INTRODUCTION

Research in common parlance refers to a search for knowledge. Once can also define research as
a scientific and systematic search for pertinent information on a specific topic. In fact, research is
an art of scientific investigation. The Advanced Learner’s Dictionary of Current English lays
down the meaning of research as “a careful investigation or inquiry especially through search for
new facts in any branch of knowledge.”1 Redman and Mory define research as a “systematized
effort to gain new knowledge.”2 Some people consider research as a movement, a movement
from the known to the unknown. It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This
inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining
the knowledge of whatever the unknown, can be termed as research.
The term consumer behavior is defined as the behavior that consumer display in searching for,
purchasing using, evaluating and disposing of products and services that they expect will satisfy
their needs.
The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how
 The psychology of how consumers think, feel, reason, and select between different alternatives
(e.g., brands, products);
 The psychology of how the consumer is influenced by his or her environment (e.g., culture,
family, signs, media);
 The behavior of consumers while shopping or making other marketing decisions;
 Limitations in consumer knowledge or information processing abilities influence decisions and
marketing outcome;
 How consumer motivation and decision strategies differ between products that differ in their
level of importance or interest that they entail for the consumer; and

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 How marketers can adapt and improve their marketing campaigns and marketing strategies to
more effectively reach the consumer.
Celebrity Endorsement: 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.
Who is a celebrity?
Celebrities are people who enjoy public recognition by a large share of a certain group of
people whereas attributes like attractiveness, extraordinary lifestyle are just examples and
specific common characteristics cannot be observed though it can be said that within a
corresponding social group celebrities generally differ from the social Normand enjoy a high
degree of public awareness (Schlecht, 2003).
Testimonial: If the celebrity has personally used a product or service and is in a position
to attest its quality, then he or she may give a testimonial citing its benefits. For instance
AishwaryaRai endorses Lux by testifying the quality of the product as it forms a part of her
consumption basket.
Endorsement: celebrities often lend their names to ads for product or services for which
they may or may not be the experts For instance SachinTendulkar has been endorsing the Palio
brand of Fiat.
Actor: A Celebrity may be asked to present a product or service as a part of character
enactment rather than personal testimonial or endorsement. For instance SwetaTiwari of “Prerna
fame” (KasuatiZindagiki) enacts as a housewife for Nirma’s ad campaign.
Why Endorsements?
Celebrity Endorsements act as a credible means of “money burning”. This is because this
is a world of products for which the value a consumer obtains from purchasing any given variety.
This could be for reasons of social standing-People want to wear the “right” clothes, drink the

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“right” beverages and use the “right” fragrances. Specifically a consumer that observes messages
for two different firm’s products, one product’s message containing a celebrity endorsed and the
other not, believes the celebrity endorsed product will have more purchases and so be of higher
value.(Clark &Horstman, 2003)
Celebrity endorsement is more likely to be observed for those product shaving a high
price-production cost margin and on a large customer base. In short, celebrity endorsements are
more typical for nationally marketed products then for local or niche market products and for
products such as running shoes, soft drinks and the like for which the price cost margins are
apparently large.
Promoters of certain products require co-ordination over multiple customer groups -
different age, income, education groups or groups in different location. Example, Credit Card.
With a product of this sort a common set of advertising messages communicated to all custom is
a more effective and coordinates mechanism than messages targeted at separate customer groups
with common messages. A customer in one group receiving a message knows that customer in
other groups are also receiving the message. The challenge with common message is of
significant audience reach in the various customer groups at low cost. Because the celebrity is
recognizable globally, it is a low cost way to achieve cross group coordination (Clark & Horst
man, 2003).

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 OBJECTIVES OF THE STUDY
 To examine the influence of congruence between celebrity value and product values on
advertising effectiveness.
 To compare three dimensions i.e, values, expertise and attractiveness of the matchup hypothesis.
 To understand the influence of celebrity endorsement on purchasing decision of the customer.
 To understand other factors like price and quality.

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5
 RESEARCH METHODOLOGY
Research Design:
A research design is an arrangement of conditions for collection and analysis of Data in a
manner that aims to combine relevance to the research purpose with Economy in procedure. It
constitutes the blueprint for collection, measurement and analysis of data. My research design
will be exploratory research design.
Data Sources:
In dealing with any real life problem it is often found that data at hand are inadequate,
and hence, it becomes necessary to collect data that are appropriate. The researcher can collect
data either through primary source or secondary source.
a) Primary data: Primary is the data which is collected afresh and for the first time, and thus
happen to be original in character. I used the structured questionnaire.
b) Secondary data: Secondary data is the data which have already been collected by someone
else and which have already been passed through the statistical process. I collected it from the
sources like internet, published data etc.
Sampling plan :
Data collected has been analyzed and interpreted by percentage system and presented in
pie and column graphs.
Sampling Size:
It is the total number of respondents targeted for collecting the data for the research. Sample size
of 100 is taken for this research.

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 SCOPE OF THE STUDY
 Due to time constraint it is very difficult to cover the entire sectors. So I decided to cover
beverage industry.
 The scope of consumer behavior has been briefly touched upon in the previous section wherein it
was explained that how consumer behavior includes not only the actual buyer and his act of
buying but also the impact of celebrity endorsement while purchasing the products.

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 LIMITATIONS OF THE STUDY
There are following constraints of the study which can be explained as:-
 The time of research was short, due to which many facts have been left untouched.
 Sample size for the study is taken only 100 consumers. This can also act as a constraint to the
study.
 While collecting data some of the respondents are not willing to fill the questionnaire, so they
might not reflect their true behavior. This can also be a constraint to the study.

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 INDUSTRY PROFILE
The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and
Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola
has a 1% share, and the rest is divided among local players. Industry watchers say, fake products
also account for a good share of the balance. There are about 110 soft drink producing units
(60% being owned by Indian bottlers) in the country, employing about 125,000 people. There
are two distinct segments of the market, cola and non-cola drinks. The cola segment claims a
share of 62%, while the non-cola segment includes soda, clear lime, cloudy lime and drinks with
orange and mango flavors.
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's)
compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico
605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth Rs 2 bn. It
also supports growth of industries like glass, refrigeration, transportation, paper and sugar. The
Department of Food Processing Industries had stipulated that 'contains-no-fruit-juice' labels be
pasted on returnable glass bottles. About 85% of the soft drinks are currently sold in returnable
bottles. There was a floating stock of about 1000 mn bottles valued at Rs 6 bn. If the industry
were to abide by the new guidelines, it would have to invest in new bottles, resulting in a cost
outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest such a large amount.
Around 400,000 tonnes of raw material would be required to replace the existing stock of
bottles. Instead, the soft drink industry suggested that a seven-year moratorium be extended to
the industry so that it can incorporate the change in a phased manner. There is no such
mandatory requirement anywhere in the world to specifically label the glass surface of returnable
bottles. The government has decided to extend the date for replacing the bottles to end-march
2006. In the meantime, the producers have shifted substantially to the use of PET bottles.
Soft and aerated drinks were considered products for the middle class and the affluent. That
segregation is no more valid. Soft and aerated drinks are consumed by all except those who
cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the

9
lower, middle and upper middle classes. The soft drink industry has been urging the
government to categories aerated waters (soft drinks) equitably with other consumer products of
mass consumption and remove special excise duty.
The industry estimates that the beverage market should grow at twice the rate of GDP growth.
The Indian market should have, therefore, grown by at least 12%. However, it has been growing
at a rate of about 6%. In contrast, the Chinese market grew by 16% a year, while the Russian
market expanded at almost four times the rate of growth of the Indian market.
It may be recalled that Coca-Cola, the world's number one player, was present in India for a
long time in collaboration with an Indian producer but was thrown out in the late 1970s. It
reappeared in India following the economic liberalization era - but after its rival, world's number
two, had already entered in a big way following a long and tough fight against the opposition
from the domestic producers. When Coca-Cola re-entered, it installed a new milestone. It
acquired the well flourishing India's top player, Parle. Since then it is basically a fight between
the two American giants. Others are playing a peripheral role, as adjuncts to the two MNCs.
World's third biggest player, Cadbury Schweppes, had also made an entry but was gobbled up by
Coca-Cola. When Coca-Cola acquired Parle brands, it was, in fact, buying the bottling facilities,
the marketing network, and the established consumer preference during the market build-up. The
brands were a drag on the global brand. Since Coca-Cola was not interested in brands (like
Thumps Up), it did not promote them. The result, at least, in the short run was a loss of the
market to the competitor. Coca-Cola decided to market more effectively the Parle brands. It had
in its armoury Coke, Thumps Up, Limca and Fanta. The latest to enter market was Parle’s
erstwhile Rimzim, alongside Portello, a black currant flavoured drink, very popular in Srilanka.
Coca-Cola operates through 35 plants and 16 franchisees throughout the country, while PepsiCo
has 20 plants, but it has 7 more franchisees at 23 to 16 of its rival. Coca-Cola claims a market
share of 51%, while Pepsi has a share of 46%. The claims, however, remain disputed. The other
smaller players like Pure Drinks Ltd claim the rest of the market. The shares of the two lead
players are consolidated figures, which include the respective bottlers. Coca-Cola had
approached the government for a five year extension for divesting 49% equity in its bottling
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subsidiary, Hindustan Coca-Cola Holdings. It had set up the marketing subsidiary as part of its
strategy to integrate all its bottling operations, both company-owned and franchisee bottlers,
apparently keeping in line with its global policy. All together, it had bought initially over 38
franchisee bottlers.
Kandhari Beverages, coke bottlers for north have been eyeing to lift a stake in Coca-Cola India.
Coca-Cola had filed an application to offload 49% stake of its bottling operations in favour of
their Indian operators. Besides Kandhari, three other bottlers, one each from Uttar Pradesh,
Gujarat and Jammu, were lined up to invest in Hindustan Coca-Cola Holding. Kandhari has
already invested Rs 300 mn in 1999 and 2000 to upgrade its capacity. The total investment by all
the four was expected to be Rs 1000 mn. Both Coca-Cola and PepsiCo planned for the launch of
lemon-flavored versions of their products. Both have been expanding their non-carbonated drink
line-ups, as consumers seem to be shifting away from carbonated soft drinks. PepsiCo is
deliberating whether to come out with Pepsi Twist, a cola mixed with lemon. But while both
companies have juice sports drinks, bottled water and other such drinks in their line-ups, neither
coke nor Pepsi has launched a new national variety of a cola-flavoured carbonated soft drink in
years.
PepsiCo had achieved Rs 3 bn worth of exports, which include processed foods, basmati rice,
guar gum and soft drinks concentrate. PepsiCo completed the second phase of its expansion and
with this expansion, PepsiCo was to explore the possibility of expanding the export of
concentrates to more countries in addition to the exports to Russia and other South Asian
countries.
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote sales of soft
drinks through Pepsi-HLL network of vending machines and fountains. The major soft drink
brands in the Pepsi stable are Pepsi, 7UP, Mirinda, Tropicana and Acquafina.
As a major strategic departure, both MNCs were expanding their brand range. Consequent to
some diversifying moves, at present, the sales ratio of Coca-Cola between soft drinks and other
beverages is 95.5. The company intended to change this to 80:20 in the next three years. Its juice
brand, Maaza - acquired from Parle a few years ago - is being given a major thrust. It has plans
11
to go in for canned coffee, iced tea and purified categories under expansion schemes. It has
already launched its bottled water brand, Kinley, in the Indian market. Besides, it is intending to
acquire domestic brands in the non-carbonated beverages segment.
The global deal between Coca-Cola and P&G to form a snacks and beverages joint venture
company was reported to have slipped into rough weather. The P&G brand of potato wafer,
Pringles, seemed to be faced with distribution problems in India. P&G had globally tied up with
Coca-Cola to form a stand-alone juice and snacks company. The new firm is focused on
developing and marketing new juices, juice based beverages and snacks on a global basis. The
Sharjah-based Allied Beverages was pushing its Ahlan brand in India, having entered the market
in mid-2000. Its target was carbonated drinks market in PET bottles. Its plans were to launch a
PET bottle in the popular 300 ml category. Ahlan expected to gain a 12% share of the total PET
bottle market in northern India. Of the total market, PET bottle segment is approximately 12%.
Presently, Allied Beverages has a manufacturing unit at Dharuhera in Haryana. The product
range includes carbonated drinks - cola, orange, lemon and soda in three pack sizes - 500 ml,
1500 ml and 2000 ml. Allied Beverages sells non-carbonated drinks in 200 ml foodgrade cups
priced at Rs 7 in its portfolio, available in four different flavours. The company's future plans
include pulp-based fruit drinks in flavours, which will be available in 200 ml non-returnable
glass bottles.
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes in favour of
Coco-Cola India, following the global takeover of Schweppes beverages by Coke. The company
still retains the bottling rights for the beverages.
It was noticed for the first time during the summer of 2004 that soft drink companies were
registering a slower growth in the sale of bottled water at 20% compared to 35% in case of
drinks.

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Market Segmentation
Segment Share (%)
North 24
East 18
West 32
South 26
Rural 30
Urban 70

Market Structure
Product Variation Company Cola Drinks Share (%)
Thums Up 29
Coca Cola 25
Pepsi 18
Non Cola Drinks:
Gold Spot 2
Fanta 9
Mirinda 8
Limca 9
Overall Colas 62
Lemon:
Cloudy 7
Clear 3
Orange 17
Mango 3

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 COMPANY PROFILE
PEPSICO
Pepsi was first introduced as "Brad's Drink", in New Bern, North Carolina, United States, In
1893 the pharmacy of Caleb Bradham, who made it at his drugstore where the drink was sold. It
was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the
recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion
and boost energy.

Organization structure:

About PepsiCo:
PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries
and territories around the world. PepsiCo generated more than $66 billion in net revenue in 2014,
driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-
Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable

14
foods and beverages, including 22 brands that generate more than $1 billion each in estimated
annual retail sales.
At the heart of PepsiCo is Performance with Purpose—our goal to deliver top-tier financial
performance while creating sustainable growth and shareholder value. In practice, Performance
with Purpose means providing a wide range of foods and beverages from treats to healthy eats;
finding innovative ways to minimize our impact on the environment and reduce our operating
costs; providing a safe and inclusive workplace for our employees globally; and respecting,
supporting and investing in the local communities where we operate.
PepsiCo India Region: Leadership through Performance with Purpose
Our Mission and Vision
At PepsiCo we believe that business and society can thrive together. We are guided by
Performance with Purpose: delivering top-tier results in a way that sustains and respects
business, society and the planet.
Our Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to
evening treats. We are committed to investing in our people, our company and the communities
where we operate to help position the company for long-term, sustainable growth.
Our Vision
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the environment
and reduce our operating costs; providing a safe and inclusive workplace for our employees
globally; and respecting, supporting and investing in the local communities where we operate.

15
Wherever we do business, Performance with Purpose is our guide. We believe that delivering for
our consumers and customers, protecting the environment, sourcing with integrity and investing
in our employees are not simply good things to do, but that these actions fuel our returns and
position PepsiCo for long-term, sustainable growth.
Our goal is to nourish consumers with a range of products that deliver great taste, convenience
and affordability, from simple treats to healthy offerings in the communities where we operate.
Large investor in India with strong brands:
PepsiCo has been consistently investing in India, in the areas of product innovation, increasing
manufacturing capacity, ramping up market infrastructure, strengthening supply chain and
expanding company’s agriculture programmes. The company has built an expansive beverage
and snack food business supported by 37 beverage plants and 3 food plants. In two decades, the
company has been able to organically grow eight brands each of which generate Rs. 1000 crores
or more in estimated annual retail sales and are household names, trusted across the country.
A growing portfolio of enjoyable and wholesome snacks and beverages:
PepsiCo India’s diverse portfolio reflects its commitment to nourish consumers with a diverse
range of fun and healthier products and includes iconic brands like Pepsi, Lay’s, Kurkure,
Tropicana, Gatorade and Quaker. In addition to the recently launched Lay’s Maxx, 7UP Revive
and Tropicana Slice Alphonso, the portfolio includes several healthier treats like Quaker Oats,
Tropicana juices, rehydrator Gatorade, Tata Water plus, Quaker flavoured oats and Quaker Nutri
Upma and Quaker Nutri Poha breakfast range with the power of wholegrain.
Foods
PepsiCo’s foods division Frito-Lay is the leader in the branded salty snack market. All its
products are free of trans-fat and MSG. It manufactures Lay’s potato chips, Cheetos extruded
snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The
company’s high-fibre breakfast cereal, Quaker Oats and low-fat and roasted snack options
like Aliva increase the number of healthy choices available to consumers.

16
 Beverages
PepsiCo India’s expansive portfolio includes iconic refreshment
beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew, in addition to low-calorie
options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,
isotonic sports drink Gatorade and fruit juices such as Tropicana and Tropicana 100%.
 7UP
 Aquafina
 Duke's
 Gatorade
 Mirinda
 Mountain Dew
 Nimbooz
 Pepsi
 Slice
 Tropicana

2016 financial highlights:

Fiscal year is Jan - Dec. 2017-Q1 2016-Q4 2016-Q3 2016-Q2 2016-Q1

Pepsico Net Sales or Revenues 12.22B 19.95B 17.22B 16.89B 12.62B

Cost Of Goods Sold (COGS) 5.44B 9.36B 8B 7.78B 5.75B

Pepsico Gross Profit 6.78B 10.58B 9.22B 9.12B 6.88B

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 COCA-COLA
The Coca-Cola Company is a beverage company. “It owns or licenses more than 500
nonalcoholic beverage brands” (MintGlobal, 2014). It primarily serves sparkling beverages but
also wide range of still beverages such as water, juices, ready-to-drink teas and coffees, and
sports drinks. The Coca-Cola Company was founded in 1886, by John S. Pemberton and served
Coca-Cola at a local Pharmacy in downtown Atlanta, Georgia (The Coca-Cola Company, 2014).
In 1892, Asa Candler purchased and incorporated the Coca-Cola Company as a Georgia
Corporation (The Coca-Cola Company, 2014). Fourteen years later, under Candler’s leadership,
bottling operations began in Canada, Cuba, and Panama. In 1919, the Coca-Cola Company was
purchased by a group of investors led by Ernest Woodruff for $25 million. From its early years,
Coca-Cola Company made significant innovations in the beverage industry, such as six-bottle
carton and steel 12-ounce cans. Additionally, it continued to expand internationally (The
CocaCola Company, 2014). In 1923, Robert W. Woodruff was elected as president of the Coca-
Cola Company, who also served as a Chairman of the Board in 1939. The very first new product
distributed by the Company was Fanta Orange in Naples, Italy. After the success of this product,
it established a diverse portfolio through acquiring Minute Maid Corporation and adding a line of
juice products. In 2008, “Sprite became the third Company product to sell more than 2 billion
cases annually, joining Coca-Cola and Diet Coke” (The Coca-Cola Company, 2014).
Current Situation:
Today, the Coca-Cola Company has been serving for more than 127 years and is one of the
largest beverage companies headquartered in Atlanta, United States. The company is engaged in
the production, distribution, and marketing of nonalcoholic beverages and syrups. It is listed on
the New York Stock Exchange (NYSE) and the Dow Jones Industrial Average (DJIA) 2
(MintGlobal, 2014). On March 16, 2014, the share price of the Coca-Cola Company is recorded
at $38.17 under NYSE (The Coca-Cola Company). The Coca-Cola Company has over 3500
products and serves over 200 countries. Some of its brands include Coca-Cola, Sprite, Fanta,
Diet Coke, Dasani, Minute Maid, Power Ride, Simply Orange, Fresca, and Vitamin Water.
Moreover, it has partnered with approximately 250 bottling companies worldwide. “The
18
company’s segments include Eurasia and Africa, Europe, Latin America, North America,
Pacific, Bottling Investments and Corporate” (MintGlobal, 2014). “Some of the company’s
customers include bottling and canning operators, distributors, fountain wholesalers, and
fountain retailers” (MintGlobal, 2014). Lastly, in the beverage industry, the Coca-Cola Company
competes with PepsiCo, Inc., Nestle, and the Dr. Pepper Snapple Group Inc.
The company is growing its business via both organic growth and acquisitions. Recent years saw
the company increasing its investments in major emerging markets while making small- scale
acquisitions in developed markets to enrich its health and wellness portfolio. Re-franchising and
re-organizing its bottling operations is also an important highlight of its corporate activities.
Our Mission Our roadmap starts with our mission, which is enduring. It declares our purpose as
a Company and serves as the standard against which we weigh our actions and decisions.
• To refresh the world
• To inspire moments of optimism and happiness
• To create value and make a difference Our Values Our values serve as a compass for our
actions and describe how we behave in the world.
Our Vision: Our vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable, quality growth.
Goals and Objectives The Coca-Cola Company is a leader in the beverage industry with a
reputable brand and strong global presence. According to the Coca-Cola Company’s mission
statement and 2020 Vision, some of its goals include: • Increase profit by cutting down costs
through productive and efficient production facilities; • Focus on environment friendly bottling
production and enforce sustainability; 3 • Continue to diversify its portfolio through innovations
and partnerships, keeping consumer demands in mind; • Increase annual operating income by 6-
8% in order to double their revenue by 2020.

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 Coca cola Products
 Coca-Cola
 Diet Coke
 Coca-Cola Zero
 Thums Up
 Sprite
 Fanta
 Limca
 Maaza
 Maaza Milky Delite
 Minute Maid Pulpy Orange
 Minute Maid Guava
 Minute Maid Mango
 Minute Maid Mixed Fruit
 Kinley Water
 Kinley Soda
 Georgia Gold
 Schweppes Ginger Ale
 Schweppes Soda Water
 Schweppes Tonic Water

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 THEROTEICAL FRAMEWORK
Miles and Huberman (1994) defined a conceptual framework as a visual or written
product, one that “explains, either graphically or in narrative form, the main things to be
studied—the key factors, concepts, or variables—and the presumed relationships among them”
(p. 18).1 Here, I use the term in a broader sense, to refer to the actual ideas and beliefs that you
hold about the phenomena studied, whether these are written down or not; this may also be
called the “theoretical framework” or “idea context” for the study.
The most important thing to understand about your conceptual framework is that it is primarily a
conception or model of what is out there that you plan to study, and of what is going on with
these things and why—a tentative theory of the phenomena that you are investigating. The
function of this theory is to inform the rest of your design— to help you to assess and refine your
goals, develop realistic and relevant research questions, select appropriate methods, and identify
potential validity threats to your conclusions.
What is often called the “research problem” is a part of your conceptual framework, and
formulating the research problem is often seen as a key task in designing your study. It is part of
your conceptual framework (although it is often treated as a separate component of a research
design or proposal) because it identifies something that is going on in the world, something that
is itself problematic or that has consequences that are problematic. Your research problem
functions (in combination with your goals) to justify your study, to show people why your
research is important. In addition, this problem is presumably something that is not fully
understood, or that we don’t adequately know how to deal with; therefore, we want more
information about it. Not every study will have an explicit statement of a research problem, but
every good research design contains an implicit or explicit identification of some issue or
problem, intellectual or practical, about which more information is needed. (The justification of
“needed” is where your goals come into play.)
The field of consumer behavior studies how individuals,
groups and organization select, buy, use and despise of goods, services, ideas, or experience to

21
satisfy their needs and desires understanding consumer behavior and knowing customer are
never simple.
The wealth of products and service produced in a country make our economy strong .The
behavior of human being during the purchase is being termed as Buyer Behavior. Customer says
one thing but do another. They may not be in touch with their deeper motivations.
The pie and column chart creates a visual model, which people can use when comparing
different data sets. Using different colours, pie and column charts divide information into
sections resembling pie slices which is accompanied by a number of percentages, and its size
changes accordingly. Graphs and charts condense large amounts of information into easy-to-
understand formats that clearly and effectively communicate important points.
In the near future consumers desires more and more bikes to be introduced in the market and at
the same time they should maintain quality because most of the consumers prefer pulsar bike by
quality and price.

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 DATA ANALYSIS&INTERRETATION

1. Which category of products do you like most?

TABLE:
Response Number of respondents Percentage of respondents
Soft drinks 20 35
Juice 19 33
Others 16 21
Total 55 100
GRAPH:

40

35

30

25

20
Percentage of respondents

15

10

0
Soft drinks Juice Others

Interpretation / Analysis:
According to my survey out of 100 respondents 35% of the respondents prefer soft drinks. The
remaining 32% respondents prefer juice and 31% respondents prefer other products.

23
2. In soft drinks which brand do you prefer mostly?

TABLE:

Response Number of respondents Percentage of respondents

Pepsi 20 35
Coco cola 19 33
Local brands 12 21
Not specified 4 11
Total 55 100

GRAPH:

40
35
30
25
20
15 Percentage of respondents

10
5
0
Pepsi Coco cola Local brands Not
specified

Interpretation / Analysis:
According to my survey, out of 100 respondents, 35 % of the people prefer Pepsi most then
coco cola with around 33% followed with local brands & not specified with 21% & 11%
respectively.

24
3. Which factor related to product attracts you most?
TABLE:
Response Number of respondents Percentage of respondents
Price 16 30
Quality 22 40
Taste 6 10
Celebrity endorsement 10 18
other 1 2
Total responses 55 100%

GRAPH:

sales
45
40
35
30
25
20
Percentage of respondents
15
10
5
0
Price Quality Taste Celebrity
Endorsement

Interpretation / Analysis:
According to my survey out of 100% respondents, 40% of the respondents choose the product on
the basis of quality, 30% respondents choose according to the price, 10%by taste, 18% by
celebrity endorsement and the remaining 2% on other basis.
25
4. How frequently do you come across advertisements that feature celebrities?
TABLE

Response Number of respondents Percentage of respondents

Often 8 15

Sometimes 19 35

Rarely 8 50

Never 0 00

TOTAL 55 100

GRAPH:

60

50

40

30
Percentage of respondents

20

10

0
Often Sometimes Rarely Never

Interpretation / Analysis: According to my survey 50% of the respondents rarely come across
advertisements that feature celebrities, 35% sometimes, 15% often. There are nil who never come
across advertisements that feature celebrities
26
5. Do you like to see any celebrity endorsing your brand?
TABLE:

Response Number of respondents Percentage of respondents

Yes 47 85
No 8 15
TOTAL 55 100

GRAPH:

90

80

70

60

50
Yes
40
no
30

20

10

0
Number of customers Percentage of
respondants

Interpretation / Analysis:
From the above table it is clear that 85% of the respondents are like to see any celebrity
endorsing their brand where 15% of the respondents are unwilling.

27
6. In case of soft drinks which celebrity person you like most?
TABLE:
Response Number of respondents Percentage of respondents
Film stars 20 37
Sports stars 21 38
politicians 5 9
Famous personalities 9 16
TOTAL 55 100

GRAPH:

40

35

30

25
Film stars
20 Sports stars
15 Politicians
10 famous personalities

0
Number of Percentage of
customers respondants

Interpretation / Analysis:
Majority of the respondents choose film stars with 37% and sports stars with 38%. The
remaining 9% choose polititians,16% choose famous personalities.

28
7. Do you associate the celebrity directly with the quality and the performance of the
product?
TABLE:
Response Number of respondents Percentage of respondents
Yes 1 2
Every time 2 4
Not really 14 26
No 19 34
Never
no 19 34
TOTAL 55 100

GRAPH:

40

35

30

25 Yes
Every time
20
Not really
15
No
10 Never
5

0
Number of percentage of
customers customers

Interpretation / Analysis:
Above table clearly shows us that most of the respondents i.e, 34% of the respondents never
associate the celebrity directly with the quality and the performance of the product.

29
8. Is celebrity endorsement making you loyal towards soft drinks?
TABLE:8
Response Number of respondents Percentage of respondents
Yes 35 63
No 20 37
TOTAL 55 100

GRAPH:

70

60

50

40
Percentage of respondents
30

20

10

0
Yes No

Interpretation / Analysis:
By the above table we can clearly say that celebrity endorsement sometimes make you
loyal towards soft drinks i.e, 63% of the respondents agreed with the statement and 37% did not
agree.

30
9. For how long do you associate a particular celebrity to a particular brand?

TABLE:
Response Number of respondents Percentage of respondents
Temporary 36 66
Permanent 8 14
Can’t say 11 20
TOTAL 55 100

GRAPH:

70

60

50

40
TemporaryPermanent
30 Permanent
Can’t say
20

10

0
Number of Percentge of
customers customers

Interpretation / Analysis: According to my survey 66% of the customers like to associate a

particular celebrity to a particular brand temporarily, 14% of the customers like to associate a
particular celebrity to a particular brand permanently and the remaining 20% can’t say anything
regarding this.

31
10. Will you stop buying a brand if your favorite celebrity endorsing it got involved in a
scam?
TABLE:
Features Number of respondents Percentage of respondents

Strongly disagree 34 62
Disagree 16 29
Neutral 3 5
Agree 1 2
Strongly agree 1 2
TOTAL 55 100

GRAPH:

70

60

50

40

30 Percentage of respondents

20

10

0
Strongly Disagree Neutral Agree Strongly
disagree agree

Interpretation / Analysis:
62% of the respondents never purchase the product because of celebrities loyalty, 5% are neutral, 2% of
the respondents always purchase the product because of their loyalty towards celebrities.

32
11. If celebrity stop endorsing for product, will you continue the usage of product?

TABLE:
Response Number of respondents Percentage of respondents
Yes 52 94
No 3 6
TOTAL 55 100

GRAPH:

100

90

80

70

60

50
Percentage of respondents
40

30

20

10

0
Yes No

Interpretation / Analysis:
According to my survey if celebrity stop endorsing for product, 94% of the respondents
continue the usage of product, the remaining 6% of the respondents stop the usage of the
product.

33
12. Overall would you consider the presence of celebrity endorsement as positive or negative when
making a purchase decision of soft drinks?

TABLE:
Response Number of respondents Percentage of respondents
Positive 45 81
Negative 10 19
TOTAL 55 100

GRAPH:

90
80
70
60
50
40 Percentage of respondents
30
20
10
0
Positive Negative

Interpretation / Analysis:
91% of respondents said that they are positive when making a purchase decision of soft drinks, the
remaining 19% of the respondents have negative opinion on celebrity endorsements while making a
purchase decision.

34
 FINDINGS
After completing survey I found that:
 The research shows that the soft drinks are almost equally preferred with juices.
 From the research Pepsi and coca cola brands are preferred more compared to other brands.
 From the research maximum consumers see the quality of the product.
 Advertisements that feature celebrities play an important role in increasing the sales of the
product.
 The research shows that the celebrity endorsement is playing a key role on Indian consumers.
 Film stars and sports stars both are equally effective in celebrity endorsement.
 There is no comparison of quality and performance of product with the celebrity.
 Out of 100 respondents 63 respondents said that celebrity endorsement makes them loyal
towards the soft drinks.
 Most of respondents associate a particular celebrity to a particular brand for short period of time.

35
 Suggestions

On the basis of survey there are some recommendations for the company which can easily solve
the problem what the company is facing.
 Looking towards the future, the most important recommendation to soft drink industry is to
continue product innovation and expansion of their product line.
 To sustain or increase the global market share.
 To maintain and try to increase their brand loyalty.
 Increase the number of dealers.
 Provide the dealership on the basis of their past experience.
 Focus on publicity instead of such aggressive advertisements.
 Provide special outlets to the customers.
 Provide outlets in the remote areas.
 Avoid large number of middle men or channels and develop more effective own channel of
distribution.

36
 Conclusion
In India celebrities’ position in the mind of people is very high. People looks as their Idol
and millions of people follow them. In all region of the country different celebrities follow by
their fans like a god. In cricket Sachin Tendulkar ,Ms Dhoni, Virat Kholi . In bollywood male
endorser and female endorser both effective in ads like Amitabh Bachchan ,Shahrukh Khan ,
Salman Khan , Ketrina Kaif ,Bipash Basu ,Ashwrya Rai Bachchan .These celebrities also using
their name for endorsement very effectively.
Celebrity endorsement in soft drinks is playing a key role for the soft drinks companies. Soft
drink is product which purchase for enjoyment. It is not necessary product for the consumer. So
all soft drink companies are highly concentrate on advertisement campaign especially for TV
advertisement. For all soft drink companies like Pepsi, coca cola use celebrity as a market
strategy and got positive result. Consumer is highly affected by celebrity when he/she going to
buy a soft drink. That show how celebrity endorsement is effective with respect to soft drinks.

37
 BIBILIOGRAPHY

References:
Philip A.Stroke(2009), “impact of celebrity endorsement on stock prices”, journal of consumer
research, Vol 14 No.March.
Philip kotler: “marketing management”,pearson publishers, New Delhi,2013.
http://www.coolavenues.com/know/mktg/surabhi6.php
http://www.thehindubusinessline.com/2008/04/08/stories/2008040851250500.htm
http://timesofindia,indiatimes.com/articleshow/1507842.cms

38
 QUESTIONNAIRE

“CONSUMER BEHAVIOUR TOWARDS CELEBRITY ENDORSEMENT”

Personal Information:
NAME:
EMAIL ID:

GENDER: □ MALE □ FEMALE

AGE □18-25 □26-32 □ 32-39 □Above 40

What is your occupation?

□ Student □employee □business □other

1. Category of products do you like most?

□ Soft drinks □ juice □ other

2. In soft drinks which brand of soft drinks do you prefer most?

□Pepsi □coco cola □ local brands □not specified

3. Which factor related to product attracts you most?

□Price □ quality □ taste □celebrity endorsement □other

4. How frequently do you come across advertisements that feature celebrities?

□ Often □ sometimes □ rarely □ never

5. Do you like to see any celebrity endorsing your brand?

□Yes □ no
39
6. In case of soft drinks which celebrity person you like most?

□Film stars □sport stars □politician’s □famous personalities

7. Do you associate the celebrity directly with the quality and the performance of the
product?

□Yes □every time □ not really □no □never

8. Is celebrity endorsement making you loyal towards soft drinks?

□Yes □no
9. For how long do you associate a particular celebrity to a particular brand?

□ Temporary □ permanent □can‘t say

10. Will you stop buying a brand if your favorite celebrity endorsing it got involved in a
scam?

□Strongly disagree □ disagree □ neutral □ agree □ strongly agree

11. If celebrity stop endorsing for product, will you continue the usage of product?

□Yes □ no
12. Overall would you consider the presence of celebrity endorsement as positive or
negative when making a purchase decision regarding soft drinks?

□Positive □negative

40
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