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Literature Review

Celebrity endorsement

McCracken (1989) defines Celebrity endorsement as: “Any individual who enjoys public
recognition and who uses this recognition on behalf of a consumer good by appearing with it
in an advertisement”.
According to the Friedman (1979) among the all forms of the endorsement the celebrity
endorsement is the more useful form of advertisement. The use of celebrity endorsement
enables companies to get competitive advantage and strengthen its financial position
(Erdogan, 1999). According to Erdogan (1999), attractiveness does not mean simply physical
attractiveness, but includes any number of attributes that consumers might perceive in a
celebrity endorser: for example, intellectual skill, personality properties, lifestyles, or athletic
Physical attractiveness and outlook of celebrity is very exceptional element to check the
effectiveness of the celebrity (Baker et al., 1977, Joseph 1982, Kahle and Homer, 1985,
Winham and Hampl, 2008).
Trustworthiness and effectiveness are the main indicators of the credibility of celebrity
(Biswas et al., 2006). The endorser perceived honesty, believability and integrity pass on to
the trustworthiness of the endorser, and it can be achieved through a very well known, honest
and reliable endorser Ohanian (1990).Among the most common reasons why companies use
celebrities to endorse their products are those: increase attention, image polishing, and brand
introduction, brand repositioning, etc. (Erdogan, 1999; Ericsson and Hakansson, 2005).
Brand liking is affected by a spokesperson’s likeability. Respondents tend to like brands that
are associated with the characters that they have a high regard for (Callcott and Philips,
1996).According to survey 25% of commercials are based on celebrity endorsement (Shimp
& Terrence, 2000) In 2008, Pakistan was the universally third-fastest rising broadcastings
market. According to data, the number of cellular phone users in Pakistan has reached 131
Celebrity branding is also identified as celebrity endorsement. It is a system of endorsement a
well-recognized sports or showbiz celebrity to be a brand ambassador for an establishment or
firm, basically brands use their social status to support a service or product (Udo, Nwulu, &
Stella, 2015)

Brand Loyalty

Berry (1983) viewed relationship marketing as a strategy to attract, maintain and enhance
customer relationships. Customer relationship can be upheld expand and attract by
relationship marketing.
The basic philosophies of relationship marketing are based on the assumption that company-
customer interactions and strategies can earn and keep the loyalty of customers (Berry, 1995).
Relationship marketing is only a tool which protects brand loyalty recommends by the
Harvard business school Bulletin executive education. Companies who have a great ratio of
loyal buyer can have a great volume of monitory profits (Harvard business school Bulletin
The basic philosophies of relationship marketing are based on the assumption that company-
customer interactions and strategies can earn and keep the loyalty of customers (Berry,
1995).Improving customer loyalty in service area firms ultimately increase profits reduce
customer achievement of low cost, cost of services increase repurchasing and increase
profitability (Reichheld 1933 ,reichheld and sasser1990)
Buyer loyalty has a dominant impression on firms' performance and is measured by many
companies an important basis of competitive advantage (Heskett, Sasser, and Schlesinger
1997; Rust, Zeithaml, and Lemon 2000; Woodruff 1997).
Lawfer [2009] state doing business with devoted customer are more calm, are more
foreseeable and do not attract the other costs usually linked with charming new customers.
Firms with a large devoted customer base enjoy bigger success in good economic times and
are contingent on their devoted customers to assist them through difficult financial conditions
and economic down-turns. The implementation by an organization of customer service act
with the effect of relationship marketing tactics to achieve customer devotion deserves some
realistic research attention
Making a direct relation between repurchase and satisfaction ratings has not been calm for
several establishments (Mittal and Kamakura 2001), While a number of scholars claim that
devoted consumers coming back to purchase goods or services (Taylor and Hunter 2002; Lee,
at al.2006)
A customer will be loyal if the presentation matches or more then the hope. It is the duty of
marketers to build up client loyalty it will ultimately increase the company’s success.
Celebrities are useful spokesperson for the brands they can make effective relationship
marketing and can help maintain the brand loyalty service fir

Brand Association

Aaker (1991) thinks that brand association and brand equity are toughly interconnected to
each other because brand association increases the importance of a specific brand.
Further scholars (Farquhar & Herr 1993, Chen, 1996, Brown & Dacin 1997, Biel 1992)
recognized diverse types of association that subsidize to the brand equity. Chen (2001)
considered two kinds of brand associations - product associations and organizational
According to Gladden and Funk (2002), research on brand associations can benefit both,
support organizations, managers to construct their brands name, and marketers to regulate the
components of brand equity in order to focus and manipulate them.
Robinson clarified idea that brand associations research can add to improve the image,
awareness, and shape consumer loyalty (Robinson, 2006). The concept of brand parity
shaped to be used largely in the 1980s by promotion counselors. (Barwise 1993)
All concepts of brand equity support today that the phenomena include the value added to a
product by customers associations and perceptions of a particular brand name (Winters 1991,
Chaudhuri 1995).Customer-based brand equity is measuring the customer’s response to a
brand name(Keller 1993, Shocker et al. 1994)
Ross et al. (2006) believed that brand association’s study can add to improving the image,
awareness, and build consumer loyalty. According to Gladden and Funk (2002), research on
brand associations can aid for both entertainment organizations’ administrators to shape their
brands name, and marketers to regulate the components of product fairness in order to target
and manipulate them.
Brand association can be shaped through the association with attitudes, characteristics and
profits respectively according to (van Osselaer & Janiszewski, 2001) Product association also
acts as a data gathering tool (to perform product diversity and brand extension (Aaker, 1996)

Customer Satisfaction

Customer satisfaction is defined as a customer’s overall evaluation of the performance of an

offering to date (Johnson and Fornell 1991).
Overall satisfaction has a very positive impact on customer loyalty across wide range of
product and service categories, along with telecommunications services (Fornell 1992;
Fornell et al. 1996). As a complete assessment that is built up over time, satisfaction usually
arbitrates the effects of product value, service value, and price or payment equity on loyalty
(Bolton and Lemon 1999; Fornell et al. 1996).
It also comprises a major affective module, which is formed through repetitive product or
service usage (Oliver 1999). In a service framework, overall satisfaction is related to overall
assessments of service quality. Associated with more episode-based or transaction-specific
measures of performance, overall evaluations are more likely to influence the customer
behaviors that help a firm, such as optimistic word of mouth and repurchase (Boulding et al.
Archaeologically, satisfaction has been used to describe loyalty as behavioral intents (e.g., the
probability of repurchasing and endorsing). However, Verhoef (2003) argues that
longitudinal data that combine study measures with ensuing behavior should be used to create
a causal relationship between insights and behavior.
For example, Bolton (1998) explained a positive impact of general customer satisfaction on
the duration of the relationship for mobile phone customers; Bolton and Lemon (1999)
display a positive outcome of overall satisfaction on customer usage of telecommunications
subscription services.
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Erdogan, B. Z. (1999). Celebrity endorsement: A literature review. Journal of marketing

management, 15(4), 291-314.

Iqbal, J., Farooq, O., & Ahmad, N. (2014). Credibility of Celebrity Endorsement and Buying Intentions
an Evidence from Students of Islamabad, Pakistan. International Letters of Social and Humanistic
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Ohanian, R. (1990). Construction and validation of a scale to measure celebrity endorsers' perceived
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Banyte, J., Stonkiene, E., & Piligrimiene, Z. (2011). Selecting celebrities in advertising: The case of
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Callcott, M. F., & Phillips, B. J. (1996). Observations: Elves make good cookies: Creating likable
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Puncheva-Michelotti, P., McColl, R., Vocino, A., & Michelotti, M. (2014). Corporate patriotism as a
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Udo, M. I., & Stella, C. (2015). A theoretical reflection of celebrity endorsement in

Nigeria. International Journal of Business and Economic Development (IJBED), 3(2).

Brand loyality

Berry, L. L. (1983). Relationship marketing. American Marketing Association.

Berry, L. L. (1995). Relationship marketing of services—growing interest, emerging

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Malik, M. E., Ghafoor, M. M., Hafiz, K. I., Riaz, U., Hassan, N. U., Mustafa, M., & Shahbaz, S. (2013).
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Mohammadoghli, N., & Hassanzadeh, M. (2013). THE EFFECT OF SERVICE QUALITY AND
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Mittal, V., & Kamakura, W. A. (2001). Satisfaction, repurchase intent, and repurchase behavior:
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Cheng-Hsui Chen, A. (2001). Using free association to examine the relationship between the
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Gladden, J. M., & Funk, D. C. (2002). Developing an understanding of brand associations in team
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Halford, J. C., Boyland, E. J., Hughes, G., Oliveira, L. P., & Dovey, T. M. (2007). Beyond-brand effect
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Aaker, D. A. (1996). Measuring brand equity across products and markets. California management
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Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. the Journal
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Cronin, J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and
customer satisfaction on consumer behavioral intentions in service environments. Journal of
retailing, 76(2), 193-218.