EXPLORING THE IMPACT OF CELEBRITY ENDORSEMENTS ON

PURCHASE INTENTION AND BRAND LOYALTY AMONG THE

PEOPLE OF CHANDIGARH (TRICITY)

RESEARCH PROJECT FOR THE FULFILLMENT OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

FOR THE BATCH 2019-21

UNDER
HONOURS SCHOOL SYSTEM
AT
UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY
CHANDIGARH

SUBMITTED TO
PROF. MANOJ KUMAR SHARMA
UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY, CHANDIGARH
SUBMITTED BY
SARA BHARAT BUDHIRAJA
MBA-B, 4th SEMESTER
UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY, CHANDIGARH

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DECLARATON BY STUDENT

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 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Prof. Manoj Kumar Sharma as
well as my panel members Prof. Neha Gulati and Prof. Rupinder Bir Kaur who guided me all
along the course of my research project on the topic Exploring The Impact Of Celebrity
Endorsements On Purchase Intention And Brand Loyalty Among The People Of Chandigarh
(Tricity) which also helped me in understanding and learning how to carry out Research and many
other new things I am really thankful to them.

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SIMILARITY REPORT

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5
6
Signature:
Date: 25 March,2021

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TABLE OF CONTENTS

DECLARATON BY STUDENT ................................................................................................................. 2

ACKNOWLEDGEMENT ........................................................................................................................... 3

SIMILARITY REPORT .............................................................................................................................. 4

TABLE OF FIGURES .............................................................................................................................. 11

ABSTRACT.............................................................................................................................................. 12

CHAPTER – 1 .......................................................................................................................................... 14

INTRODUCTION..................................................................................................................................... 14

1.1 Features of a Celebrity ..................................................................................................................... 16

 Attractiveness ....................................................................................................... 16

 Likeability ............................................................................................................. 16

 Trustworthiness .................................................................................................... 16

 Expertise ............................................................................................................... 17

 Buying Intention ................................................................................................... 18

 Brand Loyalty ....................................................................................................... 18

1.2 Endorser and kinds of Endorsers ...................................................................................................... 18

1.3 Celebrity Endorsement for Promotional opportunities ...................................................................... 20

1.4 Celebrity Values .............................................................................................................................. 20

1.5 Celebrity Endorsement as methods .................................................................................................. 20

1.6 Choice of Celebrity .......................................................................................................................... 22

1.7 The Benefits of Celebrity Endorsements .......................................................................................... 23

CHAPTER - 2 ........................................................................................................................................... 24

REVIEW OF LITERATURE .................................................................................................................... 24

MODEL OF STUDY: ........................................................................................................................... 27

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CHAPTER – 3 .......................................................................................................................................... 28

RESEARCH MEHODOLOGY ................................................................................................................. 28

OBJECTIVES ....................................................................................................................................... 28

HYPOTHESES ..................................................................................................................................... 29

PARTICIPANTS ................................................................................................................................... 30

INSTRUMENT ..................................................................................................................................... 30

PROCEDURE ....................................................................................................................................... 30

CHAPTER -4 ............................................................................................................................................ 31

DATA ANALYSIS ................................................................................................................................... 31

4.1 Gender of respondents ..................................................................................................................... 31

4.2 Age of respondents .......................................................................................................................... 32

4.3 Occupation ...................................................................................................................................... 33

4.4 Family Income ................................................................................................................................. 34

4.5 Correlation ...................................................................................................................................... 35

4.6 Regression ....................................................................................................................................... 36

Age .............................................................................................................................. 36

Gender ........................................................................................................................ 37
4.7 Regression ....................................................................................................................................... 38

4.8 Correlation ...................................................................................................................................... 39

4.9 One Sample T-test............................................................................................................................ 40

4.10 One Sample t-test........................................................................................................................... 41

CHAPTER – 5 .......................................................................................................................................... 42

FINDINGS AND CONCLUSION ............................................................................................................. 42

5.1 CONCLUSION ............................................................................................................................... 42

5.2 FUTURE SCOPE ............................................................................................................................ 44

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 5.3 LIMITATIONS ............................................................................................................................... 45

REFERENCES ......................................................................................................................................... 46

ANNEXURE QUESSTIONNARE ............................................................................................................ 49

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 TABLE OF FIGURES

Figure Page No.

Figure 1 27
Figure 2 31
Figure 3 32
Figure 4 33
Figure 5 34
Figure 6 35
Figure 7 36
Figure 8 36
Figure 9 36
Figure 10 37
Figure 11 37
Figure 12 37
Figure 13 38
Figure 14 38
Figure 15 38
Figure 16 39
Figure 17 40
Figure 18 40
Figure 19 41
Figure 20 41

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ABSTRACT

In recent years, celebrity endorsement has become one of the most well-known forms of advertisement.
Essentially, it is a type of marketing communication that is used to persuade an audience to take some
action, and celebrity advertising has become a factor in today's dynamic marketing climate for high
acceptance and the creation of strong product interest. Every year, millions of dollars are invested on
celebrity contracts with the assumption that the rewards of doing so would outweigh the costs. As a
result, several studies have looked into the effects of celebrity endorsements on the efficacy of ads. The
match-up hypothesis is one of the hypotheses that these researchers often employ. This theory suggests
that there should be a good fit between the celebrity and the product; however, it is not clear what
constitutes a good fit. Some researchers suggested that attractive celebrities will be more effective if
they are used to promote attractiveness-related products. Other researchers claimed that when there is
congruence between the product type and the celebrity profession, advertising effectiveness will be
enhanced; however, these existing dimensions of the match-up hypothesis fall short of explaining some
popular celebrity endorsement campaigns (e.g., Sharpie Pens and David Beckham). Celebrity
endorsements have gained in popularity over time and are now considered a successful technique for
product marketing and brand growth. In the modern era, there has been a change in consumer
perceptions of lifestyle. In order to reach a higher standard of living, consumers place a high
importance on brands. When it comes to purchasing products, today's customers are not only well-
informed, but also picky. On a regular basis, consumers are exposed to a wide range of voices on the
radio and television, as well as photos in newspapers, magazines, hoardings, and blogs. As a result,
every marketer needs to snatch at least a fraction of a person's time in order to remind him or her of the
product's wonderful and exclusive features, and marketers use celebrity endorsement as an effective
marketing tool to fit their products into customers' minds. Celebrity endorsement is a marketing
strategy used by corporations and some non-profit organisations to promote VIPs and a prominent
presumed or scholarly person by leveraging their financial resources and public recognition. It helps an
organisation promote an object, service, or even bring concerns to light about an item, despite the fact
that global organisations use celebrity support in promotions because it is widely acknowledged that
VIPs in advertisements play an important role in consumer buying behaviour, purchase intent, and
image devotion. Individuals in India often look up to superstars, such as actors and cricketers, and
emulate their habits, such as dressing, hairdos, and proclivities, among other things. This paper is an

12
effort to analyze the impact of celebrity endorsements on purchase intention and brand loyalty on the
people of Chandigarh (Tricity). Questionnaire survey was used to collect the data by using convenience
sampling.

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CHAPTER – 1

INTRODUCTION
Celebrities are seen as role models in today's society. People's lifestyles are changing as a result of their
favourite celebrity. This has a direct effect on the person's purchasing conduct. This draws clients and,
as a result, boosts business productivity.
Celebrities are not always creating any kind of effect on a person's mind in terms of buying. But mostly
it gives a great impact on perception of choosing any product. We are always thinking that our favorite
celebrities are using them. Then we should use that to be like them (Khatri 2006).
From the last 150 years advertising is changing in different phases from the classical to modern.
Nowadays it’s the best strategy used by marketers to influence customers by showing celebrities with
their products, it includes different appeals like, exciting, absurdity, sexual etc. (Belch, G. and Belch,
M. 2008) acknowledging that the main aim of formulating such strategies is to get high brand
revelation, longing, concentration and curiosity. To do so, marketers attach famous personalities’
with their products. (McCracken 1989) stated that these famous personalities’ had great influence on
the consumer’s buying behavior that’s why it has become the most attractive tool of advertising
nowadays. The major aim to do advertising and adopt this strategy is to influence customers towards
the products (Ohanian 1990)
Celebrity Endorsement is a marketing engagement technique that involves celebrities endorsing or
marketing a product or service. Manufacturers claim that every time certain celebrities have an impact
on customers' perceptions of their goods, product revenue and brand loyalty will rise over time. These
are the most important reasons why companies employ celebrities to sell their products. Corporations
and international corporations spend billions of rupees on movie stars and cricketers to promote their
goods. Multinational corporations claim that movie stars and cricketers influence customers' buying
goals in India. These celebrities are public figures who have a certain reputation in society and have a
certain amount of control over consumers when it comes to their branding items. They imbue the
product or logo with their personality, increasing the effect customers have on the product. In a
particularly competitive and violent environment, celebrity endorsement has become a standard practise
in order to distinguish the product from similar competing manufacturers. Any advertisement strategy's
ultimate objective is to influence the targeted market's actual behaviour, whether it's purchasing intent
or actual consumption. If any advertising and marketing methods fail to attain the same, the millions of
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greenbacks spent aren't well worth it. According to a study by McKinsey International Institute (MGI),
India's consumer market will be the 5th largest in the world by 2025, valued at $511 billion today.
Customers in India are often exposed to a plethora of new items on a daily basis as a result of
marketers' differentiation and positioning strategies. As a result, exploring the effect of celebrity
endorsements on purchase intent and brand loyalty in India will be exciting. This research study may be
useful in understanding the attitude and attitudes of Indian consumers against celebrity endorsements
from a business perspective. They believe that celebrities will influence their potential customers'
purchasing decisions because they hold special places in their hearts. As a result of reading the level of
interest in watching celebrities, the companies began recruiting a slew of movie and sports stars for
advertisements, and the promotional budgets for ads have skyrocketed in comparison to previous
investments. The agencies invest billions of rupees over hiring a celebrity for his or her product
promoting. Such endorsers are noticeable as energetic with each appealing, pleasant qualities and
groups plan that those characteristics are transferred to products or services. It is observed that study
improves in terms of brand loyalty and purchase intentions of consumers in given city. This research is
planned to be conducted on “impact of celebrity endorsement on purchase intention and brand loyalty”;
this behavior will judge the purchase intention of consumers and loyalty towards the brand, this
research will focus on the buying intention of the people in Chandigarh from the age groups of 18 to
60. To identify whether there is any association between the three groups of consumers
(supporters/neutral/opposers of celebrity endorsement); applying multi-logic analysis to identify the
probability of a consumer in becoming a supporter/neutral/opposer of the celebrity endorsement based
on demographic profiles of consumers; to examine the celebrity attributes likely to influence consumer
purchase intentions.
Credibility, beauty, product matchup, and value transfer are the four key pillars of celebrity
endorsement. Celebrity endorsement is made up of all four of these items. The results of this study
indicate that a celebrity's factor of reputation (which is made up of experience and trustworthiness) has
a positive impact on consumers' desire to buy goods.
Celebrities also impart meaning to the product, which has a positive impact on customer intent. This
sense transfer means that customers begin to agree that celebrity-endorsed goods make them feel classy
and glamorous, and that such products are often seen as a status symbol. This study also found that
consumers are more drawn to celebrity-endorsed commercials compared to those without celebrities,
which leads to them recalling items more easily because celebrities appeared in those advertisements.

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1.1 Features of a Celebrity

 Attractiveness
When we look at marketing writing, we can see that engaging consistency is clearly alluded to as a
critical factor in determining the feasibility of using a hotshot endorser. It is assumed that when
message recipients see a stock message as familiar, identical to them, and agreeable, the excellence
increases the beneficiaries' ability to like a positive item as message recipients are supposed to like a
positive item because they're drawn in to the stockpile message. The majority of previous research has
concentrated on the impact of allure closer to mindset and point in income settings. Nonetheless,
conversations in the area of non-pay settings are impressively deficient. In evolving mentalities of
message recipients, class in writing has been guaranteed as an indispensable property of an inventory
message. Big name endorsers generously engage consistency as a significant sign to boost the buy
target as well as console to the purchaser's picture devotion. Agreeing to, a well-known celebrity is
counted on to portray a favourable brand image based on his or her real credits, character, or fame.
Usually, supply majesty is portrayed by the endorser's engaging disposition – as well as physical
appearance, commonality, and amiability to clients.

 Likeability
Clients' positive or negative feelings about a celebrity are referred to as big name agreeability. It can
also be described as the degree to which the source is perceived to be acting in a way that satisfies the
desires of those who study that individual. As a result, popular people are agreeable because they
behave or accept views that are similar to those of the target interest group. In settling on FMCG stock
like cleansers, beauty care products, delicate beverages, chocolates, etc, respondents concluded that
superstars need to propose that stock.

 Trustworthiness
Reliability refers to an endorser's honesty, honour, and willingness to cooperate. It is determined by the
heading justified business insights. Promoters profit from the cost of trustworthiness by choosing
endorsers who are commonly regarded as authentic, trustworthy, and strong. Customers, regardless of
their different merits, perceive unethical celebrity endorsers as troublesome message outlets, according
to the argument. Although research has shown that VIP consistency is anything but a driver for
improving shopper intentions and brand steadfastness, it is a component for dependability that has
hidden source validity. According to the results, shoppers expect a match between a big name
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endorser's image and the brand being embraced. However, it was discovered that a genius's
dependability was no longer directly linked to clients' hopes of finding an accepted logo considered
reliability to be the most important determinant of supply validity, and then tried to figure out which
source feature is associated with their discoveries. Having established that danger has become the most
fundamental standard for acceptance as a result of their findings, the creators asked promoters to
choose characters who are familiar when a fair VIP is liked to campaigner brands

 Expertise
Being legal, in a job, and verified is the definition of ability in writing. Scholars have long recognised
the tremendous influence of mastery on attitudinal shifts, but expertise isn't often a contributing factor
in persuading message recipients. In either case, a later investigation with the help of has discovered
that facts and dependability are more important than polish in determining an item's validity. Aside
from that, I've looked into the impact instrument in human minds and discovered that data is
unquestionably comprehensive when it comes to attitude. Furthermore, a study conducted by using
discovered that master superstars develop more noteworthy useful mentalities than non-specialists.
Furthermore, those who concentrated on the effect of source data on public transportation plugs
indicated that source data has a strong influence on viewpoints and points, as well as enhancing the
wellspring of validity.
 Credibility
The legitimacy of an endorser and their effect on open have been suggested as an exchanging model for
item support. It also takes into account VIP genuineness and a clean image in order to give shoppers
trust in the product's name. According to another study, superstars with relevant knowledge, skills, or
experience about the item are more likely to embrace the item and sell it to customers. In addition, they
called the ability synopsis data, i.e., "how much endorser is a self-evident hotspot for relevant cases."
Celebrity information or abilities refers to the volume of data that is claimed with respect to the subject
on which VIP is conveying data among different customers. In investigations performed and infer that a
stock exorbitant in ability when contrasted with the one low in data prompts extra mind boggling
mentalities nearer to the source. Decisions of various investigations support the view that reliability and
attractive quality measurements can make autonomous helps to source viability, consider that
dependability is maybe the chief measurement basic wellspring of validity.

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  Buying Intention
The message of the commercial is easily checked, and the acceptability of the promotion rises as a
result of the presence of a big name, which prompts Purchase anticipation, oblique association with the
goal to buy, and source endorser are also found positive toward the item through the use of promotion
as a medium. If the item credits aren't carefully considered by the customer, they will opt to purchase
with the help of a movie star. According to him, radiance has more inducing influence on buy target,
and review also brings up the negative impact of celebrity underwriting.
VIP adequacy decays by means of over underwriting and has terrible connection with purchase goal.

 Brand Loyalty
Brand reliability has been pronounced by a couple to be a specific Objective of publicizing. Brand
reliability obliges of a Customer's commitment to repurchase an item or assistance or by utilizing other
top notch conduct alongside expression of mouth. Brand steadfastness is a wonder that has been
explored various occasions; nonetheless, with no tidy markers to summarize the outcomes. It's
additionally discussed that brand dedication is presumably portrayed independently. A few
investigators diagram dependability as something welcomed on through behaviour. By way of brand
loyalty or behavioural consistency. Conduct loyalty proposes that a customer's looking for design (re
purchase) of a chosen article can lead toward the fortress of reliability.
At any rate, the differentiation among repurchasing and devotion is extreme to address. As indicated
by, a couple of scientists contend that during request to find brand reliability each direct and mentality
dependability should be available. Also, that the utilization of superstar endorsers can bring about better
perspectives closer to the brand than the use of regular residents' tributes.

1.2 Endorser and kinds of Endorsers

Meaning of Endorser: Consistent with Lawdictionary.com, “Person or firm WHO signs a legal
document to transfer possession of the instrument or the property concerned to a named receiver
(endorsee)”. During a straightforward word outlined by Freedictionary.com, “Endorser is use to
specific approval of or provides support to, especially by public statement”.
Types of Endorser:

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Endorser is classified in following classes
(a) Celebrity- A celebrity is a well-known or well-known individual who is closely associated with a
type of entertainment or sport. The majority of celebrities return for endorsement.
(b) Expert- A person who is skilled in a specific area, as well as the target population, is considered to
have sufficient information.
(c) Unknown person – Unknown person could also be fictitious or actual. They are unknown people or
persons, which are chosen to closely sanctioning the target phase to spot with the message and also the
endorser.
(d) Animate – Animation may be a use of latest technology and graphics for endorsement. During this
variety of endorser, marketers will use tricks,cartoon characters and the other styles.
According to Miciak and Shanklin (1994), associate endorser, one has got to fulfill all the FREDD
principle, that are- Familiarity, Relevance, Esteem, Differentiation and Deportment. FREDD is that the
results of a study interviewing many of us round the world to seek out out why brands and their
advertising efforts succeed and fail.
(a) Familiarity- the primary essential part of a good endorser is familiarity. The target market should
understand them as friendly, likeable and trustworthy.
(b) Relevance- There ought to be some association between the promoter and the product, yet as
between the promoter and also the audience.
(c) Esteem- customers should have the utmost respect for the celebrity in order for the industrial or
promotion to be credible. It suggests that believability to mass.
(d) Differentiations- the general public should see the endorser as totally different from all the rest. All
told his projections, he's seen to be one in every of the lots.
Overall idea relies on “He is different”.
(e) Deportment- The behavior principle explains concerning behavior of the celebrity.

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1.3 Celebrity Endorsement for Promotional opportunities
Using celebrities as part of a selling communication strategy is now a fairly popular practise for major
corporations in promoting their business or the entire representational process. Celebrity endorsement
has become a popular tool in advertisement and public relations these days.
Endorsement is a means of communicating a brand name. In endorsement, the celebrity serves as the
brand's interpreter, endorsing the brand's argument and status by extending his or her quality,
disposition, social standing, or field specialisation to the fullest extent possible. In addition, celebrity
endorsement could be used in the marketplace to differentiate national and foreign brands. Several
marketers have been abusing the celebrity endorsement model for a long time.
People nowadays prefer to disregard all reasonable ads in magazines and newspapers, as well as when
watching television. The glitz and glitter of a celebrity, on the other hand, is rarely overlooked. As a
result, celebrity endorsement in packaging and its effect on the overall package are very important.
Each product has its own logo, and the shopper tries to consume a package that is closely related to his
or her own personality/image. As a result, celebrities are the most prestigious symbols that draw people
in. Many businesses spend a lot of money to match their brands and themselves with endorsers. These
endorsers are trying as proactive with each engaging and likeable Ideal qualities and corporations set up
that these qualities are transferred to the merchandise by celebrity endorsement.

1.4 Celebrity Values

Celebrity disapproval is completely regarding the transfer of the worth from the person to the product.
There are two sides of celebrities. First, he must preserve his popularity, and second, he must depend
on his modus operandi. If a celebrity is involved in a scandal, the whole situation will change. The
‘Pulse Polio' initiative, which stars Amitabh Bachchan and Shahrukh Khan, represents the transition of
celebrity ideals to the general public, creating a sway that generates recall.

1.5 Celebrity Endorsement as methods

The process of selecting a suitable celebrity is highly complex. The celebrity should be well-known and
have a strong positive impact. Sunny Sierra Leone's monetary unit is well-known, but she may have a
negative effect on a number of teams. Amitabh Bachchan, Sachin Tendulkar, and Shahrukh Khan may
be able to successfully market a large number of items. As a consequence, they must have a high level
of trustworthiness, familiarity, and dependability.
Celebrities are often used by brands to create effects. as a consequence of their public perception as a

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reliable source of information about a product or business, and other people are drawn to celebrity
ideals and lifestyles. A celebrity endorser is someone who has a high profile and is well-known among
the general public consistent with Raluca (2012), “Celebrity endorsement may be a relevant strategy
for the merchandise classes which improve the image like fashion, perfumes or cosmetics”. consistent
with Ericsson and Hakansson (2005), “Advertisers usually use celebrities in advertising
Due to their famed attributes (beauty, talent, energy, power, etc.) that usually represents the attractions
desired for the brands they endorse” consistent with McCracken (1989), “Celebrity endorsement is a
simple thanks to connect with”. As per Muruganantham and Kaliyamoorthy (2005), potentials of
celebrities might facilitate the shoppers to attach with the complete to get the products at retailers and
celebrities will scale back the time for shopper to maneuver from awareness to action.
Marketers want to use celebrities as role models in their industry. The majority of actors and actresses
are involved in trendy and wonder-related merchandise, while the majority of athletes are involved in
health-related merchandise. Aside from endorsement, celebrities will play a significant role in product
development and positioning. Mistreatment of celebrity endorsement may also be a source of
frustration for advertisers.
Celebrities' quality can deteriorate if they are involved in a scandal or an unfavourable circumstance.
For example, after Aamir Khan made an anti-national statement (intolerance), several online campaigns
began removing the Snapdeal application from their phones, forcing Snapdeal to break its contract with
Aamir Khan, and the unthinkable Republic of India (Tourism Campaign), Amitabh Bachachan and
Priyanka Chopra to take his place.
Varieties of Strategies-
(a) Endorse with celebrity
(b) Non- celebrity endorsement
Relationships between celebrities and full celebrity endorsement are two of the most common
advertising techniques in the present time. Celebrity endorsement has become fashionable, and it seems
to be a winning recipe for product sales and brand building. Celebrities aid in the recognition of brand
names, the production of positive attitudes toward the complete, and the development of a personality
for the endorsed complete. There are a variety of benefits and drawbacks to celebrity endorsement.

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1.6 Choice of Celebrity
For any marketer, choosing the right celebrity for a particular product is incredibly difficult. A single
bad decision can reduce the value of any product. Choosing an appropriate celebrity for packaging can
be a challenging task. Bollywood actors and cricketers are idolised in India. Advertisers see this as an
opportunity to seize and extend their activities while still promoting their product. Shimp (2000), argue
5 factors so as of decreasing importance specifically, 1st celebrity credibleness, Second celebrity and
audience match-up, third celebrity and complete match up, Fourth celebrity attractiveness, and Fifth
miscellaneous concerns.
Selection Criteria
(a) Celebrity Product Match – Celebrity ought to match with supported product. Celebrity may be a
mirror of supported product. Thus, celebrities perpetually match with product options as an example
John Abraham image is perceived sort of a butch man thus he's a lot of eligible for motor bike
advertisement.
(b) Celebrity audience Match- choice of Celebrity perpetually according to targeted audience.
(c) Celebrity Popularity- Celebrity quality is usually probability to encash people’s attraction for
advertisers or product manufacturer.
(d) Celebrity Credibility- Celebrity ought to be credible.
(e) Celebrity Values –Value of celebrity is usually a crucial issue for selection of celebrity.
(f) Celebrity Physical Attractiveness- concupiscence of celebrity may be a primary criterion for choice.
a decent trying and good condition is 1 st impression of celebrity. It provides a picture of product.
(g) Celebrity Regional and international attractiveness Factors
(h) Others – several different criteria ought to be match like-
Prices of deed the Celebrity
Work with the Advertising plan
Celebrity availableness
Celebrity ought to be complete User
Previous Endorsements
Interest of endorser
Distinctive plan of promotion

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1.7 The Benefits of Celebrity Endorsements
 Prior to Archangel Jordan, Nike mainly funded athletes who competed in court games and on
the field. Nike needed to diversify its revenue streams by entering new markets. Who better to
sign than one of the most exciting young athletes in sports? The Nike-Jordan relationship has
developed into Air Jordan, a multibillion-dollar subsidiary.
 Assist people in remembering advertisements. According to researchers Jagdish Aggarwal and
Wagner Kamakura, celebrity endorsements would increase ad recall. People associate Dennis
Haysbert's voice with Allstate after seeing or seeing him on the show "24."
 Make a statement. According to Charles Atkin and Martin Block's research, "celebrities could
help ads stand out from the muddle around it." People enjoy looking at native dentists and
lawyers like George Clooney and Natalie Portman.
 Persuade people that the product adds to their sense of well-being. Customers claim that Motor
One oil contributes significantly to the efficiency of his car—and his success—because it is
endorsed by NASCAR sensation Tony Stewart.

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 CHAPTER - 2
REVIEW OF LITERATURE
Celebrity endorsement or celebrity branding is a form of advertisement strategy/ marketing tool used by
companies/Non-profit organizations. Most academic investigations of celebrity endorsement have been
contextualized in the realm of source credibility and attractiveness models, and suggest that celebrities
exert their influence on consumers through perceived attributes such as expertise, trustworthiness,
attractiveness, familiarity and likeability (Ohanian, 1991). In order to find out the impact of celebrity
endorsements on consumers’ and perception Gupta, Kishore and Verma (2015) have made similar
research that used Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis and Structural
Equation Modeling (SEM) to retest the previously validated scale and to assess reliability and validity.
The results of the study have revealed that celebrity endorsements have a significant impact on
consumers’ and perception. Ranjbarian, Shekarchizad & Momeni (2010) have conducted research
with an objective to analyze the celebrity endorser influence on attitude toward advertisements and
brands. Biswas et al. (2006) have conducted research to examine the differential effects of celebrity
and expert endorsements on consumer risk perception via three studies lying within the context of the
product’s technology orientation, consumer knowledge and congruence between the endorser and the
product. To observe the change in attitude and purchase intention of customers influenced by the
celebrity source endorser Kahle and Homer (1985) have conducted a research on physical
attractiveness of celebrity endorsers. Supporting social adaptation theory is used to interpret the result
of the research. This study draws a conclusion that participants who see an attractive endorser like the
product more than participants who see an unattractive source. Maddux and Rogers (1980) have done
similar research on the effect of source expertness, physical attractiveness and supporting arguments on
persuasion. Findings show that the physically attractive source is rated more effective than the
unattractive source and demonstrated a positive relationship between expertise and persuasion when
expertise is measured in relation to the topic of the communication. Kamins (1990) have made study
with the major objective to test the attractiveness aspect of the “match-up’’ hypothesis of celebrity
selection. The findings of this research suggest that characteristics of a spokesperson interact with the
nature of products advertised. To investigate the effect of celebrity’s attractiveness, trustworthiness and
expertise on purchase intention with reference to the respondents living in Singapore, Pornpitakpan
(2004) has conducted similar research and found that the more consumers are familiar with the athlete
the more likely they will believe the athlete is a credible source. To the best of researcher’s knowledge,
24
very limited study has been conducted to measure the impact of celebrity endorsements on purchase
intention and brand loyalty in the context of Chandigarh. Chandigarh is a city with high level of
consumption of consumer goods and is a tier two city with a lot of scope of growth and development in
the future it can be good to research on the people of a city. I believe that the outcome of the research
helps to minimize the existing gap of the literature. It covers with the help of using their identity as
well as their status/fame for promoting the products or services. Furthermore it will help research to
explain how advertising works with engrossment of celebrities and how it impacts the various age
groups.
Celebrity endorsement is a proficient strategy used by marketers. It addresses the consumer need from a
psychological angle. Therefore, it influences his conduct and decision-making toward the promoted
product or brand (Khatri, 2006). Marketers consider the featuring of celebrities in ads a crowd-puller
that attracts consumers to the brand through glamour and charm. It holds a considerable share of the
marketing budget. Celebrities are famous people, distinguished from others by unique qualities, namely
attractiveness and credibility (Erdogan, 1999). Celebrities are people who achieved their fame is
different fields, e.g. sports, acting, singing, politics, etc. (Friedman & Friedman, 1979). Celebrities
can also be characters from animated series (McCracken, 1989). Marketers use the recognition of
celebrities to promote goods in advertisements. The appearance of a celebrity in an ad is sought to
entrust brands to the consumer. Hereafter, the interplay between attractiveness and credibility of
celebrity endorser on one hand and consumer's ad recall and purchase intention on the other hand will
be introduced with underlying theories. Celebrity endorsement and marketing makes a priority out of
the consumer (Reynolds & Lancaster, 2001). It focuses on its needs. It uses persuasion as a tool to
compel consumer to a promoted brand or product. It thrives to insert the ad in consumer's mind in a
creative and recurring manner. Celebrity based ads communicate their contents and aim for ad recall
and brand appeal. Endorser holds an essential role in the latter scheme by capturing the consumer's
attention toward himself and the advertisement. Then, advertisement becomes for both endorser's image
and brand. Soliciting celebrities for commercials became a known practice for leading companies and
luxury brands (Rai & Sharma, 2013). The presence of celebrities might incur consequences on
consumers relevant to their perception to the brand, their brand preferences, and their willingness to
buy (Kumar, 2010). Marketers refer to analytical studies prior to the selection of the celebrity
endorser. An inappropriate choice of celebrity will cause the failure of communicating the intended
message from the ad, hence the consumer's passive purchase intention (Farrell, Karels, Montfort, &

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McClatchey, 2000). Area of recognition, level of fame, promoted brand, and targeted consumers are all
weighed while choosing the celebrity. Theories were presented to help marketers choose celebrities for
their ads. Those are reported hereafter. Celebrity endorsement theories are constructed about the
effectiveness of a celebrity in promoting a product. Source based theories such as source credibility
theory and source attractiveness theory can be considered. Those stipulate that celebrity controls his
characteristics while advertising agency and brand manager have no significant control. There are also
management based theory such as the match-up theory and the meaning transfer theory. Those tackle
celebrity-product congruency and celebrity activation while discarding his qualities and given managers
control over decisions (Seno & Lukas, 2007).

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MODEL OF STUDY:

Figure 1

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 CHAPTER – 3
RESEARCH MEHODOLOGY

OBJECTIVES

The objectives of this research are:

 The impact celebrities have on the consumers buying intention in regards of credibility

 The impact that celebrity endorsement creates on its consumers in terms of product fit match
between the product/brand and the celebrity.

 In regards of the attractiveness of celebrities, how much are consumers convinced.

 To see how celebrities transfer meaning to the products endorsed by them and to what extent
does it shape their buying intention.

 To judge the effectiveness of celebrity endorsement in different age groups and genders.

 Impact of association of celebrity likeability on brand/product.

 Brand trustworthiness and expertise and dependence on Celebrity endorsement.

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HYPOTHESES
The following hypotheses have been formulated:

H0: The celebrity endorsement attributes do not affect the purchase intention to buy a product.

H1: The celebrity endorsement attributes positively affect the purchase intention to buy a product.

H0: Celebrity endorsement purchase intention is not affecting on the brand loyalty of the consumer.

H1: Celebrity endorsement purchase intention is positively affecting on the brand loyalty of the consumer

.
H0: Expertise of the Celebrity is not important to the purchase decision
H1: Expertise of the Celebrity is important to the purchase decision

H0: There is no relationship among the celebrity attributes and Purchase Intention and Brand loyalty.

H1: There is relationship among the celebrity attributes and Purchase Intention and Brand loyalty.

H0: Celebrity endorsements do not affect people of all ages and gender with respect to purchase intention.

H1: Celebrity endorsements positively affect people of all ages and gender with respect to purchase
intention.

H0: Credibility of the Celebrity is not important to the purchase decision

H1: Credibility of the Celebrity is important to the purchase decision

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PARTICIPANTS

For the present study, different members of the population of Chandigarh (Tricity) including both male
and female citizens from the age group of 18-60 will be invited to answer the questionnaire. Invitees will
include students studying, home makers, working professionals etc. The general public and professionals
will also be contacted through facebook and WhatsApp and will be asked to participate.

INSTRUMENT

The research technique applied in this study is a questionnaire using a 5-point Likert scale, from 1
(indicating strongly disagree) to 5 (indicating strongly agree). A total of 20 questions are contained in the
questionnaire.

PROCEDURE

When conducting the study, in the questionnaire people will be asked to provide their basic demographic
information first; then answer questions in each factor accordingly. Because the study is set up such that
all questions must be answered before being able to proceed to the following section and to make the final
submission at the end of the questionnaire, all the questionnaires collected by this research will be
complete.

For the analysis of the data, an excel sheet will be prepared on which various analytical tools will be
applied for desired results.

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 CHAPTER -4

DATA ANALYSIS

4.1 Gender of respondents

Analysis and Interpretation

It is observed that out of the sample of 150, 47.8% of the respondents are Male and 52.2% of the
respondents are Female.

Figure 2

31
4.2 Age of respondents

Analysis and Interpretation

It is observed that out of the sample of 160, 65.2% of the respondents belong to the age group of18-25
years, 26.1% of the respondents belong to age group of 25-35 years and only 8.7% of the respondents
belongs to the age group of above 35 years.

Figure 3

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4.3 Occupation
Analysis and Interpretation
There is a variety of people with various occupations that are part of the survey as can be seen in the
survey

Figure 4

33
4.4 Family Income

Analysis and Interpretation

It is observed that out of the sample of 160, 58.7% of the respondents belong to the income group of
more than 15 lacs, 22.8% of the respondents belong to the income group of 10-15 lacs, 14.1% of the
respondents belong to the income group of 5-10 lacs and only 4.4 % of the respondents belong to the
income group of less than 5 lacs.

Figure 5

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4.5 Correlation

H0: There is no relationship among the celebrity attributes and Purchase Intention and Brand loyalty.
H1: There is relationship among the celebrity attributes and Purchase Intention and Brand loyalty.

Figure 6

Analysis and Interpretation

- There is positive relation between Purchase intention and Brand Loyalty which is 0.67.
This concludes that there is strong relationship between purchase intention and brand
loyalty.
- There is positive relation with celebrity attribute (effectiveness) and brand loyalty and
purchase intention which is 0.53, 0.39 respectively which concludes that the celebrity
endorsements affect the purchase intention and brand loyalty highly.

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4.6 Regression

H0: Celebrity endorsements do not affect people of all ages and gender with respect to purchase intention.

H1: Celebrity endorsements positively affect people of all ages and gender with respect to purchase
intention.

Age

Figure 7

Figure 8

Figure 9
Table shows output of the Regression test. The respective” F” value of each statement is with
“Gender”. With F test value is 0.273.

The hypothesis is accepted for Celebrity endorsements positively affect people of all ages with respect
to purchase intention.

36
Gender

Figure 10

Figure 11

Figure 12

Table shows output of the Regression test. The respective” F” value of each statement is with
“Gender”. With F test value is 0.155.

The hypothesis is accepted for Celebrity endorsements positively affect people of all gender with
respect to purchase intention.

37
4.7 Regression

H0: Celebrity endorsement purchase intention is not affecting on the brand loyalty of the consumer.

H1: Celebrity endorsement purchase intention is positively affecting on the brand loyalty of the consumer

Figure 13

Figure 14

Figure 15

Table shows output of the Regression test. The respective” F” value of each statement is with
“Gender”. With F test value is 2.273.

The hypothesis is accepted for Celebrity endorsement purchase intention is positively affecting on the
brand loyalty of the consumer.
38
4.8 Correlation

H0: The celebrity endorsement attributes do not affect the purchase intention to buy a product.

H1: The celebrity endorsement attributes positively affect the purchase intention to buy a product.

Figure 16

Analysis and Interpretation

- There is positive relation between Purchase intention and all the attributes of celebrity
endorsements which involves Favorite celebrity, celebrity of opposite sex and negative
publicity as shown in the table above.
- This concludes that celebrity endorsement attributes positively affect the purchase
intention to buy a product; hence there is significant relationship on purchase intention by
all the celebrity attributes.

39
4.9 One Sample T-test

H0: Expertise of the Celebrity is not important to the purchase decision

H1: Expertise of the Celebrity is important to the purchase decision

Figure 17

Figure 18

Analysis and Interpretation

Table shows output of the- test. Moving from left-to-right, you are presented with the observed t- value,
the degrees of freedom and the statistical significance (p-value) (Sig. (2-tailed) of the one- sample t-
test. We can see p<.001. Therefore, it can be concluded that the population means are statistically
significantly different. The null hypothesis is rejected for ‘Expertise of the Celebrity is not important to
the purchase decision.
Therefore it is concluded that Expertise of the Celebrity is not important to the purchase decision.
40
4.10 One Sample t-test

H0: Credibility of the Celebrity is not important to the purchase decision

H1: Credibility of the Celebrity is important to the purchase decision

Figure 19

Figure 20

Analysis and Interpretation

Table shows output of the- test. Moving from left-to-right, you are presented with the observed t- value,
the degrees of freedom and the statistical significance (p-value) (Sig. (2-tailed) of the one- sample t-
test. We can see p<.001. Therefore, it can be concluded that the population means are statistically
significantly different. The null hypothesis is rejected for ‘Credibility of the Celebrity is not important
to the purchase decision.
Therefore it is concluded that Credibility of the Celebrity is not important to the purchase decision.

41
 CHAPTER – 5
FINDINGS AND CONCLUSION

5.1 CONCLUSION
The results from the data analysis are remarkable, and also having positively correlation with the
previous studies.
All of the correlation matrices provided in the study show that the dependent variables and consumers'
buying intentions have a positive relationship. This means that higher scores in certain dependent
variables correspond to higher purchase intentions.
The influence of celebrities on customers' purchasing intentions in terms of reputation has been seen.
The effect of celebrity endorsement on customers in terms of product fit between the celebrity and the
product/brand is also discovered. How sure buyers of celebrities’ attractiveness are has also been
observed. The study also shows how celebrities give value to the items they support and how this
influences their purchasing decisions. The study has determined the efficacy of celebrity endorsement
across various age groups and genders. The effect of celebrity likeability on a brand or product is also
observed. Brand reputation and experience, as well as reliance on celebrity endorsement are also
studied in this paper. The study sees that purchase intention/decision and brand loyalty are highly
dependent on each other and the attributes of celebrities contribute to that. The study shows that all
people from various genders and ages are positively affected by celebrity endorsements. The above two
hypotheses being positive shows that the celebrity impact have major impact on buying behavior
irrespective of age and gender. All attributes combined affect purchase decision and brand loyalty but
no particular attribute like credibility and expertise do not alone affect purchase decision. This shows
that people do not focus on how credible the celebrity is or if they use the product themselves or if they
believe in it. It does not matter to consumer what the expertise of celebrity is. It infers that celebrity
occupation does not affect the type of product being endorsed. For example it doesn’t matter to the
consumer whether the celebrity endorsing a product like Revital is an actor or sportsperson. Thus, the
finding of the data shows that all attributes combined affect purchase intention and loyalty but one
attribute alone does not.
The results of this study give marketing professionals strategic advice about how to choose a celebrity
endorser. Businesses are investing millions on celebrity endorsements because marketers believe they
can help brands, generate positive qualities, and add to brand name awareness. They can't, however,

42
optimise the impact of celebrity endorsement by focusing on only one or two factors. As a result, when
marketing managers use celebrity endorsement ads, they should think about how they can build a
solid, trustworthy reputation among consumers. According to the prior research (Erdogan et al.,
2001), The first and second most critical factors to consider in selecting a celebrity endorser were
celebrity-product congruence and celebrity-target customers. Thus, by evaluating core elements, the
current study's results assist brand managers in increasing the beneficial impact of celebrity
endorsement ads as well as the efficacy of their brand value. The celebrity's level of credibility or
popularity may not be the most important factor in optimising ad results. Consumers' reactions to
celebrity endorsers and their opinions are influenced by a variety of factors. When the celebrity's
image is well-matched with the product being endorsed, marketers may expect a favourable image to
be transferred. As a result of this research, marketing professionals will better understand how
consumers respond to celebrity endorsements and devise a strategy for selecting celebrity endorsers
that will have the greatest impact on ads.
Advertising is important for marketing and raising product awareness across a variety of target
audiences. This paper suggests that in order for companies and organisations to succeed in the market,
they must choose the appropriate marketing platforms, media, and celebrities to use in order to
effectively communicate. The paper also suggests that before selecting a celebrity to use, an overview
of the target audience they intend to reach, the product being sold, and the message being conveyed
should be conducted in order to make the best celebrity fit for the product.

43
5.2 FUTURE SCOPE
This study emphasizes the need that future researchers should pay more attention on this field. This is
an interesting field for researchers;
 Future studies might look at celebrity overshadowing, overexposure, overuse, and the extinction
of celebrity endorsers, among other things.
 Future studies can focus on Negative impact of celebrity endorsement.
 This study only looked at a few characteristics of celebrities, such as likability, reputation,
attitude, beauty, and expertise. Other characteristics such as success, talent, similarity,
familiarity, and match-up congruence require further research.
 This study did not examine influence of consumer buying intention according to the consumer’s
demographic factors. Further research must be needed to find out the relationship between the
influence of consumer buying intention and demographic factors in relation to celebrity
endorsement.
 Larger audience can be covered in future research.

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5.3 LIMITATIONS

Although each effort was created to conduct survey as strictly as attainable however certain limitations
area unit ineluctable and such limitations area unit as follows:
No honest research is complete without acknowledging the limitations that were encountered during the
analysis, as is the case with the majority of studies. There are some limitations to this study that should
be noted. The first drawback is related to the non-probabilistic sampling process, which fails to be
representative of the entire population, and therefore the results of statistical experiments are
considered valid within the sample but not extrapolated to the entire universe.
The bulk of the participants were students, which is the second constraint. The emphasis was mostly on
those between the ages of 18 and 25, with no other age group contributing, limiting the inflow of
different viewpoints on the topic at hand. Despite the fact that they constitute a significant portion of
the population, the findings cannot be applied to the entire population. If an older generation had been
considered, it is likely that a radically different viewpoint would have emerged. Finally, the degree of
interpretation of the problems in the questionnaire was uncontrollable, which was a major limitation.
There are occasions when respondents refer to the researchers' needs rather than taking the
questionnaire seriously. However, it was expected that all participants would answer the questionnaire
honestly, which hampered the research's ability to be performed in an entirely truthful manner. Despite
the previous limitations, the empirical research and its limitations serve as a foundation for future
recommendations in order to improve future investigations into the same subject.

45
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ANNEXURE
QUESSTIONNARE

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