“the Impact of Celebrity Endorsement on a Customer’s Buying Behaviour”
Reviewing The Literature:
This literature review aims to provide a comprehensive account of the different theories which will provide frameworks for answering market research questions relating to “The impact of celebrity endorsement on a customer’s buying behavior” and using celebrities in advertising and endorsing different products. Various Theories selected within this literature review are those which constitute a core of consumer buying behavior theory in relation with the marketing principles. In particular, the literature is also reviewed which genuinely examines the influence and impact of celebrities in advertising and endorsing various consumer products. …show more content…
In 2000 Tiger Woods renegotiated a 5 year contract with Nike estimated at $125 million. • Reebok - Venus Williams, famous tennis player and Wimbledon champ has signed a 5 year contract with Reebok International Inc. worth $40 million. (Chillibreeze, 2010).
In1995, U.S. Multi-nationals paid more than 1 billion $ to 2000 athletes for endorsement contracts for enhancing their sales, which means that approx. 10% of the expenditure on corporate sponsorships was spent on this particular promotion strategy. Famous combination of basketball star celebrity Michael "Air" Jordan along with Nike has become the sports products business euphemism for "a perfect fit". By the early 1993, 1 out of 3 pairs of athletic shoes sold in the U.S. were produced by Nike, with "Air Jordan" shoes and apparels contributing more than 200 million $ of sales in a year to the Nike empire.
The crescendo of Indian celebrities endorsing various brands has been steadily mounting over the past 3-4 decades. Marketers overtly acknowledge the intense power of celebrities in influencing a customers buying decision. Crores of rupees flown per year on celebrity endorsement contracts gives a clear picture that celebrities like superstar Shah Rukh Khan, Amitabh Bachchan and cricketer Sachin Tendulkar, M.S. Dhoni play an important and vital role for the Indian advertising industry. In India from late 1970's to the early 1980's, a new trend in