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org
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Vol.10, No.28, 2018

Celebrity Advertising, Brand Awareness and Brand Recognition:

A Structural Equation Modelling Approach
UGWUANYI, Chidera Christian*
Department of Marketing, University of Nigeria, Enugu Campus

OKEKE, Chioma Vivian

Department of Marketing, University of Nigeria, Enugu Campus

EMEZUE, Leonard Nnabugwu

Centre for Entrepreneurship and Development Research, University of Nigeria, Enugu Campus

Abstract
This research aims at ascertaining the effect of celebrity advertising on brand awareness of the endorsed brand
with the key dimensions used in measuring celebrity advertising been celebrity credibility and endorser-brand fit.
Using a causal research design, the conceptual framework was tested. Data was collected using a self
administered questionnaire on consumers in Enugu metropolis. The data were analysed using structural equation
modelling in partial least square (PLS-SEM) software. Our results suggest that endorser credibility and endorser-
brand fit has a direct impact on brand awareness. With celebrity attractiveness been the highest influence
followed by expertise, endorser-brand fit and the weakest been celebrity trustworthiness. While supporting some
past findings, this study shows that alongside celebrity credibility conceptualised as attractiveness, expertise and
trustworthiness, the endorser-brand fit is also a critical factor for consideration in using celebrity endorsers. This
present study is one of the first attempts to empirically test and confirm the impact of celebrity advertising on
brand awareness by simultaneously testing endorser credibility and endorser-brand fit influence on brand
awareness.
Keywords: Celebrity Advertising, Endorser Credibility, Endorser-brand fit, Structural Equation Model (SEM),
Brand Awareness, Brand Recognition

INTRODUCTION
The aim of any message is to achieve the purpose for which it was conceived. Companies, civil society
organizations and government agencies spend billions of naira annually placing one form of advertisement or the
other in the media. As a competitive strategy, companies in a bid to outsmart one another for customers’
attention have resorted to deploy various advertisement strategies, one of which is the use of celebrities to
advertise their products.
In recent times, three out of every five advertisement make use of celebrities. This they do in the hope that
such an appearance will instantly produce a ripple effect by making the product become popular and ultimately
influence audience to desire to purchase the product. The reality however is that several products in spite of the
highly expensive celebrity advertisement have failed to attract customer’s attention towards the products (Miciak
and Shanklin, 1994) let alone brand recognition and recall. Contrarily, Spry et al. (2011) opines that celebrity
endorsement bears a relationship with advertising effectiveness, brand recognition, brand recall, purchase
intentions and actual purchase.
Celebrities are often seen as possessing expert power, referent power and legitimate power to influence the
behavior of others (Tom et al., 1992). Till and Shrimp (1994), assert that companies have no control over
celebrities’ future behavior. Hence, the uncertainty with respect to returns that firm might be able to garner from
a brand given that negative information about the celebrity is capable of lowering consumers’ perception and
evaluation of the advertised brand. Liu (2001) also is of the opinion that advertisers do experience dilemmas
over the use of local celebrities for a global brand as the congruence between the brand and the local endorser
sometimes is difficult to establish.
Marketers often choose celebrity endorsers who are attractive, credible, or who have expertise while at the
same time matching up with the desired brand image (Hakimi, Abedniya and Zaeim, 2011). Physically attractive
celebrity endorsers can improve a brand’s image and encourage consumers to purchase that brand (Hakimi, et al,
2011). Knowledgeable and skilful celebrity endorsers whose attribute poses expertise in a particular area can
make consumers more willing to purchase the advertised brand (Ohanian, 1991). The trustworthiness of the
celebrity is a supportive element as said in source credibility, but researchers found that it is not a factor in
increasing consumers’ intention to try a brand (Ohanian, 1991 and Hakimi et al, 2011). Conclusively, it refers
that effectiveness of celebrity appeals depends on his credibility which is a function of attractiveness, expertise,
trustworthiness of the celebrity, (Ohanian, 1990; Erdogan, 1999) and congruence between image of brand and
the celebrity.

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Brand awareness is the first point of brand knowledge in consumers’ minds reflecting their ability to
identify a brand; the likelihood that the brand name will come to mind and the ease with which that happens
(Keller, 1993). Awareness to a brand can be used to describe brand recognition when the consumer can confirm
having been exposed to the brand when given a cue (Ovidiu, 2009). Brand awareness and recognition is
important in the buying decision making and so a veritable tool for firms to achieve competitive advantage as it
will help consumers recall the brand given a product category. It also increases the probability of the brand been
part of the evoke set. Keller (1998) opines that brand awareness influences brand associations that form the
brand image.
Till (1998) and McCracken (1989) have suggested that celebrity endorsers can build brand equity by
creating secondary associations. Seno and Lukas (2007) have proposed that a celebrity endorser operates as a co-
brand for the endorsed brand resulting in the creation of equity for both the endorsed brand and the endorsing
celebrity. Other empirical findings have shown that use of celebrity endorsers in advertising have effect on recall
of both the brand and the advertisement (Atkin and Block, 1983) and Dean (1999) in his research has shown that
celebrity endorsement can influence perceived product quality and uniqueness.
There are, however, limited studies as to how endorser credibility might lead to brand awareness and
recognition. In the face of the relevance of brand awareness in consumer buying process, this study becomes
important to guide brand managers in the selection and management of celebrity endorsers for their brands.

LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

Celebrity Advertising, Endorser Credibility and Brand Awareness
A celebrity is an individual who is known to the public (actor, sports figure, entertainer etc.). Consumers
generally tend to be attracted to celebrities (Thompson, 2006) and other objects associated with them. Celebrities
are a repository of meanings valued by customers (McCracken, 1989). Aaker (1991) classified brand dimensions
into four from a consumer perspective as follows; brand awareness, brand associations, perceived quality and
brand loyalty. Yoo at al. (2000) have referred to these dimensions as consumer-based brand equity (CBBE).
However, this present study isolates the brand awareness element to seek the influence of celebrity endorsement
on brand awareness given its importance in the decision process. Aaker in (1991) defined brand awareness as the
strength of a brand’s presence in a consumer’s mind. It is a necessary condition for brand equity, without which
other brand dimensions cannot be felt; consumers cannot have brand associations, perceptions of quality and
brand loyalty (Pappu and Quester, 2006). Brand awareness comprises both brand recall and recognition whereas
brand associations refer to the various meanings surrounding a brand (Keller, 1993).
The relationship between endorser credibility and brand awareness is explained using the associative
network memory model. The model suggests that celebrity endorsement could support brand recall and
recognition, as a celebrity endorser becomes an added node in the memory (Spry et al. 2011).
Celebrity attractiveness brand awareness
Langmeyer and Shank (1994), define celebrity attractiveness as all embracing. It covers not only the physical or
facial beauty, but other embodiments of beauty such as sportsmanship, charm, grace, intelligence, lifestyle and
personality. There are evidences in extant literature to link endorser attractiveness and brand image (Kamins,
1990). Research has shown the relationships between physical attractions and evaluations, opinion, brand
promises, recall and likeability of a brand (Joseph, 1982; Kahle and Homer, 1985). Other researchers like Till
and Busler (1998) concluded that attractive celebrities haves positive effects on consumer attitudes towards a
brand. The potency of source attractiveness is in its ability to covey meaning more effectively than less attractive
sources. Patzer (1985) and Ohanian (1991), has this to say; “Beauty is a greater judgment than any
recommendation". Endorsers’ physical attractiveness generates high opinion and respectability. It is contributory
to the amount of attention the advertisement will garner from the target audience both in electronic and print
media; endorsers’ physical attractiveness has specific effects on consumer’s behavior towards the product and
service than the unattractive endorsers (Ohanian, 1991). From the above discussion, the following hypothesis is
advanced:
H1: There is a positive relationship between endorser attractiveness and brand awareness.
Celebrity Expertise brand awareness
Expertise has been explained in the literature as authoritativeness, competence, qualification, skill and
knowledge (Magnini, Honeycutt and Cross, 2008). Celebrity expertise is the consumers’ perception of
knowledge, experience or ability associated with an endorser about the product being endorsed (Erdogan, 1999).
The celebrity’s level of persuasiveness is enhanced by the expertise he is believed to possess. This will give the
consumers’ confidence of the validity of the advertising messages. This argument is extended by Aaker and
Meyers (1987) who advocated that consumers are more persuaded to buy advertised brands that are endorsed by
knowledgeable celebrity or by celebrity whose profession is closely linked to the brand functions.
H2: Celebrity expertise has a direct positive impact on brand awareness

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Celebrity Trustworthiness brand awareness

Trustworthiness refers to the “fairness, honesty and credibility of an endorser” (Erdogan et al 2001).
Trustworthiness can be captured within the context of celebrity endorsement as honesty, integrity, and
believability of the celebrity by the consumers. This elicits confidence in and acceptance of the celebrity and the
inherent messages of the endorser by the consumers. This in the long run helps to influence consumer’s beliefs,
opinions, attitudes and purchase behavior (Erdogan, Baker, and Taggs, 2001; Ohanian, 1991). Consumers have a
common perception that celebrities are a reliable source of advertising information (Goldsmith et al., 2000).
Trustworthiness in encompassed in credibility source model which belief that level of acceptability of a message
depends on the level of credibility of the source of the message. From the foregoing discussion, we advanced the
following hypothesis:
H3: Celebrity trustworthiness has a significant positive effect on brand awareness.
Celebrity-Brand Fit brand recognition
Celebrities represent symbolic and aspirational reference groups for consumers (Escalas, 2004), a positive
relationship is expected between the endorsers’ personality and the brand. This is supported by the meaning
transfer dynamics (McCraken, 1989). He asserts that celebrity endorsements are a mechanism by which
meanings from the culturally constituted world transfers to brands. Till (1998) emphasises the importance of
ensuring appropriate fit between the celebrity and the products’ target audience. This associative link is achieved
when there is a fit between the product and the celebrity endorser as the consumer will associate the celebrity
with the product been endorsed.
H4: Celebrity-brand fit positively influences to brand recognition

Conceptual Framework for the Study

The conceptual model in figure 1 is developed to address the main thrust of the present study; how celebrity
advertising affects brand awareness. A starting point in the model development is the understanding of how
celebrity advertising/endorsement is conceptualised. The extant literature has used celebrity credibility as a
prime endorser characteristic to drive other consumer effects. This present study aligns with this philosophy.
Amos et al. (2008) opines that endorser credibility has received substantial research attention as a major driver of
consumers’ endorser-initiated behaviours. It is made up of constructs as perceived trustworthiness,
endorser/source expertise (Hovland et al, 1953) and endorser attractiveness (Ohanian, 1990). This study aims to
study endorser credibility dimensions alongside endorser brand-fit.

Figure 1: Conceptual Model for the Study

METHODS AND MEASURES

The hypothesised relationships in the research model in figure 1 were tested using a causal research design using
a structured questionnaire as a survey method. The study was conducted in Enugu metropolis; a metropolitan
city in South-Eastern Nigeria. The researchers purposively studied 200 university undergraduates in the city.
This was chosen because of their given active celebrity knowledge. Data were collected with the aid of a
structured questionnaire. The items used in measuring the latent constructs were adapted from previous
researches (table 1); endorser credibility (La Ferle and Choi, 2005 and Ohanian, 1990), celebrity-brand fit
(Keller and Aaker, 1992). Brand awareness was measured using the five item scale adapted from Yoo and

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Donthu (2001). The latent constructs were measured on a five-point Likert scale anchored by ‘1 = Strongly
Disagree’ and 5 = ‘Strongly Agree’.
Table 1: Battery of measurement items and sources
Latent construct Number of items Source(s) of scale
Celebrity Trustworthiness 4 Ohanian (1990) and La Ferle and Choi (2005)
Celebrity attractiveness 4 Ohanian (1990) and La Ferle and Choi (2005)
Celebrity Expertise 4 Ohanian (1990) and La Ferle and Choi (2005)
Endorser-brand fit 3 Till and Busler (2000), Keller and Aaker (1992)
Brand Awareness/Recognition 5 Yoo and Donthu (2001)
The researchers selected brands in the telecommunication service sector. The sector was chosen given the
high growth rate of mobile telephone usage among the target population of the study and the industry high
adoption of celebrities in their advertisements. Celebrities used to measure extent of brand awareness and
recognition were Afeez Ayetoro, a Nigerian comic actor popularly known as Saka used in the MTN ‘I don port’
adverts in 2013 and Bright Okpocha, a Nigerian comedian popularly known as ‘Basket Mouth, who played a key
role alongside Okey Bakassi in Globacom adverts.

DATA ANALYSIS AND RESULTS

Preliminary analysis
Data were subjected to series of analysis. SPSS version 22 aided the data entry and editing. The validity and
reliability of data were thereafter conducted and hypotheses tested using partial least squares structural equation
modelling (PLS-SEM) procedure in SmartPLS software.

Description of the Respondents Demography

In total, 148 copies of the 200 distributed questionnaires were returned representing 74% usable response rate.
The participants showed evidence of good knowledge on the subject matter; 77% of the respondents have used
mobile telephone for 2 years and above. The gender distribution shows that 38% are males while 62% are
females; 78% of the respondents are single while 22% are married. Specifically, 37% of the respondents are
below 20 years, 60% are from 21 to 35 years while only 3% are above 35 years. The demographic variables are
as presented in table 2.
Table 2: Demographic Variables of Respondents
Variable Frequency Percent (%)
Gender
Male 56 38
Female 92 62
Marital Status
Single 115 78
Married 33 22
Age
<20 55 37
21-35 89 60
36-50 4 3
Income per month(₦)
≤50,000 43 29
50,000-100,000 66 45
>100,000 39 26
Length of usage of mobile telephone
< 1 year 19 13
2-5 years 57 39
Above 5 years 72 49
Total 148 100
Field Survey, 2018

Scale Reliability and Validity

The research instrument was subjected to reliability and validity checks. To assess the reliability of the
instrument, the researchers adopted two methods of measure; Cronbach alpha and composite reliability.
Composite reliability was included given the conservative nature of Cronbach alpha test. Both measures show
reliability indices greater than the 0.7 minimum acceptable limit (Nunnally and Bernstein, 1994), showing that
the instrument is reliable and internally consistent. The 20 items were simultaneously factor-analysed using

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SEM-PLS. the result from the initial factor loadings shows that all the indicators loaded above 0.5 acceptable
limits (Hair, Black, Babin and Anderson, 2010).
The validity of the research instrument was subsequently conducted through two ways; content and
construct validity. For content validation, face validity was used through the careful adaptation of items from
past studies. Construct validity is attained when both convergent and discriminant validity are met. An
instrument has convergent validity if the average variance extracted (AVE) is 0.5 and above (Bagozzi and Yi,
1988) and the items measuring the latent constructs loads with significant t-values (Gefen and Straub, 2005). As
shown in table 3, the AVE ranged from 0.57 to 0.77 with all the measurement items loading with significant t-
values at p<0.005 level, an evidence of convergent validity.
Table 3: Items’ Factor Loadings, t-statistics, Reliability and Validity (AVE)
Constructs Indicator Factor t-value Cronbach Composite AVE
Loading alpha (α) reliability
Celebrity CA1 0.751 13.04* 0.8 0.88 0.72
Attractiveness CA2 0.891 21.98*
CA3 0.906 16.45*
CA4 0.899 14.47*
Celebrity Expertise CE1 0.771 12.43* 0.82 0.87 0.66
CE2 0.810 15.16*
CE3 0.762 13.26*
CE4 0.772 12.43*
Celebrity CT1 0.834 17.12* 0.77 0.79 0.57
Trustworthiness CT2 0.789 14.00*
CT3 0.784 15.60*
CT4 0.752 17.12*
Endorser-brand fit EBf1 0.877 27.55* 0.84 0.91 0.77
EBf2 0.878 26.99*
EBf3 0.873 30.15*
Brand Awareness BRAW1 0.893 27.16* 0.81 0.89 0.72
BRAW2 0.869 23.09*
BRAW3 0.888 24.24*
BRAW4 0.783 19.21*
BRAW5 0.812 21.09*
Note: Significant levels are denoted as *p < 0.05
On the other hand, discriminant validity is established if the square root of the AVE of each latent construct
is greater than the highest correlation pair of the latent constructs (Hair et al, 2014). As shown in table 4, the
square roots of the AVEs were also well above the highest correlation pair of the latent constructs. A further look
shows that the correlation matrix as reported in table 4 reveals that most of the coefficients are above 0.3 and are
significantly correlated at p<0.005. This clearly indicates that the rule of convergence and discrimination were
met.
Table 4: Mean, Standard Deviation, Construct Correlations and Discriminant Validity
Standard
No Constructs Mean Deviation 1 2 3 4 5
1 Celebrity Attractiveness 3.71 0.89 0.849
2 Celebrity Expertise 4.14 1.37 0.491 0.812
3 Celebrity Trustworthiness 3.62 1.29 0.592 0.784 0.755
4 Endorser-brand fit 3.79 1.51 0.587 0.528 0.794 0.877
5 Brand Awareness 4.04 1.24 0.473 0.681 0.577 0.638 0.849
Note: Square roots AVE are in italic bold prints in the diagonal; all correlations are significant at 0.05 levels.

Structural Model and Test of Hypotheses

The proposed research model was tested using SEM-PLS. The path significances were tested using
bootstrapping resampling procedure with 5,000 sub-samples, recommended by Hair et al (2011). The initial
structural output supports all the hypothesised relationships as shown in table 5. A positive linear effect was
found to exist between celebrity attractiveness and brand awareness (β=0.481; t=5.248; p<0.005). A positive
and significant relationship was also found to exist between celebrity trustworthiness and brand awareness
(β=0.214; t=9.825; p<0.005). Celebrity expertise is a significant predictor of brand awareness (β=0.405;
t=4.822; p<0.005). Finally, the direct effect of endorser-brand fit was also positive and significant (β=0.386;

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t=4.770; p<0.005).
Table 5: Estimated results of the structural model and hypotheses test outputs
Path Standard
Direct effects coefficient error t-value Result
H1 Celebrity Attractiveness → Brand Awareness 0.481 0.047 5.248* Supported
H2 Celebrity Expertise → Brand Awareness 0.405 0.06 4.822* Supported
H3 Celebrity trustworthiness → Brand Awareness 0.214 0.051 9.825* Supported
H4 Endorser-brand fit → Brand Recognition 0.386 0.054 4.770* Supported
Notes: Significant level is denoted as *p < 0.05
In all, the strength of the relationship between the latent constructs indicated that the strongest predictive
power within the model falls on celebrity attractiveness (β=0.481; t=5.248), followed by the relationship
between celebrity expertise and brand awareness (β=0.405; t=4.822); endorser-brand fit and brand recognition
(β=0.386; t=4.770) and the weakest being the relationship between celebrity trustworthiness and brand
awareness (β=0.214; t=9.825).
Additionally, the variance explained (R2) in the circle within the model represents the amount of variance
explained which s contributed by the latent constructs. As shown in the SEM-PLS output (figure 2), 63 percent
of the total variance in brand awareness is attributed to the combined effect of celebrity attractiveness, celebrity
expertise, trustworthiness and endorser-brand fit.

Figure 2: SEM-PLS OUTPUT

Discussions
Celebrity advertising has been seen to have the ability to draw consumers’ attention towards the advertised brand.
The findings of this study confirm the earlier hypothesized relationships. The results indicate a direct and
positive relationship between endorser credibility measured by attractiveness, expertise and trustworthiness and
celebrity-brand fit, and brand awareness. These findings are in line with the argument by Hakimi et al (2011)
that marketers often choose celebrity endorsers who are attractive, credible, who have expertise while at the
same time matching up with the desired brand image. Hakimi et al (2011) also assert that attractive celebrity
endorser can improve a brand image and encourage consumers to purchase that brand. This correspond with
what Ohanian (1991) stated that celebrity expertise can make consumers more willing to purchase an advertised
brand. However, our research findings differ slightly from theirs as our findings establishes that trustworthiness
is a factor in increasing consumers’ intention to try a brand against that of Ohanian (1991) and Hakimi et al
(2011) that trustworthiness is not a factor in increasing consumers’ intention to try a brand.
Our findings agree with several other studies (Lafferty and Goldsmith, 1999; Magnini et al, 2010; Till and
Busler, 1998 & Chang et al, 2005), that trustworthy celebrity endorsers leads to positive attitudes towards a

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brand. However, our study findings differ slightly with that of Kim et al (2018) as they found that celebrity
trustworthiness does not influence brand equity.
Similarly, consistent with our findings that celebrity expertise strongly influences brand awareness are
findings of others studies (Kim et al, 2018; Lord and Putrevu, 2009; Marshall et al, 2008; Kim et al 2014 &
Wang et al, 2007). Also Spry et al, (2011) supports an indirect impact of endorser credibility on brand equity
with the mediating effect of brand credibility
Therefore, it is safe and convenient to assert that the effectiveness of celebrity advertising is dependent on
the celebrity’s attractiveness, expertise, celebrity-brand fit and trustworthiness.

Conclusions and Policy Implication

In this age of increased competition in the market place, organizations should therefore prioritize and refocus
their efforts on the most value adding marketing strategies. One of these strategies could be to engage on
celebrity advertising. This research adds to the body of knowledge by supporting already established factors that
determine the effectiveness of celebrity advertising and the inclusion of celebrity-brand fit as a veritable driver
of brand awareness. This concept of celebrity advertising could impact positively on the efforts of organisations
launching new products to create awareness and ensure brand recall and recognition. This will help make the
brand a part of the consumers’ evoked set. In particular, firms already employing the services of celebrity
endorsers would be better off if more attention is placed on the celebrity-brand fit. Also brands that are in their
decline stage of the product lifecycle could be rejuvenated by the use of an attractive celebrity endorser whose
character fits with the brand and from whom a meaning transfer could positively influence the brand.
The managerial implication of this is that organisations intending to use or maximize the returns from their
celebrity endorsers used in their advertisements should stress the expertise of the endorser in promoting the
values of the brand. This will contribute not only to improved market acceptance and sales volume but the
enhancement of the brand value.

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