Faculty of Technology Management

MBA in Technology Management

RESEARCH METHODOLOGY
EFFECTIVENESS OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOUR

Submitted To : - Prof. Amit Saraswat Prepared By : - Tejas Baldaniya (AM0110) Himanshu Geel (AM2010)

CEPT UNIVERSITY
Kasturbhai Lalbhai Campus, University Road, Navrangpura, Ahmedabad(GJ) 380009

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Email : fam@cept.ac.in ; Website : http://www.cept.ac.in

CONTENTS 1. Introduction 2. Concept of Celebrity Endorsement 3. Celebrity Endorsement in India 4. Mechanism and Theories of Celebrity Endorsement 5. Celebrity endorsement influence on consumers 6. Endorsement: Risk and Return 7. Research Methodology 8. Questionnaire Analysis 9. Application of Statistical Tools 10. Annexure

INTRODUCTION

Today one of the most prevalent forms of retail advertising is through using of celebrity endorsement. Marketers invest huge amounts of money in contracts with celebrity endorsers each year, since they believe that celebrities affect the process of selling of their brands or products. A celebrity endorser is a well-known person (e.g., actors, sports figures and artists) because of his successes in a special field other than the endorsed product class. Celebrity endorsers are used by firms who want to support a product or service. Usage of celebrities in advertisements could have many benefits and advantages including: 1) Facilitating of brand identification 2) Changing or impressing the negative attitude towards a brand 3) Repositioning an existing brand 4) Global marketing or positioning of a brand or product 5) Affecting purchase intentions of consumers.

CONCEPT OF CELEBRITY ENDORSEMENT

In India today, the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image building and product marketing. Associating a brand with a top-notch celebrity can do more than perk up brand recall. It can create linkages with the star¶s appeal, thereby adding refreshing and new dimensions to the brand image.

µCelebrities as brands¶ is a concept-selling challenge, as the current notion of celebrity management is far from ideal ± it¶s perceived as a business that merely attaches celebrity to the brand to get that added advantage. However, the actual job is not mere brokerage --- it¶s about selecting a celebrity whose characteristics¶ are congruent with the brand image. Celebrities embody a collection of culturally relevant images, symbols, and values. As the images of the celebrity become associated with the products through endorsement, the meanings they attach to the product are transferred to consumer through and consumption. Therefore, the practice for celebrity endorsement should be closely related to the cultural context in which the images of celebrities are formed and individual celebrities are selected to be linked with

particular products. Other highly ranked decision factors include celebrity/ target- audience congruence, costs of securing the celebrity, the celebrity¶s risk of controversy, and the celebrity¶s prior endorsement. The perceived importance and the actual use of endorser selection criteria may vary from culture to culture. Differences in the entertainment industry and the agency business, and more broadly, in the cultural environments are likely to influence the execution of the celebrity endorsement strategy across countries.

Celebrity endorsements are very expensive. Therefore their use in an ad should be justified. In other words, the message strategy for a brand should strongly warrant the use a known face in an idea. Sadly, very often the celebrity is hired first and an idea is then weaved around his or her presence. Shah Rukh Khan stresses, ³The important thing to remember is that putting a celebrity in an ad is not an idea in itself. Unfortunately, this is how most celebrities are being used in Indian advertising, where they just become a prop. Ideally, there should be an idea that makes the celebrity relevant to the product and the consumer´. A celebrity¶s presence in the ad should be contextual. When Sachin Tendulkar declares, ³Boost is the secret of my energy,´ it doesn¶t seem out of context. Internationally, Nike¶s association with Michael Jordan is legendary and also logical. When the product already has a strong identity and a USP that is well established, then a celebrity can come in and give the brand an added fillip and generate some more interest value. However, what is of paramount importance is to find a complete fit between the values of the brand and the values of the celebrity. One needs to create a unique situation or story that links the celebrity to the product.´

CELEBRITY ENDORSEMENT IN INDIA

Phase 1: The Pioneering Phase (1950-1980) This phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations Some bigger companies from their global experience introduced the concept of celebrity Endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties.

you get the customer excited by showing him a known face. Indian stars going global with events like Asiads and World Cup victory. and an effective demand is created. acceptance of the message depends on 'Expertness' and Trustworthiness' of the source. There was a spurt of advertising. The following are the theories of understanding celebrity endorsement:- 1. Vimal. Expertness is defined as the perceived ability of the source to make valid assertions.com ± article by Country head. Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. Source: www. A piece of research states that the target audience age group of 15-30 gets influenced first by cricketers. 2.rediff. In short it helps increase the recall value of the brand. festivals and food4. Trustworthiness is defined as the perceived willingness of the source to . All long existing and successful brands imbue their products with a meaning. Source Credibility Theory According to Source Credibility Theory. the following realities about brand management exist: 1. then Bollywood stars and only then music. Thums-Up. In the battle for the mind. O&M India MECHANISM AND THEORIES OF CELEBRITY ENDORSEMENT Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. Product differentiating factors are duplicable and imitable. Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings). Jalal Agha (Pan Parag Pan-masaala). Phase 3: Globalization In highly competitive markets. featuring stars like Tabassum (Prestige Pressure-cooker).Phase 2: The Growth Phase (1980-1990) The introduction of television added a variable effective medium of communication.

which is based on social psychological research. and somebody who cuts across both sex and age group. witty and enthusiastic. personality or lifestyle. I. Such a transfer takes place in three stages encoding meanings. II. meaning transfer. wealth. Familiarity is the audience's knowledge of the source through exposure. 3. which can be listed by age. likeability and similarity. Encoding Meanings: Each celebrity has a unique set of meanings. "We decided on Aamir because we wanted someone who is a bit iconic. celebrities can communicate this image more powerfully than lay endorsers. III. likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. 2. beliefs. This theory explains the message acceptance in two ways: Identification and Conditioning. between urban and rural India.make valid assertions. Conditioning is when the attractiveness of the source is supposed to pass on to the brand after regular association of the source with the brand. Titan. bubbly. race. On identification. a quote from Bijou Kurien. In this way. attitudes etc. Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product. the acceptance of the message depends on familiarity. and hence tends to accept his opinions. habits. Meaning Transfer: This stage transfers those meanings to the product. The theory says that consumers buy the endorsed product with the intention of capturing some of the desirable meanings with . The theory explains that a celebrity encodes a unique set of meanings which if well used can be transferred to the endorsed product. charming. Source Attractiveness Theory According to Source Attractiveness Theory. the celebrities encode a set of meanings in their image. A celebrity who is moldable and who is not over-exposed". Meaning Transfer Theory Grant McCracken has criticized the previous two theories and proposed the Meaning Transfer Theory. Meaning Capture: This assumes that consumers purchase products not merely for their functional value but also for their cultural and symbolic value. COO. gender. When skillfully portrayed. Identification is when the receiver or the target audience of the communication begins to identify with the source's attractiveness. For example Preity Zinta can be seen as a lively. meaning capture. who is style conscious himself.

It was found that celebrities are more commonly liked than a typical consumer spokesperson. This is more eminent in lifestyle products like clothes. there are three processes of social influence. if any. The effectiveness of celebrity advertising traditionally has not been strongly linked to this process. According to Kelman. This process of social influence is not directly applicable to celebrity advertising because there is little. cell phones etc.e. simply because they aspire to be like that person or group. payment of fee) as to an internal motive (i. This process is the basis for referent power. as a celebrity's reason for promoting a product can just as easily be attributed by the consumer to an external motive (i. perfumes. 3) Internalization as a process of social influence is said to occur when individuals adopt the attitude or behavior of another person because that behavior is viewed as honest and sincere and is congruent with their value system.e. 2) Identification applies to the situation wherein the individuals emulate the attitudes or behavior of another person or group.which celebrities have passed on to the product. which result in an individual adopting the attitude advocated by the communicator: 1) Compliance infers that another individual or group of individuals influences an individual because he or she hopes to achieve a favorable reaction from this other group. CELEBRITY ENDORSEMENT INFLUENCE ON THE CONSUMER The basis for the effectiveness of celebrity-endorsed advertising can be linked to Kelman's processes of social influence as discussed by Friedman and Friedman. the celebrity's true belief in the value and benefit of the product). ... interaction between the celebrity and the consumer.

but the techniques that can be used to enhance their credibility as spokespeople. . Risks y Celebrity overshadows the brand: In certain cases where the celebrity values category benefit and brand values are not closely linked. ENDORSEMENT: RISKS VS.An important issue of concern relates to the development of a strategy for use in Celebrity Advertising. The brand could slide down just as quickly as it moved up the consumers mind. There are chances that the celebrity is remembered more than a brand. Celebrities are well-liked. tie-in more closely with the internalization process needs to be looked into. which benefits from the dramatic impact of dual support of both the identification and internalization processes of social influence. The celebrity activity becomes an addiction and the task to find substitute becomes more and more difficult. RETURNS The basic assumption underlying celebrity endorsement is that the value associated with the celebrity is transferred to the brand and therefore help create an image that can be easily referred by consumers. Consequently by association the brand can very quickly establish the creditability get immediate recognition and improve sales. Cyber media research study reveals that 80% of the respondents approached for research remembered the celebrity but could not recall the brand being endorsed. and therefore. there are many risks associated with such endorsers. There are many cases of brands failing in the market place despite famous celebrities endorsing them. However. y Necessary Evil: Marketing have felt that once the brand rides the back of celebrity it becomes difficult to promote it without the star as it becomes difficult to separate the role of message and the role of the celebrity in selling the brand.

y Conflicting Image: A mix match between the image of the credibility and the product can damage both. For instance Azharuddin was charge with betting and match fixing.y Celebrity creditability a question mark for the competent customer: Today¶s marketing endorsement has to deal with a competitive and knowledgeable customer who has begun to voice his opinion about their perception about endorsing a brand. It actually leads to a greater fall in image for the brand. Amitabh Bachan command great adoration among people. Research has shown consumers have a higher level of message recall for products that are endorsed by celebrities. Returns y Build Awareness: A new brand can benefit greatly if a celebrity endorses it. It can attract the customer¶s attention and inquisitiveness to see what product is being endorsed. y Influence of Celebrity scandals and moral violation on brands: A number of entertainers and athletes have been involved in activities that could embarrass the companies whose products the endorsed. Celebrity is said to be fool the public as he is paid to sell and communicate good things about the brand. Celebrity endorsing multiple products and multi brands in a category has left the customer confused and has lead to dilution in the celebrities¶ value. which created negative feeling and repulsive thoughts among people for the products he was endorsing. When the endorser¶s image is finished. Hence the question of creditability of the celebrity being chosen to protect the brand is becoming pertinent. . y Connects Emotionally: Some celebrities like Shahrukh Khan. a great extents and hence tend to even connect with the brand emotionally because of their star enduring it. y Multiple Endorsements: The poly endorsement has lead to a celebrity clutter. Such celebrities can positively influence their fans etc. Unless there is a synergy between celebrities owns image and that of product category the strategy of endorsement is rendered futile.

Nerolac Paints and many others. y Better Brand Image: The use of celebrities could also bring in positive image among the masses for brand. . For instance. www.pdf RESEARCH METHODOLOGY Objective The main objective of this research is to conduct conclusive research to determine the effectiveness of Celebrity endorsements on brand value.y Quick Connect: The communication process tends to hasten up due to the more presence of a celebrity. Because of likeability.edu/e.bu.bu. Aishwarya Rai. y Means of Brand different ion: Using a celebrity is a source of brand differentiation.con/seminar/micro/pdffav/ celebendorse. recall attractiveness and creditability thereby helping the company to clearly and quickly pass on the message to the target customers. y Source of Imitation and hence inducing increased product usage: Celebrities actually tend to become models or idols for the target audience who tend to start using the product just because the celebrity name is attached with it. In a category where a brands is suing a celebrity the first that picks one up could use it differently itself in the market the same was done by Boost in the malted beverage category. Lux has been used by many as it is a beauty soap recommended by the beauty queen. The purpose of the study is to determine the influence that a celebrity endorsed products holds on the consumer psyche and attitude. This is because the star carrying the message tends to click with the customer more. The credibility and authenticity attached with Amitabh Bachan has inculcated trust for ICICI.

Alternate hypothesis: Celebrities have an effect on the brand image in the minds of the consumer.Hypothesis Null hypothesis: Celebrities don¶t have any effect on the brand image in the minds of consumer. .3 million) in 2009 as stated by New World Encyclopedia. City of Ahmedabad was chosen for survey being the seventh largest city in India with a population of 53 lakh (5. Sample size: 200 Persons of the city will be interviewed for this research.face to face interview and online. Data collection procedure: Data will be collected through two separate media. RESEARCH DESIGN Primary data: Primary data was collected through a structured questionnaire that consisted of series of questions that a respondent has to answer. Data Analysis: For data entry and analysis PASW Statistics 18 was used. Area of study and respondents: The study would be conducted on the people of Ahmadabad. In order to conduct survey the sample was drawn from all over India via online survey and it was supported by the Non probability sampling (Convenience sampling) conducted in the city of Ahmedabad. Sampling technique: Random Sampling Technique would be used in this research.

4 3. labels are given. used 1 for Yes.4 3. The variables or attributes are defined and codes are assigned accordingly.1 11.0 171 23 7 Percent 85.1 11. scales are defined appropriately in the SPSS input sheet.4 % were not and 3. . For other questions which follow nominal scaling simple labeling is done. QUESTIONNAIRE ANALYSIS 1.0 Observation Majority of consumer i.5 Percent 85. Are you influenced to buy the products endorsed by celebrity? Valid Frequency Yes No Not sure Total 201 100.5 100.Coding and transcribing: Coding converts the edited raw data into numbers or symbols.5 % were not sure whether the celebrity influences them or not. The columns cells denoted fields for the various questions (or we can say attributes or variables) present in the questionnaire in that order and the rows were for all the records obtained from the data collection process. The data was transcribed in a SPSS sheet following the coding from variable view. 85. while 11. For the dichotomous questions. 2 for No.e.1% were found to be influenced by celebrity endorsement of the product.0 100.1 96.5 Cumulative Percent 85.

2 25.0 100. while 25.0 3.2% people claimed it to be very important for them. b) Price Valid Frequency Very important Important Neutral Unimportant 50 136 10 5 Percent 24.0 Observation When asked about the quality 65.0 2.0 Total 201 100.0 98.9 92.5 1.7 5.5 Cumulative Percent 24.9 67.9 4.5 Cumulative Percent 65.9 4.0 100. Rank the following factors (1 to 5) that influences when you buy any product a) Quality Valid Frequency Percent Very important Important Neutral Unimportant Very unimportant Total 201 100.5 1.5 100.0 3. .2 91.0 95.5 97.2 25.5 Percent 24.0 Observation Price was held very important by 25 % of respondents and a hefty 67 % considered it important while 5% were neutral to the price and a mere 2.0 2.5 100.5% considered price unimportant.2.9 67.0 131 52 8 7 3 65.5 Percent 65.9% considered it important and in total 8% claimed quality being neutral to unimportant.7 5.

5% considered celebrity endorsement very important.8 100.c) Celebrity endorsement Valid Frequency Percent Very important Important Neutral Unimportant Total 11 67 71 52 201 5. 33.9 56.8 74.5 3.9 100.0 Observation Packaging was held very important by 2.0 Cumulative Percent 5.0 Percent 5.3 35.0 Observation 5.0 13.1 100.9 43.5 10.5 33.0 100.5 % of respondents and a mere 0.9 56.1% considered packaging from unimportant to very unimportant.0 5 1 22 60 113 2.5 % considered it important while 10. .9 % were neutral to the packaging and a cumulative 86. d) Packaging Valid Frequency Percent Very important Important Neutral Unimportant Very unimportant Total 201 100.9% considered it unimportant.2 Percent 2.5 38.5 10.3 35.3% were neutral towards celebrity endorsing the product and 25.3 25.3% stated it to be important while 35.9 29.2 Cumulative Percent 2.9 29.3 25.5 .5 .5 33.9 100.

5 97.5 Valid % 77.5% considered cricketers ineffective to very ineffective.0 1.2.6 Cumulative Percent 80.5 9.5 1.0 4.5 3. 8.1 8.5 100.1 85.5 3. 9.5 5.5 5.5 1.5% considered them effective while 5.5 100.1% (frequency 155) respondents found them very effective.6 80.5 % found them effective while 9 % were neutral and a cumulative of 5.5 98. Rate the type of celebrity endorsement according to your preference Bollywood Stars Valid Frequency Percent Percent Very Effective Effective Neutral Ineffective Very Ineffective Total 201 100.0 Cumulative% 77.6% (frequency 162) of respondents said them to be very effective.0 100.0 90.5 % didn¶t bothered who the endorser was and a cumulative of 4. Cricketers Frequency % Very Effective Effective Neutral Ineffective Very Ineffective Total 155 17 18 8 3 77.0 Observation Cricketers were a close second to bollywood stars as the endorsers for the product with a 77.0 4.1 8.6 Observation Bollywood stars were found to be choice for endorsement as 80.0 9.5 9.5 % found bollywood endorsers to be ineffective to very ineffective.0 95.0 201 100. .0 162 80.6 94.0 19 11 3 6 9.0 100.0 1.

0 Cumulative Percent 10.0 18.0 100.7 92. Social Worker Freque ncy Very Effective Effective Neutral Ineffective Very Ineffective Total 201 100.0 100.8 41.9 48.0 33.2 99.0 7.0 Valid Percent 10.3% called them ineffective and 8% called them very ineffective.0 4.0 4.3 8.0 Observation Social worker is also not the favorites of respondents when it came to endorsing the products where 10% considered them very effective. Only 4% considered them very effective while 14.8% were neutral and 41.8 1.Business Personality Business Personality Freque ncy Percent Valid Percent Cumulati ve Percent Very Effective Effective Neutral Ineffective Very Ineffective Total 8 30 97 64 2 201 4. .0 20 Percent 10.0 33.0 100.3 31.3 8.9 50.9 % considered them effective and 48.9 67.3 31.0 14.3% were neutral and 32.0 14. 7% called them effective while 33.0 100.0 Observation Business personalities were not fund to be effective when it came to endorsing the product as mostly consumers failed to recognize them or connect with them and also the level of trust on business personality was also low.8 % considered them ineffective to very ineffective.0 14 68 83 16 7.0 16.8 1.9 48.8 41.0 100.

0 Percent 7. 8% were not sure and only 7% believed that celebrities use the products they endorse.5 6.0 Valid Percent 7.5 6. 4. Do you believe the celebrities themselves use those products which they endorse Cumulative Frequency Yes No Not sure Total 14 171 16 201 Percent 7.0 85.1 8.3.0 100.0 100.0 100.0 92.5 3.0 Valid Percent 90.0 Cumulative Percent 90.0 Observation 90% of respondents positively felt that celebrities do elevate the image of the brand whereas just around 7 % felt that celebrity¶s endorsement doesn¶t affect the image of the brand.0 100.0 Observation Respondents had a clear majority with 85.1% believing that celebrities themselves don¶t use the product they endorse.5 97.0 100.0 85. Do you think that the presence of a celebrity can elevate the image of the brand? Frequenc y Yes No Not sure Total 182 13 6 201 Percent 90. .1 8.5 3.0 100.

0 Observation Around 94. Mahendra Singh Dhoni ±Pepsi Frequ Valid Cumulative Percent 39.0 Observation Dhoni as an endorser helped in creating an image in minds of consumer that is evident from 86.5 100.0 ency Percent Percent Excellent Good Neutral Total 79 95 27 201 39.5.3 86.3 47.5% of respondents had a positive attitude towards Hyundai having Shahrukh Khan as endorser.3 13.6% respondents having positive effect because of him. .3 13. Please rate the following celebrities as Brand ambassadors Shahrukh Khan-Hyundai Frequ ency Percent Excellent Good Neutral Total 47 143 11 201 23.1 5.5 100.4 71.4 71.0 39.4 100.5 100.0 Cumulative Percent 23.6 100.3 47.0 Valid Percent 23.4 100.1 5.4 94.

3 45.0 2.0 100.Coca Cola Frequ Valid Cumulative Percent 93.0 1.0 5.0 2.0 1.8 4.0 100.0 100.0 100.0 2.0 Observation Amir Khan was found to be more effective as an endorser as compared to Shahrukh Khan or Mahendra Singh Dhoni with 98% of respondents having a positive attitude towards him.3 93. .0 97.Aamir Khan.0 Observation Response of consumers towards Deepika was also found to be positive and people were able to connect brand BSNL with her as 93% of people had a positive response towards her.0 99.0 5.0 ency Percent Percent Excellent Good Neutral Total 187 10 4 201 93.8 4.0 100.0 2.3 45. Deepika Padukone ±BSNL Frequ Valid Cumulative Percent 47.0 ency Percent Percent Excellent Good Neutral Fair Poor Total 95 92 8 4 2 201 47.0 98.0 93.0 47.0 100.

0 23.9 62.0 23.2 91.0 Valid Percent 2.3 28. .0 Cumulative Percent 2.9 9.2% rated him between fair to poor as an endorser.Vishwan athan AnandNIIT Excellent Good Neutral Fair Poor Total Freque ncy 4 48 73 58 18 201 Percent 2.0 100.9 36.0 Observation Chess grandmaster was the last choice for consumers as only 25.0 25.9 9.9% had a positive response towards his while a majority of 65.9 36.0 100.3 28.0 100.

331a 4. y Null Hypothesis Ho ± Relationship is due to chance.APPLICATION OF STATISTICAL TOOLS Cross tabulation The objective is to find whether there exists a statistically significant relationship between two variables age and the influence to buy celebrity endorsed products. Sig.There exists a statistically significant relationship between age and the influence to buy celebrity endorsed products.766 . y Alternate Hypothesis H1.796 1.0% Age * Are you influenced to buy the products endorsed by celebrity? Cross tabulation Count Are you influenced to buy the products endorsed by celebrity? Yes Age 15-21 22-30 31-40 41-50 Total 27 133 9 2 171 No 6 17 0 0 23 Not sure 1 6 0 0 7 Total 34 156 9 2 201 Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.570 .0% N 0 Missing Percent .208 .0% N 201 Total Percent 100. (2sided) . Case Processing Summary Cases Valid N Age * Are you influenced to buy the products endorsed by celebrity? 201 Percent 100.585 201 df 6 6 1 Asymp.

In order to determine whether or not this value indicates a significant relationship.05.766 in the column for the Pearson Chi-square statistic.011 . (2-tailed) N 201 -.041 . Correlations Bollywood Stars Bollywood Stars Pearson Correlation Sig.084 . y if the probability is greater than .05.108 .072 . we can retain the null hypothesis of chance as an explanation and conclude that there is no statistically significant relationship between Age and the influence to buy celebrity endorsed product. Note that this means the probability is actually greater than .041 .331.559 201 -. So since the probability is greater than .05.312 201 1 .072 .05.126 201 . The probability is .108 . (2-tailed) N Shahrukh Khan-Hyundai Pearson Correlation Sig. CORRELATIONS The objective is to find the degree of relatedness between y Bollywood stars and Shah Rukh khan as endoser for Hyundai. (2-tailed) N Mahendra Singh Dhoni ± Pepsi Pearson Correlation Sig. then the variables are significantly related.238 201 201 -.126 201 -.238 201 -.559 201 1 -. (2-tailed) N Cricketers Pearson Correlation Sig. y Cricketers and Mahendra Singh dhoni as endorser for Pepsi.084 .637 201 -.312 201 201 1 Shahrukh Khan-Hyundai Cricketers -.033 .033 . we need to examine the probability that this distribution of frequencies occurred by chance alone.873 201 -.011 . then the variables are not significantly related y if the probability is less than or equal to .The Chi square value is 3.637 201 201 -.873 201 1 Mahendra Singh Dhoni ±Pepsi .

Deviation . associated with the r value of .2836 Std.57224 Std.312)..There exists a statistically significant relationship. or probability (p). p = .06991 .y y Null Hypothesis Ho ± Relationship is due to chance. Alternate Hypothesis H1.072.03480 . Group Statistics Gender Are you influenced to buy the Male products endorsed by Female celebrity? N 134 67 Mean 1. and conclude that the variables are unrelated. and conclude that there is a statistically significant relationship between pair of variables.40283 . and a strong positive correlation between Cricketer and Mahendrasingh dhoni endorsing Pepsi (r =-. then we retain Ho.559).05 or less. y Null hypothesis ± Any significant differences are not significant but rather due to chance y Alternate hypothesis ± There exists a statistically significant relationship between gender and influence of celebrity endorsed product. p =.041 . Using the above guidelines looking across the first row of the matrix. we can conclude that there is no relationship between Bollywood star and Shahrukh khan endorsing Hyundai (r = -. Error Mean .1343 1. T-TEST The objective is to determine whether there is relationship between Independent variable -Gender and dependent variable-Influence of celebrity endorsed products. then we reject Ho. The way to interpret the degree of relationship of whether or not the variables are significantly related is: y y If the Sig. If p > .05.

y . (2-tailed) column in the (p = . the variances of the two groups are not equal. The results of the F test determine whether to use the Equal variances assumed rows or the Equal variances not assumed rows in evaluating the t statistic. Sig.059) is greater than . concluding that there was no significant difference between gender and influence of celebrity endorsed product between gender and influence of celebrity endorsed product.14925 .28672 influenced to assumed buy the Equal variances not -1. Thus. > . then use the output in the Equal variances assumed rows. T df Are you Equal variances 15.05.07809 -. The probability in the Sig.141 199 . we see a t value of 1. The decision rule for determining which rows to use is as follows: y y If the variances for the two groups are equal (i.14925 .05). < . then use the output in the Equal variances not assumed row.e.05.Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Sig.000 -2.721 . = .033 -. meaning that we need to retain the null hypothesis of no differences.00568 F Sig.059 -.000) for the F value is less than .Mean Error Difference taile Differen Differen d) ce ce Lower Upper -. Looking in the Equal variances not assumed row. Since the probability (Sig. Interval of the (2.30419 products assumed endorsed by celebrity? The first two columns labeled Levene's Test for Equality of Variances provides a test of one of the assumptions of the t-test.e.997 .05). and therefore the output in the Equal variances not assumed row should be used. If the variances for the two groups are significantly different (i.01179 . Std.911. Sig.911 99.06971 -.

3682 1.81115 1.5025 1.88531 .89792 201 . Deviation .0100 products which they endorse? Do you think that the presence of a celebrity can 1.FACTOR ANALYSIS AND ITS INTERPRETATION Descriptive Statistics The first output from the analysis is a table of descriptive statistics for all the variables under investigation.92085 .1244 elevate the image of the brand? If yes then rate them in the scale of stars in which one 1.7413 .6866 star denotes the less effect and five star denotes excellent effect? Shahrukh Khan-Hyundai Mahendra Singh Dhoni ±Pepsi 1.41165 201 .61450 . Typically.08(Here we are considering the lowest and not the highest mean because of the ascending order of scale) Descriptive Statistics Mean Std.3682 1.84926 . one can conclude that presence of Bollywood actors is the most important variable that influences customers to buy the product. the mean.50770 .8159 2. Looking at the mean.4428 3.8209 1.3035 201 201 201 201 201 201 201 201 201 201 Do you believe the celebrities themselves use those 2.88371 . It has the mean of 1.8507 2.05472 .71855 .68025 201 201 .1095 3. standard deviation and number of respondents (N) who participated in the survey are given.89094 .6219 4.38717 Analysis N Quality Price Celebrity endorsement Credibility of product Packaging Bollywood Stars Cricketers Business Personality Social Worker 1.

This means that the correlation matrix is not an identity matrix. . The KMO measures the sampling adequacy which should be greater than 0. A correlation matrix is simply a rectangular array of numbers which gives the correlation coefficients between a single variable and every other variable in the investigation.47258 .3333 1.931 171 . From the same table. the KMO measure is 0. we can see that the Bartlett's test of sphericity is significant. For instance over 80% of the variance in quality of product is accounted for while 72% of the variance in celebrity endorsement is accounted for. its associated probability is less than 0. Communalities The next item from the output is a table of communalities which shows how much of the variance in the variables has been accounted for by the extracted factors.8955 .34920 . The correlation coefficient between a variable and itself is always 1. Looking at the table below. That is.96648 .1891 1.74326 .05.417.6368 3.000. In fact.Coca Cola Deepika Padukone ±BSNL Vishwanathan Anand-NIIT Gender Age 1.000 . Kaiser-Meyer-Olkin (KMO) and Bartlett's Test The next item from the output is the Kaiser-Meyer-Olkin (KMO) and Bartlett's test. hence the principal diagonal of the correlation matrix contains 1s.5 for a satisfactory factor analysis to proceed. The correlation coefficients above and below the principal diagonal are the same.Aamir Khan. Chi-Square Df Sig. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx.0896 1. it is actually 0.49399 201 201 201 201 201 The Correlation matrix The next output from the analysis is the correlation coefficient.417 303.

000 1.000 1.000 Extraction .000 image of the brand? If yes then rate them in the scale of stars in which one star 1.000 1.000 1.716 .000 1.000 1.461 .635 .538 .633 .277 . 1.552 .545 .000 1.000 1.000 .Coca Cola Deepika Padukone ±BSNL Vishwanathan Anand-NIIT Gender Age Extraction Method: Principal Component Analysis.501 .446 .000 1.607 .704 .434 .529 .000 1.000 1.000 1.645 .724 .572 Do you believe the celebrities themselves use those products 1.000 1.000 denotes the less effect and five star denotes excellent effect Shahrukh Khan-Hyundai Mahendra Singh Dhoni ±Pepsi Aamir Khan.000 which they endorse Do you think that the presence of a celebrity can elevate the 1.Communalities Initial Quality Price Celebrity endorsement Credibility of product Packaging Bollywood Stars Cricketers Business Personality Social Worker 1.563 .000 1.800 .

017 39.748 .438 5.223 1.438 5.Total Variance Explained The next item shows all the factors extractable from the analysis along with their Eigen values.855 . The first factor accounts for 9.287 1.501 3.9%.693 4.6.7.094 8.289 7.020 .845 5.505 1.608 46. Total Variance Explained Co mpo nent Initial Eigen values Extraction Sums of Squared Loadings Total % of Variance Cumulative % Rotation Sums of Squared Loadings Total % of Varian ce 9.4%.255 5.504 33.033 4.584 25.998 .891 57.756 8.891 57.8 %and 5.020 9.428 1.046 51.110 1.892 .813 Cumulativ e% Total %of Variance Cumulative % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1.261 .370 9.017 39.509%.994 .724 1.505 1.631 7.5%.700 44.584 25.591 6.920 7.286 7.845 5.261 1.6.046 51.223 1.233 5.075 17.781 77.261 62.505 57.384 1.575 1.937 3.516 67.110 1.509 7.5%.075% of the variance. and the cumulative variance of the factor and the previous factors.956 . the second 8. then 7.919 23.608 46.252 1.775 5.514 6.392 7.724 1.350 1.450 1.3%.509 7.591 6.336 1.370 5.030 6.975 85.724 1.428 1.474 81.404 1.252 1.5.725 9.075 8. All the remaining factors are not significant.504 33.289 15.311 30.075 17.617 1.514 6.749 72.103 7. the percent of variance attributable to each factor.911 89.920 7.730 51.617 1.597 37.075 8.

797 95.584 . Note also that factor 9 has an Eigen value of less than 1. Component (Factor) Matrix The table below shows the loadings of the variables on the eight factors extracted. It can be seen that the curve begins to flatten between factors 8 and 9.683 98. The graph is useful for determining how many factors to retain.360 100. Scree Plot The scree plot is a graph of the Eigen values against all the factors.16 17 18 19 .677 1.072 2. The higher the absolute value of the loading. the more the factor contributes to the variable.548 . this makes reading the table easier.509 .000 Extraction Method: Principal Component Analysis. . The gap on the table represent loadings that are less than 0. so only eight factors have been retained.886 2.312 3.5.640 92. The point of interest is where the curve starts to flatten.

352 .Component 1 Celebrity endorsement Cricketers Social Worker Quality Packaging Credibility of product If yes then rate them in the scale of stars in which one star denotes the less effect and five star denotes excellent effect Price Do you think tat presence of a celebrity can elevate the image of the brand? Vishwanathan Anand-NIIT Do you believe the celebrities themselves use products which they endorse Age Aamir Khan.323 -.427 .439 -.408 .335 .352 .466 .578 -.379 -.326 .428 .380 .382 -.314 .499 -352 .433 -.304 .340 -.433 .403 .534 .389 -.411 .Coca Cola Business Personality Bollywood Stars Deepika Padukone ±BSNL Shahrukh Khan-Hyundai Mahendra Singh Dhoni ±Pepsi Gender .331 -.426 .704 -.469 Extraction Method: Principal Component Analysis.428 2 3 .496 .321 4 5 6 7 8 -.459 .383 -. .425 -.588 .470 .303 -.321 .709 .425 .

we can see that Celebrity endorsement.388 .Rotated Component (Factor) Matrix The idea of rotation is to reduce the number factors on which the variables under investigation have high loadings.510 -.379 .605 .Quality and Price are substantially loaded on Factor 2.767 -. Rotated Component Matrixa Component 1 Celebrity endorsement Packaging Quality Price Shahrukh Khan-Hyundai Deepika BSNL Padukone ± .Credibility and businesses personality are loaded on Factor 7.468 . Looking at the table below.718 .331 .354 2 3 4 5 6 7 8 Do you think that the presence of a celebrity can elevate the image of the brand? Bollywood Stars Social Worker Do you believe the celebrities themselves use those products which they endorse Vishwanathan NIIT Anand- . Bollywood Stars and Social Worker are loaded on Factor 5.631 .630 .746 .686 -.591 .825 . Rotation does not actually change anything but makes the interpretation of the analysis easier.579 -. Packaging and are substantially loaded on Factor 1 .

720 -.202 .419 .031 -.374 .528 -.623 Component Transformation Matrix Compo nent 1 1 2 3 4 5 6 7 8 -.261 -.444 .503 -.220 .897 .Coca Cola Credibility of product Business Personality Mahendra Singh Dhoni ±Pepsi Gender Extraction Method: Principal Component Analysis.028 -.546 .539 .229 .071 .082 2 -.420 .466 . a.118 5 -.242 -.239 .126 -.360 .642 -.398 .251 .223 -. Rotation Method: Varimax with Kaiser Normalization.026 .013 -.239 -.074 .208 .426 . -.177 -.043 3 .685 .494 .321 .229 .070 .220 .684 .560 -.151 -.641 -.593 .378 7 .782 -.389 .168 .040 -. Rotation converged in 12 iterations.170 .447 .371 .377 .357 -.308 -.434 .090 8 -.492 -.150 4 -.304 .389 -.152 -.361 -.016 6 -.Age Cricketers If yes then rate them in the scale of stars in which one star denotes the less effect and five star denotes excellent effect Aamir Khan.158 .562 .099 .414 .417 -.669 .222 .

00 4.150 4 -.466 .043 3 .00 1.00 1.152 -.560 -.593 .177 -.562 .261 -.503 -.00 2.00 4.00 3.222 .00 5.00 1.398 .220 .389 .528 -.304 .208 .00 2.026 .414 .546 .00 2 1.374 .419 .447 .00 4.031 -.684 .168 .371 .308 -.126 -.028 -.00 2.151 -.Component Transformation Matrix Compo nent 1 1 2 3 4 5 6 7 8 -.00 3.00 .099 .00 1.361 -.00 4.202 .00 5.00 4.229 .229 .040 -.434 .389 -.00 1.642 -.070 .00 1.158 .239 .00 1.223 -.00 5.444 . Quick Cluster Initial Cluster Centers Cluster 1 Are you influenced to buy the products endorsed by celebrity? Quality Price Celebrity endorsement Credibility of product Packaging Bollywood Stars Cricketers Business Personality Social Worker Do you believe the celebrities themselves use those products which they endorse Do you think that the presence of a celebrity can elevate the image of the brand? If yes then rate them in the scale of stars in which one star denotes the less effect and five star denotes excellent effect 1.378 7 .00 3.897 Extraction Method: Principal Component Analysis.016 6 -. Rotation Method: Varimax with Kaiser Normalization.170 .00 2.377 .090 8 -.239 -.082 2 -.071 .417 -.013 -.220 .426 .074 .00 2.251 .685 .118 5 -.242 -.00 1.492 -.

053E-13 1.00 3.437 1.000 2.000 2.00 2.000 .00 2.00 1.00 2.073 .00 Iteration Historya Change in Cluster Centers Iteration 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1 2.011E-15 .510E-12 2.879 .Coca Cola Deepika Padukone ±BSNL Vishwanathan Anand-NIIT Gender Age 1.913E-11 3.092E-8 5. The maximum absolute coordinate change for any center is .888E-6 1.348E-7 9.00 2.00 2. The current iteration is 17.00 1.00 2.00 4.005 .778E-11 3.71 . Convergence achieved due to no or small change in cluster centers.000 .000 .069 .000 .000.Shahrukh Khan-Hyundai Mahendra Singh Dhoni ±Pepsi Aamir Khan.879E-10 4.828E-14 2.175E-15 .074 .000 .00 2. The minimum distance between initial centers is 8.501E-13 1.630E-9 6.00 1.064E-6 1.000 a.227 1.643E-5 1.000 .00 1.000 .015 .000 2 4.

09 3.88 1.50 1.67 1.35 1.06 2 1.19 2.75 2.Final Cluster Centers Cluster 1 Are you influenced to buy the products endorsed by celebrity? Quality Price Celebrity endorsement Credibility of product Packaging Bollywood Stars Cricketers Business Personality Social Worker Do you believe the celebrities themselves use those products which they endorse Do you think that the presence of a celebrity can elevate the image of the brand? If yes then rate them in the scale of stars in which one star denotes the less effect and five star denotes excellent effect Shahrukh Khan-Hyundai Mahendra Singh Dhoni ±Pepsi Aamir Khan.25 1.16 1.06 2.32 1.11 3.09 1.75 1.61 3.35 1.06 1.50 1.19 2.63 2.35 2.83 1.83 2.76 1.06 1.19 .94 3.06 1.31 2.88 1.13 2.56 1.Coca Cola Deepika Padukone ±BSNL Vishwanathan Anand-NIIT Gender Age 1.87 2.01 1.81 1.45 3.66 4.38 3.50 1.

681 .070 .630 72.319 .243 199 199 199 199 199 199 199 .274 1 .080 .383 . The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal.865 4.376 .369 2.748 .826 .259 .159 . .760 .315 .282 The F tests should be used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters.298 .872 1.852 .200 .Coca Cola Deepika Padukone ±BSNL Vishwanathan Anand-NIIT Gender Age .930 .562 .104 2.794 .572 1.338 2.122 .547 .013 1.807 199 .717 5.750 .000 .221 df 199 F 1.325 .094 1.028 .880 .807 1.164 Sig.091 .003 .999 .087 1.765 .370 .092 .004 .292 42.576 .497 .223 .331 .150 199 199 199 199 199 199 199 199 199 199 236.012 .779 6.485 1 1 1 1 1 1 1 .573 .204 78.075 9.048 1 1 1 1 1 1 1 1 1 1 .364 .257 df 1 Error Mean Square .ANOVA Cluster Mean Square Are you influenced to buy the products endorsed by celebrity? Quality Price Celebrity endorsement Credibility of product Packaging Bollywood Stars Cricketers Business Personality Social Worker Do you believe the celebrities themselves use those products which they endorse Do you think that the presence of a celebrity can elevate the image of the brand? If yes then rate them in the scale of stars in which one star denotes the less effect and five star denotes excellent effect Shahrukh Khan-Hyundai Mahendra Singh Dhoni ±Pepsi Aamir Khan.996 .199 .169 199 1.180 .000 .661 1.658 1.090 4.617 1 .140 .460 .151 .657 . .149 8.624 .

etc. regional appeal factors.CONCLUSION : The number of clusters in this problem are 2 in which first one has 16 number of cases and second cluster has 185 cases. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favourable impact.000 .000 201. the commercials of Accenture and Gillete were all taken off air so that they did not have a negative effect on the brand. There are definitely some brands that go unnoticed and the recall for those stands is at a bare minimum. The consumer looks for a variety of aspects from the endorsement like the credibility and likeability of the endorser. Professional performance of the endorser is important in deciding the success of the endorsement. the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as a assured strategic tool to win profits. it is the association of the celebrity with a controversy or ill-behaviour that causes negative impact to the endorsements. revenues. attractiveness.000 185. Multiple endorsements do clutter the minds of the consumer. then the recall of the endorsement depends entirely on the power of the brand. . Credibility also means the fit between the brand and the celebrity. belief system are some other important platforms. popularity. The celebrities¶ accessibility. which are raised when we study the impact of celebrity endorsement on brands. More than the bad performance in the professional field. this term paper brings forth the following insights: y Celebrity endorsements do work in the Indian scenario. y y y y So. Number of Cases in each Cluster Cluster 1 2 Valid Missing 16. market share. During the Tigerwoods scandal. When one endorser endorses many brands.000 CONCLUSIONS Through analysis and research.

QUESTIONNAIRE Note: We are MBA-Technology Management students at CEPT University. Which celebrity product did u bought last and why ? ______________________________________________________________________________ 3. This questionnaire is a part of our academic study and the data collected would be purely used for academic purpose only. Very Effective Bollywood Stars Cricketers Business Personality Social Worker Others If others please specify: ______________________________ Effective Neutral Ineffective Very Ineffective 5. Ahmedabad. Rate the type of celebrity endorsement according to your preference. Rank the following factors (1 to 5) that influences when you buy any product (1 for the most influenced factor and 5 for the least influenced factor) ___ Quality of the product ___ Prices (Discount and Offers) ___ Celebrity Endorsement ___ Credibility of the product ___ Packaging If any other please specify ______________________ 4. Do you believe the celebrities themselves use those products which they endorse? a) Yes b) No c) Not sure . 1. Are you influenced to buy the products endorsed by celebrity? a) Yes b) No c) Not sure 2.

6. Please rate the following celebrities as Brand ambassadors Excellent Shahrukh Khan-Hyundai Mahendra Singh Dhoni ± Pepsi Aamir Khan.Coca Cola Deepika Padukone -BSNL Vishwanathan Anand-NIIT Good Neutral Fair Poor 8. Location _________________________ 9. ***** 7. Gender a) Male b)Female 10. Do you think that the presence of a celebrity can elevate the image of the brand? a) Yes b) No c) Not sure If yes then rate them in the scale of stars in which one star denotes the less effect and five star denotes excellent effect. Age a) 15-21 b) 22-30 c) 31-40 d) 41-50 BIBLIOGRAPHY .

O&M India indiainfoline.bu.rediff.coolavenues.pdf McCracken. 310-321 .magindia.y y y y y y y www. 16 (December).bu.com www.indiantelevision.com www. Grant (1989).edu/e.com www. "Who is the Celebrity Endorser?" Journal of Consumer Research.com ± article 'Celebrity Endorsements in brands. www.com ± article by Country head.con/seminar/micro/pdffavcelebendorse.

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