VINOD GUPTA SCHOOL OF MANAGEMENT

IIT KHARAGPUR

AMRP
“DOES CELEBRITY
ENDORSEMENT
INFLUENCE THE
DECISION-MAKING
WHILE PURCHASING,
SPECIFICALLY AMONG
THE AGE GROUP 18-45?”

BOORA RAVI TEJA

21BM63125
GUIDE: PROF. PRABINA RAJIB
 QUICK FACTS

Celebrity endorsed ads rose 44% in 2021 Price varies from Approx. 10Lakh to 5 Cr +

Film stars together added more than 80% Steady compounded annual growth rate
share of advertising during 2021 (CAGR) of 10% in the past decade

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 LITERATURE REVIEW

 Once the consumer perceives the relevant nodes from the brand and celebrity, matching perceptions produces
better results
 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
 The perceived expertise and trustworthiness of an endorser determine the effectiveness of a message

 Companies spend a lot of money to get their brands and themselves aligned with endorsers. Such large
investments benefit brand managers if they result in higher brand recall when compared to a similar
advertisement featuring an unknown endorser
 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

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 THEORETICAL UNDERPINNINGS

Elaborative Likelihood Model (ELM):

 People process information in either the central or peripheral route,
depending on their level of elaboration or cognitive effort
 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 approach to attitude change has resulted in research and
understanding of the nature of persuasion
 This approach primarily focuses on who said what to whom

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 RESEARCH METHODOLOGY

Finding the ads

Identifying the Collect data using
which are famous
topic of research questionnaire
among youth

Understanding the
Literature Study consumer purchase Analyze the data
behavior

Deciding the
Secondary research Conclusion
Project title

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 HYPOTHESIS FRAMING

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

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

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

Retention

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

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

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

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 STATISTICAL INFERENCES

Brand Awareness by celebrities has

an impact on purchase behaviour
Brand Recall by celebrities has an
impact on purchase behaviour

Brand Retention by celebrities has

an impact on purchase behaviour
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 STATISTICAL INFERENCES

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 recall. 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

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 DESCRIPTIVE STATISTICS

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 that mostly decide
the purchasing behaviour

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 DEMOGRAPHIC PROFILE OF THE RESPONDENTS

A. Age

B. Gender

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DESCRIPTIVE ANALYSIS

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DESCRIPTIVE ANALYSIS

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DESCRIPTIVE ANALYSIS

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 RESULTS & KEY FINDINGS
purchase Further, it has been
behaviour of evident that celebrities are not
consumers is consumers that significant
affected by brand nowadays are compared to other
awareness, brand more focused and parameters while
recall and brand aware of the influencing
retention created product they are purchase
by a celebrity buying behaviour

purchase Due to their while thinking

behaviour is rational thinking about any
mostly affected by mindset, quality advertisement,
brand retention and past buying consumers are
and then brand experience are able recollecting more
recall to retain and recall about the colour,
a brand taste and other
things rather than
the celebrity
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 PRACTICAL IMPLICATIONS & FURTHER STUDIES
Practical Implications
 Would aid companies in creating advertisements for the new age people by coming out of the traditional
methods
 Would let them focus more on things like content, visual appearance, and other things

 Would be most helpful for marketing agencies and with further analysis on product-specific issues

Further Studies
 Focus on what other things are more appealing to the masses apart from celebrities

 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

 It is suggested to analyse various fragments of market-based on the product’s target customers

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 LEARNING OUTCOMES
Learnt about framing
questions while doing
market survey for further
research

Learnt about the

purchasing behaviour Learnt about
of people and how can hypothesis framing for
the results be useful for further analysis of data
industries through and its importance
research

Learnt about selecting Learnt to intertwine

various statistical various data arrays to
models for retrieving obtain meaningful
desired outcomes results
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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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