Research Proposal

Research Proposal

Options 1

Problem Symptom: Giordano's sales in Australia have been decreasing for past 5 years.Many stores have shut down in Australia.

Management Decision Problem: To create those kind of advertisements that will make the Giordano brand more appealing in Australia.

Marketing Research Problem: Can celebrity endorsed advertisements of Giordano increase the purchase intentions of the potential target market in Australia.

Research Question 1: What characteristics does a celebrity need to have in order to create a favorable attitude towards the brand?

Research Question 2:What characteristics does a celebrity need to have that will increase the purchase intentions of the potential customers?

Research Question 3: Can celebrity enorsed ad lead to a higher recall rate and grand more attention by the potential customers?

Hypotheses of the Proposed Study

H1: Celebrity endorsed ads by Giordano will have a significant impact on consumers’ purchase intention

H2: Attractiveness of celebrities have a significant impact on consumers’ purchase intention

H3: Trustworthiness of celebrities have a significant impact on consumers’ purchase intention

H4: Expertise of celebrities have a significant impact on consumers’ purchase intention

Dependent Variable: Customer's purchase intentions

Independent Variable: Attractiveness of celebrities, Trustworthiness of celebrities, Expertise of celebrities

The following model will be used to measure the independent variable

The following scale will measure the buying intentions of consumers

Purchase intention after the exposure to stimuli will be measured with a 7 - point Likert scale, which was developed by Coyle şi Thorson / Putrevu şi Lord. The scale consisted of four afirmations:

“It’s very likely that I would buy (brand)”,

„I will purchase (brand) the next time I need a (product)”,

„I will definetly try (brand)”, „Suppose that a friend called you last night to get your advice in her search for a (product). Would you recommend her to buy a (product) from (brand)?”.

How likely would customers prefer buying the brand(PI): very likely/very unlikely, probable/improbable, possible/impossible

The purchase intention of respondents about celebrity brand fit was measured using four items selected from Spears and Singh (2004).

The answer to these hypothesis and research project will help Giordano to determine how it can use celebrity endorsed ads to increase their target customers purchase intentions and hence their sales in Australia.Then Giordano can determine which celebrity it should use for ads in Australia.For example George clooney and Hugh jackman.