Professional Documents
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DECLARATION
Chauhan Vishvajit_________________
ACKNOWLEDGMENT
There are times when words cannot express thankfulness. Though the gratitude to
the individuals without whom my learning would not have been possible, cannot
express in words. I have tried my best to thank all of them. I would like to thank
Faculty of Management Studies for incorporating this Project study in course and
giving me an opportunity to have experience of professional world through it. I take
this opportunity to thank each and every one, who laid their contribution in the
making of this work. It was an enriching experience from learning to conducting the
research and to compile the work. First and foremost, I express my sincere gratitude
to Ms Smita Trivedi, Assistant Professor, for her valuable guidance has been fulfilling
and enriching. Her constant motivation and faith in my work motivated me each day
to endeavour for better. I truly appreciate for showing her patience towards me. I
express my sincere gratitude to Prof M.N. Parmar, Dean, and former Dean Prof (Dr.)
Jayraj Sinh D. Jadeja Faculty of Management Studie for providing me an
opportunity. Special thanks to all the respondents for cooperating during the
collection of the data for this research
Executive Summary
India is a country where people love to live in dreams. They worship celebrities.
Celebrities may be Cricket stars like Sachin Tendulkar, Mahinder Singh Dhoni or Film Stars
like Salman Khan, John Ebrahim, Shahrukh khan. They treat them as God. Marketers use this
very preposition so as to influence their target customers may be existing or potential ones.
For this they rope in these celebrities and give them whopping amount of money.
They believe that by doing this they can associate their products with their target customers.
This is called celebrity endorsement.
For example, Cadbury used Amitabh Bachchan to promote the brand when it went
through a bad phase in India. Soon the ad recreated people's love for the brand and increased
Cadbury's sale. Aamir Khan is used by Titan to communicate the message that Titan watches
are as trustworthy as the actor is for his films. This celebrity endorsement has also been quite
effective in influencing consumers buying decision. Similarly, various endorsements by
Sharukh Khan, Sachin Tendulkar and others have been found to be successful in affecting
consumers‟ buying decision.
'Celebrity Endorsement'
McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys
public recognition and who uses this recognition on behalf of a consumer good by appearing
with it in an advertisement (marcoms), is useful, because when celebrities are depicted in
marcoms, they bring their own culturally related meanings, thereto, irrespective of the
required promotional role."
Friedman and Friedman (1979) found empirical evidence that, in the promotion of
products high in psychological and/or social risk, use of celebrity endorser would lead to
greater believability, a more favourable evaluation of the product and advertisement, and a
significantly more positive purchase intention.
The use of testimonials by advertisers dates back to the 19th century when medicines
were patented. Firms have been juxtaposing their brands and themselves with celebrity
endorsers (e.g., athletes, actors) in the hope that celebrities may boost effectiveness of their
marketing. The increasing number of endorsements throws a valid question to the consumers.
Is there a science behind the choice of these endorsers or is it just by the popularity
measurement? What are the reasons which lead to impact of celebrity endorsement on
brands? Greater the score of the below parameters, greater are the chances of getting close to
the desired impact.
LITERATURE REVIEW
Friedman & Friedman (1979) explains the term “celebrity” refers to an „individual
who is known to the public, such as actors, sport figures, entertainers‟ and others of the like
for his or her achievement in areas other than that of the product class endorsed. Copper
(1984) explained that the general belief among advertisers is that advertising messages
delivered by celebrities provide a higher degree of appeal, attention and possibly message
recall than those delivered by noncelebrities. Marketers also claim that celebrities affect the
credibility of the claims made, increase the memorability of the message, and may provide a
positive effect that could be generalized to the brand. (Ohanian 1991) The use of (by
corresponding standards) attractive people is common practice in television and print
advertising, with physically attractive communicators having proved to be more successful in
influencing customers‟ attitudes and beliefs than unattractive spokespersons. Menon (1998)
examined the effectiveness of advertisement endorsed by celebrities and normal person. In
this paper he examined the effectiveness by using the multivariate analysis. In the
advertisements for Milk, believability, knowledge, appearance and liking for the celebrity
were highly correlated to each other and also with purchase intentions. For advertising with
non-celebrity spokesperson, credibility was highly correlated to advertising believability,
which was in turn correlated to purchase intentions. For advertisements about Pepsi-Cola
significant correlations were identified between credibility and knowledge and between
advertising believability and purchase intentions. Celebrity appearance, knowledge, liking,
and credibility of the celebrity were also highly correlated with advertising believability. At
the same time, liking for the celebrity and advertising believability were both correlated with
purchase intentions. For advertising execution that involves non-celebrities, the analysis
indicates that appearance, credibility and knowledge were highly correlated with advertising
believability. At the end he concluded that advertisers need to be cautious when using
celebrity advertising as they are not believable in certain instances and hence may not deliver
the intended effect. This is certainly true of those celebrities who are seen as endorsing many
types of products across a wide spectrum. It would seem that for some classes of products,
person-on-the-street type of advertising might be just as effective if not more so than those
that use celebrities. Laferty and Goldsmith (1999) finds that Endorser credibility is one of the
most frequently used methods in advertising to influence consumers‟ attitudes and purchase
intentions. Corporate credibility, or the reputation of the firm, is another source of credibility
identified in marketing that can influence these cognitions. They examined these two sources
of credibility to assess their impact on attitude-toward-the-ad, attitude-toward-the-brand, and
purchase intentions. between-subjects factorial design was used. One hundred women
students were shown one of our mock magazine ads. The results indicated that both
credibility types influence attitude toward- the-ad and attitude-toward-the-brand, but
corporate credibility alone appears to have a significant influence on purchase intentions.
REASONS OF ADOPTING THE CELEBRITIES IN ENDORSING THE PRODUCT
Nowadays marketers do not only want to maximize the sales of the product but also to
create the brand equity. For creating the brand equity, they are using the celebrities in
advertisements.
II. Meaning Transfer: This stage transfers those meanings to the product. When skilfully
portrayed, celebrities can communicate this image more powerfully than lay endorsers.
III. Meaning Capture: This assumes that consumers purchase products not merely for their
functional value but also for their cultural and symbolic value. The theory says that
consumers buy the endorsed product with the intention of capturing some of the desirable
meanings with which celebrities have passed on to the product. This is more eminent in
lifestyle products like clothes, perfumes, cell phones etc.
There's no denying the fact that marketing chiropractic can be challenging. The public
has long been exposed to negative reports about it from the medical and drug industries, as
well as from well-meaning but uninformed consumer advocates. They've heard chiropractic
jokes on sit-coms and warnings on the nightly news. To market chiropractic in general — and
your practice in particular — you must first overcome lingering fears, ignorance and
scepticism that keep people from coming to your office. One of the most powerful ways to
surmount these obstacles is to use a celebrity endorsement. When you tell people that
chiropractic can help them, they may or may not believe you. After all, you have a vested
interest in selling your services. But when celebrities say that chiropractic has helped them,
and it could help others, people tend to listen — and believe. After all, most people assume
"he wouldn't say it if it weren't true." As Marketing expert Patrick Bishop — co-author of
"Money Tree Marketing: Innovative Secrets That Will Double Your Small-Business Profits
in 90 Days or Less" — noted:
"When you get a celebrity to endorse your company or sign a licensing
agreement, you benefit from customers' awareness of the property, [which] could
include the perception of quality, educational value or a certain image."
"Studies show that using celebrities can increase consumers' awareness of the
ad, capture [their] attention and make ads more memorable"
If you're not convinced yet of the effectiveness of celebrity endorsements, here's what
Jonathan Gaines, president and CEO of top marketing firm DMS Strategies has to say:
"High-profile endorsements from athletes and celebrities will set you apart from
your competitors, and you can become a contender in the playing field a celebrity
spokesperson can work for companies of all sizes."
Marketers now seek to adopt 360-degree brand stewardship in which the brand sees
no limits on the number of contact points possible with a target consumer. Advertising ideas,
thus, revolve around this approach, and the celebrity endorsement decisions are made through
these strategic motives. One of the most successful celebrity endorsement campaigns which
reflect the fit between the brand and the 360-degree advertising fit is Fardeen Khan and
Prologue. Prologue's positioning in the apparel market is of a young, active, partygoing,
attention-grabbing brand and so is Fardeen Khan. The conjunction between the two has been
immensely impact and brand managers have utilized this endorsement through 360-degree
reinforcement. Prologue Lounge and extensive phased insertions in print in selective
publications reaching out to their target audience has made it as one of the highest recalled
celebrity endorsements. Similarly, Richard Gere's recent endorsement for VISA in India has
gained acclaim due to its innovativeness and consumer connects. Brand marketers say that
research reveals that Richard Gere was the most popular face across the Asia Pacific region,
and would also fit into the persona of the brand meeting their communication objective to
enhance VISA's brand leadership and consumer preference, and the motive to continue the
"All it Takes" empowerment platform featuring international celebrities.
Smriti Irani endorsing the WHO recommended ORS Campaign in India. Indian
mothers can associate with Smriti Irani through the facets she projects on screen or in regular
life which helps develop a connect with the target audience since mothers medicate their
children with ORS. The in serial placement of the campaign in "Kyunki Saas Bhi Kabhi Bahu
Thi" has won it an award from PR Week. Similarly, Irfan Pathan endorsing Hero Cycles has
gained the brand immense recall and embarked through the positive association between the
consumer and the brand.
Celebrity Values
Celebrity branding is all about the transfer of the value from the person to the product
he endorses or stands for. There are two concerns here. The first is how long this could last.
Can the person maintain his popularity (i.e., his performance or status ranking)? The lifecycle
of celebrity popularity varies a lot. The second concern is his private life - personal integrity.
If he is implicated in any kind of scandal, that would ruin the brand. "Who would want to use
Michael Jackson to brand their product?"
Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness,
Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Rai
appearing in the Donate Eyes campaign are few examples, which reflect the transfer of
celebrity values to the brand, creating an impact that generates recall.
Celebrity-Product Match
Cyrus Bracha is the brand ambassador for MTV since both the celebrity and the brand
are considered as friendly, young, mood-boosting, humorous and outspoken. MTV's brand
personality overlaps Cyrus Brocha's image as a brand. Some more examples of compatible
celebrity product match in which celebrity brand attributes get transferred to the brand and
increases the brand equity is of Malakia Arora & Fresh Izza from Pizza Hut, Govinda &
Navratan Tel, Sanjay Dutt & Elf Oil, Sunny Deol & Lux Undergarments, Aishwarya Rai &
Nakshatra, etc.
The perfect example here is of Salman Khan and the controversy in which he crushed
a man to death with his Pajero when he was driving under the influence of alcohol. Also, any
act on the part of the endorser that gives him a negative image among the audience and goes
on to affect the brands endorsed. The brand, in most instances, takes a bashing.
Celebrity Regional Appeal Factors
Bipasha Baasu' physical attractiveness and her connect with the brand makes Levis
Strauss's campaign through celebrity in India, John Abraham endorsing Wrangler and Timex
Sunglasses are some examples which portray the celebrities' physical attractiveness that helps
create an impact.
Celebrity Credibility
The most important aspect and reason for celebrity endorsement is credibility. Most
experts believed that the most important dimensions of credibility are trustworthiness and
prowess or expertise with regard to the recommended product or service. One of the most
obvious reasons of Amitabh Bachchan endorsing plethora of brands is the credibility of the
celebrity and his recognition across consumers.
To site one of the most successful campaigns in which the celebrity's credibility has
had an indelible impact on the brand and has saved the brand is of Cadbury's. After the worm
controversy, Amitabh Bachchan's credibility infused into the brand through the campaign,
helping it to get back on track. The campaign has won an award for the same.
Multiple Endorsements
The case of multiple endorsements, both in terms of a single brand hiring multiple
celebrities and that of a single celebrity endorsing multiple brands, is often debated. At times,
consumers do get confused about the brand endorsed when a single celebrity endorses
numerous brands. The recall then gets reduced and reduces the popularity of the brand. Not
many people can remember all the brands that a celebrity endorses and the chances of losing
brand recall increases if the celebrity endorses multiple brands. For example, in case of
Sachin Tendulkar people recall Pepsi, TVS Victor and MRF, but might not remember brands
like Britannia and Fiat. Similarly, for Amitabh Bachchan, consumers remember ICICI, Pepsi,
Parker Pens, Pulse Polio and BPL.
Whether Celebrity is a Brand User
One of the strongest platforms to discuss this is through NGOs. Various celebrities
endorse NGOs and social causes since they believe in the social message that they need to
convey to the audience. One of the most successful campaigns has been executed by PETA in
which celebrities like Shilpa Shetty, Amisha Patel, Yana Gupta, Sheetal Malhar, and Mahima
Choudhary Claimed to believe in PETA's philosophy, and thereby endorse the brand. On the
other hand, while some would understand that Amitabh Bachchan would have never used
Navratan Tel, the target audience that the brands want to reach out to will be ready to believe
that he used the oil and his endorsement thereby creates an impact
Identification applies to the situation wherein the individuals emulate the attitudes or
behaviour of another person or group, simply because they aspire to be like that person or
group. This process is the basis for referent power. It was found that celebrities are more
commonly liked than a typical consumer spokesperson.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
NEED OF THE STUDY
Now a day's lots of advertisements are endorsed by the celebrities. Even celebrities
are endorsing multibrands. It has created a great confusion in the mind of the customers
regarding the purchase of the product. So, there is a need to study the impact of celebrities‟
endorsers and non-celebrity endorsers on the purchasing behaviour of customers. This study
will also help to know whether celebrities‟ endorsers are able to influence the buying
behaviour of the customers or not.
The study is based on primary data and secondary data. Five-point Likert scale has
been used to know the customer's perception towards celebrity endorsed advertisements.
Sample size has taken 80 consumers. Secondary data has been collected from the website.
1. Objectives
This study was conducted on "Effectiveness of Celebrity Endorsement on
Consumer Behaviour"
RESEARCH DESIGN
Data Sources:
In dealing with any real-life problem, it is often found that data at hand are
inadequate,
and hence, it becomes necessary to collect data that are appropriate. The researcher can
collect data either through primary source or secondary source.
Sampling Size:
It is the total number of respondents targeted for collecting the data for the research.
Sample size of 80 persons will be taken for this research.
Sampling Technique:
Interpretation:
The above pier chart tells that there are 73.8% male and 26.2 % female. Out of 80
Respondent, 59 are Male and 21 are women.
Age
Interpretation:
The above pier chart tells that age of 66.25% people is between 20–25-year ,28.75% people
fall in 25-30 year, and remaining 5 % people are in 30-35 year. Out of 80 respondent 53
respondent comes in 20–25-year, 23 respondents are in 25-30 year and 4 respondents come in
30-35 year ...
Education
Interpretation:
The above pier chart tells that 56.25 % people has post-Graduation. 33.75% people has done
their Graduation. 5% and 5% have done their education in Higher secondary and Pre-
University Respectively.
Occupation
Interpretation
In the Above Pie Chart. 61.3% Respondent are Student, 20% people are Working
professional and remaining 18.8% are working as a Business Person.
What means of advertising persuades you the most to purchase product??
65% and 62.5% people responded that they will be persuaded to make purchases
by internet and tv means of advertising respectively. 30% people responded that
they will be persuaded by newspaper-based advertising.26.3% and 62.5% people
responded that they will be persuaded to make purchases by internet and tv
means of advertising respectively
What do you value the most when purchasing product??
51% of people responded that they value “value of money” most when
purchasing a product. 28.7of people responded that they value “quality of
product” most when purchasing a product. 12.5% of people responded that they
value “ price of product” most when purchasing product
Q-1 Celebrity in an advertisement encourages to buy the product.
Interpretation
Above pie Chart tells that 41.3% people are strongly believes that celebrity encourage them to buy
product, 25% people strongly agree with that they are influence by Celebrity endorsement, 10%
believe that they will purchase product or not, 7.5 % people disagree with this, 16.3 % are Strongly
Disagree with this Statement.
Q-2 Celebrities make difference to the image of the brand.
Interpretation
Above pie Chart tells that 40% people are strongly believes that celebrity makes different image to
the brand, 32.5% people strongly agree with this statement, 15% people disagree with this
statement, 3.8 % are Strongly Disagree with this.
Q-3 Celebrities use the product they endorse
Interpretation
Above pie Chart tells that 28.7% people are strongly disagree in believe that celebrity use the
product which they endorse, 30% people disagree. 13.8 % says that they may use or not. 21.3% and
6.3% are agree and strongly agree respectively believe that they are using product which they
endorse.
Q-4 People purchase celebrity endorsed brands to improve social status
Interpretation
In the above chart, 43.8 % people agree with the statement that people are buying product to
improve social status, 26.2 % are strongly agree with this and 5 % are strongly disagree in
believe that people are not buy product to improve social status, and 11.3 % are disagree with
same.
Q-5 Celebrity has the power to change my perceptions
Interpretation
In the above chart, 25 % are disagree with the statement that celebrity has the power to
change my perception, 33.8% (agree) believe that they have power to change my perception.
20 % is neutral and remaining 8.8 % are strongly agree with statement and 19% respondent
are strongly disagree.
Q-6 Celebrity conveys all the true features of a product
Interpretation: -
In the above chart, 43.8% people are agreed with the statement Celebrity convey all the true
feature of a product, 15% respondent (disagree) believe that celebrity does not convey all the
true feature of the product.
Q-7 Celebrity holds the viewer’s attention
Interpretation
Above pie chart tells that 42.5% people are agree with this. And 27.5% are Strongly agree
with the statement, 11.3% respondent (Str.disagree) believe that celebrity does not holds
viewers' attention.
Q-8 Purchase product because it is endorsed by my favourite celebrity.
Interpretation
In the above chart, 13.8 % respondent (disagree) believe that they are not purchasing product
by inspiring their favourite celebrity. 8.8% respondent are strongly disagreeing. 36.3% people
(agree) are buying product when their favourite celebrity comes in the advertisement. 12.5%
respondent are strongly agreeing to buy the product.
Q-9 Scandals attached with celebrities destroy the brand’s image
Interpretation
In the Above chart, 36.3% respondent (Strongly Agree) believe that celebrity destroy the
brand image if he comes into any scandals, 38.7% (Agree) with the same. 13.7% (disagree)
believe that there is no any effect if celebrity goes into any scandals. 6.3% (strongly disagree)
for the same.
Q-10 Celebrities help me more to remember a brand/Product
Interpretation
In the above Pie chart, 50 % respondent (Agree) in remember a brand or product. 26.2%
respondent (Strongly Agree) for the same. 12.5% people don’t know about the product
remember. 11.3% people are (disagree) to remember the brand or product.
Q-11 Does your Favourite celebrity give a positive image to the endorsed
brand?
Interpretation
In the above chart, 37.5% respondent (Agree) says that their favourite celebrity gives positive
image to the brand. 27.5 % respondent (Strongly Disagree) with the same statement. 22.5%
people don’t know that their celebrity gives positive image to the endorsed brand.7.5%
respondent (Disagree) believe that their favourite celebrity doesn’t gives positive image to the
brand. 5 % people are Strongly disagreed for the same statement.
Q-12 I believe celebrity endorsement can build trust in the brand
Interpretation
In the above chart 47.5% people (Agree) says that celebrity gives trust in the brand. And
23.8% (Strongly agree) with the same point. 13.7% people don’t know that celebrity puts
trust in the brand. 12.5% people (disagree) says that celebrity doesn’t built trust in the brand.
2.5% people (Strongly disagree) also says that celebrity doesn’t built trust in the brand.
What extent do the following variable influence your purchase intention
towards a celebrity endorsed brand?
Interpretation
In the above pie chart, 22 % respondent (High) is influence by attractiveness of the celebrity.
47.5 % respondent (Very High) influence by attractiveness of the celebrity. 16.2% believes
that they are Average influence by attractiveness. 11.2 % people says that there is no need of
attractiveness.
In the above pie chart, 38.7 % respondent (High) is influence by Trustworthiness of the
celebrity. 30 % respondent (Very High) influence by Trustworthiness of the celebrity. 18.75
% believes that they are Average influence by Trustworthiness. 6.25% people says that there
is no need of Trustworthiness of the celebrity.
In the above pie chart, 15% respondent (High) is influence by Expertise of the celebrity. 40%
respondent (Very High) influence by Expertise of the celebrity. 27.5% believes that they are
Average influence by Expertise of the Celebrity. 7.5% people says that there is no need of
Expertise of the celebrity.
• H1: there is Association between gender and value keep in mind when
product is being purchased
Hypothesis:
H0: Consumer from every profession think that celebrity in advertisement encourage
to buy the product
H1: Consumer from every profession think that celebrity in advertisement do not
encourage to buy the product
Chi-square value: - 22.133291......
Hypothesis:
H0: there is no difference in respondent thinking about celebrity has
power to change perception with respect to their age group
• Nearly 75% of respondent (Strongly Agree) believe that a celebrity destroys the brand image
if he comes into any scandals. 6.3% (disagree) believe that there is no effect if a celebrity
goes into any scandals. 3.8% (strongly disagree) for the same.
• 37.5% respondent (Agree) says that their favorite celebrity gives a positive image to
the brand. 5 % respondent (Strongly Disagree) with the same statement. 22.5%
people don’t know that their celebrity gives a positive image to the endorsed
brand.7.5% respondent (Disagree) believe that their favorite celebrity doesn’t give a
positive image to the brand.5% people are Strongly disagreed with the same
statement.
• 47% people (Agree) say that celebrities give trust in the brand. And 23.8% (Strongly
agree) with the same point. 13.7% of people don’t know that celebrities put trust in
the brand. 12.5% of people (disagree) say that celebrities don't build trust in the
brand. 2.5% of people (Strongly disagree) also say that celebrities don't build trust in
the brand.
In the research report, most respondent is Student, between 20-25 years, and male
It has been observed from the study that celebrity endorsement has some effect on buying
behavior of consumers. Overall, the findings from this study explores that there's impact of
celebrities in advertisements on consumers to spot a brand in Indian industries. Quality,
value of money and price of the merchandise are main factors behind any purchase. It is
clear from the research that the standard of consumer goods advertised by celebrities isn't of
fine quality. So, it's suggested to celebrities to endorse those products which are of excellent
quality. It is also evident that no products are getting used by celebrity which they endorsed.
The study further indicates that celebrity endorsed ads is that the effective means of
advertisement to influence customers to buy products. The study also depicted that film
stars are more successful to steer customers to buy products. The study reveals that majority
of the consumers purchase decisions are suffering from the worth and Quality of durable
products and not by the celebrity endorsement.