Synopsis

SPECIALIZATION PROJECT REPORT

on

A EMPIRICAL STUDY ON “IMPACT OF CELEBRITY

ENDORSEMENT ON CONSUMER BUYING BEHAVIOUR”

(Report submitted in partial fulfillment of the requirement for the award of

Post-Graduation Diploma in Management)

G.S.S. Harsha Vardhan

(2018-20 Batch)
PGDM- 27-078

Name & Designation of Faculty Guide

Mr. T. Tirumal Reddy, Asst., Prof., Marketing

Signature of Faculty Guide

Siva Sivani Institute of Management

Kompally, Secunderabad-500014

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 Content
Chapter No Content Page No

Chapter I Introduction 3-5

Chapter II Review of Literature 6-9

Chapter III Research Methodology 10-11

Chapter IV Data Analysis 12-17

Chapter V Conclusion
18-19

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 CHAPTER-1

INTRODUCTION

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 CELEBRITY

As per Oxford dictionary, the celebrity is a famous individual and person who performs in his
field of action/work. In daily routine, we execute lot of works at home, work place, sports &
social life. All the actions are daily routine and actions. If persons perform, an act which gives
amazing results is noticed by people. This means individual had done something extra ordinary
which the normal public cannot perform. They are considered special person with different
extra edge given by god. People have feeling that these actors are great. A person celebrates
his all actions that produce success. Success rates of the individual are high to give good results;
hence he is a "CELEBRITY". They are in field of cinema, sports, science, and politics which
gives these personality edges to perform in this field.

CONSUMER BEHAVIOUR

To Study, why would a consumer became a customer, what customer buys, what selection he
uses to purchase, why his buying behaviour become repeated & not if then which patterns they
follow the activities that sounds interesting part of consumer behaviors. In order to study these
activities need to analyse the norm on the basis of sociology, anthropology and economics.
Consumer behaviour focuses on decision of customer who followed by a product they would
have taken individually or would also come in group. To work on case, we need study
behavioural, psychographic & demographic variable. We know that this case of buying a
product, friend, society puts pressure & therefore it tried to cover all the aspect from the data
and Why to study this consumer behaviours? It is quite clear for firms do wonders when they
understands the consumer purchasing patterns. It helps to organize firms marketing strategy
and helps to present good product benefits.

 The alternatives behind buying personal care products which refers to psychology
behind choosing products
 The role of environment in deciding products, whether they also influences buying
behaviours.
 What is behaviour showed by the consumers when they decide to shop.
 Knowledge or information gaps in buying products.
 Also we could find the motivations in picking up different brands & level of importance
for these strategies.
 What can marketers do in order to target right customers and reach them more
effectively.
WHAT IS NEED OF CELEBRITY ENDORSEMENT

A marketer works very hard in order to make product /brands very popular which they can
monetize by leveraging the brand essence. They spend huge amount of money so that brand
values can be communicated to the customers and the product/brands can be sold hence
increasing the revenue of the company. For making the product/brand get more traction the
companies uses celebrity for the product endorsement which not only increase the brand value
but also increases the brand popularity for the product. This strategy can be used by
organization to make brand more popular. This practice is used by company to make the brand

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more popular which is employed by organization across different industry verticals. Reynolds
told that celebrity endorsement make brand act like a glamour.

Companies prefer celebrity for their brand endorsement in various fields like cricket, film
actors and other personalities. Marketers have view that spending huge amount of money on
celebrity will help increase their brand equity and also increase their share revenue/sales
figures. There are some examples like Cadbury appointed Amitabh Bachhan for their brand
endorsement during the time they were in bad phase and which has helped Cadbury to again
gain trust in customer for Cadbury brand and increased its sales. Santro car sales sky rocketed
by employing shahrukh khan to endorse its brand.

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 CHAPTER-2

REVIEW OF LITERATURE

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Naveen Rai, in his paper titled “Impact of advertising on consumer behaviour and attitude with
reference to consumer durables products” focuses on advertising as a plan adopted by various
brands for promotion of their products. The objectives for the examine the advertising influence
on consumer buying behaviour and also to determine of advertising on customer attitude
formation patterns. The paper studies the Indian demographics which influence the buying
behaviour types through mass mediums like television, newspaper etc. Indian customers buys
home electronics durables like television, Refrigerator, air conditioner etc. The study findings
are that advertisement worldwide influence the buying behaviour of customers which is seen
as case of India. Purchase attitude and behaviour is influenced by variety of ads which focuses
on brand and product evaluation. tresses on the factors which make celebrity endorsed brand
popular by assessing different celebrity and consumer intentions to buy the product and find
the impact created on consumer to buy the product. This study also aims to understand why
companies/brands choose the celebrity for endorsing their brands. The research focuses on
various factors like the price vs profit, multiple endorsement vs celebrity endorsed brand and
other factors impacting the brand sales. Also, based on the celebrity endorsing the brand which
age group and gender gets affected and hence results in overall increase in sales for the celebrity
endorsed products. The paper uses secondary and primary data for coming to the conclusion of
product endorsed by celebrity affects customer 12 buying patterns. She found that there should
be proper linkage between celebrity and product endorser.

Dr.Giridhar K.V. (2012) in his paper titled “Effect of celebrity endorsement on consumer
buying behaviour and branding” examines the effects of the endorsement by celebrity creates
on customer buying behavior in Indian context which helps the companies in order to
understand the promotional strategies needs to employ for effective sales of a particular brand.
This study focuses on three prospective like marketer, celebrity and consumer. It also covers
the celebrity endorsement of durable products with special emphasis on Shimoga city where
the survey is conducted. Primary data is collected through questionnaire collected different
sources like journals, textbooks, magazines and internet Finding from the study are the
celebrity endorsement enhances the product appeal and create awareness among the customers.
The customers can be targeted based on quality and price which is purchase attitude defined
by celebrity endorsements.

Impact of Celebrity Endorsement on Consumer Buying Behaviour and Brand Building

Author: Dinesh Kumar Gupta

The field of consumer behavior 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 behavior is the prime and toughest task in front of every marketer.
There are a lot of factors, which influence consumer buyer behavior. This study aimed at to
understand the "influence of celebrity endorsee on consumer buying behavior and marketing."

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Marketers pay millions of dollars to celebrity endorsee 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.

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.

Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1203322

Celebrity Endorsements and Its Impact on Consumer Buying Behavior - In Context to India

Authors: Amit Kumar

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.

Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1655423

Effects of multiple endorsements and consumer–celebrity attachment on attitude and purchase

intention

Authors: Jasmina, Cynthia M. Webster

This study examines consumer–celebrity attachment within multiple endorsement situations.

A 2 × 2 factorial design manipulates attachment strength to the celebrity and endorsement
situation while controlling for celebrity attractiveness, familiarity and match-up. Results show
strong attachment to a celebrity encourages positive attitude towards the advertisement and
brand regardless of the number of endorsements. A significant interaction effect is found for
purchase intention, suggesting that both attachment and the number of endorsements influence
likelihood of purchase. When consumers are more attached to a celebrity and view that
celebrity endorsing multiple brands, this negatively impacts their purchase intention.

Source: https://www.sciencedirect.com/science/article/abs/pii/S1441358211000632

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The effect of celebrity endorsement on consumer behaviour: Case of the Lebanese jewellery
industry

Authors: Safi Hani, Azouri Marwan And Azouri Andre

This paper tends to the effect of celebrity support to jewelry advertisements on the conduct of
consumers, in particular on Lebanese females. The investigation is drawn closer from the point
of view of the customer. It studies celebrity endorsement from pristine idea, speculations,
efficiency, and presence in the jewelry industry. It additionally looks at customer perception,
decision making process, and demeanour as all influenced by celebrity support. Underlying
explicative models relating the latter factors are exhibited. Attractiveness of celebrity endorser
infers advertisement recall and is sought to be associated to the consumer's intention to
purchase. The relationship between the credibility of celebrity endorser and both consumer
mark inclination and mentality is also examined. impact on customer's behaviour relevant to
advertisement recall and intention to buy. Mark inclination and mentality of the consumer are
found to be negatively influenced by celebrity endorsement.

Source: https://www.sciencedirect.com/science/article/pii/S2214462518300586

Impact of celebrity endorsement on consumer buying behaviour in beauty soap industry

Authors: J. D. T. Madhusanka

All of us are consumers. We consume various product and services to fulfil our daily
requirements and every time we have to decide what we buy, how we buy, where and when we
buy. There are a large number of factors, which influence consumer buying behaviour. But
today the firms and marketers are using celebrity endorsement as a major marketing strategy
to affect the consumer buying behaviour. Researcher has been taken celebrity endorsement,
attractiveness, expertise and the trust worth to measure whether those factors affect for the
consumer buying behaviour or not. Hence the purpose of this research is to study the impact of
celebrity endorsement on consumers buying behaviour. Furthermore, this study focuses on
examining the perception of consumers about celebrity endorsements, examining the celebrity
attributes likely to influence consumer purchase intentions and finally the impact of celebrity
endorsements on their Consumer Buying Behaviour. The researcher has identified that there is
a huge effect on celebrity endorsement towards the consumer buying behaviour while celebrity
trustworthiness, expertise and attractiveness has a positive impact on consumer buying
behaviour. Today most of the marketers use celebrity endorsement as a strategy to promote
their bands therefore, through this research the researcher’s scope is to understand the
consumers mind set towards the FMCG sector due to celebrity endorsement.

Source: https://kjm.sljol.info/articles/abstract/10.4038/kjm.v6i1.7526/

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 CHAPTER 3

RESEARCH METHODOLOGY

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OBJECTIVES OF THE STUDY:

 To analyze the influence of brand over celebrity endorsement

 To study the brand endorser change the impact on product
 To analyze that which factor of celebrity attracts more to the public

SAMPLE SIZE:

The sample size consists of 60 respondents. The sample consists of employees, students etc.,
While analyzing an interpretation of data sample statistical techniques like average,
percentage have been used. For graphical representations simple pie diagrams have been
used.

Sampling Techniques:

The sample design provides information on the target information and find sample sizes. I
used Convenient sampling surveyed in research

Primary data:

Collected the primary data and used convenience sampling.

Limitations:

 If celebrities have faced any social issues personally or professionally in the society. It
impacts on sales of the product whether it is directly or indirectly.
 Cost is very high for celebrity endorsements.
 Changing of endorsers would negatively impact on sales.
 Celebrity can overshadow the brands.
 Celebrities become overexposed. At the height of Tiger Woods’ popularity, he
endorsed over ten companies at once. When a celebrity works with so many
companies, the celebrity’s credibility may suffer. People may feel that the celebrity
will endorse anything to make a buck.
.

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 CHAPTER-4

DATA ANALYSIS

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Interpretation: 86.3 % of the respondents are students followed by 14.7 % who are either
business class or service class.

Interpretation: Majority of the respondents (71.6%) were in the age group of below 25. 21.6%
were in 26-35 age group.

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Interpretation: Majority of the respondents (54.9%) were males and the rest (44.1%) were
females.

Interpretation: Majority of the respondents (44.1%) have chosen benefits as the main factor for
buying a product in personal care category. (29.4%) have selected Brand and (23.5%) have
chosen price as the main fact.

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Interpretation: Majority of the respondents (42.2%) have selected Film stars as their favourite
choice for endorsing a brand. 35.3% have selected sports personalities while 16.7% wants to
be models.

Interpretation: Majority of the respondents(84.3%) said they use Television as a medium to

know about celebrity endorsed ads. 83.3% have selected mobile, 41.2% said radio.

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Interpretation: Majority of the respondents (50%) have agreed that advertisement done by
celebrities creates more impact than other advertisements. 27.5% of the respondents have
neutral view while 14.7% had strongly agree with this fact. And 7.8% are disagree with this
fact.

Interpretation: Majority of the respondents (35.3%) have neutral that multiple endorsements of
celebrities create a confusion. 24.5% of respondents have agree view while 18.6% of
respondents strongly disagree and 15.7% are disagree with this fact

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Interpretation: Majority of the respondents (38.2%) have agree and 25.5% respondents are
neutral when their favourite celebrity gets into controversy. 18.6% of the respondents were
have strongly agree while 12.7% of the respondents don’t agree with this fact.

Interpretation: Majority of the respondents (35.3%) have agreed that celebrity’s help in creating
a desire for a product. 24.5% of respondents have neutral view while 15.7% of the respondents
have strongly agree and disagree with this fact.

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CHAPTER 5

CONCLUSION

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 Film stars are most preferred celebrity for endorsing the advertisement.
 Television is most sought medium and mobile for knowing about celebrity
endorsement advertisement.
 Customers consider benefits as the main factor for buying the product.
 Customers are able to remember celebrity endorsed advertisement for longer time
than normal advertisement.
 Companies should use those celebrities which have profile matching with the
products.
 Companies should have back up if their celebrity endorsed is caught in controversy

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