Consumer Behaviour - Digital Assignment 3

Mohammed Fawaaz A. 20BBA0095

Consumers recall things that have been endorsed by celebrities more often, according to a
Taiwanese study, regardless of whether they are true fans or not. Celebrities are recognised
by the human brain in the same way that people we know are recognised. If consumers are
fans, the impact is that they place a higher value on things that celebrities endorse — it's as
if they're getting advise from a trusted friend.

Celebrities endorsing or supporting goods can raise brand awareness, trust, and familiarity,
all of which are essential factors in the buying decision-making process. When a celebrity
they admire or relate to promotes a brand, consumers feel more empathetic towards it. It's
just a straightforward psychological effect.

People subconsciously feel that by buying a product marketed by a celebrity they respect,
they will be able to replicate the celebrity's desired attributes or attract people who share
their interests. They will identify a product with the celebrity's success, beauty, athletic
ability, and so on.

Brands are capitalising on this by increasingly exploiting celebrity social media networks.
Consumers, particularly those in the younger generations, use social media to engage with
and form close relationships with the celebrities they follow, making it the ideal place for
these celebrities to promote a brand or a product on their own accounts.

For a single 140-character tweet, social media icons like Kim Kardashian and Justin Bieber
may be paid up to $20,000.

 Celebrity endorsement is often seen as a viable alternative for firms seeking to raise
awareness, establish credibility, and market their products. Between 14 and 19 percent of
commercials included celebrities endorsing products and businesses. Nike alone is believed
to spend $475 million per year on obtaining athlete endorsements.

According to Marketwatch, a mere statement from a business that has signed a celebrity or
athlete may lead stock prices to climb marginally and sales to boost by 4% on average.
Researchers found that 85% of people surveyed said that celebrity endorsements enhanced
their confidence in and preference for a product.

In an age where everyone spends most of their day on social media, there’s no doubt that
celebrities have an impact on our lives, and hence celebrity endorsements have an impact on
our consumer behaviour as well.

Because of changing consumer lifestyles and the rising importance of media and
communication, celebrity endorsement in Indian markets is expected to increase at a strong
CAGR throughout the forecast period.

Furthermore, with a burgeoning urban population and a growing number of social media
users, these digital channels have become an excellent marketing tool. The interest of the
public is quickly piqued by celebrity endorsement, which aids in connecting with the target
audience.

In India, celebrity endorsement is a crucial part of marketing. In India, celebrities appear in

roughly 50% of sponsorships, compared to around 20% in the United States. In addition, the
rising penetration of digital cable television in both urban and rural regions is a significant
driver of the India celebrity endorsement market's growth.

 The Indian celebrity endorsement market is now dominated by actors, followed by athletes.
By 2025, the Indian celebrity endorsement business is predicted to be driven by increased
internet penetration.

The India celebrity endorsement market is divided into four categories: pharmaceuticals and
toiletries, home items and appliances, beverages and confectionery, personal care, and
others.

In 2019, the beverages and sweets category had the biggest market share. However, due to
consumers' interest in personal grooming and fitness, the personal care goods category is
predicted to increase at the quickest rate during the projection year.

NexBrands, Cineyug, Approach Entertainment, Globosport, Armaans Events Pvt Ltd, ATI
Talents, Cine Dreams Film Corporation India, and SkyWalk Entertainment are among the
major companies in the India celebrity endorsement business.

The majority of these businesses provide two sorts of endorsement contracts. The first is a
one-time engagement with a fixed fee and term, while the second is a fixed fee and term
engagement. The fixed-term contract is gaining popularity, and celebrities are frequently
referred to as "brand ambassadors" for a specific product or firm.