Celebrity endorsement is a special type of advertisement which includes a famous

person from film fraternity, athletes, and sports, modelling world etc. it helps in promoting the product brand and also increasing the sales of the product. Celebrity endorsement not only has developed in recent years, it is being used from the past for promoting the product. This type of marketing strategy is used to promote the product and has proved in itself a boon in advertising world. It is mainly used to influence the consumer who comes across these advertisements as it is accessed in the consumers mind for many days even after the advertisement. Celebrity endorsement has not always helped in promoting the product but it has been developed considerably over the years. It is very expensive to endorse a celebrity for a product but in the long run it has helped in increasing the sales of the product. Celebrities are also interested in endorsing themselves in the product as they get compensation for it and their image is been developed considerably. Businesses have long sought to distract the attention of the potentials customers that live in a world of ever increasing commercial bombardment. Everyday consumers are exposed to thousands of voices and images in magazines, news paper, and on billboards, websites, radio and television .Every brand attempts to steal 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 the subject„s attention. Also from the marketing communications perspective, It is vital that firms design strategies that help to underpin competitive differential advantage for the firm„s product or services. The term celebrity refers to an individual who is known to the public (actor figure, entertainer, etc.) for his or her achievements the areas other than that of the product class endorsed (Friedman and Friedman, 1979). Celebrities appear in public in different ways. First, they appear in public when fulfilling their profession, e.g., Viswanathan Anand, who plays chess in front of the audience. Furthermore, celebrities appear in public by attending special celebrity events, e.g., award ceremonies, Inauguration or world premieres of movies. In addition, they present in news, fashion, magazines, and tabloids„, which provide second information on events and the private life of celebrities through mass media channel (e.g., Smiriti Irani being regulated featured in various publications). Last but not the least,


celebrities act as spokes-people in advertising to promote products and services, which is referred to celebrity endorsement. (http://pakistanmba.jimdo.com ) Celebrity is a person who has excelled in his / her field of action or activity. In our day to day activity, we perform many acts, may at home, at work place, on field in sports, in social life. But these acts may be daily routine or just "acts" per say giving no extraordinary results, not noticed by anybody surrounding, and not taken into notice by Media. E.g. A bandit queen of chambal valley was very famous, but was terror before her surrender to police. But she never becomes celebrity. But an actress Ms Seema Biswas who acted in film on "Bandit Queen" on life of that bandit, became very famous and a Celebrity. They pull crowds with their presence only. If it is understood that BIG B is coming for shooting a film, to a particular location on a particular day , then there is big commotion in that area. Police worry about law and order situation, even young generation throng there in big nose to have glimpses of BIG B and even wait since early morning leaving aside their. Celebrities are people who enjoy public recognition by a large share of a certain group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed, it can be said that within a corresponding social group, celebrities generally differ from the social norm and enjoy a high degree of public awareness. (McCracken, Grant (1989), "Who is the Celebrity Endorser?" Journal of Consumer Research, 16 (December), 310-321)


A product endorsement is a form of testimonial from someone which indicates that they like or approve of a product. Commonly, product endorsements are solicited from people who are socially prominent, allowing companies to advertise their products with statements like as used by such-and-such an actress, or the official product of company/event X. It's hard to miss a product endorsement on product packaging and in advertisements; most companies keep their endorsements front and centred so that they are always in the public eye. The concept of the product endorsement is quite ancient. In England, for example, several companies have been advertising themselves as by appointment to the Queen for hundreds of years, indicating that they enjoy the patronage of the British royal family. Consumers are often seduced by the idea of purchasing a product which is endorsed by someone wealthy or famous, as though by buying the product, the consumer also becomes affiliated with the person who endorses it. Modern product endorsements can come with contracts worth substantial amounts of money. For example, many sports stars agree to participate in product endorsement campaigns with the understanding that the company will compensate them for the trouble; some stars donate the proceeds to charities they support, using the product endorsement as a public relations campaign. In exchange for an endorsement contract, someone may agree to use the product publicly whenever possible, and they may be restricted from using products made by a competitor. A product endorsement doesn't necessarily mean that a product is good. It just means that the company has managed to work its public relations connections to get a big name associated with it. While most people and organizations will try out a product before they agree to endorse it, this isn't always the case, and you shouldn't rely on endorsements to speak to the quality of the product, especially if you are concerned about issues like illegal labour or adulterated products. Some endorsements take the form of written testimonials, where people write about how the product changed their lives. Historically, such testimonials were often printed on the product packaging directly; modern testimonials are more commonly included in advertising campaigns, with excerpts only on the packaging. Many companies also use photographs of famous people on their products to create a visual connection between the endorser and the product, which is why sports stars appear on your cereal box. The modern mass media has increased the exposure and power of celebrity. Often, celebrity carries with it immense social capitals that is highly sought after by some individuals. High paying jobs and other social perks unavailable to most people are readily available to celebrities, even for wok not connected to the talents or accomplishment that made them famous. For example - A retired athletes might receive high speaking fees or

compensation for public appearances, despite his talent having been sports, not oratory, while some envy celebrities, and many aspire to celebrity, some who have attained it are ambivalent about their status . Often, celebrities cannot escape the public eye, and risk being followed by fans. As well, child celebrities are notorious for having poor emotional health in adulthood, and often turn to drug and alcohols abuse when their celebrity (as it usually does) fades.

(Erdogan (1999), "Celebrity Endorsement: A Literature Review", Journal of Marketing Research, 15, 291-314)




Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision-making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. 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);

The psychology of how the consumer is influenced by his or her environment (e.g.,

culture, family, signs, media);
 

The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ

in their level of importance or interest that they entail for the consumer; and

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.

Understanding these issues helps us adapt our strategies by taking the consumer into consideration. (Daneshvary, Rennae and R. Keith Schwer (2000), "The Association Endorsement and
Consumers' Intention to Purchase," Journal of Consumer Marketing, 17 (3), 203-213)


Consumer Decision-making process:-

The given process is very complicated though on first sight it does not look so. Process starts with problem recognition or with an unsatisfied need. Something that a consumer would like to have or purchase in order to attain satisfaction. 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 we can maximize the satisfaction is the next stage. In this stage, we will cover ability to purchase, level of involvement, people whose opinion will count and other relevant details that will help us in optimizing satisfaction. Based upon information search we 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. 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. This stage may result into three situations, first is satisfaction where customer is satisfied and he got expected results but this does not necessitates the repeat purchase by the consumer. Second is dissonance where the consumer is not satisfied as he got less utility or less than expected result from the consumption or product performance. Third is Delight, here the consumer gets more than expected satisfaction and utility and this will assure the repeat purchase and creation of brand loyalty. (Friedman, Hershey H. and Linda Friedman (1979), "Endorser Effectiveness by Product Type," Journal of Advertising Research, 19 (5), 63-71)


(McCracken, Grant (1989), "Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process," Journal of Consumer Research, 16 (3), 310-321)


Traditional Factors affecting consumer decision making

There are several factors that affect consumer's decision to purchase a brand and a product. These factors though at time are not very much visible but they make an impact and affects sales of a product or brand up to a great extent. The table below shows some of these factors.

Table1. Factors affecting consumer purchasing decision

(Aaker, David A. (1996), Building Strong Brands. New York, NY: The Free Press)


Meaning of celebrity endorsement In India today, the use of celebrity advertising for companies has become a trend and a perceive winning formula of corporate image building and product marketing. Associating a brand with a top-notch celebrity can do more than perk up brand recall. It can create linkages with the stars appeal, thereby adding refreshing and new dimensions to the brand image. In a world filled with faces, how many do you remember? Admittedly the ones that evoke some kind of feel in you, whether it‟s humours, acceptance, appreciation or recognition. These are the faces you‟d turn to look at, the ones that would stop you in your tracks. And that‟s when you have more than just a face. You have personality.

“Personality that‟s reflective of your brand and promises to take it that extra mile”. The argument supports a position by citing the endorsement of someone who is well known famous. The person need not necessarily be an authority implies that the endorser‟s game alone is sufficient to establish the truth of the position. As existing media get increasingly cluttered, the need to stand out has become paramountand celebrities have proved to be the ideal way to ensure brand prominence. Synergizing personality with product and message can create an instant breakthrough. Result? Brand buzz. People begin to notice, opportunities come about. People want to be part of the brand. “Touch it. Feel it. Experience it.” „Celebrities as brands‟ is a concept-selling challenge, as the current notion of celebrity management is far from ideal – it‟s perceived as a business that merely attaches celebrity to the brand to get that added advantage. However, the actual job is not mere brokerage --- it‟s about selecting a celebrity whose characteristics‟ are congruent with the brand image. Before we proceed to identify the right celebrity or personality and test the correspondence bias lets first have a look at the literature survey done, address a few issues involved in celebrity advertising and understand the methodology of the study. Using celebrities in advertising dates back to the late nineteenth century and this common advertising practice has drawn a considerable amount of academic and practical attention. Most academic investigations of celebrity endorsement have been contextualized in the realm of source credibility and attractiveness models, and suggest that celebrities exert their influence on

consumer through perceived attributes such as expertise, trustworthiness, attractiveness, familiarty, and likeability. Another stream of research on celebrity endorsement which labeled the “match-up hypothesis: has examined the lift or “match” between a celebrity and product being endorsed, and maintains that celebrity endorsement is more effective when the in similar vein, McCracken suggest that a: celebrity who best represent the appropriate symbolic properties “of the product should be selected, thus highlighting the importance of the cultural meanings of celebrities in the endorsement process. ( Erdogan (1999), "Celebrity Endorsement: A Literature Review", Journal of Marketing Research, 15, 291-314)

Celebrites embody a collection of culturally relevnt images, symbols, and values. As the images of the celebrity become associated with the products through endorsement, the meanings they attach to the product are transffered to consumer through and consumption. Therefore, the practice for celebrity endorsement should be closely related to the cultural context in which the images of celebrities are formed and individual celebrites are selected to be linked with particular products. For advertising practitioners, employing an appropriate celebrity endorser to promote a product is important and difficult tasks. For instance , as suggested in the theoretical literature , professional at advertising agencies and their companies in the united states and united kingdom cited celebrity attributes such as image , trustworthiness Familiarity, as well

as the fit between celebrity and the product, as important factors for choosing the appropriate endorsers. Other highly ranked decision factors include celebrity/ target- audience congruence, costs of securing the celebrity, the celebrity‟s risk of controversy, and the celebrity‟s prior endorsement. As suggested by Erdogan, Baker, and Tagg (2001), the perceived importance and the actual use of endorser selection criteria may vary from culture to culture. Differences in the entertainment industry and the agency business, and more broadly, in the cultural environments are likely to influence the execution of the celebrity endorsement strategy across countries. Arguing for standardized advertising across countries, some contend that consumer demands and tastes have become similar on a global scale (and that using celebrities with worldwide recognition in advertising is an effective means of overcoming cultural difficulties. Others claim that despite some observed convergence among consumer around world, fundamental values still remain divergent across cultures. Therefore, international advertisers cannot assume that the same advertising technique should be uniformly applied or that it will be equally effective in different countries. Yet research on similatries and differences. Celebrity endorsements are very expensive. Therefore their use in an ad should be justified. In other words, the message strategy for a brand should strongly warrant the use a known face in an idea. Sadly, very often the celebrity is hired first and an idea is then weaved around his or her presence. Khan stresses, “The important thing to remember is that putting a celebrity in an ad is not an idea in itself. Unfortunately, this is how most celebrities are being used in Indian advertising, where they just become a prop. Ideally, there should be an idea that makes the celebrity relevant to the product and the consumer.” A celebrity‟s presence in the ad should be contextual. When Sachin Tendulkar declares, “Boost is the secret of my energy,” it doesn‟t seem out of context. Internationally, Nike‟s association with Michael Jordan is legendary and also logical. Mendonza adds, “I think celebrity endorsements work best when the celebrity is not introducing the brand. When the product already has a strong identity and a USP that is well established, then a celebrity can come in and give the brand an added fillip and generate some more interest value. However, what is of paramount importance is to find a complete fit between the values of the brand and the values of the celebrity. One needs to create a unique situation or story that links the celebrity to the product.”

(Dean (1999), "Brand Endorsement, popularity, and Event Sponsorship as advertising cues affecting consumer Pre purchase attitude", Journal of Advertising, Volume XXVIII, Number 3, 1-12)

Celebrity Endorsement in India Phase 1: The Pioneering Phase (1950-1980) this phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations 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 2: The Growth Phase (1980-1990) the introduction of television added a variable effective medium of communication. Indian stars going global with events like Asiads and World Cup victory. Vimal, Thums-Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings). Phase 3: Globalisation In highly competitive markets, the following realities about brand management exist: 1. Product differentiating factors are duplicable and imitable. 2. All long existing and successful brands imbue their products with a meaning. (www.rediff.com – article by Country head, O&M India)







Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited by showing him a known face, and an effective demand is created. In short it helps increase the recall value of the brand. A piece of research states that the target audience age group of 15-30 gets influenced first by cricketers, then Bollywood stars and only then music, festivals and food4. The following are the theories of understanding celebrity endorsement: Source Credibility Theory

According to Source Credibility Theory5, acceptance of the message depends on 'Expertness' and Trustworthiness' of the source. Expertness is defined as the perceived ability of the source to make valid assertions. Trustworthiness is defined as the perceived willingness of the source to make valid assertions. Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product.  Source Attractiveness Theory

According to Source Attractiveness Theory, which is based on social psychological research, the acceptance of the message depends on familiarity, likeability and similarity. Familiarity is the audience's knowledge of the source through exposure; likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. This theory explains the message acceptance in two ways: Identification and Conditioning. Identification is when the receiver or the target audience of the communication begins to identify with the source's attractiveness, and hence tends to accept his opinions, beliefs, habits, attitudes etc. On identification, a quote from Bijou Kurien, COO, Titan, "We decided on Aamir because we wanted someone who is a bit iconic, who is style-conscious himself, and somebody who cuts across both sex and age group, between urban and rural India. A celebrity who is mouldable and who is not over-exposed". Conditioning is when the attractiveness of the source is supposed to pass on to the brand after regular association of the source with the brand.  Meaning Transfer Theory

Grant McCracken6 has criticized the previous two theories and proposed the Meaning Transfer Theory. The theory explains that a celebrity encodes a unique set of meanings which

if well used can be transferred to the endorsed product. Such a transfer takes place in three stages - encoding meanings, meaning transfer, meaning capture.(figure 3) I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of meanings in their image. For example Preity Zinta can be seen as a lively, charming, bubbly, witty and enthusiastic. II. Meaning Transfer: This stage transfers those meanings to the product. When skillfully portrayed, celebrities can communicate this image more powerfully than lay endorsers. III. Meaning Capture: This assumes that consumers purchase products not merely for their functional value but also for their cultural and symbolic value. The theory says that consumers buy the endorsed product with the intention of capturing some of the desirable meanings with which celebrities have passed on to the product. This is more eminent in lifestyle products like clothes, perfumes, cell phones etc.


(Tom, Gail, Rebecca Clark, Laura Elmer, Edward Greech, Joseph Maselli, Jr. and Harmona Sandhar (1992), “The use of created versus celebrity spokesperson in advertisements”, Journal of consumer Marketing, 9(4), 45-51) (Misra,S and S,. Beatty, “Celebrity spokesperson and Brand Congruence”. Journal of Business Research, 21 (1990) pp159-173)




The basis for the effectiveness of celebrity-endorsed advertising can be linked to Kelman's processes of social influence as discussed by Friedman and Friedman. According to Kelman, there are three processes of social influence, which result in an individual adopting the attitude advocated by the communicator:

Compliance, Identification & Internalization:- These latter two processes are particularly applicable to celebrity-endorsed advertising. Compliance infers that another individual or group of individuals influences an individual cause he or she hopes to achieve a favourable reaction from this other group. This process of social influence is not directly applicable to celebrity advertising because there is little, if any, interaction between the celebrity and the consumer. Identification applies to the situation wherein the individuals emulate the attitudes or behaviour of another person or group, simply because they aspire to be like that person or group. This process is the basis for referent power. It was found that celebrities are more commonly liked than a typical consumer spokesperson. Internalization as a process of social influence is said to occur when individuals adopt the attitude or behaviour of another person because that behaviour is viewed as honest and sincere and is congruent with their value system. The effectiveness of celebrity advertising traditionally has not been strongly linked to this process, as a celebrity's reason for promoting a product can just as easily be attributed by the consumer to an external motive (i.e., payment of fee) as to an internal motive (i.e., the celebrity's true belief in the value and benefit of the product). An important issue of concern relates to the development of a strategy for use in Celebrity Advertising, which benefits from the dramatic impact of dual support of both the identification and internalization processes of social influence. Celebrities are well-liked, but the techniques that can be used to enhance their credibility as spokespeople, and therefore, tie-in more closely with the internalization process needs to be looked into.


Effectiveness of Celebrity Endorsers A study conducted by Charles Atkin and Martin Block focussed on alcohol advertising and young audience to examine the impact of celebrity advertising in terms of social effects of advertising. The sponsoring Company is the underlying source of any advertising message, but the individual models depicted in the advertising serve as the more visible communicator in many cases. The most thoroughly studied source quality is credibility research conducted by social psychologists over the past 30 years demonstrates that a source perceived as highly credible is more persuasive than a low credibility sender (Hovland and Weiss, 1951; McGuire, 1969; Hass, 1981). The sources that companies use to present their advertising message typically attempt to project a credible image in terms of competence trustworthiness or dynamism. Celebrity endorsers are considered to be highly dynamic, with attractive and engaging personal qualities. Audience may also trust the advice given by some famous person, and in certain cases, celebrities may even be perceived as competent to discuss the product. Friedman, Termini and Washington cite a 1975 study showing that celebrities are featured in 155 of

prime-time TV commercials. A later survey reported that this proportion was up to 20% (Advertising Age, 1978). The most widely used celebrities are sports figures, actors or other types of entertainers. There are several reasons why a famous endorser may be influential:     They attract attention to the advertisement in the cluttered stream of messages They are perceived as being more entertaining They are seen as trustworthy because of apparent lack of self-interest. The final element is due to the wide-spread attribution that major stars do not really

work for the endorsement fee, but are motivated by genuine affection for the product (Kamen et al, 1975). (Friedman, Termini and Washington, 1977)


The basic assumption underlying celebrity endorsement is that the value associated with the celebrity is transferred to the brand and therefore help create an image that can be easily referred by consumers. Consequently by association the brand can very quickly establish the creditability get immediate recognition and improve sales. However, there are many risks associated with such endorsers. The brand could slide down just as quickly as it moved up the consumers mind. There are many cases of brands failing in the market place despite famous celebrities endorsing them.

 Celebrity overshadows the brand: In certain cases where the celebrity values category benefit and brand values are not closely linked. There are chances that the celebrity is remembered more than a brand. Cyber media research study reveals that 80% of the respondents approached for research remembered the celebrity but could not recall the brand being endorsed.  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.  Celebrity creditability a question mark for the competent customer: Today‟s marketing endorsement has to deal with a competitive and knowledgeable customer who has begun to voice his opinion about their perception about endorsing a brand. Celebrity is said to befool the public as he is paid to sell and communicate good things about the brand. Hence the question of creditability of the celebrity being chosen to protect the brand is becoming pertinent.  Conflicting Image: A mix match between the image of the credibility and the product can damage both. Unless there is a synergy between celebrities owns image and that of product category the strategy of endorsement is rendered futile.  Multiple Endorsement: The poly endorsement have lead to a celebrity clutter. Celebrity endorsing multiple products and multi brands in a category has left the customer confused and has lead to dilution in the celebrities‟ value.


Influence of Celebrity scandals and moral violation on brands : 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.

 Build Awareness: A new brand can benefit greatly if a celebrity endorses it. It can attract the customers attention and inquisitiveness to see what product is being endorsed. Research has shown consumers have a higher level of message recall for products that are endorsed by celebrities.  Connects Emotionally: some celebrities like Shahrukh Khan, Amitabh Bachan command great adoration among people. Such celebrities can positively influence their fans etc. a great extents and hence tend to even connect with the brand emotionally because of their star enduring it.  Quick Connect: The communication process tends to hasten up due to the more presence of a celebrity. This is because the star carrying the message tends to click with the customer more. Because of likeability, recall attractiveness and creditability thereby helping the company to clearly and quickly pass on the message to the target customers.  Means of Brand different ion: using a celebrity is a source of brand differentiation. In a category where a brands is suing a celebrity the first that picks one up could use it differently itself in the market the same was done by Boost in the malted beverage category.  Source of Imitation and hence inducing increased product usage: celebrities actually tend to become models or idols for the target audience who tend to start using the product just because the celebrity name is attached with it. For instance, Lux has been used by many as it is a beauty soap recommended by the beauty queen, Aishwarya Rai. 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. ( Clark, Robert C. and Horstman, Ignatius J. (2003) Celebrity Endorsents ) (www.bu.edu/e.con/seminar/micro/pdffav) celebendorse.bu.pdf)

 Primary data
Primary data are those which will be collected afresh and for the first time, and thus happen to be original in character. A structured questioner will be used for the collection of primary data.

Area of study
The study will be conducted on the peoples of Jodhpur.

Sampling size
Sample size: 100 persons of the city will be interviewed for this research.

Sampling technique
Random sampling technique will be used in this project

Secondary data

These sources contain data, which have been collected and compiled for detailed study of the topic. The secondary data will be collected from various books, reports, articles, websites and other sources.


The following are the findings regarding the consumer survey conducted by me. The following graphs show the consumer‟s perception about different things, as shown below, their questions:-

1. Occupation of the respondent:Occupation No. of respondent Result in % Business class Service class Student Others Total 8 10 25 7 50 16 20 50 14 100


16% Business class service class 20% student others


 On the basis of research, 50% of the respondents are students, 20% from service class, 16% from business and 14% from others.


2. Age of respondent:Age 18-25 26-32 32-40 More than 40 Total No. of respondent 25 12 10 3 50 Result in % 50 24 20 6 100

6% 20% 50% 18-25 26-32 32-40 more than 40 24%

 On the basis of survey, more than 60% are between the age group of 18-32.

3. Gender of the respondent:Gender Male female Total No. of respondent 38 12 50 Result in % 76 24 100


44% 56%

male female

 Among the respondents, 76% are male and 24% are female.

4. Branded product ownership, among the surveyed people :-

Branded Product ownership

No. of people

Result in %

Yes No Total

45 5 50

90% 10% 100%

10% Yes No 90%

 90% of the total respondents use branded product.



Do you think companies investing huge money, for using celebrities help them in

increasing their total revenue?
No. of people Yes No Can't say Total 27 12 12 50 Result in % 54 24 24 100

24% Yes No 53% 23% Can't say

 More than half the surveyed population believes that a celebrity helps an organization in increasing its total revenue. 6. Does the celebrity helps in increasing the market share of the company‟s brand?
No. of people Usually true Usually not Can't say Total 18 9 23 50 Result in % 36% 18% 46% 100%


46% 18%


Usually true Usually not Can't say

 36% of people believe that celebrity doesn‟t help in increase market share, but 46% of them believe that celebrity mostly helps in increase market share of a brand.

7. Do you think, a presence of celebrity like Shahrukh Khan and Hrithik Roshan in an advertisement encourages you to buy a product?

No. of people Yes No Can't say Total 30 15 5 50

Result in % 60 30 10 100

10% Yes 30% 60% No Can't say

 More than 50% people believe that presence of celebrity like Shahrukh Khan and Hrithik Roshan in an advertisement encourages them to buy a product.


8. What do you think, do the celebrity themselves uses the product they themselves endorse?
No. of people Yes No Can't say Total 8 29 13 50 Result in % 16 58 26 100

16% 26% Yes No Can't say


 On the basis of survey, more than 50% of respondents don‟t believe that celebrity themselves uses the product they themselves endorse. 9. On a personal note what kind of celebrity does you like the most?

No. of people Cricketer Politician Film star Famous personalities Total 16 1 28 5 50

Result in % 32 2 56 10 100%



32% Cricketer Politician Film star Famous personalities 56% 2%

 More than 50% among the respondents agree that they like film stars as the product endorser that they use.

10. Importance for the consumer:-

No. of people Price of the product Quality of the product Value for the money Celebrity endorsement Total 6 7 32 5 50

Result in % 12 14 64 10 100


3% 13% Price Quality Value 69% Celebrity endorsement


 More than 60% people believe that value for the money is more important for them than the celebrity endorsement.

11. Do you think celebrity endorsement is an important thing in brand promotion?
No. of people Yes No Can't say Total 11 7 32 50 Result in % 22 14 64 100

22% Yes No 14% 64% Can't say

 More than 60% of the respondents are neither agree nor disagree that celebrity endorsement is an important thing in brand promotion.


12. Do you think celebrity endorsement is really effective in reaching its goal?

No. of people Yes No Can't say Total 17 9 24 50

Result in % 34% 18% 48% 100%

34% 48%

Yes No Can't say


 34% people believe that celebrity endorsement is effective, 18% are not agree and 48% can‟t about this.


Through analysis and research, this term paper brings forth the following insights:  Celebrity endorsements do work in the Indian scenario. The level and the magnitude

of the effect vary with the celebrity and the product category but most endorsements have a favourable impact.  The consumer looks for a variety of aspects from the endorsement like the credibility

and likeability of the endorser. Credibility also means the fit between the brand and the celebrity.   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 is at a bare minimum. The company in that case can heighten the advertising content because that grabs a special place in the mind space of the consumer.   It is not just the financial gains from the endorsements that matter to the celebrity.

They also look for the fit with the brand and what the endorsement might do to their image. Professional performance of the endorser is important in deciding the success of the

endorsement. However, the bad performance should be stretched so as to make sense to the audience.  More than the bad performance in the professional field, it is the association of the

celebrity with a controversy or ill-behaviour that causes negative impact to the endorsements. During the match fixing scandal in India, the commercials featuring Ajay Jadeja and Mohammed Azharuddin were all taken off air so that they did not have a negative effect on the brand.  The celebrities‟ accessibility, regional appeal factors, popularity, attractiveness, belief

system are some other important platforms, which are raised when we study the impact of celebrity endorsement on brands. Studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. Few celebrities have been more successful than those with almost parallel fame. So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as a assured strategic tool to win profits, market share, revenues, etc.


           www.thedayaftertomorrow.com www.synovate.com – 2003 www.indiantelevision.com www.magindia.com www.blonnet.com www.rediff.com – article by Country head, O&M India indiainfoline.com – article 'Celebrity Endorsements in brands. www.coolavenues.com http://pakistanmba.jimdo.com www.rediff.com – article by Country head, O&M India www.bu.edu/e.con/seminar/micro/pdffavcelebendorse.bu.pdf

        McCracken, Grant (1989), "Who is the Celebrity Endorser?" Journal of Consumer Research, 16 (December), 310-321 Erdogan (1999), "Celebrity Endorsement: A Literature Review", Journal of Marketing Research, 15, 291-314 Daneshvary, Rennae and R. Keith Schwer (2000), "The Association Endorsement and Consumers' Intention to Purchase," Journal of Consumer Marketing, 17 (3), 203-213 Friedman, Hershey H. and Linda Friedman (1979), "Endorser Effectiveness by Product Type," Journal of Advertising Research, 19 (5), 63-71 McCracken, Grant (1989), "Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process," Journal of Consumer Research, 16 (3), 310-321 Aaker, David A. (1996), Building Strong Brands. New York, NY: The Free Press Erdogan (1999), "Celebrity Endorsement: A Literature Review", Journal of Marketing Research, 15, 291-314 Dean (1999), "Brand Endorsement, popularity, and Event Sponsorship as advertising cues affecting consumer Pre purchase attitude", Journal of Advertising, Volume XXVIII, Number 3, 1-12


Tom, Gail, Rebecca Clark, Laura Elmer, Edward Greech, Joseph Maselli, Jr. and Harmona Sandhar (1992), “The use of created versus celebrity spokesperson in advertisements”, Journal of consumer Marketing, 9(4), 45-51

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Misra,S and S,. Beatty, “Celebrity spokesperson and Brand Congruence”. Journal of Business Research, 21 (1990) pp159-173

Hovland and Weiss, 1951; McGuire, 1969; Hass, 1981 Friedman, Termini and Washington, 1977 Clark, Robert C. and Horstman, Ignatius J. (2003) Celebrity Endorsents Goldsmith, Lafferty and Newell (2000), "The Impact of Corporate Credibility and Celebrity Credibility on Consumer Reaction to Advertisements and Brands", Journal of Advertising, Volume XXIX, number 3, 43-54

L. K. Marhur, I. Mathur and N. Rangan (1997) June, "The Wealth Effects Associated with a Celebrity Endorser: The Michael Jordan Phenomena", Journal of Advertising Research,

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B. Zafer Erdogan, Michael J. Baker and Stephen Tag (2001) June, "Selecting Celebrity Endorsers: The Practitioner's Perspective", Journal of Advertising Research, 39-48 Tripp, Jensen and Carlson (1994) March, "The Effect of Multiple Product Endorsements by Celebrities on Consumers' Attitude and Intentions", Journal of Advertisement Research, Vol 20, 535-547


QUESTIONNAIRE Dear Respondents, I, Bharat Bhushan, student of MBA Ist Semester, Department of management studies, Jainarayan Vyas University, JODHPUR, am conducting a survey on “Impact of celebrity endorsement on buying behaviour of customers”. For this purpose I need your cooperation in fulfilling this questionnaire. It will take few minutes of your precious time. It is make sure that information obtained is for general purpose only. 1) Name of the respondent……………………................ 2) What is your occupation?  Business Class  Service Class  Student  Others 3) What is your age?  18-25  26-32  32-39  More than 40 4) What is your gender?  Male  Female 5) Do you own a branded product?  Yes  No 6) If you wish to change your product then what will be the motivating factor for that?  Fewer prices  Various discounts and offers  Latest trends  Celebrity endorsing the product.

7) Do you think companies investing huge money, for using celebrities help them in increasing their total revenue?  Yes  No  Can‟t say 8) Does the celebrity helps in increasing the market share of the company‟s brand?  Usually true  Usually not  Can‟t say 9) Do you think, a presence of celebrity like Shahrukh Khan and Hrithik Roshan in an advertisement encourages you to buy a product?  Yes  No  Can‟t say 10) What do you think, do the celebrity themselves uses the product they themselves endorse?  Yes  No  Can‟t say 11) On a personal note what kind of celebrity does you like the most?  Cricketer  Politician  Film star  Famous personalities  What is the most important for you?  Price of the product.  Quality of the product.  Value for money  Celebrity endorsement



13) Do you think celebrity endorsement is an important thing in brand promotion?  Yes  No  Can‟t say 14) Do you think celebrity endorsement is really effective in reaching its goal?  Yes  No  Can‟t say

“Thanks for your valuable Contribution”