Does Celebrity Endorsement influence the decision-making while

purchasing, specifically among the age group 18-45?

Report submitted to the

Indian Institute of Technology, Kharagpur
For the award of the degree

of

Master of Business Administration

by

Boora Ravi Teja

Reg. No: 21BM63125

Under the guidance of

Prof. Prabina Rajib (VGSoM)

VINOD GUPTA SCHOOL OF MANAGEMENT INDIAN

INSTITUTE OF TECHNOLOGY KHARAGPUR
APRIL 2021

1
 DECLARATION

I, Boora Ravi Teja hereby certify that this report titled ‘Does Celebrity Endorsement influence
the decision-making while purchasing, specifically among the age group 18-45?’

a. Is an original work and has been done by me under the guidance of my supervisor;
b. I have conformed to ethical norms and guidelines while writing the project;
c. Whenever I have used materials (data, model, figures and text) from other sources, I have
given due credit to them by citing them in the text of the report, giving their details in the
references, and following ‘fair use doctrine’ policies of copy righted materials if any used in this
report.

_________________________
Boora Ravi Teja
Roll Number: 21BM63125
Dated: 10/ 04/ 2022

2
 COPYRIGHT NOTICE

I, Boora Ravi Teja, hereby declare that this research project is an original work and has been
done by me under the guidance of my supervisor. This report has been created to present an
account of Applied Management research project during my degree at Vinod Gupta School of
Management, IIT Kharagpur and is a true representation of my work.

_________________________
(Boora Ravi Teja)

©Boora Ravi Teja [2022]

All Rights Reserved.

No part of this document or any of its contents may be reproduced, copied, modified or
adapted, without the prior written consent of the author, unless otherwise indicated for stand-
alone materials. Commercial use and distribution of the contents of the document is not
allowed without express and prior written of the author.

3
 ACKNOWLEDGEMENT

I would like this opportunity in expressing my deepest gratitude to all those people who in one
way or other helped me in completing this project. A project on consumer behaviour involves
a joint role of several hundred people on the way. This project could not be completed without
the help of my project guide, review panelists, and batch mates and countless other people
whose inputs I collected from surveys.

I wish to express my sincerest thanks to Prof. Prabina Rajib for giving me an opportunity to
study under his and for his valuable guidance, advice, suggestion and constant encouragement
rendered to me at every stage. This project would not have been possible without his invaluable
inputs on several aspects of consumer behaviour.

I am also thankful to the Institute and Faculty of Vinod Gupta School of Management, Indian
Institute of Technology, Kharagpur for providing me the valuable opportunity of doing this
project and also in enlightening me with the invaluable knowledge. I would like to acknowledge
the support of every individual who assisted me in completing this research project.

Boora Ravi Teja

Roll Number: 21BM63125
MBA 2021-23
Vinod Gupta School of Management, IIT Kharagpur

4
 Table of Contents

DECLARATION ......................................................................................................................................... 2
COPYRIGHT NOTICE ................................................................................................................................ 3
ACKNOWLEDGEMENT ............................................................................................................................ 4
CERTIFICATE FROM SUPERVISOR........................................................................................................... 6
APPROVAL OF THE VIVA-VOCE BOARD ................................................................................................. 7
Executive Summary ................................................................................................................................ 8
Project Background and Motivation...................................................................................................... 9
Objectives of the Study .......................................................................................................................... 9
Abstract ................................................................................................................................................ 11
Theoretical Underpinnings................................................................................................................... 12
Elaborative Likelihood Model (ELM): .............................................................................................. 12
Yale attitude change approach: ....................................................................................................... 13
Literature review .................................................................................................................................. 15
Research Methodology ........................................................................................................................ 19
Statistical Inferences ............................................................................................................................ 21
Results and Interpretation ................................................................................................................... 26
Conclusion ............................................................................................................................................ 33
Practical Implications ........................................................................................................................... 34
Recommendations for further studies ................................................................................................ 35
References ............................................................................................................................................ 36
Annexure-I ............................................................................................................................................ 37

5
 CERTIFICATE FROM SUPERVISOR

This is to certify that the AMRP report titled, ‘Does Celebrity Endorsement influence the
decision-making while purchasing, specifically among the age group 18-45?’ submitted by
Boora Ravi Teja bearing Roll No. 21BM63125 to Indian Institute of Technology, Kharagpur, is a
record of bona fide research work under my (our) supervision and we consider it worthy of
consideration for the further evaluation by the Viva-Voce Board.

Date:

____________________
Supervisor

6
 APPROVAL OF THE VIVA-VOCE BOARD

DD/MM/YYYY

Certified that the AMRP report titled ‘Does Celebrity Endorsement influence the decision-
making while purchasing, specifically among the age group 18-45?’ submitted by Boora Ravi
Teja to the Indian Institute of Technology, Kharagpur, towards the partial fulfilment of the
requirements for the award of the degree Master of Business Administration has been accepted
by the panel of examiners, and that the student has successfully defended the work in the viva-
voce examination held today.

Panel Member 1 Panel Member 2

Panel Member 3 Panel Member 4

7
 Title
Does Celebrity Endorsement influence the decision-making while purchasing, specifically
among the age group 18-45?

Executive Summary
The main objective of this research is to analyse and find out “Whether celebrity
endorsements affect the present generation of people”. The objective of the research has been
fulfilled by testing the hypothesis of the study. The research depends on quantitative data which were
collected through a questionnaire-based survey. The questionnaire-based survey has been undertaken
on a sample of 102 respondents. Furthermore, data analysis has been carried forward with the help of
SPSS through correlation. The aim of this research is to study the effect of celebrity endorsement and
also up to what level, it is affecting them.

As the celebrity endorsement has been a marketing practice for a long time. But nowadays, people are
literate and are having trust issues with the advertisement as they are fully aware that the celebrities
are paid and hence consumers are not just relying on celebrities while making decisions in purchasing
according to many reports. For this reason, this research aims to analyse at what level is celebrity
endorsement affects consumers’ purchase behaviour.

8
 Project Background and Motivation

It isn't uncommon for celebrities to endorse products. The first recorded record of celebrity
endorsement dates back to the late 1700s in the United Kingdom when the royals advertised
products. In India, the 1950s to 1980s were a pioneering period for celebrity endorsements,
with firms like Lux relying on Bollywood stars to promote their products. Celebrity
endorsements, on the other hand, have changed dramatically over the decades, particularly
with social media's huge domination.
Brands choose endorsers by first analysing their own important personality features, and then
mapping these personality traits to celebrities to discover a good fit. If employed effectively,
celebrity endorsers can assist hone a brand's desired personality feature, such as a "rebellious"
personality, "caring" personality, or "saviour" personality, among others. However, this is a
two-edged sword because, if done incorrectly, this match can utterly dilute a brand's identity.
According to studies, the majority of consumers do not trust brands, which isn't surprising in
today's hyper-aware environment. When celebrities are employed wrongly, such as in the age-
old 'Celebrity's secret' stereotype, the opposite might happen in terms of creating trust through
endorsers. Consumers in 2021 will be able to see through the fact that a celebrity with a net
worth of several million dollars isn't relying on a cheap shampoo or a low-cost smartphone to
maintain their luscious locks and take beautiful selfies.
Regular advertising with and without celebrities is actually equal in terms of efficacy, according
to a Kantar study conducted over a ten-year period. This obviously demonstrates that ingenuity
always triumphs over celebrity. An incisive, creatively new piece of communication (devoid of
a well-known face) has the potential to attract as many as or even more people than relying on
the same faces who have been selling the same items to the same customer for years.
Hence, I would like to know the effect of celebrity endorsement on the present generation and
mostly on the most affected groups.

Objectives of the Study

9
The following are the research objectives:

 To explain the concept of the celebrity endorsement effect

 To understand the process of consumer purchase behaviour
 To explore the effect of celebrity endorsement while making purchase decisions
 To analyse the extent to which particular age groups are affected by celebrity
endorsement

10
 Abstract

Celebrity endorsement is a type of marketing; it is a type of publicizing effort or marketing

method that makes use of a celebrity's celebrity or societal position to promote a product,
company, or service, or to raise awareness about a problem. Every marketing method will have
a positive, negative, or no effect on product sales. The impact of "celebrity endorsement"
especially considering people of age groups 18-45, is the subject of this study report. A few
related studies on similar lines of the topic have been undertaken previously, but no ideal
solution has yet been discovered. It's still a hot topic. Some people believe that celebrity
endorsement is crucial to a company's marketing success because having a prominent name
speak to you helps you stand out from the competition. It can also help to improve the quality
of ads that are produced. Customers recall your marketing and the fact that your image is linked
to their favourite celebrity or VIP. When you hire a VIP to back up your image, you're also hiring
everything that comes with them. Some people believe that celebrities will accept anything in
order to get money. Brands with big names can have a lot of power. Consumers may focus on
the huge name (celebrity) rather than the actual product. When well-known persons promote
multiple causes at the same time, this is a particular risk. This is especially likely to occur among
today's youth, given that the majority of them are literate and are aware that celebrities are
paid to advocate products.

11
 Theoretical Underpinnings
Elaborative Likelihood Model (ELM):

John Cacioppo and Richard Petty developed the elaboration likelihood model (ELM) in 1980 as
a persuasion theory. Before its development, persuasion theories provided no comprehensive
framework for understanding attitude change. ELM provides a framework for understanding
and analyzing persuasive communication effectiveness. Persuasion is explained as a cognitive
process by the dual-process theory. It implies that when people are exposed to a persuasive
message, they engage in a cognitive process in which their attitude toward the message is
determined by their level of elaboration. The level of elaboration is the amount of cognitive
effort required to process a persuasive message.
People process information in either the central or peripheral route, depending on their level
of elaboration or cognitive effort. When a person's level of elaboration is high (when he or she
expends a lot of cognitive effort, the person is using the central route processing, which
requires both motivation and the ability to process a persuasive message. When the level of
elaboration is low, a person is said to be taking the side road, lacking motivation or the ability
to process a persuasive message.
This means that when people take the central route, they try to carefully evaluate the
message's arguments. When a person takes the side road, they pay attention to simple cues
such as the attractiveness of the spokesman or the expertise of the source. The individual relies
on superficial cues and requires little or no cognitive effort. This means that the attitude formed
through the peripheral route is less influenced by the persuasive message's argument quality.
If an individual's attitude is influenced more by issue-related information or the product's
message's quality, the individual takes the central route. If the individual is influenced more by
superficial cues, such as the celebrity's attractiveness, the individual is taking the peripheral
route.

Fig. Illustration of ELM with the help of a car

12
In comparison to the effect of the central route, thoughts generated by the peripheral route
will be relatively short-lived.

Yale attitude change approach:

The Yale attitude change approach (also known as the Yale attitude change model) in social
psychology is the study of the conditions under which people are most likely to change their
attitudes in response to persuasive messages. During World War II, Carl Hovland and his
colleagues at Yale University pioneered this approach to persuasive communications. The basic
model of this approach is "who said what to whom": the source of the communication, the
nature of the communication, and the nature of the audience. Many factors, according to this
approach, influence each component of persuasive communication. With persuasive
communication, the credibility and attractiveness of the communicator (source), the quality
and sincerity of the message (nature of the communication), and the attention, intelligence,
and age of the audience (nature of the audience) can all influence an audience's attitude
change. The source, message, medium, and audience are all independent variables, while the
effect (or impact) of persuasion is the dependent variable.
The Yale approach to attitude change has resulted in research and understanding of the nature
of persuasion. This approach has helped social psychologists understand the process of
persuasion and businesses improve the effectiveness of their marketing and advertising
strategies. This approach, like most other theories about persuasion and attitude change, is not
perfect. This approach is not a systematic theory about persuasive communications; rather, it
is a broad framework within which research was conducted.
The Yale researchers did not specify levels of importance among the factors of a persuasive
message. Instead, they emphasized analyzing rather than comparing the aspects of attitude
change.
This approach primarily focuses on who said what to whom
1.) Who is the source of communication:
The impacts of credibility are dependent on whether the speaker is "very trustworthy"
or "untrustworthy." Speakers who are well-known and credible can persuade far more
people than those who are not. Credible speakers have a sense of reputation, which
means that what they say matters to the people to whom they are speaking.
Furthermore, depending on the situation, attractive speakers have a greater influence
than ugly speakers. A study was carried out to assess both attractive and unattractive
females, as well as strong and weak messaging in relation to sunscreen promotion. They
discovered that people were more likely to be persuaded by a strong message delivered
by a beautiful woman. Despite a weak message from a similarly lovely chick.

13
 2.) What is being communicated:
The degree of attitude change is influenced by the nature of the communication. The
design of the message is one of these characteristics; individuals are more persuaded
by communications that don't appear to be tailored to them. With speakers, there is a
primacy effect that arises by nature. What people hear first has a greater influence on
them. Even if the arguments after the first speaker are stronger, the first speaker is
recorded as being stronger. Because of the recency effect, where people recall the most
recent occurrence the most, it is best to go last if there is a pause following each
utterance.

3.) Who is this being communicated:

The audience's qualities may influence the audience's attitude. Distracted listeners are
less likely to be convinced than audiences who are not distracted during the persuasive
speech. People between the ages of 18 and 25 are particularly prone to changing their
minds. People tend to be more stable and resistant to attitude change after those ages.
Furthermore, a less intelligent audience member is more persuadable than a more
intellectual audience member. People who dislike thinking might rely on specialists and
reliable sources to help them conserve their cognitive resources. If the expert source is
unreliable, the person may have to analyze the information on their own. Most people
are either not knowledgeable enough to evaluate the facts or have a low level of
confidence in the issue, so they must rely on others who are (expert and trustworthy
sources).

Fig. Stats showing the age-wise distribution of internet users who are influenced by celebrity
marketing

14
 Literature review

IMPACT OF CELEBRITY ENDORSEMENT ON BRAND RECALL; A COMPARATIVE STUDY OF MALE

AND FEMALE CONSUMERS:

 Celebrity endorsement is used as a promotional tool by 25% of marketers.

 Once the consumer perceives the relevant nodes from the brand and celebrity,
matching perceptions produces better results.
 Brand love, brand friendship, and brand association all contribute to the client's
passionate connection.
 When a big name is associated with a brand, the image shapes the image of that brand
in the customer's mind; they think and act like that person. The vast majority of the big
names used these characteristics to build belief and trust in the item being publicized
by the crowd.
 Knowingly, long-term memory psychologies will recall that brand in the consumer's
mind whenever that execution of advertisement came across the consumer.
 In fact, a key memory that corresponds to brand recall is the likelihood that a purchaser
will review a brand name when asked about brands that have a place with an item
classification. The top-of-mind awareness of a brand name is critical because it
influences whether a brand is in a buyer's thought set.

Celebrity Endorsement: A Strategic Promotion Perspective:

 Companies in the United States are estimated to have spent $800 million in 1998 to
acquire talented entertainers, athletes, and other high-profile personalities for use in
advertising, promotion, and public relations campaigns.
 Regarding the concept and use of celebrity endorsement According to Agarwal and
Kamakura (1995), industry sources estimate that approximately 20% of all television
commercials feature famous people.
 They discover that if two celebrities have the same audience variable cost, the firm
prefers the celebrity with the lower fixed cost.
 The perceived expertise and trustworthiness of an endorser determine the
effectiveness of a message.
 The term source attractiveness refers to the endorser's physical approach, personality,
likeability, and similarity to the receiver, and thus to the source's perceived social values
(Solomen, 2002) The honesty and integrity of the spokesperson are referred to as
trustworthiness. The model is based on the assumption that people who excel in one
dimension are also likely to excel in others. However, as Ohanian (1991) demonstrated
in her study, each source has a different effect on consumer brand perception,
necessitating the pursuit of a systematic strategy of celebrity spokesperson selection.

15
  According to Mc Cracker (1989), a celebrity spokesperson will be effective only if there
is clarity in assessing the meanings consumers associate with the endorser, which are
then transferred to the brand.

Effect of Celebrity Endorsement in Advertising Activities by Product Type:

 Celebrity endorsers were appropriate when the products being purchased entailed a
high level of social and psychological risk.
 It was discovered that under high involvement conditions, the quality of arguments
contained in a message has a greater impact on persuasion, whereas under low
involvement conditions, peripheral cues – source attractiveness, credibility – have a
greater impact on persuasion.
 According to social adaptation theory, celebrity source attractiveness influenced
attitudes and purchase intentions.
 Expert celebrities were found to have a higher recall of product information than non-
expert celebrities, but the difference was not statistically significant.
 It was discovered that when the spokesperson is congruent with the brand, advertising
recall, transfer effects from spokesperson to brand, and affect toward the brand are
significantly higher.
 It was discovered that the attractiveness of a spokesperson can influence purchase
intentions, especially when the match-up is low.
 Celebrity expertise and trustworthiness were discovered to be the primary
determinants of informational motivation, while attractiveness was discovered to be
the primary variable driving transformational motivation.

Celebrity Endorsement Advertising: Brand Awareness, Brand Recall, Brand Loyalty as

Antecedence of South African Young Consumers’ Purchase Behaviour:

 Pepsi spent $50 million on an endorsement deal with Beyoncè Knowles, accounting for
one-sixth of the company's total budget.
 Around 20-25 percent of advertisements feature a celebrity as an endorser (Sliburyte,
2009). Advertising has permeated every aspect of our daily lives. Every day, consumers
are bombarded with over 1,500 advertising messages from a variety of sources,
including television, billboards, radio, flyers enclosed with a credit card and utility bills,
mobile phones, the grocery store floor, and even public restrooms (Koernig & Boyd,
2009).
 Companies spend a lot of money to get their brands and themselves aligned with
endorsers (Rawtani, 2010). Such large investments benefit brand managers if they result
in higher brand recall when compared to a similar advertisement featuring an unknown
endorser (Erfgen, Zenker & Sattler, 2015).

16
  Celebrities' celebrity not only serves to create and maintain attention but also to
achieve high recall rates for advertising messages in today's brand-saturated
environments (Rawtani, 2010)
 According to Henle, Reeve, and Pitts (2010), the theory of planned behavior (TPB)
proposes that when individuals have a stronger motivation or intention to engage in a
particular behavior, they are more likely to follow through with that behavior.
 Consumer decision-making is influenced by brand awareness, particularly for low-
involvement packaged goods. Consumers can use brand awareness as a purchase
decision heuristic (Macdonald & Sharp, 2000; Huang & Sarigöllü, 2012). As a result,
brand awareness improves brand market performance.
 Hudders, Cauberghe, Panic, Faseur, and Zimmerman (2012) discovered that the
prominence of a brand affects the extent to which that brand is recalled, regardless of
the respondent's connection to the artist endorsing the brand.

Analytical Study of Association Between Celebrity Advertising and Brand Recall:

 Celebrity advertising appears to be a good way to increase sales in a country like India,
where film stars are revered as gods. Similarly, large segments of the population are
devoted to cricket. As a result, movie stars and cricket players are the most popular
celebrities in India for advertising almost any product. As a result, they can be seen
endorsing everything from underwear to real estate.
 According to Hsu and McDonald (2002), endorser-product fit influences consumers'
perceptions of celebrity credibility, attitudes, recall, recognition, purchase intent, and
willingness to pay higher prices.
 Researchers agree that when an audience perceives a celebrity endorsing a brand as
consistent in performance in his field of expertise, trustworthy, and credible, they are
more likely to believe in both the ad and the brand.
 Because of the large investments made in it, using celebrity endorsers carries a high risk.
Celebrities cannot guarantee success on their own, as consumers nowadays understand
advertising fairly well. Today, people are aware that celebrities are paid a lot of money
for endorsements, leading them to critically analyze celebrity advertisements.
 Choosing the right celebrity who is best suited to the brand he or she is endorsing is a
critical decision for marketers.

Brand Awareness: Does Celebrity Endorsement Help:

 Thus, brand awareness is comprised of brand recognition and recall.

 A brand's name, logo, symbols, packaging, or cues are important aids in brand
recognition.

17
CELEBRITY ENDORSEMENT AS A TOOL OF MAXIMIZING ADVERTISING EFFECTIVENESS
THROUGH ENHANCING BRAND AWARENESS, BRAND RECALL, AND BUILDING BRAND IMAGE -
A CONCEPTUAL REVIEW:

 The primary motivation for hiring celebrities to use in product advertisements is to

transfer the public's perceived positive meaning of a celebrity to the product. This
ensures that a product has meaning for the customer.
 Celebrities help brands break through the advertising clutter and gain recall value
among the public as a result of their association with a well-known personality.
 Celebrity endorsement has been a key aspect of Indian marketing, with close to 50% of
endorsements in India featuring celebrities, compared to around 20% in the United
States. The decade 2010-2020 saw a significant evolution in the Indian endorsement
space, thanks to the increased penetration of digital cable television and the growing
adoption of social media as a marketing tool.
 According to industry sources, the number of celebrity-led endorsements has increased
from 650 ads in 2007 to 1660 ads in 2017, representing a steady compounded annual
growth rate (CAGR) of 10% over the last decade.
 Film stars currently have a 76 percent share of the endorsement market, with
sportspeople coming in second with a 12 percent share. Personal care/hygiene and the
food and beverage industries contributed the most celebrity-led campaigns (33
percent).
 While female endorsers dominate the personal care, jewelry, and banking segments,
male endorsers dominate the e-commerce, auto, real estate, and smartphones
segments.
 According to Duff & Phelps' 2018 Celebrity Brand Valuation Report, the celebrity brand
value of the top 15 endorsers in India has increased by 13% from $691 million in 2017
to $782.2 million in 2018, indicating that product brands have increased their trust in
celebrity endorsers.
 Product brands are also looking for better returns on investment by expanding into
regional markets and have begun producing region-specific commercials starring
regional celebrities.

18
 Research Methodology

The body of practices that regulate the collection of knowledge in a particular field is referred
to as research methodology. The goal of an exploratory research methodology is to gather
information using primary and secondary sources. A structured questionnaire is used to collect
data for primary data and research papers, as well as secondary data such as internet data,
journals, and reports.

Identifying the topic of

research

Literature Study

Deciding the Project title

Secondary research

Understanding the consumer

purchase behavior

Finding the ads which are

famous among youth

Collect data using

questionnaire

Analyze the data

Conclusion

19
SAMPLING TECHNIQUE
Because convenience sampling is a form of non-probability sampling approach in which a
sample is taken from a group of people who are easy to contact or reach, it has been used.

SAMPLE SIZE
Sample size measures the number of individual samples measured or observations used in a
survey or experiment.
The sample size of the study: 102 Respondents

RESEARCH DESIGN
This study endeavour made use of a quantitative research design. Close-ended data, such as
that used to measure attitudes (e.g., rating scales), behaviours (e.g., observation checklists),
and performance instruments, is classified as quantitative data. The statistical analysis of scores
collected on instruments (e.g., questionnaires) or checklists to answer research questions or
test hypotheses is what this form of data analysis entails.

RESEARCH INSTRUMENT
Quantitative methods, in contrast to qualitative research, stress facts, numbers, and frequency.
The responders have the ability to represent the views of the entire population. Quantitative
research is based on mathematics and uses statistical analysis software like SPSS and Microsoft
Excel. A "market research survey" is probably the most popular quantitative technique. It was
also the method used in this study. A questionnaire, a data collection instrument that comprises
several sorts of questions delivered to the respondent to obtain the desired information, is
essential in conducting a survey. A questionnaire was used as the primary data collection tool.
The results of the literature review were used to create this questionnaire (Refer Annexure I
for questionnaire). This survey was crucial in determining the effect of celebrity endorsement
on consumer purchasing decisions. The primary goal of the questionnaires was to gain a sense
of how the participants felt about celebrity endorsements. It assisted us in determining the
relative importance of the numerous attributes that a celebrity would imbue in a client in order
for them to purchase a product.

H01 = Brand Awareness by a celebrity has no impact on purchase behaviour

H11 = Brand Awareness by a celebrity has an impact on purchase behaviour

H02 = Brand Recall by a celebrity has no impact on purchase behaviour

H12 = Brand Recall by a celebrity has an impact on purchase behaviour

H03 = Brand Retention by a celebrity has no impact on purchase behaviour

H13 = Brand Retention by a celebrity has an impact on purchase behaviour

20
 Statistical Inferences

The Chi-square test is intended to test how likely it is that an observed distribution is due to
chance. In this test, if the p value is less than 0.05 then the null hypothesis is rejected and the
alternate hypothesis is accepted.

Brand Awareness on Purchase Intention:

INFERENCE:
H01 = Brand Awareness by a celebrity has no impact on purchase behaviour
H11 = Brand Awareness by a celebritiy has an impact on purchase behaviour
In this case the observed p value is 0.034 which is less than the threshold level of 0.05, thus, we
should accept the alternate hypothesis (H11), which states that “Brand Awareness by
celebrities has an impact on purchase behaviour”.

21
Brand Recall on Purchase Intention:

INFERENCE:
H02 = Brand Recall by a celebrity has no impact on purchase behaviour
H12 = Brand Recall by a celebrity has an impact on purchase behaviour
In this case the observed p value is 0.000 which is less than the threshold level of 0.05, thus, we
should accept the alternate hypothesis (H12), which states that “Brand Recall by celebrities has
an impact on purchase behaviour”.

22
Brand Retention on Purchase Behaviour:

INFERENCE:
H03 = Brand Retention by a celebrity has no impact on purchase behaviour
H13 = Brand Retention by a celebrity has an impact on purchase behaviour
In this case the observed p value is 0.000 which is less than the threshold level of 0.05, thus, we
should accept the alternate hypothesis (H13), which states that “Brand Retention by celebrities
has an impact on purchase behaviour”.

23
The correlation analysis is used in order to investigate if there is any correlation between the
variables, and especially for every independent variable on the dependent variable. The higher
the correlation coefficient, the stronger the correlation between variables. A Pearson
correlation test is performed and is measured on a standard scale with a range of -1 and +1.
According to Cohen a correlation coefficient of 0.10 is perceived as weak, a coefficient of 0.3 is
considered moderate and a coefficient of 0.5 is large (Cohen. J. 1988). All of the correlation
coefficients are significant at the 0.01 level.

Inferences
In examining the relationship between brand awareness, brand recall, brand retention and
purchase behaviour, Pearson correlations were computed in the above table.
 There lies a significant positive correlation relation between brand retention and
purchase behaviour. This shows that brand retention by a celebrity plays a vital role in
purchase behaviour
 There lies a significant positive correlation relation between brand recall and purchase
behaviour. This shows that brand recall by a celebrity also plays a vital role in purchase
behaviour but is second to brand retention
 There also exists a significant positive relation between brand retention and brand
awareness. This shows that brand retention leads to brand recall and vice versa.
 Brand awareness also leads to brand recall and vice versa, but this relation is not as
significant as that between brand recall and brand retention

24
Descriptive statistics of the data, where the central tendency of the data can be measured and
which is of significant importance in knowing the overall nature of data.

 As it can be seen that the mean of brand recall and brand retention are nearly half the
scale. This shows that there is only a 50% probability that a celebrity is able to retain the
brand or is able to recall the brand in customers.
 A celebrity is able to increase the awareness of a brand more significantly than the other
two parameters which are the ones which mostly decide the purchasing behaviour

Brand
Recall
Brand
Awareness

Brand
Retention

Purchase Behavior

Fig. Pictorial Representation of Statistical Inferences

25
 Results and Interpretation

QUANTITATIVE ANALYSIS (ONLINE SURVEY)

DEMOGRAPHIC PROFILE OF THE RESPONDENTS
Demographics is defined as statistical data about the characteristics of a population, such as
the age, gender and income of the people within the population.

A. Age

 Inference: Majority of the respondents are from the age groups 18 to 25 and 25 to 45

B. Gender

 Inference: Majority of the respondents are male

26
 What makes you notice a brand?

This question was given to see the major factors that market the common public notice of a
brand. Quality, pricing, celebrity endorsement, and past buying experience were considered.
Quality was chosen by 44.1 per cent of the 102 respondents, past buying experience was
chosen by the second most respondents, and the remaining respondents chose price and
celebrity endorsement. After evaluating the responses, we've discovered that the majority of
people value quality above all else. If a product is of high quality, it will almost certainly be
purchased by the general population. When it comes to the second most popular element, we
can see that past buying experience has an impact on customers to some level and is also a
factor that motivates people to buy.

Have you ever bought a product only because it is advertised by your favorite celebrity?

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This question was posed to test if individuals buy a product solely because of the person who
advertised it or if they make sensible selections based on the product's other features. Only
40.2 per cent of those polled replied "Yes," while 59.8 per cent of those polled said "No." This
could be due to the fact that the majority of our participants were over the age of 18, and we
feel that as sensible buyers, they understand how and on what basis to choose their products.
People over a certain age are considered to be capable of making decisions based on factors
such as quality and other important variables, rather than solely on the product's advertiser.

Do you purchase most of the products which are endorsed by your favourite celebrities?

This question was asked to know the purchasing behaviour of consumers in celebrity-endorsed
products. According to the research, 62 per cent of consumers doesn’t buy products which are
endorsed by their favourite celebrities. This indicates that people are rational in their thinking
and see a product as something that can’t be of good quality just because it is endorsed by their
favourite celebrity.

Are you of the belief that the actor uses the product as well?

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This question was posed to see if people had the misconception that the actor/celebrity who is
promoting a product actually utilises it. According to the research, 73.5 per cent of consumers
do not believe that the celebrity uses the product, while only 26.5 per cent believe that the
celebrity utilises the product. In this scenario, 26.5 per cent consists of college-aged youngsters
who have this erroneous belief, which leads them to purchase things sold by their favourite
celebrity. The majority of the grownups in this room are aware of the true facts.

When you see a celebrity, do you recall the product he endorsed?

This question was asked to see if people attribute products to celebrities or not. Just by seeing
reminds the of the brand or not. According to the research, 60.8 per cent of the consumers
agree that they recall the brand when they see the celebrity that he endorsed. So, here we can
say that brand recall was somewhat succeeded in celebrity endorsement.

Do you think that the products specifically advertised by celebrities are of good/better
quality?

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This question was posed to have a better understanding of customers' ideas and to determine
if they purchase such things because they believe they are of higher quality than other
products. About 55.7 per cent of people agree with this viewpoint, while the remaining 44.3
per cent doesn’t believe it. As celebrities nowadays are concerned about their image, so they
are endorsing products of good quality and people might be finding it true. So, the public
opinion is slowly increasing in this issue.

Would you withdraw from buying a product if the celebrity endorsing it is involved in a
scandal?

A maximum percentage of the poll participants chose the option that it makes no difference if
the celebrity is involved in a scandal because it has previously been demonstrated that they do
not believe the actor has any personal ties to the brand.

What comes to your mind when you think of the following products?
A. Head & Shoulders

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 Inference: Only 11.8% of the respondents chose the celebrity, this shows that it is a
temporary thing in brand recall or retention.

B. ThumsUp

Inference: Only 29.4% of the respondents chose the actor. It might be more than the Head
& Shoulders advertisement because of its region wise and time to time update in
advertisements. But still, it is less significant compared to other parameters.

C. LUX

Inference: It is seen that only 32.4% of the respondents chose the actress. It might be higher
than the other two advertisements due to the glamour of the actress in the advertisement
and timely updates of it. But, in overall it is less significant.

Overall it is seen that the celebrity is not that significant compared to the other parameters
for consumers while recollecting an advertisement.

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 Which one do you prefer?

Statement 1: Buying a product of a famous brand but did not use your favourite celebrity for
the advertisement (76.5%)
Statement 2: Buying a product with a less famous brand but using your favourite celebrity to
advertise (23.5%).
The goal of this inquiry was to see if people's purchasing decisions are influenced by brand
awareness, brand recall, and brand retention created by the actor or celebrity. According to the
results of the survey, most individuals focus their purchasing decisions on the quality of the
brand and the utility of the goods rather than the advertisement. Furthermore, we have
discovered that, while individuals do not base their purchasing decisions on celebrities, the
attractiveness of a product or the identification of a product is inextricably linked to the
celebrity. A handful of them indicated that when they see a product sold by a well-known
celebrity on a shelf, the colour of the product or the taste instantly comes to mind, linking the
product with the celebrity. Although the final consumption is unaffected by advertising,
product knowledge and awareness are.

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 Conclusion

The analysis above has been able to prove that the purchase behaviour of consumers is affected
by brand awareness, brand recall and brand retention created by a celebrity. The study was
able to find out that purchase behaviour is mostly affected by brand retention and then brand
recall. If the celebrity is able to establish both things in a consumer, then there is a high
probability that the consumer buys the product. But while analysing the further parts, it has
been evident that consumers nowadays are more focused and aware of the product they are
buying. Due to their rational thinking mindset, quality and past buying experience are able to
retain and recall a brand. Here celebrities are not that significant compared to other parameters
while influencing purchase behaviour. And the presently chosen target groups are the most
influenced by celebrity endorsement, but nowadays everyone is literate and is fully aware that
the celebrities are paid for the advertisements. This is somewhat decreasing the significance of
the celebrity in influencing consumers. Further, while thinking about any advertisement,
consumers are recollecting more about the colour, taste and other things rather than the
celebrity.

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 Practical Implications

From the analysis that we have carried out in the project, it is evident that other than celebrity
endorsements, there are other things that need to be taken care of especially while targeting
specific target groups. Hence this study would aid companies in creating advertisements for the
new age people by coming out of the traditional methods, that would focus on things like
content, visual appearance and other things. This would be most helpful for marketing agencies
and with further analysis on product-specific issues, they can produce advertisements which
could reach masses and can increase the sales of a brand.

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 Recommendations for further studies

Due to limited time and resources, this study has not been able to cover all areas and aspects
found interesting, therefore a few suggestions for further research are presented below:
Focus on what other things are more appealing to the masses apart from celebrities, if so, why
are they ranked more than the celebrity endorsement
Analyse how different groups perceive advertisements and what do they get attracted for
Conduct a similar survey for a wider range and include more advertisements
Since celebrity endorsement is a traditional way, with time it needs to change since the literacy
rate is increasing and rational thinking among people has increased. Hence, It is suggested to
analyse various fragments of market based on the products target customers.

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 References

 Langawala, F. and Channar, Z.A., 2011. IMPACT OF CELEBRITY ENDORSEMENT ON

BRAND RECALL; A COMPARATIVE STUDY OF MALE AND FEMALE CONSUMERS. European
Journal of Marketing (Emerald Insight), 45(6), pp.882-909.
 Khatri, P., 2006. Celebrity endorsement: A strategic promotion perspective. Indian
media studies journal, 1(1), pp.25-37.
 Karasiewicz, G. and Kowalczuk, M., 2014. Effect of celebrity endorsement in advertising
activities by product type. International Journal of Management and Economics, 44(1),
pp.74-91.
 Ndlela, T. and Chuchu, T., 2016. Celebrity endorsement Advertising: Brand awareness,
brand recall, brand loyalty as antecedence of South African young consumers' purchase
behaviour. Journal of Economics and Behavioral Studies, 8(2 (J)), pp.79-90.
 Dhotre, M.P. and Bhola, S.S., 2010. Analytical Study of Association Between Celebrity
Advertising and Brand Recall. IUP Journal of Brand Management, 7.
 Ateke, B.W. and Onwujiariri, J.C., 2016. Brand Awareness: Does celebrity endorsement
help. University of Port Harcourt Journal of Accounting and Business, 3(1), pp.246-258
 P. K. Agarwal, K.G. (April 2021). CELEBRITY ENDORSEMENT AS A TOOL OF
MAXIMIZING ADVERTISING EFFECTIVENESS THROUGH ENHANCING BRAND
AWARENESS, BRAND RECALL AND BUILDING BRAND IMAGE - A CONCEPTUAL REVIEW.
Wesleyan Journal of Research, Vol.14 No.12, 252-278.

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Annexure-I

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