CHAPTER - I

1.1 INTRODUCTION

Everyday consumers are exposed to thousands of voices and images in magazines,

newspapers, and on billboards, websites, radio and television. Every brand attempts to
steal at least a fraction of a person’s time to inform him or her of the amazing and
different attributes of the product at hand. The challenge of the marketer is to find a
hook that will hold the subject’s attention. In helping to achieve this, use of celebrity
endorsers is a widely used marketing strategy.

In this modern age, people tend to ignore all commercials and advertisements while
flipping through the magazines and newspapers or viewing TV. But even then, the
glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in
advertisement and its impact on the overall brand is of great significance. In
this process, the companies hire celebrities from a particular field to feature in its
advertisement campaigns. The promotional features and images of the product are
matched with the celebrity image, which tends to persuade a consumer to fix up his
choice from a variety of brands. Although this sounds pretty simple, but the design of
such campaigns and the subsequent success in achieving the desired result calls for an
in-depth understanding of the product, the brand objective, choice of a celebrity,
associating the celebrity with the brand, and a framework for measuring the
effectiveness. Companies invest large sums of money to align their brands and
themselves with endorsers. Such endorsers are seen as dynamic with both attractive
and likeable qualities and companies plan that these qualities are transferred to
products via marcum activities.
Dictionary meaning of this word is “a famous person". A person who has
excelled in his / her field of action or activity. In our day to day activity, we perform

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many acts, may at home, at work place, on field in sports, in social life. But these
acts may be daily routine or just "acts" per say giving no extra- ordinary results, not
noticed by anybody surrounding, and not taken into notice by Media.
Celebrities are people who enjoy specific public recognition by a large number of
certain groups of people. They have some characteristic attributes like attractiveness,
extraordinary lifestyle or special skills that are not commonly observed. Thus, it can
be said that within a society, celebrities generally differ from the common people
and enjoy a high degree of public awareness.

According to Friedman and Friedman, a “celebrity endorser is an individual

who is known by the public for his or her achievements in areas other than that of
the product class endorsed”. Compared to other endorser types, famous people always
attach a greater degree of attention, recall and loyalty.

Celebrity endorsement is a popular marketing approach to making a product more

noticeable, attractive and compelling to consumers. Consumers are willing to spend
money on the products and services their favourite celebrities endorse. There is a need
to study how celebrity endorsements affect consumer’s behavioural responses.
Endorsements by celebrities have started since a long time. The very fact that their
use has continued for so long is proof enough of its immense advantages, but they
have several disadvantages too. When it comes to celebrity endorsement, the first
brand that comes to the Indian mind is that of Lux, the Beauty Bar of the Stars. Since
its inception, Lux the brand has grown positioning itself thus.

The rise in product diversity and the rivalry of products and services has increased
the amount spent on promotional initiatives by many organisations. Additionally,
many organisations are compelled to invest heavily in their marketing communication
efforts in order to compete. Traditionally; advertising has been preferred to other
elements of promotional mix. Marketers are now exploring possibilities to make
advertisements more compelling, eye – catching and noticeable to audiences.

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 The project entitled “A STUDY ON THE IMPACT OF CELEBRITY
ENDORSEMENT ON CONSUMER BUYING BEHAVIOUR WITH SPECIAL
REFERENCE TO PUTHUPALLY GRAMAPANCHAYATH” examines the
effectiveness and impacts of celebrity endorsement on consumer’s behavioural
intentions. An empirical study is carried out involving a survey of 60 respondents. This
study would focus on consumers’ purchase intention under the Impacts of
celebrity endorsement, especially the impacts of source credibility of celebrity
endorsement. Moreover, the relationships between good-looking, trustworthiness,
expertise and attractiveness of the celebrities.

1.2 OBJECTIVES OF STUDY

1. To study the role of celebrities on different brands.

2. To explore the consumer perception on different brands.
3. To identify the impact of celebrity endorsement on consumers.
4. To analyse the factor which influence the buying attitude of consumer.
5. To know the attitude of consumers towards advertisements.

1.3 IMPORTANCE OF STUDY

Consumers are over-exposed to the media nowadays. A person living in an over
populated Country will be exposing to one thousand advertisements on average per day.
But the Viewers tend to forget 80% of the information within 24 hours. In order to deal
with this, Marketers use celebrity endorsement to reinforce the marketing message. As
a celebrity endorser, they must certainly have some unique factors which allow people
to remember them, for instance they are good looking. On the other hand, consumers
usually interpret the source of marketing messages by judging whether the celebrity
Endorsers are trustworthy, expert and attractive. Finally, we can summarize what all
factors are influencing the customers buying behaviour.

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 1.4 SCOPE OF THE STUDY

The present study has focused on “the effect of celebrity endorsement on consumer
buying behaviour on brand” mainly on two prospective, i.e. celebrity and consumer.
Further, the study also covers celebrity endorsement on durable products with special
emphases given to the customers of Puthupally Gramapanchayath. The focus was on
the behavioural pattern and the impact of celebrity endorsements on the purchase
attitude of the consumers towards durable products.

1.5 METHODOLOGY

The study is designed as an exploratory one based on sampling methods

both primary and secondary data have been used in this study.

 Primary Data

The primary data has been collected through structured questionnaire on

Convenience sampling and the primary data was collected from 80
respondents who belong to different educational, occupational and income
group from the study area.

 Secondary Data

The secondary data used for the study has been collected from different sources
of literature like journals, magazines, textbooks and internet.

 Sampling size
The sample size is 80 which includes people from the ward 16 of
Puthuppally Gramapanchayat. The sampling technique used for the study is
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convenience sampling .Convenience sampling is a type of non-probability sampling
which involves the sample being drawn from that part of the population which is
close to hand.
 Universe of Study
Puthupally Gramapanchayath has been used for study.

 Statistical Tool
Simple Percentage Analysis
 Bar Chart
 Pie chart

1) Simple Percentage Analysis

Percentage refers to a special kind of ratio. Percentages are used in making

comparison between two or more variables to find the efficiency of each variable.
Percentages are used to describe relationships among them replacing the common base
say (100) so that comparison can be made easy and meaning full.
2) Bar Chart

The bar diagram consists of a series of rectangular bars standing on a common base.
The length of the bars is proportional to their magnitude. The comparison among the
bars is based on length. There are two types of bar diagram, multiple bar diagram and
component bar diagram.

3) Pie Chart

In a pie chart, the length of each sector is proportional to the quantity it represents. It
is a circle divided into number of sectors representing the data.The area of the sectors is
proportional to the value of the components. It is highly useful to know how the given
data is distributed.

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 1.6 PERIOD OF STUDY
The duration of the study is restricted to four months i.e., during the month of
November 2015 to February2016.The project work is done as a part of B.Com
degree during the sixth semester.

1.7 LIMITATIONS

The success of the study depends upon the reliabity of data supplied.

 The respondents’ opinion might be influenced by personal bias.

 The survey is conducted only in a few areas of Puthupally

Gramapanchayath.

 Many of the respondents were very critical about the social system so,
they are very biased towards using any celebrity in the advertisement at all.

 It was not possible to collect the opinion of the celebrities who
are endorsing brands.

 The sample size is relatively small from which primary data has
been collected. Hence the conclusions drawn are area specific and
any generalization will need a cautious approach.

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 CHAPTERISATION

The thesis of the study is divided into chapters the following fashion:

Chapter 1: The topic is introduced in this chapter. The

objectives hypothesis, methodology and limitation
of the study are also given here.

Chapter 2: Literature Review is given in this chapter.

Chapter 3: A theoretical frame work is given in this chapter.

It is mainly based on literature survey.

Chapter 4: The problem is analyzed in detail and presented in

this chapter. Tables and Graphs are used for this
purpose.

Chapter 5: The conclusion of this study is given here. Findings

and suggestions are also given.