The impact on consumer perception using celebrities and designer collaborations for branding: in Thailand

 
The impact on consumer perception using celebrities and designer collaborations for
branding: in Thailand
Chapter 1 Introduction
1.1 Introduction
Celebrity endorsement has been popular for many years already. Some of these endorsements
were a success, while others flopped. Marketers must understand what decides endorsement
effectiveness to prevent them from wasting money (Money, 2006). Characteristics like
attractiveness, expertise and fit seem to have an influence on success. Factors like customer‟s
perception, expertise, attractiveness, and fit are extensively defined to be determinants for
success of endorsement. For this research, success is defined in attitude of brand and intent of
purchase. The additional positive the brand attitude and the higher the purchase intentions are the
better the achievements. That fit has an influence is known. People go one-step further by
exploring whether it plays a moderating or even mediating role in the relation between
attractiveness and expertise and brand attitude or purchase intentions. Furthermore, they respond
to the new trend of co-creating celebrity endorsement. To the researcher‟s knowledge, there has
not been any study on this issue so far. There will be a test of the differences with „normal‟
endorsement of celebrity. “For theory, this clarifies whether endorsement roles also have an
effect on consumers‟ preferences and response”[
1
].
 
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1.2 Research Background
The endorsement by celebrities in advertising is not a new phenomenon but it has taken recent
years, a growing scale. It has become a common practice common for some companies. This
investment in communication is often considerable: The renewable one-year contracts vary
between 50 000 and 500 000 Euros in France and may exceed 3 million in the United States.
However, the brands that have invested in the endorsement by celebrities in general perpetuate
this strategy, which is an indication of its effectiveness. A large number of actors, singers, sports
or policies have lent their name and image in an advertising campaign in Thailand. “It is
estimated that in the Thailand, approximately 25% of TV ads showcase of famous people”[
2
].
In terms of academic research, a recent review of the literature proposed by Erdogan (1999) cited
30 articles on strategy endorsement by celebrities. these research has addressed several issues
such as the effectiveness of the endorsement by the celebrities, the impact of the credibility and
attractiveness of the celebrity on the process endorsement, the role of congruence in process
efficiency, the effects of endorsement multiple, and customer perception etc. “Although popular,
this communication strategy did not be studied”[
3
]. Despite some theoretical and empirical
advances a lack harmony between the outcomes of particular literatures is found. The discussion
on the productivity of the endorsement is far from over. This is an important research for
advertisers. The present approach does not consider the interesting features the endorsement
procedure and ignore the centrality of mediating variables and moderators. Studies endorsement
by celebrities have focused on two psychological and social aspects of the procedure (credibility
and attractiveness) rather than symbolic descriptions of celebrities, how these meanings are
transmitted the brand and the important congruence between the image of the celebrity and the
 
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brand. “In fact some studies have addressed the impact on the use of famous brand endorsers”[4
].
1.3 Main Hypothesis/Research Questions
Hypothesis 1: How is fashion advertising changing?
Hypothesis 2: Is high street collaboration with luxury the new upcoming technique that benefits
both the industries?
Hypothesis 3: Why is celebrity endorsement in advertising to both the industries?
1.4 Aim and objective
Aim: To compare and contrast the different new techniques of advertisements that high street
and luxury brands use in order to find a gap in the advertisement industry.
Objectives:
1. To discover the similar and different techniques used in the two industries.
2. To study the different techniques and find out if they can be applied to one another, and
the possibilities to work.
3. To research techniques to improve the methods of advertising in the fashion world
4. To compare the high street brands for example, H&M, Zara and Top shop with luxury
brands for instance Chanel, Prada and Dior.
1.5 Rationale
High streets brands now days have developed their techniques of advertising themselves into
something that luxury does. They used to just do the normal typical advertisements like,
 
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billboards, newspapers, leaflets, magazines, televisions. However, with the time period,
competition has increased in the fashion world; therefore, new techniques had been developed
lately in the two industries. Using collaboration techniques is one of the way high streets brands
elevate and promo