Celebrity Endorsement :The society that we live in can not only be called secular or democratic, it should be more

appropriately termed as over-communicated these days. A typical super-market in USA displays

more than 12000 brands, an American family has at least one television set and a consumer is
exposed to around 1000 ads per day. Likewise, there are around 130 television channels in India
broadcasting over 3 million television commercials each year in India. The media-explosion can
thus be easily demonstrated. More over, people forget 80% of the information in just 24 hours!
Just imagine the plight of the marketer to make his brand shout over the deafening clutter of all
the brands! Some where in the 80's, Indian marketers found the solution, 'Celebrity Endorsement'
for the brand.
The term Celebrity refers to an individual who is known to the public (actor, sports figure,
entertainer, etc.) for his or her achievements in areas other than that of the product class endorsed
(Friedman and Friedman, 1979). This is true for classic forms of celebrities, like actors (e.g.,
Amitabh Bachchan, Shahrukh Khan, Rani Mukherjee Aamir Khan and PierceBrosnan), models
(e.g., Mallaika Arora, Lisa Ray, Aishwarya Rai, Naomi Campbell, Gisele Buendchen, etc), sports
figures (e.g., Sachin European Journal of Social Sciences Volume 29, Number 3(2012).
Celebrity endorsements and testimonial advertisements have come a long way and theyare also
doing their bit to sell the cars. Super star Shahrukh Khan has been associated with Hyundai
Motor Company for a long time and he comes regularly on television to promote the Santro car.
Similarly Ford has roped in Junior Bachchan for the promotion of the latest offering from the
company Ford Fiesta. On a similar note Saif Ali Khan and Rani Mukherjee is shown chasing
each other with a Chevrolet aveo. Aamir Khan who is considered to be one of the most talented
actors in the industry is frequently seen changing roles on screen to promote the Toyota Innova, a
car which is generations ahead of its predecessor Toyota Qualis. Cricketers have not been left
behind in the race of promoting cars; Fiat Palio had received a great thrust when the promotion
of the car was taken up by the batting maestro Sachin Tendulkar. In addition to the publicity and
advertisement which is done by the companies there are certain innovative strategies which are
taken up by the companies to beat the competition from time.
Businesses have long sought to distract and attract the attention of potential customers that live
in a world of ever-increasing commercial bombardment. Everyday consumers are exposed to
thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and
television. Every brand attempts to steal at least a fraction of an unsuspecting person's time to
inform him or her of the amazing and different attributes of the product at hand. Because of the
constant media saturation that most people experience daily, they eventually become numb to the
standard marketing techniques. The challenge of the marketer is to find a hook that will hold the
subject's attention. Also from a marketing communications (marcoms) perspective, it is vital that

firms design strategies that help to underpin competitive differential advantage for the firm's
product or services. Accordingly, marcoms activities back-up other elements in the marketing
mix such as designing, branding, packaging, pricing, and place The modern world of marketing
communication has become colorful and inundated with advertisements, and it is hard to get
noticed. It is an uphill task for the designer of an advertising campaign to differentiate itself from
others and attract viewers' attention .In this jet age, people tend to ignore all commercials and
advertisements while flipping through the magazines and newspapers or viewing TV. But even
then, the glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in
advertisement and its impact on the overall brand is of great significance. Celebrities are people
who enjoy specific public recognition by a large number of certain groups of people. They have
some characteristic attributes like attractiveness, extraordinary lifestyle or special skills that are
not commonly observed. Thus, it can be said that within a society, celebrities generally differ
from the common people and enjoy a high degree of public awareness. Among the classic forms
of celebrities, actors (e.g., Shahrukh Khan Etc.), models (e.g., Malaika Arora, Bipasha Basu,
etc.), sports-persons (e.g., Imran Khan, Shahid Afridi, etc.) are significant. In this process, the
companies hire celebrities from a particular field to feature in its advertisement campaigns. The
promotional features and images of the product are matched with the celebrity image, which
tends to persuade a consumer to fix up his choice from a plethora of brands. Although this
sounds pretty simple, but the design of such campaigns and the subsequent success in achieving
the desired result calls for an in-depth understanding of the product, the brand objective, choice
of a celebrity, associating the celebrity with the brand, and a framework for measuring the
effectiveness.

Any brand can get a celebrity. That is easy. But getting a celebrity
consistent with the right brand, to the right degree, at the right time,
for the right purpose and in the right way... that is not easy.

Choi and Rifon (2007)

Define celebrity endorsement 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.

Kurzman et.al (2007) Celebrity is an omnipresent feature of society, blazing lasting

impressions in the memories of all who cross its path.

 Advertisement :It is a Marketing Communication from manufacturer to his representatives directed at

customers in order to pursued them to buy, try or at least change perception also
advertizes product or services.

American Marketing Association

Advertising is any paid form of non-personal presentation of ideas, goods and
services by an identified sponsor.

"Advertising is the non-personal communication of information usually paid for and

usually persuasive in nature about products, services or ideas by identified sponsors through the
various media."(Bovee, 1992, p. 7) So much for academic doubletalk. Now let's take this
statement apart and see what it means. Advertising is nothing but a paid form of non-personal
presentation or promotion of ideas, goods or services by an identified sponsor with a view to
disseminate information concerning an idea, product or service. The message which is presented
or disseminated is called advertisement. In the present day marketing activities hardly is there
any business in the modern world which does not advertise. However, the form of advertisement
differs from business to business.

Customers :A customer (also known as a client, buyer, or purchaser) is the recipient of a good,
service, product, or idea, obtained from a seller, vendor, or supplier for a
monetary or other valuable consideration. Customers are generally categorized
into two types:
An intermediate customer or trade customer (more informally: "the
trade") who is a dealer that purchases goods for re-sale.
An ultimate customer who does not in turn re-sell the things bought but
either passes them to the consumer or actually is the consumer.
A customer may or may not also be a consumer, but the two notions are distinct, even though the
terms are commonly confused. A customer purchases goods; a consumer uses them. An ultimate
customer may be a consumer as well, but just as equally may have purchased items for someone
else to consume. An intermediate customer is not a consumer at all.

 Marketing :Marketing is traditionally the means by which an organization communicates to, connects
with, and engages its target audience to convey the value of and ultimately sell its
products and services. However, since the emergence of digital media, in particular
social media and technology innovations, it has increasingly become more about
companies building deeper, more meaningful and lasting relationships with the people
that they want to buy their products and services. The ever-increasingly fragmented world
of media complicates marketers ability connect and, at the same, time presents incredible
opportunity to forge new territory. Julie Barile Vice President of eCommerce,
Fairway Market
Marketing includes research, targeting, communications (advertising and direct mail) and often
public relations. Marketing is to sales as plowing is to planting for a farmerit prepares an
audience to receive a direct sales pitch. Mary Ellen Bianco Director Marketing &
Communications.
Dr. Philip Kotler defines marketing as The science and art of exploring, creating, and delivering value to satisfy the needs
of a target market at a profit. Marketing identifies unfulfilled needs and desires. It
defines, measures and quantifies the size of the identified market and the profit
potential. It pinpoints which segments the company is capable of serving best and it
designs and promotes the appropriate products and services.
American Marketing Association Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.

Pre-Purchase Evaluation :Pre-purchase information will be defined as a series of data processed according to
consumer-specific purposes. Consumers have special characteristics that recognize
optimal information from resources and consumers act depending on their own given

situation (Hoffman, 1998). In particular, the ability to collect product information and
make comparisons between the different product offerings from different providers
possibly across national and currency boundariesis often viewed as one of the main
competitive challenges of e-shopping. The important resources that influence consumer
perceived risk are the following (Berthon, Hulbert & Pitt, 1999; Foxall, Goldsmith &
Stephen, 1998; Harris et al., 1999; Jarvenpaa & Todd, 1997):-

(1) Their own experience with a product or brand

(2) Recommendation (word-of-mouth) from family, friends, and colleagues
(3) Previous imprinting as a result of promotion, usually in association with a specific
brand.

Customer Relationship :Relationship Marketing as an integrated effort to identify maintain and build up a
network with individual consumers and to continuously strengthen the network for
the mutual benefits of both sides through interactive, individualized and value added
contacts over a long period of time.
CRM strategies and CRM software solutions have already migrated from managing and
streamlining customer-facing transactional processes to harnessing customer information in order
to better interact and collaborative with customers. While there is clearly a maturation process
which will continue to improve customer data aggregation, customer analysis, and customer
learning.

FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1
billion. Well-established distribution networks, as well as intense competition between the
organized and unorganized segments are the characteristics of this sector. FMCG in India has a
strong and competitive MNC presence across the entire value chain. It has been predicted that
the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003.16 The
middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of the
product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita
consumption as well as low penetration level, but the potential for growth is huge.20. The Indian
Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased

literacy levels, and rising per capita income. The big firms are growing bigger and small-time
companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the
top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies
own these 62 brands, and 27 of these are owned by Hindustan UniLever. Pepsi is at number three
followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7),
Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have
always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest
categories in FMCG. Between them, they account for 35 of the top 100 brands.The companies
mentioned here are the leaders in their respective sectors.

Review of Literature-

 Haina Ding, (2010), the use of celebrity endorsement as a part of marketing

communication strategy has been gaining popularity over the past years. Monies paid out
by firms on endorsement contracts are estimated to be 10% to 25% of total advertising
expenditures. However, empirical evidences on the effect of endorsement announcements
on the stock prices performance of frims have been mixed at best. It analyzed the share
market perception of celebrity endorsement using a unique sample of 102
announcements. Stock returns and trading volumes depends upon the level of press
attention. Endorsements that appear in a major newspaper show higher average return
and larger trading volume changes at announcement date than those announced on the
corporate website only.
Subhadip, (2011), This study raises three questions and attempts to provide tent active
explanations for them. The first two questions relate to locating, in the consumers
perceptual space, the relative position of Indian celebrities and brands on a set of
personality attributes. The third question relates to determining the fit between the
celebrity and the brands endorsed by his/her. The results suggest that consumers
differentially rank both celebrities and brands. Specifically, Amitabh Bachchan ranks
high on five personality attributes, and brands such as Pepsi and Coke rank high on four
personality attributes. The study further shows that although celebrities may endorse
several brands, their personality does not fit well with the personality of the brand they
endorse.
Till and Shimp, (2007), a recent estimate indicates that almost 20 percent of all
advertisements worldwide use celebrity spokespersons. The general belief among
advertisers is that messages delivered by celebrities provide a higher degree of appeal,
attention, and possibly message recall than those delivered by non-celebrities.
OMahony and Meenaghan (1997) The results of this study designate that a consumer
holds by and large a positive attitude towards celebrity endorsements. Research confirms
that the celebrity endorsement can have an impact on the consumers recall evaluations,
attention and purchase intentions. At the same time it needs to be taken into consideration
that although consumers might have a favourable disposition towards celebrities, this
does not necessarily always translates into purchase intentions.(OMahony and
Meenaghan, 1998).
Melissa St. James, a doctoral fellow and marketing instructor at The George
Washington University, "Studies show that using celebrities can increase consumers'
awareness of the ad, capture [their] attention and make ads more memorable." Diverse
literature is available on celebrity endorsement.
Clinton Amos, Gary Holmes and David Strutton (2008) studied the relationship
between use of a celebrity endorser and the resulting effectiveness of that endorsement.
Kruskal-walls nonparametric test is used to identify relationship between use of a

celebrity endorser and the resulting effectiveness of that endorsement. Negative

information about the celebrity exercised the large impact on celebrity endorsement
effectiveness in advertising. This result underscored the high risk associated with using
celebrity endorsers as well as the huge impact negative information about that celebrity
can have on the consumer perception.
Farida Saleem (2007) Celebrity endorsement is becoming very prominent now a day.
Marketers use celebrities in ads when there is no or very little product differentiation.
When marketers have to target more diverse market multiple celebrities endorsement
(more than one celebrity in a single ad) could be an answer. The purpose of the current
study is to explore the perceptual difference of young adult toward single celebrity ads
and multiple celebrities ads. Questionnaires were administered on a sample of 300
university students to asses if there is any difference in young adult perception about
single celebrity endorsement and multiple celebrities endorsement. Four print media ads,
two containing one celebrity in them and two containing three and five celebrities in them
were used as a stimulus. The results showed that the attitude toward ad and purchase
intentions are more positive for multiple celebrities ads compare to single celebrity ads
and there is no significant difference in the attitude toward brand for multiple celebrities
ads and single celebrity ads.
McCracken (1989) illustrates that a celebrity endorser is a public figure who has great
popularity representing a brand in an advertisement. Celebrity endorsement
advertisements have been known as "a ubiquitous feature of modem marketing"
(McCracken, 1989). Even though celebrity endorsement is costly, marketers are more
than willing to fork out huge amounts of money to get the celebrity endorsing their
product in the hope that the celebrity can be an effective spokesperson for their brand of
product.
The real effectiveness of celebrity endorsement for a product depends very much on the
source credibility of the chosen celebrity. The source credibility model states that the
effectiveness of the advertisement is based on the knowledge and trustworthiness of the
endorsing company and it is heighted by Ohanian (1991), Solomon (1996), Lafferty
and Goldsmith, (1999) and Lafferty et al 2000.

Rationale

The topic of celebrity endorsements and its elements is heavily documented in academic
literature, but what makes this research interesting is that it enables us to understand the celebrity
endorsement process from an Indian consumers point of view. Not much work has been seen in
the Indian light despite the fact of it being perceived as a potential market for celebrity endorsed
products. Indian consumer attitudes are changing at a rapid pace and they are becoming more
aware of the products that they use to define their self. The research is carried out to obtain a
view amongst Indian Consumers to know their pre-purchase evaluation of celebrity endorsed
product.
Industry will be benefited from my research.

Objectives
1. To study the relationship between celebrity endorsement and pre purchase
evaluation in FMCG sector.
2. To study how the advertisements effects the purchases of the customers.

Reference/Bibliography

http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx
http://heidicohen.com/marketing-definition/
http://jcmc.indiana.edu/vol8/issue1/ha.html#definition
http://www.scribd.com/doc/15589322/sandeeps-fine-project-on-celebrity-endorsement-as-a-source-of-brandbuilding
http://www.bls.gov/osmr/pdf/st100270.pdf

Customer Relationship Management, Ekta Rastogi Pg No. 2

Saleem, F., (2007). Young Adult Perception Towards Celebrity Endorsement: A Comparative Study of Single
Celebrity and Multiple Celebrities Endorsement. European Journal of Economics, Finance and Administrative
Sciences, 8, p. 128-139.
Amos, C., Holmes, G., & Strutton, D., (2008), Exploring the Relationship between Celebrity Endorser Effects and
Advertising Effectiveness: A Quantitative Synthesis of Effect Size. International Journal of Advertising, 27(2), p.
209234.
Money, R. B., Shimp, T. A. & Sakano T., (2006). Celebrity Endorsements in Japan and the Unites States: Is negative
Information All That Harmful? Journal of Advertising Research, 26(1).

Choi, Sejung Marina; Rifon Nora J.(2007), Who is the Celebrity in Advertising ? Understanding
Dimensions of Celebrity Image, Journal of Popular Culture, Publisher : Blackwell Publishing, Inc.,
Vol.40, No.2.
McCracken, G. (1989). Who is the celebrity Endorser? Cultural Foundations of the Endorsement
Process, Journal of Consumer Research, Vol.16.pp.310-321.
McCutcheon, Lynn E., Diane D. Ashe, James Houran, and John Maltby
OMahony, S and Meenahgan, T (1997), Research the impact of celebrity endorsements on
consumers, in New Ways for Optimizing Integrated Communications, The Netherlands: ESOMAR,
p1-16
Till, B. and Shimp, T (1998), Endorsers in Advertising: The Case of Negative Celebrity
Information, Journal of Advertising. Vol.27, Issue 1. pp.67-82.
Haina Ding and Philip A. Stork, (2010). The Value of Celebrity Endorsements: A Stock Market
Perspective, Ecole Doctorale Sciences de Gestion, Vol.6, No.3, pp.1-23.
Subhadip, (2011). Policies of retail sector of India and other selected countries, UTMS Journal of
Economics 2 (2): 171180.

Lafferty, B.A, Goldsmith, R.E and Newell, S.J (2002), The dual credibility model: theinfluence of corporate and
endorser credibility on attitudes and purchase intentions, Journal of Marketing Theory and Practice, Vol.10 No.3,
p1-12
OMahony, S and Meenahgan, T (1997), Research the impact of celebrity endorsements on consumers, in New
Ways for Optimizing Integrated Communications, The Netherlands: ESOMAR, p1-16
Marketing Management Philip Kotler,Kevin Lane Keller,Abraham Koshy,Mithileshwar Jha,(2007)

Research Methodology

a. The Study :-

The study is going to be conducted in order to find out the

relationship between the Celebrity Endorsement and Pre Purchase evaluation of
Customer with reference to FMCG sector.

b. The Design :- We will use Survey Design Method. In particular we identify some
purposes of surveys,offers a formal definition of survey design,discuss areas of potential
conflict that may arise when designing surveys and highlights what is meant by optimal
survey design.

c. The Sample :- We will take the feedback from 100 customers from customers of
Indore. The customers must be of the interest group of four wheeler.

d. The Tools :- Tools are divided into two parts

For Data Collection :-

For collecting data Self-Designed Questionnaire is

used and get filled by the customers from Indore.
For Data Analysis: - We will use the appropriate test after collecting the data
based on the same.