Research Paper

On
“A STUDY ON CELEBRITY IMPACT ON CONSUMER BUYING
BEHAVIOUR IN PARTICULER KADI CITY”
Author
DR. CHANDUJI P. THAKOR
Faculty – M.B.A Programme
S. K. School of Business Management
Hemchandracharya North Gujarat University, Patan
Mob: 9879214586
Email: chthakor@gmail.com

ABSTRACT

This study aimed at to understand the impact of Celebrity on Consumer Buying Behavior.
Celebrity sources may enhance attitude change for a variety of reasons. They may attract
more attention to the advertisement than would non-celebrities or in many cases, they may be
viewed as more credible than non-celebrities. Third, consumers may identify with or desire to
emulate the celebrity. Finally, consumer may associate known characteristics of the celebrity
with attributes of the product that coincide with their own needs or desire. Thousand of
Rupees paid to celebrity hoping that the stars will bring their magic to brand they endorse and
make them more appealing and successful. But all celebrity glitter is not gold. The field of
consumer behaviour is the study of individuals, groups or organizations and the processes
they use to select, secure, use and dispose of product, services, experiences, or ideas to satisfy
needs and impacts that these processes have on the consumer and society. And understanding
the consumer behaviour is the prime and toughest task in front of every marketer. There are a
lot of factors, which influence consumer buyer behaviour.

Key Word: Celebrity, Celebrity’s Impact and Consumer Buying Behaviour

1. INTRODUCTION

Popular personalities can convert into excellent salesmen. Giving the world a familiar
and well-known face is considered to be the fastest and safest way for brands to develop an
association and a bond in the mind of its consumers. Whenever the consumers come across
an actor or the most loved sports figure endorsing a product, immediately that product
attain credibility because celebrity endorsement is a technique which features celebrities to
endorse a product. These celebrities need not to be necessarily an international superstar,
but they should be extremely familiar to their target audience. We see celebrities in
television, film, radio, magazines and where not, celebrity endorsements get about billions
and trillions yearly and are highly recommended in the dreamy world of advertisements to
promote their products. Marketers spend enormous amounts of money annually on celebrity
endorsement contracts based on the belief that celebrities are effective spokespeople for their
products or brands. Celebrity Endorsement is viewed as a billion dollar industry in today’s
era. Various companies are signing deals with celebrities in the hope that by using celebrities
they can accomplish a unique and relevant position in the minds of the consumers. Celebrity
endorsement is increasingly being employed across various industries regardless of the
product type. It is known to be playing the role of a signalling strategy. Also According to
Reynolds (2000) celebrity endorsement can give a brand a touch of glamour.

1.1 WHO IS CELEBRITY?

According to Oxford dictionary, celebrity means “a famous person". A person who is

excelled in his/her field of action or activity. In our day-to-day activity, we perform many
acts at home, at work place, on field in sports, in social life.

“Celebrity is an omnipresent feature of society, blazing lasting impressions in the

memories of all who cross its path.”

“Celebrities are people who enjoy public recognition by a large share of certain Group of
people.” And the term ‘Celebrity endorsement’ as defined by McCracken: “Any individual
who enjoys public recognition and who uses this recognition on behalf of a consumer good
by appearing with it in an advertisement.”(McCracken 1989)

1.2 TOP CELEBRITY IN INDIA

Sr No Celebrity Earning
1 Salman Khan Rs 253.25 crore
2 Virat Kohli Rs 228.09 crore
3 Akshay Kumar Rs 185 crore
4 Deepika Padukone Rs 112.8 crore
5 Mahendra Singh Dhoni Rs 101.77 crore
6 Aamir Khan Rs 97.5 crore
7 Amitabh Bachchan Rs 96.17 crore
8 Ranveer Singh Rs 84.67 crore
9 Sachin Tendulkar Rs 80 crore
10 Ajay Devgn Rs 74.5 crore

(Source: https://www.news18.com/photogallery/movies/top-50-celebrities-on-the-2018-
forbes-india-celebrity-100-list-1961103-10.html)

1.3 CONSUMER BUYING BEHAVIOUR

Consumer decision making varies with the type of buying decision. The decision to
buy toothpaste, a tennis racket, a personal computer and a new car are all very different.
Complex and expensive purchases are likely to more buyer deliberation and more
participants. There are four types of consumer buying behaviour based on the degree of
buyer involvement and the degree of differences among brands.

1.3.1 Complex Buying behaviour: Consumers engage in complex buying behaviour

when they are highly involved in a purchase and aware of significant differences among
brands. For Example:- a person want to purchase a new ‘LAPTOP’ at that time he/she
will be consider the “memory", "disk storage" "screen resolution," “HD graphics” and
so on.

1.3.2 Dissonance - reducing buyer behaviour: The high involvement is based on the
fact that the purchase is expensive, infrequent. In this case the buyer will shop around
to learn what is available but will buy will by fairly quickly, perhaps responding
primarily to a good price or to purchase convenience. For example:- carpet buying is a
high-involvement decision because carpeting is expensive and self-expressive yet the
buyer may consider most carpet brands in a given price range to be the same.
1.3.3 Habitual buying behaviour: Many products are bought under conditions of low
consumer involvement and the absences of significant brand differences consider salt.
Consumer has little involvement in this product category. For example:- A purchase of
salt, vegetable etc.

1.3.4 Variety-Seeking buying behaviour: Some buying situations characterized by

low consumer involvement but significant brand differences. Brand switching occurs
for the sake of variety rather than dissatisfaction. For example:- The consumer has
some beliefs about cookies, chooses a brand of cookies without much evaluation, and
evaluates the product during consumption.

1.4 OVERVIEW OF INDIAN MARKET

Indian market is not by a large space, an easy audience to target for the advertisers. The
one billion people of the country are speckled in terms of beliefs, ethnicity, states, culture,
language, dialects, norms and values. This demonstrates a vast disparity in the buying power
and decision making clout, one which the advertisers should keep in mind. Indian
advertisement has been placing a vital amount of importance on both recall and persuasion as
brand differentiating messages. When used effectively celebrity endorsers have the potential
of serving a valuable role in enhancing a brand’s competitive position and developing brand
equity. Forms of celebrities such as actors like Salman khan, Sports athletes like Sachin
Tendulkar and entertainers like Deepkia Padukone but also for less obvious groups such as
businessmen like the Ambani’s or politicians like Rahul Gandhi. In India especially, it is not
difficult to find motives for the increasing use if celebrities in advertisements as Indians have
always been in awe of the stars of the celluloid world.

1.5 IMPORTANT CELEBRITY ATTRIBUTES

The selection is in fact a collaboration, from which both the company and the celebrity
gains. The most important attribute for a celebrity endorser is the trust worthiness. The target
audience must trust that a celebrity carries a particular image and it must match with the
product. The second attribute in order of importance is likeability. The celebrity also must be
accepted as a popular icon by a large cross section of the audience. Companies use celebrity
endorser because they are considered to have stopping power, i.e., a celebrity can be a very
useful tool to draw attention to advertising messages in a cluttered media environment. The
overall popular image coupled with exact product- image match enhances the consumer
attention resulting in greater brand recall.

1.6 CELEBRITY SELECTION

There are various scientific ways in which the right celebrity is selected for the product
endorsement, which are discussed here after:-

A) Stereotyping: Tellis defines stereotypes as perceptions and depictions of individuals

based on simplistic, biased image of the group to which they belong, rather than on their own
individual characteristics. For example: its better to select celebrities who say are teens for
chocolate advertisements and females for detergent ads, etc.

B) The TEARS Model.

The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection.

Trustworthiness : For example - Legendary actor Amittabh Bachchan who is an icon of

trust; promoting ICICI Bank.

Expertise: For example – Virat Kohli for many sports brand.

Attractiveness: For example: Deepika Padukone had many products for endorsement per
year..

Respect: For example - Former Miss World Aishawarya Rai and the Eye Donation
campaign.

Similarity: For example: A child artist promoting a chocolate brand. A celebrity scoring high
on all the above attributes can turn out to be a good endorser for the brand under question.

C) The No TEARS Model

The "No TEARS" approach is a tool for managers and their advertisers how to go about
selecting celebrities so as to avoid the pitfalls from making an unwise decision. It gauges the
following information: -

 Celebrity & audience match up,

 Celebrity & brand match up,
 Celebrity credibility,
 Celebrity attractiveness

2. LITERATURE REVIEW

Haina Ding, (2010), The use of celebrity endorsement as a part of marketing communication
strategy has been gaining popularity over the past years. Monies paid out by firms on
endorsement contracts are estimated to be 10% to 25% of total advertising expenditures.
Subhadip, (2011), This study raises three questions and attempts to provide tent active
explanations for them. The first two questions relate to locating, in the consumer’s perceptual
space, the relative position of Indian celebrities and brands on a set of personality attributes.
The third question relates to determining the fit between the celebrity and the brands
endorsed by his/her. The results suggest that consumers differentially rank both celebrities
and brands.

Till and Shimp, (2007), A recent estimate indicates that almost 20 percent of all
advertisements worldwide use celebrity spokespersons. The general belief among advertisers
is that messages delivered by celebrities provide a higher degree of appeal, attention, and
possibly message recall than those delivered by non-celebrities. Marketers also claim that
celebrities affect the credibility of the claims made, increase the Memorability of the
message, and may provide a positive effect that could be generalized to the brand.

Goldsmith et al, (2002), They assessed the impact of endorser and corporate credibility on
attitude toward-the-ad, toward –the-brand and purchase intention. 152 adults consumers were
surveyed who viewed a fictitious advertisement for Mobil Oil Company. They rated the
credibility of the ad’s endorser, the credibility of the company and attitude towards the-ad,
attitude towards brand and purchase intention. It was observed that endorser credibility had
its strongest impact on advertisement while corporate credibility has its strongest impact on
brand.

3. RESEARCH METHODOLOGY

3.1 Research Objective

 To study the consumer perception on endorsement of celebrities through advertisement
and to ascertain the consumer responses.
 To identify celebrity endorsement is good way to give an advertisement.
 To identify influence of celebrity endorsement on consumer buying behaviour.
 To study celebrity endorsement as a source of brand-building.
 A celebrity endorsement is good way to create awareness in the mind of people.

3.2 Research Design: Descriptive Research Design

3.3 Research Hypothesis:

H0: There is no association between gender and celebrity effectiveness in create desertedness
to purchase the products

3.4 Data Collection

3.4.1 Primary Data: The primary data collected through Observation, Interview and survey

3.4.2 Secondary Data: The Secondary data collected through Published research paper,
Journals, Reports etc.
3.5 Sampling Method: The non Probability judgemental sampling Method used for this
research paper.

3.6 Area of Study: The research paper consist the respondents belongs to Kadi North Gujarat
Area.

3.7 Sample Size: The total 120 respondents are taken for this research paper.

3.8 Research Instrument: The structure questionnaire use for this Research Paper

3.9 Data Analysis Methods: The collected data analyze by Pie chart with Interpretation and
Chi-Square test used for Hypothesis testing.

3.10 Limitation of the study:

 Respondents Bias
 Geographical Constraints
 Time Factor

4. DATA ANALYSIS AND INTERPRETATION

As per the response dent we can

show in the graph that there are
48% person will be interested in
the advertisement but there are
40% people are not interested in
the advertisement and remaining
12% are not sure some ad. Are
like ant some are not. So as per
the survey in Kadi there are more
people will be like to see ad. And
react on it.

In the purchase decision of the

respondent we can see in the chart
that 47% people will be given
more priority to the Price, and
then 19% people will be take a
purchase decision by the product
quality, then 18% people given
priority to the brand name and
only 16% people will be given
priority to the celebrity
endorsement. So here I can say
that in Kadi city people will be
given more priority to the price compare to the brand, quality and celebrity endorsement.
 The product endorsing by
celebrity it will be create impact or
not in this question I had be get the
above result. In the graph we can
see that 49% people will be in
fever that it will create impact and
28% people will be in fever that it
not create impact and reaming 23%
people will be not sure. So the
above analysis we can say that
celebrity endorsement will be
useful tool for the promotion
activity.

The survey can say that the

celebrity will create more
effectiveness to purchase a product
from the graph we can say that
35% people fever in to this
question and 26% will strongly
agree and 22% people will not
fever in to this question and 11%
people will be strongly disagree
that it will not effect on it and
remaining 6% people will be
unsure about this question. So the
celebrity will be an effect on the
purchase decision of the people.

From the above question we can

find that which type of celebrity is
create more impact to the people
for purchase product. So here we
find that 43% people say that film
star will create more effect
compare to other than 35% people
say that cricketer will more effect
on it then 15% say that famous
personality effect on it and
remaining 7% are in favour to the
other. In this question it will be
find that the film star and cricketer will be create more impact to the people for purchasing
the product compare to other.
 Which media of the advertisement
more effect you to purchase the
product? On this question most of
the people say that 38% are in
favour in television 31% are in
Radio then 18% are newspaper and
remaining 13% are through internet
the product will be purchase.

HYPOTHESIS TESTING

H0: There is no association between gender and celebrity effectiveness in create desertedness
to purchase the products
H1: There is no association between gender and celebrity effectiveness in create desertedness
to purchase the products

Interpretation: From the above table it can be seen that chi-square P is 0.137 which is
greater than 0.05. So H0 will be accepted.
FINDINGS

 There is an impact on consumer buying behaviour of celebrity endorsement.

 In celebrity endorsement a two type of celebrity are most effective 1) Film star
2) cricketer.
 A celebrity endorsement is very expensive as a company’s point of view there
are celebrity charge as well as advertisement expense are related with it. So it
was an costly for the company.
 There are so many people who follow their ideal celebrity so it creates an
impact on purchase decision of that follow.
 The purchase attitude is influenced by the celebrity endorsement factors,
product evaluation and brand recognition.
 Film stars are playing major role in creating an impact than Sports personalities
and other models.
 A good number of respondents are selecting only those brands which are
endorsed by the celebrities.

SUGGESTIONS

 The celebrity using in the ad choose a perfect celebrity for the particular
product. The personality of the celebrity will be match with the product or its
factures.
 The company want to using a celebrity in the advertisement choose a best media
for the advertisement like television or print media the other media like Radio is
not a useful media for the advertisement.
 The company choose a best celebrity with minimum cost and maximum effort.
 A celebrity is an ideal character for the people so doesn’t promote the negative
product with using celebrity in the advertisement.
 Use celebrity is a good promotional tool for the promotion of product an it’s a
part of marketing activity.
 As a customer more prefer on the product’s quality compare to celebrity
endorsement.
 A celebrity endorsing the product is always not a good quality product so
purchase a quality product which suitable to our requirement.
 Keep in mind that celebrity endorsing the product for the money so it ‘s not that
the product is good quality and quantity.

CONCLUSION
The celebrity using in advertisement it will be create more impact on consumer buying
behaviour compare to the other advertisement. Celebrity spokespersons in advertising
to endorse brands. A brief assessment of the current market situation indicates, that
celebrity endorsement advertising strategies can under the right circumstances indeed
justify the high costs associated with this form of advertising. However, as several
failures show, it is essential for advertisers to be aware of the complex processes
underlying celebrity Endorsement, by gaining an understanding of the described
concepts of source credibility and attractiveness, match-up hypothesis, meaning transfer
model, multiple product and celebrity endorsement. While these concepts can help to
answer the question if and when celebrity advertising investments pay off, it has to be
the goal of further research efforts to develop an extensive, consistent and user-friendly
tool to avoid arbitrary decisions and enhance the strategic character of Celebrity
sponsorship decisions.

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