Perceived Quality and Brand Loyalty of Smartphones: An Empirical Investigation of Celebrity Endorsements in Indian Market

Abstract

Celebrity endorsements play an extremely important role in adding value to brands. Despite extensive research in the field of celebrity endorsements by academicians in recent years, different findings and opinions exist in regards to how it works and how one can utilize endorsements effectively to create brand loyalty. This research aims to examine the impact of celebrity endorsements on perceived quality and loyalty of the endorsed brand. Valid responses were obtained from 210 respondents surveyed through mail intercept interviews for six smartphone brands (Samsung, Nokia, Apple, Micromax, Lava and Karbonn). The role of celebrity endorsements was found to be significant and positive in influencing brand loyalty and perceived quality. The role of celebrity endorsements is more profound in creating brand loyalty as compared to creating positive quality perceptions. The findings also indicate a positive and significant relationship between perceived quality and brand loyalty. These findings show that celebrities are good at not only generating attention and recall but are able to create positive perceptions of brand quality and brand loyalty. Implications for scholars and practitioners, limitations and the scope for future research are discussed.