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Project Title :- Impact of celebrity endorsement on buying behavior of consumers and source of brand building Abstract :Celebrity endorsement

has been established as one of the most popular tools of advertising in recent time. It has become a trend and perceived as a winning formula for product marketing and brand building. It is easy to choose a celebrity but it is tough to establish a strong association between the product and the endorser. While the magnitude of the impact of celebrity endorsement remains under the purview of gray spectacles, this paper is an effort to analyze the impact of celebrity endorsements on brands. Objective of this article is to examine the relationship between celebrity endorsements and brands, and the impact of celebrity endorsement on consumer's buying behavior as well as how consumer makes brand preferences. This paper proposes a 20 point model which can be used as blueprint criteria and can be used by brand managers for selecting celebrities and capitalizing the celebrity resource through 360 degree brand communication which, according to this paper, is the foundation of the impact of celebrity endorsement. Celebrity endorsement is always a two-edged sword and it has a number of positives if properly matched it can do wonders for the company, and if not it may produce a bad image of the company and its brand. (Mukherjee, Aug 2009)

Introduction :The crescendo of celebrities endorsing brands has been steadily increasing over the past 20 years or so. Marketers overtly acknowledge the power of celebrity in influencing buyer's purchase decision. They have firm believe that likeability or a favorable attitude towards a brand is created by the use of a celebrity. The crore of rupees spent per year on celebrity endorsement contracts show that celebrities like Amitabh Bachchan, Sharukh khan and Sachin Tendulkar play an important role for the advertising industry. It is an established fact that celebrity endorsement can bestow unique features or special attributes upon a product that it may have lacked otherwise.

In India from late 1970's and early 80's the new trend in advertising started. Brands started being endorsed by celebrities. Hindi film and TV stars as well as sportspersons were roped in to endorse prominent brands. Though marketers should remember that celebrities are mere living beings like us and if they can highlight the benefits or advantages of a brand they can also have some uncanny negative impact. Theory and practice suggests that the use of stars and their unleashing power in advertising generate a lot of publicity and

attention from the public but the underline questions are, do these stars really help a brand by increasing its sales? On the other hand, can they really have an Impact on the person's consumption pattern, thereby changing his brand preference. Advertisements enforces what exactly the brand stands for and what to expect by its consumption and above all what factors, features and attributes makes it better from competition. Advertisements along with other marketing efforts generate expectations and feelings in a customer and force them to think when they see or hear the brand name. This Thinking process and emotional bonding gets more mature and relevant when a celebrity endorses the brand. The subjective intangible feelings of a customer become objective and tangible in the form of celebrity and the level of expectations will rise. The customer will start to perceive himself in the reference frame of the celebrity after the brand or the advertised product has been purchased or consumed by him. (malang, 2010)

Research Objectives:
Main questions this research aims to answer are: 1. Does Celebrity Endorsement positively affect the buying intention of customers? 2. Which dimensions of celebrity endorsement account greater of casting major impact on buying intention of customers? Hypotheses: H1: Celebrity endorsed advertisement positively influences buying intention of customers. H1a: Celebrity Product matchup motivates me to purchase. H2: Non endorsed advertisements do not persuade me to make purchase.

Objectives of study:
The objectives of the study are as follows: To identify the influence of celebrity endorsement on consumer buying behavior. To study celebrity endorsement as a source of brand-building. To find which type of celebrity persona is more effective

Need of the study:

After going through various sources like magazines, newspapers, websites I found that lot of research work has undertaken by researcher regarding impact of celebrity


Research Motive :There was a gap in the research regarding whether celebrity endorsement act as a source of brand-building. So there is a need to discover this fact. So I decided to work on this particular aspect.

Scope of the study:

As due to time constraint it is very difficult to cover the entire sectors so I decided to cover automobile sector. I am covering automobile sector as whole and not concentrating on any particular category. The study is limited to Hyderabad City only.

Research Methodology:
Research Design: A research design is an arrangement of conditions for collection and analysis of Data in a manner that aims to combine relevance to the research purpose with Economy in procedure. It constitutes the blueprint for collection, measurement and My research design will be exploratory research design. analysis of data.

Data Sources: In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. The researcher can collect data either through primary source or secondary source.

a) Primary data: These are those data which are collected afresh and for the first time, and thus happen to be original in character. I will be using the structured questioners. b) Secondary data: These are those which have already been collected by someone else and which have already been passed through the statistical process. I will collect it from the sources like internet, published data etc.

Population of the study Youth (Male) of Hyderabad will be included in population.

Sampling Size: It is the total number of respondents targeted for collecting the data for the research. Sample size of 100 persons will be taken for this research.

Sampling Technique: Random sampling technique will be used in this research project.

Sampling Frame: Frame is the list of respondents.

DATA PROCESSING Daily data will be entered into MS-Excel sheets. After the exhaustion of the specified geographical area this data will be analyzed using simple graphical and tabulation techniques. The data sheets mentioned here will be attached in the annexure of the report.

Analytical Tools After collection of data another work necessary for any data collector is to correctly analysis that data. So statistical tolls helps us to correctly analysis the data .As I will using here the software named SPSS for analysis of the data

Hypothesis Testing Chi-square test will be used when the set of observed frequencies obtained after experimentation have to be supported by hypothesis or theory. The test is known as X2test of goodness of fit and is used to test if the deviation between observation

(experiment) and theory may be attributed to chance (fluctuations of sampling).2 also enables us to explain whether or not two attributes are associated or related to each other.

To test the goodness of fit : It helps to test goodness of fit by using null and alternate hypothesis.

Literature review
This chapter introduces the concept of celebrity endorsement, providing a definition. Sequentially it talks about celebrity as spokesperson of companies and also draws out the positives and negatives of celebrity endorsements. Furthermore it also discusses the different models on effectiveness of celebrity endorsement strategy along with talking about the impact of multiple celebrity endorsement. Lastly it provides an Indian perspective on celebrity endorsement in India Definition 1 McCracken (1989) provides a clear definition describing celebrity endorser as any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (p.310). He further explained celebrity endorsement as a ubiquitous feature of modern marketing. 2 Friedman and Friedman (1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed. Celebrity endorsements are an omnipresent feature of present day marketing (Friedman.L, 1979). The billions of dollars spent on celebrity endorsement contracts illustrates the importance celebrities play in the advertising industry (Kambitsis.C, 2002). According to research conducted by Stephens and Rice (1998) in USA showed that celebrity endorsed advertising increased from 15% to 25% between 1979 and1997 for all advertising. The use of celebrities in advertisements is not a recent phenomenon (Kaikati.JG, 1987). Celebrities have been endorsing products since the mid nineteenth century. For instance one of the early examples involves Queen Victoria associating with Cadbury Cocoa (Sherman.P, 1985). With the emergence of cinema and later television more and more celebrities from different background were used commercially in television commercials and print advertisements. Agrawal and Kamakura (1995) cited that approximately 20% of all television commercials in USA feature famous people. Shimp (1997) further justifies Agrawal and Kamakura point, through his research findings that around 25% of all US-based commercials used celebrities. On

the contrary from a UK perspective, a report in Marketing indicated that advertising which used celebrities was a key to gaining national headlines (Erdogan.Z, 1999). Friedman and Friedman (1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed. These celebrities act as roles models for a large group of people in terms of their qualities such as trustworthiness, attractiveness and likeability. Marketers exploit these qualities in a celebrity to influence the consumers purchase decision, thus making the advertisement believable to the consumers. Erdogan (1999) cites that celebrities can be used to communicate and reinforce companies marketing communications and positioning effectively. Today, use of celebrities as part of marketing communications strategy is fairly common practice for major firms in supporting corporate and brand imagery (Erdogan, 1999). Firms are drawing 11 parallels with their products and themselves to celebrities in expectation that they will enhance their communications and increase revenue.

Erdogan.Z. (1999). Celebrity Endorsement. Journal of marketing management . Friedman.L, F. a. (1979). Endorser Effectiveness by Product Type. Journal of Advertising Research, , 6371. Kaikati.JG. (1987). Celebrity Advertising: A Review and Synthesis. International journal of advertising , 93-105. Kambitsis.C, H. T. (2002). The Case of 2000 Olympic Games. An International Journal, , 155-161. malang, N. (2010, Janaury 5th). Retrieved from managementparadise: http://www.managementparadise.com/ Mukherjee, D. (Aug 2009). Impact of Celebrity Endorsements on Brand Image. socila science research network , 35. Sherman.P. (1985). "When You Wish Upon a Star," .