Fame & Marketing Across Cultures

Cultural differences among countries influence the success of celebrity endorsements, finds research by ISB’s Manish Gangwar.

Celebrities significantly influence how consumers behave in the global marketplace, notably with India being one of the largest users of celebrity endorsements. While the influence of popular figures on consumers is undeniable, the reasons why some countries respond more positively to celebrity-backed ads than others remain unclear.

To explore this question, ISB’s Manish Gangwar, along with co-researchers Karen Page Winterich and Rajdeep Grewal, examined celebrity endorsements through the lens of Power Distance Belief (PDB) in a recent study. This cultural concept explains how consumers' acceptance of hierarchy and authority varies based on their cultural background, shaping their expectations of celebrity endorsements.

Existing research on brand endorsements has focused mainly on the US. As brands seek to enter international markets, they are increasingly interested in understanding the cultural differences that affect celebrity endorsements. To address this knowledge gap, the study uses PDB to decode these differences, helping brands make suitable endorsement deals tailored to different markets.

What is the recall value of celebrity-endorsed ads

First, to understand the effectiveness of celebrity endorsements in regions beyond US, the study analysed data from 65 countries for different products.

Researchers measured how well people recalled advertisements to assess the impact of celebrity endorsements in different cultures. They found that up to 88% of the ads that respondents remember featured actors, musicians, or athletes.

Why is Power Distance Belief important

High-PDB societies follow authority figures since they feel a power gap between themselves and the celebrity. In contrast, low-PDB consumers do not feel compelled to follow authority figures.

Based on this understanding, the study assumed that PDB acts as a ‘moderator’ which influences how consumers receive celebrity endorsements. In high-PDB cultures, consumers are more likely to favour celebrity advertising than non-celebrity advertising. However, in low-PDB cultures, consumers are usually indifferent to celebrity status. 

To better understand why consumers in high-PDB societies are more influenced by celebrities, researchers identified two factors for source credibility: ‘trustworthiness’ and the perceived ‘expertise’ of a celebrity. Simply put, consumers with high PDB view popular figures as more credible, which improves the impact of advertisements featuring celebrities.

How effective is the ‘moderating’ role of PDB

Researchers conducted an experiment with respondents from India (high-PDB) and the US (low-PDB), comparing high and low PDB cultures. Both groups were shown an advertisement for chocolates. One group saw the ad that featured a celebrity, while the other was shown the same ad without a popular figure but was told that the featured person was a celebrity.

Findings revealed that respondents from India reacted more positively to the celeb-endorsed ad than those from the US. This supported the initial assumption that PDB ‘moderates’ or influences how consumers perceive celebrity endorsement.

The findings were consistent for the second group (which was shown the ad without a celebrity). This suggested that respondents with high PDB (Indian students) showed a positive attitude towards celeb advertisements, irrespective of whether they knew them or not.

Researchers, however, noted that the findings could not be generalised to conclude that PDB would always lead to positive responses for different types of products.

How does product durability ‘mediate’ consumer responses

Consumers rely on heuristic cues (or quick and simple decisions) when considering perishable or non-durable goods like bread and vegetables. However, they spend more time to assess the associated risks when considering expensive or durable goods, such as sports cars and home appliances.

Also, the perceived ‘expertise’ and ‘trustworthiness’ of a celebrity ‘mediates’ how PDB affects consumer’s views on advertising and brands. In high-PDB cultures, celebrities are generally seen as experts, which boosts their credibility and leads to better reactions to advertisements featuring them.

To support this, researchers asked consumers about their views on a celebrity’s expertise in advertisements for non-durable goods like chocolate and toothpaste. They found that in high-PDB cultures, consumers thought that the celebrity was more knowledgeable. This perception led to more favourable reactions to the advertisements and the brand, but it was limited to non-durable goods.

What does this mean for brands

Celebrity endorsements are expensive but usually help businesses achieve their goals. For example, companies like Nike invest over half a billion dollars annually on endorsements. In India, top Bollywood stars earn more than $1 million per product endorsement, promoting as many as 15 products each year.

This, researchers note, increases the stakes for marketing managers to duly consider cultural differences when selecting celebrity endorsers for their brands.

While the study primarily focused on how celebrity endorsements shape attitudes towards ads and brands, it does not examine whether these translate into actual purchases. This is significant because, as the study notes, even if celebrities boost brand awareness or change brand image, it does not necessarily lead to higher sales.

How to tailor ads for high-PDB markets

In countries where people naturally respect authority figures (high PDB), celebrities are usually regarded as more credible, regardless of their expertise. This allows marketers to worry less about the celebrity’s qualifications in these regions.

For example, when comparing swimming legend Michael Phelps endorsing a brand of laundry detergent in the US to renowned cricket player Virat Kohli promoting the same product in India, Indian consumers are more likely to trust the ad featuring the cricketer, even though he lacks expertise in detergent.

While high-PDB cultures respond positively to celebrity endorsements, the research does not suggest that ads featuring celebrities are totally ineffective in low-PDB cultures. The relative success of such endorsements is greater in countries with higher PDB because consumers view celebrities as more credible in these societies, researchers note.

How to tailor ads for low-PDB markets

Meanwhile, in low-PDB cultures, marketers may need to prioritise authentic and relatable messaging instead of relying solely on celebrity influence. This is because consumers in such cultures tend to question authority more, which makes the actual expertise of the celebrity a decisive factor.

Consumers want to be sure that the celebrity genuinely understands the product they are endorsing. For instance, Michael Phelps's endorsement of a swimming gear in the US is likely to be more effective than a product outside his area of expertise, like laundry detergent.

Way ahead for the global market

In case a marketing campaign spans multiple countries, including those with low-PDB cultures, marketers must carefully choose celebrities who genuinely fit the product to ensure its impact. Businesses need to tailor their strategies to cultural contexts to ensure their advertising resonates with the target audience’s values and expectations. There’s no one-size-fits-all approach to global advertising.

Researchers note what works in one country may fall flat in another. Given the substantial investment required for celebrity endorsements, brands must make well-informed choices to maximise engagement, credibility, and returns while tailoring their approach with respect to different markets.

 

Author: ISB Editorial Team