SOCIAL IMPACT OF CELEBRITY ENDORSEMENT ON BRAND EQUITY – A STUDY FROM THE SOAP INDUSTRY IN PAKISTAN

Abstract

The business environment has changed with the passage of time. In this era, marketers use several strategies for promotion purpose and for achievement of the desired goal. Celebrity endorsement is one of the effective techniques of promoting the brand. Any firm that involves celebrities to come and endorse their product, leads to change the perception of the product and increases the sales of the product. This study done to explore the effect of Celebrity endorsement on building brand equity with particular emphasis on the soap industry of Pakistan. For this, 384 respondents were selected. Data analysis techniques include Regression, Correlation, ANOVA, Chi-square. The results described that Celebrity endorsement and brand equity are positively correlated having a value of 0.475 which is highly significant. Regression analysis results revealed that Celebrity endorsement explains 22.6% of brand equity. The result of Cronbach's alpha is 0.70 which is a decent reliability of the results. ANOVA results revealed that alternative hypothesis is accepted having a value of 0.0. The research underlines that products/services endorsed by renowned celebrities tend to create more impact than otherwise.