Professional Documents
Culture Documents
2021-22
1
CERTIFICATE
This is to certify that project report titled “Impact Of Celebrity Endorsement On Consumer
Buying Behaviour In The Soft Drink Industry” submitted to CHRIST (Deemed to be
University), Bangalore in partial fulfilment of the requirements for the award of the degree of
Bachelor of Business Administration (Honors) is a record of original work carried out by
Shashank Gangwar (1923311) during the academic year 2021-22 under the guidance of Dr.
Shrinivas Kulkarni, Assistant Professor, School of Business & Management, CHRIST
(Deemed to be University), Bangalore and it has not been previously formed the basis for the
award of any Degree, Diploma or any other similar title of recognition to any candidate of this
or any other University or Institution.
2
CERTIFICATE BY GUIDE
This is to certify that project report titled “Impact Of Celebrity Endorsement On Consumer
Buying Behaviour In The Soft Drink Industry” submitted to CHRIST (Deemed to be
University), Bangalore in partial fulfilment of the requirements for the award of the degree of
Bachelor of Business Administration (Honors) is a record of original work carried out by
Shashank Gangwar (1923311) during the academic year 2021-22 under my guidance and it has
not been previously formed the basis for the award of any Degree, Diploma or any other similar
title of recognition to any candidate of this or any other University or Institution.
3
DECLARATION
I, Shashank Gangwar, hereby declare that the project report, titled “Impact Of Celebrity
Endorsement On Consumer Buying Behaviour In The Soft Drink Industry” submitted to
CHRIST (Deemed to be University), Bangalore in partial fulfilment of the requirements for the
award of the degree of Bachelor of Business Administration (Honors) is a record of original
work carried out by me during the academic year 2020-21 under the guidance of Dr. Shrinivas
Kulkarni, Assistant Professor, School of Business and Management, Bannerghatta Road
Campus, CHRIST (Deemed to be University), Bangalore has not been previously formed the
basis for the award of any Degree, Diploma or any other similar title of recognition to any
candidate of this or any other University or Institution.
4
ACKNOWLEDGEMENT
I express my special thanks to Dr. Shrinivas Kulkarni, Assistant Professor, School of Business
and Management, Bannerghatta Road Campus, CHRIST (Deemed to be University),
Bangalore for taking time to guide and mentor me from the stage of selecting the topic till the
submission of the research. His expert advice and constant motivation helped me to conduct
the study in a systematic and orderly manner.
I would also like to thank Dr (Fr) Abraham Vettiyankal Mani, Vice Chancellor, for having
provided an opportunity to carry out a research as a part of my curriculum of Bachelor of
Business Administration (Honours). I would like to convey my gratitude to Dr (Fr) Biju K C,
Director, Dr. Jyothi Kumar, Dean, and Dr Rashmi Rai, Head of Department, School of
Business and Management, Bannerghatta Road Campus, CHRIST (Deemed to be University),
Bangalore for providing me the opportunity and the support to carry out such a research in the
area of marketing. Finally, I would like to thank my parents and friends for their constant help
and support. Their motivation and advice were very helpful in enabling me to conduct the
research and bring it to completion.
Shashank Gangwar
Reg. No. 1923311
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List of Tables
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vi
7
List of figures
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Table of Content
Certificate .................................................................................................................................. 2
Declaration .............................................................................................................................. 4
Acknowledgement .................................................................................................................. 5
Chapter 1 Introduction.......................................................................................................... 11
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Chapter 5 Findings, Suggestions & Conclusion ................................................................. 64
5.1 Findings..............................................................................................................................
5.2 Suggestions & Scope For Future Study .............................................................................
5.3 Conclusion .........................................................................................................................
References …………………………………………………………………………………...68
Annexure …………………………………………………………………………………….72
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Chapter - 1
Introduction
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This chapter gives a brief introduction to the topic of the research. It gives information about
different components of the research which include subjects like Celebrity Endorsements,
Consumer Behaviour and Soft Drinks Industry.
1.1 Background
Celebrities are those who are well-known by a substantial portion of a specific group of people.
Celebrities can belong to any filed or area like Actors ( Tom Cruise, Shah Rukh Kahn, Amitabh
Bachchan ), Sports Personalities ( Cristiano Ronaldo, Virat Kohli, M S Dhoni ), Models ( Sahil
Khan, John Abraham ), Singers ( Arjit Singh, Justin Bieber ), Businessman ( Mukesh Ambani,
Elon Musk ), etc.
There are various independent variables that affects the effectiveness of the endorsements.
These variables includes some important theoretical constructs.
The source attractiveness of an endorser is linked to the message's effectiveness through their
likeness, familiarity, and likeability. It is a method of promoting products based on a source
that the majority of customers find appealing. For example , Ranveer Singh has been roped
for Thumbs Up advertisement because people gets attracted to his energetic body language
which go well with the cold drink as it itself say ‘Taste the Thunder’.
2. Match up Theory
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This theory says that when an endorser and the promoted product "fit," the endorser is more
effective. For example , If Shashi Tharoor endorse for any English Speaking Course, then
people would definitely opt for that particular course because there would be a perfect fit
between the personality of endorser and the product.
According to this Model, a celebrity spokesperson is only useful if there is clarity in judging
the meanings people identify with the endorser and then transfer to the brand.
The soft drinks in are segmented into Cola-flavored beverages, lime-lemon flavored drinks,
orange-flavored drinks, and others. In India, carbonated or aerated beverages account for more
than 40% of the overall non-alcoholic beverage market. Thumbs Up, Coca-Cola, Pepsi, Sprite,
Fanta, Limca, Mirinda, and many other brands are available in India. In terms of end
consumers, the Indian carbonated non-alcoholic market is dominated by the urban segment,
which holds a considerable market share. In India, the carbonated beverage market is predicted
to rise by double digits over the next five years.
Coca-Cola and PepsiCo have long dominated the global and Indian beverage industries. The
Coca-Cola Company topped the international carbonated beverage market in 2015, with a
market share of over 48%. PepsiCo Inc. manages the rest of the duopoly in the worldwide
carbonated beverage sector. PepsiCo's main rival in the soda market has traditionally been the
Coca-Cola Company.
The aim of this study is to find out whether the celebrity endorsements have any influence
on the buying behaviour of consumers in the soft drinks industry. The research focusses on the
celebrity endorsements, consumer buying behaviour and soft drinks industry. Consumer’s
psychology is very sensitive and they get highly influenced by the fact that their favourite
celebrities are drinking a particular brand of soft drink. To imitate that and to relate with their
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favourite celebrity, they use the product endorsed by them. There are many reasons for this.
Some consumers gets attracted to the celebrities personality/traits, some feel that a particular
public figure brings meaning to the particular product that he/she endorses, some see the
credibility of the celebrity, etc. This study is conducted to find out more on this subjects and
different factors mentioned.
Impact of Celebrity Endorsements on Consumer Buying Behaviour in the Soft Drinks Industry.
Celebrity endorsement is one of the most expensive marketing tactics. Companies spent a lot
of money to hire celebrities to promote their products and expand their market share. However,
not everyone is affected in the same manner. As a result, firms should choose celebrities based
on what appeals to their target demographic the most. The firm's endorser should be able to
deliver on what the company stands for; there should be a match between the celebrity and the
brand.
The scope of the study is only limited to the soft drink industry. The study focusses
on purchase intention of consumers based on the characteristics of the celebrities and is only
limited to that.
1. To analyze the impact of the celebrity endorsement on the brand preference among the
consumers in the soft drink market.
2. To analyze whether or not the celebrity endorsement has any impact on the consumer’s
mind which prompt them to make a purchase decision and what factor influences them to do
so.
3. To identify if there is a significant impact of endorsements on people’s mind belonging to
different age groups which leads to difference in their preferred cold drink brand.
4. To analyze the impact of Price and Quality on consumer Buying Behaviour
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1.6 Limitations of the Study
1. The sample size of 201 respondents is too small to come to any conclusion and predict
anything for the whole population.
2. The research cannot be held very accurate because the majority of the respondents belong
to same age group of 18-25 i.e. there are chances of homogeneity in the responses and various
aspects of the research cannot be studied which are linked with different age groups.
3. 100% honesty is not expected from the respondents.
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Chapter - 2
Literature Review
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This chapter consists of brief analysis of all the previous researches done on this topic and
related topics. This chapter consists of critical review of some of the articles and journals that
have already been published.
( Namitha.S.G, Prof. Jimmy Thankachan ) This article was a general idea about the
endorsements and marketers. Marketers endorse celebrities with their products and brands in
the advertisement to increase their sales and change the perception of the viewer’s regarding
their brand, which positively impacts on their buying behaviour. The research objectives of
the article involved examining the impact of celebrity endorsement on buying behaviour,
influence of brand over celebrity endorsement and factors of celebrities that attracts more to
public. Three models were used in order to examine the effect. These models are :
Two more research articles were related to celebrity endorsement and brand building and had
a kind of similar content. Consumer associate characteristics of the celebrity with attributes of
the product that coincide with their own needs and desire. It was concluded that Celebrity
endorsement influence consumer behaviour and their buying decision but one thing that brands
should keep in mind is the association of celebrity with the right product so that people can
connect with the celebrity and the product. Example : You cannot take Nawazuddin
Siddiqui in a protein shake ad and people cannot connect with him in terms of body building
and fitness. But they can easily connect with John Abraham or Salman Khan for these type of
products.
Malihe, E. ( 2012 ), The author focuses on the impact of brand attitude on consumer
purchase behaviour in this paper. She was particularly interested in the relationship between
consumer brand loyalty and brand extension acceptance, the relationship between consumer
brand loyalty and consumption frequency, and the impact of demographic characteristics on
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consumer buying behaviour.
Roy, S. ( 2012 ) In this paper, the author attempts to determine whether an overly
used celebrity has the same effectiveness as an underused celebrity, as well as whether an
unduly used celebrity has any negative impact on the brand image and consumer perception.
It was discovered that if the product and celebrity match, an underutilised celebrity has the
same impact as an overutilized celebrity. Overuse of a celebrity causes consumers to lose faith
in the celebrity, resulting in a negative impact on the brand.
Anojan, V., & Subaskaran, T ( 2015 ), The authors of this study wanted to know
what qualities of soft drinks entice customers to buy a specific brand. They studied the impact
of numerous variables such as price, flavour, colour, quantity, promotions, commercials,
celebrity endorsement, and how these variables change depending on a consumer's age,
gender, previous experience, income level, and consumption duration.
Dwivedi, A., Johnson, L. W., & McDonald, R. E. ( 2015 ), In this paper, the
researchers wanted to investigate what characteristics of soft drinks persuade users to buy a
particular brand. They looked at how price, flavour, colour, quantity, promotions,
commercials, and celebrity endorsement affect a consumer's age, gender, previous experience,
income level, and consumption duration, as well as how these variables change depending on
their age, gender, previous experience, income level, and consumption duration.
Sushil Kumar Rai(2013), According to this study, celebrities are persons who are
frequently associated with a different way in their norms and who also receive a high level of
recognition from others. The fact that a corporation can quickly achieve public recognition and
a higher degree of attention and memory by paying celebrities to endorse their brand is one of
the main reasons why they do so. As a result, celebrity endorsement is considered to have a
beneficial impact on a consumer's perception of a brand and their purchasing choice.
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(Clark and Horsman, 2003), This study states that consumers are more likely
to buy products advocated by celebrities than products not endorsed by celebrities, according
to this study, since celebrity-sponsored products are more valuable to them. For huge
companies to maintain their image of the product, the practise of leveraging celebrities for
marketing communication is highly common.
(Debence and Kernan 1984) Customers generate good perceptions when they
encounter an endorser who is visually beautiful, according to Erdogen (1999). The feature of
appeal encompasses not only the endorser's physical attractiveness, but also his or her lifestyle
and attitude. According to research, customers' values are easily influenced by endorsers who
are viewed as beautiful.
Atkins and Block (1983) This study says that celebrity advertising has an
impact because celebrities are perceived as dynamic individuals who possess both beautiful
and lovable characteristics. Furthermore, it is considered that their celebrity will draw attention
to the product or service.
Tripp C Jensen T.D and Carlson L. (1994) , According to the study, when
a celebrity recommends one or two goods, they are substantially more trustworthy than a
celebrity who endorses many more. As a result, he claims that many endorsement campaigns
by a single celebrity can always have a detrimental impact.
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article, celebrity endorsement has a good or negative impact on customer purchasing
behaviour. Customers are growing more demanding these days. Their expectations are steadily
increasing, and marketers are working hard to meet them
Schiffman and Kanuk (1997), This article discusses how most consumer
behaviour models are founded on economic theory, namely the idea that individuals act
rationally to maximise the benefits they can obtain while acquiring goods or services.
Gilbert (1991), This article talks about creation of new a model of purchase
decision-making that included two types of elements that can influence customer behaviour.
Psychological elements, such as perception and learning, are the primary source of effect. The
second influencing component considers sociocultural characteristics, including reference
groups and family.
( V. Anojan & T. Subaskaran ) The goal of this study was to determine how customer
preferences influenced the purchasing behaviour of all soft drinks consumed by regular
consumers in Northern Province.
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Banumathy and Hemameena (2006), In this study when analysing customer brand choice for
soft drinks in this study, it was shown that after globalisation, most consumers favour
multinational brands such as Pepsi and Coca-Cola. Consumers chose a certain brand or drink
because of its taste and capacity to refresh them.
Shanmuga sundaram (1990), In Vellore, Tamil Nadu's north Arcot area, he researched soft
drink preferences. The most popular soft drink among respondents was Gold Spot (26 percent),
followed by Limca (14 percent) . Taste was discovered to be the most important element in
choosing a certain brand.
(Kelley, Power & Wimbush, 2012) studied that Soft drink products have been warmly received
by consumers, and they are increasingly displacing hot drinks as the world's largest beverage
sector. In the face of rapidly rising soft drink demand, the entire sector is confronted with new
opportunities and problems.
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Chapter – 3
Research Methodology
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This chapter focusses on research design and the methodology that is being used in the study.
It involves the process of conducting the study. It consists of the definitions and terms that re
being used in the study, Sampling Size, Sampling Technique, Sources and Methods of Data
Collection, techniques used in the data analysis and Hypotheses.
This section includes all the terms that have been commonly and repeatedly used in the
research proper along with the brief explanation.
Soft Drinks Industry – Soft Drinks industry is one of the rapidly growing industry
with average growth expected to be aroung 9% annually. It consists of all the non-acholic
drinks, carbonated and fruit Drinks.
3.2 Hypotheses
Analysis I
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H1 – There is significant impact of Negative Publicity of celebrity and Purchase Decision of
consumer
Analysis II
H0 – Price and quality does not have a significant impact on Consumer Purchase Decision.
H2 - Price and quality does have a significant impact on Consumer Purchase Decision.
Analysis III
H0- There is no significant relation between your preferred cold drink brand and your
favorite celebrity.
H3 - There is significant relation between your preferred cold drink and your favorite
celebrity.
Analysis IV
Analysis V
H0- Likability of the celebrity does not have an impact on Purchase decision
H5 – Likability of the celebrity has a significant impact on Purchase Decision.
Analysis VI
Ho- Celebrity endorsements cannot influence purchase decision even when the advertisement
is watched frequently.
H6- Celebrity endorsements can influence purchase decision when the advertisement is
watched frequently.
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3.3 Sampling Size and Sampling Technique
Sample size is the total number of respondents that have been used in the study. The
sample size of this study is 201 respondents who have taken active part in the study. The
sampling technique used in the study is Purposive Sampling. It is used when the study is done
for a particular purpose and the samples are based on the discretion of the researcher. The
respondents who do not seem fit for the study have been excluded from the sample.
The data used in this research is a combination of both primary data and secondary
data. Both the data collection method has been used. For the primary data, a questionnaire has
been prepared which has different sets of questions to analyze later in the research. The
secondary data includes research articles, journals and every information available on web
related to the topic. The inputs of this secondary data is mentioned in the Literature Review of
the research paper. I am collecting descriptive data by gathering observations without
intervening.
Chapter 1 – Introduction
This chapter gives the brief introduction about the Topic on which research has
been done. It includes different subjects of study like Consumer Behavior, Celebrity
Endorsements and the soft Drinks Industry. It also consists the scope of the study,
objectives and limitations of the study and the problem statement.
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Chapter 2 – Review of Literature
This chapter includes a short and brief description of all the research papers
and articles that have been analyzed for this study. A critical analysis of the previous
studies that have been conducted on this topic and the related topics is mentioned in this
chapter. A total of 15-20 articles have been reviewed for this research project.
This chapter includes the overall framework and structure of the research. It
includes the methodology that has been used in completing the research project. It consists
Sampling Size and Sampling Techniques that have been used in the research, Source and
Method of Data Collection and the techniques that have been used in completing the
analysis of the report.
This chapter consists of all the analytical study od this research. It includes the
interpretations of all the descriptive statistics and the hypothesis testing. It has all the
charts, tables and graphs that are required for the completion of the study. All the data of
different tests like Regression, Correlation and ANOVA has been attached in this section
of report. All these tests have been performed using SPSS and the results have directly
been imported from there.
This is the Final chapter of the research Projects, which consists of all the final
results of the study. This chapter includes Future Scope of Study, Feasible suggestions
and at the end, the conclusion and learnings from the whole research.
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Chapter 4
Data Analysis and Interpretation
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This chapter includes all the analysis of the research. It consists the results of the descripritive
statistics and the Hypothesis testing. All the data has been encompassed in this chapter. Various
test results of Regression Analysis, Correlation and ANOVA have been included in this chapter
along with the data interpretation. All the data has been directly imported from SPSS.
Cronbach’s Alpha reliability test is used to measure the consistency and reliability of
the data that has been collected. The range of Cronbach Alpha is 0 to 1 wherein the value below
0.5 is considered inconsistent and unreliable. The data was collected through questionnaire and
analyzed using SPSS.
N %
Cases Excludeda 0 .0
Table 4.1
Reliability Statistics
.770 17
Interpretation
As per the above table, the value of Cronbach’s Alpha is 0.770 which is above 0.5. This implies
that the data is consistent and highly reliable. The data can be accepted for the study of Impact
of Celebrity Endorsement on Consumer Buying Behaviour in the Soft Drinks Industry.
Table 4.2
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Age of Respondents
Figure 4.1
Age of Respondents
Interpretation
From the above table and graph, it can be seen that 80.1% of the respondents are between
the age group of 18-25 years of age. 8% of the respondents are below 18 years of age, 7%
lie between 26-35 years of age. Around 5% people are above 36 years of age. Majority of
the respondents are between 18-25 years of age. From this, we can say that this study will
be more inclined towards people of 18-25 years of age.
29
Table 4.3
Gender of Respondents
Others 1 0.5
Figure 4.2
Gender of Respondents
Interpretation
From the above table and graph, it can be seen that 75.6% people are male and only 23.9%
respondents are female. From this, we can say that majority of the respondents are female who
watch celebrity endorsed video.
30
Table 4.4
Monthly Income of Respondents
Figure 4.3
Monthly Income of Respondents
Interpretation
From the above table and graph, it can be seen that majority of the respondents have income
between 15,000-35,000 i.e. nearly 49.8% . 34.3 % respondents have income below 15,000. 8%
people have income between 35,000 to 55,000. 3.5 % people have income between 55,000 and
75,000 and only 1% people have income more than 75,000. 3.4% respondents have no
income/other income. This means that majority of the people have income between 15,000 and
35,000.
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Table 4.5
Frequency of watching celebrity endorsed video
Occasionally 75 37.3
Hardly 20 10
Never 1 0.5
Figure 4.4
Frequency of watching celebrity endorsed video
Interpretation
From the above table and graph, it can be seen that 52.2% of the respondents watch celebrity
endorsed video very often. 37.3% people watch it occasionally, 10% respondents watch it less
frequently and only 0.5% respondents never watch the celebrity endorsed videos. This means
that all the respondents watch celebrity endorsed video except one respondents.
32
Table 4.6
Does celebrity endorsed advertisements catches your attention ?
No 44 21.9
Figure 4.5
Interpretation
As per the above table and graph, advertisements catch 70.6% people’s attention. However, it
does not catch the attention of 21.9% respondents. 7.5% people are not sure that whether the
advertisements catches their attention or not. So we can conclude that Celebrities
Advertisements catches the attention of respondents.
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Table 4.7
Do you purchase the product endorsed by your favourite celebrity ?
No 63 31.3
Figure 4.6
Interpretation
From the above table and graph, it can be seen that 53.7% of the respondents purchase the
celebrity endorsed product. 31.3% of the respondents do not buy celebrity endorsed products
and 14.9% people are not sure about the purchase of celebrity endorsed product. This concludes
that majority of the respondents purchase the celebrity endorsed product.
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Table 4.8
Trustworthiness of the advertisement
No 47 23.4
Figure 4.7
Interpretation
From the above table and graph, it can be seen that 57.2% people trust the celebrity
endorsements whereas 23.4% of the respondents do not trust celebrity endorsed video. 19.4%
of the respondents do not take any side and are neutral. This concludes that majority of the
respondents have trust on the advertisements.
35
Table 4.9
Factor affecting the purchase decision
Figure 4.8
Interpretation
From the above table and graph, it can be seen that majority of the respondents i.e 33.8% are
influenced by the attractiveness of the celebrity. 28.9% of the respondents are influenced by
the credibility of the celebrity, 24.4% of the respondents are influenced by the meaning that is
transferred to the product and 12.9% of the respondents are influenced by the Product Celebrity
Matchup.
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Table 4.10
Preferred Cold Drink
Coca-Cola 77 38.3
Pepsi 57 28.4
Frooti 30 14.9
Fanta 11 5.5
Figure 4.9
Interpretation
From the above table and graph, it can be seen that majority i.e. 38.3% of the respondents prefer
Coca-Cola. 28.4% of the respondents prefer Pepsi, 14.9% of the respondents prefer Frooti,
5.5% of the respondents prefer Fanta and rest 12.9% of the respondents have other cold drink
as their preferred one. This concludes that the most favorite cold drink among the respondents
is Coca-Cola.
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Table 4.11
Is the cold drink preference based on the advertisements featuring your favourite celebrities
?
Yes 98 48.8
No 86 42.8
Figure 4.10
Interpretation
From the above table and data, it can be seen that majority i.e. 48.8% of the respondent’s
prefferred cold drink is influenced by their favourite celebrity’s advertisement. 42.8% of the
respondent’s choice of their preffered cold drink is not because of their favourite celebrity’s
advertisment. 8.5% of the respondents are neutral. This concludes that majority of the
respondent’s preference is based on celebrity endorsed advertisement.
38
Table 4.12
Do you think these advertisements create an illusion in consumer's mind regarding the
product ?
No 54 26.9
Figure 4.11
Interpretation
As per the above table and graph, it can be seen that 73.1% of the respondents feel that the
advertisement’s create illusion in customer’s mind while 26.9% of the respondents feel that the
advertisements do not create any illusion about the product in customer’s mind. This concludes
that majority of the respondents feel that these advertisements creates an illusion in customer’s
mind.
39
Table 4.13
Are you happy with the product you consume ?
No 37 18.4
Figure 4.12
Interpretation
From the above table and graph, it can be seen that 81.6% of the respondents are happy and
satisfied with the product they consume whereas 18.4% of the respondents are not happy or
dissatisfied with their product. This concludes that respondents are satisfied with the product.
40
Table 4.14
Does the product matches your expectation ?
No 42 20.9
Figure 4.13
Interpretation
As per the above table and graph, it can be seen that 79.1% of the respondents think that the
product matches their expectation whereas 20.9% of the respondents think that the product
does not matches their expectations. This concludes that the product matches respondent’s
expectation.
41
Table 4.15
Celebrities in ads help me recall products more promptly.
Figure 4.14
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 52.2% of the respondents have agreed
that celebrities in ads help them recall the product while 13.4% of the respondents have strongly
agreed for that. 23.4% of the respindents have neutral opinion. 8% of the respondents have
disagreed and 3% of the respondents have strongly disagreed that celebrities in ads hepl them
recall a product.
42
Table 4.16
I perceive celebrity endorsement as very effective
Strongly Disagree 4 2
Disagree 31 15.4
Neutral 80 39.8
Agree 65 32.3
Figure 4.15
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 32.3% of the respondents have agreed
that celebrity endorsements are very affective and 10.4% of the respondents have strongly
agreed to that. However, most of the respondents i.e. 39.8% of the resondents have a neutral
opinion on this. 15.4 % of the respondents disagree and 2% of the respondents have strongly
disagreed that celebrities endorsements are effective. Most of the people have a neutral opinion,
however the scale is more bent towards the right end with more that 42% of the respondents
43
having opinion of Agree and Strongly Agree. This means that most people perceive celebrity
endorsements as very effective.
44
Table 4.17
Celebrity endorsements are very influential and can influence my purchase decision
Figure 4.16
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 31.8% of the respondents have agreed
that celebrity endorsement can influence their purchase decision while 9% of the respondents
have strongly agreed to that. 16.4 % have disagreed to this and 5.5% of the respondents have
strongly disagreed to this. Most of the people i.e 37.3% of the respondents have a neutral
opinion, however the scale is more bent towards the right end with more that 40% of the
respondents having opinion of Agree and Strongly Agree. This means that most people believe
that the celebrity endorsements can influence the purchase decision of the respondents.
45
Table 4.18
Price and quality are more important factor to me when choosing a soft drink
Figure 4.17
Interpretation
A 5 point likert scale has been used in this question. Fromthe above table and graph, it can be
seen that the data is distributed among different scales. 48.8% of the respondents have very
strongly agreed that Price and Quality are most important factor when choosing a soft drink
while 29.9% of the respondents have agreed to that. 13.9% people have a neutral opinion on
this. 6.5% have disagreed to the fact that Price and Quality are most important factor. Only 1%
of the respondents have strongly disagreed for this. This means that Price and Quality are the
most important factors for the respondents.
46
Table 4.19
I find celebrity endorsed product more classy, desirable and a symbol of status
Figure 4.18
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 21.9% of the respondents have agreed
that celebrity endorsed products are more classy, desirable and act as a symbol of status while
8% of the respondents have strongly agreed to that. 27.4% of the respondents have disagreed
to that while 14.4% of the respondents have strongly disagreed to the fact that celebrity
endorsed products are more classy and desirable. Most of the people have neutral opinion i.e
28.4% of the respondents have neutral opinion. However, the scale is highly bent towards left
side wherein more than 41% of the respondents have disagreed and strongly disagreed. This
47
means that, celebrity endorsed products are not classy, desirable and symbol of status for
majority of the respondents.
48
Table 4.20
Negative publicity of the celebrity also impact my purchase decision
Figure 4.19
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 28.9% of the respondents have agreed
that negative publicity of the celebrity impact the purchase decision of the respondents while
16.4% have strongly agrred to that. 15.9% of the respondents have disagreed and 6% have
straongly disagreed. Most of the people have neutral opinion i.e 32.8% of the respondents have
neutral opinion. However, the scale is highly bent towards right side wherein more than 45%
of the respondents have agreed and strongly agreed. This means that, Negative Publicity of the
Celebrities affects the purchase decision of the respondents.
49
Table 4.21
Likability of the celebrity influence my purchase decision
Figure 4.20
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 28.9% of the respondents have agreed
that Likability of the celebrity influence the purchase decision of the respondents while 9.4%
have strongly agreed to that. 23.4% of the respondents have disagreed and 6% have strongly
disagreed. Most of the people have neutral opinion i.e 32.3% of the respondents have neutral
opinion. However, the scale is highly bent towards right side wherein more than 38% of the
respondents have agreed and strongly agreed. This means that, Likability of the Celebrity
influence the purchase decision of the respondents.
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Table 4.22
I recommend my friends to use celebrity endorsed products
Figure 4.21
Interpretation
A 5 point likert scale has been used in this question. From the above table and graph, it can be
seen that the data is distributed among different scales. 33.3% of the respondents have agreed
to refer the celebrity endorsed product to their friends while 11.9% have strongly agreed. 30.8%
of the respondents have neutral opinion. 14.9% of the respondents have disagreed and 9% have
strongly disagreed to refer the celebrity endorsed product to their friends. This means that
respondents are more likely to refer the celebrity endorsed product to their friends.
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4.3 Hypotheses Testing
Analysis I
Regression is a statistical tool that is used to determine the strength of the relationship
between dependent and independent variables. In this case, the Independent variable is
Negative Publicity and the dependent Variable is Purchase Decision of Consumer.
Table 4.23
Regression Analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .094a .009 .004 .8953
a. Predictors: (Constant), Negative Publicity
Table 4.24
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 1.427 1 1.427 1.781 .184b
1 Residual 159.498 199 .801
Total 160.925 200
a. Dependent Variable: Purchase Decision
b. Predictors: (Constant), Negative Publicity
Interpretation
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From table 4.23, it can be seen that the value of R is 0.094. This shows there is a low positive
correlation between the variables. The value of R square is 0.009. This mean that 0.9% change
in the dependent variable is attributed to the independent variable.
Table 4.24 indicates that the statistical significance of the regression model that was run. Here,
the p value (Sig.) is 0.184, which is more than 0.05. This shows the regression model is not fit
for the data and it does not predicts a stastically significant outcome. Therefore, alternative
hypothesis is Rejected.
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Analysis II
H0- There is no significant relation between your preferred cold drink brand and your favorite
celebrity.
H1 - There is significant relation between your preferred cold drink and your favorite celebrity.
Regression is a statistical tool that is used to determine the strength of the relationship
between dependent and independent variables. In this case, the Independent variable is
Preference of Cold Drink Brand and the dependent Variable is Basis of the preferred cold drink
brand.
Table 4.25
Regression Analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .300a .090 .085 .9156
a. Predictors: (Constant), Preference of Cold Drink
Table 4.26
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 16.467 1 16.467 19.644 .000b
1 Residual 166.817 199 .838
Total 183.284 200
a. Dependent Variable: Basis of Preference
b. Predictors: (Constant), Preference of Cold Drink
Interpretation
From table 4.25, It can be seen that the value of R is 0.300. This shows there is a moderate
positive correlation between the variables. The value of R square is 0.090. This mean that 9.0%
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of the change in the dependent variable is attributed to the independent variable.
Table 4.26 indicates that the statistical significance of the regression model that was run. Here,
the p value (Sig.) is 0.000, which is less than 0.05. This shows the regression model is a good
fit for the data and it predicts a stastically significant outcome. Therefore, alternative
hypothesis is Accepted and it can be concluded that There is significant relation between your
preferred cold drink and your favorite celebrity.
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Analysis III
H0 – Price and quality does not have a significant impact on Consumer Purchase Decicion.
H1 - Price and quality does have a significant impact on Consumer Purchase Decision.
Regression is a statistical tool that is used to determine the strength of the relationship
between dependent and independent variables. In this case, the Independent variable is Price
and Quality and the dependent Variable is Purchase Decision of Consumer.
Table 4.27
Regression Analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .192a .037 .032 .8825
a. Predictors: (Constant), Price and Quality
Table 4.28
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 5.941 1 5.941 7.628 .006b
1 Residual 154.984 199 .779
Total 160.925 200
a. Dependent Variable: Purchase Decision
b. Predictors: (Constant), Price and Quality
Interpretation
From table 4.27, it can be seen that the value of R is 0.192. This shows there is a low positive
correlation between the variables. The value of R square is 0.037. This mean that 3.7% of the
change in the dependent variable is attributed to the independent variable.
Table 4.28 indicates that the statistical significance of the regression model that was run. Here,
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the p value (Sig.) is 0.006, which is less than 0.05. This shows the regression model is a good
fit for the data and it predicts a statically significant outcome. Therefore, alternative hypothesis
is Accepted and it can be concluded that Price and quality does have a significant impact on
consumer purchase decision.
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Analysis IV
H1- There is a relation between age and preferred cold drink brand.
Regression is a statistical tool that is used to determine the strength of the relationship
between dependent and independent variables. In this case, the Independent variable is Age of
the Respondent and the dependent Variable is Preferred Cold Drink Brand.
Table 4.29
Regression Analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .062a .004 -.001 1.3628
a. Predictors: (Constant), Age
Table 4.30
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 1.432 1 1.432 .771 .381b
1 Residual 369.593 199 1.857
Total 371.025 200
a. Dependent Variable: Preference of Cold Drink
b. Predictors: (Constant), Age
Interpretation
From table 4.29, it can be seen that the value of R is 0.062. This shows there is a low positive
correlation between the variables. The value of R square is 0.004. This mean that 0.4% of the
change in the dependent variable is attributed to the independent variable.
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Table 4.30 indicates that the statistical significance of the regression model that was run. Here,
the p value (Sig.) is 0.381, which is more than 0.05. This shows the regression model is a not
a good fit for the data and it does not predicts a statically significant outcome. Therefore,
alternative hypothesis is Rejected and it can be concluded that There is no relation between
age and preferred cold drink brand.
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Analysis V
H0- Likability of the celebrity does not have an impact on Purchase decision
Regression is a statistical tool that is used to determine the strength of the relationship
between dependent and independent variables. In this case, the Independent variable is
Likability of the celebrity and the dependent Variable is Purchase Decision of Consumer.
Table 4.31
Regression Analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .196a .038 .034 1.0447
a. Predictors: (Constant), Likability
Table 4.32
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 8.693 1 8.693 7.965 .005b
1 Residual 217.197 199 1.091
Total 225.891 200
a. Dependent Variable: Purchase Decision
b. Predictors: (Constant), Likability
Interpretation
From table 4.31, it can be seen that the value of R is 0.196. This shows there is a low positive
correlation between the variables. The value of R square is 0.038. This mean that 3.8% of the
change in the dependent variable is attributed to the independent variable.
Table 4.32 indicates that the statistical significance of the regression model that was run. Here,
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the p value (Sig.) is 0.005, which is less than 0.05. This shows the regression model is a good
fit for the data and it predicts a stastically significant outcome. Therefore, alternative
hypothesis is Accepted and it can be concluded that Likability of the celebrity has a significant
impact on Purchase Decision.
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Analysis VI
Ho- Celebrity endorsements cannot influence purchase decision even when the advertisement
is watched frequently.
H1- Celebrity endorsements can influence purchase decision when the advertisement is
watched frequently.
Regression is a statistical tool that is used to determine the strength of the relationship
between dependent and independent variables. In this case, the Independent variable is
Frequency of Watching the Celebrity Advertisement and the dependent Variable is Influence
of Celebrity Endorsement.
Table 4.33
Regression Analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .054a .003 -.002 1.0084
a. Predictors: (Constant), Frequency
Table 4.34
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression .581 1 .581 .571 .451b
1 Residual 202.344 199 1.017
Total 202.925 200
a. Dependent Variable: Influential
b. Predictors: (Constant), Frequency
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Interpretation
From table 4.33, It can be seen that the value of R is 0.054. This shows there is a low positive
correlation between the variables. The value of R square is 0.003. This mean that 0.3% of the
change in the dependent variable is attributed to the independent variable.
Table 4.34 indicates that the statistical significance of the regression model that was run. Here,
the p value (Sig.) is 0.451, which is more than 0.05. This shows the regression model is a not
a good fit for the data and it does not predicts a stastically significant outcome. Therefore,
alternative hypothesis is Rejected and it can be concluded that Celebrity endorsements cannot
influence purchase decision when the advertisement is watched frequently.
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Chapter 5
Findings, Suggestions and Conclusion
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This chapter includes the final results of the whole study. It consists of the findings of the
study, feasible suggestions for the study conducted and finally the conclusion of the whole
research project which includes all the learnings from this study.
5.1 Findings
▪ Almost every person watches celebrity endorsed videos and everyone has access to it
on a larger scale.
▪ People do purchase celebrity endorsed products.
▪ The trustworthiness of the celebrity endorsed advertisements is very high among the
customers.
▪ Attractiveness of the celebrity is the most influential factor for the customers to
purchase any product that is endorsed by them followed by the credibility of the
celebrity.
▪ Coca-Cola is the most preferred drink among the customers followed by Pepsi and
people prefer this because their favorite celebrity endorse it.
▪ People are satisfied with the soft drink product they consume as the product matches
their expectations.
▪ Most of the people believe that Celebrities in ads help them recall soft drinks
product more promptly.
▪ People perceive celebrity endorsements as very effective mean of advertising and
communication. For them, it creates a large impression on audience and covers a
large group of people.
▪ More than anything else, people consider Price and Quality as the main factors when
making a purchase decision. The attractiveness and credibility of celebrity is of no
use when Price and Quality enter into picture in soft drinks market.
▪ Age of people does not determine and does not have any impact on the brand of cold
drink they prefer to drink. It is inversely proportional to the brand of the cold drink.
▪ When people create a liking for any celebrity, they prefer to buy the soft drink
products endorsed by that celebrity.
▪ Most people do not consider celebrity endorsed soft drink product as a desirable
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products.
▪ The negative image of the celebrities does not really have an impact on consumer
purchase decision with related to soft drinks.
▪ Nearly 48.8% people have answered that they have a particular soft drink because
their favorite celebrity endorse it. This means that, selecting the right person for the
endorsement is very much important to gain more customers.
▪ The soft drink market is very rapidly growing with a CAGR around 9% per year.
The study on ‘Impact of celebrity endorsement on consumer buying behaviour in the soft
Drinks Industry’ has provided a lot of valuable insights to me. The study focused on soft
drinks industry and how celebrities influence customers to purchase these soft drinks. From
this study we can suggest that it is very important for the companies to select the right public
figure/celebrity for their product. Customers gets easily influenced by the fame of popular
celebrities. Customers value quality more than anything else. Along with quality they look
for value for money products, so companies should focus more on those areas. For e.g. Paper
Boat, instead of endorsing it with High profile celebrities concentrated more on their price
and quality and the result could be seen for them.
The scope of this study was limited to soft drinks industry and was based on some
characteristics of the celebrities that influence people to buy them. A more detailed study can
be conducted in the whole beverage industry which includes all kins of beverages. Along
with this, how packaging and different quantity options in soft drinks industry affect the
consumer buying behaviour can also be studies. Also, there were only 201 respondents in
this study, so to understand the mindset of the customers this study can be conducted on a
larger scale to be more insightful. There is a scope for qualitative study as well. Impact of
these celebrity endorsements and consumer buying behaviour can be studies in other
industries as well such as apparel, automobile, etc.
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5.3 Conclusion
This research gives insights as to what factors influence customers to make a purchase decision.
Soft Drink market is a market where taste matters a lot. It is a very dynamic market and industry
to work in. The taste and preference of people can change anytime. The sole purpose of a soft
drink is drinking for refreshment. People are very much influenced by celebrities in every
industry and so in here. They try to bring closer to their favorite celebrity by using their
endorsed product, in this case it is the soft drink. Based on the research done, it can be
concluded that these endorsements definitely prompt customers to buy the drinks. They pull
customers to consume the endorsed product.
In conclusion, it can be shown that all the objectives of this this study were successfully met.
All of them were found out using statistical methods. Every person has access to celebrity
endorsements and every person is influenced by these. However, people are happy with the
product they are consuming and this is the most satisfying thing.
67
References
68
Dwivedi, A., Johnson, L. W., & McDonald, R. E. ( 2015 ).
Celebrity endorsement, self-brand connection and consumerbased brand equity .
Journal of Product & Brand Management , 449–461.
Malihe, E. (2012).
A study of the impact of brand attitude on consumer purchase behavior a
comparison study between India and Iran for soft drink market. Savitribai Phule Pune
University
Mittal, M. (2017).
Impact of Celebrity Endorsements onAdvertisement Effectiveness & Purchase
Decision Among Youths . International Journal of Marketing and Business Communication
Kumar, (2010),
“Celebrity endorsement and its impact on consumers buying behavior”
McCracken, G. (1989),
“Who is the Celebrity Endorser? Cultural Foundations of the Endorsement
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Process”,
The Journal of Consumer Research, 16 (3), 310-321
Nicosia, F. M.,
Consumer Decision Processes. Englewood Cliffs, NJ: Prentice Hall,
Gilbert, D. C., (1991). An Examination of the Consumer Behavior Process Related to Tourism.
In Progress in Tourism, Recreation and Hospitality Management. Edited by
C.P. Cooper.London: Belhaven, pp.78-105.
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Banumathy and Hemameena (2006),
Customer satisfaction and customer preferences towards soft drinks. Total
Quality Management & Business Excellence, Jul/Aug, Vol. 19 Issue 7/8, 11p
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ANNEXURE
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Questionnaire
a. Below 18
b. 18-25
c. 26-35
d. 36-45
e. Above 45
a. Male
b. Female
a. Yes
b. No
c. Not Sure
a. Yes
b. No
c. Not Sure
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6. Do you trust celebrity endorsed advertisements?
a. Yes
b. No
c. Not Sure
7. Which of the factor listed below influence you or can influence you to purchase
celebrity endorsed product ?
a. Coca-Cola
b. Pepsi
c. Frooti
d. Fanta
e. Any Other… ( Please Mention )
9. Is the cold drink preference based on the advertisements featuring your favourite
Celebrities ?
a. Yes
b. No
c. Not Sure
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10. Are you happy with the product you consume ?
a. Yes
b. No
11. Does the product matches your expectation and is exactly what is shown in the
advertisement ?
a. Yes
b. No
12. Do you think that these advertisements create an illusion in consumer’s mind
regarding the product ?
a. Yes
b. No
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
a. Strongly Agree
b. Agree
c. Neutral
75
d. Disagree
e. Strongly Disagree
15. Celebrity endorsements are very influential and can influence my purchase
decision
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
16. Price and quality are more important factor to me when choosing a soft drink
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
17. I find celebrity endorsed product more classy, desirable and a symbol of status
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
a. Strongly Agree
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b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
77