THE EFFECT OF CELEBRITY

THE EFFECT OF CELEBRITY

ENDORSEMENT ON

PURCHASE INTENTIONS FOR

FAIRTRADE PRODUCTS

M

ASTER

T

HESIS

D

EFENSE

L

AURA BREMER

13.07.2017

MS

C

M

ARKETING

M

ANAGEMENT

F

ACULTY OF

E

CONOMICS

U

NIVERSITY OF

G

RONINGEN

1

ST

_S

_UPERVISOR

_{: D}

_R

_{. W}

_ANDER

_J

_AGER

2

ND

_S

_UPERVISOR

_{: D}

_R

_{. J}

_AN

_W

_ILLEM

_B

_OLDERDIJK

INTRODUCTION

•

A

CTUAL CONCERNS QUESTION

P

EOPLE

’

S BEHAVIOR

•

S

USTAINABLE PRODUCTS

? FAIRTRADE

•

M

ARKETING OF SUSTAINABLE PRODUCTS CAN BE A

POWERFUL TOOL IN MAKING THE PEOPLE MORE

CONSCIOUS ABOUT THEIR BEHAVIOUR AND HOW THEY

CAN CONTRIBUTE TO THE SUSTAINABILITY OF OUR PLANET

EARTH

•

NPO

S NEED TO APPLY COMMON MARKETING TOOLS

•

T

HE MAIN GOAL OF THE NON

-PROFIT ORGANIZATION IS

“[…]

TO REFORM INTERNATIONAL TRADE RULES AND CREATE A FAIRER ECONOMIC SYSTEM

.”

(FAIRTRADE.NET, 2017)

•

B

ETTER TRADING CONDITIONS



FAIR PAYMENT FOR SMALL FARMERS

&

WORKERS

•

E

NSURING ENVIRONMENTALLY FRIENDLY

&

SUSTAINABLE

INTRODUCTION

•

A

CTUAL CONCERNS QUESTION

P

EOPLE

’

S BEHAVIOR

•

S

USTAINABLE PRODUCTS

? F

AIRTRADE

•

M

ARKETING OF SUSTAINABLE PRODUCTS CAN BE A

POWERFUL TOOL IN MAKING THE PEOPLE MORE

CONSCIOUS ABOUT THEIR BEHAVIOUR AND HOW THEY

CAN CONTRIBUTE TO THE SUSTAINABILITY OF OUR PLANET

EARTH

•

NPO

S NEED TO APPLY COMMON MARKETING TOOLS

D

OES CELEBRITY ENDORSEMENT DIRECT CONSUMERS

’

PURCHASE INTENTIONS TOWARDS PRO

-

ENVIRONMENTAL

,

HENCE

F

AIRTRADE

,

PRODUCTS

?

HYPOTHESIS 1

•

C

ELEBRITY

E

NDORSEMENT



P

REVALENT MARKETING STRATEGY

(ERDOGAN, 1999)



C

REATES AN ASSOCIATIVE LINK BETWEEN A CELEBRITY AND A

BRAND

/

PRODUCT

/

SERVICE

(T

ILL AND

S

HIMP

, 1998)



A

DVERTISEMENT HAS THE CHANCE TO STAND OUT OF THE OTHER ADVERTISEMENT CLUTTER AND THEREFORE TO REACH A BIGGER AUDIENCE

(S

HERMAN

, 1985).



V

ERY EFFECTIVE

,

DUE TO THEIR

“[…]

SYMBOLIC ASPIRATIONAL REFERENCE GROUP ASSOCIATIONS

.”

(B

YRNE ET AL

., 2003)

HYPOTHESIS 1

HYPOTHESIS 2

H2: People are more likely to buy Fairtrade products, when the endorsing celebrity is

related to pro-environmental behaviour and is a credible source (which means

being trustworthy, having expertise and being attractive) in terms of

HYPOTHESIS 2

H2: People are more likely to buy Fairtrade products, when the endorsing celebrity is

related to pro-environmental behaviour and is a credible source (which means

being trustworthy, having expertise and being attractive) in terms of

pro-environmental concerns.

•

C

REDIBILITY OF

C

ELEBRITY



M

ATCH

U

P

H

YPOTHESIS

(L

EE AND

K

OO

, 2016)



F

IT BETWEEN CELEBRITY

’

S EXPERTISE AND BRAND

/

PRODUCT

/

SERVICE

INCREASES CELEBRITY

’

S CREDIBILITY

(K

AHLE AND

H

OMER

, 1985)

HYPOTHESIS 3

H3: A celebrity endorser leads to a positive attitude towards Fairtrade, which in turn

increases the purchase intention for Fairtrade products.

HYPOTHESIS 3

H3: A celebrity endorser leads to a positive attitude towards Fairtrade, which in turn

increases the purchase intention for Fairtrade products.

•

ATTITUDE TOWARDS

FAIRTRADE

PRODUCTS



A

TTITUDE IS THE EXTENT TO WHICH AN INDIVIDUAL EVALUATES A SPECIFIC

BEHAVIOUR IN A FAVOURABLE OR UNFAVOURABLE WAY

(A

JZEN

, 1991)



A

TTITUDE IS THE BEST PREDICTOR FOR PURCHASE DECISISONS

(F

ENNIS

& S

TROEBE

, 2016)

Celebrity Endorsement (X) Purchase Intention for Fairtrade Products (Y) Credibility of Celebrity (W1) Attitude Towards Fairtrade Products (M) H1 H3 H2 Covariates:

- Congruence of Advertisement and Celebrity

Cond. 3 / Control Group: Fake-Celebrity Cond. 2: NOT Related to Pro-Environmental Behavior Cond. 1: Related to Pro-Environmental Behavior

•

P

RE

-S

URVEY

•

W

HICH CELEBRITIES

/

NON

-

CELEBRITIES ARE

APPROPRIATE FOR MAIN

-

SURVEY

?

•

M

AIN

-S

URVEY

•

(N=) 202

PARTICIPANTS

•

S

URVEYS WERE RANDOMLY SENT OUT VIA

F

ACEBOOK

, W

HATS

A

PP

& I

NSTAGRAM FOR

1

WEEK

•

7

SECTIONS

•

5-P

OINT

-L

IKERT

S

CALE

•

P

RODUCT USED

: B

ANANAS



U

NIVARIATE ANALYSIS OF VARIANCE IN

SPSS



V

ARIABLE OF ANALYSIS

: C

REDIBILITY OF

C

ELEBRITY

✓

R

ESULTS INDICATE SIGNIFICANT

DIFFERENCE BETWEEN THE

3

CONDITIONS

➢

F(2, 199) = 135,007,

P

= 0,000

✓

M

ANIPULATION FUNCTIONED

!

MANIPULATION CHECK

1

2

3

3,94

_2,23

3,20

•

H

YPOTHESIS

1

•

O

NE

-

WAY

ANOVA

•

R

ESULT IS INSIGNIFICANT

•

F(2, 199) = 0,493,

P

= 0,612;

P

> 0,05

A

LPHA

-L

EVEL

•

CELEBRITIES HAVE NO DIFFERING EFFECTS ON THE PARTICIPANTS

’

PURCHASE INTENTIONS COMPARED TO THE FAKE

-

CELEBRITY

➢

H

YPOTHESIS

1

NEEDS TO BE REJECTED

➢

PEOPLE ARE NOT MORE LIKELY TO BUY

F

AIRTRADE PRODUCTS WHEN THEY ARE ENDORSED BY A CELEBRITY

RESULTS (1/3)

3,26 3,32 _3,2 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5

Emma Watson Kim Kardashian Ivy Caleb / Fake-Celebrity 5-POI NT -LI KE R T SCAL E

Diagram: Average Values of the "Purchase

•

H

YPOTHESIS

2

•

M

ODERATION ANALYSIS VIA

MACRO

PROCESS

IN

SPSS

WITH

M

ODEL

1

•

R

ESULTS ARE INSIGNIFICANT

•

H

YPOTHESIS

2

NEEDS TO BE

REJECTED

➢

N

EITHER

E

MMA

W

ATSON

,

NOR

K

IM

K

ARDASHIAN COMPARED TO THE FAKE

-

CELEBRITY

,

HAVE AN INFLUENCE ON THE

P

URCHASE

I

NTENTION FOR

F

AIRTRADE

P

RODUCTS

(Y),

WHEN THE

C

REDIBILITY OF THE

C

ELEBRITY

(W1)

MODERATES THE RELATIONSHIP

.

RESULTS (2/3)

Model

Summary R R2 MSE F DF1 DF2 p

0,326 0,1062 0,4838 2,8678 8 193 0,0049

•

H

YPOTHESIS

3

•

M

EDIATION ANALYSIS VIA MACRO

PROCESS

IN

SPSS

WITH

M

ODEL

4

•

O

VERALL MODEL WAS SIGNIFICANT

➢

R2 = 0,2518, F(6, 195) = 10,9358,

P

= 0,0000;

P

< 0,05 A

LPHA

-L

EVEL

•

R

ESULTS ARE SIGNIFICANT

➢

D

IRECT EFFECTS INSIGNIFICANT

➢

R

ELATIVE

I

NDIRECT EFFECTS OF

X

ON

Y

K

IM

K

ARDASHIAN

95% CI (0,0953, 0,3442)

➢

F

ULL

M

EDIATION

✓

H

YPOTHESIS

3

CAN BE ACCEPTED

➢

CELEBRITY ENDORSEMENT INCREASES THE ATTITUDE TOWARDS

F

AIRTRADE

,

WHICH FINALLY INCREASES THE INTENTION TO PURCHASE

F

AIRTRADE PRODUCTS

•

H

OMOGENEOUS SAMPLE



20

TO

29

YEARS OLD



H

IGHER EDUCATION

•

T

OO SMALL SAMPLE

•

P

ARTICIPANTS WERE NOT PRONE TO BEING INFLUENCED BY OTHERS

•

T

YPE OF EXPERIMENT

:

SURVEY



S

TARTING POINT WERE GENERAL QUESTIONS ABOUT

F

AIRTRADE

•

5-P

OINT

-L

IKERT SCALE

•

L

OW

C

RONBACH

’

S

A

LPHA OF ITEM SET OF VARIABLE

A

TTITUDE TOWARDS

F

AIRTRADE

•

U

SAGE OF ONLY ONE PRODUCT IN SURVEY

: B

ANANAS

DISCUSSION

•

C

ONSCIOUS CONSUMERS ARE MORE LIKELY TO ENGAGE IN A CONSUMPTION

BEHAVIOUR

,

THAT IS NOT POPULARLY ACCEPTED

(W

EBSTER

, 1975)



9,6%

OF

TV

ADS IN THE

U.S.

INCLUDE CELEBRITY ENDORSEMENT

(C

HOI

, L

EE

& K

IM

,

2005)



C

ONSCIOUS CONSUMERS ARE RELUCTANT TO MASS MARKETING

•

C

ONSCIOUS CONSUMERS

= “

LABEL

-

READERS

”

•

T

EST PURCHASE INTENTION FOR

F

AIRTRADE PRODUCTS IN A

‚

REAL LIFE

SITUATION

‘



D

IFFERENT POSTERS IN DIFFERENT TIME PERIODS AND DIFFERENT SUPERMARKETS



C

HECKING VIA

S

CANNER

P

ANEL

D

ATA FOR DIFFERENCES BETWEEN THE PURCHASE DECISIONS MADE WITHIN THE DIFFERENT CONDITIONS

✓

S

UPERMARKET ENVIRONMENT INCREASES VARIETY

(

AND SIZE

)

OF SAMPLE



P

OST

-

PURCHASE INTERVIEW OR SURVEY TO TEST KNOWLEDGE AND ATTITUDE TOWARDS

F

AIRTRADE

✓

U

SAGE OF E

.

G

. 7-

POINT

-L

IKER

-S

CALE INCREASES VARIETY OF ANSWERS

•

U

SAGE OF BOTH

:

LOW

-

AND HIGH

-

INVOLVEMENT PRODUCT