos X1 Smart phone

Nora
Danish

Owl (Head Scarfs)

Fahrin
Ahmad

AliCafe

Aaron
Aziz

Dutch Lady

Fizo
Omar

F&N (condensed milk)

Yunalis
Mat Zara’ai

Calpis (drink)

Scha
Alyahya

Rexona, Yakult

 

According to a research conducted by
Boris, Alexandra and Damijan they explain perceived quality as bridging between
a brand product and consumers via celebrity endorsement. This is because
consumers tend to believe and remember the product quite easily as well as
having a concluded perception that the product is of high quality (Snoj, Pisnik
Korda and Mumel, 2004). Thus, managers of brand product can even rise the
prices of such products and consumers will be willing to buy regardless of the
insensitive price increase; inelastic demand.

Moreover, consumers envision celebrities
as an important and idolized reference group to anything revolving around the
market with respect to fashion trend and luxuries. This idolization is borne
due to the fact that the celebrity is famous, rich and most of the time
attractive. The notion of attractiveness is lined with sex appeal, physiques
and beauty/handsomeness (Silvera and Austad, 2014). Charlize Theron for example
earned $2 million USD every year on a three years contract signed under Dior
perfume. Her nomination and selection on this advert was based on her beauty,
sexiness and TV and acting personality. This increased the sales of Dior
perfume; J’Adore by double in a year (CBS News, 2017).     

 

 

Celebrities are as well used as the
spokesperson of a product in the market. This endorsement can at times be of
more than one type of product brand name. The reason behind such an association
tells the consumers that the endorsed celebrity has a very close affiliation to
the product brand and is well versed to the effectiveness and efficiency of the
product satisfaction and functionality. Thus, this creates assurance at the
hearts of the consumers and give in easily when it comes to product purchasing
decision making (Hsu and McDonald, 2002). For example, Siti Nurhaliza has been
the ambassador of L’Oreal and Vivo 5 mobile and Ziana Zain taking great toll on
being a spokesperson for Golden Chanel Jewellery.

Celebrity endorsement advertising has
so far been concluded as the best and most effective marketing strategy to be
adopted by firms. As such, many commercial companies and firms worldwide are
very ready to set aside bulk of their capital in investing on endorsements.
This is because they believe that it possess the aptitude of getting the
complete consumer’s attention and luring them into ultimate buying without
reluctance (Rollins and Bhutada, 2014). From 2010, Nike Company signed an eight
year contract with the worldwide renowned tennis player Maria Sharapova as the
face endorsed on Nike Products and accessories. The deal was sealed at a net
worth of $70 million USD. This was historically the first world’s richest
endorsement to be signed for a female athlete. Nike believes that this will
reap the company benefits in the coming years immediately after the incremental
revenues which is realised from incessant sales exceeds the contractual fee
expense (Melbourne, 2017).  

As much as celebrity endorsement is
taking a quick toll in advertising brand name products, there is less available
information about what is the implication on celebrity product endorsement
especially on young Malaysian consumers. Does the celebrity endorsement add any
product value to the brand equity of a product being sold in the market? Also,
are celebrity endorsement adverts effective towards consumer’s purchasing decisions?
And finally, does product congruency affect the effectiveness of a brand
product in young consumer’s purchasing ability? These questions are empirically
important because there is less published information regarding this issue.

Objectives of the
Study

 

The objectives of the study are as follows:

1.      To
explore the relationship between value added brand equity, consumer purchasing
decisions and product congruency with celebrity product endorsement

2.      To
identify the factors that affect or influence celebrity product endorsement

3.      To
compare the effect of celebrity product endorsement on young consumers in
Malaysia

Research Questions

 

The following are the research questions for this
research paper;

1.      What
is the relationship between value added brand equity, consumer purchasing
decisions and product congruency with celebrity product endorsement?

2.      What
factors affect or influence celebrity product endorsement?

3.      What
is the comparable effect of celebrity product endorsement on consumers in
Malaysia based on their gender biasness?

 

 

 

 

 

 

 

 

Hypothesis of the study

 

The proposed research hypothesis for this study is as
followed based on the variables of the research paper:

Table 2:
Hypothesis

HA

H0 A

There is no
significant relationship between celebrity product endorsement and value
added brand equity

H1 A

there is
a significant relationship between celebrity product endorsement and value
added brand equity

HB

H0 B

there is
no significant relationship between celebrity product endorsement and
consumer purchasing decisions

H1 B

there is
a significant relationship between celebrity product endorsement and consumer
purchasing decisions

HC

H0 C

there is
no significant relationship between celebrity product endorsement and product
congruency

H1 C

there is
a significant relationship between celebrity product endorsement and product
congruency

HD

H0 D

brand
equity is not a significant factor

H1 D

brand
equity is a significant factor

HE

H0 E

consumer
purchasing decision is not a significant factor

H1 E

consumer
purchasing decision is a significant factor

HF

H0 F

product
congruency is not a significant factor

H1 F

product
congruency is a significant factor

HG

H0 G

there is
no significant difference about celebrity product endorsement among different
ages of consumers

H1 G

there is
a significant difference about celebrity product endorsement among different
ages of consumers

Dependent and
Independent Variables

 

In this paper, the independent
variable which is the variable on test manipulated by the researcher as the
antecedent cause are value added on brand equity, consumer purchasing decisions
and product congruency. On the other hand, the dependent variable which is the
variable that is just placed on observation and is only measured as an
effectual result of the measurement retrieved from the independent variables is
celebrity product endorsement.

 

 

 

 

 

 

 

Figure
1:
Relationship between Dependent and Independent Variables

(Source:
Made for the purpose of the research)

 

Research Design

 

This research at its final output
will conclusively make a study on the effect of celebrity product endorsement
on young consumers in Malaysia. This research will be a quantitative in nature
as questionnaires will be issued as a primary data basis. Klang Valley will be
the most succinct place to conduct this research as it is a metropolitan city.
Under this study, the definition of young aged Malaysians are persons with age
bracket of 15 years to 30 years.

Study population

 

The population will consist of an
audience of Malaysian origin around the vast vicinities of Klang Valley. Under
this study, a sample size of 200 will be effective to draw out conclusive
clauses on the hypothesis proposed in the previous chapter above.

Research Instrument

 

This study will conclusively
subjected to a self-administered questionnaire which will be issued to
respondents online via Google Docs on Facebook platform and the feedbacks will
be collected back from them through the same process. The construction of the
questionnaire will be self-designed since no apparent questionnaire existed to
fit the tested independent variables for this study as well as for the study
population. Below is a description of the questionnaire.

 

Questionnaire Design

 

Generally, the questionnaire will
consist of five main sections namely A, B, C, D and E. the questionnaire will
be written in English language and will be a closed ended type of
questionnaire. This means that, all the respondents will be subjected in
choosing the enclosed answers in the questionnaire except for section A. The
purpose of doing such is because it will be easier for the researcher to
collect and analyse the data collected from the respondents as the margin of
difference in their responses will be null. Any question left unanswered will
completely nullify the whole questionnaire and thus it will be considered
invalid for analysis. Below is a description of the sections enclosed in the
questionnaire and their functionalities;

 

 

 

Pilot Testing

 

A pilot test will be conducted by the
researcher before the real survey where 10 mock questionnaire will be issued.
This is to minimise the errors that might arise from the design of the
questionnaire as well as to set a control on the authenticity of the projected
questions in the questionnaire. If inconveniences should arise regarding the
validity and nature of the questionnaire from the respondents’ side, then the
questionnaire will have to under-go a reconstruction so as to meet the
objective of this research.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE: METHODOLOGY AND ANALYSIS

Introduction

 

Inferential analysis is the most
widely used quantitative method to test the hypotheses. If there is any drawn
conclusion, it must be in a probabilistic method. It also can be used to check
the reliability of an argument and explain the research phenomenon. Independent
t-test, one-way ANOVA, Pearson’s Correlation Coefficient Analysis and Multiple
Regression Analysis are going to be applied in this study under this chapter.

 

In this study various statistical tests will be
conducted to accept and/or reject  the
hypothesis drawn in this paper. The test which were put into test were
independent t-test, one-way ANOVA, multi-linear regression and Pearson’s
correlation. All these tests will be ran in SPSS20 where the results of it can
be seen in chapter four of this paper. A number of 200 questionnaires were
issued to come up to the arrival of this test conduction where only 120
questionnaires were fully and correctly answered. In the final chapter of this
paper, a recommendation and conclusion will be outlined as well as the limitations
of this research.

 

 

 

 

 

 

 

 

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