Celebrity Endorsement - Consumers’ willingness to pay for celebrity endorsed products

Sammanfattning: Celebrity endorsement has become a widely studied and applied concept by the marketers and managers in modern business organizations. With the progressive marketing and business methods, new promotional tools have also been introduced to provide a competitive edge to the organizations. This paper deals with the research question i.e. investigating the effects of celebrity endorsement on consumers' willingness to pay. The topic is examined through a qualitative method and inductive approach is adopted to proceed with the study. Secondary data is collected through journals, online publications and forms the background knowledge of the study. Primary data is obtained through eight semi-structured interviews conducted with a sample comprising 5 football players located in the Norrbotten County. The outcomes indicate that 4 out of 5 respondents are willing to pay a higher price for the football shoes and equipment endorsed and promoted by the famous football players. However, the willingness to pay varies due to income and substitution effects in different situations. However, it may be concluded that celebrity endorsed products substantially influence the buyers' behavior to buy.