Abstract

The use of celebrity endorsement strategy is nowadays more frequently used by marketers in order to increase their sales and thereby extend their market shares. Many celebrities are used in various marketing campaigns and in most cases; the use of celebrities as endorsers is seen from mainly positive aspects. This made the authors curious whether the negative aspects, that also exists when using celebrities as endorsers, affects consumers in their purchasing decisions when a celebrity gets associated with negative publicity. Another cause of interest is which factors of a certain celebrity are most important and crucial in consumers’ perceptions, in the case of negative publicity.

Purpose: The purpose of this thesis is to study which factors consumers find important for a company to consider when a celebrity gets negative publicity, to maintain successful brand recognition.

Literature review: The use of previous studies within the field of celebrity endorsement clarifies many important aspects when it comes to celebrity endorsement and this chapter is elaborated from 4 different perspectives; Company, Celebrity, Brand and Consumer. Based on previous studies, the authors identified 6 crucial attributes when using celebrities as endorsers and this can also be seen as a pre-study that the research process has been based upon. Furthermore, the 6 attributes are chosen from the three first mentioned perspectives in order to be able to fulfil the purpose. Hence, this thesis is conducted from a consumer’s point of view.

Method: A quantitative method is used in this thesis since the authors want to base the results on collected data that is expressed in numbers and also to generate a general apprehension in this phenomenon. Moreover, the combinations containing the 6 attributes are used in the conjoint experiment.

Conclusions: It was proven in this study that consumers do get affected by celebrities as endorser, when the attributes from the literature review are in a combination. But, the consumers’ perception of the attributes differs in different cases. However, the main finding was that there are two crucial attributes, trustworthiness and expertise that companies should take into account when using celebrities in their advertising campaign.