CELEBRITY ENDORSEMENTS AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR

(In context to India)

Amit Kumar Msc Management with Marketing, 2010 The Executive Business School,
Bournemouth University

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Acknowledgement
First of all, I would like to express my gratitude to Bournemouth University for
giving me an opportunity to pursue Masters in my field of studies. I am heartily
thankful to my supervisor, Dr. Lukman Aroean, whose encouragement, guidance and
support from the initial to the final level enabled me to develop an understanding
of the subject. Furthermore, I would like to thank all academics and administration
staff at Bournemouth University for their kind cooperation and efforts to assist us
in the every helpful way they can. I must admit that this year I had the best
studying experience and will always cherish this year of my academic life.

Finally, I thank my family: my parents, Mrs. Shail Kumar and Shri Ashok Kumar, for
giving me an opportunity to in the first place, for unconditional support and
encouragement to pursue my interests and progress in my further degree. My brother,
Vineet Kumar for his love and support.

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THE BUSINESS SCHOOL

PERMISSION TO PLACE COMPLETED RESEARCH PROJECT IN THE LIBRARY
Name (please print clearly): Amit Kumar

Programme: MSC MANAGEMENT WITH MARKETING

Student Reference Number: 4243123

Please sign one of the following two declarations.

1. I hereby give permission for my Research Project to be placed in the library for
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purposes. Signed …………………………………………………………. Title of Research Project: Celebrity
Endorsements and its Impact on Consumer Buying Behaviour

Submission Date: 1 June 2010

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RESEARCH PROJECT DECLARATION

I agree that, should the University wish to retain it for reference purposes, a
copy of my Research Project may be held by Bournemouth University normally for a
period of 3 academic years. I understand that once the retention period has expired
my Research Project will be destroyed. Confidentiality I confirm that this Research
Project does not contain information of a commercial or confidential nature or
include personal information other than that which would normally be in the public
domain unless the relevant permissions have been obtained. In particular any
information which identifies a particular individual‗s religious or political
beliefs, information relating to their health, ethnicity, criminal history or sex
life has been anonymised unless permission has been granted for its publication
from the person to whom it relates. Copyright The copyright for this Research
Project remains with me. Requests for Information I agree that this Research
Project may be made available as the result of a request for information under the
Freedom of Information Act. Signed: Name: Amit Kumar Date: 1 June 2010 Programme:
MSC Management with Marketing. Originality Declaration I declare that this Research
Project is all my own work and the sources of information and material I have used
(including the Internet) have been fully identified and properly acknowledged as
required in the guidelines given in the Programme Handbook which I have received.
Signed: Name: Amit Kumar Date: 1 June 2010

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Abstract
The practice of celebrity endorsements has proliferated over time. Now days it has
become a pervasive element of advertising industry especially in India. Celebrity
endorsement business has become a multi-million industry in India. Marketers use
celebrity endorsers to influence the purchase decision of consumers in order to
increase their sales and extend their market shares. This made the author curious
to explore the impact of celebrity endorsements on consumer buying behaviour. This
dissertation focuses on examining the perception of Indian consumers about
celebrity endorsements, examining the celebrity attributes likely to influence
consumer purchase intentions and finally the impact of celebrity endorsements on
their purchase intention. This project begins with the review of existing
literature available on celebrity endorsements, which provides an insight into the
research topic and clarifies many important aspects related to the subject. A
quantitative method is used for this research project to investigate the
perceptions of the consumer, attributes and its subsequent impact on purchase
intention. The data is collected through a questionnaire and later analysed using
the data analysis software program SPSS. It was proven in this research that
consumers find celebrity endorsements more attractive and influential as compared
to non-celebrity endorsements. Moreover, the tested attributes show positive
relationship with purchase intention. In other terms, celebrity attributes do
impact the purchase intention of consumers. Finally, the results of the study prove
that celebrity endorsements positively impact the purchase intention of the
consumers.

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Table of Contents
Acknowledgement ...................................................................
....................................................................... ii Abstract
...................................................................................
............................................................................ v List
of
Tables ............................................................................
........................................................................ ix List of
Figures ...........................................................................
....................................................................... xi

1 1.1

INTRODUCTION ......................................................................
............................................................. 1 Background to the
topic: An Insight to the Celebrity Endorsements ............................. 1
Research
Justification .....................................................................
...............................................2 Academic
Justification .....................................................................
.....................................2 Business
Justification .....................................................................
.......................................2 Personal
Justification .....................................................................
.......................................2 Research
Aim ...............................................................................
..................................................... 3 Research
Objectives ........................................................................
............................................... 3 Research
Questions .........................................................................
............................................... 3 Outline of the
Dissertation ......................................................................
.................................... 4 1.2.1 1.2.2 1.2.3 1.3 1.4 1.5 1.6 1.2

LITERATURE
REVIEW ............................................................................
........................................... 5 2.1 2.1.1 2.1.2 2.1.3 2.2 2.3 2.4 2.5
2.6 2.7 2.8 2.9 2.10 2.11 Concept and
Meaning............................................................................
........................................ 5
Celebrity .........................................................................
........................................................... 5 Celebrity
Endorser ..........................................................................
....................................... 5 Celebrity
Endorsement .......................................................................
..................................6 Celebrities as a form of Aspirational Reference
Group ........................................................ 7 Celebrity versus
Non-Celebrity
Endorsements .....................................................................
8 Celebrity Endorsement as a Marketing Communication
tool ...........................................9 Positive aspects of Celebrity
Endorsement .......................................................................
.... 10 Negative aspects of Celebrity
Endorsement .......................................................................
... 11 Multiple Celebrity
Endorsements ......................................................................
...................... 13 Consumer Buying
Behaviour..........................................................................
............................ 15 Types of Consumer Buying
Behaviour .........................................................................
........... 15 Consumer Buying Behaviour in
India .............................................................................
......... 17 Celebrity Endorsement
Effectiveness .....................................................................
................ 19 Source credibility
model .............................................................................
........................ 19

2.11.1

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2.11.2 2.11.3 2.11.4 2.12 2.13 2.14

Source attractiveness
model .............................................................................
................. 21 Product Match-up
model .............................................................................
..................... 22 Meaning transfer
model .............................................................................
........................ 24

Celebrity Endorsement – An Indian

Perspective ................................................................ 26
Theoretical
Framework .........................................................................
..................................... 29
Hypotheses ........................................................................
.....................................................33
Conclusion ........................................................................
............................................................. 34

2.13.1

METHODOLOGY .......................................................................
..........................................................35 3.1 3.2 3.3 3.4 3.5
3.6 3.7 3.7.1 3.7.2 3.7.3 3.7.4 3.7.5 3.8 3.8.1 3.8.2 3.9 3.10 3.11 3.12 Research
Philosophy ........................................................................
............................................35 Research
Approach ..........................................................................
............................................. 37 Quantitative Versus Qualitative
Research ..........................................................................
..38 Research
Purpose ...........................................................................
.............................................. 39 Research
Design.............................................................................
............................................... 39 Research
Strategy ..........................................................................
............................................... 40 Data
Collection ........................................................................
..................................................... 40 Secondary
Data ..............................................................................
........................................ 41 Primary
Data ..............................................................................
............................................ 41
Questionnaire .....................................................................
.................................................. 42 Questionnaire
Design ............................................................................
............................. 42 Pilot
Test ..............................................................................
.................................................. 43
Sampling ..........................................................................
............................................................... 43 Sampling
Technique .........................................................................
.................................. 45 Sampling
Size...............................................................................
......................................... 45 Data Quality
Issues ............................................................................
.......................................... 46 Data
Analysis ..........................................................................
....................................................... 47 Limitations of the
Research ..........................................................................
............................ 48 Methodology
Framework .........................................................................
................................. 49

ANALYSIS AND
FINDINGS ..........................................................................
................................... 50 4.1 4.1.1 4.2 Research Question
1: ................................................................................
................................... 50 Testing the
Hypothesis ........................................................................
.............................. 58 Research Question 2: Hypotheses
Testing ...........................................................................
59

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4.2.1 4.2.2 4.2.3 4.2.4 4.3 4.3.1

Degree of correspondence between

variables ............................................................. 59
Regression
Models ............................................................................
................................... 61
Summary ...........................................................................
..................................................... 70 Descriptive statistical
Analysis of
Attributes .............................................................. 73
Testing the
Hypothesis ........................................................................
.............................. 86

Research Question
3 .................................................................................
................................... 84

DISCUSSION ........................................................................
................................................................. 88 5.1 5.2 5.3
Current State of Consumer Perception about Celebrity
Endorsements ..................... 88 Relationship of Celebrity Attributes with
Purchase Intention ...................................... 89 Impact of Celebrity
Endorsements on Consumers Purchase Intention ....................... 92

CONCLUSION.........................................................................
............................................................. 94 6.1 6.2 6.3 6.4
Limitations of the
study .............................................................................
................................ 95 Theoretical
Implications ......................................................................
...................................... 96 Managerial
Implications ......................................................................
.......................................97 Further
Research ..........................................................................
.................................................97

REFERENCES ........................................................................
........................................................................ 98
APPENDICES ........................................................................
......................................................................... 111

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List of Tables
Table 1: Pros and Cons of Celebrity Endorsement Strategy Table 2: Examples of
Multiple Product Endorsements in India Table 3: Source Credibility Scale Table 4:
Models explaining Celebrity Endorsements Table 5: Frequency Table for
Attractiveness Table 6: Age * More attractive Cross-tabulation Table 7: Statistical
Analysis of Recognise and Recall rate Table 8: Recognise & Recall rate of celebrity
endorsed advertisements Table 9: Age * Recognise/Recall Cross-tabulation Table 10:
Descriptive Statistical Analysis of Influential Table 11: Summary of Influential
Table 12: Age * Influential Cross-tabulation Table 13: Correlation Matrix Table 14:
Descriptive Statistics of Attributes Table 15: Model Summary of Expertise Table 16:
Coefficients of Expertise Table 17: Model Summary of Trustworthiness Table 18:
Coefficients of Trustworthiness Table 19: Model Summary of Similarity Table 20:
Coefficients of Similarity Table 21: Model Summary of Familiarity Table 22:
Coefficients of Familiarity Table 23: Model Summary of Likeability Table 24:
Coefficients of Likeability Table 25: Model Summary of Matchup Table 26:
Coefficients of Matchup

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Table 27: Model Summary of Meaning Transfer Table 28: Coefficients of Meaning
Transfer Table 29: Descriptive Statistical Analysis of Expertise Table 30:
Expertise of Celebrity and Purchase Intention Table 31: Descriptive Statistical
Analysis of Trustworthiness Table 32: Trustworthiness of Celebrity and Purchase
Intention Table 33: Descriptive Statistical Analysis of Similarity Table 34:
Similarity of Celebrity and Purchase Intention Table 35: Descriptive Statistical
Analysis of Familiarity Table 36: Familiarity of Celebrity and Purchase Intention
Table 37: Descriptive Statistical Analysis of Likeability Table 38: Likeability of
Celebrity and Purchase Intention Table 39: Descriptive Statistical Analysis of
Matchup Table 40: Matchup of Celebrity and Purchase Intention Table 41: Descriptive
Statistical Analysis of Meaning Transfer Table 42: Meaning Transfer of Celebrity
and Purchase Intention Table 43: Descriptive Statistical Analysis of Each Attribute
Table 44: Reliability test for Purchase Intention Table 45: Statistical Analysis
―Purchase Intention 01‖ Table 46: Statistical Analysis ―Purchase Intention 02‖
Table 47: Statistical Analysis ―Purchase Intention 03‖ Table 48: Overall Purchase
Intention Table 49: Descriptive Statistics Overall Purchase Intention

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List of Figures
Figure 1: Classical Conditioning Paradigm in Marketing Communications Context
Figure 2: Meaning Movement and Endorsement Process Figure 3: Trend of Celebrity
Endorsements in India Figure 4: Broad Framework designed to Study Celebrity
Endorsements Figure 5: Theoretical Framework designed to Study Celebrity
Endorsements Figure 6: Types of Sampling Techniques Figure 7: Methodology framework
Figure 8: Attractiveness (Celebrity vs. Non-celebrity advertisements) Figure 9:
Attractiveness (Age group analysis) Figure 10: Attractiveness (Gender analysis)
Figure 11: Recognise and Recall rate of celebrity endorsed advertisements Figure
12: Age * Recognise/Recall rate of celebrity endorsements cross-tabulation Figure
13: Influential (Celebrity vs. Non-celebrity advertisements) Figure 14:
Age*Influential celebrity endorsements cross-tabulation Figure 15: Residual Plots
of Hypothesized Relationships Figure 16: Expertise of Celebrity and Purchase
Intention Figure 17: Trustworthiness of Celebrity and Purchase Intention Figure 18:
Similarity of Celebrity and Purchase Intention Figure 19: Familiarity of Celebrity
and Purchase Intention Figure 20: Likeability of Celebrity and Purchase Intention
Figure 21: Matchup of Celebrity and Purchase Intention Figure 22: Meaning Transfer
of Celebrity and Purchase Intention Figure 23: Graphical Representation of
Importance of Each Attribute Figure 24: Overall Purchase Intention of Consumers for
Celebrity Endorsements

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INTRODUCTION

This introductory chapter provides the reader with an insight into the topic of the
research area. The chapter begins with title of the research followed by a brief
background to the research topic with further emphasising on the aims and
objectives of the research project. Finally, it explains the overall structure of
the research project.

1.1 Background to the topic: An Insight to the Celebrity Endorsements

The use of advertising went through a major phase of change over the past 150
years, from classical to modern view. In the modern days, marketers are developing
strategies using various appeals including sexual, emotional, humour etc. (Belch
and Belch 2001). The motive behind formulating such strategies is to gain high
brand exposure, attention, interest, desire and action (Belch and Belch 2001). In
order to do this, marketers employ well known and famous personalities in other
word celebrities. As McCraken (1989) stated that celebrities tend to create greater
effect on the consumers‘ buying behaviour. McCraken (1989) further states that
celebrity endorsement advertising is a ubiquitous feature of modern marketing.
According to Silvera and Austad (2004) Celebrities are people who enjoy public
recognition among a large group of people and possess distinctive qualities like
attractiveness and trustworthiness. Many big brands have recognised the importance
of celebrity endorsements as marketing communication tool (Soderlund 2003).
Celebrity Endorsements is a billion dollar industry in today‘s era. (Kambitsis et
al, 2002). Marketers spend huge amount of money on celebrity endorsement contracts
annually (Katyal, 2007) it shows that celebrities play an important role in the
advertising industry. Recently, the famous golfer Tiger woods has refused a 75
million dollar endorsement offer from bookies Power Paddy saying ―the deal wasn‘t
lucrative enough‖. Reportedly, Woods earned around 110 million dollar through
endorsements, Nike being the largest contributor with the 30 million dollar
(Celebriscoop 2010). Considering the prices companies are willing to pay and the
effect it has on consumers buying behaviour, celebrity endorsements appears to be a
very popular advertising tool in the modern day marketing (McCraken 1989; Belch
2001; Soderlund 2003).

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1.2 Research Justification

1.2.1 Academic Justification
Over the past few decades, much research has already been done over the phenomena
of celebrity endorsements (Bailey 2007). Researchers in academic journals have
explored many new issues related to the celebrity endorsements for instance
negative publicity of celebrity, effectiveness of endorsements etc. Moreover, there
are many empirical studies already being conducted focussed on major markets like
United States, United Kingdom, and China etc. but as far as author‘s review and
knowledge none of the research is done in context to the Indian consumer market.
The main reason for choosing this topic is based on the fact that so far no study
has been conducted in order to understand the impact of celebrity endorsements on
consumer buying behaviour with reference to India. Academically, this research
project will be helpful in understanding the perception and attitude of Indian
consumers towards celebrity endorsements which may reveal some interesting insights
and directions for future research.

1.2.2 Business Justification

Celebrity endorsement has become a common practice in order to differentiate the
product from other competing brands in a highly competitive environment (Erdogan
1999). The final aim of every advertising strategy is to instigate the actual
behaviour of the targeted audience, whether purchase intention or actual
consumption (Sharma et al. 2008). If an advertising strategy fails to achieve the
same, the million dollars spent are not worth it. Indian consumer market is booming
at a great pace. According to a report by McKinsey Global Institute (MGI), India's
consumer market will be the fifth largest (from twelfth) in the world by 2025 which
is currently valued at US$ 511 billion. Additionally, consumers in India are
exposed to several new products every other day followed by marketers‘
differentiation, positioning techniques. Therefore it will be interesting to
investigate the impact of celebrity endorsements on consumers buying behaviour in
India. From a business perspective this research project would be useful in
understanding the attitude and perceptions of Indian consumers towards celebrity
endorsements.

1.2.3 Personal Justification

India is a country where celebrities are worshipped and possess demo-god status.
People have always idolised celluloid stars (Katyal, 2007). Marketers take
advantage of this opportunity to

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influence the customers emotionally and make them buy products. The author, in his
school days was under the same influence of celebrity magnetism. Later after
reading and studying marketing, the author came to know about the theoretical and
practical underpinnings of celebrity endorsements which increased author‘s
eagerness to towards the topic. Additionally, author believes that conducting this
research project will enhance the valuable personal knowledge about the subject and
experience for future career applications.

1.3 Research Aim

The aim of this research is to empirically investigate the impact of celebrity
endorsements on consumer buying behaviour (purchase intention) in context to India.

1.4 RESEARCH OBJECTIVES

OBJECTIVE 1 Explore and examine the current state of consumer’s perception about
celebrity endorsements. OBJECTIVE 2 Identify the key factors which may influence
consumer’s buying behaviour through celebrity endorsements. OBJECTIVE 3 Examine the
impact of celebrity endorsements on consumer’s purchase intentions.

1.5 Research Questions

Question 1: How do Indian consumers perceive Celebrity endorsed advertisements as
compared to non-celebrity advertisements? Question 2: Do the attributes from the
literature review impact the consumer purchase intentions to buy a product when
celebrities are used as endorsers? Question 3: How do celebrities impact the
consumer purchase intention when are used as endorsers?

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1.6 Outline of the Dissertation

The research projected is constructed in a logical order as follows: Chapter 1- The
first chapter gives a brief introduction of the research topic specifying the aims
and objectives to be achieved. Chapter 2- This chapter reviews the basics and
theories relating to the concept of celebrity endorsement and consumer buying
behaviour. It presents the critical evaluation of existing studies being done by
various authors on celebrity endorsements. The Research framework identifies the
hypotheses that are the basis for this research. Chapter 3- This chapter focuses on
methodological considerations for this research, explaining the reason explaining
each instrument adopted for instance research philosophy, research design, data
collection methods etc. Chapter 4 and 5- These chapters present the research
findings and statistical analysis of the primary data collected for the research
and discussion of result obtained. Chapter 6- This chapter concludes the research
giving recommendations for the celebrity endorsements and suggesting topics for the
future research. The key outcomes of the research are summarised in this chapter.

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LITERATURE REVIEW

This chapter aims to comprehensively review the existing research done in the area
of celebrity endorsements in order to get the better understanding of the research
subject. The content of the chapter includes concepts and meaning of celebrity,
celebrity endorser, celebrity endorsements, celebrity versus non-celebrity
endorsements, positive and negative aspects of celebrity endorsements, consumer
buying behaviour, models for celebrity endorsements, celebrity endorsement – an
Indian perspective and theoretical model for the research.

2.1 Concept and Meaning

2.1.1 Celebrity
"A sign of a celebrity is that his name is often worth more than his services.‖
Daniel J Boorstin Celebrities are people who enjoy public recognition and who often
have distinctive attributes such as attractiveness and trustworthiness. (McCracken
1989; Silvera and Austad 2004). The term ―celebrity‖ refers to an ‗individual who
is known to the public, such as actors, sport figures, entertainers‘ and others for
their achievements in their respective areas other than the product endorsed by
them (Friedman and Friedman, 1979:63). Boorstin in 1961 specified the most
important quality of being a celebrity i.e. not being forgotten and known by people
for their ―well-knowness‖. According to McCracken (1989), ―It can include people
from movies, television, sports, politics, business, artists and persons from the
military. Whereas, In this modern age of marketing, Celebrities may also be an
animated character like Fred Flintstone, or an animal (Miciak and Shanklin, 1994).

2.1.2 Celebrity Endorser

McCracken (1989) defined celebrity endorser as ―any individual who enjoys public
recognition and who uses this recognition on behalf of a consumer good by appearing
with it in an advertisement (p.310).‖ Kamins (1989), defined celebrity endorser as
―an individual who is known to the public for his or her achievements in areas
other than that of the product endorsed‖. While Stafford et al., 2003 gave a clear
definition by defining celebrity endorser as, ―a famous person who uses public
recognition to recommend or co-present with a product in an ad‖. Celebrities are
often hired by advertisers to lend their personality to a product or brand
(Kaikati, 1987). The use of celebrities has been widely used as it could provoke
attitudinal

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and emotional reactions (Kanungo and Pang, 1973) than a non-celebrity endorser
(Atkin & Block, 1983; Petty and Cacioppo 1983). Therefore celebrities who are
placed as models and are seen as in support of the product and / or its claim are
known as endorsers (Tellis, 1998). In order to be effective a celebrity endorser
should have the credibility to attract attention Miciak and Shanklin 1994) increase
awareness of the endorsed product (Wilson, 1997) and influence the purchase
decision of the targeted audience (Ohanian, 1991).

2.1.3 Celebrity Endorsement

Celebrity endorsements is been accepted to be a ―ubiquitous feature of modern day
marketing‖ (McCracken 1989). It has also been seen that one quarter of all
advertisement use/feature a celebrity to endorse a product or brand. This validates
the effectiveness of Celebrity endorsements as a means of persuasive communication.
It has the potential to enhance audience attentiveness, make the ad more memorable,
credible, and desirable and add glamour to the endorsed product (Spielman, 1981).
Early Research has found that ―celebrities are more effective than other types of
endorsers, such as ―the professional expert‖, ―the company manager‖, or ―the
typical consumer‖ (Friedman and Friedman, 1979). Using celebrity endorsers,
companies may easily crack into consumer‘s symbolic association to an aspirational
reference groups, as celebrity endorsers are perceived as dynamic, attractive and
likable (Assael, 1984; Atkins and Block, 1983; Kamins, 1990). The use of
celebrities in advertisements is not a new phenomenon (Kaikati, 1987). Celebrity
endorsement, as a marketing practice, has a very distinguished history. In the
eighteenth century, a famous potter Josiah Wedgwood pioneered in using celebrities
to his advantage. Once when Queen Charlotte began to use his products, Wedgwood
capitalised on his new status by referring himself as the ―Potter to Her Majesty‖
(Dukcevich, 2004). For instance one of the early examples involves Queen Victoria
associating with Cadbury Cocoa (Sherman, 1985). McCracken (1989) further
conceptualised Endorsement process in different endorser roles and endorsement
types. Celebrity Endorser can take the role as an expert, as a spokesperson
associated with a product, or as an aspirational figure with no particular
knowledge or relationship with, the product. There can be four types of
Endorsement; Explicit (―I endorse this product‖), Implicit (―I use this product‖),
Imperative (―You should use this product‖), or co-presentational mode (merely
appearing with the product)‖.

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2.2 Celebrities as a form of Aspirational Reference Group

From a theoretical perspective, Celebrities are classified in the category of
heroes as reference groups and opinion leaders. They are recognised as effective
endorsers due to their symbolic aspirational reference group associations (Assael
1984, Solomon and Assael 1987). Celebrities as heroes have the potential to
influence the cognitive processes of consumers (Wilkes and Valencia 1989). The
relationship between values and heroes can be bidirectional. Celebrities can shape
and refine existing cultural meaning and encourage the reform of cultural values
and categories (Biswas et al. 2009). Therefore by using celebrity endorsers,
companies may tap into consumer‘s symbolic association to an aspirational reference
groups, as they are perceived as dynamic, attractive and likable (Assael, 1984;
Atkins and Block, 1983; Kamins, 1990). Celebrities, particularly movie stars, TV
personalities, popular entertainers and sports legends, provide a very common type
of reference group appeal (Schiffman and Kanuk 2004). Consumers tend to form an
attachment to any object that strengthens one‘s self identity or desired image,
renders feelings of connectedness to a group or a personality and perhaps the most
common example of this form are the celebrities (O‘Mahony and Meenaghan, 1998). The
power of the celebrities lies in their ability to influence the consumers, even
though they are physically and socially far from a common consumer (Choi & Rifon,
2007). Based on the meaning transfer model by McCracken‘s (1989) that brands
endorsed by celebrities are a source of symbolic brand meaning. It can be said that
consumers connect the symbolism associated with the celebrity and the brands they
endorse, transferring these meanings from the brand to themselves by actively using
those brands (Escalas and Bettman 2005). Consumers are likely to accept meanings
from the brands endorsed by a celebrity whom they perceive as similar to themselves
or whom they aspire to be like. For instance, a consumer may consider himself to be
athletic and fashionable, like David Beckham, who currently endorses many brands,
including Adidas and Police. Due to his aspiration to look like Beckham he may
choose to buy an Adidas gear and wear Police watches. As a result, he may form a
self-brand connection to these brands endorsed by Beckham (Schiffman and Kanuk
2004).

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2.3 Celebrity versus Non-Celebrity Endorsements

According to Seno & Lukas (2007), Celebrities are more effective than other type of
endorsers such as the company manager, typical consumer and the professional expert
etc. Companies possess great control over created spokespersons since they develop
these characters. They can build characters which are consistent with their brands
and target audiences, and ensure that these characters are exclusively endorsing
only one particular product (Tom, et al. 1992). On the contrary, companies hold
limited control over the celebrity endorsers, since they have created their public
persona themselves over the years. Previous research on celebrity endorsement
reveals that celebrity endorsers produced more positive attitudes towards
advertising and greater purchase intentions than a non-celebrity endorser (Atkin
and Block 1983; Petty et al. 1983; Ohanian 1991). On the contrary, Mehta (1994)
argued that there were no statistically significant differences in attitudes
towards advertising, brand and purchase intention on endorsed brand between
celebrity and non-celebrity endorsements. However, differences were found in
cognitive responses generated by respondents. In a research Tom et al.'s (1992)
proved that created endorsers are more effective than celebrity endorsers on the
classical conditioning paradigm. According to this paradigm, (see Figure-1),
consumers learn the association between an unconditional stimulus (celebrity
endorser) and a conditional stimulus (product) through repeated exposure. The
association is much stronger with original material (created spokesperson) than
with popular material because the popular material (celebrity endorser) is not just
linked to a promoted product but with many other things as well. In other words,
the bond between the created celebrity and the product is strong because it is
unique and exclusively endorsing only one product. Whereas, the bond between the
celebrity endorser and product is weak due to its multiple
endorsements/associations (Erdogan 1999).

Figure 1: Classical Conditioning Paradigm in Marketing Communications Context

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Agrawal and Kamakura (1995) and Mathur, Mathur and Rangan (1997) conducted two
different studies to assess the economic worth of celebrity endorsement contracts
on the expected profitability of a firm. The authors used Event Study Methodology,
which is used to identify the valuation effects of marketing decisions (Mathur, et
al. 1997). Surprisingly, outcomes from both of the studies emphasised on the
effectiveness of use of celebrity endorsers (Erdogan 1999).

2.4 Celebrity Endorsement as a Marketing Communication tool

From marketing communication perspective, it has become more important for firms to
design strategies which provide competitive differential advantage to its products
and services. It attempts to create positive effects in the mind of consumers. In
order to achieve this, Celebrity endorsement is a commonly used marketing
communication strategy (Erdogan, 1999). Companies spend large amount of money to
endorse their brands through these celebrities. These celebrity endorsers are
perceived and gifted with dynamic, attractive and likeable qualities (Atkin and
Block 1983) and companies try to align these qualities to their products through
marketing communication strategies. Many researchers believe that an advertisement
featuring a celebrity delivers a higher degree of appeal, attention, recall rate
and possibly purchase compared to the ads without celebrities (Cooper, 1984; Dean
and Biswas, 2001) and thereby contributing substantial positive impact on financial
returns for the companies (Farrell et al. 2000; Endorgan, 2001).. There is much
research being done on celebrity endorsers both in the academic literature
(Endorgan, 2001; Atkins and Block, 1983; Friedman et al., 1977) as well as trade
journals (Anonymous, 1989, 1996). Most of the research revealed the efficiency of
celebrity endorsements (Cooper, 1984; Dean and Biswas, 2001, Atkins and Block,
1983; Friedman et al., 1977) but in some cases, celebrity endorsements just don‘t
work everytime (Misra and Beatty, 1990). In fact, many commercials using such
celebrity endorsers do not live up to the advertisers‘ expectations (Miciak and
Shanklin, 1994). Initially, implementing this strategy came out to be a no-
risk/all-gain or win-win situation, but like another marketing communication
strategy, there are potential hazards involved too. There are various potential
risks also involved while implementing this strategy which can also lead to severe
results. In other words, celebrity endorsement strategy can be a two-edged

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sword, which may create and destroy a brand. Therefore, we will explore the
positive and negative aspects of celebrity endorsement.

Table 1: Pros and Cons of Celebrity Endorsement Strategy (Source: Erdogan 1999)

2.5 Positive aspects of Celebrity Endorsement

The increasing competition between firms in order to attract more consumers towards
their products has encouraged marketers to use celebrities to endorse their
products. Moreover, recent technological advances in the media such as DTH, video
control systems, cable and satellite television has increased consumer power over
programmed advertisement and made advertising more challenging (Croft et al. 1999).
It is also perceived that the featuring a renowned celebrity helps in solving the
problem of over communication that is becoming more and more prevalent these days
(Kulkarni & Gaulakar, 2005). Marketers to ease this threat and attract more
consumer attention towards their products and advertisements use celebrity
endorsement strategy. Due their well knowness, celebrities help advertisements to
stand out from the surrounding clutter by appearing in them, increasing the
communicative ability by cutting through excess noise in a communication process
(Sherman 1985). Hiring a famous celebrity as their brand endorser may also help
improving the image for a tarnished company. Celebrity Endorsement may also help in
restoring or polishing a company‘s image (Erdogan, 1999).

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For most of the multi-national companies while expanding to different countries may
face some issues like cultural 'roadblocks' such as time, space, language,
relationships, power, risk masculinity, femininity and many others (Mooij 1994;
Hofstede 1984). Celebrity endorsements can be a powerful device to enter foreign
markets. Hiring a world famous celebrity or a celebrity from the expanding country
may help companies to overcome many such issues. For Instance, Pepsi Co
Intemational increased its market share in India by Endorsing through famous
celebrities and crickets such as Shahrukh Khan, MS Dhoni, Kareena Kapoor etc. It is
been experienced that the products endorsed by celebrities help them to standout
and take more notice while shopping due to their improved level of product recall
(Bowman 2002). Advertisements featuring a celebrity make a strong impact on the
learning style and memory of a consumer which is an important aspect of marketing
communication success. Celebrities often make the ad more memorable in the mind of
the consumer even if there is no immediate need of the advertised product.
Marketers use this advantage of information storage in the minds of the consumers
which can be readily retrieved at the time of shopping or when the need arises
(Schultz & Barnes, 1995). All these arguments lead to the conclusion that celebrity
endorsements likely to have a positive effect on consumer buying behaviour
(Goldsmith, Lafferty and Newell 2000; Mathur, Mathur & Rangan 1997)

2.6 Negative aspects of Celebrity Endorsement

Despite the various benefits of celebrity endorsements, there are still many
potential risks involved in using celebrities to endorse their products as a part
of a marketing communication strategy for a company. Negative information and
publicity concerning the celebrity is one of the major risks associated with the
celebrity endorsement. There can be other factors as well which may lead to serious
consequences for instance suddenly changed image, drop in popularity, moral issues,
losing credibility by over endorsing, or overshadow endorsed products or vampire
effect (Cooper 1984; Kaikati 1987). Negative information about a celebrity endorser
not only impacts consumers' perception about the celebrity, but also the endorsed
product (Klebba and Unger 1982; Till and Shimp 1995) and may also ruin the brand
reputation (Till 1996). In fact many companies have paid a very big price over the
celebrity‘s misdeeds. For instance PepsiCo suffered with three stained

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celebrities - Mike Tyson, Madonna, and Michael Jackson (Katyal 2007). Companies
have faced serious embarrassment when their spokesperson or celebrity endorsers
were deeply involved in a controversy (Erdogan 1999). Sometimes in an
advertisement, consumers fail to focus on the product being endorsed due to the
glamour and popularity of the celebrity, hence fails to promote the brand (Rossiter
and Fercy 1987). As Cooper (1984) said "the product not the celebrity must be the
star." Overshadowing or commonly termed as the ‗vampire effect‘ occurs ‗‘when the
celebrity endorser occurs in the presence of multiple other stimuli which all
competes to form a link with the celebrity endorser.‖ (Till 1996). It leads to lack
of clarity for the consumer. (Evans 1998). The major issue arises out of this
problem is that consumers fail to notice the brand being endorsed because they are
more focussed over the celebrity (Erdogan 1999). Overexposure is a common issue
among highly demanded and well recognized celebrity endorsers because every major
company wants to hire them to endorse their brands which ultimately leads to making
the consumer more confused and unable to recall correctly as to which brand the
celebrity stands for. (Tripp et.al. 1994). Another important issue concerning the
celebrity endorsement is that sometimes most famous celebrities often indulge in
endorsing much different type of products and services just for the sake of their
greed for money. For example Shahrukh khan endorses more than 20 different brands
from hair oil to automobiles. Solomon et al. (2002) referred this as the ―hired
gun‖ problem, where the spokesperson is perceived as endorsing the product only for
the sake of money. If a celebrity lends his image to various brands by appearing in
advertisements it also has less impact on the consumers mind and the message being
delivered since the relationship between the celebrity and the endorsed brand is
not distinctive (Mowen and Brown 1981). This may not also disappoint the celebrity
fans (Graham 1989) but also make the consumers aware of the real fact of
endorsements that celebrities are endorsing the products just for the huge amount
of money they get and has nothing to do with the product attributes or product
being endorsed (Cooper 1984; Tripp, et al. 1994). Many researchers have also
proposed that negative information about a celebrity not only influences consumers'
perception for the celebrity, but also the product endorsed by him (Klebba and
Unger 1982; Till and Shimp 1995).

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There are some other new limitations being faced these days called Celebrity Trap,
Celebrity Credibility and Celebrity Clutter. Celebrity trap is when it becomes
difficult for marketers to separate the role of the message and the role of the
celebrity in selling the brand and when celebrity becomes an addiction for the
marketing team. It becomes more and more difficult to find the substitute.
Celebrity credibility has become questionable these days. Consumers have now become
aware of the fact that celebrities are endorsing brands just for the sake of money.
The credibility which celebrities used to possess in the past is bound to decrease
if a celebrity begins to appear and endorses a brand in every possible category
(Patel 2009). Celebrity Clutter is when each celebrity endorses multiple products
and multi-brands in a category, make the customer more confused. It make consumer
to make comparisons such as ‗whether this celebrity is bigger or that one‘ to make
product choices. — Pepsi is endorsed by Shahrukh Khan and Coca Cola by Amir Khan.
Celebrity endorsers have now become a liability to the brand they endorse (Till and
Shimp,1998) as there are decreasing returns associated with celebrities (Agrawal
and Kamakura 1995). Some researchers also referred celebrities as a ‗puppet‘ in the
hands of marketers implying that they perceive the celebrities to be fake and
lying, while endorsing certain brands (Temperley & Tangen, 2006).

2.7 Multiple Celebrity Endorsements

Hsu and McDonald (2002) defined multiple celebrity endorsement as the use of two or
more celebrities in an advertising campaign. According to him, multiple celebrity
endorsement can further be classified under two different parts based on how
celebrities are featured in ads. First scenario is where two or more celebrities
appear together in an advertisement to endorse a product. Secondly, different
celebrities appear in a series of advertisement separately to endorse the same
product. Multiple celebrity endorsement is not a new phenomenon for marketers in
the advertising industry. Some of the big brands include Nike, Adidas and American
Express. The milk mustache campaign is another major example featuring than 100
celebrities to promote milk consumption since 1995 (Hsu and McDonald 2002). In
context to India, For instance, Pepsi has been endorsed by Sachin Tendulkar, Aamir
Khan, Amitabh Bachchan, Rahul Dravid, Shahid kapoor, kareena kapoor, Ranbir Kapoor,
Deepika Padukone etc (Khatri,2006). According to Hsu and McDonald (2002) p.25,
"Multiple celebrity endorsement advertising may help the advertiser to build a
sense of consensus, avoid audience boredom and appeal to multiple audiences".

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Erdogan and Baker (1999) in their research argued that it is useful for the
marketers to use multiple celebrities for endorsing a particular brand because it
can reach out and appeal to its entire target audience. However, the use of
multiple celebrities might create a confusion about the brand‘s identity in the
consumers mind and therefore it should be assured that ―each and every celebrity
possesses compatible meanings that are sought for brands‖ (Erdogan and Baker, 1999
p. 13). For instance L‘Oreal endorses its product line according to the celebrity
attributes and the meanings associated with them (Redenbach, 2005). The greatest
fear for marketers while using multiple celebrities is that today consumers are
more aware, educated and knowledgeable about the use of celebrity endorsements. It
may lead them to think that celebrities are endorsing the brands just for the sake
of money and doesn‘t really care about the product, which might negatively affect
the consumers buying behaviour (Belch and Belch, 2001). In a research by Redenbach
(2005) argued that endorsing four different brands/products influences the
celebrity‘s trustworthiness, expertise and likeability. Because the celebrity
instead of focusing on one brand, endorses multiple brands and which eventually
lacks distinctiveness (Redenbach, 2005). There is also a possibility that using so
many different celebrities might overshadow the brand and lead to ―Vampire effect‖.
People might just remember the celebrities but not the brand/product being

endorsed/advertised (Hsu and McDonald, 2002).

Table 2: Examples of Multiple Product Endorsements in India

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2.8 Consumer Buying Behaviour

In today‘s dynamic and competitive environment, customers are continuously exposed
to various different brands through different marketing strategies. Consumer
behaviour is an important and complex area for marketers as different people have
different needs. As stated by Lancaster et al. (2005) that satisfaction of consumer
needs is the ultimate goal for a business; thus the marketer‘s job is to accurately
identify the customer needs and accordingly develop product that satisfies their
wants. Therefore, it is very critical for marketers to have a proper understanding
of consumer buying behaviour. Perner (2009) defined consumer behaviour as "The
study of individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the consumer and
society." According to Perner (2009) knowledge of consumer buying behaviour helps
marketers in developing their marketing strategies by understanding the psychology
of the consumers as how a) They think, feel, differentiate, and select between
different brands or products. b) How the consumer is influenced by his or her
environment (e.g., culture, family, signs, media); c) The behaviour of consumers
while shopping or making purchase decisions; d) How consumer motivation and
decision strategies differ between products that differ in their level of
importance; and e) How marketers can adapt and improve their marketing campaigns
and strategies to reach the consumer more effectively. Furthermore, it is not only
important to identify and satisfy the customers need, but it is also critical to
know that as to why customer needs that? It gives marketers a better understanding
of consumer behaviour which ultimately helps them in satisfying customer needs
efficiently and increasing customer loyalty towards their products and services
(Zeithami 1985).

2.9 Types of Consumer Buying Behaviour

According to Assael (1981), There are there are four type of consumer buying
behaviours that can affect the purchase decision making of a consumer based on the
level of consumerproduct involvement, interest in a product, situation and
difference between the products available. The four type of models are explained as
under:

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Complex buying behaviour: It usually takes place when the customer is highly
involved
in the product purchase decision. The high product involvement occurs when product
to be bought is expensive, infrequently bought, and highly expressive. Since, these
types of products are not bought frequently the consumer doesn‘t know much about
the products and observes substantial differences among the brands available for
instance buying a luxury sedan. Consumers make this type of buying decisions very
carefully after collecting a lot of information about the product features, quality
and performance. According to Assael (1981), Consumers tend to experience cognitive
dissonance while making such complex product decisions due to increased risk
perception in this type of buying behaviour. There are certain risks also involved
while making such decisions for example high may result in monetary loss, highly
expressive product nature may lead to psycho-social loss and lack of product
knowledge will result in increased uncertainty. From a marketing perspective,
marketers need to make sure that they use the effective differentiation strategies
to stand out the product from other brands available. And also, try to educate the
customers about the importance, application and features of the product offered.

Dissonance-reducing buying behaviour: It occurs when the buyer is highly involved

with the product purchase and observes little difference among the options
available. After buying the product, the consumer tends to gather the favourable
information about the purchased product that assures and validates his product
purchase decision. By doing this the customer tries to reduce the dissonance or
losses involved in the purchase. This type of buying behaviour involves
establishment of trust, belief and attitude towards a brand. However the customer
may also end up with time loss, or more likely, psychological loss and social loss.
It happens due to the difference between actual purchase performance and expected
purchase performance of the product.

Habitual buying behaviour: In occurs when the consumer buy the same product on
regular basis over a period of time. Under habitual buying behaviour consumer –
product involvement is low and there is little difference between the brands
available, for instance buying salt, sugar etc. The consumers buy these products
out of their habit or due to their trust or brand loyalty. According to Scott
(2007) consumers don‘t go through the process of belief, attitude and purchase
decision nor look for deep information and compare the available products. Consumer
buy the brands they have used and aware of.

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However, It is interesting to see marketers constantly trying to move these type of

product especially (FMCG products) from a low involvement to a higher involvement
status by differentiating them on various bases like health, safety etc. . For
instance marketers are involved in developing ―low calorie sugar‖ ―cholesterol free
oil‖ etc. and selling them at higher prices.

Variety seeking behaviour: This type of consumer behaviour originates if the

customer is
not happy with its earlier product purchase or out of the boredom. It specially
happens with the consumers who like to shop around and try-out with different type
of products. In this buying behaviour consumer–product involvement is low but the
differences among the brands are significant. These types of consumers change their
brand frequently, not due to dissatisfaction, but out of boredom. Variety seeking
behaviour is identified as a key determinant factor for brand switching in consumer
product category (Scott 2007). According to Assael (1981) consumers having variety
seeking consumer behaviour purchase the brands which have higher degrees of
perceived risk associated with them and are generally not perceived as brand loyal.

2.10 Consumer Buying Behaviour in India

Since, India‘s economic liberalization policies were introduced in 1991; Eliminated
import licensing restrictions and reduced tariffs has led many foreign companies to
enter the Indian market. India has always been a lucrative and large market for US
brands and advertising (Bellman 2007). One of the most challenging concepts in the
marketing is to deal with understanding the consumer behaviour. ―Consumer behaviour
is affected by a lot of variables, ranging from personal motivations, needs,
attitudes and values, personality characteristics, socio-economic and cultural
background, age, sex, professional status to social influences of various kinds
exerted by family, friends, colleagues and society as a whole‖ (Shukla and Devi
2010). The study on Indian consumer behaviour has helped marketers in formulating
and implementing strategies to reach the Indian consumers effectively. India is a
huge country comprising 28 states and population over one billion people. From the
market perspective, Indian consumer market is divided under various segments based
on class, status, and income of consumers. Three-fourths of India‘s population
lives in rural areas, contributing around one-third of the

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national income. Hence, the recent emergence and development of the rural market is
an opportunity for marketers in India (Matrade 2005). There has been a drastic
change noticed in Indian consumer behaviour to what it used to be few decades back.
Today Indian consumer wants to lead a life full of luxury and comfort. Indian
consumers don‘t just want the availability of products; they also want better
service and ambience. Purchasing power of people in India is rising very sharply.
As a result, the market for luxury products in India is also climbing at a
surprising rate (Shukla and Devi 2010). The Indian consumers are noted for the high
degree of value and family orientation (Hofstede 1980). This value orientation has
labelled Indians as one of the most sensitive consumers in the world. Even, big
brands in India design a unique pricing strategy in order to grab a share of the
Indian market. This family orientation extends not only to family but to friends as
well and also influences the decision making. It is also been noticed that brands
those tend to support family values are popular and easily accepted in the Indian
market. Due its culture, Indian consumers possess high priority for values of
nurturing, care and affection (Matrade 2005). Hence, people easily get influenced
by the brands communicating through the feelings and emotions. In a study by
Hofstede (1980), India has a high power distance (77) as compared to United States
(40) and United Kingdom (35). Indian consumers strictly follow their culture,
tradition and values, as a result foreign companies are forced to give an Indian
touch to their products and services offered in India. For instance McDonalds,
Pizza Hut, Pepsi, Coca Cola and many other brands changed their offerings in order
to expand in India (Shukla and Devi 2010). As a result of the increasing literacy
rate and increasing western exposure through satellite television, fashion
magazines and newspapers, there is a significant increase in consumer awareness.
This awareness has made the Indian consumers more selective for the quality of the
products/services by shopping in retail supermarkets Big Bazaar etc. The consumer
tends to purchase from a place where his/her feedback is more valued. The Indian
consumers are price sensitive and prefer to buy value for money products (Matrade
2005). Indian consumers consider price as an indicator for quality of a product as
they feel that the product is expensive due to its high quality. It‘s also been
noticed that Indian consumer buying behaviour is influenced by freebies. People
tend to buy the products if there is something given for free along with it
(Matrade 2005).

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Matrade (2005) divided Indian consumers in three different segments i.e. The
Socialites, The Conservatives and the Working women. Socialites are the people
belonging to the upper class of the society. They prefer to shop in expensive
specialty stores, and spending a good amount of money on leading a luxurious life.
They always try to differentiate themselves from others by purchasing expensive and
exclusive products. Socialites are observed to be very brand insistent and would
only opt for the best available in the market irrespective of money. On the
contrary, The conservatives are referred to the middle class people. The
conservative segment is said to be the true reflection of the Indian culture and
society. Middle class people are traditional and thoughtful in their towards their
purchase decisions. They spend more time with family and focus more on savings than
spending. They are slow decision makers because they refer to a lot of sources
before making any purchase and always look for durability and functionality of the
product. The working woman segment saw a tremendous growth in the late nineties.
They are independent and not bound to anything monetary wise. This segment has been
the target for the marketers. Working women have their own diverse perceptions in
purchase decision making and factors those appeal to them. Today, Indian market has
transformed from a seller‘s market to buyer‘s market. The increased consumer power
has fierce the competition in the market. This has led to the price war and has
forced the companies to maintain product quality to sustain in the highly
competitive market like India.

2.11 Celebrity Endorsement Effectiveness

Models for explaining celebrity endorsement effectiveness

2.11.1 Source credibility model

Source credibility model was first proposed by Hovland and his colleagues. ―Source
Credibility‖ in a broad sense, refers to a communicator‘s positive characteristics
that affect the receiver‘s acceptance of a message‖ (Ohanian 1990, p. 41) and based
on the research in social psychology (Hovland et al. 1953). The model suggests that
the effectiveness of a message depends on the perceived level of expertise and
trustworthiness of an endorser (Hovland, et al. 1953; Ohanian 1991; Dholakia and
Stemthai 1977). According to Kelman (1961), Exchange of information through a
credible source (eg. celebrity) has the potential to influence beliefs, opinions,
attitudes and/or behaviour through a process called intemalisation. Internalisation
occurs when source influence the receiver and is accepted by

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in

terms

of

their

personal

attitude

and

value

structures

(Erdogan,

1999).

Table 3: Source Credibility Scale Ohanian (1990) defined trustworthiness as "the

listener's degree of confidence in, and level of acceptance of, the speaker and the
message." Trustworthiness of an endorser is perceptual and depends on the target
audience. It refers to the honesty, integrity and believability of an endorser.
Marketers take the advantage of these set of values by employing celebrities those
are most regarded as trustworthy, honest believable and dependable among their fans
and people (Shimp 1997). Based on an experiment conducted by Miller and Baseheart
(1969) it was found out that if the perceived trustworthiness of the source is
high; attitude change is more likely to occur. Expertise can be defined as the
perceived ability of an endorser to make or provide valid assertions. It includes
the knowledge, experience and skills developed by the endorser while working in the
same field. Some authors suggest that it is not important for an endorser to be an
Expert; but it all depends how audience perceive him (Hovland, et al. 1953: Ohanian
1991). Ohanian (1990) argued that the perceived expertise of celebrity endorsers is
more important than their attractiveness and trustworthiness in influencing
purchase intentions. Expert celebrities are found to be more persuasive (Aaker and
Myers 1987) and may influence the consumer buying decision (Ohanian 1991). Speck.
Schumann and Thompson (1988) found that expert celebrities produce higher rate of
recall of product information than non-expert celebrities (Erdogan 1999). The
findings in the source credibility research are ambiguous. It refers endorsement
process as uni-dimensional because it is still uncertain to say what factors
construct the model and what factors are more important than others in different
situations. Although the study has

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proved to have a significant and direct effect on attitudes and behavioural

intentions, it may help marketers in selecting right endorsers however it is not
the only factor that should be considered in selecting celebrity endorsers
(Erdogan, 1999).

2.11.2 Source attractiveness model

―Beauty is a greater recommendation than any letter of introduction‖ – Aristotle As
Patzer (1985) stated that "physical attractiveness is an informational cue involves
effects that are subtle, pervasive, and inescapable‖ He advocated the use of
attractive endorsers than average looking endorsers. According to him people try to
increase their attractiveness and react positively to the endorsers who look like
them (Erdogan 1999). Sometimes people tend to think that attractive people are much
smarter and hence excel in other areas as well. This is also called as the ―halo
effect‖. Source Attractiveness Model is considered to be a component of the ―source
valance‖ model (McGuire 1985) and based on the research in social psychology
(McCracken 1989). The source attractiveness model basically concentrates on four
key areas; namely ―familiarity‖ (knowledge of source), ―likeability‖ (affection for
source based on his/her physical appearance or behaviour), ―similarity‖
(resemblance between the source and the respondent), and ―attractiveness‖
(McCracken 1989 p. 311). It suggests that the effectiveness of a messag e depends
on source‘s familiarity, likability, similarity, and attractiveness to the receiver
of the message (Ohanian 1990). Marketers choose celebrity endorsers on the basis of
their physical attractiveness to capitalise on their both attributes i.e. celebrity
status and physical appeal (Singer 1983). Print advertisements portray the
importance of physical attractiveness. Many researchers have found that attractive
people are more effective that unattractive people at persuasion, changing beliefs
(Baker and Churchill 1977; Chaiken 1979; Debevec and Keman 1984) and triggering
purchase intentions (Friedman et al. 1976; Petty and Cacioppo 1980). Similarity can
be defined as the perceived resemblance between the source and the respondent,
familiarity as knowness of about the source through experience, and likability as
the level of fondness, care and affection for the source in the respondent due to
the source‘s physical attributes and behaviour. ―Attractiveness‖ of the source
doesn‘t only arises due to the physical attributes, It may also include the various
other characteristics like intellectual skill, lifestyle etc. (Erdogan 1999).

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Cohen and Golden (1972) applied this model in advertising suggested that the
―physical attractiveness‖ of source decides the effectiveness of persuasive
communication through a process called identification. It happens when the receiver
accepts the information from an attractive source as a wish to be identified with
endorser (Erdogan 1999). In further research about gender interaction between
source and respondent, it was found out that the source has a greater impact of
persuasion and intention to buy on the respondent of opposite sex. Debevec and
Kernan (1984) found that attractive female models trigger more positive attitude
and purchase intention than their male counterparts across both sexes especially
among males. Whereas, Caballero et al. (1989) opposed the statement by arguing that
source and respondent of the same sex lead to greater intentions to purchase, males
show greater purchase intention from male endorsers and vice versa. On the other
hand Petroshius and Crocker (1989) found that source‘s gender had no impact on
respondent‘s attitudes towards advertisements or on purchase intentions either. The
academic findings regarding gender or cross gender interactions between source and
respondent are superficious and doesn‘t provide any guidelines to marketers
(Erdogan 1999). The above arguments lead to the conclusion that attractive
celebrity endorsers may enhance the attitude towards a brand but not necessarily
result into actual behaviour, cognitive attitudes and purchase intention.

2.11.3 Product Match-up model

―Celebrities are an unnecessary risk unless they are very logically related to
products‖ Watkins (1989) The match-up hypothesis suggests that the effectiveness of
an advertisement depends on the existence of a perceived 'fit' between the
endorsing celebrity and the brand endorsed by him (Till and Busler 1998). The
Product Match-up model suggests that the ―Celebrity‖ and ―Product‖ features should
complement each other for effective advertising (Kamins 1990). The match between
the product and celebrity depends on the common attributes between product features
and celebrity image (Misra and Beatty 1990). Advertising through a celebrity with
relatively high product compatibleness leads to effective advertising as compared
to an advertisement featuring less compatible celebrity (Kamins and Gupta 1994;
Erdogan 1999). If the qualities of a celebrity match up with the brand endorsed by
him, it may also increase the celebrity believability and attractiveness among the
targeted audience

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(Kamins and Gupta 1994). Ohanian (1991) supported the argument by stating that it
is critical to employ celebrities who directly resemble to the brand and are
experts in their field. Bertrand (1992) argued that if a company can successfully
connect a link between its product and celebrity image or the field celebrity
specialises in, then it can bring fame and success to both. Previous research on
the subject states that customers also expect the compatibleness between the
endorsed product and the celebrity. In other words Customers make a perceived image
about the product by comparing the qualities of the product and celebrity (Ohanian
1991; Callcoat and Phillips 1996; O'Mahony and Meenaghan 1997). On the other hand
if there is not congruence between the endorsed product and the celebrity, it might
lead people to a conclusion that the celebrity is faking it since he is nicely paid
to endorse the brand (Erdogan 1999). From the above arguments it can be inferred
that congruence between the celebrity and brand is required for effective
advertising. Alternatively, if the endorsing celebrity and the endorsed brand have
nothing in common it might lead to ―Vampire effect‖ where celebrity overshadow the
endorsed product and the targeted audience only remembers the celebrity not the
product (Evans 1988). The product match-up model suggests that attractive
celebrities especially attractive female celebrities are more effective at
endorsing beauty products, the products used to enhance ones attractiveness (Kamins
1990). For instance, Aishwarya Rai Bachhan is a renowned celebrity endorsing
L'Oréal beauty products and Sachin Tendulkar, the famous cricketer endorsing adidas
products in India. As Friedman and Friedman (1978) and Atkin and Block (1983) in
their research argued that that the use celebrity endorsers is suitable where
product purchases involve high social and psychological risk. Supporting the
argument, Packard (1957) proposed that celebrity endorsement strategy is more
effective for luxury products positioned and sold in the niche market segment
because the featured celebrities are people from the high status and therefore it
becomes easy for marketers to attract consumers to buy their products. Callcoat and
Phillips (1996) opposed the argument by saying that consumers are generally
influenced by celebrities if products are inexpensive and low involving. After
considering the findings and opinions, it becomes obvious that the Match-up between
the celebrity and the endorsed brand is important in order to attract the targeted
audience and to make the message more effective.

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2.11.4 Meaning transfer model

According to McCraken (1989), the previous source models discussed above are not
capable of capture the success factors of the endorsement process. DeSarbo and
Harshman (1985) supported the argument by stating that neither of the source
credibility, attractiveness or match-up hypotheses models provides a base for
appropriate celebrity endorser selection. He stated three problems related to these
models (Erdogan 1999); a) these models do not provide measures to cope up with
multidimensionality of source effects. b) these approaches ignore overtone-meaning-
interactions between a celebrity and the endorsed product. c) there is a lack of
quantified empirical basis for purposed dimensions. Hence, McCracken proposed the
meaning transfer model; the main idea of this model is to prove that celebrities
possess unique sets of meanings which might be transferable to the products
endorsed by them. The meaning transfer model suggests that the effectiveness of a
celebrity endorser depends on his/her quality to bring the meanings to the
endorsement process (McCraken 1989). A celebrity possesses a larger number of
distinctive meanings. ―Distinctions of status, class, gender, and age, as well as
personality and lifestyle types, are represented in the pool of available
celebrities, putting an extraordinarily various and subtle pallet of meanings at
the disposal of the marketing system‖ (McCraken 1989). For instance in India, Sonia
Gandhi as regal women, Amitabh Bachhan as high class person, Aishwarya Rai for her
glamorous lifestyle etc. Marketers employ celebrities in advertisements assuming
that since people follow celebrities and try to look like them, they may also
consume products associated with them (Fowles 1996). Celebrity endorsements are a
unique example of, a more general process of meaning transfer (McCracken 1989).
According to McCraken (1989) there is a systematic path for the transfer of
cultural meaning in consumer societies. According to McCraken (1988) ―Meaning
begins as something resident in the culturally constituted world, in the physical
and social world constituted by the categories and principles of the prevailing
culture‖. Advertising and the fashion system facilitate the meaning transfer from
the culturally constituted world to consumer goods and from consumer goods to the
individual consumer it is done through the own efforts of the consumer (McCracken
1989).

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Figure 2: Meaning Movement and Endorsement Process (Source: McCracken 1989) The
meaning transfer model illustrates a three stage process. It starts when the
advertiser identifies the cultural meanings intended for the product and decides
what he/she wants the product to say. After that, the advertiser looks for the
objects, persons, and contexts that can give voice to these meanings for instance
celebrities. In other words, in the first stage the meanings associated with the
celebrities moves from the endorser to the product or the brand, and this meaning
is drawn out of the celebrity‘s public image. In the second stage, this meaning is
transferred from the endorser to the product and the process of creating a product
personality takes place (Tom, et al. 1992). This process is based on the symbolic
properties conveyed by the endorser. Once meanings have been moved into goods, they
must also be transferred to consumers. Finally in the last stage called consumption
process, the brand meaning is achieved by the consumer. Consumers recognise the
symbolic properties of products and transfer them into meanings for themselves by
putting them to work in the construction of their self-image. When this is done,
the movement of the meaning is complete. The third and the final stage of the model
demonstrates the importance of the consumer in the endorsement process. (McCraken
1989) McCracken‘s (1989) meaning transfer model first merely seemed to be a
theoretical concept but its practicality to real life was proved by two studies by
Langmeyer and Walker (1991a and 1991b). In (1991a) they used a response elicitation
format with a celebrity endorser Cher endorsing Scandinavian Health Spas and in
(1991b) used celebrity endorsers - Madonna and Christie Brinkley and products -
bath towels. VCRs, and blue jeans. The study results revealed that when celebrities
combined with products, these perceived differences affected meanings perceived in
products. Langmeyer and Walker's findings empirically supported the

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argument by McCracken (1989) that celebrities exemplify various meanings and these
meanings are passed on to products through endorsements (Erdogan 1999).

2.12 Celebrity Endorsement – An Indian Perspective

Today, India is one of the fastest growing economies in the world, growing at a
steady pace every year. In a report, World Bank has projected that in 2010 the
Indian economy will grow at 8%, making it the world‘s fastest-growing economy by
surpassing China (BBC 2009). In today‘s dynamic and competitive environment,
increasing consumer‘s expectations and demands force marketers to adopt more
creative advertising practices such as celebrity endorsements to influence consumer
buying behaviour (Alsmadi 2006). Hence, there was the potential for Advertising
industry using celebrity brand endorsement to become a multimillion dollar industry
in India (Malhotra 2005). The advertising industry in India is estimated to be
worth around $2,585 million and a recent report in Business Standard estimated the
brand endorsement business in India worth around $217 million. India is one of the
most after sought market by major brands in advertising industry across the world.
In a report by McKinsey Global Institute (MGI), India's consumer market will be the
World‘s fifth largest (from twelfth) in the world by 2025 which is currently valued
at US$ 511 billion. A C Nielsen (2007) reported strong advertising expenditures for
the year 2000 in China and India suggest that the country will be an important
destination for marketers and advertisers in the coming years.

Figure 3: Trend of Celebrity Endorsements in India (Source: Adex India)

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In India, the trend of Celebrity endorsements in advertising started in the latter

part of the '80s (Katyal, 2007) when Bollywood and TV stars along with
sportspersons made there breakthrough in the advertising world that was, until
then, the exclusive domain of models (Kulkarni and Gaulkar, 2005). One of the first
advertisements featuring celebrity in India was when Farokh Engineer became the
first Indian cricketer to endorse a brand called Brylcream (Kulkarni and Gaulkar,
2005). Lux, the soap brand pioneered the expertise of celebrity endorsements in
India and holds the record for the past 75 years to till date (Katyal, 2007). Early
examples of celebrity endorsers include the famous actress Tabassum (Prestige
Pressure Cookers), Jalal Agha (Pan Parag), famous cricketer Kapil Dev (Palmolive
Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) (Roy, 2006). Status and/or
position in the society are important cultural values in the Indian culture
(Hofstede, 1984). According to LaFerle and Choi (2005) Consistent to the previous
thought of importance of status and social acceptance in the Indian society,
celebrities may have a greater impact on endorsements. Celebrities are often
associated with a high status due to their wide recognition in the society as well
as exposure given to them through media. Therefore, celebrity endorsements are
perceived as genuinely relevant and successful, in motivating consumers to buy the
product (Kulkarni and Gaulkar, 2005). India is a country, which has always idolized
the celebrities from the bollywood world; thereby providing an opportunity for
marketers to use celebrities for product endorsements (Katyal, 2007). The best
example to support this statement is the famous South Indian actor Rajnikanth,
people have made temples dedicated to his glory (Dixit 2005). Indian film stars and
celebrities have always provided lifestyle cues to youth in India. People get
easily influenced and try to follow almost everything from a celebrity. Considering
the popularity, size and reach of the celebrities in India it can be said that they
have the power to influence the attitudes and behaviour of people, particularly
youth (Malhotra 2005). Therefore, there is a race among the marketers to hire the
most admired celebrity like Shahrukh Khan, Aamir Khan, Amitabh Bachchan and many
others by paying huge pay packages to appear with the brand. Moreover, multiple
celebrity endorsement is also not a new phenomenon in India. Many famous brands for
example Coca-Cola is have more than one celebrity endorser. Coca-Cola is leading
the chart by endorsing through 15 celebrities, followed Pepsi having 8 celebrity
endorsers and around 3 for other related brands like Slice, Limca etc. On the
contrary, there are few successful brands been established without using

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celebrity endorsements (Kulkarni and Gaulkar, 2005). Procter & Gamble promoted its
‗Rejoice‘ brand in India featuring an ordinary woman in their advertisement which
helped them to reach the common people. Their belief that ordinary or common
consumers, especially housewives, are more likely to be influenced by a lay person
than a celebrity. There are some other examples include ParleG, Lifebuoy, Maruti
800, Close Up, Fevicol etc. According to the the latest report by TAM Adex, a
division of TAM Media Research Priyanka Chopra is the India‘s top brand endorser
for the year 2009. She has edged past endorsement giants like Shahrukh Khan, Indian
skipper MS Dhoni and Amitabh Bachchan. However Shahrukh khan has still the highest
number of brands endorsed by him. He currently endorses 39 brands, including Pepsi,
Hyundai, Airtel, Videocon, Sun Feast, Tag Heuer, Dish TV and Mayur Suitings. He is
closely followed by India's cricket captain, Mahendra Singh Dhoni endorsing around
19 brands and reaping upto Rs 50 Cr an year. Katyal (2007) asserts that there is
the presence of great potential for celebrity endorsement in India to be seen as
truly relevant, thereby inducing customer to buy the product.

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2.13 Theoretical Framework

The figure below represents the framework for understanding the impact of celebrity
endorsements on consumer buying behaviour. The framework has been adapted from the
integrated model for understanding celebrity endorsements and consumers perception
to study cross cultural consumer behaviour (Biswas et al. 2009). It represents how
celebrities are used to influence consumers purchase decision. Marketers‘ actions
serve as a medium to transfer meanings or values from the culturally constituted
world to consumer goods (McCraken 1986).
Models explaining Celebrity Endorsements Source Attractiveness Model (McGuire 1985)
Basic Tenet Source of influence on Consumers Consumer Perceptions

Expertise, Trustworthiness of celebrity

Identification process (Kelman)

Positive perception of ad, celebrity and brand when expertise and trustworthiness
high Positive perception of ad, celebrity and brand when celebrity is familiar and
likeable Positive perception of ad, celebrity, and brand

Source Credibility Model (Hovland and Weiss 1951 ) Match-up hypothesis (Kamins and
Gupta 1994) Meaning transfer model (McCracken 1986)

Familiarity, Likeability and Similarity of celebrity

Internalization process (Kelman) balance theory (Heider)

Celebrity image matches Product image

Social adaptation theory, attributional theory, correspondence theory Transfer

process of meaning from celebrity to product to consumer

Process of transfer of meaning from celebrity to product and to consumer

The higher the perceived match between symbolic properties of the product and
celebrities meanings drawn from his/her assumed roles, the higher the likelihood of
consumer‘s consumption and appropriation of product‘s meanings.

Table 4: Models explaining Celebrity Endorsements (Source: Biswas et al. 2009)

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Celebrities are recognised as effective endorsers due to their symbolic

aspirational reference group associations (Assael 1984; Solomon and Assael 1987).
Taking the account of India where celebrities are idolised (Katyal 2007) and
considered as heroes and opinion leaders (Biswas et al 2009). Marketers very
cleverly use celebrities to endorse products and services through them. As earlier
discussed in the literature review, celebrities possess distinctive attributes such
as attractiveness, trustworthiness etc. (McCracken 1989). Many researchers have
designed and explained various models regarding celebrity endorsements (see
figure). Some authors suggested that celebrities lend their image or attributes to
the products by appearing together in an advertisement. In this research the author
has tried to find out how the attributes defined in these models influence the
consumers purchase decision. Marketing communication represented in the model act
as a mediator to transfer the celebrity-product message in order to influence
consumers purchase decision. Celebrity endorsement is no more a new phenomenon in
this world almost every brand is using celebrities to endorse their products. Today
Consumers are well aware of these marketing techniques used by marketers in order
to influence their purchase decision. Moreover, due to its extremeness and
aggressive approach consumers might change their attitudes and perceptions about
celebrity endorsements. Instead of all these controversies celebrity endorsements
is a pervasive part of advertising industry. With reference to this, in this model
the author has tried to find out the impact of celebrity endorsements on consumers
buying behaviour.

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Figure 4: Broad Framework designed to Study Celebrity Endorsements

CONSUMER BEHAVIOUR Cognition Perceptions about celebrity Perceptions about
celebrity endorsements Affect Attitude towards Advertisements Attitude towards
Product endorsed Behaviour Purchase Intention

SOURCE CREDIBILITY   Trustworthiness Expertise

SOURCE ATTRACTIVENESS    CELEBRITY PRODUCT MATCHUP  Perceived fit between the

product and celebrity. Similarity Familiarity Likeability PRODUCT

MARKETING COMMUNICATIONS (Advertising)

CONSUMER

MEANING TRANSFER PROCESS (Unique set of meanings)

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2.13.1 Hypotheses
To summarise the above discussion, it can be concluded that the attributes
discussed above are the personal characteristics of a celebrity that marketers use
in order to influence consumer buying behaviour. The main purpose of this study is
to find out how these attributes affect consumers buying behaviour. To be able to
fulfil the purpose of this research and answer research questions the author find
it appropriate to test the relationship between consumer purchase intention and
attributes discussed above. This led into generating the following hypotheses to
test accordingly. H1: Celebrity endorsed advertisements are more attractive and
influential than noncelebrity advertisements H2: The celebrity-product combination
of attributes positively affects the purchase intention to buy a product or
service. H2a: Expertise of the celebrity positively affects the purchase intention
of the consumer. H2b: Trustworthiness of the celebrity positively affects the
purchase intention of the consumer. H2c: Similarity between the celebrity and
consumer positively affects the purchase intention of the consumer. H2d:
Familiarity among the consumers positively affects the purchase intention of the
consumer. H2e: Likeability among the consumers positively affects the purchase
intention of the consumer. H2f: Product Fit/Match with the celebrity positively
affects the purchase intention of the consumer. H2g: Meaning transfer from the
celebrity to the product positively affects the purchase intention of the consumer.
H3: Celebrity endorsers produce greater purchase intentions to buy a product than a
noncelebrity endorser.

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2.14 Conclusion
The literature review discussed the main and relevant concepts regarding celebrity
endorsements. The author first made the concept clear by differentiating between
Celebrity and Non-celebrity endorsements and how celebrities form aspirational
reference groups. The author has explained how marketers use celebrity endorsement
strategy as a marketing tool to influence consumers buying behaviour. Further the
author has shed some light on Pros and Cons of using celebrities as endorsers. The
author has defined some other prevalent factors like use of multiple celebrities
and its effects etc. It was noteworthy to highlight various different types of
consumer buying behaviours. Furthermore the author has narrowed this additionally
by specially focusing on consumer buying behaviour in India. The author has
structured, organised and analysed many earlier empirical studies conducted by
different authors on celebrity endorsements. Many of the researchers have shown
that how the consumers get affected by celebrities (Soderlund 2003; McCraken 1989;
Silvera and Austad 2004; Belch and Belch 2001). The author has used four different
models namely ―Source Attractiveness Model‖ (McGuire 1985), ―Source Credibility
Model‖, (Hovland and Weiss 1951 ), ―Match-up hypothesis‖ (Kamins and Gupta 1994),
―Meaning transfer model‖ (McCracken 1986) regarding celebrity endorsements in order
to check their impact on consumer buying behaviour. Alongside this, the last
section of the chapter focussed on the prevalence of celebrity endorsement business
in India. The author has based and focussed this study on India because given the
current and future economic condition this business is expected to grow by leaps
and bounds in India. As it is already been stated that celebrities hold a distinct
status and position in Indian culture and treated with high regards. Moreover,
availability of little research on account of understanding Indian consumer‘s
perception towards celebrity endorsements has enforced the author to conduct this
research.

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METHODOLOGY

This chapter explains and justify the methodology used for conducting this research
project. It begins with explaining the adopted research philosophy, research
approach and design. Further it explains the data collection method, sampling
technique and sample size, data analysis method and data quality issues. Finally,
this chapter acknowledges the limitations and ethical issues of the research.

3.1 Research Philosophy

―It is a capital mistake to theorise before one has data‖ Arthur Conan Doyle

The term research philosophy relates to the development of knowledge and its nature
(Saunders et al 2009). While conducting a research, an understanding of the
philosophical principles is important as it may influence the choice of research
strategy in the development of new knowledge (Saunders et al. 2009). Selected
research philosophy contains important assumptions about the way one looks at the
world (Saunders et al. 2009) and it guides the process of the research (Hussey and
Hussey 1997). According to Johnson and Clark (2006) while conducting a research it
is important to be aware of the philosophical commitments we make through our
choice of research strategy as it has significant impact not only on what we do but
we understand what is we are investigating. The understanding of philosophical
issues is useful in three different ways (Easterby-Smith et al 2009). a) It helps
to clarify research design; b) It helps the researcher to recognise which design
will work and which will not; c) It may help the researcher identify and even
create designs and also suggest how to adapt research designs according to
constraints of different subjects or knowledge structures. There are two main
philosophies associated with development of knowledge in social science research
i.e. Positivism and Interpretivism or Phenomenology (Saunders et al, 2003). The
doctrine of Positivism was first encapsulated by the French philosopher, Auguste
Comte (1853), as he said ―All good intellects have repeated, since Bacon‘s time,
that there can be no real knowledge but that which is based on observed facts‖. The
statement comprises two

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important assumptions: first, an ontological assumption, that reality is external

and objective and second, an epistemological assumption, that knowledge is only
significant if it is based on observable facts of reality (Easterby-Smith et al
2009). The key idea underlying the doctrine of positivism is that social world
exists externally and its properties should only be measured by objective methods
rather than by inferring subjectively through sensation, reflection or intuition
(Easterby-Smith et al 2009). Positivist adopts the philosophical stance of the
natural scientist (Saunders et al. 2009). According to Remenyi et al. (1998)
Positivist work with an observable social reality that leads to resulting law like
generalisations similar to those produced by the physical and natural scientist.
This approach generates hypotheses that can be tested and that will thereby allow
explanation of laws to be assessed (Bryman and Bell 2007). According to Aiken
(1956) Positivism provides the best way for investigating human and social
behaviour originated due to metaphysical speculation. This approach allows the
researcher to conduct the research in a value-free way, and stay impartial to the
subject of the research (Saunders et al. 2009). On the other hand, the term
Interpretivism is derived from two intellectual traditions: phenomenology and
symbolic interactionism. Phenomenology refers to the way we make sense of the world
around us and Symbolic interactionism is a continual process of interpreting the
social world around us (Saunders et al. 2009). It relates to understanding the rich
insights of complex subjectivity of the lived experience (Saunders et al. 2009).
Interpretivism states that it is important for the researcher to understand
differences between human behaviour as social actors (Saunders et al. 2009). The
researcher adopts an empathetic stance under interpretivist philosophy (Saunders et
al. 2009). It is important for the researcher to understand and view the research
subject from their point of view. Since business situations are complex and unique,
many authors argued that an interpretivist approach is highly appropriate in the
case of business and management research particularly for organisational behaviour,
marketing and human resource management (Saunders et al. 2009). In consideration
with above two mentioned philosophies, the author selects the positivism philosophy
for the research. The decision is made in consideration with the research
objectives i.e. examining the impact of celebrity endorsements on consumer buying
behaviour. In order to achieve the intended aims and objectives of this research
positivist approach seems to be most suitable for the research.

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3.2 Research Approach

The aim behind conducting a research is to examine the existing theories, set up
new theories or adding new knowledge to existing theories on the basis of latest
findings (Saunders et al. 2009). Understanding of research approach is essential as
it enables the researcher to focus and look at in-depth of the problem and make a
decision on how to solve the problem, naming , and approaching the research topic
(Saunders et al 2007). There are two kinds of research, namely deductive and
inductive (Saunders, et al. 2009 and Hussey and Hussey 1997). Deduction owes much
to scientific research. It involves developing a theory and hypotheses (or
hypotheses) and design a research strategy to test the hypotheses, which can be
explained as relationships between cause and effect variables (Saunders et al.
2000). Deduction approach has several important characteristics. It aims to search
and explain the causal relationship between variables. Another important
characteristic is that concepts need to be operationalised in a way that enables
facts to be measured quantitatively. It also dictates that the author should be
independent of what is being observed in order to pursue the principle of
scientific rigour. The final characteristic of deduction approach is generalisation
(Saunders et al. 2009) On the other hand, inductive approach involves a theory
being developed on the basis of analysis of collected data (Saunders, et al 2000).
According to Bryman (2001) Inductive approach begins with observations and
thereafter conclusions are made that are sufficiently capable of explaining the
research problem. Further Saunders et al (2003) states that inductive approach is
concerned with the context in which events take place and theory are built
subsequently under the light of research findings. An inductive approach seems to
be less appropriate for this research because inductive approach is more concerned
with the cause for the situation rather than the result (Deploy and Gitlin 2004).
The logic of this study is deductive as the purpose of this study is to test the
hypotheses, and draw conclusion on the basis of statistical analysis of the data
with the ability to be generalised (Lee and Lings 2008). Moreover the application
of deductive approach will help the researcher to explain the relationship between
celebrity endorsement and consumer buying behaviour.

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3.3 Quantitative Versus Qualitative Research

Qualitative and quantitative are the two main approaches to conduct a research. The
former involves collecting data that is mainly in the form of words, and the latter
involves data which is either in the form or can be expressed in numbers (Easterby-
Smith et al 2009). However this simplified distinction may lead to confusion
because both of these methods may be used by both Positivist and Interpretivist
epistemologies and can be supported by both nominalist and realist ontologies
(Easterby-Smith et al 2009). In fact, many researchers have supported the idea of
using multi-method approach in marketing research strategy as the combination of
these two methods may lead to some interesting and exciting conclusions in a
research study (Flick 2002 and Carson et al 2001). Denzin and Lincoln (2005)
referred Quantitative research as the ―science that silences too many voices‖. The
quantitative approach involves collecting numerical data and analysing it in a
statistical manner by applying statistical tests (Hussey and Hussey, 1997). It
follows rigorous methods and procedures which allow generalisation of the findings,
to measure and analyse causal relationships between variables (Denzin and Lincoln
2000). Quantitative approach is a method concerned with logically and critically
testing, verifying and identifying variables, in addition, it is objective and
focuses on testing hypothesis and is very result oriented (Ghauri and Gounhaug,
2003). Quantitative research is conducted and validated by social survey and by
experimental investigations to find out the fact and cause of social phenomena
(Robson 1994). Qualitative approach aims to discover the views, perception and
opinions of groups or individuals through language and the main method to conduct
this is in-depth interview (Easterby-Smith et al 2009). According to Robson (1993)
qualitative data tends to be based on meanings communicated verbally, concerns with
understanding behaviour from actor‘s out of his own experience. Walliman (2001)
further stated that qualitative research is more related with participant
observation and unstructured in-depth interview in order to find out the feelings
and motivation behind actions and attitudes. Qualitative research emphasises on
subjective interpretation (Bryman, 2001) and facilitates effective and in-depth
understanding of the research topic (Easterby-Smith et al 2009). The qualitative
research method provides a deeper understanding, knowledge and insight into a
particular phenomenon, by providing answers to questions of ‗how?‘ rather than
‗what?‘ (Miles and Huberman, 1994).

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From the above discussion and considering research questions, the author decides to
adapt the quantitative research. Quantitative approach would help the author to
collect large amount of data to answer the research questions and further leading
to generalisation. Further the use of quantitative method is justified if the area
of research topic is large and when there is a need to deduce casual relations
between variables (Gordon and Langmaid 1988).

3.4 Research Purpose

It is important to link research aims and objectives with the research philosophy
and research design as it may help the researcher to find out answers to the
research questions. Therefore, identification of research purpose is based on the
success and direction of the research design (Saunders et al. 2009). According to
Saunders et al. (2009) and Jankowicz (2005) research methods can be classified
under three types of research purposes: exploratory, descriptive and explanatory.
According to Robson (2002) An exploratory study is a valuable means of finding out
―what is happening; to seek new insights; to ask questions and to assess phenomena
in a new light‖ (Cited in Saunders et al. 2009, pp 139). It is particularly used if
the researcher is uncertain and wishes to clarify the understanding about the
nature of the problem. Secondly, the objective of descriptive research is ―to
portray an accurate profile of persons, events or situations‖ (Robson 2002, Cited
in Saunders et al. 2009, pp 140). According to Gummesson (1991) it is the simplest
form of science as it just involves observing and reporting other people‘s
findings. Finally, the studies that establish causal relationship between variables
can be termed as explanatory research. It emphasises on studying a situation or a
problem in order to explain the relationship between variables (Saunders et al.
2009). This study aims to explore the impact of celebrity endorsements on consumer
buying behaviour or their intention to purchase; therefore, the author has decided
to undertake exploratory research.

3.5 Research Design

According to Robson (2002) Research design is a process that turns the research
question into a research project (cited in Saunders et al. 2009). Ghauri and
Gronhaug (2002) further defined research design as an overall plan for ‗relating
the conceptual research problem to relevant and practicable empirical research‘.
Saunders et al. (2006) simplified the concept by stating that ―Research design is
the arrangement of conditions for collection and analysis of

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data in a manner that aims to combine relevance to the research purpose with
economy in procedure‖. Therefore, for this dissertation the author has justified
the research design on the basis of research questions and objectives as well as by
being consistent to the research philosophy as suggested by Saunders et al. (2009).

3.6 Research Strategy

Research strategy enables the researcher to answer the particular research
questions and meet their objectives (Saunders et al. 2009). The choice of research
strategy is guided by the research questions and objectives, the extent of existing
knowledge, the amount of time and other resources available as well as researchers
own philosophical underpinnings (Saunders et al. 2009). Saunders et al. (2009)
further revealed various type of research strategy approaches used in a management
research i.e. experiment, survey, case study, action research, grounded theory,
ethnography and archival research. According to Yin (2003) each of these strategies
can be implemented for exploratory, descriptive and explanatory research. Further
Robson (1993) stated that more than one method can be used by the researcher
depending on the nature and number of research purpose(s). Survey strategy is a
popular and commonly used strategy in business and management research. It is
usually associated with the deductive approach and it is most commonly used to
answer who, what, where, how much and how many questions (Saunders et al. 2009).
Accordingly, it is tend to be used for descriptive and exploratory research.
Moreover, survey allows a researcher to collect a large amount of data from a
sizeable population in a highly economical way (Saunders et al. 2009). Most
importantly the data collected by using a questionnaire is standardised and allows
easy comparison. Additionally this strategy is generally perceived as authoritative
among people and is comparatively easy to explain and understand (Saunders et al.
2009). Therefore, for this research project the author aims to collect the data
through a structured questionnaire in the form of a survey.

3.7 Data Collection

It is important for a researcher to collect all the necessary information and
relevant data in order to be successful in achieving the desired aims and
objectives of the research. According to Saunders et al., (2009) basically there
are two data collection methods i.e. primary and secondary source of data.
According to Collins and Hussey (2003) ―Primary data is known as original data that
is collected from the main source‖. Sources to collect primary data include

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observation, survey, questionnaire and personal interviews (Hussey and Hussey

1997). On the other hand, Secondary data involves collecting and analysing data
which is already been collected by past researchers for some other purposes. It can
be in the either form, raw data and published summaries (Saunders et al., 2003).
For this research the author has used structured questionnaire method as a source
to obtain primary data. And for the secondary data the author has gained data from
the relevant text books, journals, reports, articles and the internet.

3.7.1 Secondary Data

Secondary data includes textbooks, surveys, reports, newspapers, magazines,
articles, video recordings etc. (Saunders et al. 2007). The extent of secondary
data available provides the base for a strong literature review and secondary
research analysis. The availability of the secondary data enhances the existing
knowledge of the researcher and offers guidance for primary data collection
(Creswell 2009). The appreciating and commendable work by many researchers on
celebrity endorsements has helped me to analyse and build on the secondary data
available and also work on the further research that adds value to my research
topic. The author has various sources for collecting secondary data such as
journals, text books, internet and electronic resources provided by the university
including databases like Athens etc. The collection and analysis of secondary data
is time saving, cost efficient and provides a wider variety of options and findings
(Ghauri and Gronhaug, 2003; Saunders, et al, 2007). However, its disadvantages
cannot be neglected. The data is collected to serve different purposes to different
studies. It means that the aims and objectives of the previous study might not
match with the existing aims and objectives (Ghauri and Gronhaug, 2005).
Additionally the secondary data might not be accurate and updated as the data has
been collected a few years ago that might not solve the purpose of existing
research question (Saunders et al. 2000).

3.7.2 Primary Data

According to Saunders et al. (2007) Primary data involves the method which is
‗collected specifically for the research project being undertaken‘. Jankowicz,
(2005) further states that data collected through primary sources is more relevant
and consistent with the set objectives to the study. Ghauri and Gronhaug (2002)
asserts that only primary data can help answering the questions related to people‘s
attitudes, intentions and buying behaviour. The analysis of

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primary data is a central source for this study. Thus the author has adopted survey
strategy using Self-administered questionnaire technique in order to collect
primary data for this study. The survey strategy allows the researcher to collect
which can be analysed quantitatively using descriptive and inferential statistics.
The data collected through survey strategy is easy to explain and understand
(Saunders et al. 2009). Moreover, it can be used to suggest possible reasons for
relationships between variables and to produce models of these relationships
(Saunders et al. 2009).

3.7.3 Questionnaire
Within business and management research, the questionnaire is one of the most
commonly used data collection technique within the survey strategy (Saunders et al.
2009). According to deVaus (2002) (cited in Saunders et al. 2009 pp. 360) generally
questionnaire includes all the data collection techniques in which ―each respondent
is asked to respond to the same set of questions in a predetermined order‖. Using
questionnaire is an efficient way of collecting responses from a large number of
people because every respondent is asked to respond to the same set of questions.
Moreover it can avoid bias in data collection process (Saunders et al. 2009). As a
result, questionnaire tends to be the most reasonable and appropriate method in
collecting data from large number of people in order to fulfil the aims and
objectives of the research study.

3.7.4 Questionnaire Design

In order to collect data, the author distributed Self-administered questionnaires
to be completed by the respondents. This type of questionnaires are electronically
administered through the internet or Intranet, posted or delivered by hand to
respondents (Saunders et al. 2009). Conducting such questionnaires is easy,
relatively cheaper than face to face surveys and allows an opportunity for a large
number of people to be surveyed (Saunders et al. 2009). The questionnaire is
designed in a way to empirically test the hypotheses developed in the previous
chapter, impact of celebrity endorsement on consumer buying behaviour (purchase
intention). The questionnaire for the research is divided in four major sections.
Sections A, deals with collecting the demographic data of the respondents for
instance their age, gender, occupation etc. The rest of the three sections were
aimed at collecting the data to prove each hypothesis.

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Section two comprises questions to explore and examine the current state of
consumer perception about celebrity endorsements. Section three deals with
evaluating the impact of each celebrity attribute on the purchase intention of
consumers. Finally the section four is aimed at evaluating the overall impact of
celebrity endorsements on consumer purchase intention. All the three sections were
made coherent so that respondents can understand them easily and take the correct
meaning of them. Moreover, the business jargons or complicated terms are made easy
by providing a small definition at the end of the questions. The author used 5
point likert scale for evaluating the degree of agreement for each question. Likert
scale questions are relatively easy to complete (Robson 1993). The author promised
to keep the confidentiality of demographic profile of the respondents. In order to
get the high response rate the author pre contacted the friends and colleagues
through email, telephone, SMS etc. The questionnaire was designed and distributed
using the link provided by website (www.surveymonkwey.com). The questionnaire was
distributed through email, social networking websites etc. The copy of online
questionnaire is attached in (Appendix 3).

3.7.5 Pilot Test

The purpose of the pilot test is to refine the questionnaire so that respondents
don‘t face any problems answering the questions and to eliminate further problems
in recoding the data. Additionally it helps the author to check the reliability and
validity of the data to be collected (Saunders et al. 2009). Pilot test ensures
that the collected data will be helpful in answering the investigative question or
research questions. The number of people required to pilot test the questionnaire
depends on research questions, research objectives and size of research project.
According to Fink (2003b) for most student questionnaire the number for a pilot
test is 10 (cited in Saunders et al. 2009). Therefore the author conducted the
pilot test by distributing the questionnaire to 11 Indian respondents in
Bournemouth University. After completing the pilot test unclear and confusing
questions were revised and rectified accordingly. Small definitions were provided
for the jargons used in the questionnaire.

3.8 Sampling
Determining an appropriate research population and proper sampling procedure is an
important aspect for a researcher in order to answer research questions. According
to

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Jankowicz (2000) Sampling is a calculated choice of number of the people,

representing a given population. Since, it is impossible for the author to survey
the whole population due to time, money and access constraints it becomes important
for the author to determine sampling size and sampling frame, in order to gather
findings from the representative set of population.

Figure 6: Types of Sampling Techniques (Source: Saunders et al. 2009) According to

Churchill (1995) sampling procedure can be divided into two parts namely
probability and non-probability sampling. Saunders et al (2009) defined probability
sampling as chance of each case being selected from the population is known and
equal. Probability is based on statistical study. Whereas, non-probability sampling
is a case where sample has not been selected using the random selection method. It
implies that some units are more likely to be selected than others in a given
population (Bryman and Bell, 2003). According to Aczel and Sounderpandian (2002)
under probability sampling the chances of a sample being selected from a population
is based on the principle of randomisation or chance. Hence probability sampling is
more complex, time consuming and costly as compared to non-probability sampling
(Saunders et al. 2003). For business and management studies, ―the research
questions, objectives and choice of research strategy‖ may often use non-
probability

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sampling (Saunders et al. 2007 pp. 170). There are many advantages of non-
probability sampling: Non-probability sampling is relatively cheaper and is used
when sampling frame is not available (Saunders et al. 2003). It is also useful in a
research where the researcher wants to investigate the attitude and perceptions of
people (Churchill 1995). Based on the above discussion, the author will use non-
probability sampling for this research. The main argument for this is limited time
and resources. Secondly, non-probability sampling is associated with recognising
and questioning the respondents on the basis of their background and past
experience (Jankowicz 2005).

3.8.1 Sampling Technique

The sampling technique used for this study is convenience sampling (or haphazard
sampling). ―It involves selecting haphazardly those cases that are easiest to
obtain for your sample…….. the sample selection process is continued until your
required sample size has been reach ed‖ (Saunders et al. 2009 pp. 241). Under
convenience sampling respondents are selected on the basis of proximity, ease of
access and willingness to participate (Timothy 2005). It enables the researcher to
gather information from the targeted group of people easy and quickly. The author
has selected convenience sampling for this research mainly on the basis of easy
access to target population in India. The questionnaires were sent through email to
the respondents in India i.e. authors friends, colleagues and relatives. The author
has sent the questionnaire to Indian students studying in Bournemouth University
and to friends through social networking website like Orkut, Facebook etc. as well.

3.8.2 Sampling Size

The issue of sample size for all non-probability sampling techniques (except quota
sampling) is ambiguous and, there are no rules (Saunders et al. 2009).
―generalisations being made to theory rather than about a population‖ (Saunders et
al. 2009 pp. 233). According to Patton (2002) Sample size depends on the research
questions and objectives of the research and also the analytical skills of the
author (cited in Saunders et al. 2009 pp. 235). Generally researchers don‘t
restrict themselves to any specific sample size. Fortunately, Crimp and Wright
(1995) offered some guidance by proposing that sample size anything larger than 30
and below 500 is appropriate for the research methods. For this research the author
aims for a minimum of 101 samples, in accordance to the time limitation. For
Respondents profile please refer to (Appendix 2).

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3.9 Data Quality Issues

There are a number of data quality issues need to be considered while conducting a
research. According to Saunders et al. (2009) the quality of research findings can
be identified on the basis of reliability, validity and generalisation. Emphasising
on research design: reliability and validity reduces the possibility of getting the
findings wrong (Saunders et al. 2009).

3.9.1 Reliability
―Reliability refers to the extent to which your data collection techniques or
analysis procedures will yield consistent findings‖ (Saunders et al. 2009 pp. 156).
Further, Cooper and Schindler (2003) stated that reliability involves supplying
consistent findings. Reliability of the research refers to the ability of the
research to generate same findings to the same questions if the research is
repeated or conducted again (Hussey and Hussey 1997). According to Easterby-Smith
et al (2008) Reliability of the research can be tested by posing the following
three questions (Cited in Saunders et al. 2009):    Do the measures produce the
same findings on other occasions? Did other authors reached the same findings? Is
there a transparency in the sense raw data was analysed?

Since this research is based on celebrity endorsements in Indian context. In order

to ensure the reliability of the research, the author has collected the data from
Indian consumers who are extensively exposed to billion dollar celebrity
endorsements business in India. Moreover, the author has conducted a pilot test to
reduce the confusions in the questionnaire and make it more meaningful for the
respondents.

3.9.2 Validity
According to Hussey and Hussey (1997) Validity is concerned with ―the extent to
which the research findings accurately represent what is really happening in the
situation‖. Reliability is concerned with the fact whether the findings are really
about what they seem to be about (Saunders et al. 2009). Silverman (2000) made is
more simple to define by stating that Validity is a synonym for truth. Furthermore
Janskowicz (2000) revealed that validity deals with the accuracy of the
measurements used for data collection and analysis, the data is valid if other
researcher can reach to the same conclusion using other methods. The author has
maintained the validity of the research by conducting a pilot test before
conducting the main research in order to avoid any confusion and amendments were
made

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thereafter. Moreover, the author has tried to explain each and every step during
the research before arriving to the conclusion.

3.9.3 Generalizability
Generalisability can also be referred to as external validity (Saunders et al.
2009). It refers to the extent to which the research findings are generalisable:
i.e. whether the findings are equally applicable to other research settings, for
instance organisations (Saunders et al. 2009). Further Hussey and Hussey (1997)
suggested that there is a relationship between sample population and research
findings by stating that greater the sample size, greater the generalisability.
Since different people have different ideas and views selecting smaller sample size
might not represent the wider population. Moreover it is virtually impossible to
sample the whole representative population. Additionally use of convenience
sampling makes it more difficult to analyse sample as a whole population. However,
in order to improve the generalisability of the research only relevant questions
intended to examine the impact of celebrity endorsement on consumer behaviour
(purchase decision) are being asked.

3.10 Data Analysis

The data collected through the online questionnaire will be analysed using the SPSS
software. Author will use Descriptive Frequency analysis, Correlation analysis and
Regression tests in order to examine the relationship between constructs and test
the hypotheses accordingly.

Frequency Descriptive Analysis

Descriptive frequency statistics is used to present quantitative data in a
manageable form. It helps to represent large number of data in a simple and
sensible way. It is basically used to assess the trend of demographic data (Mean,
median, mode, standard deviation and percentage). Descriptive statistics include
the numbers, tables, chart and graphs to describe, organise and summarise the data.
Descriptive statistics help to summarise and support assertion of facts.

Correlation Analysis
Correlation is one the most important statistical analysis tool. It helps to
describe the degree of relationship between two variables. Correlation determines
the extent to which changes in the value of an attribute are associated with
changes in another attribute. The author will use correlation analysis technique to
measure the relationship between different attributes of celebrities and purchase
intention and testing the hypotheses.

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Regression Analysis
Regression analysis is used for modelling and analysing several variables. It is
used to examine the relationship between a dependent variable and one or more
independent variables. In this research dependent variable is purchase intention
and independent variables are the various attributes of celebrity endorsers.
Correlation analysis will help the author to examine and understand how the value
of dependent variable changes when any one of the independent variable changes,
while other variables are constant. For this research the author will use simple
linear regression analysis.

3.11 Limitations of the Research

There are certain problems being faced by the author while conducting this
research. One of the main issues associated with the research is gaining access to
the data. Internet has undoubtedly made it even easier to access and collect the
secondary data through e-journals, articles and other e-resources provided by the
university. However, gaining physical access or entry (Gummesson 2000) in order to
collect primary data can still be difficult. Respondents may not be prepared to
contribute to the research due to lack of time and resources required. However the
author has made pre-survey contact with the respondents through various channels
(e-mail, telephone and social networking websites) in order to remove operational
constraints. Ethical challenge is one of the major concerns while conducting a
research. Cooper and Schindler (2008 pp 34) defined ethics as the ―norms or
standards of behaviour that guide moral choices about our behaviour and our
relationships with others‖. For this research the author has ensured that the
research design is both methodologically sound and morally defensible to
respondents involved. The anonymity and confidentiality in terms of the answers is
ensured at all times and the purpose of the research was made clear to the
respondents beforehand. Another big limitation to the research is the time; the
author has to submit the research project before the specified deadline. While
studying celebrity endorsements the author has come across many other interesting
and challenging concepts. Due to scarcity of time the author has only focussed on
the relevant literature contributing to the research topic. Nevertheless, the
author has successfully reviewed and mentioned all the relevant information
available up to date. Furthermore, other related and interesting concepts are

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suggested for future research. Future research can be conducted on a broader scale
on the basis of sex, disposable income and product categories.

3.12 Methodology Framework

Figure 7: Methodological Framework

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ANALYSIS AND FINDINGS

This chapter provides results obtained from the survey, which have been examined
and evaluated through data analysis techniques. Findings are subjected to
hypotheses testing. This chapter evaluates the relationship between celebrities
attributes and consumes’ intention to purchase and later overall impact of
celebrity endorsements on consumer purchase intention.

4.1 Research Question 1:

How do consumers perceive celebrity endorsed advertisements as compared to non-
celebrity advertisements?

In the first research question, the author tried to evaluate the common perception
of Indian consumers about celebrity endorsed advertisement as compared to non-
celebrity advertisements. Accordingly a number of questions were asked to the
respondents to evaluate celebrity endorsed advertisements on different basis for
instance: attractiveness, Influential etc. By getting answers to these questions
the author can illustrate the clear picture of their perception and attitude
towards celebrity endorsements.

What attracts you more: celebrity endorsed advertisements or non-celebrity

advertisements?

Firstly the respondents were asked to rate what attracts them more, an
advertisement featuring a celebrity or non-celebrity advertisement. The results
show that celebrity endorsed advertisements are more effective at attracting people
as compared to non-celebrity advertisements. The descriptive frequency analysis of
the data shows that 83.6% of the respondents‘ favoured celebrity endorsed
advertisements whereas non-celebrity

advertisements accounted for only 16.3% of sampled population. The results

celebrity endorsed advertisements attract more consumer attention.

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Table 5: Frequency Table for Attractiveness

Valid Frequency Percent 83.7 16.3 100.0 Percent 83.7 16.3 100.0 Cumulative Percent
83.7 100.0

| Celebrity endorsed
advertisements Non-celebrity advertisements Total

87 17 104

Figure 8: Attractiveness (Celebrity vs. Non-celebrity advertisements)

Later using the descriptive statistical analysis, the data was analysed on the
basis of age groups. The respondents under the age of 18, categorised as
(teenagers) showed significant results. They are most attracted by celebrity
endorsed advertisements. The results show that 91.7 % of the teenagers‘ find
celebrity endorsements more attractive. Comparatively, the people under the age
group of 18-30 (Youngsters) were a bit less attracted by celebrity advertisements
but were still high at 81%. Lastly, the people above the age group of 30
categorised as mature customers also came up with similar results. 83.6% of mature
customers find celebrity advertisements more attractive. The analysis of data shows
that celebrity endorsed advertisements has the potential to attract the consumers
across all age groups. However, teenagers are most attracted by celebrity endorsed
advertisements.

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Table 6: Age * More attractive Crosstabulation Count Celebrity endorsed

advertisements Age less than 18 years 18-30 30 and above Total 11 60 16 87 More
attractive Non-celebrity advertisements 1 14 2 17 12 74 18 104 Total

Figure 9: Attractiveness (Age group analysis) Further analysis on the basis of

gender shows that Males are more likely to be attracted by celebrity endorsed
advertisements as compared to females. The results show that 84% of male
respondents find celebrity endorsed advertisements attractive closely followed by
82.8% female respondents. The result shows a mixed response in terms of gender
since both the genders find celebrity endorsed advertisement more attractive than
non celebrity advertisements.

Figure 10: Attractiveness (Gender analysis)

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Overall, from the above analysis it can be inferred that celebrity endorsed
advertisements are more attractive at drawing consumer attention across all age
groups and genders as compared to non-celebrity endorsements.

Does the presence of celebrities in the advertisement help you recognise and recall
the product more promptly?

Secondly, the respondents were asked whether celebrity endorsed advertisements help
them to recognise and recall the products more quickly. The frequency analysis
shows that majority of the respondents ―agree‖ (62.5%) that associating celebrities
with the product increases the recognition and recall rate for a certain product.
Some respondents also ―slightly agree‖ (25%) to the statement. On the other hand
only 5.8% of the respondents are ―Not sure‖ about the statement and only 6.7% of
the respondents are either ―slightly disagree‖ or ―disagree‖. Overall 87.5% of the
respondents ―agree‖ that they can more promptly recognise and recall a product if a
celebrity is associated or endorsing it. Moreover, statistical analysis of data
(Mean: 1.59, Mode: 1.00) also validates the statement that most of the people agree
that the presence of celebrities in the advertisement help recognising and
recalling the product more promptly.

Table 7: Statistical Analysis of Recognise and Recall rate Variable Recognise &
Recall Mean 1.59 Median 1.00 Mode 1.00 Std. Deviation .970

Table 8: Recognise & Recall rate Frequency Valid Agree Slightly agree Not sure
Slightly disagree Disagree Total 65 26 6 4 3 104 Percent 62.5 25.0 5.8 3.8 2.9
100.0 Valid Percent 62.5 25.0 5.8 3.8 2.9 100.0 Cumulative Percent 62.5 87.5 93.3
97.1 100.0

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Figure 11: Recognise and Recall rate of celebrity endorsed advertisements

Further analysis on the basis of age groups shows the similar trend. The
respondents across all the age groups mostly ―agree‖ or ―slightly agree‖ only a few
respondents either ―slightly disagree‖ or ―disagree‖ with the statement.
Consequently it can be inferred that associating celebrities with products helps
consumers recognising and recalling the product more promptly.

Table 9: Age * Recognise/Recall Crosstabulation Recognise/Recall Count Age less

than 18 years 18-30 30 and above Total Agree 9 45 11 65 Slightly agree 1 20 5 26
Not sure 1 4 1 6 Slightly disagree 0 3 1 4 Disagree 1 2 0 3 Total 12 74 18 104

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Figure 12: Age * Recognise/Recall rate of celebrity endorsements Cross-tabulation

How influential do you perceive celebrity endorsements as compared to non-celebrity

endorsements? Thirdly the respondents were asked how influential do they think
celebrity endorsement is at prompting intention to purchase for a product or
service being endorsed by the celebrity endorser as compared to non-celebrity
advertisement. This is an important question as the main aim of any advertisement
whether celebrity or non-celebrity is to influence the customer to buy a certain
product or service. Table 10: Descriptive Statistical Analysis of Influential
Variable Influential Mean 2.06 Median 2.00 Mode 2.00 Std. Deviation .779

The results from the descriptive analysis of the data shows that people consider
celebrity endorsements as an influential factor in prompting purchase intention.
The analysis shows that 24% of the respondents believe that celebrity endorsement
is very influential and almost half of the respondents 48.1% consider it as an
influential factor. That means majority of the respondents believe that celebrities
can influence their purchase intention for a certain

product or service being endorsed by them. On the contrary, 25% of the respondents
believe that it is somewhat influential means celebrities may have a little
influence on their purchase

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intention. Whereas only a few number of respondents 2.9% contend it to be not at

all influential.

The statistical analysis of the data (Mean:2.06) and (Mode:2.00) also validate the
statement that employing celebrity in an advertisement can influence the purchase
decision of the consumers.

Table 11: Summary of Influential Frequency Valid Very influential Influential

Somewhat influential Not at all influential Total 25 50 26 3 104 Percent 24.0 48.1
25.0 2.9 100.0 Valid Percent 24.0 48.1 25.0 2.9 100.0 Cumulative Percent 24.0 72.1
97.1 100.0

Figure 13: Influential

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Table 12: Age * Influential Crosstabulation Count Very influential Influential
Influential Somewhat influential Not at all influential 1 1 1 3

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Total

Age

less than 18 years 18-30 30 and above Total

8 10 7 25

2 45 3 50

1 18 7 26

12 74 18 104

Further descriptive analysis on the basis of age states that majority of

respondents (83.3%) under the age of 18 years consider celebrity endorsements
either ―very influential‖ or ―influential‖ and only 16% of respondents either
consider it as somewhat influential or not at all influential. It shows that
majority of teenagers find celebrity endorsements influential in prompting their
purchase decision. In the age group of 18-30, 13.5% believe it ―very influential‖
and majority 60% of respondents consider as ―influential‖. Only 25% of respondents
consider it to be neutral or not at all influential but that is still more than
that of under 18 years age group. The mature consumers above the age of 30 gave
neutral results where 55% of the respondents under this age group consdier it as
very influential or influential 45% of the people beleive it as neutral or not at
all influential. From the above analysis it can be said that teenagers are most
likely to influenced by celebrity endorsements followed by young people and then
mature customers above the age group of 30 years.

Figure 14: Age*Influential celebrity endorsements crosstabulation

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4.1.1 Testing the Hypothesis

As mentioned before, for testing the first hypothesis three questions were asked to
the respondents. The hypothesis was tested upon the data collected from 104
respondents. Firstly, the respondents were asked to rate what attracts them more:
celebrity endorsed advertisement or non-celebrity advertisement. The results from
the descriptive frequency analysis of the data shows that 83.6% of respondents find
celebrity endorsements more attractive than noncelebrity endorsements. Majority of
the respondents (87.5%) observed that celebrity endorsed advertisments increase the
recognition and recall rate for a product being endorsed. And finally the
respondents were asked to choose what most influences their intention to purchase
among celebrity and non-celebrity endorsements. 72.1% of the respondents state that
they find celebrity endorsements more influential at instigating their purchase
intention. The analysis of data gave significant results that are more in favour of
Hypothesis 1. Therefore, the Hypothesis1 is accepted. H1: Celebrity endorsed
advertisements are more attractive and influential than

non-celebrity advertisements

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4.2 Research Question 2: Hypotheses Testing

4.2.1 Degree of correspondence between variables

The purpose of this part of the study is to evaluate and investigate the attributes
that might affect the consumers purchase intention as a result of viewing celebrity
endorsed advertisements. Therefore, the calculation of correlation is important in
order to examine the relationship of each variable/attribute with dependent
variable i.e. (Purchase Intention).

The figure below represents the correlation among seven attributes namely
expertise, trustworthiness, similarity, familiarity, likeability, match-up and
meaning transfer with purchase intention.

Table 13: Correlation Matrix

PI Purchase Intension Expertise Trustworthiness Similarity Familiarity Likeability
Match up 1.000 .394** .379 .453
** **

EX

TW

SM

FM

LK

MU

MT

1.000 .587** .347

**

1.000 .370** .530** .431** .369** 1.000 .588** .543** .421** 1.000 .670** .382** .
309** 1.000 .509** .293** 1.000 .344** 1.000

.479** .377** .257**

.434** .469** .460**

Meaning transfer .200* .219* .343** .244** N = 104 **. Correlation is significant
at the 0.01 level (1-tailed). *. Correlation is significant at the 0.05 level (1-
tailed).

All seven of the tested attributes/variables expertise (.394), trustworthiness

(.379), similarity (.453), familiarity (.479), likeability (.377), match-up (.257)
and meaning transfer (.200) interact with the dependent factor (Purchase intention)
in a positive manner; proving one tailed, positive correspondence between above
mentioned variables. Therefore, hypotheses H2a, H2b, H2c, H2d, H2e, H2f, and H2g
are supported and accepted.
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Regarding the strength of relationship between dependent and tested variables,

Match-up (.257) and Meaning transfer (.200) seem to have a low but still positive
relationship with purchase intention. Whereas, likeability (.377), trustworthiness
(.379) and expertise (.394) have moderately good relationship. Similarity (.453)
and familiarity (.479) hold significantly good relationship with purchase
intention. Correlation matrix results prove the strongest relationship of
familiarity (.479) with purchase intention. Additionally, in order to represent the
overall opinion of respondents descriptive statistics results are mentioned in the
table below:

Table 14: Descriptive Statistics of Attributes Mean Std. Deviation Purchase

Intension Expertise Trustworthiness Similarity Familiarity Likeability Match up
Meaning transfer 2.1538 2.1154 2.3654 2.4327 2.4135 2.3269 2.1058 2.3558 .96310
1.24095 1.30017 1.12141 1.24332 1.15281 1.03265 1.20612

N 104 104 104 104 104 104 104 104

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4.2.2 Regression Models

In order to investigate and evaluate the proposed relationship of attributes and
purchase intention the hypotheses were tested using simple linear regression
analysis. The results of the test are summed up as under: 4.2.2.1 The Impact of
“Expertise” The first question of this study is aimed at examining the impact of
―Expertise‖ on the purchase intention of consumers as a result of viewing celebrity
endorsed advertisements. Simple linear regression is used to empirically test the
hypothesis. The table below represents the results of regression analysis of
relationship between Expertise and purchase intention of consumers (H2a).
Model Summary Std. Error of the R Square Estimate Change .88957 ANOVA Model 1
Regression Residual Total
a. Predictors: (Constant), Expertise b. Dependent Variable: Purchase Intension
b b

Model

R Square

Adjusted R Square .147

Change Statistics F Change 18.730 df1 1 df2 102 Sig. F Change .000

.394

.155

.155

Sum of Squares

df

Mean Square 14.822 .791

Sig.
a

14.822 80.716 95.538

1 102 103

18.730

.000
Table 15: Model Summary of Expertise

The results show that the relationship between expertise and purchase intention is
quite reasonable (R=.394), only 14.7% variance (Adjusted R2). 14.7% of purchase
intention variability is explained by expertise. This means that 85.3% of the
variation in purchase intention cannot be explained by expertise alone. Therefore,
there must be other variables that may influence purchase intention. F=18.73, one
tailed p < .001. The regression equation for predicting the purchase intention on
the basis of expertise value is:
 

Overall, the regression model was quite good with

YPI = 1.507 + .306 * XEX

YPI refers to predicted score on Purchase Intention XEX refers known score on
Expertise

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Coefficients Model Unstandardized Coefficients B 1 (Constant) Expertise 1.507 .306
Std. Error .173 .071 .394
a

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Standardized Coefficients Beta

Sig.

8.711 4.328

.000 .000

a. Dependent Variable: Purchase Intension

Table 16: Coefficients of Expertise

The result obtained through the regression analysis regarding direct relationship
between the two variables suggest that if the source is more expert then it may
have significant impact on consumers purchase intention (β coefficient of
―Expertise‖ = .306). 4.2.2.2 The Impact of “Trustworthiness” The second question
examines the impact of ―Trustworthiness‖ on the purchase intention of consumers.
The table below represents the results of simple linear regression analysis of
relationship between trustworthiness and purchase intention of consumers (H2b).

Model

R Square

Adjusted R Square .135

Model Summary Std. Error of the R Square Estimate Change .89579 ANOVA
b

Change Statistics F Change df1 df2 Sig. F Change .000

.379

.143

.143

17.059

1
102

Model 1 Regression Residual Total

Sum of Squares

df

Mean Square

Sig.
a

13.689 81.850 95.538

1 102 103

13.689 .802

17.059

.000

a. Predictors: (Constant), Trustworthiness b. Dependent Variable: Purchase

Intension

Table 17: Model Summary of Trustworthiness

The results show that the relationship between trustworthiness and purchase
intention is quite reasonable (R=.379), only 13.5% variance (Adjusted R2). 13.5% of
purchase intention variability is explained by trustworthiness. The analysis once
again verifies the positive relationship between trustworthiness and purchase
intention. Overall, the regression model was quite good with (F=17.05), one tailed
p < .001.

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Coefficients Model Unstandardized Coefficients B 1 (Constant) Trustworthiness 1.491

.280 Std. Error .183 .068

Standardized Coefficients Beta

Sig.

8.144 .379 4.130

.000 .000

a. Dependent Variable: Purchase Intension

Table 18: Coefficients of Trustworthiness

The regression equation for predicting the purchase intention on the basis of
trustworthiness value is:

YPI = 1.491 + .280 * XTW

  YPI refers to predicted score on Purchase Intention XTW refers known score on
Trustworthiness

The regression analysis result state the direct proportional relationship between
the two variables. If the source is more trustworthy then it will have significant
impact on consumers purchase intention (β coefficient of ―trustworthiness‖ = .280).

Hence both hypotheses from source credibility model: H2a and H2b are analysed and
supported through empirical test. Both the variables ―Expertise‖ (14.7%) and
―Trustworthiness‖ (13.5%) show positive results on the purchase intention.
Therefore both the hypotheses are accepted.

H2a: Expertise of the celebrity affects the purchase intention of the consumer H2b:
Trustworthiness of the celebrity affects the purchase intention of the consumer

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4.2.2.3 The Impact of “Similarity” Similarity is an attribute from source

attractiveness model. This question examines the impact of similarity on the
purchase intention of consumers. The table below represents the results of simple
linear regression analysis in order to test the hypothesis (H2c).
Model Summary Std. Error of the R Square Estimate Change .86273 ANOVA Model 1
Regression Residual Total
a. Predictors: (Constant), Similarity b. Dependent Variable: Purchase Intension
b b

Model

R Square

Adjusted R Square .198

Change Statistics F Change df1 df2 Sig. F Change .000

.453

.205

.205

26.358

102

Sum of Squares

df

Mean Square

Sig.
a

19.619 75.920 95.538

1 102 103

19.619 .744

26.358
.000

Table 19: Model Summary of Similarity

The results show that the relationship between similarity and purchase intention is
quite reasonable (R=.453), only 19.8% variance (Adjusted R2). 19.8% of purchase
intention variability is explained by similarity. The analysis derives the positive
relationship between similarity and purchase intention. (F=26.35) , one tailed p
< .001.
Coefficients Model Unstandardized Coefficients B 1 (Constant) Similarity 1.207 .389
Std. Error .203 .076 .453
a

Overall, the regression model was pretty good with

Standardized Coefficients Beta

Sig.

5.950 5.134

.000 .000

a. Dependent Variable: Purchase Intension

Table 20: Coefficients of Similarity

he regression equation for predicting the purchase intention on the basis of

similarity value is:

YPI = 1.207 + .389 * XSM

  YPI refers to predicted score on Purchase Intention XSM refers known score on
Similarity

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The regression analysis result state the direct proportional relationship between
the two variables. If the source is more trustworthy then it will have significant
impact on consumers purchase intention (β coefficient of ―similarity‖ = .389).

4.2.2.4 The Impact of “Familiarity” Familiarity is a next variable from source

attractiveness model. In this question we will analyse the impact of familiarity on
the purchase intention of consumers. The table below represents the results of
simple linear regression analysis in order to test the hypothesis (H2d).
Model Summary Std. Error of the R Square Estimate Change .84967 ANOVA Model 1
Regression Residual Total
a. Predictors: (Constant), Familiarity b. Dependent Variable: Purchase Intension
b b

Model

R Square

Adjusted R Square .222

Change Statistics F Change df1 df2 Sig. F Change .000

.479

.229

.229

30.336

102

Sum of Squares

df

Mean Square

Sig.
a

21.901 73.638 95.538

1 102 103
21.901 .722

30.336

.000

Table 21: Model Summary of Familiarity

The results show that the relationship between familiarity and purchase intention
is quite reasonable (R=.479), only 22.2% variance (Adjusted R2). 22.2% of purchase
intention variability is explained by similarity. The analysis derives the positive
relationship between familiarity and purchase intention. (F=30.33) , one tailed p <
.001.
Coefficients Model Unstandardized Coefficients B 1 (Constant) Familiarity 1.259 .
371 Std. Error .183 .067 .479
a

Overall, the regression model was significant with

Standardized Coefficients Beta

Sig.

6.892 5.508

.000 .000

a. Dependent Variable: Purchase Intension

Table 22: Coefficients of Familiarity

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The regression equation for predicting the purchase intention on the basis of
familiarity value is:

YPI = 1.259 + .371 * XFM

  YPI refers to predicted score on Purchase Intention XFM refers known score on
Familiarity

The regression analysis result state the direct proportional relationship between
the two variables. If the source is more familiar then it will have significant
impact on consumers purchase intention (β coefficient of ―similarity‖ = .371).
4.2.2.5 The Impact of “Likeability” Likeability is the next variable from source
attractiveness model. In this question we will analyse the impact of likeability on
the purchase intention of consumers. The table below

represents the results of simple linear regression analysis in order to test the
hypothesis (H2e).

Model

R Square

Adjusted R Square

Model Summary Std. Error of the R Square Estimate Change .89643 ANOVA
b

Change Statistics F Change df1 df2 Sig. F Change .000

.377
a

.142

.134

.142

16.890

102

Model 1 Regression Residual Total

Sum of Squares
df

Mean Square

Sig.
a

13.572 81.966 95.538

1 102 103

13.572 .804

16.890

.000

a. Predictors: (Constant),Likeability b. Dependent Variable: Purchase Intension

Table 23: Model Summary of Likeability

The results show that the relationship between likeability and purchase intention
is quite reasonable (R=.142), only 13.4% variance (Adjusted R2). 13.4% of purchase
intention variability is explained by likeability. The analysis derives the
positive relationship between familiarity and purchase intention. (F=30.33) , one
tailed p < .001. Overall, the regression model was significant with

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Coefficients Model Unstandardized Coefficients B 1 (Constant) Likeability 1.421 .

315 Std. Error .199 .077

Standardized Coefficients Beta

Sig.

7.149 .377 4.110

.000 .000

a. Dependent Variable: Purchase Intension

Table 24: Coefficients of Likeability

The regression equation for predicting the purchase intention on the basis of
likeability value is:

YPI = 1.421 + .315 * XLK

  YPI refers to predicted score on Purchase Intention XLK refers known score on
Likeability

The regression analysis result state the direct proportional relationship between
the two variables. If the source is more familiar then it will have significant
impact on consumers purchase intention (β coefficient of ―similarity‖ = .315).
Hence all three hypotheses from source attractiveness model: H2c, H2d and H2e are
analysed and supported through empirical test. The variables ―Similarity‖ (20.5%)
and ―Familiarity‖ (22.9%) and ―Likeability‖ (14.2%) show positive results on the
purchase intention. Therefore all three of the hypotheses are accepted.
H2c: Similarity between the celebrity and consumer affects the purchase intention
of the consumer. H2d: Familiarity among the consumers affects the purchase
intention of the consumer. H2e: Likeability among the consumers affects the
purchase intention of the consumer.

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4.2.2.6 The Impact of Product Match up on Purchase Intention This hypothesis

intends to examine the impact of Product match up on the purchase intention of the
consumers. The regression analysis represents relatively low impact on the purchase
intention of consumers (R = .257) with considerably low (R2 adjusted = .057).
Resultantly, It can be inferred from the regression analysis that Product match up
accounts for only 5.7% of variance in purchase intention value that is very low as
compared to other variables. Overall, the regression model was quite moderate with
(F=7.20), one tailed p < .001.

Model Summary Model 1 R

a

R Square

Adjusted R Square .057

Std. Error of the Estimate .93535

R Square Change .066

b

Change Statistics F Change df1 df2

Sig. F Change .008

.257

.066

7.202

102

ANOVA Model 1 Regression Residual Total

a. Predictors: (Constant), Credibility b. Dependent Variable: Purchase Intension

Sum of Squares 6.301 89.237 95.538

df 1 102 103

Mean Square 6.301 .875

F 7.202

Sig. .008
a

Table 25: Model Summary of Matchup

The regression equation for predicting the purchase intention on the basis of
Match-up is:

YPI = 1.649 + .240 * XMU

  YPI refers to predicted score on Purchase Intention XMU refers known score on
Match up
Coefficients Model Unstandardized Coefficients B 1 (Constant) Match up 1.649 .240
Std. Error .209 .089 .257
a

Standardized Coefficients Beta

Sig.

7.888 2.684

.000 .008

a. Dependent Variable: Purchase Intension

Table 26: Coefficients of Matchup

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The regression analysis result state the direct proportional relationship between
the two variables. If the attributes of source matches up more then it will have
positive impact on consumers purchase intention (β coefficient of ―Match-up‖ = .
240). On the basis of above regression analysis it is proved that ―Match-up‖ (5.7%)
show positive results on the purchase intention. Although the impact is considered
to be less but it lays positive impact on the purchase intention. Therefore the
hypothesis is accepted.

H2f: Product Fit/Match with the celebrity affects the purchase intention of the
consumer

4.2.2.7 The Impact of Meaning transfer on Purchase Intention This hypothesis

intends to examine the impact of meaning transfer on purchase intention of
consumers. The regression analysis shows that this variable has least impact on the
purchase intention as compared to other variables. (R = .200) with almost minimal
(R2 adjusted = .031). Therefore, on the basis of results from regression analysis
and considering the variance of 3.1% it can be said that it is the least important
variable in order to influence purchase intention. Overall, the regression model
was modest with (F=4.267), one tailed p < .001.

Model Summaryb Model 1 R .200a R Square .040 Adjusted R Square .031 Std. Error of
the Estimate .94818 ANOVAb Model 1 Regression Residual Total
a. Predictors: (Constant), Credibility b. Dependent Variable: Purchase Intension

R Square Change .040

Change Statistics F Change df1 df2 4.267 1 102

Sig. F Change .041

Sum of Squares 3.836 91.702 95.538

df 1 102 103

Mean Square 3.836 .899

F 4.267

Sig. .041a

Table 27: Model Summary of Meaning Transfer

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The regression equation for predicting the purchase intention on the basis of
Meaning transfer is:

YPI = 1.777 + .160 * XMT

  YPI refers to predicted score on Purchase Intention XMU refers known score on
Meaning transfer
Coefficients Model Unstandardized Coefficients B 1 (Constant) Meaning transfer
1.777 .160 Std. Error .205 .077 .200
a

Standardized Coefficients Beta

Sig.

8.676 2.066

.000 .041

a. Dependent Variable: Purchase Intension

Table 28: Coefficients of Meaning Transfer

The regression analysis result state the direct proportional relationship between
the two variables. If the source is capable of transferring the meaning to the
product then it will have positive impact on consumers purchase intention (β
coefficient of ―Meaning transfer‖ = .160). On the basis of above regression
analysis it is proved that ―Meaning transfer‖ (3.1%) show positive results on the
purchase intention. Although the impact is least as compared to other attributes
but it is represents the positive impact on the purchase intention. Therefore the
hypothesis is accepted.

H2g: Meaning Transfer from the celebrity to the product affects the purchase
intention of the consumer

4.2.3 Summary
The overall linear regression analysis proves the positive relationship between
purchase intention and seven different attributes namely expertise,
trustworthiness, similarity, familiarity, likeability, match-up and meaning
transfer. The figure () illustrates that linear regression assumptions are met and
therefore it can be stated that all these attributes have positive effect on
purchase intention of consumers.

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Figure 15: Residual Plots of Hypothesized Relationships

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4.2.4 Descriptive statistical Analysis of Attributes

As a consumer, do you consider “Expertise” of the celebrity as an attribute that
can influence your purchase decision? (Expertise refers to the level of knowledge,
experience and expertise a celebrity has in particular field) The aim of this
question is to evaluate if ―Expertise‖ of the celebrity as an attribute can
influence their purchase decision. Majority of the respondents (39.4%) strongly
agree that expertise of the celebrity endorser can be an important factor in
influencing their purchase decision. Another 33.7% of the respondents slightly
agree to the same statement that means it may have a little impact on their
purchase decision. However, 10.6% of the respondents are unsure about the impact of
expertise on their purchase decision. Only 8.7% of the respondents slightly
disagree and 7.7% completely disagree to the statement. Overall, using the
descriptive analysis, it can be said that Expertise can influence the purchase
intention of the consumers. Table29: Descriptive Statistical Analysis of Expertise
Attribute Expertise Mean 2.11 Mode 1 Std. Dev 1.24

Table 30: Expertise of Celebrity and Purchase Intention Valid Agree Slightly agree
Not sure Slightly disagree Disagree Total Frequency 41 35 11 9 8 104 Percent 39.4
33.7 10.6 8.7 7.7 100.0 Valid Percent 39.4 33.7 10.6 8.7 7.7 100.0 Cumulative
Percent 39.4 73.1 83.7 92.3 100.0

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Figure 16: Expertise of Celebrity and Purchase Intention As a consumer, do you

consider “Trustworthiness” of the celebrity as an attribute that can influence your
purchase decision? (Trustworthiness refers to the Honesty and believability of the
celebrity) The aim of this question is to evaluate the impact of ―Trustworthiness‖
of the celebrity at influencing the purchase decision of consumers. Majority of the
respondents (41.3%) slightly agree that trustworthiness of the celebrity can
influence their purchase decision. Secondly, another 27.9% of the respondents
strongly agree to the statement that means they consider the trustworthiness of the
celebrity while making their purchase decision. However, 7.7% of the respondents
are unsure about the impact of trustworthiness on their purchase decision. Only
12.5% of the respondents slightly disagree and 10% completely disagree to the
statement. Overall, using the descriptive analysis, it can be said that
Trustworthiness can influence the purchase intention of the consumers. Table 31:
Descriptive Statistical Analysis of Trustworthiness Attribute Trustworthiness Mean
2.36 Mode 2.00 Std. Dev 1.30

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Table 32: Trustworthiness of Celebrity and Purchase Intention Valid Agree Slightly
agree Not sure Slightly disagree Disagree Total Frequency 29 43 8 13 11 104 Percent
27.9 41.3 7.7 12.5 10.6 100.0 Valid Percent 27.9 41.3 7.7 12.5 10.6 100.0
Cumulative Percent 27.9 69.2 76.9 89.4 100.0

Figure 17: Trustworthiness of Celebrity and Purchase Intention

As a consumer, do you think the sense of “Similarity” between you and the celebrity
endorser can influence your purchase decision for a certain product or service?
(Similarity refers to the sense of similarity a consumer feels with a celebrity)
The aim of this question is to evaluate the impact of ―Similarity‖ on the purchase
decision of consumers. Majority of the respondents (49%) slightly agree that sense
of similarity between the celebrity and them can influence their purchase decision.
Secondly, only 16.3% of the respondents strongly agree that means they feel
similarity as a factor to influence their purchase decision. On the other hand,
18.3% of the respondents are unsure about the sense of similarity on their purchase
decision. Only 7.7% of the respondents slightly disagree and

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8.7% completely disagree. Overall, using the descriptive analysis, it can be said
that ―Similarity‖ may influence the purchase intention of the consumers. Table 33:
Descriptive Statistical Analysis of Similarity Attribute Similarity Mean 2.43 Mode
2.00 Std. Dev 1.12

Table 34: Similarity of Celebrity and Purchase Intention Valid Agree Slightly agree
Not sure Slightly disagree Disagree Total Frequency 17 51 19 8 9 104 Percent 16.3
49.0 18.3 7.7 8.7 100.0 Valid Percent 16.3 49.0 18.3 7.7 8.7 100.0 Cumulative
Percent 16.3 65.4 83.7 91.3 100.0

Figure 18: Similarity of Celebrity and Purchase Intention

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As a consumer, do you consider the “Familiarity” of the celebrity as an attribute

that can influence your purchase decision for a certain product or service? This
question aims at evaluating the impact of celebrity‘s ―Familiarity‖ on the purchase
intention of consumers. Majority of the respondents (46.2%) slightly agree that
familiarity of the celebrity can influence their intention to purchase. 22.1% of
the respondents strongly agree that knowness of the celebrity can influence their
purchase intention. Interestingly, 10.6% of the respondents are unsure 10.6%
slightly disagree and 10.6% completely disagree to the statement that familiarity
can be an important factor to influence their purchase intention. Based on the
results it was found that it may influence the purchase intention of the consumers
to an extent. Table 35: Descriptive Statistical Analysis of Familiarity Attribute
Familiarity Mean 2.41 Mode 2 Std. Dev 1.24

Table 36: Familiarity of Celebrity and Purchase Intention Valid Agree Slightly
agree Not sure Slightly disagree Disagree Total Frequency 23 48 11 11 11 104
Percent 22.1 46.2 10.6 10.6 10.6 100.0 Valid Percent 22.1 46.2 10.6 10.6 10.6 100.0
Cumulative Percent 22.1 68.3 78.8 89.4 100.0

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Figure 19: Familiarity of Celebrity and Purchase Intention As a consumer, do you

consider the “Likeability” of the celebrity as an attribute that can influence your
purchase decision for a certain product or service? (Likeability refers to the
level of celebrity’s fame in the public opinion and how popular the celebrity is)
This question aims at evaluating the impact of celebrity‘s ―Likeability‖ on the
purchase intention of consumers. Majority around half of the respondents (45.2%)
slightly agree that likeability of the celebrity is likely to influence their
purchase intention. 23.1% of the respondents strongly agree that their purchase
intention is affected if their favourite celebrity id endorsing the product or
service. 15.4% of the respondents are unsure about the it while 8.7% slightly
disagree and 7.7% completely disagree to the statement. Overall, it was found that
likeability is most likely to influence the purchase intention of the consumers if
their favourite celebrity is endorsing the product or a celebrity.

Table37: Descriptive Statistical Analysis of Likeability Attribute Matchup Mean

2.32 Mode 2 Std. Dev 1.15

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Valid Agree Slightly agree Not sure

Table 38: Likeability of Celebrity and Purchase Intention Frequency Percent Valid
Percent Cumulative Percent 24 47 16 9 8 104 23.1 45.2 15.4 8.7 7.7 100.0 23.1 45.2
15.4 8.7 7.7 100.0 23.1 68.3 83.7 92.3 100.0

Slightly disagree Disagree Total

Figure 20: Likeability of Celebrity and Purchase Intention

As a consumer, do you think the “Match” between the celebrity and the product can
an important attribute in influence your purchase decision for a certain product or
service? (Fit/Match refers to the level how well the fit between the celebrity and
the product is) This question aims at investigating if it is important to have
something in common between the celebrity and the product being endorsed in order
to influence consumers purchase intention. Majority, nearly half of the respondents
(46.2%) slightly agree that Product-

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celebrity match-up can influence their purchase intention. Another 28.8% of the
respondents strongly agree that they look for commonness between the celebrity and
the product. 15.4% of the respondents are unsure while only 4.8% slightly disagree
and 4.8% completely disagree to the product-celebrity match up phenomena. Overall,
it was found that 75% of respondents consider product-celebrity match-up as a
factor to influence their purchase intention while only rest 25% are either not
sure, slightly disagree or completely disagree. Therefore it can be said that its
important the attributes of product should match with the celebrity in order to
influence their purchase intention. Table39: Descriptive Statistical Analysis of
Matchup Attribute Matchup Mean 2.10 Mode 2 Std. Dev 1

Table 40: Matchup of Celebrity and Purchase Intention Valid Agree Slightly agree
Not sure Slightly disagree Disagree Total Frequency 30 48 16 5 5 104 Percent 28.8
46.2 15.4 4.8 4.8 100.0 Valid Percent 28.8 46.2 15.4 4.8 4.8 100.0 Cumulative
Percent 28.8 75.0 90.4 95.2 100.0

Figure 21: Matchup of Celebrity and Purchase Intention

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Do you think celebrities can provide or transfer meaning to the product and
influence your purchase intentions based on celebrity’s age, gender and lifestyle?
(Meaning Transfer refers to the meaning a celebrity brings or transfers to a
certain product with the help of their personality and lifestyle) This question is
asked to the respondents to check whether associating a celebrity can bring meaning
to the product or service being endorsed by him thereby influencing consumer
purchase intention. The majority of the respondents (35.6%) slightly agree that
celebrities can transfer meaning to a product that can influence their purchase
intention. Another 26.9% of the respondents strongly agree that their purchase
intention is affected through the meaning transfer from celebrity to the product.
However, considerably more 21.2% of respondents are unsure. On the other hand 7.7%
of the respondents slightly disagree and 8.7% completely disagree with influence of
meaning transfer process. Overall, it was found that 62.5% of respondents see
meaning transfer as a factor to influence their purchase intention while 37.5% are
either not sure, slightly disagree or completely disagree. Therefore it can be said
that meaning transfer process is likely to influence the purchase intention of most
of the consumers. Table 41: Descriptive Statistical Analysis of Meaning Transfer
Attribute Meaning Transfer Mean 2.35 Mode 2 Std. Dev 1.20

Table 42: Meaning Transfer of Celebrity and Purchase Intention Valid Agree Slightly
agree Not sure Slightly disagree Disagree Total Frequency 28 37 22 8 9 104 Percent
26.9 35.6 21.2 7.7 8.7 100.0 Valid Percent 26.9 35.6 21.2 7.7 8.7 100.0 Cumulative
Percent 26.9 62.5 83.7 91.3 100.0

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Figure 22: Meaning Transfer of Celebrity and Purchase Intention

In this section, the respondents were asked to rate the self-perceived importance
of each attribute as a factor to influence their purchase decision. Each of the six
attributes was evaluated on a scale ranging from 1, Not at all important, to 5,
extremely important. The results were analysed using the descriptive frequency
analysis through SPSS. The results of respondents‘ perceived importance are
averaged and represented in the table below.

Table 43: Descriptive Statistical Analysis of Each Attribute Variable/Attribute

Expertise Trustworthiness Similarity Likeability Product Match up Meaning transfer
Mean 4.22 4.11 3.06 3.34 3.00 3.18 Std. Dev .944 .927 1.05 1.13 1.26 1.18 Ranking 1
2 5 3 6 4

The results of the self-perceived importance of attribute (Mean) shows that

Expertise (4.22) is the most important attribute. Second important attribute is
Trustworthiness (4.11). Likeability (3.34) is ranked third and Meaning transfer
(3.14) at fourth. Interestingly, Similarity (3.06) and product match-up (3.00) are
very closely followed by each other. However, Product match-up is considered to be
the least important attribute rated by the respondents (See Table below).

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Figure 23: Graphical Representation of Importance of Each Attribute

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4.3 Research Question 3

The models used for evaluating purchase intention consists multi item constructs.
Three different questions were asked to the respondents in order to evaluate the
impact of celebrity endorsers on their purchase intention. Therefore, in order to
check the reliability of the constructs the calculation of Cronbach‘s α is
required. The value of constructs should be <0.7 in order to be valid. In this case
the findings show that the constructs are valid since the value is more than 0.7
Table 44: Reliability test for Purchase Intention Construct Purchase Intension
Number of Items 3 Cronbach's α .916 Mean 2.15

The three questions asked to the respondents in the questionnaire are as follows:
PI 01 I’m likely to purchase products or services that have been endorsed by
celebrities. PI02 I do purchase products and services endorsed by celebrities. PI03
In overall, I’m happy with purchasing products or services advertised by
celebrities. The respondents were asked to rate each of these questions on the
likert scale ranging 1 (Agree) to 5 (strongly disagree). Table 45: Statistical
Analysis “Purchase Intention 01” Frequency Agree Slightly agree Not sure Slightly
disagree Disagree Total 46 27 18 8 5 104 Percent 44.2 26.0 17.3 7.7 4.8 100.0 Valid
Percent 44.2 26.0 17.3 7.7 4.8 100.0 Cum. Percent 44.2 70.2 87.5 95.2 100.0

The results from the descriptive frequency analysis for question 1 states that
majority of the respondents (44.2%) are likely to purchase products endorsed by
celebrities. 26% of

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respondents slightly agree to the statement as well. However, 17.3% of respondents

are unsure whether they are likely to purchase products endorsed by celebrities. On
the other hand, only 7.7% of respondents slightly disagree and 4.8% disagree about
the influence of celebrities on their likeliness to buy products under celebrity
influence. Table 46: Statistical Analysis “Purchase Intention 02” Frequency Agree
Slightly agree Not sure Slightly disagree Disagree Total 37 26 32 5 4 104 Percent
35.6 25.0 30.8 4.8 3.8 100.0 Valid Percent 35.6 25.0 30.8 4.8 3.8 100.0 Cum.
Percent 35.6 60.6 91.3 96.2 100.0

The analysis results from question 2 suggests that majority of the respondents
(35.6%) do actually purchase products under the influence of celebrities. 25% of
respondents slightly agree that means they do sometimes buy the endorsed products
as well. However, a major number of respondents 30.8% are not sure whether they
purchase the products under the influence by celebrities or not. Relatively high
degree of unsure respondents 30.8% might bias the results. On the other hand, only
very less number 4.8% of respondents disagree and 3.8% disagree about the influence
of celebrities on their purchase decision. However, overall 60.6% of respondents
show positive response by stating that they buy products and services endorsed by
celebrities. Table 47: Statistical Analysis “Purchase Intention 03” Frequency Agree
Slightly agree Not sure Slightly disagree Disagree Total 40 31 24 3 6 104 Percent
38.5 29.8 23.1 2.9 5.8 100.0 Valid Percent 38.5 29.8 23.1 2.9 5.8 100.0 Cum.
Percent 38.5 68.3 91.3 94.2 100.0

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The results from analysis of question 3 represent the overall happiness or

satisfaction level of respondents after buying products or services endorsed by
celebrities. The analysis shows that majority of the respondents (38.5%) strongly
agree that they are happy after their purchases of products endorsed by
celebrities. While 29.8% of respondents are likely to be happy for their purchases
as they slightly agree as well. Again 23.1% of people are neutral about their
purchase decisions for the products endorsed by celebrities. Interestingly, only a
few number of people slightly disagree (2.9) and disagree (5.8%) are not happy with
their purchase decisions made under celebrity influence.

4.3.1 Testing the Hypothesis

In order to check the overall influence of celebrities on the purchase decision of
consumers the results from above mentioned question were combined together using
the ―compute variable‖ function SPSS. The results from above three questions
combined together are as follows: Table 48: Overall Purchase Intention Frequency
Percent Valid Percent 32 8 7 7 14 11 12 5 2 2 1 1 2 104 30.8 7.7 6.7 6.7 13.5 10.6
11.5 4.8 1.9 1.9 1.0 1.0 1.9 100.0 30.8 7.7 6.7 6.7 13.5 10.6 11.5 4.8 1.9 1.9 1.0
1.0 1.9 100.0

Valid 1 (Agree) 1.333 1.666 2 (Slightly agree) 2.333 2.666 3 (Not Sure) 3.333 3.666
4 (Slightly disagree) 4.333 4.666 5 (Disagree) Total

Cum. Percent 30.8 38.5 45.2 51.9 65.4 76.0 87.5 92.3 94.2 96.2 97.1 98.1 100.0

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Figure 24: Overall Purchase Intention of Consumers for Celebrity Endorsements

Table 49: Descriptive Statistics Overall Purchase Intention Mean Purchase Intension
2.1538 Std. Deviation .96310 N 104

The overall results for purchase intention shows that celebrities can influence the
purchase decision of the people by appearing with a product in an advertisement.
The results show that most of the consumers are likely to buy or buy the products
endorsed by celebrities. Moreover many of the customers are happy or satisfied with
the purchases they have done under the influence of celebrity that is a positive
sign. The level of after purchase satisfaction builds the trust on the part of the
celebrity and the product and influences future purchase decisions. The results
also show that there are low numbers of people who are actually not influenced or
satisfied with their purchase decisions under celebrity influence.

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DISCUSSION

This chapter provides the reader with clear justification of the results and direct
answers to the research questions. The results will be discussed and compared with
the existing empirical research available.

5.1 Current State of Consumer Perception about Celebrity Endorsements

Based on the research findings the author accepts that ―Celebrity endorsements are
a ubiquitous feature of modern marketing‖ (McCraken 1989). The findings from the
research extensively support the statement. People come across celebrity endorsed
advertisement in everyday life. Majority of the respondents (68.5%) stated that
they come across celebrity endorsed advertisements very often (Appendix 4).
Additionally, the respondents feel that TV advertisements (81.1%) is the more
likely to carry celebrity endorsed advertisements followed by magazines (31.1%),
Internet (22.3%) and newspapers (19%) (Appendix 5). This proves that, recent
technological advances in the media and satellite television has increased the
power of advertisement and made advertising more challenging (Croft, Dean and
Kitchen 1999). The fierce competition between brands has encouraged marketers to
use celebrities as endorsers in order to attract more consumer attention (Croft,
Dean and Kitchen 1999). Undoubtedly the findings prove that celebrities are very
successful at attracting more consumer attention towards the product they are
endorsing. When asked 83.6% of respondents agreed that celebrity endorsed
advertisement are more effective at attracting their attention as compared to non-
celebrity advertisements (Figure). Additionally, the respondents state that they
find bollywood actors and actresses (74%) more influential as celebrity endorsers
followed by sport stars including cricketers (39.4%) (Appendix 6). As Patzer (1985)
stated that ―attractiveness is an informational cue involves effects that are
subtle, pervasive, and inescapable‖ The results state that celebrity endorsements
are more attractive that means celebrities attracts the attention of consumers
towards the product by appearing with them or endorsing them in an advertisement.
Attracting the consumer attention is the first step to influence him to buy the
product. Moreover, Celebrity endorsed advertisement deliver higher degree of
appeal, attention and recall rate as compared to the non-celebrity advertisements
(Cooper, 1984; Dean and Biswas, 2001) The research findings proves this by stating
that 87.5% of the respondents either agree or slightly agree that

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celebrity endorsed advertisements enables them to recall and recognise the products
more promptly. Celebrity endorsed advertisement have the potential to influence the
cognitive processes of consumers (Wilkes and Valencia 1989). Interestingly the
findings state that 72.1% of respondents said that they find celebrity endorsed
advertisements more influential as compared to non-celebrity advertisements. Thus
it can be said that employing a celebrity in an advertisement can influence the
customers to buy the product or service endorsed by him. The findings support the
fact that ―the power of the celebrities lies in their ability to influence the
consumers, even if they are physically and socially far from a common consumer
(Choi & Rifon, 2007).

5.2 Relationship of Celebrity Attributes with Purchase Intention

5.2.1.1 Expertise Expertise of the celebrity endorser positively affects the
consumers’ intention to purchase products or services endorsed by him Result of the
study proves that expertise of the celebrity endorser positively influences the
purchase intention of the consumers. The result states that the more expert the
celebrity is in the category of product being endorsed by him, it is more likely
that endorsed product will be purchased by the consumers. The strength of
relationship between expertise and purchase intention is relatively sensible (R= .
394). The result from the regression analysis shows that 14.7% of purchase
intention variability is explained by expertise. That proves if the expertise of
the endorser is more it is likely to affect the purchase intention of consumers.
The descriptive frequency analysis results state that 39.4% of respondents agreed
that expertise of the celebrity endorser affects their purchase intention. However,
when the respondents were asked to rate each of the attribute independently
―Expertise‖ of the celebrity is ranked as the highest possible attribute (Mean
4.22) to influence their purchase decision (Appendix). Overall it supports that
Expert celebrities are more persuasive (Aaker and Myers 1987) and may influence the
consumer purchase intention (Ohanian 1991).

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5.2.1.2 Trustworthiness Trustworthiness of the celebrity endorser positively

affects the consumers’ intention to purchase products or services endorsed by him
The result from the study proves that trustworthiness of the celebrity positively
influences the purchase intention of the consumers. Regression analysis supports
the positive relationship between trustworthiness and purchase intention (R = .
379). It states that 13.5% of purchase intention variability is defined by
trustworthiness. The result states that if the celebrity is more trustworthy then
the consumers are more likely to purchase the product. The descriptive frequency
analysis results state that 27.9% of respondents agreed that they consider
trustworthiness of the celebrity as a factor to influence their purchase intention.
Independently respondents rated trustworthiness as rank 2 (Mean 4.11) in order to
influence their purchase intention (Appendix). The study therefore supports the
experiment by Miller and Baseheart (1969) found out that if the perceived
trustworthiness of the source is high; attitude change is more likely to occur.

5.2.1.3 Similarity Similarity with the celebrity endorser positively affects the
consumers’ intention to purchase products or services endorsed by him The result
from the study proves that being similar or feeling some similarity with the
celebrity positively influences the purchase intention of the consumers. Regression
analysis supports the positive relationship between trustworthiness and purchase
intention (R = .453). It states that 19.5% of purchase intention variability is
defined by similarity. The result states that if the celebrity looks more similar
or if the consumers feel something common in between them then they are more likely
to purchase the product. The descriptive frequency analysis results state that
16.3% of respondents agreed that they consider trustworthiness of the celebrity as
a factor to influence their purchase intention. Evaluating independently,
respondents ranked ―Similarity‖ as 4th (Mean 3.06) influential attribute to
influence their purchase decision (Appendix). The results support that perceived
resemblance between the source and the respondent influences their intention to
purchase (Erdogan 1999).

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5.2.1.4 Familiarity Familiarity of the celebrity endorser positively affects the

consumers’ intention to purchase products or services endorsed by him Result of the
study proves that familiarity of the celebrity endorser positively influences the
purchase intention of the consumers. The result states that the more familiar the
celebrity, more are the chances that product endorsed by him will be purchased by
the consumers. The strength of relationship between familiarity and purchase
intention is relatively good (R= .479). The result from the regression analysis
shows that 22.2% of purchase intention variability is explained by expertise that
is more than the attributes discussed so far. That proves if the expertise of the
endorser is more it is likely to affect the purchase intention of consumers. The
descriptive frequency analysis results state that 22.1% of respondents agreed that
familiarity of the celebrity endorser affects their purchase intention. Overall the
results positively supports that familiarity of the celebrity initiates positive
perception towards the product endorsed by him and leads greater purchase intention
(Hovland and Weiss 1951) 5.2.1.5 Likeability Likeability of the celebrity endorser
positively affects the consumers’ intention to purchase products or services
endorsed by him The empirical test results of the study have found positive
relationship between likeability and purchase intention of the consumer. The
strength of relationship between familiarity and purchase intention is relatively
moderate (R= .377). The result from the regression analysis shows that 13.4% of
purchase intention variability is defined by likeability. The results state that if
the celebrity is more likeable among the consumer, the people are likely to buy
products endorsed by him. The descriptive frequency analysis results state that
23.1% of respondents agreed that familiarity of the celebrity endorser affects
their purchase intention. The result from the study supports that likeability or
fondness for the source can bring change in the buying behaviour of the consumer
(Belch and Belch 2001). 5.2.1.6 Product Match-up The Product celebrity match-up of
attributes positively affects the consumers’ intention to purchase products or
services endorsed by him According to Till and Busler (1998) the existence of
perceived 'fit' between the endorsing celebrity and the brand may influence the
consumers intention to purchase. The empirical test results of the study state
positive but low relationship between celebrity product match-up

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and purchase intention of the consumer. The strength of relationship between

familiarity and purchase intention is relatively low (R= .257). The result from the
regression analysis states that 5.7% of purchase intention variability is defined
by likeability. The regression result state that if the celebrity fits with the
product endorsed by him. There is a chance that people may buy that product. The
descriptive frequency analysis results state that 28.8% of respondents agreed that
the fit between the celebrity and the endorsed product can influence them to buy a
certain product or service. Surprisingly, respondents ranked Match-up as the least
preferred attribute rank 6th (Mean: 3.00) to influence their purchase intention.
The regression result proves the positive relationship between the product
celebrity match-up. However its impact is likely to be low as compared to other
attributes. 5.2.1.7 Meaning Transfer The meaning transfer from celebrity to the
product endorsed by them positively affects the consumers’ intention to purchase
According to McCracken (1989) Celebrities can bring meanings to the product that
can influence consumer purchase intention. The results from the research support
the statement and states positive relationship between meaning transfer and
purchase intention. However the impact of meaning transfer on consumer purchase
intention is likely to be very low as compared to other attributes tested. The
strength of relationship between meaning transfer and purchase intention is very
low (R= .200). The result from the regression analysis states that 3.1% of purchase
intention variability is defined by meaning transfer. Meaning transfer is the least
effective variable to impact the consumers‘ intention to purchase. The descriptive
frequency analysis results state that 26.9% of respondents agreed that the meaning
transfer from the celebrity to the product can influence their purchase intention.
Respondents evaluating each attribute independently ranked meaning transfer 4th
(Mean: 3.18) in influencing their purchase decision.

5.3 Impact of Celebrity Endorsements on Consumers Purchase Intention

Many researchers have talked about the effectiveness of the celebrities as
endorsers. The author in this question tried to find out if celebrities do really
impact the purchase intentions of the consumer. Many authors in the empirical
studies have argued that celebrity endorsers produced more positive attitudes and
greater purchase intentions towards the product endorsed by them as compared to a
non-celebrity endorser (Atkin and Block 1983; Petty et al. 1983; Ohanian 1991). The
findings of this research support the argument. The results from

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the research state that 76% of people agree that they buy the products endorsed by
celebrities. Respondents were asked to rate celebrities on three different
questions. Overall the result from the research approves the relationship between
celebrity endorsements and consumer purchase intention. The results state that
majority of the people are likely to purchase (70.2%), do purchase (60.6%) and are
overall happy with their purchases (68.3%) done under the influence of celebrity
endorsers. Therefore, it can be said that celebrity endorsers are likely to have a
positive effect on consumer purchase intention (Goldsmith, Lafferty and Newell
2000; Mathur, Mathur & Rangan 1997). Despite the various benefits, there are still
many potential risks involved in using celebrities as endorsers. Negative publicity
concerning the celebrity is one of the major risks associated with the celebrity
endorsement. Negative publicity about a celebrity endorser not only impacts
consumers' perception about the celebrity, but also the endorsed product (Klebba
and Unger 1982; Till and Shimp 1995) Therefore, the respondents were asked to state
if the negative publicity of a celebrity endorser can influence their intention to
purchase the products endorsed by them. The respondents gave very complicated
results. Majority of the respondents were unsure about the effect of negative
publicity on their purchase decision while some of them agreed and vice versa.
Therefore the author used the (Mean: 2.73) to come up to the conclusion. The
descriptive statistical results state that negative publicity about a celebrity
slightly affects their purchase intention (Appendix 7).

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CONCLUSION

This chapter articulates the main outcomes of the research project, examining the
extent to which the objectives are met and contribution to the existing literature
on celebrity endorsements. Managerial and theoretical implications of the research
are outlined. Finally the limitation of the current study is acknowledged and
directions for the further research are suggested.

Celebrity endorsements has changed the way advertising used to be few decades ago.
It is been accepted to be a ―ubiquitous feature of modern day marketing‖ (McCracken
1989). Celebrity endorsements business has become a multi-million dollar industry
in India (Malhotra 2005). As a result, a greater understanding of consumers‘
reactions towards celebrity endorsements can help the marketers to use it more
effectively. This research project explored the current state of Indian consumers‘
perception about celebrity endorsements. Empirically identified and tested the
celebrity attributes specific to influence purchase intention and finally examined
the impact of celebrity endorsements on purchase intention of consumers. In
accordance with the study objectives, the following conclusions are drawn. Firstly,
the research project examined and explored the current state of consumers‘
perception about celebrity endorsements. Research outcomes reveal extremely high
degree of familiarity across all age groups. Results reveal that people find
celebrity endorsements more attractive, particularly young people and teenagers.
Further, on the basis of attractiveness people find actors and actresses from
bollywood and films more influential as endorsers. Results reveal that using a
celebrity in an advertisement increases the recognition and recall rate of the
endorsed product. Overall the people believe that celebrity endorsements are more
attractive, and effective at influencing their purchase decision. Interestingly,
people know and agree that celebrities don‘t really use the products endorsed by
them. Even though, celebrity endorsements have a very positive impact on consumers‘
perceptions and attitudes towards the endorsed product. Secondly, the positive
relationship of different celebrity attributes and purchase intention of the
consumers demonstrates the effectiveness of celebrities as successful endorsers.
Although some attributes are very effective at influencing purchase intention of
consumers some are relatively low or moderate. For instance, ―familiarity‖ of the
celebrity has the highest impact on purchase intention followed by ―similarity‖,
―expertise‖, ―trustworthiness‖ and

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―likeability‖. The least important attributes to have impact are product-celebrity

―match-up‖ and ―meaning transfer‖. Controversially, in a separate test people
ranked ―expertise‖ to the most important attribute likely to impact their purchase
decision. Accordingly the other attributes were ranked as trustworthiness,
likeability, meaning transfer, similarity and product match-up. This shows that
there is a difference between what Indian consumers actually do and think. It is
also crucial to keep in mind that selection of a celebrity endorser should not only
be done over the two most important attributes but also consider the remaining as a
priority, since these may strengthen the impact of a celebrity over purchase
intention. Overall it can be said that the different attributes of the celebrities
positively affect consumers purchase intention. Thirdly and finally, empirical test
of relationship between celebrity endorsements and purchase intention satisfied the
final objective of this research project. It was empirically tested and found that
celebrity endorsers positively affect the purchase intentions of the consumers as
compared to non-celebrity endorsers. It was found out that people are more ―likely
to buy‖, ―already buy‖ and are ―happy‖ with the purchases done under the influence
of celebrities. Regarding ―negative publicity‖ of the celebrity not many people
think about it or are still unsure. The fact depicts that they actually follow
their celebrities regardless of negative publicity while some are slightly
considered about it. Overall, the results proved the effectiveness of celebrities
as endorsers. In overall, all three research objectives have been achieved leading
to better understanding of celebrity endorsements in context to India. Furthermore,
the limitations, implications and suggestions for further research are articulated
in subsequent topics.

6.1 Limitations of the study

Every research has certain limitations therefore it is necessary to acknowledge
them before moving on to generalisations of findings. The following are the few
constraints faced by the author while conducting this study. Firstly, the sample
size is relatively small to represent the larger population of India Hence the
results of this study are not sufficient enough to make concrete recommendations.
Another limitation to the research is that majority of the respondents were young
consumers under the age of 18-30. The author didn‘t get any samples from the people
above the age of 60 (senior citizens) who may have a different opinion regarding
celebrity endorsements.

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Moreover, large number respondents belonged to or represented urban part of the

population. Hence the rural sector, the major part of Indian population was left
unobserved. Therefore the results may show difference if the study is conducted on
a larger scale. Therefore the results from this research may not be used to sample
India as a whole country. Secondly, the author feels that limited time and
resources may affect the methodology of the research. The author considered and
examined the factors/attributes from the earlier literature on celebrity
endorsements. However additional research approaches qualitative study (focus
groups) could have benefited this research even more. In other words it may lead to
the determination of other relevant factors that might affect the purchase
intention of the consumers. Moreover, the author feels that time was another big
concern for the research. For a relevant successful research, 3 month time proved
to be less in order to collect and analyse the data to a much deeper level.
Thirdly, even though the quantitative method to the approach has provided the most
appropriate results for achieving the research objectives. It may also affect the
outcomes of the research. The author used online questionnaire method in order to
collect the data from the respondents. This method is not considered to very
reliable because there is no face to face interaction with the respondent and
therefore the respondents may manipulate with the data in terms of age, gender etc.
On this account, the generalisations made on outcomes of the research are
reasonable. Moreover, the elimination of above said limitations might reveal new
insights in the area of celebrity endorsements.

6.2 Theoretical Implications

The major contribution of the research is that this is the first attempt to analyse
and evaluate the impact of celebrity endorsements on purchase intentions of the
consumers. This research developed a survey instrument based on the critical
analysis of literature which was further tested to establish the validity and
reliability of the constructs. The outcomes of the research added significant value
to the existing literature by testing each of the attribute particularly in order
to examine its impact on purchase intention. The theoretical model and the survey
instrument of the study can be further used for conducting a research on broader
scale.

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6.3 Managerial Implications

From managerial implications perspective, the research outcomes bring practically
important results for marketers to consider while choosing a celebrity for an
advertisement. Firstly, the regression coefficient analysis demonstrates the extent
of each attributes impact on consumers purchase intention. Marketers can choose
celebrities according to the important attributes required to influence a set of
population. Moreover, the ability to predict purchase intention on the basis of
results obtained through regression analysis will help the marketers to choose the
perfect celebrity and to the class of product endorsed. Additionally, marketers
should bound celebrities to use the products endorsed by them since majority of
people believe that celebrities don‘t use the products they endorse. This will
increase the credibility of celebrities and product among the consumers.

6.4 Further Research

The author has come across many interesting topics while conducting this research.
In fact, some of the results from the current research generated important
questions to be explored. As mentioned in the conclusion as well, consumers tend to
think and act differently because when asked to rate the attributes independently
the consumers came up with different answers. That is why the author has not
claimed the results to be accurate. Research on the psychological and practical
aspects of consumer buying behaviour can provide marketers with deeper
understanding of the topic. Another important aspect to be explored can be how
negative publicity can affect the purchase intention of consumer with reference to
low and high involvement product and services. Negative publicity of the celebrity
associated with the product can destroy the brand and it may take lot of time to
recover the same image. Moreover, how easily people can accept a celebrity with a
negative publicity to be a brand endorser is also of special interest. Another
major area to explore is demographical area. Attitudes and perceptions of people
differ on various different basis for instance age, gender, country, income level
etc. From the marketer point of view it is important to understand that consumers
are governed by their culture and values. Moreover, the limitations highlighted in
the earlier section provide a broad platform for future research.

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APPENDICES

Appendix1: Descriptive Statistics for Each Attribute

Attribute Expertise Trustworthiness Similarity Likeability Match up Meaning

Transfer

Mean 4.2212 4.1154 3.0673 3.3462 3.0000 3.1827

Median 5.0000 4.0000 3.0000 3.0000 3.0000 3.0000

Mode 5.00 5.00 3.00 3.00 3.00 4.00

Std. deviation .94465 .92755 1.05448 1.13864 1.26184 1.18866

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Appendix 2: Respondents Profile

Sample Demographics Overall Gender: -Male -Female Age: <18 18-30 >30 Part of
Country: -Urban -Rural Occupation: -Student -Professional/Business -Unemployed
-Others

Overall 104 69 (66.3%) 35 (33.7%) 12 (11.5%) 74 (71.2%) 18 (17.3%)

93 (89.4%) 11 (10.6%)

44 (42.3%) 50 (48.1%) 2 (1.9%) 8 (7.7%)

Graphical Representation of Respondents’ Profile.

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Appendix 3: Questionnaire Dear Respondent, I‘m pursuing Masters in Management with

Marketing from Bournemouth University, England. As a part of my course I need to
submit a research project. My research project is based on ―Celebrity Endorsements
and Its Impact on Consumer Buying Behaviour‖. The questions asked in the
questionnaire are very simple and related to what we see and observe in common
daily life. Please rate the questions according to what you actually feel about
celebrity endorsements in real life. The whole questionnaire may take around 5
minutes of your precious time. I promise that your response will remain
confidential and you will not be contacted for any marketing purposes. Thank you
for your participation.

Questionnaire Demographic Profile 1. What is your age? a. Less than 18 years b. 18-
30 c. 30 and above What is your gender? a. Male b. Female What is your profession
a. Student b. Professional/Business c. Unemployed d. Others (Please Specify) Which
part of country do you live? a. Urban b. Rural

2.

3.

4.

Consumer Perception and Celebrity Endorsements 5. Which of the following medium do

you think is more likely to convey celebrity endorsed advertisements? a. TV
advertisements b. Magazines c. Internet d. Radio e. Newspapers How frequently do
you come across advertisements using celebrity endorsements? a. Often b.
Occasionally c. Rarely d. Never

6.

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What attracts you more: celebrity endorsed advertisements or non-celebrity

advertisements? a. Celebrity endorsed advertisements b. Non celebrity
advertisements 8. What type of celebrities do you think is more influential as
endorsers? a. Actors or Actresses from movies b. Sport stars including cricketers
c. Politicians d. Business persons e. Others (Please specify) 9. Does the presence
of celebrities in the advertisements help you recognise and recall product more
promptly? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
10. Do you think celebrities really use the product endorsed by them in real life?
a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 11. How do
you perceive celebrity endorsements? a. Very effective b. Effective c. Somewhat
effective d. Not at all effective 12. How influential do you think is celebrity
endorsements? a. Very influential b. Influential c. Somewhat influential d. Not at
all influential

Celebrity Attributes and Purchase Intention 13. As a consumer, do you consider

―Expertise‖ of the celebrity as an attribute that can influence your purchase
decision? (Expertise refers to the level of knowledge, experience and expertise a
celebrity has in particular field) a. Agree b. Slightly agree c. Not sure d.
Slightly disagree e. Disagree 14. As a consumer, do you consider ―Trustworthiness‖
of the celebrity as an attribute that can influence your purchase decision?
(Trustworthiness refers to the honesty and believability of the celebrity) a. Agree
b. Slightly agree c. Not sure d. Slightly disagree e. Disagree

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15. As a consumer, do you think the sense of ―Similarity‖ between you and the
celebrity endorser can influence your purchase decision for a certain product or
service? (Similarity refers to the sense of similarity a consumer feels with a
celebrity) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
16. As a consumer, do you consider the ―Familiarity‖ of the celebrity as an
attribute that can influence your purchase decision for a certain product or
service? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
17. As a consumer, do you consider the ―Likeability‖ of the celebrity as an
attribute that can influence your purchase decision for a certain product or
service? (Likeability refers to the level of celebrity‘s fame in the public opinion
and how popular the celebrity is) a. Agree b. Slightly agree c. Not sure d.
Slightly disagree e. Disagree 18. As a consumer, do you think the ―Match‖ between
the celebrity and the product can an important attribute in influence your purchase
decision for a certain product or service? (Fit/Match refers to the level how well
the fit between the celebrity and the product is) a. Agree b. Slightly agree c. Not
sure d. Slightly disagree e. Disagree 19. Do you think celebrities can provide or
transfer meaning to the product and influence your purchase intentions based on
celebrity‘s age, gender and lifestyle? (Meaning Transfer refers to the meaning a
celebrity brings or transfers to a certain product with the help of their
personality and lifestyle) a. Agree b. Slightly agree c. Not sure d. Slightly
disagree e. Disagree 20. Please rate these factors according to their importance
and effectiveness in order to influence your purchase decision. (1 being the lowest
and 5 being the highest) a. Expertise 1 2 3 4 5 b. Trustworthiness 1 2 3 4 5 c.
Similarity 1 2 3 4 5 d. Likeability 1 2 3 4 5 e. Product-celebrity match 1 2 3 4 5
f. Meaning transfer 1 2 3 4 5

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21. Which of the below given factors influence you the most to buy a product or
service endorsed by a celebrity? a. Expertise of the celebrity in the given field/
product endorsed. b. Trustworthiness of the celebrity c. Similarity between the
celebrity endorser and yourself. d. Likeability of the celebrity e. Match between
the Product and the celebrity. Celebrity Endorsements and Purchase Intention 22. Do
you feel that ―Negative Publicity‖ about a celebrity endorser can influence your
purchase decision? (For example Salman Khan is facing trial in 3 cases for killing
black bucks and chinkaras and illegal possession of arms.) a. Yes b. No c.
Sometimes d. Can‘t say 23. I‘m likely to purchase products or services that have
been endorsed by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly
disagree e. Disagree 24. I do purchase products and services endorsed by
celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e.
Disagree 25. In overall, I‘m happy with purchasing products or services advertised
by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e.
Disagree

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Appendix 4:

Appendix 5

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Appendix 6

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Appendix 7 Do you feel that Negative Publicity about a celebrity endorser can
influence your purchase intention? In this research question, the author tried to
identify how do celebrities impact the purchase intention of the customer by
appearing with a product in an advertisement. There can be many factors associated
with the effectiveness of a celebrity as an endorser. For instance negative
publicity about the celebrity may spoil the public image of celebrity that may turn
him ineffective as an endorser. Accordingly two questions were asked to the
respondents to check the hypothesis.

Firstly the respondents were asked to rate if the negative publicity about a
celebrity endorser can influence their purchase decision. The descriptive frequency
analysis of results show that majority of the respondents slightly agree (38.5%)
that negative publicity about a celebrity is likely to influence their purchase
decision. 18.3% of the respondents also strongly agree to the statement. While
10.6% of respondents are unsure, 17.3% slightly disagree and 15.4% strongly
disagree. The results don‘t show any concrete results. Overall results (Mean 2.73)
show that respondents either slightly agree or unsure about the impact of negative
publicity on their purchase intention. However the cumulative percentage suggests
that more than half 56.7% respondents observe that negative publicity may influence
their purchase decision (See table below).

Variable Negative Publicity

Mean 2.73

Median 2

Mode 2

Std. Deviation 1.35

Agree Slightly agree Not sure Slightly disagree Disagree Total

Frequency 19 40 11 18 16 104

Negative Publicity Percent Valid Percent 18.3 18.3 38.5 38.5 10.6 10.6 17.3 17.3
15.4 15.4 100.0 100.0

Cumulative Percent 18.3 56.7 67.3 84.6 100.0

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Further analysis on basis of age showed that 83.3% respondents under the age of
―slightly agree‖ that negative publicity about a celebrity can influence their
purchase decision. Respondents between the age group of 18-30 gave mixed results.
The analysis of data suggests that the youngsters are unsure about the negative
publicity‘s influence on their purchase decision. However, 94% of respondents above
the age of 30 years came up with some significant results that negative publicity
about a celebrity influences their purchase decision. Overall, the analysis on the
basis of age group suggest that people under the age of 18 and above 30 years are
more sensitive to negative information and it influences their purchase intention.
On the other hand people between the age of18-30 are either unsure or slightly
agree to the statement.

Age group cross-tabulation Count Negative Agree Publicity Slightly agree Not sure
Slightly disagree Disagree Total less than 18 years 0 10 1 0 1 12 Age 18-30 14 18
10 17 15 74 30 and above 5 12 0 1 0 18 Total 19 40 11 18 16 104

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