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1 INTRODUCTION
According to McCracken's (1989) definition, a celebrity endorser is an individual
who enjoys public recognition and who uses this recognition on behalf of a
consumer good by appearing with it in an advertisement (marketing
communication). Celebrity endorsement is expected to influence the feelings of
the consumers and also influence the attitude consumers have towards the
advertisement and attitude towards the brands, which can increase the purchase
intentions and consequently increase sales. A celebrity endorser used in an
advertisement can be interpreted as a reference group or an aspiration group. To
become 'associated' with this group, consumers are willing to behave like
members of the aspiration group. This means that consumers are trying to
behave in the same manner, e.g. try to use the same symbolic meanings – of the
aspiration group. This means that a celebrity endorser can be interpreted as the
'personality' of the reference group. The reference group 'rich and famous', which
often correspond with the way the ‘celebrities’ live, is frequently indicated as an
aspiration group of which consumers like to be part of.
With the opening up of the Indian economy in 1991, the country witnessed for the
first time aggressive competition between new players and big established
businesses. The various industry segments until then were identified by only one
or two companies, primarily owing to the protectionist policy of the Government.
This new open competition spilled over to the advertising arena, where the Indian
advertising industry heard a new demand from its clientele: a requirement for a
‘known face’ to endorse the client’s product and generate new-found sales. Thus
was born the celebrity brand endorsement saga that in India today is a multi-
million dollar industry.
Today, the celebrity endorsement industry is worth Rs.550 crore and is growing
at high double digit growth rate ranging between 60- 80%. Experts predict the
growth rate to touch even triple digits, soon. Today almost 60% of Indian brands
use celebrities in some form or the other; a steep climb from 2001, when only
25% of brands needed such razzle-dazzle. A top-notch celebrity like Sachin
Tendulkar could charge over Rs 5 crore for a single endorsement. If you were to
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collate all the commercials featuring ShahRukh Khan in a year on all channels,
and play them on a television set, they would run non-stop for 49 days! The
undisputed star endorses 39 brands across 25 categories (eight brands in 2003),
and appears for 4.25 million seconds annually on the idiot box. It is a similar story
for the others too. Amitabh Bachchan endorses 36 brands across 23 categories.
He was seen in commercials for approximately 3.16 million seconds in 2007.
Then, there are cricket superstars like Sachin Tendulkar (21 brands), MS Dhoni
(24 brands).Other types of endorsers can be equally effective but cost much less.
1. Experts.
2. Celebrities
3. Lay endorsers.
Experts
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Experts are individuals or organization that the target population perceives as
having substantial knowledge in a particular area. Typically experts are chosen
because of the knowledge they have accumulated through experience, training or
study.
Various organizations such as the Indian Medical Association, the Indian Dental
Association, will certify the quality of products, sometimes through awarding seals
of approval. A seal of approval is a logo of the certifying organization that
appears on the products package or ad and states that the certifying organization
vouches for the merits of the product. In some cases the organizations are paid
by the manufacture of the products, while in other cases the endorsement is
made in the public interest.
Celebrities
India does not have a single legislation, order, rule or judgment that defines a
celebrity (not even the 20-odd court decisions where the term celebrity
appears).In the absence of a legal definition a celebrity refers to an individual who
is known to the public for his or her achievements in areas other than that of the
product class endorsed .They are individuals or characters who are known to a
large portion of the general population, primarily because of the publicity
associated with their lives. This is true for classic forms of celebrities, like actors
(e.g., Amitabh Bachchan, ShahRukh Khan, Rani Mukherjee Aamir Khan and
Pierce Brosnan), models (e.g., Mallaika Arora, Lisa Ray, Aishwarya Rai, Naomi
Campbell etc), sports figures (e.g. Sachin Tendulkar, Zaheer Khan, Sourav
Ganguly, Anna Kournikova, Michael Schumacher, Steve Waugh, etc),
entertainers (e.g., Cyrus Broacha, Oprah Winfrey, Conan O'Brien), and pop-stars
(e.g., Madonna, David Bowie) – but also for less obvious groups like
businessmen (e.g., Narayan Murthi,Donald Trump, Bill Gates,) or politicians.
Celebrities appear in public in different ways and when celebrities act as spokes-
people in advertising to promote products and services, it is referred to celebrity
endorsement.
Lay Endorsers
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Lay endorsers are unknown individuals or characters that appear in ads, just like
Harry, Louise and Libby. They are selected to closely resemble the target
segment, enabling the target segment to identify with the endorser and the
message.
The three categories of endorsers are not mutually exclusive. Sustained and
effective use of lay endorses over time may make them celebrities in their own
right. Also some individuals could belong to more than one category depending
on the product they endorse. Since sports celebrities frequently endorse sporting
goods as well as other products, there may be an especially large overlap in
classifying endorsers from the world of sports as experts or celebrities.
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1965, the TV celebrity saw a surge in popularity over the movie screen celebrity.
By 1975, the number of TV spots featuring a celebrity had jumped to one in eight.
The celebrity boom had reached such a large hype that a new industry known as
"celebrity brokering" formed. These "celebrity brokers" still exist today; they are
specialists in matching up advertisers and name performers. The largest such
company at the time, Berg-Albert Corp. in Beverly Hills, Calif., billed over $12
billion for about 400 deals alone within the first two years of its formation.
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During the 1980s, cartoon characters also became popular celebrity endorsers.
Fred Flintstone was among one of the most popular animated celebrities of the
80s. The trend of athlete endorsements has continued into the next century.
Though in recent times, the TV/movie personality has seen resurgence in their
popularity as an official endorser of a product. The newest trend to hit the market
in the realm of celebrity advertising has been with the public announcement of
contracts with celebrities for advertising. Between 1990 and 1997, there were 207
cases of endorsements for which public announcements were held.
In the last few years, an even newer trend with respect to celebrity endorsements
has begun to gain in popularity. Celebrities’ characters are beginning to push
advertisements in their regular shows and movies through product placement and
branded entertainment. For example, in a Friends episode the cast members buy
their furniture from Pottery Barn, throughout the entire show promoting the
product No matter what the case, celebrity endorsements have proven to be an
enduring success. Nearly 20 percent of American network television commercials
employed celebrities by 1999. Celebrities flood the advertising scene, whereas
today, it is not uncommon to see three well-known celebrities supporting brands
in one commercial break alone.
Some bigger companies from their global experience introduced the concept of
celebrity endorsement. HLL has used Hindi film stars to endorse their beauty
soap Lux since the fifties.
Phase 3: Globalisation
2. All long existing and successful brands imbue their products with a meaning.
A Brand Ambassador would be one who is not only a spokesperson for the brand
but also an integral part of the brand persona and helps to build an emotion,
which goes beyond just appearing on TV commercials. He takes up the cause of
a Brand Champion and is associated with every aspect related with the brand.
What is more, there is a significant difference between making just an
endorsement for say, a shampoo or an automobile, and being that brand's alter
ego. Both parties take the latter far more seriously to the deal. So a brand
ambassador would be involved in press releases, he/she would be actively
participating in any sales promotion, sporting the Brand all the while. For
example, Fardeen Khan is the brand ambassador for Provogue while he remains
a brand face for Lux Body Wash. On the other hand, a Brand Face would be the
current celebrity who is just used as a tool to increase brand recall and is only
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appearing in the advertisement. It is usually seen that a brand face is a temporary
contract and is very short term at times. An example would be Sona Chandi
Chawanpryash using Sourav Ganguly for a while in its commercials. Brand faces
are easily forgotten and fade away with the campaign's end.
The study and knowledge of consumer behavior helps firms and organizations to
improve their marketing strategies and product offerings. Following are the
important issues that have significant influence on consumer's psyche and their
ability to take decisions:
• The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
• How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
• Their Age, Religion, Culture, Income, informal group and Referent Group.
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Understanding these issues helps us adapt our strategies by taking the consumer
into consideration. For example, by understanding that a number of different
messages compete for our potential customers’ attention, we learn that to be
effective, advertisements must usually be repeated extensively. We also learn
that consumers will sometimes be persuaded more by logical arguments, but at
other times will be persuaded more by emotional or symbolic appeals. By
understanding the consumer, we will be able to make a more informed decision
as to which strategy to employ.
The consumer decision making process is very complicated though on first sight
it does not look so. Process starts with problem recognition or with an unsatisfied
need. This need can be Psychological, attitudinal or Physiological but yes it
should have the capacity to be fulfilled by consuming a particular product or
service.
To satisfy the given need what all are the components that should be taken into
consideration and how one can maximize the satisfaction is the next stage. In this
stage, one will consider ability to purchase, level of involvement, people whose
opinion will count and other relevant details that will help in optimizing
satisfaction. Based upon information search one will generate various
alternatives i.e. which brand or product is affordable for me, where will it be
available comfortably and above all in comparison to other brands or products
how better or economical it is.
Evaluation stage will look like cost benefit analysis and based upon maximum
value or utility per rupee spend, we will decide or shortlist the product or brand.
This is the decision and confirmation stage where the consumers prepares
himself for the purchase of a particular brand and give preference to one and only
one over and above the others.
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Next comes the purchase when the consumer will finally go to the market and
look for the brand or the product, physically verifies it and purchases it. Last is the
post purchase Evaluation in which the customer wants to justify his consumption
or purchase decision. He tries to find out whether his purchase decision was right
or not. Companies make lot of effort to tackle this situation successfully and they
want the customer to be satisfied with their product.
Brand
The above given model explains the important role that a brand plays in three
Preference
different stages of consumer's purchase decision making. A consumer start
collecting data or information about his favourite brand than he keeps his
favourite as one of the alternatives and he evaluate his selected brand against all
available options and on finding it suitable or best among all options based upon
a qualitative and quantitative evaluation he will ultimately purchase the selected
or favourite brand.
Traditional
Brand Preference
Purchase
Consumer’s Factors
Decision
Final Process
product choice
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Figure 1.3 Impact of Brand & Other factors on Consumes Purchase Decision
The diagram above explains how various traditional factors along with brand
preference interact during purchase decision process and finally results into a
consumer's final product choice or ultimate purchase.
Using a celebrity in advertising or for any other type of communication for brand
building is likely to positively affect consumers' brand preference, brand attitude,
brand association and purchase intentions. To ensure positive results, however, it
is critical for advertisers to have a clear understanding of consumer's reactions
and reinforcement of celebrity endorsement. The impact of celebrity endorsement
on any brand as well as on consumer's purchase decision is very critical.
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1.7 CURRENT THEORETICAL UNDERSTANDING
Attractiveness does not mean simply physical attractiveness -although that can
be a very important attribute-but includes any number of virtuous characteristics
that receivers may perceive in an endorser intellectual skills, personality
properties, lifestyle characteristics athletic prowess and so on. The general
concept of attractiveness consists of three related ideas: similarity familiarity and
liking. That is an endorser is considered attractive to receivers if they share a
sense of whether the two are similar in any respect. Gabriela Sabatini, in the
milk-mustache advertisement would seem to epitomize the use of attractiveness
and capture all dimensions of that concept. That is Sabatini, in addition to her
physical beauty, is attractive to tennis fans who are similar to her (in the sense
that they also play or enjoy tennis), are familiar with her (via watching her play on
TV and reading about her) and like her (due to her generally pleasant demeanor
and fiery competitive spirit).
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Gabriela Sabatini, in the milk-mustache advertisement
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the communicator. In its most basic sense, credibility refers to the tendency to
believe or trust someone. When an information source such as an endorser, is
perceived as credible the source can change attitudes through a psychological
process called internalization. Internalization occurs when the receiver accepts
the endorser’s position on an issue as his or her own. An internalized attitude
tends to be maintained even if the source of the message is forgotten or if the
source switches to a different position.
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1.7.3 MEANING TRANSFER MODEL (MTM)
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In addition, celebrities are more powerful endorsers than anonymous models and
actors. Even when they deliver meanings which can be found elsewhere, they
deliver them more powerfully. Celebrities evoke the meanings in their persona
with greater vividness and clarity. Models and actors are, after all, merely
“borrowing” or acting out the meanings they bring to the advertisement. The
celebrity, however, speaks with meanings of long acquaintance. Celebrities “own”
their meanings because they have created them on the public stage by dint of
intense and repeated performance.
Celebrities draw these powerful meanings from the roles they assume in their
television, movie, military, athletic, and other careers. Indeed, these careers act
very much like large advertisements. Each new dramatic role brings the celebrity
into contact with a range of objects, persons, and contexts. Out of these objects,
persons, and contexts are transferred meanings that then reside in society. When
the celebrity brings these meanings into an advertisement, they are, in a sense,
merely passing along meanings with which they have been charged by another
meaning process. Or, to put it this way, the meaning that the celebrity
endorsement gives to the product was generated in distant movie performances,
political campaigns, or athletic achievement. It is these characteristics of a
celebrity, which are passed on to the product and hence to the audience who
start associating the product through the characteristics passed on by the
celebrity.
In contrast to such central processing, there also exists what Petty and Cacioppo
termed the peripheral route to attitude change. In the peripheral route the
attitudes are formed and changed without active thinking about the brand’s
attributes and its pros and cons. Rather, the persuasive impact occurs by
associating the brand with positive or negative aspects or executional cues in the
advertisement that really are (or should be) central to the worth of the brand. For
example, rather than expressly considering the strength of the arguments
presented in the arguments presented in the advertisement, an audience
member may use cognitive “shortcuts” and accept the conclusion that the brand
is superior because
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• There were numerous arguments offered, even if they were not strong and
logical.
• The endorser seemed to be an expert, or was attractive and likable.
• The consumer liked the way the advertising was made, the music in it, and so
on.
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Figure 1.5 ELM Model of Attitude Change
Petty and Cacioppo have proposed the framework in the figure, which predicts
when the audience member will cognitively elaborate and follow the central route.
Two factors identified in the ELM as significant are an audience member’s
motivation to process information and ability to process information. Consumers
are most likely to process centrally when both motivation and ability are high;
when either is low then peripheral processing is most likely.
The categorization of products into low and high involvement is based on the risk
perceptions consumers have when purchasing products (which is significantly
higher for high involvement products). Risk perceptions can be classified into four
categories (Friedman and Friedman, 1979): (1) Psychological risk, the fit between
product image and self image. (2) Financial risk is associated with the price of the
brands/products. (3) Social risk is the fear of not belonging or not taking part to/in
a reference group as a result of purchasing the 'wrong' product/brand. (4)
Operational risk is the risk of buying a product that does not operate the way it
should do. Under conditions of high involvement, where elaboration is likely, the
attitude change travels through a 'central route' in which a person exercises
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'diligent' consideration of information that (s)he feels is central to the true merits
of a particular attitudinal position. For low involvement, low elaboration likelihood,
the attitude change travels through a 'peripheral route' in which various simple
cues associated with the issue, object, or context exert optimal influence. This
means that under conditions of high involvement, arguments but not celebrities
should influence attitudes, whereas under conditions of low involvement,
celebrities but not arguments should influence attitudes.
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Multiple celebrity endorsement refers to the use of two or more celebrities in an
advertising campaign (Hsu and McDonald 2002). There are two sub-types of
multiple celebrity endorsement based on how a celebrity or celebrities are
featured in ads: Type I multiple celebrity endorsement refers to an endorsement
in which two or more celebrities come together and endorse a product or brand in
the same ad; Type II multiple celebrity endorsement refers to an endorsement in
which different celebrities endorse the same product or brand in a series of ad
campaigns overtime. It is a common advertising practice for a brand or product to
be associated with various celebrities over a long period of time. American
Express is a good example. To promote its credit card and enhance its brand
image American Express has been using different celebrities for different
advertising campaigns. The milk mustache campaign is another prime example.
More than 100 celebrities have been recruited to promote milk consumption since
1995 (Hsu and McDonald 2002).Multiple celebrity endorsement advertising may
help the advertiser build a sense of consensus, avoid audience boredom and
appeal to multiple audiences".
By the 1940s, researchers realized there was more to mass communication than
simple cause and effect. While mass communication has some influence, the
strongest influence comes from interpersonal communication, especially with
people whom researchers called opinion leaders .An opinion leader is a peer to
whom others turn for information and who influences the opinions of others. Peers
are people who are their equal, who are just like them. Opinion leaders gather
information from the media and other sources, synthesize it, think about it, form
their opinions about it, and pass it on to others.
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Figure-1.6 Katz and Lazarsfeld Model of Communication
The idea of opinion leader became a very important one, especially for
professional communicators who were trying to influence the opinions and actions
of large numbers of people. When a celebrity endorses a product through a mass
medium, the form of communication is considered to be interpersonal as he or she
seems to be influencing you directly to purchase a product by giving his or her
opinion about it after using the product and synthesising all facts related to it.
Since people relate to such celebrities and are deeply impacted by their
endorsements, they can easily be categorised as opinion leaders. These opinion
leaders tend to impart information coloured by their own perceptions and hence
the possibility of facts getting distorted is high. Same is the case with celebrity
endorsements, where people might get lured into buying a product without
knowing its true characteristics.
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Figure-1.7 the communication process based on understanding the consumer and the
use of celebrity endorsement
1. Source
Source is basically from where the information (of a communication process)
originates. By “originating” we mean the actual number of people involved in
delivering the information. It may range from 1-2 individuals to a large organization
depending on the type of communication process involved.
2. Encoding
The message or information received has to be passed on to the higher authority
or the receiver. This process of passing on the information is known as encoding.
Celebrity endorsers are usually encoders, since they are not the originators of the
message but are the ones imparting it. They thus tend to affect the way the
message is decoded or interpreted by the receivers or consumers, as in this case.
3. Message
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The message is the actual idea which the sender wants to transmit to the receiver.
The message could be written, verbal, non verbal or symbolic that is, the message
could be in semiotics. The message should be such that is easily and
appropriately transmittable through the channel of communication being used.
4. Channel
A channel is a medium through which the sender sends the message to the
receiver. The channel could be a visual medium, an audio visual medium or
simply an audio medium. The message to be transmitted should be easily and
appropriately transmittable through the channel of communication.
5. Decoding
The message sent by the sender has to be decoded into a form understandable
by the receiver. The interpretation of a message depends upon the social
environment and the social conditioning of the receiver. Celebrity endorsements
influence the interpretations of messages to a large extent as people add great
value to messages transmitted through them, as in a country like India where
awareness levels are low people tend to treat celebrities like heroes and thus
consider them highly credible.
6. Receiver
The receiver is the person/ persons to which the message is directed at. In mass
communications, the receivers are large in number and hence tend to be self
directed. In a country like India which harbors people from diverse cultures and
backgrounds, people tend to interpret information transmitted through mass
mediums according to their cultural environments.
7. Feedback
Feedback is an important part of communication, as without the feedback the
sender would not be able to make out if the receiver has been able to interpret the
message in the way it was intended and hence he would not be able to make out
the shortcomings and hindrances in any element of the communication process.
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8. Noise
The noise in the communication process signifies hindrance in any element of the
communication process. Noises can be of three kinds; semantic, environmental
and mechanical.
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Figure 1.8 Model of the source dimensions of copy information
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2.1 INTRODUCTION
Strategic Positioning and effective communication are the two most important
“mantras” guiding brand success in today’s competitive marketing environment.
Corporate are ensuring all possible efforts to promote their brands and to grab
the customer’s mind share. The impetus is on attracting the customer’s attention
and developing positive associations not just to influence recall but also to induce
trial and eventually effect purchase decisions.
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McCracken's (1989) definition, a celebrity endorser is an individual who enjoys
public recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement (marketing communication). Celebrity
endorsement on TV saw a whopping growth of six times during 2007 over 2003.
In 2008, 60% of all advertising rupees were spent on ads carrying celebrities
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Not long ago celebrity endorsement was definitely a way to differentiate a brand
and attract the attention of the consumers.However today every alternate brand
is endorsed by a celebrity and celebrity endorsement has become common
place. In this era of multiple celebrity and multiple product endorsements,
celebrity endorsements would definitely affect consumers in a significantly
different way that it would have a decade ago. In today’s scenario how does a
consumer perceive celebrity endorsements and to what extent does celebrity
endorsement influence his buying decision. Also why is it that the celebrities who
create magic with certain brands fall flat on their face trying hard to get another
going. Thus arises a need for a study that can provide answers to these
questions.
(i) Over 80% of the people remembered the celebrity but forget about the brand.
(iii) Research emphasized that ads without celebrity had a good a chance of
working as one with them. For instance, Hutch ad did better jobs of building a
brand then coke which had many big celebrity names associated with it.
2.5 OBJECTIVES
➢ To identify the impact of celebrity endorsement on consumer buying behavior.
Endorser:
Experts
Celebrities:
Celebrities are individuals or characters who are known to a large portion of the
general population, primarily because of the publicity associated with their lives.
Lay endorsers:
Celebrity endorser
Celebrity endorser is an individual who enjoys public recognition and who uses
this recognition on behalf of a consumer good by appearing with it in an
advertisement
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Brand Ambassador
Brand ambassador would be one who is not only a spokesperson for the brand
but also an integral part of the brand persona and helps to build an emotion,
which goes beyond just appearing on TV commercials.
Brand Face
Brand face is the current celebrity who is just used as a tool to increase brand
recall and only appears in the advertisement.
Multiple product endorsement refers to when a celebrity endorses more than one
brand
The study will be conducted on consumers in Bangalore only. This study will help
to find out the influence of celebrity endorsement on consumer buying behaviour.
For this study only advertisements on television would be considered.
A) Type of research
This is a Descriptive Study because it aims at identifying the various
characteristics of a community, but does not deal with the testing of hypothesis.
B) Type of data
Primary data-Primary Sources are original sources from which the researcher
directly collects data that have not been previously collected. Data will be
collected through questionnaires.
Secondary data- Data collected in the past for some other purpose other than the
problem at hand. This was done by referring to various studies, articles, books
and websites.
D) Type of survey
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In this study, sample survey methodology was used to obtain information about a
large aggregate population by selecting and measuring a sample from that
population. Sample survey was done as the census method was not feasible
owing to the huge population of Bangalore city.
E) Method of sampling
The sampling method used to conduct the study was convenience and
judgement based sampling for the ease of access.
F) Sample size
The Sample Size undertaken for the purpose of this research will be 100
consumers in Bangalore.
A) Tools of analysis
For all the data required, an in-depth analysis was done. The data collected was
filtered down to the core. Tabulation succeeds this stage, where the data was
mentioned in a tabular form. Graphs like bar diagrams were made. Inference was
drawn out of these tables and was mentioned in addition to the explanation of the
table and graphs. For determining the degree of agreeableness, ranking was
done. For this purpose Likert scale was used. The scale for measuring priority is
given as below:
• strongly agree
• Agree
• neither agree nor disagree
• Disagree
• strongly agree
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Response Frequency Percent
Disagree 14 14.0
Agree 39 39.0
Table 2.1Showing the opinion of the respondents about their preference for
celebrity endorsed products
Working note: calculation of the weight score and weighted average mean
a) Calculation of weight score
Weighted score = 30*5 + 39*4 + 5*3 + 14*2 + 12*1 = 361
b) Calculation of weighted average mean
c) Weighted average mean = 361/100 = 3.61
This means that, on an average, the respondents agree that they prefer celebrity
endorsed products to products not endorsed by celebrities.
➢ The statistical tools employed are valid under some assumptions and not
fulfilling even one assumption can lead to varied results.
Chapter 1: Introduction
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Chapter 4: Influence of celebrity endorsement on consumer buying
behaviour- An Analysis
This chapter would include processing and analysis of data collected. Processing
of data would involve editing, classifying according to attributes and class
intervals and tabulating. Analysis part deals with finding out the attitude of
consumers towards various facets of celebrity endorsement.
This is the summary of the study. This chapter shows the consumers perception
about celebrity endorsement and its influence on consumer behaviour.
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3.1 ADVERTISING
From the local business to multinational firm and all need to advertise.
While politicians, social organizations, government special groups need to
advertise their motto, national airlines, auto mobile manufactures, food and
consumer goods manufacturers have to reach the consumer. Specialist products
and services are often advertised through trade magazines and exhibitions.
Lately mail-shots, handbill circulation, special offers have become very popular.
There are still other ways of advertising. There are window displays, display on
telephone directories, transit sign on buses, lamp posters, banners, etc.
Advertising through the electronic media has been perhaps the most popular
medium.
18th Century
• Ads appear for the first time in print in Hickey's Bengal Gazette-India's
first newspaper (weekly).
• Major advertisers: Retailers like Spencer's, Army & Navy and Whiteaway &
Laidlaw
• Horlicks becomes the first 'malted milk' to be patented on 5th June 1883
(No. 278967).
The 1900s
1905: B Dattaram & Co claims to be the oldest existing Indian agency in Girgaum
in Bombay.
1920: Enter the first foreign owned ad agencies, Gujarat Advertising and Indian
Advertising set up, Expatriate agencies emerge: Alliance Advertising, Tata
Publicity LA Stronach's merges into today's Norvicson Advertising, D J
Keymer gives rise to Ogilvy & Mather and Clarion
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1931:National Advertising Service Pr. Ltd. Bombay set up, Universal Publicity Co,
Calcutta Formed
1934: Venkatrao Sista opens Sista Advertising and Publicity Services as first full
service Indian agency
1939: Lever's advertising department launches Dalda - the first major example of
a brand and a marketing campaign specifically developed for India
1951: Vicks VapoRub: a rub for colds, causes ripples with its entry in the balm
market
1954: Advertising Club, Mumbai set up, Express Advertising Agency, Bombay
1962: India's television's first soap opera - Teesra Rasta enthralls viewers
1979: Ogilvy, Benson & Mather's name changes to Ogilvy & Mather
1980: Mudra Communications Ltd set up, King-sized Virginia filter cigarette
enters market with brand name of 'Charms'
1984: Hum Log, Doordarshan's first soap opera in the colour era is born, Viewers
still remember the sponsor (Vicco) of Yeh Jo Hai Zindagi!
1996: The ad fraternity hits big time for the first time by bagging three awards at
the 43rd International Advertising Festival, Cannes
2007: Today the growth rate - is over 22 percent with the total size of the
advertisement Industry touching approximately Rs.16 billion
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3.3 NATURE OF THE INDUSTRY
Groups within agencies have been created to serve their clients’ electronic
advertising needs on the Internet. Online advertisements link users to a
company’s or product’s Web site, where information such as new product
announcements, contests, and product catalogs appears, and from which
purchases may be made.
Some firms are not involved in the creation of ads at all; instead, they sell
advertising time or space on radio and television stations or in publications.
Because these firms do not produce advertising, their staffs are mostly sales
workers.
3.4 MEDIA
Commercial advertising media can include wall paintings, billboards ,
street furniture components, printed flyers, radio, cinema and television ads, web
banners, web popups, skywriting, bus stop benches, magazines, newspapers,
town criers, sides of buses, taxicab doors and roof mounts, musical stage shows,
subway platforms and trains, elastic bands on disposable diapers, stickers on
apples in supermarkets, the opening section of streaming audio and video, and
the backs of event tickets and supermarket receipts. Any place an "identified"
sponsor pays to deliver their message through a medium is advertising.
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Covert advertising embedded in other entertainment media is known as
product placement. A more recent version of this is advertising in film, by having
a main character use an item or other of a definite brand - an example is in the
movie Minority Report, where Tom Cruise's character Tom Anderton owns a
computer with the Nokia logo clearly written in the top corner, or his watch
engraved with the Bulgari logo.
Television Combines sight, sound and motion; High absolute cost, high clutter,
appealing to the senses; high fleeting exposure, less audience
attention; high reach. selectivity
Direct mail Audience selectivity, flexibility, no ad Relatively high cost, junk mail
competition within the same medium, image.
personalization.
Radio Mass use, high geographical and Audio presentation only; lower
demographic selectivity; low cost. attention than television; non
standardized rate structure;
fleeting exposure.
➢ Ameredia
➢ Arnold Worldwide
➢ Arnold Worldwide
46
➢ BBDO
➢ Doyle Dane Bernbach
➢ Goodby Silverstein & Partners
➢ N.W. Ayer & Son
➢ Ogilvy & Mather
➢ Saatchi and Saatchi
➢ Partnership Advertising
47
Mudra Communication Pvt. Ltd
This is one of the renowned advertising companies of India. This advertising
organization was founded in the year 1980 at Mumbai. Recently the Ad Company
declared the addition of public relations, rural marketing, events etc. The head
office of the company is in Bombay Area.
Rediffusion-DY&R
This Advertising Company of India has made a benchmark in the field of
creativity. India's 5th largest advertising company is Rediffusion. This advertising
agency offers a wide array of integrated PR services for external and internal
communications. The primary strength of the company lies in the media relations.
48
Grey Worldwide (I) Pvt. Ltd
A significant name in India in the world of advertising agencies is Grey Worldwide
(I) Pvt. Ltd. The Company is primarily based in Mumbai and has offices in
Kolkata, Ahmadabad, Bangalore and New Delhi. It is a subsidiary of Grey
Worldwide. The company specializes in advertising and marketing services.
➢ After witnessing an average growth rate of only 12-13 per cent over the last
three years, the Indian advertising industry is set to grow 61 per cent by 2010
50
with advertising spend climbing to Rs 36,731 crore from Rs 22,721 crore this
year.
➢ The Indian Media and entertainment industry stood at INR 584 billion in 2008,
a growth of 12.4 percent over the previous year. Over the next five years, the
industry is projected to grow at a CAGR of 12.5 percent to reach the size of
INR 1052 billion by 2013, says a FICCI & KPMG report on the sector .The
report however, highlights that the market environment has become
increasingly challenging for the sector, on the back of economic slowdown
and the consequent slowdown in advertising revenues, especially in the last
quarter of 2008. Sectors like TV, Print, Radio and Outdoor which depend on
advertising revenues were largely affected and this is estimated to continue
into the current year too.
Advertising Market
Medium Growth % Share %
size(08)
TV 8319 17 40.2
CAGR% CAGR%
M&E Industry
2009 P 2010 P 2011 P 2012 P 2013 P
(In Rs.Crore) (2006-08) (2009-13)
P=Projected
Table 3.2 Outlook for Advertising According to KPMG FICCI Report (2009-13)
➢ Advertising spends grew at CAGR of 17.1 percent in the past three years.
Going forward, it is expected to exhibit a robust growth rate at CAGR of 12.4
percent over the next five years.
➢ Internet advertising is seen at 840 crores in 2009 by KPMG and is expected to
have one of the highest growth rates with an expectation to move to 2140
crores by 2013.
52
• Celebrities from Film Industry lead with 81 per cent share of overall Celebrity
endorsement advertising pie on TV during 2007.
• Aerated Soft Drink' was the top category with maximum advertising volumes
of Celebrity endorsement during 2007.
• ShahRukh Khan' had maximum number of advertisers in his kitty during 2007.
(Base: Celebrities from Hindi - Movies & TV Industry and Sports personality considered)
Graph 3.1 Graph showing Celebrity endorsement on a steady rise since 2003
Graph 3.2 Graph showing Personalities from Film industry drives TV ad volume
53
• Film Celebrities had the largest chunk i.e. 81 per cent share of overall
Celebrity endorsement on TV during 2007.
• Sports and TV personalities took the second and third rank with 14 per cent
and 5 per cent share respectively during 2007.
• Film Actors accounted for 50% share followed by Film Actress and Sportsmen
with 31 per cent and 14 per cent share of Celebrity endorsement on TV during
2007.
Toilet soaps 5%
Biscuits 4%
Shampoos 4%
Social ads 4%
Tooth Paste 3%
Cellular phones 3%
Suitings 3%
Two wheelers 3%
Table 3.3 Table showing share of top 10 categories with celebrity endorsement
ad volumes
• 'Aerated Soft Drink', 'Cellular Phone Service' and 'Toilet Soaps' were at the
54
top three positions of top 10 categories with maximum advertising volumes
of Celebrity endorsement on TV during 2007.
Graph 3.3 Showing Top Celebrities with maximum no. of ads in 2007
• ShahRukh Khan, Amitabh Bachchan and Prerna (Shweta Tiwari) were the
top three celebrities with maximum number of advertisers.
Table 3.4 Showing Top three Celebrities Visibility per day on Television through
commercials in 2007.
During 2007 top three position of maximum visible celebrity on TV was occupied
by Film Actors viz. Saif Ali Khan, ShahRukh Khan, Amitabh Bachhan. As seen
above Saif Ali Khan enjoys the highest Visibility in a day.
4. INTRODUCTION
4.1 FINDINGS
56
The perception of the consumers changes with a change in his/her age. To see
the impact of age on the perception level of consumers about celebrity
endorsements, their age was enquired and the responses are tabulated below.
AGE PERCENT
BELOW 20 21.0
20-30 YEARS 23.0
30-40 YEARS 24.0
40-50 YEARS 17.0
50 YEARS AND ABOVE 15.0
TOTAL 100.0
It can be inferred from the table and the graph that the 21% of the respondents
who were enquired were in the age group of below 20 years. The people in the
age group of 20-30 years constitute 23% of the total respondents. The
respondents in the age group of 30-40 years constitute 24% of total respondents.
The respondents in the age group40-50 years constitute 17% of the total
respondents. The respondents above 50 years of age constitute 15% of total.
The respondents were asked about their gender as it has significant implication
on the perceptions and the buying behaviour. The response has been tabulated
below.
57
Graph 4.2 -Showing the gender distribution of respondents
It can be inferred from the table and the graph that the 54% of the respondents
who were enquired were men and 46% were women.
The level of education of the respondents also influences their perceptions and
has an impact on the buying behaviour. The responses about the completed
education level have been tabulated below.
COMPLETED EDUCATION
FREQUENCY PERCENT
LEVEL
Secondary 6 6.0
College 20 20.0
Diploma 14 14.0
Graduation 30 30.0
Post graduation 30 30.0
Total 100 100.0
It can be inferred from the table and graph that of the total respondents, 6% were
educated upto secondary level,20% till college level,14%were diploma
holders,30% were graduates and the rest 30% were post graduates.
The respondents were asked whether they preferred celebrity endorsed products
and brands to products not endorsed by celebrities. The response has been
tabulated below.
58
RESPONSE FREQUENCY PERCENT
Disagree 14 14.0
Agree 39 39.0
Table4.4- Showing the opinion of the respondents about their preference for celebrity
endorsed products
Interpretation
It can be interpreted from the table that 12% of the respondents strongly disagree
that they prefer celebrity endorsed products to products not endorsed by
celebrities, 14% of the respondents disagree, 5% of the respondents neither
agree nor disagree, 39% of the respondents agree and 30% of the respondents
strongly agree with the statement.
Inference
The weighted average mean comes to around 3.61 i.e. on an average the
respondents agree that they have prefer celebrity endorsed products to products
not endorsed by celebrities.
Other than respondents who strongly disagreed or at least disagreed that they
preferred celebrity endorsed products to products not endorsed by celebrities
were asked the reason for their preference towards celebrity endorsed products.
The response has been tabulated below.
Table4.5- Showing the reason for preference towards the celebrity endorsed products
59
RESPONSE FREQUENCY PERCENT
Credibility 28 37.83
Liking 25 32.43
Interpretation
It can be interpreted from the table that out of 74 respondents who preferred
celebrity endorsed products 37.83% of the respondents said that the celebrity
endorsed products were more credible, 48.64% attributed their preference for
celebrity endorsed products to status symbol and 32.43% preferred celebrity
endorsed products simply due to their liking towards the celebrity.
Inference
It can be inferred from the table that majority of the respondents felt that their
preference towards celebrity endorsed products was because celebrity endorsed
products were more credible.
Table 4.6- Showing the opinion of respondents about the impact of celebrity
endorsement on the desire for a product
RESPONSE FREQUENCY PERCENT
Strongly disagree 25 25
Disagree 34 34
Agree 22 22
Strongly agree 5 5
60
Interpretation
It can be interpreted from the table that 25% of the respondents strongly disagree
that celebrity endorsed products increases their desire for the product, 34% of the
respondents disagree, 14% of the respondents neither agree nor disagree, 22%
of the respondents agree and 5% of the respondents strongly agree with the
statement.
Inference
The weighted average mean comes to around 2.48 i.e. on an average the
respondents disagree that celebrity endorsement has an influence on the desire
for the product.
Respondents were asked if they had already known the product information from
a celebrity then does it help them reduce the time on searching the product
information. The response has been tabulated below.
Strongly disagree 5 5
Disagree 14 14
Agree 37 37
Strongly agree 31 31
Interpretation
It can be inferred from the table that 5% of the respondents strongly disagree that
knowing the product information from a celebrity helps them reduce the time on
searching the product information, 14% of the respondents disagree, 13% of the
respondents neither agree nor disagree, 37% of the respondents agree and 31%
of the respondents strongly agree with the statement.
61
Inference
The weighted average mean comes to around 3.75 i.e. on an average the
respondents agree that if they have known the product information from a
celebrity then it does help them to reduce the time on searching the product
information
Respondents were asked whether price comparison becomes less necessary for
products endorsed by celebrities. The response has been tabulated below.
Strongly disagree 23 23
Disagree 45 45
Agree 19 19
Strongly agree 2 2
Interpretation
It can be interpreted from the table that 23% of the respondents strongly disagree
that price comparison becomes less necessary for products endorsed by
celebrities, 45% of the respondents disagree, 11% of the respondents neither
agree nor disagree, 19% of the respondents agree and 2% of the respondents
strongly agree with the statement.
Inference
The weighted average mean comes to around 2.32 i.e. on an average the
respondents disagree that price comparison becomes less necessary for
products endorsed by celebrities.
62
Respondents were asked whether a brand endorsed by a celebrity comes to their
minds before other brands when they go to buy a product. The response has
been tabulated below.
Table 4.9- Showing the opinion of respondents about the impact of celebrity
endorsement on the recall of a product
Strongly disagree 3 3
Disagree 9 9
Agree 51 51
Strongly agree 33 33
Interpretation
It can be interpreted from the table that 3% of the respondents strongly disagree
that a brand endorsed by a celebrity comes to their minds before other brands
when they go to buy a product, 9% of the respondents disagree, 4% of the
respondents neither agree nor disagree, 51% of the respondents agree and 33%
of the respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 4.02 i.e. on an average the
respondents agree that a brand endorsed by a celebrity comes to their minds
before other brands when they go to buy a product.
63
Table 4.10- Showing the opinion of respondents about the impact of celebrity
endorsement on the quality of a product
Strongly disagree 28 28
Disagree 41 41
Agree 16 16
Strongly agree 4 4
Interpretation
It can be inferred from the table that 28% of the respondents strongly disagree
that a brand endorsed by a celebrity is of better quality than similar non celebrity
endorsed products, 41% of the respondents disagree, 11% of the respondents
neither agree nor disagree, 16% of the respondents agree and 4% of the
respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 2.27 i.e. on an average the
respondents disagree that a brand endorsed by a celebrity is of better quality
than similar non celebrity endorsed products.
The perception of the consumers varies across age groups, gender, educational
level and other demographic variables. The table below shows the difference in
responses across different age groups and some of the results are significant.
However for other demographic variables considered in this study namely gender
and completed educational level the results were not significant.
64
Table 4.11-Showing the difference in responses across different age groups
INFORMATION PRICE
AGE PREFERENCE DESIRE RECALL QUALITY
SEARCH COMPARISION
BELOW 4.14 2.81 4.00 2.57 4.29 2.52
Mean
20 Std. 1.062 1.436 1.304 1.363 .717 1.289
YEARS Deviation
3.80 2.83 3.91 2.20 4.23 2.31
Mean
20-30
Std. 1.208 1.043 .981 .994 .646 1.278
YEARS
Deviation
3.92 2.04 3.46 2.31 4.00 2.19
Mean
30-40
Std. 1.294 1.248 1.303 1.050 1.020 1.021
YEARS
Deviation
2.42 2.08 3.83 2.25 3.25 2.17
Mean
40-50
Std. 1.311 .996 1.267 1.055 1.712 .937
YEARS
Deviation
50 1.67 2.00 3.00 2.33 3.50 1.67
Mean
YEARS
.516 1.095 .894 1.033 1.049 .816
Std.
AND
Deviation
ABOVE
3.61 2.48 3.75 2.32 4.02 2.27
Mean
Total Std. 1.363 1.227 1.184 1.091 1.005 1.153
Deviation
Sig. .000 .039 .230 .816 .017 .578
From the above table it can be inferred that there is a significant difference in the
preference for celebrity endorsed products across the different age groups and
this preference decreases with the increase in age. There is also a significant
difference in the impact of celebrity endorsement on the desire across different
age groups. Likewise influence of celebrity endorsement on recall is significantly
different across different age groups.
65
Objective 2: To identify if celebrity endorsement advertising is more
attention getting and memorable than other kind of advertising.
The respondents were asked if they were able to remember the information about
a product endorsed by a celebrity better than the ones not endorsed by
celebrities. The response has been tabulated below.
Disagree 16 16.0
Agree 45 45.0
Interpretation
It can be inferred from the table that 3% of the respondents strongly disagree that
they were able to remember the information about a product endorsed by a
celebrity better than the ones not endorsed by celebrities, 16% of the
respondents disagree, 12% of the respondents neither agree nor disagree, 45%
of the respondents agree and 24% of the respondents strongly agree with the
statement.
Inference
The weighted average mean comes to around 3.71 i.e. on an average the
respondents agree that the remembrance of celebrity endorsed advertisements is
higher than non celebrity endorsed advertisements.
1) 82% of the ads mentioned involved a celebrity and only 18% were non
celebrity advertisements. This is consistent with the results found earlier.
2) ShahRukh Khan had the most number of recalled ads across all sectors
followed by Amir Khan then Ahishek Bachan & Hritik Roshan.
3) In the telecom sector most respondents recalled the recent Airtel
advertisement(without a celebrity) in which a little boy gets punished by his
mother & calls his father from a toy mobile and complains that his mother
shouted at him and asks his father to shout back at her.
4) In the beverages segment the respondents recalled more ads that had the
presence of celebrities rather than non celebrity ads.
5) Respondents found advertisements from apparel sector hardest to recall.
The respondents were asked whether they believed that the celebrities use or at
least believe in the products that they endorse. The responses have been
tabulated below.
Table 4.13- Showing the opinion of the respondents about the belief that celebrities use
or believe in the products that they endorse
Disagree 39 39.0
Agree 12 12.0
67
Interpretation
It can be interpreted from the table that 26% of the respondents strongly disagree
that celebrities use or at least believe in the products they endorse, 39% of the
respondents disagree, 20% of the respondents neither agree nor disagree, 12%
of the respondents agree and 3% of the respondents strongly agree with the
statement.
Inference
The weighted average mean comes to around 2.27 i.e. on an average the
respondents disagree that celebrities use or at least believe in the products they
endorse.
Respondents were asked to mention who according to them was the best
celebrity endorser. The response is shown in the pie chart below.
Chart 4.1-Showing the percentage breakup of the responses for the best celebrity
endorser
It can be inferred from the chart that 28% of the respondents felt that Amitabh
Bachan was the best celebrity endorser.Amitabh’s Credibility, trustworthiness and
ability to appeal to elder as well as younger generation were cited as the reasons.
23% of the respondents felt that Amir Khan was the best celebrity endorser.
Respondents felt that Amir’s image as highly professional and choosy actor
increased the credibility of the brands that he endorsed. Although ShahRukh
68
enjoyed the highest recall only 19% of the respondents felt that ShahRukh was
the best celebrity endorser.
To meet this objective the respondents were asked to name the sector that they
thought was most suited for celebrity endorsement. The response has been
shown in the pie chart below.
Chart 4.2- Showing the Opinion of the respondents about the sector most suited for
celebrity endorsement.
It can be inferred from the chart that 35%of the respondents felt that celebrity
endorsement made most sense for beauty care products, 31%for apparels, 21%
for FMCG and 9% for automobiles. The reason for this can be that people aspire
to look like a celebrity and would want to wear what a celebrity wears .When a
celebrity who is known to be attractive and good looking, uses a beauty cream on
T.V, people would want to use it too. Also we associate celebrities with style,
good looks, attitude etc.Thus when we see them wearing a particular garment of
a particular brand it enhances our desire to have the same.
The respondents were also asked about their opinion on the suitability of celebrity
endorsement for high involvement or low involvement products. The response
has been tabulated below
Table 4.14- Showing the opinion of the respondents on the suitability of celebrity
endorsement for high involvement or low involvement products
69
Both 20 20.0
Neither 2 2.0
Total 100 100.0
Interpretation
It can be inferred from the table that 34% of the respondents felt that celebrity
endorsement had the highest impact for low involvement products and 51% felt
that celebrity endorsement had the highest impact for high involvement products.
Inference
It can therefore be inferred that majority of the respondents felt that that celebrity
endorsement had the highest impact for high involvement products.
Brands have been leveraging celebrity appeal for a long time. Across categories,
whether in products or services, more and more brands are banking on the mass
appeal of celebrities. As soon as a new face ascends the popularity charts,
advertisers queue up to have it splashed all over. Witness the spectacular rise of
Sania Mirza and Irfan Pathan in endorsements in a matter of a few months. The
accruement of celebrity endorsements can be justified by the following
advantages that are bestowed on the overall brand:
70
Khan endorsed Santro and this ensured that brand awareness was created in a
market, which did not even know the brand.
Mass Appeal: Some stars have a universal appeal and therefore prove to be a
good bet to generate interest among the masses.
Rejuvenating a stagnant brand: with the objective of infusing fresh life into the
stagnant chyawanprash category and staving off competition from various
brands, Dabur India roped in Bachchan for an estimated Rs 8 crore
72
Means of Brand differentiation: using a celebrity is a source of brand
differentiation.
Better Brand Image: the use of celebrities could also bring in positive image
among the masses for brand. The credibility and authenticity attached with
Amitabh Bachan has inculcated trust for ICICI, Nerolac Paints and many others
Celebrity endorsement can sometimes compensate for lack of innovative
ideas.
The reputation of the celebrity may derogate after he/she has endorsed the
product: A number of entertainers and athletes have been involved in activities
that could embarrass the companies whose products the endorsed. When the
endorser’s image is finished it actually leads to a greater fall in image for the
brand.
For instance Azharuddin was charge with betting and match fixing, which created
negative feeling and repulsive thoughts among people for the products he was
endorsing. Pepsi has suffered with three tarnished celebrities - Mike Tyson,
Madonna and Michael Jackson. Coca-Cola India was caught in a similar situation,
when a couple of years ago, one of its star endorsers, Salman Khan, was
accused in a couple of cases. A red-faced Coke subsequently dropped Khan from
its endorsement package Since the behavior of the celebrities reflects on the
brand, celebrity endorsers may at times become liabilities to the brands they
73
endorse.
In this research as well many of the respondents not only incorrectly associated
celebrities with brands but also some of them could only recollect the celebrity
and not the brand. For example the future group’s brand Pantaloon was
endorsed by Zaid Khan and Bipasha Basu but many of the respondents
associated them with Tata Groups Westside. Likewise many of the respondents
associated Amitabh Bachan with Raymonds although he endorses Reid &Taylor.
74
Example, MRF was among the early sponsors of Tendulkar with its logo
emblazoned on his bat. But now Tendulkar endorses a myriad brands and the
novelty of the Tendulkar-MRF campaign has scaled down.
Mismatch between the celebrity and the image of the brand: Celebrities
manifest a certain persona for the audience. It is of paramount importance that
there is an egalitarian congruency between the persona of the celebrity and the
image of the brand. Each celebrity portrays a broad range of meanings, involving
a specific personality and lifestyle. Madonna, for example, is perceived as a
tough, intense and modern women associated with the lower middle class. The
personality of Pierce Brosnan is best characterized as the perfect gentlemen,
whereas Jennifer Aniston has the image of the good girl from next door. A mix
match between the image of the credibility and the product can damage both.
Unless there is a synergy between celebrity’s own image and that of product
category the strategy of endorsement is rendered futile.
Necessary Evil: Marketing have felt that once the brand rides the back of
celebrity it becomes difficult to promote it without the star as it becomes difficult to
separate the role of message and the role of the celebrity in selling the brand.
The celebrity activity becomes an addiction and the task to find substitute
becomes more and more difficult.
75
Objective7: To investigate the perceptions about multiple product and
multiple celebrity endorsements and impact of multiple product and
multiple celebrity endorsement on recall and remembrance of
advertisements
Table 4.15- Showing the opinion of the respondents about the influence of multiple celebrities
on attention and likability
Disagree 20 20.0
Agree 35 35.0
Interpretation
It can be interpreted from the table that 3% of the respondents strongly disagree
that multiple celebrities in an ad make the advertisement more likable and
76
attention seeking, 20% of the respondents disagree, 18% of the respondents
neither agree nor disagree, 35% of the respondents agree and 24% of the
respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 3.57 i.e. on an average the
respondents agree that multiple celebrities in an ad make the advertisement
more likable and attention seeking.
Table 4.16- Showing the opinion of the respondents about the influence of multiple
celebrities on purchase intentions
Disagree 28 28.0
Agree 11 11.0
Interpretation
It can be interpreted from the table that 33% of the respondents strongly disagree
that the presence of multiple celebrities in an ad had a positive impact on their
77
purchase intentions, 28% of the respondents disagree, 21% of the respondents
neither agree nor disagree, 11% of the respondents agree and 7% of the
respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 2.31 i.e. on an average the
respondents disagree that the presence of multiple celebrities in an ad had a
positive impact on their purchase intentions
Disagree 14 14.0
Agree 41 41.0
Interpretation
78
It can be interpreted from the table that 4% of the respondents strongly disagree
that multiple celebrities in an ad overshadow the brand, 14% of the respondents
disagree, 14% of the respondents neither agree nor disagree, 41% of the
respondents agree and 27% of the respondents strongly agree with the
statement.
Inference
The weighted average mean comes to around 3.73 i.e. on an average the
respondents agree that multiple celebrities in an ad overshadow the brand
Table 4.18- Showing the opinion of the respondents about multiple celebrities
increasing the expenses without influencing the perceptions towards the product
Disagree 12 12.0
Agree 40 40.0
79
WEIGHT AVERAGE
3.78
MEAN
Interpretation
It can be interpreted from the table that none of the respondents strongly
disagree that multiple celebrities in an ad merely increase the expenses without
influencing the perceptions towards the product, 12% of the respondents
disagree, 23% of the respondents neither agree nor disagree, 40% of the
respondents agree and 25% of the respondents strongly agree with the
statement.
Inference
The weighted average mean comes to around 3.78 i.e. on an average the
respondents agree that multiple celebrities in an ad merely increase the
expenses without influencing the perceptions towards the product.
Disagree 12 12.0
80
Neither agree nor disagree 28 28.0
Agree 42 42.0
Interpretation
It can be inferred from the table that only 2% of the respondents strongly
disagree that trustworthiness and credibility of an endorser decreases with the
increase in the number of products endorsed, 12% of the respondents disagree,
28% of the respondents neither agree nor disagree, 42% of the respondents
agree and 16% of the respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 3.58 i.e. on an average the
respondents agree that trustworthiness and credibility of an endorser decreases
with the increase in the number of products endorsed
Table 4.20- Showing the opinion of the respondents on the recall and remembrance of
the single product celebrity brands
Disagree 13 13.0
Agree 48 48.0
81
Strongly agree 22 22.0
Interpretation
It can be interpreted from the table that 7% of the respondents strongly disagree
that single product celebrity brands enjoy higher recall and remembrance than
multi product celebrity brands, 13% of the respondents disagree, 10% of the
respondents neither agree nor disagree, 48% of the respondents agree and 22%
of the respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 3.65 i.e. on an average the
respondents agree that single product celebrity brands enjoy higher recall and
remembrance than multi product celebrity brands.
Table 4.21- Showing the opinion of the respondents about the awareness and
associations towards brands having multi product celebrities
Disagree 36 36.0
Agree 10 10.0
82
Interpretation
It can be inferred from the table that 23% of the respondents strongly disagree
that multiple product celebrity ads increase awareness and develop positive
associations towards the brand, 36% of the respondents disagree, 10% of the
respondents neither agree nor disagree, 29% of the respondents agree and 10%
of the respondents strongly agree with the statement.
Inference
The weighted average mean comes to around 2.32 i.e. on an average the
respondents disagree that multiple product celebrity ads increase awareness and
develop positive associations towards the brand
5.1 INTRODUCTION
83
➢ To identify if celebrity endorsement advertising is more attention getting and
memorable than other kind of advertising.
The relevant data was collected from 100 consumers in Bangalore through
structured questionnaire. The collected data was analyzed in the previous
chapter using various statistical tools. The summary of findings is elicited, the
conclusions are drawn and suggestions are made in this chapter.
• On an average majority of the respondents agree that if they have known the
product information from a celebrity then it does help them to reduce the time
on searching the product information.
• It was found that there existed a significant difference in the preference for
celebrity endorsed products across the different age groups and this
preference decreases with the increase in age. There is also a significant
difference in the impact of celebrity endorsement on the desire across
different age groups. Likewise influence of celebrity endorsement on recall is
significantly different across different age groups with recall being higher
among younger age groups.
85
• On an average majority of the respondents agree that they are able to
remember the information about a product endorsed by a celebrity better than
the ones not endorsed by celebrities.
• ShahRukh Khan had the most number of recalled ads across all sectors
followed by Amir Khan then Ahishek Bachan & Hritik Roshan.
• 28% of the respondents felt that Amitabh Bachan was the best celebrity
endorser due to his Credibility, trustworthiness and ability to appeal to elder
as well as younger generations.
• 35% of the respondents felt that celebrity endorsement made most sense for
beauty care products and 31% of the respondents felt that celebrity
endorsement made most sense for apparels.
• 35%of the respondents felt that celebrity endorsement made most sense for
beauty care products, 31%for apparels, 21% for FMCG and 9% for
automobiles.
86
• 34% of the respondents felt that celebrity endorsement had the highest impact
for low involvement products and 51% felt that celebrity endorsement had the
highest impact for high involvement products.
5.3 CONCLUSION
From this study it was found that use of celebrities in advertisements influences
the information search, recall and remembrance but at the same time does not
have any impact on the desire for the product, perception of quality, price
comparison and purchase intention. At the same time consumers find only a
handful of celebrities credible as they believe that majority of the celebrities do
not believe in the products they endorse and as the number of products endorsed
88
by a celebrity increases the credibility and trustworthiness of the celebrity takes a
hit.
Multiple celebrities in an ad may tend to make the ad more interesting and
attention seeking but at the same time there is a greater threat of the celebrity
overshadowing the brand. Multiple endorsements do clutter the minds of the
consumer. When one endorser endorses many brands, then the recall of the
endorsement depends entirely on the power of the brand. There are definitely
some brands that go unnoticed and the recall for those stands at a bare
minimum. It is not enough that the celebrity in the advertising be remembered,
more important, the brand must be. Hence the right use of celebrity can escalate
the Unique Selling Proposition of a brand to new heights; but a cursory
orientation of a celebrity with a brand may prove to be claustrophobic for the
brand. A celebrity is a means to an end, and not an end in him/her.
5.4 RECOMMENDATIONS
Celebrity endorsements are the norm of the day today. However a Celebrity can
not ensure that he will increase the sales of the brand. As quoted by Shah Rukh
Khan recently "I cannot take a brand forward. Just because my face is there,
people are not going to use it," Despite this companies continue to use celebrities
to be their brand endorsers hoping that Celebrity endorsements would help build
strong brand preference in the minds of consumers. Companies look for a
synergy between the brand and the celebrity's personality to connect better with
their target audience. Companies need to take care that the celebrities they
select should not overpower their brand and consumers should see a clear
connect between the brand and the celebrity. Continuous feedback from the
target audience will help companies in understanding which celebrity works well
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for their brand. Once the click happens, then the Celebrity becomes a brand
champion rather than a one off endorser. Some of the suggestions for advertisers
and brands involving celebrity endorsement are:
• When using a celebrity endorser, keep the ad execution simple, clean, and
free of irrelevant design elements. Focus on the celebrity and the brand
together.
• Celebrity endorsers will be more effective for brands for which consumers
have limited knowledge/facts.
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• Caution in choice of celebrity endorser is warranted given the potential risk of
tarnishing the brand’s image.
• Feed the results back to the celebrity so they understand their value
5.5 MY LEARNING
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This study helped me to gain a profound understanding of the advertisement
industry in general and celebrity endorsements in particular. This study helped
me comprehend the rationale behind the ever growing use of celebrities for
endorsements. Through this research I understood the various intricacies
involved in celebrity endorsements, the benefits and the risks associated with
celebrity endorsements. This study helped me understand why is it that the
celebrities who create magic with certain brands fall flat on their face trying hard
to get another going. More importantly this study helped me to understand the
various facets of consumer behavior and the influence the celebrity endorsement
has on consumer behavior. Although there is no exact science that would
describe how celebrity endorsements can be used to achieve desired results this
study certainly helped me understand what an advertiser must consider and
concentrate on before deciding to a use a celebrity to endorse a particular brand.
During the process of interaction with the respondents I realized the diversity of
ideologies that people posses and how important it is to deal with different people
in different ways.
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