Giordano, one of the leading fashion retailers of Hong Kong aims to have a good global presence and expand its outlets.It started its operations in Australia many years ago but results haven;t been satisfied.From 2012 til 2106 sales have been dipping continuosly and oulets have been shutdown in Australia.
This means that Giordano’s advertisements have not been very successful in persueading the potential customers to buy its products.
Giordano’s goal is to gain a handsome market share in Australi’s clothing industry and hence for that it needs to enhance its sales.But research needs to be done on how and what kinds of ads can enahance Giordano’s sales in Australis.This proposal will address the isse regarding what marketing research needs to be done and how it should be executed in order to enahance Giordano’s sales in Australia.
Problem Symptom: Giordano’s sales in Australia have been decreasing for past 5 years.Many stores have shut down in Australia.
Management Decision Problem: To create those kind of advertisements that will make the Giordano brand more appealing in Australia.
Marketing Research Problem: Can celebrity endorsed advertisements of Giordano increase the purchase intentions of the potential target market in Australia.
Research Question 1: What characteristics does a celebrity need to have in order to create a favorable attitude towards the brand?
Research Question 2:What characteristics does a celebrity need to have that will increase the purchase intentions of the potential customers?
Research Question 3: Can celebrity enorsed ad lead to a higher recall rate and grand more attention by the potential customers?
Literature Review
Researchers have conducted studies in order to find out how celebrities presence in advertisements impacts the buying intentions and which exact traits or characteristics of celebrities have the most impact in this regard (Jaffery,2016).
According to Erdogan (1999) celebrities are those people who are well known by the people and are perceived as special human beings.They have extraordniary skills and have a unique lifetyle.
Many research studied have found a clear and positive relationship between celebridty endorsed ads and buying intentions.
(Kumar,2015) in his study pointed out that attitudes towards the celebrity have a positive impact on the products purchase intentions and hence concluded that it has a wise idea to use celebrity in ads in order to boost a brand’s sales.
Accoring to (till et al,2008) recent studies have shown a positive influence of celebrity endorsements on the image of the brand.
Accoriding to (Fredrein,1984) diffetrent types of celebrities have different powers of persuausion over consumers.
(Rafique,2012) pointed out that both purchase intention and attitude of customers has been positively influenced and impacted by physical attraction and credibility of the celebrity.This study could have been further improved by taking into account other characteristics of celebrities that can affect purchase intentions.
Manzoor (2011) studied specific association of celebrity with the impulse buying of customers and it was found that there is no relationship of celebrity endorsement with impulse buying behavior. Hence this study concluded that other factors like the price and quality of products should be taken into consideration while infleuncing purchase intentions.
Ahmed et al., (2012) examined the effects of celebrity endorsement on consumers’ behavior in respect of buying. They studied and taken into account factors such as product matchup, both celebrity and non-celebrity endorsement products, attitude towards the celebrity, celebrity motivation, and celebrity personality association of consumers and tested their relationship with purchase decisions of consumers. Study revealed that, celebrities positively influence the purchase decisions of consumers, and their endorsements motivate them to purchase products. However, non-endorsed products were not found positively affecting purchase decisions of consumers
Sultan and Mannan (2015) examined the impact of celebrities, who are acting in electronic media i.e. television, on buying behavior in respect of consumer from telecom customers living in Karachi, Pakistan. They used correlation and regression analysis and examined different attributes related to celebrity endorsement in their research and found that all attributes are demonstrating their significant influence on buying behavior for consumer of telecom sector.
Schiffman and Kanuk (2000) defined purchase intention as a transaction behavior consumers tend to exhibit after evaluating a product, and adopted consumer reaction to a product tomeasureconsumerpurchaselikelihood.Higherpurchase intention means higher likelihood of consumers purchasing a product.
Many studies have conluded that there is a relationship between celebrity endorsed ads and purchase intentions.But still there is a slight gap regarding which exact traits of celebrities will have a significant impact on purchase intention.
On the bases of above discussed literature review, the following research objectives and hypotheses are developed which explain the whether there is a direct relationship between celebrity endorsed ads and purchase intentions and which traits of the celebrities will be the most influential.
Hypotheses of the Proposed Study
H1: Celebrity endorsed ads by Giordano will have a significant impact on consumers’ purchase intention
H2: Attractiveness of celebrities have a significant impact on consumers’ purchase intention
H3: Trustworthiness of celebrities have a significant impact on consumers’ purchase intention
H4: Expertise of celebrities have a significant impact on consumers’ purchase intention
Dependent Variable: Customer’s purchase intentions
Independent Variable: Attractiveness of celebrities, Trustworthiness of celebrities, Expertise of celebrities
The following model will be used to measure the independent variable
The following scale will measure the buying intentions of consumers
Purchase intention after the exposure to stimuli will be measured with a 7 – point Likert scale, which was developed by Coyle şi Thorson / Putrevu şi Lord. The scale consisted of four afirmations:
“It’s very likely that I would buy (brand)”,
„I will purchase (brand) the next time I need a (product)”,
„I will definetly try (brand)”, „Suppose that a friend called you last night to get your advice in her search for a (product). Would you recommend her to buy a (product) from (brand)?”.
How likely would customers prefer buying the brand(PI): very likely/very unlikely, probable/improbable, possible/impossible
The purchase intention of respondents about celebrity brand fit was measured using four items selected from Spears and Singh (2004).
The answer to these hypothesis and research project will help Giordano to determine how it can use celebrity endorsed ads to increase their target customers purchase intentions and hence their sales in Australia.Then Giordano can determine which celebrity it should use for ads in Australia.
Research Design
· Conclusive Research because we need to test the hypothesis.
· Data Analysis is quantitative
· Descriptive – to find association between cb ads and bi
· Cross sectional research
· primary research
· secondary research
· Quantitative only
· Survery: reduces varaibality,easy,large sample – reference
· Electronic and personal interviews- pros and cons
· in mall intercept- physical stimuli
· Internet survey- large reach – fb,twiiter,survey monkey
· Prior notification: 2 or 3 weeks before, with an incentive(geordano tshirt) or chance to win
why you doing what you aee doing?
Measures and Questionare Design
Nominal ( e.g 1 male 2 female for coding purposes)
ordinal scale
Interval scale
Itemized rating scale- likert
“It’s very likely that I would buy (brand)”,
„I will purchase (brand) the next time I need a (product)”,
„I will definetly try (brand)”, „Suppose that a friend called you last night to get your advice in her
Semantic Differential Scale 1-7
how are you measuring and what
Structured questions and scales
Questionare design process? ambiguous words,complicated?
refer to questionarre
Sampling process
· Target population(Austrlain middle and upper Middle class)
· sampling frame (e.g people employed,students)
· sampling technique
· Cluster( E.g divide them into working class and businessman)
· Convenience sampling-Malls,universities
· Judgement sampling-to see the lifestyle of the people,income class
· sample size- any formula?1% or 5%
· execute
Research Proposal
Purpose of the research
Giordano, one of the leading fashion retailers of Hong Kong aims to have a good
global presence and expand its outlets.It started its operations in Australia many
years ago but results haven;t been satisfied.From 2012 til 2106 sales have been
dipping conti
nuosly and oulets have been shutdown in Australia.
This means that Giordano’s advertisements have not been very successful in
persueading the potential customers to buy its products.
Giordano’s goal is to gain a handsome market share in Australi’s clothing
industry
and hence for that it needs to enhance its sales.But research needs to be done on
how and what kinds of ads can enahance Giordano’s sales in Australis.This proposal
will address the isse regarding what marketing research needs to be done and how
it
should be executed in order to enahance Giordano’s sales in Australia.
Problem Symptom: Giordano’s sales in Australia have been decreasing for
past 5 years.Many stores have shut down in Australia.
Management Decision Problem:
To create those kind of adv
ertisements that
will make the Giordano brand more appealing in Australia.
Marketing Research Problem:
Can celebrity endorsed advertisements of
Giordano increase the purchase intentions of the potential target market in
Australia.
Research Question 1:
What characteristics
does a celebrity need to have in
order to create a favorable attitude towards the brand?
Research Question 2:
What characteristics does a celebrity need to have that
will increase the purchase intentions of the potential customers?
Rese
arch Question 3:
Can celebrity enorsed ad lead to a higher recall rate and
grand more attention by the potential customers?
Research Proposal
Purpose of the research
Giordano, one of the leading fashion retailers of Hong Kong aims to have a good
global presence and expand its outlets.It started its operations in Australia many
years ago but results haven;t been satisfied.From 2012 til 2106 sales have been
dipping continuosly and oulets have been shutdown in Australia.
This means that Giordano’s advertisements have not been very successful in
persueading the potential customers to buy its products.
Giordano’s goal is to gain a handsome market share in Australi’s clothing industry
and hence for that it needs to enhance its sales.But research needs to be done on
how and what kinds of ads can enahance Giordano’s sales in Australis.This proposal
will address the isse regarding what marketing research needs to be done and how it
should be executed in order to enahance Giordano’s sales in Australia.
Problem Symptom: Giordano’s sales in Australia have been decreasing for
past 5 years.Many stores have shut down in Australia.
Management Decision Problem: To create those kind of advertisements that
will make the Giordano brand more appealing in Australia.
Marketing Research Problem: Can celebrity endorsed advertisements of
Giordano increase the purchase intentions of the potential target market in
Australia.
Research Question 1: What characteristics does a celebrity need to have in
order to create a favorable attitude towards the brand?
Research Question 2:What characteristics does a celebrity need to have that
will increase the purchase intentions of the potential customers?
Research Question 3: Can celebrity enorsed ad lead to a higher recall rate and
grand more attention by the potential customers?