The impacts of celebrity endorsement on customers perception and brand image in vietnam (take a case studies)

ABSTRACT
The research in this paper is about the effect of celebrity endorsement on
consumer purchase intention: a case of TIKI’s using Ha Anh Tuan (HAT). In
spite of potential risks when using celebrity in a marketing plan, the
method has developed strongly nowadays due to its impressive benefits.
The

relation

between

variables

including

(1)

physical

celebrity

attractiveness, (2) celebrity popularity, (3) celebrity credibility, (4)
celebrity expertise, (5) match-up relevance, (6) multiple endorsement, (7)
brand perception, (8) purchase intention were investigated in the
literature review and resuls part. In particular, the thesis identifies
Vietnam snack industry as contextualization and point out Vietnamese
customers for the reason that there are inadequate studies about celebrity
endorsement in Vietnam marketing market. To begin, the study provides
an analysis about general hypothesis by researching many theories of
foregoing researchers. In addition, a quantitative method has been used by
conducting a survey with 268 participants to measure the relationship

between dependent and independent variables. The findings showed that
there is a positive relation between all the independent variables and
consumers buying intentions even though some of them were not truly
effective. Furthermore, the paper research supports some interesting views
by analyzing other results from collected data that have been checked in
the conclusion.

1


LIST OF FIGURES
LIST OF TABLES

2


ACKNOWLEDGEMENTS
DECLARATION

3


CHAPTER 1. INTRODUCTION
1.1.

The reason for choosing the topic

Until now, when any product is born, in addition to researching and
investing for the best product quality, promoting the brand to consumers is
also an equally important activity (Todor, 2014). Corporate image, brand

value and reputation are proof of the competitiveness of the business.
Customers when using the brand also feel more proud (Kirmani, 2009).
That is why most businesses have to spend a lot of money and effort to
invest in brand promotion activities. In the competition for good brand
recognition and the pursuit of profit, there are many times the press
exposes unscrupulous businesses and deceives customers. As a result,
consumers are increasingly skeptical. Consequently, they will think that
advertising is never true (Darke and Ritchie, 2007). Besides the growing
society, increasing living standards, it is also a time when it is more difficult
for consumers to choose to believe in a particular brand or product. To
promote the brand, marketing managers face a challenge that they must
always create different marketing strategies to attract and build trust with
customers. Every day, consumers are exposed to a variety of different
advertisements from brands. Marketing and communication magazine
AdAge (2021) has shown that customers receive about 3,000 advertising
images every day, but in fact only 150 images affect the subconscious of
customers, of which 30 are images. Images can influence the mind of
customers (Giang and Duong, 2018). At this point, an effective marketing
strategy is to invest in building brand ambassadors. Brand ambassadors
have become extremely popular and are also a necessary part of a business'
branding strategy, especially big businesses. To make a difference, attract

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and reach more customers, businesses often invite famous stars to be
brand ambassadors to promote their products. Star faces associated with
product images help the public to always remember the brand. According
to market research firm Millward Brown, more than 15% of
advertisements in the US have the appearance of famous people while this

figure in India is 24% and Taiwan is up to 45% (Esangbedo, 2011). Son
(2013) stated that the presence of celebrities also helps some brands
increase sales by up to 20%.
Marketers need to have a basis to know the real impact of brand
ambassadors on customers' purchasing intentions, so that they can make
the right decisions in their investment. Besides, at the present time, a new
way of word-of-mouth marketing strategy, marketing through influencers,
has become much more popular. According to the statistics of Digital
Marketing Institute (2021), 49% of consumers rely on recommendations of
influencers and 60% of young consumers trust the advice of more
influential figures is a celebrity. According to Scott (2015), influencer
marketing is a marketing strategy that uses the influence of individuals or
leaders to drive consumer brand awareness and purchasing decisions.
However, the marketing strategy by brand ambassador is no longer
effective? In order to be able to partly suggest to businesses in Vietnam
easier in choosing effective branding strategies, which can bring their
brands to the world, develop the country's economy. , the group of authors
conducted a research on the topic "The impacts of celebrity
endorsements on customer's perception and brand image in Vietnam
- a case study about Ha Anh Tuan endorses TIKI brand".
1.2.

Objectives of the study

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-

To test the relationship between well-known endorsers and

customer-based brand equity.
-

To provide directional management implications for businesses to

enhance brand value in the Vietnamese market.
1.3.

Research subjects

The research focuses on famous endorsers and customer-based brand
value.
1.4.

Research scope

The study is limited to HCMC on the relationship between celebrity
endorsers and customer-based brand equity.
Survey object: consumers in HCMC market.
Data source: The study uses primary data source by direct consumer
survey method with designed questionnaire.
1.5.

Research Methods

The study uses both qualitative and quantitative methods:
-

Qualitative method: using the method of interviewing the survey

subjects and using exploratory interviewing and group discussion
techniques to identify, calibrate, and build a formal survey questionnaire.
-

Quantitative method: collect data by distributing questionnaires

directly to survey subjects by sampling method. The data obtained after the
survey were processed using SPSS 20 software.
1.6.

Research structure

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There are 5 chapters in this research as follows:
CHAPTER 1. INTRODUCTION
CHAPTER 2. LITERATURE REVIEW
CHAPTER 3. METHODOLOGY
CHAPTER 4. RESEARCH RESULTS AND DISCUSSION
CHAPTER 5. CONCLUSION AND RECOMMENDATION

CHAPTER 2. LITERATURE REVIEW
2.1.

Identity and brand consumption

In Marketing Management, Keller and Kotler have defined that customerbased brand equity, an added value for services and products, is controlled
by consumers. This definition normally displays customers’ opinions,

feelings, beliefs and actions, which are linked to the brand (Kotler et al.
2012, 243). It means that the more supportive the consumers are, the more
positive the customer-based brand equity is. For marketers, hence,
developing customer-based brand equity is believed as a considerable
challenge, since it expects the brand to achieve the customers’ requests.
Building customer-based brand equity drives marketers establishing brand
resonance model. According to Keller and Kotler, this model, which
presents the process of customer loyalty creation, consists of six brand
building blocks: salience, performance, imagery, judgments, feelings, and
resonance (Kotler et al. 2012, 249). These building blocks are constructed
based on the four stages of brand development, corresponding a set of
essential questions that the consumers would ask about the brand.
7


Beginning with ‘brand identity’, it is important for the brand to build brand
salience with customers. Brand salience demonstrates the competence for
purchasers to remember a brand, including how often and how easily for
them to remind of the brand (Kotler et al. 2012, 248). This measurement
refers to the brand awareness in the consumers’ perceptions, concluding
brand logo, name, and symbol. For example, the logo of Starbucks declares
that the product category of this brand is coffee.
Brand performance and brand imagery are constructed for the second stage
of brand development, ‘meaning’. While brand performance is how the
products or services meets consumers’ functional demands, brand imagery
specifies “the extrinsic properties” to psychological needs of customers
(Kotler et al. 2012, 248).
Simply, brand performance focuses on the brand’s tangible features, such as
style, design, or price; and brand imagery focuses on the intangible
components of the brand, like history, experiences, and values. Red Bull’s

marketing strategy, to illustrate, is the one which meets both brand
performance and brand imagery. Besides using visually appealing videos
and images, claiming the brand performance, Red Bull focuses on its tagline
and core value “Red Bull gives you wings” in its campaigns to meet
customers' needs in brand imagery (Bergstrom 2017).
In the third brand development stage, ‘response’, brand judgments
illustrate the individual opinions of clients, for example, quality or
credibility; whilst brand feelings describe the consumers’ reactions, like
warmth or excitement (Kotler et al. 2012, 249). The last building block,
brand resonance is the required action in the final step of developing
customers loyalty. This block defines the relationship of consumers
towards to the brand, as well as “the extent to which they feel they’re “in

8


sync” with it” (Kotler et al. 2012, 249). Some examples of brand resonance
are customers loyalty and engagement.
2.2.

Celebrity endorsement

Due to the development of social media, influencer marketing is not an
unfamiliar definition today. Utilizing endorsements from influencers, this
marketing method is established based on the trustworthiness of the
influencers, which means the more trusted the influencer is, the more
credibility the products are (Chen 2019). It is believed that influencer
marketing is the new word-of-mouth (WoM) marketing method in the
digital era.
This new method WoM includes three key actors: the brand, the audience,

and the influencer. In an influencer marketing process, the influencers, like
celebrities or key opinion leaders (KOLs), are invited to collaborate with
the brand, in order to deliver the brand’s message to the target market.
Besides the message from the brand, influencers drive the image and the
value of the brand in the customers’ perceptions, hence increasing the
consumer loyalty.
There are three significant examples of the collaboration of Tiki with the
mega influencer, the macro one and the micro influencer. The mega
influencer, according to Brown, is someone who has at least a million
followers on social media (Brown 2019). For illustration, Min, a
Vietnamese singer, is known as a mega influencer, since she has an
estimated 1.4 million followers on Instagram. Having a large number of
followers, the collaboration with the mega influencer could reach the
largest possible number of audiences. Thus, campaigns with this kind of
influencers mightrequire more money than the original price.

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Macro influencers are the ones having from 100.000 to a million followers
on social media (Brown 2019). As an example, the male singer Lou Hoang
is considered as a macro influencer, as his audience size is about 199
thousand followers on Instagram. Because the audience size of this kind of
an influencer is smaller than the mega influencers’ ones, the expenses for
the macro influencers are lower than the payments for the mega
influencers. Persons obtaining from an audience of 1.000 to 100.000 on
social network are recognized as micro influencers (Brown 2019).
Each kind of an influencer has its significant advantage, for example, the
nano and the micro influencers possess high engagement and credibility
from their followers without costing a high expense, due to their gained

relatability with their followers. The macro influencers usually reach in
specific markets, with a large volume of targeted audiences. The mega
influencers, who are usually famous people owning a huge number of
followers, could productively raise brand awareness by their “explosive
reach” and “halo effect”. It means that their voices could reach the furthest
audiences, while driving followers to trust the brand by utilizing their
popularities. However, these advantages could also be considered as a
disadvantage for the mega influencer; since holding these exclusive
advantages generally leads to an expensive payment in order to invite a
mega influencer to participate in a brand’s campaign, and this can be too
expensive for many brands (Influicity 2018).
2.3.

Dimensions of celebrity endorsements

2.3.1. Famous endorsements
Brand ambassadors or brand representatives are a popular marketing
strategy to attract customers. Brand ambassadors will represent wants and
needs and are easily accepted by consumers. They will be mascots,
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leadership experts or religious leaders (Hafilah, Chaer, and Usman, 2019).
The underpinning theory of influencers as brand ambassadors identified
the opinion leadership of influencers and social relationships with
influencers as two central constructs of influence. to the purchase intention
of followers (Farivar et al., 2021). Today, brand ambassadors will often be
famous people such as singers, actors, models, experts. These people are
loved by many people and have influence on the public. They are appointed
by businesses so that businesses can use their image as a representative of

the brand, carry out communication activities to promote the brand, such
as appearing in press conferences to launch products, in promotional
events. the brand's advertising chain or publish articles related to the
brand they represent on personal social networking sites. Advertised
brands are often represented by many well-known public figures. It is
estimated that about 1/6 of all advertisements worldwide feature
celebrities (A.Shimp and Andrews, 2012). The appointment of a brand
ambassador is also an innovative strategy to maintain and increase the
interest and position of the brand's image, conveying the message widely
to consumers.
2.3.2. Reliability of famous endorsements
2.3.2.1. Theory of associative memory system
The key components of trust are dependable, honest, sincere, and
trustworthy. Most young people tend to rely more on advice than older
people because they want to follow the trends of famous people (Pandey,
2011). Any person who can positively or negatively influence consumer
attitudes is called a reference group, and famous people are the most
trusted reference group (Escalas and Bettman, 2005). Women trust more
female celebrities and men trust male celebrities (Sliburyte, 2009).

11


Companies can also take advantage of highly trusted representatives, who
have a good reputation, popularity, good public image and high credibility
(Song, Chaipoopiratana et al., 2008). Consumers often consider celebrities
as reliable sources of communication (Goldsmith et al., 2000). OseiFrimpong et al. (2019) demonstrated that the trustworthiness of brand
ambassadors has a positive influence on the purchase intention of
consumers. Weismueller et al. (2020) also suggest that the credibility of
brand ambassadors has a positive effect on the purchase intention of

customers. According to Utami et al (2020), viewing trusted online reviews
from brand ambassadors will be helpful for consumers in building their
trust in purchase intention.
2.3.2.2. Relationship between celebrity endorsements credibility and
customer-based brand equity
In the modern marketing landscape, brands have been using social media
influencers as endorsers of their products and services and as brand
ambassadors.

Digital influencers connect consumers and brands,

strengthen their relationships, and enable brands to achieve their goals in a
more natural way to influence the buying consumption (Antunes, 2021).
Utami et al. (2020) demonstrate that brand ambassadors and the quality of
electronic word of mouth (e-WOM) have a positive influence on consumer
purchase intention. In the context of research in Vietnam, Huynh (2020)
identifies that social media influencers as brand ambassadors are
influential during the first three stages of consumer decision making. use.
These influencers gain their influence through creating content that is
useful and relevant to consumers. However, as these influencers grow in
size and attract more sponsorship offers, the authenticity of their product
recommendations becomes questionable.

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2.4.

Factors that determine the credibility of famous endorsements

2.4.1. Attraction
Tradition holds that good looks mean something to people when they buy
something (Reingen and Kernan, 1993). The appearance of beautiful
advertising will create a feeling of attractiveness and increase positive
attitudes, attracting the viewer's attention to purchase (Clow, James et al.
2006). The works of many researchers also demonstrate that physical
appearance and attractiveness are a particular factor for testing celebrity
effectiveness (Baker, Churchill et al., 1977; Joseph 1982; Kahle) and Homer,
1985; Winham and Hampl, 2008). But according to Bower and Landreth
(2001), attractive models are also sometimes ineffective in advertising.
Attraction has many dimensions and is difficult to define, it is impossible to
determine the degree of attraction through a single dimension (Caballero
and Solomon, 1984). The creation of attraction is not only in beauty and
appearance, but non-physical attributes also play an important role in the
level of celebrity attraction such as achievement, ingenuity, intelligence
(Kamins) , 1990; Sliburyte, 2009) relevance to consumer groups
(Deshpandé and Stayman, 1994). Frimpong et al. (2019) demonstrated that
brand ambassador engagement has a positive effect on consumer purchase
intention. Weismueller et al (2020) also suggested that brand ambassador
attraction has a positive effect on purchase intention of customers. Utami et
al. (2020) also confirmed that brand ambassador attraction has a positive
effect consumer purchase intention.
2.4.2. Specialize
The term “expertise” is defined as the degree to which a communicator is
seen as a source of valid assertions (Hovland et al., 1953). To convince the
receiver, the agent's expertise has an encouraging effect on the receiver
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(Ohanian, 1990). Belch and Belch (1994) suggest that recipients of

information have a strong belief in people who actually have expert
knowledge in the field. Agents with high knowledge and skills have a strong
incentive effect compared to agents with low expertise (Ohanian, 1990).
Celebrity expertise is one of the reasons to find its influence on the
recipients of information (Amos, Holmes and Strutton, 2008). Consumers
will judge a brand representative's expertise by the perceived value of
information. Weismueller et al (2020) confirm that brand ambassador
expertise has a positive influence on customer purchase intention. In view
of this, Fernández and Castillo (2021) determine that perceived
informational value in the influence process can cause followers to express
behavioral intentions towards brands that are recognized by influencers
receive confirmation.
2.4.3. Credibility
Brand credibility reflects the extent to which consumers directly and
indirectly experience a brand (Alba and Hutchinson, 1987; Kent and Allen
1994). Brand familiarity captures the brand knowledge structure of the
constituencies, i.e. the brand societies that exist in the consumer's memory.
Familiarity means feeling in tune with the emotional significance and
communication with the celebrity. Celebrity familiarity will have more
positive effects when customers themselves find that they are in tune with
the celebrity (Fernández and Castillo, 2021). This is called the mereexposure effect (Wills, 2021). When customers have a long interaction time
and close interactions with celebrities, familiarity will have a significant
impact on customers' attitudes towards the brand (Ha and Lam, 2016).
Utami et al (2020) confirmed that brand ambassador familiarity has a
positive impact on consumers' purchase intention. In addition, OseiFrimpong et al (2019) also show that celebrity endorsers have attributes
14


such as attractiveness, trustworthiness, and familiarity that have a positive
influence on consumers' perception of quality, purchase intention and

brand loyalty.
2.5.

Purchase intention

Intention is a factor used to assess the likelihood of future behavior (Ajzen,
1985). Online shopping intent is the consumer's ability to make purchases
over the Internet (Delafrooz; Paim; Khatibi, 2010). In addition, consumer
buying behavior is the actions of consumers related to the purchase and
consumption of products/services, including need recognition, information
search, evaluation of alternatives, buying decision and post-purchase
behavior when buying (Kotler, 2003). Consumer buying behavior is the
behavior consumer’s display in finding, purchasing, using and evaluating
products and services that they expect to satisfy their individual needs
(Pressey; Winklhofer; Tzokas, 2009). Online shopping behavior (also
known as online shopping and Internet shopping) refers to the behavior of
purchasing products or services over the Internet (Ha; Stoel, 2009). In this
study, the author based this study on Theory of Planned Behavior (TPB) by
Ajzen (1991). In TPB, consumer behavioral intention is influenced by 3
factors: (1) Attitude, (2) Subjective Norms and (3) Ability to control
perceived behavior.
The analysis of consumer behavior is becoming more and more popular
and important (Price Waterhouse Coopers, 2018). Marketers study how
consumers buy mainly in response to where they buy, what they buy, and
why they buy. In the research model of consumers' perception of celebrity
brand representatives by Nguyen Thi Huong Giang et al. (2018), the results
indicate the trustworthiness, expertise and attractiveness of brand
representatives. Celebrity brands have a proportional relationship with

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customer buying behavior. In which, expertise has the strongest impact on
buying behavior, while attraction has the least influence on buying
behavior.
Also researching on influencer-based marketing campaigns, two authors
Chen Lou & Shu Pei Yuan (2019) have shown that message value and
credibility affect consumers' trust in the social media. Research on the
advertising value of social media in Southeast Asia, conducted by Dao et al
(2014) investigating the precursors of advertising value on social networks
and the influence on online purchase intention in the transition economies
of Southeast Asia. The results show that, in the transition economies of
Southeast Asia, the factors of information characteristics, entertainment
characteristics, message content and reliability have a positive impact on
perceived value. of consumers towards advertising on social networks,
thereby positively affecting their online purchase intention.
Customer satisfaction is an important topic in service marketing but there
is no consensus among researchers. Customer satisfaction is considered as
the customer's emotional state with the product/service used (Spreng &
Mackoy, 1996); is the consumer's perception when the consumption
process meets their needs, expectations, goals in a pleasant and enjoyable
way (Oliver, 1997); or simply a feeling of satisfaction or disappointment
derived from comparing the results of using a product/service with
expectations (Kotler, 2001). For tourism services, we define customer
satisfaction as feelings about the comfort and enjoyment of a destination
that tourists experience. Customer loyalty is a combination of loyalty
behavior and relationship commitment (Ganesh et al., 2000). Loyalty to a
product/service can be demonstrated through repeated purchases,
maintenance of trust or just interest in using a supplier's service (Gremler
& Brown, 1996). For tourist destinations, loyalty is also seen as perceived

16


intention to return to the destination, commitment to return in the future
(Yoo & Uysal, 2005; Horng et al., 2012).
2.6.

Conceptual framework

2.6.1. Measurement
Table 1: Measurement items for the research model
ACTOR

CODING
PA1

Physical

ITEM
HAT

REFERENCE
has

an

attractive

appearance

Ohanian
(1990); Bhatt

Attractivene

PA2

HAT is handsome

ss

PA3

HAT has a classy style

(PA)

PA4

HAT is sexy

PA5

HAT looks very elegant

CP1

HAT has a big fan club

Celebrity

Popularity
(CP)

CP2
CP3
CP4

Celebrity
Credibility

CR1

(CR)
CR2
CR3

et al., (2013);
Carvalho
(2012)

HAT has a non-controversial Wang et al.,
image

(2014)

HAT has is likable

cf.

HAT is a role and ideal model

Nguyen

(2020).

for others
HAT always represents for a Ohanian
reliable image

(1991)

The image of HAT endorsing
TIKI seems to be reliable
I believe the presence of HAT in
an ad makes TIKI more credible
17


The endorsement of HAT on
CR4

TIKI increases my level of trust
about the product

CR5

EX1

EX2

I believe HAT is using that
service
HAT is an expert user about
TIKI app
HAT has experience in using

Credibility

TIKI app

Expertise

HAT is knowledge about the

(EX)

EX3
EX4
EX5
MU1
MU2

Match-up/
Relevance
(MU)

MU3

MU4

MU5

MU6

brand

Amos, Holmes
and
Strutton
(2008)

HAT is an expert in endorsing
HAT is qualified in endorsing
TIKI app.
HAT is relevant to TIKI app.
There is a close connection
between HAT and TIKI app.
HAT’s image fits with the target
customer of TIKI.
HAT’s image fits with TIKI’s
messages

Wang et al.,
(2014)

HAT’s style fits with TIKI’s ads
content
I think TIKI and HAT is a good
match-up

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I am more convinced when
ME1
Multiple

TIKI.

endorsement
s

seeing many celebrities endorse

ME2

(ME)
ME3

I

use

Rice, Richard
TIKI

because

HAT J.

endorses all of the product

Lutz.

(2012)

I have a trust on HAT because
he is a good and kind person.
I believe that the use of celebrity

BP1

endorsement makes me familiar
of online platform.

Brand

BP2

perception
(BP)

BP3

I

know

TIKI

because

its

products are endorsed by HAT
I think HAT can increase brand
recognition of TIKI.

Till, B. D., &
Busler,

M.

(2000)

I am likely to explore more
BP4

about TIKI if its products are
endorsed by HAT

Purchase
intention

PI1

(PI)
PI2

After I am aware of a brand, I Carvalho

will consider to use TIKI.

(2012)

After I know TIKI, I want to try
using this app.
After knowing TIKI & HAT

PI3

endorsement,

I

became

interested in using TIKI app.
PI4

After I know TIKI, I have an
intent to purchase and use this

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app.
2.6.2. Research hypothesis
There are six research hypothesis as the following:
H1: Physical attractiveness has a positive impact on consumers’ brand
perception.

H2: Celebrity popularity has a positive impact on consumers’ brand
perception.
H3: Celebrity credibility has a positive impact on consumers’ brand
perception.
H4: Celebrity expertise has a positive impact on consumers’ brand
perception
H5: Celebrity/product fit has a positive impact on consumers’ brand
perception.
H6: Multiple Endorsements has a positive impact on consumers’ brand
perception.

CHAPTER 3. METHODOLOGY
3.1.

Research Design

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