This paper presents the findings of an exploratory conceptual research on celebrity endorsement. Literature survey of both theoretical and empirical research on the subject clearly indicates that celebrity product endorsement is a form of co-branding, which influences brand image through meaning transfer from the endorser to the endorsed brand. Celebrity-product congruence has a positive impact on brand image, which in turn has a positive impact on brand equity. While this paper draws up a model based on a conceptual approach, scope for further research lies in validating the same through a primary research.

Marketers spend enormous amounts of money annually on celebrity endorsement contracts based on the belief that celebrities are effective spokespeople for their products and brands. Overall research has found supporting evidence for this belief in the light of the celebrity endorsers' impact on the audience's attention, recall, evaluations and purchase intentions (Hsu and McDonald, 2002).

Catherine Zeta-Jones topped the list of the highest-paid product-endorsing celebrity after communications giant T-Mobile paid her a staggering $20 mn to promote their merchandise. In 2003, Nike spent about $1.44 bn on celebrity endorsers, two of whom were Michael Jordan (basketball) and Tiger Woods (golf).

Past research has found that celebrities are more effective than any other type of endorsers, such as `the professional expert', `the company manager', or `the typical consumer' (Friedman and Friedman, 1979). To capitalize on this effectiveness, companies hire celebrities to endorse brands with a wide set of objectives and goals. Two of the most important objectives are: (i) to increase brand awareness; and (ii) to establish, strengthen, or change brand image.

Conceptual Research, Celebrity Endorsement, Brand Image, Brand Equity, Literature Survey, Research Framework, Services Marketing, Product Quality, Integrated Marketing Communications, American Marketing Association, Corporate Co-Branding, Strategic Brand Management, Marketing Theory.