Consumer Behaviour

CELEBRITY ENDORSEMENT AFFECTING CONSUMERS ATTITUDE TOWARD THE ADVERTISEMENT AND PURCHASE INTENTION
DISSERTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MARSTER IN BUSINESS ADMINISTRATION SUBMITTED BY BHANU PRATAP SINGH (107/MBA/105054)
UNDER THE SUPERVISION OF
DR. Srabanti Mukherjee
DEPARTMENT OF MBA DAY Indian Institute of Social Welfare and Business Management "Management House
CONTENTS
[Bhanu Pratap Singh - IISWBM] Page 1
Certificate Acknowledgement Preface CHAPTER ONE: INTRODUCTION 1.1 Consumer Behavior 1.2 Buying Behavior 1.3 Decision Process 1.4 Advertising 1.5 Celebrity Endorsement 1.6 Successful Endorsements/ Endorsers 1.7 Forms of Celebrity Endorsements 1.8 Perspectives to Endorsement 1.9 Risks Involved in Celebrity Endorsement 1.10 Methods to Reduce Risk in Celebrity Endorsement
CHAPTER TWO: LITERATURE REVIEW CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Need of the study 3.2 Objectives of the study 3.3 Research Methodology 3.4 Managerial Implications 3.5 Limitations CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION CHAPTER FIVE: CONCLUSION Bibliography Annexure
Chapter One INTRODUCTION

A challenge faced by companies is how to influence the purchasing behavior of consumers through celebrity endorsement. For more than fifty years the advertising industry has been using celebrity endorsement, Marilyn Monroe and Marlne Dietrich are famous examples (Iddiols, 2002). Research has shown that the use of celebrities in advertisements can have a positive influence on the credibility, message and finally recall, on memory and likeability (Menon, of the advertisements purchase intentions 2001;
Pornpitakpan, 2003; Pringle and Binet, 2005; Roy, 2006). Today no doubt inspired by the declining effectiveness of the different marketing communications (Blond and Roozen, 2006) - the advertising industry is willing to pay the increasing rewards the celebrities are asking (the costs of the spot with Nicole Kidman for Channel V amount to 7.5 million Euro; David Beckham for Adidas $160 million; Gilette $68 million and Pepsi $25.5 million; Tiger Woods for Nikes golf advertisements $18 million). The crescendo of celebrities endorsing brands has been steadily increasing over the past years. Marketers overtly acknowledge the power of celebrities in influencing consumerpurchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement can bestow special attributes upon a product that it may have lacked otherwise. But everything is not hunky-dory; celebrities are after all mere mortals made of flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also exacerbate the image of a brand. Any brand can get a celebrity. That is easy. But getting a celebrity matching with the right brand, to the right degree, at the right time, for the right purpose and in the right way... that is not easy. The health of a brand can definitely be improved up to some extent by celebrity endorsement. But one has to remember that endorsing a celebrity is a means to an end and not an end in itself. 1.1 CONSUMER BEHAVIOR
It can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of product and services so as to satisfy their needs and desires. Company's success in influencing purchase behavior depends in large part on how well they understand consumer behavior. Companies need to know the specific need customers are attempting to satisfy and how they translate into purchase criteria. They need to understand how customers make purchase decision. 1.2 BUYING BEHAVIOR Consumer decision-making varies with the type of buying decision they make. Companies need to understand how customers make purchase decisions. The decision to buy toothpaste, a tennis racquet, a personal computer and a new car are al]-different. Complex and big-ticket item products are likely to take more time as compared to impulse product. Consumer buying behavior depends upon the degree of differences along the brands. 1. Complex Buying Behavior: Consumers engage in complex buying behavior when they are highly involved in purchase and are aware of significant differences among brands. This is usually the case when the product is expensive, bought in frequently, risky and highly self-expressive. Typically the consumer does not know much about the product category and has much to learn. For example person buying a personal computer knows what attributes he is looking for. Consumer buying behavior involves a three-step process. First, the buyer develops beliefs about the product. Second, he/she develops attitudes about the product. Third, he/she makes a thoughtful purchase choice. 2. Dissonance: Reducing Buyer Behavior: Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the facet that the purchase is expensive, infrequent and risky. In this case the buyer will shop around to learn what is available but fail quickly, perhaps responding primarily to good price or to purchase convenience. For example carpet buying is a high-involvement decision because carpeting is expensive and self-expressive yet the buyer may consider most carpet in a given price range to be the same. After the purchase, the consumer might experience dissonance that stems from noticing certain dissatisfying
features of the carpet or hearing favorable thing about other carpets. The consumer will be alert to information that justifies his/her decision. 3. Habitual Buying Behavior: Many products are bought under conditions of low consumer involvement and in the absence of significant brand differences. Consider salt, consumer has little involvement in this product category. They go to the store and reach for the brand. If they keep reaching for the same brand it is out of habit not out of strong brand loyalty. There is good evidence that consumers have low involvement with most low cost, frequently purchased products. With low involvement products, consumer behavior does not pass through the normal belief, attitude and behavior sequence. Consumers do not search extensively about the brands. 4. Variety -Seeking Buying Behavior: Some buying situations are characterized by low consumer involvement but significant brand differences. The consumers often do a lot of brand switching. Think about cookies, consumers have some beliefs about cookies; they choose a brand of cookies without much evaluation, while the evaluation about the product is made during consumption. Next time the consumer may reach for another brand out of boredom or for a different taste. Brand switching occurs for the sake of variety rather than out of dissatisfaction. 1.3 DECISION PROCESS Smart companies always research the buying decision involved in the product category. They ask the consumers their consumers that how they make their brand choices and how satisfied they are at purchase. The consumer passes through five stages as following: Problem Recognition. Information Search. Evaluation Alternative. Purchase Decision. Post Purchase Behavior.
Clearly the buying process starts long before the actual purchase and has consequences afterwards. The model implies that consumer passes sequentially through five stages in buying a product. But this is not the case, especially with low involvement purchase. Consumer may skip or reverse some stages. Thus women buying her regular brand of
toothpaste go directly from the need for toothpaste to the purchase decision, skipping information search and evaluation. But a consumer interested in buying laptop will pass through all the stages stated above. 1.4 ADVERTISING Half the money I spend on advertising is wasted; the trouble is, I don't know which half" John Wanamaker. father of modern advertising. Advertising is an important social phenomenon which both stimulates consumption and economic activity and models lifestyles and a- certain value orientation. Consumers are confronted with substantial daily doses of advertising in multimedia. Every one seems to hold an opinion about various aspects of advertising ranging from amusement and admiration to cynism and condemnation. On one hand advertising is appreciated enough to be the subject of TV talk shows and comedy skits, to have reels of award winning commercial play in theatres to have its art and slogans to worn proudly on clothing and to hear advertising phrases become the idiom of everyday speech. On the other hand, consumers fear covert manipulation and subliminal techniques and often complain about advertising clutter, banality, sexism, predation of children and continuing proliferation into newer media and venues. Advertising is defined according to Kotler as:"any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor". The paid aspect of the definition means that space -or tome for an advertising message must be bought, while the non-personal aspect means that advertising involves mass media such as TV, radio, magazines, newspapers and billboards that can transmit a message to a large number of individuals often at the same time. Advertising is the best-known form of promotion because it can be a very cost-effective method of communicating with large audiences and it can be used to create brand images, enabling the seller to repeat a message many times. Also it is quite pervasive (Belch and Belch, 2001). Advertising plays a critical role in capitalist economies in creating demand for industrial output. Thus, advertising clients are predominantly profit-seeking corporations. In 1997, in the U.S. alone, over $175 billion USD was spent on advertising. Non-profits are not typical advertising clients, and rely upon free channels, such as public service announcements. While
advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance of users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. One scholar has argued that advertising is a toxic by-product of industrial society which may bring about the end of life on earth. Main features of advertising are: It can be very cost -effective method for communicating with large audience. Advertising can be used to create brand image and symbolic appeals for a company or a brand, a very important capability for companies selling products and services that are difficult to differentiate on functional attributes.
Advertising is ability to strike a responsive chord with the consumer when differentiation across other elements of marketing mix is difficult to achieve. The nature and purpose of advertising differ from one industry to another and/or across situations. The targets of organisations advertising efforts often vary, as do advertising's role and function in the marketing program. One advertiser may seek to generate immediate response or action from the customer; another may want to develop awareness or a positive image for its product or services over a period of time.
1.4.1 Advertising Objectives Advertising objectives can be classified according to whether their aim is to inform, persuade or remind. These advertising objectives are of three types: l. Informative Advertising: This type of advertising is basically in the pioneering stages of the product category. Its objective is to build primary demand. For example, the yoghurt industry initially had to confirm consumers of yoghurt's nutritional benefits. E.g. telling the market about a new product or suggesting new uses for a product. 2. Persuasive Advertising:
This type of advertising is used in the competitive stage. Here the objective is to build selective demand of a particular brand. For example, Chivas Regal attempts to persuade its customers that it provides better taste and status than other brands of scotch whiskey. E.g. telling the market about a new product or suggesting new uses for a product. 3. Reminder Advertising: This type of advertising is important for mature products i.e. the products that have an established market already. The objective of advertising here is to remind people to purchase a particular brand. For example, expensive four colour ads of Coca Cola in magazines are intended to remind people to purchase Coca Cola, Another example: reminding customers of the product should it be needed in the near future. Volkswagen often reminds consumers of the reliability of their product. Now the 5M's of advertising are: Mission- What is the advertising objective? Money-How much amount could be spent? Message-What message would it convey? Media-What media should be used? Measurement-How are the results going to be evaluated?
1.4.2 Advertising and Consumer Behavior Through researches various models have come up that describe the various facts of consumer behavior. These models suggest how the consumers behave in response to a particular marketing communication and why do they behave so. The market researchers tried to understand the response process and the manner in which these communications work (especially advertising). There are three critical intermediate effects between advertising and the desired effect of advertising (purchases) these include cognition, the thinking dimensions of a person's response: affect the feeling dimension; and experience which is a feedback dimension based on the outcomes of product purchasing and usage. They conclude that individual responses to advertising are mediated by factors such as motivation and ability to process information, which can radically alter the individual's response to advertising. It is suggested that the effects of advertising should be evaluated using these dimensions, with some intermediate variables more important than other depending factors such as product
category, stage of the product life cycle, target audience, competition and the impact on other marketing-mix components. 1.4.3 Application of the reference group concept Some advertisers to communicate with their markets use Reference group appeals very effectively. People or group situations with a target audience are used to promote goods and services by subtly inducing the prospective consumer to identify with the pictured user of the product or service. This identification may be based on admiration (an athlete), on aspiration (a celebrity or way of life), on empathy (with a person or a situation), or on recognition (a person real or stereotypical or of a situation). Five major types of reference group appeals are: Celebrity Appeals. Expert Appeals. Common Man Appeals. Executive Appeals. Trade or Spokes-character Appeals.
These appeals as well as less frequently employed appeals are often pperationalized in the form of testimonials or endorsements. In the case of common man they may be presented as slice-of-life commercials. Celebrities particularly movie stars, TV personalities, popular entertainers, sports icons provide a very common type of reference group appeal. Reference group appeals to the loyal followers and too much of the general public, celebrities represent an idealization of life that most people imagine they would love to live. Advertisers spend enormous sums of money to have celebrities promote their products, with the expectation that the reading or viewing audience will react positively to the celebrities association with the product. Those advertisements featuring celebrities are rated more positively. This is especially true among teenagers, who are more likely to project the celebrities' credibility to the advertising message and the endorsed product. 1.5 CELEBRITY ENDORSEMENT Celebrity endorsements pull in hundreds of crores every year, and are widely preferred by companies to promote their products. Using celebrities for endorsing brands has become a
trend for building the brands as well as the company's image. Who are these celebrities? And what does celebrity endorsement mean? A celebrity is a person who is well recognized by the public, and has a reputation for his/her expertise in his/her chosen silos. Sports persons and film stars fit the bill perfectly. Promotion of a company's products through these celebrities is termed as celebrity endorsement. The company makes use of the celebrity's characteristics and qualities to establish an analogy with the products specialties with an aim to position them in the minds of the target consumers. Celebrity endorsement, thus, is one of the powerful tools adopted by companies/companies to consolidate their brand(s) in the crowded marketplace. Consumers prefer to own a brand that has a good reputation, and when someone like a famous film star or a sport star is associated with that particular brand, it is obvious that the consumers will get attracted to it, because the consumer wants to maintain some status, and feels that using a brand promoted by a star can satisfy that longing.
Celebrity Endorsement in India Phase 1: The Pioneering Phase (1950-1980)

This phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations some bigger companies from their global experience introduced the concept of celebrity endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties.
Phase 2: The Growth Phase (1980-1990)

The introduction of television added a variable effective medium of communication. Indian stars going global with events like Asiads and World Cup victory. Vimal, Thums-Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).
Phase 3: Globalisation
In highly competitive markets, the following realities about brand management exist: 1. Product differentiating factors are duplicable and imitable. 2. All long existing and successful brands imbue their products with a meaning.
1.5.1 Why Celebrities?

There is a myth that celebrity endorsement is used to give a brand advantage over its competitors. However, choosing a celebrity for this purpose requires considerable amount of calculations. There should be something common between the brand and the celebrity promoting it. Let us come to the main question as to why companies use celebrities to promote their brands. Is there a real need to associate a celebrity with the product? Yes seems to be the resounding answer. This is because a company needs to create awareness and interest in the consumers mind when it unveils a new brand or product. To be successful, brands need to convince consumers that they carry a different image and value from other competing products. In other words, brands have to show their true personality to the potential consumer(s). An effective way to do this is through celebrity endorsements. As MG Parmeswaran, executive director of FCB Ulka says, "As advertising professionals, we recommend celebrity endorsements when the case is justified. There are many cases where you need to use the celebrity to break out of a category clutter. At times, celebrity endorsement is used to build credibility to the brand offer." People always wish to see their favorite stars and companies, and advertisers are quick to capitalize on such ideas. Endorsement of a product/service by a celebrity gives out the message that it is as authentic and credible as the celebrity is. The urge that people have of enjoying the same recognition and status like their favorite stars is often the main reason for the increasing use of celebrities for products/services endorsement. Celebrities increase brand awareness and define values and new dimensions of the brand. Companies use this approach to capture mind and market spaces for their brands. The underlying reason for any celebrity endorsement has to be more sales, with more consumers using the brand. The more effective the process is in raking up more and more moolah, the more successful the celebrity is that is the bottom line. There is a flurry of ads on the television, the radio, and even in theatres these days, and most of these ads feature either film stars or cricketers, or both. As a result, it is becoming increasingly tough to ensure that one's share of voice is heard. Using a celebrity in an ad is, therefore, doubly effective, in that it captures a definite mind share of the prospective consumer, and if the features and attributes of the brand match with those of the celebrity, the brand will surely hit gold. Rahul Dravid is considered the most dependable batsman in the Indian team, and he transfers this characteristic of reliability and dependability to the brand(s) he endorses. The reason why Castrol uses Dravid to promote its engine oil seems to be
logical, as the company wants to convey to the target customers that Castrol is dependable, and gives the vehicle a long life. 1.5.2 History of Celebrity Endorsement Since radio became commercial in the late 20s and from the first flickering of TV screens in the late 40s, celebrities have done commercials. The advent of celebrity endorsements in advertising in India began when Hindi film and TV stars as well as sportspersons began encroaching on a territory that was, until then, the exclusive domain of models. One of the first sports endorsements in India was when Farokh Engineer became the first Indian cricketer to model for Bryl cream. The Indian cricket team now earns roughly Rs. 100 cr. through endorsements. There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure Cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings). 1.5.3 Is it smart to use Celebrity Endorsements? Stars, who are known to shape destinies, cast an enormous influence. No, we're not talking about astrology here. We're referring to the powerful effect of celebrities on destinies of brands. One approving nod from a famous face can translate into millions in brand sales. Perhaps that's why the world over, companies have been using stars to endorse everything, from food to food chains, from soft and hard drinks to health drinks, from clothes and accessories to cars (and the tyres on which they run). Even political parties are awestruck by the charisma of stars. Such is the magnetism of celebrities in this country that in the recent general elections, major political parties fielded a record number of film stars and cricketers to contest from important constituencies around the country. Celebrity endorsements are very expensive. Therefore their use in an ad should be justified. In other words, the message strategy for a brand should strongly warrant the use a known face in an idea. Sadly, very often the celebrity is hired first and an idea is then weaved around his or her presence.
A celebrity's presence in the ad should be contextual. When cricket player Sachin Tendulkar declares, "Boost is the secret of my energy," it doesn't seem out of context. Internationally, Nike's association with Michael Jordan is legendary and also logical. Celebrity endorsements work best when the celebrity is not introducing the brand. When the product already has a strong identity and a USP that is well established, then a celebrity can come in and give the brand an added fillip and generate some more interest value. However, what is of paramount importance is to find a complete fit between the values of the brand and the values of the celebrity. One needs to create a unique situation or story that links the celebrity to the product. Celebrity Endorsements as a strategy signing up stars for endorsements is a time-tested strategy and has been effectively used by some of the top brands in the world including Nike and Pepsi, In India too, HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties. Vimal, Thrums Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. And who can forget Kapil 'Palmolive' Dev? Star endorsements have several benefits, key among them being building credibility, fostering trust and drawing attention... any or all of which can translate into higher brand sales. So how does one decide whether to put a celebrity in an ad? Ideally, this should be dictated by the communication idea. Celebrity endorsements should be used when the case is justified. There are many cases where you need to use the celebrity to break out of a category clutter. At times celebrity endorsement is used to build credibility to the brand offer. Most experts concur that, when used judiciously, celebrity endorsements can be an effective strategy. And there are many examples of good and bad use of celebrities. Actor Amitabh Bachchan, who has been used by some companies like Parker Pens and ICICI Home Loans remarkably well while some others have been unable to exploit his Big B status too well. Shah Rukh Khan's endorsement of Hyundai Santro too seems to have worked well. In a test of the match up hypothesis, Kamins (1990) demonstrated that the positive impact of a celebrity endorser depends in part on proper fit between the celebrity and the product. Some evidence even suggests that Wall Street values the use of celebrity endorsers - Agrawal and Kamakura's (1995) analysis of stock price movements showed that press releases announcing celebrity endorsement contracts resulted, on average, in a .44% excess return (Journal of Advertising, July 1997). Yet, there are some who don't have much conviction in star
endorsements. Some people think that to be really successful, a brand needs to have a strong identity of its own. It should ideally not piggyback on the identity of a celebrity and hope to achieve success. Celebrity endorsements are capable of manifesting both favorable and adverse effects for the brands with which they associate. 1.5.4 Six uses of Celebrity Endorsements
Establishes Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience- this is especially true in case of new products. The role of a celebrity endorser in an advertising campaign is, without doubt, linked to the reputation of the celebrity. If the reputation is damaged, more often than not for reasons other than professional ,then the quality of his reputation does suffer articulacy if it is to do with his (or her) public behavior. Example: Dyna ad by Katrina Kaif
Attracts Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable.
Example: Shahrukh khan in pespi, Hrithik Roshan in Sony Erricson
Associative Benefit: A celebrity's preference for a brand gives out a persuasive message - because the celebrity is benefiting from the brand, the consumer will also benefit.
Example: Amitabh Bachchan in Dabur Chwyanprash.
Psychographic Connect: Stars are loved and adored by their fans and advertisers use stars to capitalize on these feelings to sway the fans towards their brand
Example: Dhoni in Aircell
Demographic Connect: Different stars appeal differently to various demographic segments (age, gender, class, geography etc.). Example: Amitabh Bachchan with child in Dadur Honey, Sunny Deol in Lux cozi ad.
Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. Example:
Bhawa. Sharukh khan And Amitabh Bachchan in Polio Promotion, Amir Khan in Atithi Devo
1.5.5 Mechanism and Theories of Celebrity Endorsement
Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited by showing him a known face, and an effective demand is created. In short it helps increase the recall value of the brand. A piece of research states that the target audience age group of 15-30 gets influenced first by cricketers, then Bollywood stars and only then music, festivals and food. According to Source Credibility Theory, acceptance of the message depends on 'Bxpertness' and Trustworthiness' of the source. Expertness is defined as the perceived ability of the source to make valid assertions. Trustworthiness is defined as the perceived -willingness of the source to make valid assertions. Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product. According to Source Attractiveness Theory, which is based on social psychological research, the acceptance of the message depends on familiarity, likeability and similarity, familiarity is the audience's knowledge of the source through exposure; likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. This theory explains the message acceptance in two ways: Identification and Conditioning. Identification is when the receiver or the target audience of the communication begins to identity with the source's attractiveness, and hence tends to accept his opinions, beliefs, habits, attitudes etc. On identification, a quote from Bijou Kurien, COO, Titan, "We decided on Aamir because we wanted someone who is a bit iconic, who is style-conscious himself, and somebody who cuts across both sex and age group, between urban and rural India. A celebrity is one who is moldable and who is not over-exposed". Conditioning is when the attractiveness of the source is supposed to pass on to the brand after regular association of the source with the brand. Grant McCracken has criticized the previous two theories and proposed the Meaning Transfer Theory, The theory explains that a celebrity encodes a unique set of meanings which if well used can be transferred to the endorsed product. Such a transfer takes place in three stages - encoding meanings, meaning transfer, meaning capture (Figure 1).
I.
Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of meanings in their image. For example Preity Zinta can be seen as a lively, charming, bubbly, witty and enthusiastic.
II. Meaning Transfer: This stage transfers those meanings to the product. When
skillfully portrayed, celebrities can communicate this image more powerfully than lay endorsers.
III. Meaning Capture: This assumes that consumers purchase products not merely for
their functional value but also for their cultural and symbolic value. The theory says that consumers buy the endorsed product with the intention of capturing some of the desirable meanings with which celebrities have passed on to the product. This is more eminent in lifestyle products like clothes, perfumes, cell phones etc. Does celebrity endorsement really work? Theoretically yes, because the qualities associated with the endorser are associated with the brand and the brand therefore remains at the top of the consumer's mind. However one needs to realize that the impact of an endorser cannot be sustainable in all product categories and in all the stages of brand life cycles. It really depends upon the type of product. If it is a 'functional brand', then the product itself is the hero. Here any celebrity association with the brand without corresponding performance of the product will not be sustainable. While increase of' image brands', like the categories of soaps, soft drinks, cigarettes etc., where it is difficult to distinguish between the products, celebrity endorsements help to distinguish between the brands at an emotional level. A research conducted by Synovate, a global market research firm, revealed that 47% people would be more likely to buy a brand that was endorsed by their favorite celebrity. Pepsi Co. has used a variety of celebrities including Aishwarya Rai, Hrithik Roshan, Amitabh Bachchan, Kareena Kapoor, Rahul Khanna, Fardeen Khan, Sachin Tendulkar etc. Amongst advertisements featuring celebrities, Pepsi tops the heap with the highest recall of 70%, while archrival Coke is lower across all markets with 52% recall. This proves that Pepsi has really exploited the use of celebrities in their advertisements and has worked. Hindustan Lever's 'Lux' soap in India has been using popular film actresses to endorse the soap since its launch four decades ago implying that they owe their stunning looks to the brand. This consistent message hence reinforces the brand values and has been successfully able to position the soap rightly as the 'beauty soap". It would be difficult to judge the direct effect of celebrity endorsement on the sales or profits of the company. On Amitabh Bachchan endorsing RIN, an HLL spokesperson says that it was too early to gauge the success of 'Rin1 in terms of sales and that though Dabur healthcare
products' sales had improved, the increase could not be solely attributed to him. Similarly, there are also cases wherein there was a dramatic change in the sales figure after the endorsements. For example Rahul Malhotra, Associate Director Marketing, P&G India quotes "Certainly, it has helped us promote our brand 'Head & Shoulders'. Last year, we were ranked as No. 2 and this year we are market leaders in this segment with over 45% market share". D. Garg, Vice-President (Marketing), Dabur India Ltd quotes, "A celebrity does help in increasing brand sales, but only if he/she is selected carefully and used effectively. The personality of the brand and the celebrity have to complement each other and the selection of the celebrity is, therefore, very important."
1.5.6 SCOPE OF CELEBRITY ENDORSEMENT: The use of testimonials by advertisers dates back to the 19th century when medicines were patented. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g., athletes, actors) in the hope that celebrities may boost effectiveness of their marketing. The increasing number of endorsements throws a valid question to the consumers. Is there a science behind the choice of these endorsers or is it just by the popularity measurement? What are the reasons which lead to impact of celebrity endorsement on brands? The success of a brand through celebrity endorsement is a cumulative of the following 14 attributes. Greater the score of the below parameters, greater are the chances of getting close to the desired impact.
Figure: 1
1.5.7 Positive Impacts of Celebrity Endorsement on the Brand Approval of a brand by a star fosters a sense of trust for that brand among the target audience. This is especially true in case of new product. Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand more noticeable. A celebrity's preference for a brand gives out a persuasive message and hence,
because the celebrity is benefiting from the brand, the consumer will also benefit. There is a demographic and psycho graphic connection between the stars and their fans. Demographic connection establishes that different stars appeal differently to various demographic segments i.e. age, gender, class, geography etc., while psycho graphic connection establishes that stars are loved and adored by their fans. Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. Another invaluable benefit from celebrity endorsements is the public relation opportunities. Dwane Hal Dean studied the effects of three extrinsic advertisement cues viz. third party endorsement, event sponsorship and brand popularity on brand / manufacturer evaluation. It was observed that endorsement significantly affected only product variables (quality and uniqueness) and one image variable (esteem). The third party endorsement hence may be perceived as a signal of product quality. Goldsmith et al. assessed the impact of endorser and corporate credibility on attitude-toward the-ad, attiiude-toward-the-brand, and purchase intentions. 152 adult consumers were surveyed who viewed a fictitious advertisement for Mobil Oil Company. They rated the credibility of the ad's endorser, the credibility of the company, and attitude-toward-the-ad (Aad), attitude-to ward-the-brand (AB), and purchase intentions. It was observed that endorser credibility had its strongest impact on Aad while corporate credibility had its strongest impact on AB. The findings suggest that corporate credibility plays an important role in consumers' reactions to advertisements and brands, independent of the equally important role of endorser credibility. Looking at the effect of celebrity endorsement on the wealth of a company a classic example of Michael Jordan can be used. At the time of rumors of Michael Jordan returning to NBA in 1995, he was endorsing products of General Mills (Wheaties), McDonalds (Quarter Pounders, Value Meals). Nike (Air Jordan) and Quaker Oats (Gatorade). Study conducted by Mathur et al. associated with Jordan's endorsements shows that the anticipation of Jordan's return to NBA. And the related increased visibility for him resulted in increase in the market adjusted values of his client firms of almost 2 percent, or more than $1 bn in stock market value. From this study one can observe that the major celebrity endorser with rumors or otherwise has a tremendous potential to influence the profitability of endorsed products.
Semi-partial endorsement indicates that when a company uses famous characters from any TV soaps for brand endorsements, consumers tend to relate to the character that he or she plays in the soap and hence can attract more credibility. For example, Smriti Irani who plays Tulsi' in a famous soap has garnered a lot of support from the middle-class housewife today. If she would endorse a brand, there would be more relativity and credibility. It can be said about Priya Tendulkar who used to play the character of Rajani. 1.5.8 Negative impacts of Celebrity Endorsement on the brand More often talked about is the extreme usage of a celebrity called 'lazy advertising', that is inadequate content masked by usage of a celebrity. A good example is the use of Boris Becker by Siyaram and Steve Waugh by ANP Sanmar. Also as said earlier, associating with a star, in itself does not guarantee sales. There is also the fear of Brand-celebrity disconnect which points out that if the celebrity used represents values that conflict with the brand values, the advertising would create conflict in the minds of the target audience. Clutter in brand endorsements is very prominent these days and such kind of over-exposure can be bad for the brand as the recall value drops by a huge margin. A popular drawback of celebrity endorsement is the 'Vampire Effect' or the celebrity overshadowing the brand. Some viewers forget the brand that a celebrity is approving. Others are so spellbound by the personality of the celebrity that they completely fail to notice the brand being advertised. Two new drawbacks can be seen these days what companies call Celebrity Trap and Celebrity Credibility. Celebrity trap is when the celebrity becomes an addiction for the marketing team and the task to find substitutes becomes more and more difficult, leading to surfeit of celebrities. Celebrity credibility refers to skepticism by the consumers regarding the celebrities, especially when there is anything negative regarding the celebrity associated with the brand in the news, then brand is bound to be affected. For example, Air Jordan's generated revenue sales of $130 million in the first year. The sales dropped miserably in the second year when Jordan missed 62 games due to a broken foot. Another main worry of the advertisers is that their celebrity endorser would get caught in a scandal or an embarrassing situation. Multiple product endorsement also has a negative impact on customers' purchasing intentions. Tripp et al. investigated the effects of multiple product endorsement by celebrities on customers' attitudes and intentions. They found that the number of products a celebrity endorses negatively influences consumer perception of the endorser and the advertising itself.
It was suggested that when as many as four products are endorsed, celebrity credibility and likeability, as well as attitude towards the ad, may attenuate. Superstar Amitabh Bachchan endorses multiple brands like Pepsi, Mirinda, ICICI, BPL, Parker pens, Nerolac, Dabur, Reid & Taylor, Maruti Versa, Hajmola, Tide, Cadbury and a few social messages. It has worked in some cases, while in some cases it has not. D. K. Jain, Chairman and President, Luxor Writing Instruments Pvt. Ltd, the company of the Parker brand said. "Using Amitabh Bachchan as our brand ambassador has helped in strengthening our brand image and recall within the target audience". Tarun Joshi, Communications Custodian, Reid & Taylor said, "Amitabh Bachchan is an icon with universal appeal and has helped us to reach out to the real 'Bharat.' In fact, agents and retailers have told us that already customers have started asking about the 'Amitabh wali suiting.1" Increase of Nerolac Paints, which was endorsed by Amitabh Bachchan, around 80% of the respondents when asked to associate Bachchan with any paint, did so with Asian Paints, which is the biggest competitor of Nerolac. The budget or cost is an important factor for celebrity endorsement. Depending on the status of the celebrity, remuneration could run into millions of rupees for several years or may also include a profit sharing plan. For example when S. Kumar's used Hrithik Roshan for their launch advertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media due to the sheer impact of using Hrithik. Sachin's endorsements got him $18 million over five years. When Aamir first endorsed Pepsi in 1995, he received Rs 17 lakh for it; his Coke commercials in 1999 got him Rs 2 crore. Hrithik Roshan in his highflying days reportedly made over Rs. 20 crore in endorsements and events by 2001. However, a number of brands have been built without celebrity endorsement. For some of their brands, Hindustan Lever and Procter & Gamble do not believe in celebrity endorsement because they think that consumers, especially housewives, are more likely to identify with a layperson on screen than a celebrity. Procter & Gamble launched its 'Rejoice' brand in India with testimonials from ordinary women in their TV advertising. Few more examples of this will be Lifebuoy, Wheel, Dettol, Close Up, and Fevicol etc. 1.5.9 Choosing the Right Celebrity
Amitabh Bachchan, Shahrukh Khan, Hrithik Roshan, Sachin Tendulkar, and Sourav Ganguly figure among a handful of celebrities who have been endorsing brands. Companies have gone a step further to localize their endorsements, so as to have a stronger impact by roping in the regional stars, who command a good following among the local consumers. It is, nevertheless, high time companies rethink their strategies of using celebrities for endorsing their brands, as this trend is fast becoming a clich, what with every other promotion featuring one or another, and the trick losing its charm. The question is whether the celebrity can spread his/her values over such a wide portfolio of brands that are endorsed, and what kind of impression would the consumer have for the endorsed brand? The other aspect which sees companies fork out huge (sometimes astronomical) sums of money for getting their products endorsed by celebrities has to be looked at from the return on investment point of view, and also the marketing angle, which preaches uniqueness and differentiability of the products. Can celebrities make brands reach the heights the companies aspire for? It is difficult to answer this question. Celebrities can build brands, and at the same time, companies may have to fold up if the endorsement does not click with the target audience. Companies need to be careful before choosing a celebrity for endorsing their brand, as they spend huge amounts on their brands and also on the celebrity. The use of a celebrity should help in building the brand's image. The pros and cons of using a particular celebrity have to be considered before using them for endorsements; and credibility of the celebrity is often one of the basic factors in determining his/her suitability for the endorsement. Companies have to check if there exists a match between the brand and the celebrity, and whether the deal is worth the investment. There are some basic criteria for selecting the right kind of celebrity for a brand. They are: The celebrity's image has to fit with the advertising idea and match the target audience and the product; values, popularity, credibility and the availability of the celebrity; cost of acquiring the celebrity; previous endorsement (if any), and the celebrity's profession. There should be a synergy between the celebrity, the ad message and the product. This helps in the customers developing an interest towards the brand. According to Ramesh J Thomas, principal executive officer, Equitor Management Consulting, "The greatest danger is that because celebrities already carry a strong brand character, a mismatch could be counterproductive to the brand. It is very tempting to be carried away by the short-term exposure and interest that an endorsement could generate". As
all brands cannot make it big in the consumers mind through celebrity endorsements of their products, the use of the celebrities for endorsements has to be justified. The brand can only fare well in the market if it can generate some bonding or relationship with the endorser. If this fails, the consumer may get confused, and that could hamper the future prospects of the brand. Experts opine that companies have to be careful in choosing the right celebrity for promoting their brands, which could otherwise land them in trouble.
1.6 SUCCESSFUL ENDORSEMENTS/ ENDORSERS Celebrity endorsements have found good acceptance among the customers as an effective way of promoting brands. In a survey, it was found that in 20% of TV ads in the US feature celebrities, most of them from the sports arena, and these are done to gain ground in the consumers' minds with their interest for sports and sport stars. Nike has benefited from using Michael Jordon, the famous basketball player by getting him endorse its shoes. Things have worked Nike's way, as basketball is a highly popular sport in the US and when someone like Michael Jordan says he uses Nike; it indeed creates a huge impact on the minds of the consumers. Nike has, in a way, justified its use of Jordan through the profits it made. David Beckham, the soccer player from the UK, is an icon both as a footballer and as an individual. His gaming skills, stylish looks and lifestyle, have got him good recognition and a great fan following all over the world. When it comes to endorsements, analysts consider Beckham next only to Michael Jordan. He has been associated with quite a few brands like Pepsi, Vodafone, Adidas, Gillette, Police, Brylcream, etc. His lifetime deal with Adidas alone earns him $160 mn, with many of his other endorsements being successful. Tiger Woods, the top golfer, has been associated with Nike and Accenture3. The first 5-year deal he signed with Nike was worth $40 mn, and the company later extended that. According to an estimate by Forbes magazine, Tiger Woods had made as much as $78 mn between June 2002 and June 2003, of which a meager $7 mn (9% of total) was from his tournaments. In the Indian context also, there have been quite a few examples of brands, which have been successful after being endorsed by famous personalities. The trend kicked off with movie and
television stars being used for the endorsements. HLL has been using film actresses to endorse its beauty soap Lux. Amitabh Bachchan has been endorsing many brands for quite some time now. Companies have been in a mad rush to include Bachchan in their promotions to attract customers, because of the following and respect the senior and talented star carries. It is a sort of belief for every company and company that he can endorse any brand or any product and that the association will win customer attention. This kind of reputation has often led companies to spend huge amounts on signing film stars. Shahrukh khan also has been in the endorsing business, and his endorsements include Pepsi, Hyundai Santro and Videocon to name a few. In India, cricket is followed like a religion and has, thus, turned to be a breeding ground for stars that can be used by companies. Companies have been very quick in identifying this, and started using cricket stars to endorse their brands/products. Kapil Dev, the great Indian cricketer and "Wisdom Indian Cricketer of the Century", used to endorse Palmolive and Boost during his tenure in the Indian cricket team. Now, the list of cricketers endorsing brands will be a long one. The best and most widely regarded of them has to be Sachin Tendulkar, also referred to as the little master, who carries a nation's hope on his shoulders in every game that he plays. Tendulkar has been associated with nearly a dozen brands, and companies have been paying him some hundreds of crores of rupees to vouch for their brands. The little master has given his charismatic touch to brands like MRP, Pepsi, Boost, TVS, Airtel, etc. 1.7 Forms of Celebrity Endorsements A celebrity can endorse brands in different ways based on the purpose, the advertisement media and the appeal to be generated. The product could be commercial ones or noncommercial ones (social advertising). Following types of endorsement forms have been identified to be heavily in use at present:
As spokesperson, e.g. Amitabh Bachchan in KBC. In print and electronic advertisements, e.g. Shah Rukh Khan in Omega and Pepsi. In outdoor media like hoarding, e.g. Aishwarya Rai in Lux advertisement in some parts of North India. As brand ambassadors: e.g. Fardeen Khan in Provogue The use of Brands by celebrities in movies: e.g. Hero Cycles, Pass Pass and Coke in Yaadein.
1.7.1 Factors to choose endorser Companies must consider many factors when choosing a celebrity to serve as an advertising spokesperson for the company or a particular brand. Studies have shown that advertising and marketing managers take these various factors into account when choosing a particular celebrity endorser. Figure: 2
These most important factors are: Celebrities match with the target audience and the product or brand. The overall image of the celebrity. Cost of acquiring the celebrity. Trustworthiness. Risk of controversy. Celebrity's familiarity and likeability among the target audience.
Advertisers often draw attention to the ads featuring a physically attractive person who serves as a passive or decorative model rather than as an active communicator. This is most common with the cosmetic industries. Research suggests that physically attractive communicators generally have a positive impact and generate a more favorable evaluation of both ads and products than the less attractive models. For example, Revlon use super-model Cindy Crawford in advertising for various cosmetic products. Advertisers must ensure that the consumer's attention should go beyond the model to the product and advertising message. Companies must also consider whether this might negatively impact advertising impact.
1.8
PERSPECTIVES TO ENDORSEMENT
Perspective to celebrity endorsement can be studied under the following heads: 1.8.1 Company's Perspective to Endorsement

A celebrity helps short hand a brand; in other words makes a brand stand out. Celebrities facilitate instant awareness and immediate attention. Celebrity values define and refresh the brand image and a celebrity adds dimension to it. A celebrity adds new dimension to the brand image. A celebrity lends instant credibility or aspiration to the brand. Celebrities save time in creating the credibility a company has to build into the brands. PR coverage is another reason for using a celebrity. Managers perceive celebrities as topical, which creates high PR coverage. Indeed, celebrity-company marriages are covered by most media, from television to newspapers.
Gestalt Perception means using a celebrity as a remedy. When a person is famous people forget about what he looks like. As everyone knows the face, it is hard to judge whether the person is pretty or ugly. The celebrity is a remedy to managers who run out of ideas.
1.8.2 Celebrity's perspective to endorsement: The first reason that most celebrities would endorse a product for is the huge compensation involved with it. Second reason why celebrities wish to endorse is to get an enhanced level of acknowledgement based on the success of the product they are associated with. KBC and Movers and shakers helped stabilize the fast declining career of their hosts by providing strong audience recognition. Finally, endorsement breeds endorsement. Not only does the subject end up getting better offers but the avenues in related and unrelated fields also open up. Most of the cricketers for example have already been made to walk the ramp and a lot of models have already made their way into movies.
Many American celebrities make huge sums of money endorsing products. Some big stars won't appear in ads because they want fans to .think they have sold out. But many celebrities who don't endorse in their native country endorse for the Japanese advertisers. Mega stars like Meg Ryan, Brad Pitt, Demi Moore and Harrison Ford are paid in between Shnn to $3mn for a few hours' work to make 15 to 30 sec commercials. While many celebrities are cashing on these Japanese deals, they still try to protect their image at home, for which they have nondisclosure contracts. The reasons why Japanese companies are willing to shell out huge sums of money for these stars are as follows: The American culture and its celebrities fascinate many Japanese. Japanese advertising emphasizes style and mood rather than substance. Consumers expect to be entertained. It boosts the endorsers' visibility and helps the marketing of their firms in Japan and other Asian countries. 1.8.3 Consumer's perspective to endorsement
Messages delivered by well-known celebrities achieve a high degree of attention and recall for consumers. Celebrity Expertise perceived relevant image. Expertise is the knowledge that the communicator seems to possess to support the claims made in the advertisements. A well-known face would obviously speak for more expertise than an ordinary one. For example, Sachin Tendulkar would always better advertise Reebok.
Celebrities are perceived Trustworthy. Trustworthiness refers to the consumer's confidence in the source for providing information in an objective and honest manner. People are more likely to trust the quality of a trustworthy celebrity endorsed brand over a non-endorsed one. Ambitious psyche. People ape the celebrities in their day-to-day activities and many even dreams to become like a celebrity some day. Some know they wouldn't become as good as the celebrities but sharing common belongings makes them feel better.
Physical Attraction. Consumers tend to perform positive stereotypes about such people. Physically attractive people are more successful in changing beliefs than nonattractive people.
But the personalities that the companies use for endorsing its product may not always be "good guys". Sometimes some companies try to go off the traditional path and use the "bad
boys" for endorsement. This is mostly prevalent with the athletic-shoe companies who are hiring the personalities engaged in misdeeds off the court or field. The earliest used "bad boys" was former basketball star Charles Barkley to appear in the ad of Nike in the mid-90s. Another basketball player Dennis Rodman was also used to endorse Nike. These were also known for their rebellious nature. But what are the reasons behind these off the route endorsements? There may be one explanation for this. These companies are targeting young trend setting males who often identify themselves with the scandalous and rebellious image of these "bad boys". Through this the companies try to reach the actual mindset of these types of audiences, thus being close to reality. In the current athletic shoe market, it appears that the "bad boys" are boosting up the consumers more than the "good guys". 1.9 Risks involved in celebrity endorsement There are not only benefits when it comes to celebrity endorsement; there are several risks involved for companies that use celebrity endorsers. There are a number of risks that a company takes into account when deciding to use a celebrity to endorse a brand. These are as follow:
The overshadowing of product: According to Belch and Belch (2001) overshadowing is a risk that companies must be aware of when using celebrity endorser in marketing campaigns. According to Till (1998) this often occur when companies try to establish a link between a celebrity and company when the endorser are already sponsoring several other brands. The overshadowing effect will result in that the consumer just sees the celebrity instead of the product. Since the endorsers that Sknemejerier is using as said before dont do any other major sponsorship they dont see this as a threat. The consumers might focus their attention to the celebrity only and do not notice the product. So the company must use the celebrity who enhances the brand image and also conveys the message to the target audience.
Overexposure: According to Tripp et al (1994) overexposure and overuse is an important risk to consider when using celebrity endorsers. There is a risk that consumers do not see the connection between the brand and endorser if he or she is endorsing too many products. Ronny Mnsson says that when it comes to Sknemejeriers use of celebrity endorsers for Proviva Active they do not see any risks concerning overexposure and overuse. Since the celebrities they are using are not endorsing other brands that could interfere with the image they are trying to establish between themselves and Proviva Active. And when the endorser is not endorsing any other products there is neither any risk for overuse of the celebrity. Consumers are
sometimes skeptical of the celebrities because they think they are paid for endorsing. This problem is prevalent when a celebrity endorses too many brands. So the company must take care that the endorser is not overexposed. For instance Amitabh Bachchan is endorsing too many brands. This may prove to be the risk of overexposure.
Negative celebrity information: According to Till and Shimp (1998) there is a risk that the celebrity endorser can receive negative information and publicity which can be transferred to the brand through the endorser. Sknemejerier fits into theory and agrees that this is a risk they are aware of. The main risk is that one of their endorser would use some illegal drugs to enhance their performance. They do not see any other risk when it comes to negative information because they feel that their endorsers live a healthy life and wont do anything to risk that.
Investment risk: Walker et al (1992) says that celebrity endorsement is huge financial risk for companies due to the fact that companies dont have control over the behavioural of the endorsers and therefore companies may invest money in something that can be a huge set down for their company. Till (1998) agrees with Walker et al (1992) and says that it is important to see how many products the celebrities are endorsing. Sknemejerier has in their marketing budget a specific post for their investments in celebrity endorsement and they now that if they invest a given amount of money to hire a celebrity endorser they now that it will cost them up to the double amount to actually launch a marketing campaign with the endorser. Ronny Mnsson says that there is larger risk to use a famous athlete but they are still willing to take this risk because they want to transfer the image of their celebrities to their brand. Therefore Sknemejerier fits into theory regarding investment risks.
Extinction: According to Ziegel (1983) there are many celebrities that disappear from the media flashlight during their contract with a company. This is something that companies should be aware of and think about when using celebrity endorsers. When dealing with extinction we can see that Sknemejerier fits into theory. This is a risk that Sknemejerier is aware of and says that there are chances that their endorser may do weak performances when they are competing and therefore they will not be in the media flashlight. Ronny Mnsson also say that the season for athletes is fairly short so
they are not interesting for the media all year round which is a negative side of the endorsement. There are also chances that the endorser might injure himself, which makes him disappear from the media circus for a long time, because if they dont compete they wont be shown in the media. A celebrity behavior may also pose a risk to the company if the celebrity gets involved in controversies e.g. when Salman Khan got involved into a hit and run case his endorsement contract with Thumbs Up was cancelled. To avoid these problems, companies, prior to using a celebrity, researches his or her personal life and background. Many endorsement contracts include a morals clause where the company indicates the termination of the contract if the celebrity gets involved in any controversy, which may harm the company's image. 1.10 Methods to reduce risk in celebrity endorsement This section deals with theories concerning how using models to match celebrities to products and services can prevent risks within celebrity endorsement.
Reducing risk According to Tellis (1998) there are several ways in which companies can ensure against some surprises that can occur when using celebrity endorsers. Companies should start with a properly screening of candidates to ensure that they are buying the right image, and that the risk with the celebrity contract is worth the potential risk for damage. Companies can also set up contracts that have a moral clause. A moral clause is a legal statement that gives companies the option to terminate a contract with a partial fee or no fee at all. These clauses often state that if the celebrity becomes involved in any situation or occurrence, which in the companys reasonable opinion, subjects Talent or Company to ridicule, contempt or scandal (ibid.).
Managing celebrity endorsers According to Till (1998) companies must establish a link between the endorser and the brand or product. When an associative link is built between the celebrity and the brand each is then part of the other association set, a group of concepts, which are meaningfully related to a target brand. One good example of this is consumers thinking of Michael Jordan when thinking about Nike and consumer thinking about Nike when thinking of Michael Jordan. Repeated pairing of the two stimuli is a key to associative learning process, because repeated repetition of the pairing of two stimuli increases confidence that the presence of one stimulus predicts the presence of the other stimulus. Within a celebrity endorser context, repeated pairings of the endorser, increases consumers recognition that the brand is a good predictor of the presence of the celebrity, strengthening the link between the brand and the celebrity (Ibid.).According to Till (1998) companies often use a celebrity endorser sporadically or opportunistically either at the whim of the client or the agency. Payback on the investment in celebrity endorsement comes from using the celebrity regularly over time. Such repetition both strengthens the associative link for those consumers already aware of the of the celebrity endorsement as well increase the pool of consumers who begin to become aware of the link between the brand and the celebrity. If companies dont use the chosen celebrity consistently it will weaken the benefit from using the endorser (ibid.).
The source attractiveness model The source attractiveness is a model that has been explained by several authors through the years. The source attractiveness model posits that the acceptance of a message depends on the attractiveness of the source, which in turn depends on three central attributes: familiarity, likeability, and similarity. Familiarity is the audiences knowledge of the source because of prior exposure to it. Likeability is the audiences positive regard for the source because of its physical appearance and behaviour and similarity is the resemblance between the source and the receiver. The higher a source rates on each of these attributes, the more acceptable and attractive it will be. There are two explanations to how attractiveness affects the message acceptance:
Identification and conditioning. Identification means that the receiver off the message begins to see himself or herself as similar to the source because of the latters attractiveness. Because of that the receiver becomes willing to accept the opinions, beliefs, attitudes or behaviour of the source. Conditioning means that the endorser is an unconditioned stimulus, and the brand or product would be the conditioned stimulus. When the endorser is repeatedly associated with the brand, the attractiveness of the endorser is supposed to pass to the brand (Tellis, 1998; Kamins et al, 2001; Kahle and Homer, 1985). Match up
According to Till (1998) to create an effective endorsement between a celebrity and a brand it is important that there is brandcelebrity congruency when it comes to facilitate the development of an associative link. When there is a perceived fit between the brand and celebrity, there is a greater probability of building an associative link. Because a poor fit between celebrity and brand is suggested the primary cause of failed celebrity endorsement. The greater the perceived fit between the celebrity and the brand the more quickly the associated link between the two can be expected to develop. The choice of celebrity should fit with the association the brand either currently has or plausible could have. When the choice of celebrity fits current associations, then the celebrity serves to reinforce existing associations. If the associations/image of the celebrity fit the desired associations that the brand could plausibly have, then the celebrity serves to create association for the brand. However there is not only important that the celebrity has a fit towards the brand and image, companies must also consider that the celebrity has a fit towards the target audience. It is important that the associations the company believes the celebrity has are associations that the brands target audience actually has of the celebrity. Different groups of people may have different associations for any given celebrity. It is therefore necessary, to test the possible use of any celebrity with the brands target group to ensure that the image/associations the celebrity has in the minds of the target audience are meaningful, positive and consistent with the companys expectations (Till, 1998). Overshadowing
According to Till (1998) the way to decrease the chances of overshadowing the advertising executions should be single-minded in communicating the brand-celebrity pairing. The brand and the celebrity should be the two strongest elements in the ad. Ad executions which are cluttered with superfluous executional devices, distract from the brand celebrity pairing is weakening the potency of the celebrity endorser. The like hood of forming an associative link between the celebrity and the brand increases when there are few other competing elements in the advertisement (ibid.). Overexposure
According to Till (1998), when celebrities are endorsing several products blocking can occur which refers to the reluctance of a favourable stimulus (celebrity endorser) to form a strong link with another stimulus when the favourable stimulus (celebrity endorser) already has a strong association with a previous stimulus. When a celebrity already is strongly associated with a brand they will not form associative links with other brands. Therefore companies should avoid using celebrities that are already endorsing several other brands to which they have a strong connection (ibid.). Extinction
To reduce the risk of extinction companies should expand their use of celebrity endorsement. Because it is unrealistic to expect that every time a consumer encounters a brand the celebrity endorser image also will be present. Therefore companies should work to get endorsers more integrated into the marketing mix. Although most commonly used in advertising, celebrity endorsers can be effective in promotion activities, such as giving away related items or trips, which tie into the celebrity. The celebrity could also be used at large trade shows, national sales meetings and other significant publicity events (Till, 1998 Ziegel 1983). Financial risk
Companies must decide how cost effective their choice of celebrity is. The celebrity with the highest potential is often also the most expensive one. Companies should therefore look for a lesser-known person that fits into the message of the brand and appeals to the target audience (Tellis, 1998). Q-ratings
According to Miciak and Shanklin (1994) it is important that consumers sees the celebrity as person with credibility and attractiveness and that the celebrity is an effective media person. For celebrity to be credible, consumers must perceive them to be trustworthy and have the expertise to speak about a product or service. The reasoning is that the more credible and attractive a celebrity is the more persuasive he or she will be as endorser. Therefore companies are starting to use the Q- value to estimate how good their brand is together with a specific celebrity endorser. According to Shimp (1997) to find out how effective an endorser might be questionnaires are sent out to individuals that are asked to answer two simple questions: Have you heard of this person? The second question is: If you have, do you rate him or her; poor, fair, good, very good or one of your favourites? The Q rating is then calculated by dividing the percentage of the total sample rating the celebrity as one of your favourites by the percentage of sample who knows the celebrity (Shimp, 1997). A celebrity may not be widely recognised but he or she can still attain a high Q rating as individuals who do recognise the celebrity also likes the celebrity. On the other hand a celebrity may be widely recognised but still have low Q rating since the respondents may not like them. The Q rating answers the question of popularity among those familiar with him or her (ibid.). According to Rossiter and Percy (1987) Q ratings are a good way for companies to avoid hiring big celebrities that arent popular among their target audience. This also makes Q ratings a good method to filter celebrities for a company (ibid.). The possible discrepancies in the present system of endorsement could be as follows: Owing to unavailability of dates, long-term contracts have to be signed whereas the life of the celebrity may not always be long term. The celebrities start becoming bigger than the brand.
The celebrity is at best company chosen but never customer chosen. The celebrity may begin to lose value due to inappropriate choice of endorsed product or failure of product.
Chapter two Review of Literature

2.1 Celebrity Endorser The term celebrity refers to an individual who is known to the public (actor figure, entertainer, etc.) for his or her achievements the areas other than that of the product class endorsed (Friedman and Friedman, 1979). According to McCracken's (1989) definition, a celebrity endorser is an individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (marketing communication). Celebrities, live and in person, get most folks' pulses pounding, their palms sweating, their minds racing to calculate whether it would be cool or gauche to approach them, to mention the obvious fact that we recognize them, that we know far more about them than they know about us, and that this makes them seem infinitely superior to us (Ferris 2004). 2.2 Impact of Celebrity Endorsement Several studies have examined consumers response to celebrity
endorsements in advertising. Findings show that celebrities make advertisements believable and enhance message recall (Friedman and Friedman, 1979). Ultimately celebrity endorsers are believed to generate a greater likelihood of customers choosing the endorsed brands (Kahle and Homer, 1985). Thus, the use of celebrity endorsements is an advertising strategy that should enhance the marginal value of advertisement expenditures and create brand equity by means of the secondary association of a celebrity with a brand (Keller, 1993). Celebrity endorsers have been found to be more effective in promoting products with high psychological and/or social risk than products with high financial and performance risks (Mehulkumar, 2005). In most celebrity
endorsement research, the products which were investigated were classified in different product categories 1998, 2000), or unknown brands (Atkin and Block 1983; Kamins et al. 1989). In (Kamins, 1990; Ohanian, 1990, Walker et al. 1992), fictitious brands practice, celebrity endorsement is used for existing brands, which means that it can influence the brand image. A celebrity endorser used in an advertisement can be interpreted as a reference group. Shiffman and Kanuk (2006) define reference group as any person or group of persons that serves as a point of comparison for an individual by communicating values, attitudes and providing a specific guide for behavior. An aspiration group is a derivative of the reference group: in this case, the consumer does not belong to the group but is willing to be associated with it. To become 'associated' with this group, consumers are willing to behave like members of the aspiration group. This means that consumers are trying to behave in the same manner, e.g. try to use the same symbolic meanings of the aspiration group. This means that a celebrity endorser can be interpreted as the 'personality' of the reference group. The reference group 'rich and famous', which often correspond with the way the celebrities live, is frequently indicated as an aspiration group of which consumers like to be part (De Pelsmacker et al., 2004). Erdogen (1999) says when global campaigns are organized celebrities who are appropriate for a global target audience are used. General celebrity endorsement influences the feelings of the consumers and can also influence the attitude consumers have towards the advertisement and attitude towards the brands, which can increase the purchase intentions and, consequently, increase sales. Potential advantages of utilizing celebrity endorsers are that it can increase attention, polish the image of the brand, especially when a brand will be introduced in the market or are positioning of a brand will take place (De Pelsmacker, 2004).
Companies invest large sums of money to align their brands and themselves with celebrity endorsers. Research has shown that because of
the fame of celebrities, they do not only create and maintain attention of the consumers but they also achieve high message recall (Ohanian, 1991; O'Mahony and Meenaghan, 1997). However, companies have limited control over the celebrity's persona which can also result in high risk and no gain situations (e.g. the scandals surrounding celebrities like Michael Jackson, Kate Moss, Britney Spears, and Paris Hilton). As a result, companies build characters (using people who are not celebrities) which are congruent with their brands and target-audiences, and ensure hat these characters is endorsing only one particular product. Tom et al. (1992) found that created endorsers were more effective in creating a link to the product than celebrity endorsers. Agrawal and Kamakura (1995) assess the impact of celebrity endorsement contracts on the expected profitability of a firm by using event study methodology. Their approach assumes that the announcement of a celebrity endorsement contract, usually widely publicized in the business press, is used as information by market analysts to evaluate potential profitability of endorsement expenditures, thereby affecting the firms expected return. The result of analysis of 110 announcements of celebrity endorsement contracts showed on average the impact of these announcements on return is positive and suggest that celebrity endorsement contracts are generally viewed as a worthwhile investment in advertising. The primary interpersonal privilege of celebrity is attention. Celebrities matter to the rest of us, even if we would have no interest in them were they not celebrities. The most mundane experiences of celebrities' lives attract attention, not just by fans but also by anyone who happens to recognize their fame. Players on a successful college basketball team, for instance, develop a "glorified self" through the attention that they receive on and off campus. Without this attention, they would just be everyday college students, only taller (Adler and Adler 1989). A study of students' relationships with celebrities found that ordinary people "seek out further information about celebrities' lives for vicarious pleasure" (Leets et al. 1995). All this attention and information turns celebrities into "intimate strangers" (Schickel 1985), persons with whom we have unilateral "parasocial" relationships (Giles, 2000; Horton and Wohl, 1956). A neurological study found that celebrities both their image and their printed name trigger dedicated fast-access memory cells in the brain, at least among a sample of eight
epileptics in Los Angeles who had sensors implanted in their brains to track seizures (Quian Quiroga et al. 2005). In The Relative Effectiveness of Celebrity Endorsement for Beauty, High- and Low Involvement Product Print Advertisements, Irene Roozen (YEAR) professor in University of Antwerp, Brussels states two research projects. In the first research project, the matches between the products concerned and a number of celebrities were analyzed. In the second research project advertisements with the best and worst product-celebrity matches, respectively, are compared with advertisements with a picture of an anonymous person and advertisements without a celebrity or picture. The research results do not indicate that celebrity endorsement is effective. This result was also found for the advertisements with the endorsement of celebrities who were found to match best with the products at hand. These results, therefore, suggest that the considerable amounts invested in celebrity endorsement could better be allocated to other advertisement ends. By analyzing the influence of celebrity endorsement on the brands and or products shown in the advertisements, it is important to make a classification between high and low involvement of the advertisement. The Elaboration Likelihood theory (Petty et al. 1981) shows that attitudes change through different routes. Under conditions of high involvement, where elaboration is likely, the attitude change travels trough a 'central route' in which a person exercises 'diligent' consideration of information that (s)he feels is central to the true merits of a particular attitudinal position. For low involvement, low elaboration likelihood, the attitude change travels through a 'peripheral route' in which various simple cues associated with the issue, object, or context exert optimal influence. This means that under conditions of high involvement, arguments but not celebrities influence attitudes, whereas under conditions of low involvement, celebrities but not arguments influence attitudes. However, Kahle and Homer (1985) have shown that the involvement effect is sensitive to variation and that the physical attractiveness of a celebrity affects the attitude change process. A psychically of physically attractive model exudes sensuality, can increase arousal which can affect information processing. For example, in the case of a stunningly attractive
person who claims to use a beauty product the product in question may be assumed to be an element of the persons beauty formula. Information concerning attractiveness is conveyed more quickly than other information, even if it is not highly probative .The categorization of products into low and high involvement is based on the risk perceptions consumers have when purchasing products (which is significantly higher for high involvement products). Risk perceptions can be classified into four categories (Friedman and Friedman, 1979): (1) Psychological risk: the fit between product image and self image, (2) Financial risk: associated with the price of the brands/products, (3) Social risk: fear of not belonging or not taking part to/in a reference group as a result of purchasing the 'wrong' product/brand, (4) Operational risk: risk of buying a product that does not operate the way it should do. Another study by Dean (1999) tested the effects of three advertising cues- third- party product endorsements, brand popularity and event sponsorship to affect the consumer perceptions with regards to product quality, uniqueness, manufacturer esteem and corporate citizenship. Mehta (1994) has found that there were no significant differences for the concepts attitudes towards the advertisement, attitude towards the brand and intentions to purchase endorsed brands between celebrity and non-celebrity endorsement its advertisements. When confronted endorsers with non celebrity endorsers, consumers were significantly more focused on the brand and features, whereas with celebrity the subjects were significantly more concentrated on the celebrity in the advertisement. However, Atkin and Block (1983) and Petty et al. (1983) have found the opposite results of Mehta (1994). 2.3 Models to analyze Celebrity Endorsement Two general models are often used to analyze celebrity endorsement: the source credibility model and the source attractiveness model. Furthermore, a description of the endorsed brands and the match between the celebrity and the product is presented. 2.3.1 Source Credibility Model Source credibility is used to imply a communicator's positive characteristics to affect the receiver's acceptance of a message. The
source credibility model of Hovland et al. (1953) analyses the factors leading to the perceived credibility of the communicator. Hovland et al. (1953) concluded that the two factors trustworthiness and expertise underscore the concept of source credibility. Trustworthiness is defined as the degree of confidence in the communicator's intent to communicate the assertions he considers most valid. Research shows that when a communicator is perceived to be highly trustworthy, an opinionated message is more effective than a non-opinionated communication in producing attitude change (Ohanion, 1990). Expertise is defined as the extent to which a communicator is perceived to be a source of valid assertions (Hovland, et al. 1953). Already in the early eighties, research results haveindicated that in a selling context, an expert salesperson induced a significantly higher number of customers to purchase than did a non-expert salesperson (Woodside and Davenport, 1974). 2.3.2 Source Attractiveness Model The source attractiveness model is a component of the 'source valence' model presented by McGuire (1985). The attractiveness model contends that the effectiveness of a message depends on source's 'familiarity', 'likeability', 'similarity' and 'attractiveness' to the respondent. Attractiveness has become an important factor through the increasing use of celebrities as endorsers for products, services and/ or social causes (Patzer, 1983; Ohanion, 1990). Most television and print ads use physically attractive people. Already in the eighties, research has shown that psychically attractive communicators are more successful in changing beliefs than unattractive communicators (Chaiken, 1979). 2.4 Match between celebrity and brand / product Research has shown that not only the classification of the product, source credibility and source attractiveness can influence the effectiveness of the celebrity endorser but also the match between the brand and or product with the celebrity. There should be congruence between the celebrity and the product in terms of characteristics such as image, expertise (Till and Busler, 1998; 2000) or attractiveness (Baker and Churchill, 1977; Kahle
and Homer, 1985). The celebrity-product match model states that attractive endorsers are more effective when promoting products used to enhance one's attractiveness (Kamins, 1990) and that the impact will be not significant in the case of a product that is unrelated to attractiveness. Kahle and Homer (1985) found that in the case of attractiveness related products the use of physically attractive celebrities increased message recall; product attributes, and purchase intention. In 1998, Till and Busler have examined attractiveness versus expertise as a match-up factor and found a general attractiveness effect on brand attitude and purchase intention but no match-up effect was found based on attractiveness. They proposed that expertise is more appropriate for matching products with celebrity endorsers than attractiveness. Walker et al. (1992) concluded that meanings and images are transferred from the celebrity endorsers to the product. McCracken (1989) has addressed the endorsement process from a cultural perspective. According to meaning transfer model, the symbolic properties of the celebrity endorser serve the endorsement process by taking on the meanings that then carry from ad to ad. The source models (attractive and credibility) do not explain why a celebrity fails as an endorser for one brand while being successful for another brand. McCracken (1986) explains cultural meanings as something inherent and resident in the culturally constituted, psychical, and social world and then move through a conventional path to individual consumers where it is transferred through the efforts of the consumer. This model conveys the celebrity is a persuasive communicator with a set of fictional roles and when consumers respond to celebrity specific characteristics they are responding to the particular set of meanings of the celebrity. The effectiveness of the celebrity depends upon the meanings the celebrity brings to the endorsement process. He also suggests that the role of the celebrity is not only being attractive or credible but also the celebrity has to make up certain meanings the consumer finds compelling and useful.
Figure 1: The Meaning Transfer Model

Source: McCracken, 1989. In the initial stage of this model, the meanings generated through political campaigns, athletic achievements and performances and/or distant movie performances, reside in celebrities themselves. In the second stage, meanings are transferred to the product through advertisement and the endorsement process. In the last stage, the meanings are transferred from the product to the consumer where the properties of the product become the properties of the consumer.
Sandhir Sharma, professor at Punjab College of Technical Education, Ludhania carried out a survey in Ludhiana, taking sample size of 100 viewers. The study contained the sample size of 100, all the people of the age of 18 years and above. The demographic profile of the respondent included 23 Businessmen, 35 service class people, 30 students, 6 professionals, 4 housewives and 2 retired persons. Out of 100 respondents, 56 were males and 44 were females. The results showed that 54% of the respondents feel that celebrities cast an impact through
the advertisements while 46% do not feel any impact of celebrities. Out of 54 respondents, 42 feel that celebrities attract attention towards an ad, 15 of them feel that they arouse interest in the product. 12 respondents are of the view that celebrities build a desire to have the product and only 6 respondents only feel that celebrities initiate an action to buy that product. The study also revealed that majority of the respondents i.e. 63% get attracted more towards Film Stars than any other celebrity. Majority of the respondents felt they would continue buying same goods from the market irrespective of the act of advertising the same product through any specific celebrity. The study found that very few respondents (37%) have bought product(s) under the influence of any celebrity which means that a consumer wants something more in an advertisement than a celebrity to be influenced enough to buy the product. Celebrity endorsement is always a two-edged sword and it has a number of positives if properly matched it can do wonders for the company, and if not it may produce a bad image of the company and its brand. Mukherjee (2009) has evaluated associated factors that contribute to the success or failure of the endorsement. Celebrity endorsement has been established as one of the most popular tools of advertising in recent time. It has become a trend and perceived as a winning formula for product marketing and brand building. It is easy to choose a celebrity but it is tough to establish a strong association between the product and the endorser. While the magnitude of the impact of celebrity endorsement remains under the purview of gray spectacles, this paper is an effort to analyze the Impact of celebrity endorsements on brands. The study aimed at examining the relationship between celebrity endorsements and brands, and the impact of celebrity endorsement on consumer's buying behaviour as well as how consumer makes brand preferences. The author proposes a 20 point model which can be used as blue-print criteria and can be used by brand managers for selecting celebrities and capitalizing the celebrity resource through 360 degree brand communication which, which he considers the foundation of the impact of celebrity endorsement. The major factors that are having maximum impacts of successful endorsement are a) Consistency and long-term commitment, b)
Prerequisites to selecting celebrities, c) Celebritybrand match, d) Constant monitoring, e) Selecting unique endorsers, f) Timing, g) Myopic endorsement strategy, h) Brand over endorser i) Celebrity endorsement is just a channel, j) Over dependency on celebrity, k) The celebrity trap, l) Trademark and legal contracts, m) Overall Management, n) Investment, o) The Brand endorsement team, p) Feel Cultural Sensitivity and q) Celebrity ROI.
Chapter Three
RESEARCH METHODOLOGY
3.1 Need for Study The organizations are using the celebrity endorsers for promoting their products. They choose a person a face who may best- fit with the image of their product and brand as well. At the same time, there is need to know the perceptions of the viewers and consumers. This helps in estimating the impact of particular celebrity endorser on the consumer buying behavior and final purchase decision. The importance of appropriate celebrity endorser for the brand or product resulted in the need for the study. 3.2 Objectives of the study This study had the following objectives1. To study the significance of celebrity endorsement. 2. To analyze the use and effectiveness of celebrity endorsers. 3. To measure the effectiveness, attractiveness and credibility of certain celebrities. 4. To study the various dimensions of celebrity endorsers.
5. To establish a relationship between consumer behaviour and celebrity endorsement.
6. To view the companies and endorsers perspectives towards celebrity.
3.3 Research Methodology 3.3.1 Data Collection Two kinds of data which has been gathered and used for carrying out this research are 1. Secondary Data 2. Primary Data Secondary Data has been gathered to gain better understanding of the topic. It has been collected from journals, magazines, text books and online resources. Primary Data has been collected through a questionnaire.
3.3.2 Research Design The research is descriptive in nature. It is based on survey technique. 3.3.3 Sampling Technique Respondents were selected randomly. They have been categorized in three categories: 18- 24, 25- 34 and 35 or above. Data has been collected from various age groups so that view of general public could be obtained. 3.3.4 Sampling Unit The sampling unit consists of graduate students of different departments of Aligarh Muslim University, Aligarh. The Faculty of Management Studies and Research, Zakir Hussain College of Engineering, Faculty of Arts and Faculty of commerce were visited collecting data. 3.3.5 Sample Size The questionnaires were distributed to 150 people. But since few of the targeted respondents did not respond, total responses received were 127. 3.3.5 Research Instrument A questionnaire has been used to see the effect of celebrity on consumer purchasing decisions. It also helps in generating the view of respondents regarding the few celebrities which are used for certain products. To assess the ratings for particular celebrities, categorical scale has been used. The responses of the respondents were recorded as per following scaleExcellent, Good, Average, Poor and Unsure.
Steps in Data Collection
Literature Review/ Secondary Data Analysis
Sampling and Questionnaire Adaptation
Distribution of questionnaires
Collection of questionnaires
Compilation and Computation of responses 3.4 Managerial Implications The study will have certain managerial implications such as: 1. The study will be useful to scholars, executives and managers interested in the area of celebrity endorsement and advertising. 2. It highlights the perception of the targeted respondents towards the celebrities used for various products. 3. It may provide an insight to the studied brands regarding the perception of viewers. 4. The study may prove helpful to the organizations who are planning to choose a celebrity for their brands or products. 3.5 Limitations 1. The response could not be obtained from all the respondents targeted.
2. Some respondents were not forthcoming and were reluctant in giving responses.
3. Paucity of time to conduct the study is another limitation. 4. The study has been conducted in one city. So the findings cannot be generalized.
Chapter Four
DATA ANALYSIS
This chapter deals with the analysis of the responses collected by means of questionnaire. The analysis been done on the basis of age and gender. Mean values of the respondents are calculated. 1. What are the most motivating factors when you plan to buy mobiles or cars? Table 1 Discounts and Age 18-24 25-34 Total offers 28 4 32 Fewer prices 11 2 13 Latest models and trends 74 7 81 Total 113 13 126
Table 1 show 28 respondents belonging to age group 18- 24 consider discounts and offers as motivating factors where as latest models and trends motivates an average of 74 respondents from the same age group. 7 respondents of age group 25- 34 agree with latest models and trends as a motivating factor to purchase mobiles or cars.
If we have a look at the results gender wise, 47 males are motivated by latest models and trends to buy the product and only 11 males are motivated by fewer prices. 2 females are motivated by fewer prices whereas majority, that 34 females are motivated by latest trends and models. Table 2 Discount and Gender Male Female Total offers 17 15 32 Fewer prices 11 2 13 Latest models and trends 47 34 81 Total 75 51 126
Table 3 shows that 10.2 percent of respondents are motivated by fewer prices whereas 63.8 percent of respondents are motivated by latest models and trends. Discount and offers are able to motivate around 25 percent of the respondents. Table 3
Motivating Factors Discount and offers Fewer prices Latest models and trends Total
Frequency 32 13 81 126
Percent 25.40 10.32 64.28 100.0
2. Do you believe products specifically advertised by the celebrities are of good quality? Table 4 Age Total 18-24 25-34 Yes 11 3 14 No 38 6 44 50% 55 2 57 Not sure 9 2 11 Total 113 13 126
Table 4 shows 11 males in age group 18- 24 believe that products advertised by the celebrities are of good quality, whereas 38 in same age group do not believe the same. Table 5 Gender Total Male Female Yes 9 5 14 No 27 17 44 50% 31 26 57 Not sure 8 3 11 Total 75 51 126
17 females say the products promoted by celebrities do not have good quality, whereas, 26 females believe that the product is only 50% consists of good quality. 27 males believe that the products promoted by celebrities are of not good quality and only 9 males believe reverse. Table 6 shows a larger view of the responses. It shows that 11 percent of total respondents believe that the products endorsed by the celebrities are of good quality, whereas 34.92% of respondents consider such products below quality. 45.24% of respondents say 50% they have good quality and rest of the respondents that is 8.73 % are not sure. Table 6 Responses Yes No 50% Not sure Total Frequency 14 44 57 11 126 Chart 1 Percent 11.11 34.92 45.24 8.73 100
3. What is the most persuading factor to purchase the following products? a) Motor Vehicle Table 7 Age 18-24 25-34 Total brand name Celebrity 59 8 8 2 67 10 Luxury 25 0 25 Self esteem 21 3 24 Total 113 13 126
59 respondents of age group 18- 24 consider brand name as the most persuading factor to purchase the motor vehicle. 25 and 21 respondents believe it is the luxury and self- esteem respectively which act as most persuading factor to buy motor vehicle. 8 respondents in age group 25- 34 believe its the brand name which persuades them, whereas only 2 consider celebrity as the persuading factor to purchase motor vehicle. Table 8 Gender Total Male Female brand name 38 29 67 Celebrity 6 4 10 Luxury 14 11 25 Self esteem 17 7 24 Total 75 51 126
Table 8 shows 38 male respondents believe brand name acts a persuading factor to purchase motor vehicle, whereas only 6 male consider its the celebrity who is endorsing the product. Table 9
Dimensions Brand Name Celebrity Frequency 67 10 Percent 52.8 7.9
Luxury Self Esteem Total
25 24 126
19.7 18.9 99.2
Table 9 shows only 19.7% and 5.8% of the respondents consider luxury and brand name respectively, as the most persuading factor to purchase a motor vehicle. Chart 2
b) Clothing Table 10 Age Total 18-24 25-34 brand name 59 8 67 Celebrity 8 3 11 status 25 0 25 cost 21 2 23 Total 113 13 126
According to 59 respondents in the age group 18- 24 consider brand name is the most persuading factor while purchasing the clothing. Table 10 shows none of the respondents in age group 25- 34 none agree to that status is the persuading factor to purchase clothing. Table 11 Gender Total Male Female brand name 46 21 67 celebrity 6 5 11 status 13 12 25 cost 10 13 23 Total 75 51 126
Table 11 exhibits that only 10 males think that cost is a persuading factor to purchase clothing, whereas 46 males think it the brand name which persuades them to purchase clothing. Table 12 shows around 52% of the total respondents believe brand name is the most persuading factor to buy clothing, whereas, only 8.7 % of total respondents consider celebrity as the most persuading factor to purchase clothing. [Bhanu Pratap Singh - IISWBM] Page 52
Table 12 Dimensions brand name celebrity status cost Total Frequency 67 11 25 23 126 Percent 52.8 8.7 19.7 18.1 99.2
Chart 3
c) Food Products Table 13 attractive Age Total 18-24 25-34 celebrity 10 1 11 package 7 1 8 quality 87 10 97 brand name 9 1 10 Total 113 13 126
The above results show that 87 respondents of age group 18-24 believes quality is the most persuading factor to purchase the food products, whereas only 7 respondents consider attractive packaging as the most persuading factor. Table 14 attractive Gender Male Female Total celebrity 8 3 11 package 4 4 8 quality 57 40 97 brand name Total 6 75 4 51 10 126
Table 14 shows 57 male respondents consider quality as the most persuading factor to buy food products. 40 females consider quality as the most persuading factor to purchase food products whereas; only 3 females consider that celebrity persuades them to purchase food products. Table 15 shows around 76% of total respondents consider quality as the most persuading factor to purchase food products. Only 6% of the respondents believe attractive packaging is the reason. Table 15
Dimensions Celebrity Attractive Package Quality Brand name Total Frequency 11 8 97 10 126 Percent 8.7 6.3 76.4 7.9 99.2
Chart 4
4. Companies are investing large amounts of money for using celebrities; do you think its helping them to increase their total revenue? Table 16 Age Total 18-24 25-34 Yes 78 10 88 No 21 1 22 Don't know 14 2 16 Total 113 13 126
According to 78 respondents of age group 18-24, companies investing large amount of money for celebrity endorsement are benefitted by increase in total revenue. 10 respondents of age group 25-34 believes that celebrity endorsement do help in increase in total revenue of the organization, whereas 1 respondent dont believe that. Table 17 shows 54 males say yes when asked if they believe that [Bhanu Pratap Singh - IISWBM] Page 54
celebrity endorsement help in increasing revenue of organization, whereas 15 say no. 34 females say yes to the same question whereas, 7 females say no. Table 17 Gender Total Male Female Yes 54 34 88 No 15 7 22 Don't know 6 10 16 Total 75 51 126
Table 18 Dimensions Yes No Don't know Total Frequency 88 22 16 126 Percent 69.3 17.3 12.6 99.2
In table 18, around 69% of the total respondents do believe that organizations are benefitted by celebrity endorsement, whereas, around 17% say no the same thing.
Chart 5
5. Does the presence of mega star like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage you to purchase the product or service? Table 19 Age Total 18-24 25-34 Yes 36 3 39 No 57 8 65 Not sure 20 2 22 Total 113 13 126
Table 19 shows that 36 respondents falling in age group 18- 24 believe that mega stars like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them to purchase the product or service, whereas 57 do not believe this. The age group 25- 34 has only 3 respondents considering these mega stars in an advertisement encouraging to purchase the product or service, while 2 are not sure. Table 20 Gender Total Male Female Yes 26 13 39 No 36 29 65 Not sure 13 9 22 Total 75 51 126
26 male respondents believe mega stars like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them to purchase the product or service, while 36 males say no to it. 13 females are also encouraged by the same. Table 21 shows around 30% of total respondents say they are encouraged by presence of mega stars in advertisement to purchase a product or service, while 51.6% of total respondents say they are not encouraged by presence of mega stars in advertisements. Table 21 Dimensions Yes No Not sure Total Frequency 39 65 22 126 Chart 6 Percent 30.7 51.2 17.3 99.2
6. Do you believe the celebrities also use those products which they themselves endorse? Table 22 Age Total 18-24 25-34 Yes 19 0 19 No 69 10 79 Not sure 24 2 26 Total 112 13 125
19 respondents falling in age group 18- 24 believe that celebrities also use those products which they themselves endorse, while 69 respondents from same age group do not believe this. In age group 2534, there are no respondents who would believe that celebrities also use those products which they themselves endorse, but have 10 respondents who believe celebrities also use those products which they themselves endorse. Table 23 Gender Male Female Yes 12 7 No 47 32 Not sure 14 12 Total 74 51
12 male respondents and 7 female respondents believe celebrities also use those products which they themselves endorse whereas 47 male and 32 female respondents do not believe the same. Table 24
Dimensions Yes No Not sure Total Frequency 19 79 26 125 Percent 15.0 62.2 20.5 98.4
Table 24 shows only 15% of the total respondents believe that celebrities also use those products which they themselves endorse, while around 62% of the total respondents do not agree with them. Chart 7
7. What type of celebrity endorsement persuades you personally to purchase products? Table 25
Famous Age group 18-24 25-34 Total Film star 39 4 43 personalities 54 7 61 Cricketer 14 1 15 Politician 4 0 4
Table 25 shows 39 respondents in age group 18- 24 are persuaded by films stars to purchase a products, while 54 says famous personalities persuade them only 14 say they are persuaded by cricketers. In other age group, only 1 respondent is persuaded by cricketer, 7 are persuaded by famous personalities whereas none is persuaded by politician. Table 26 shows 21 males and 22 female respondents are persuaded by film stars to buy products, whereas 36 males and 25 females are persuaded by personalities. Cricketers are able to persuade 12 males and only 3 females, whereas politicians persuade only 3 males and 1 female respondent. Table 26 Famous Gender Total Male Female Film star 21 22 43 personalities 36 25 61 Table 27 Cricketer 12 3 15 Politician 3 1 4 Total 73 51 124
Dimensions Film star Famous personalities Cricketer Politician Total
Frequency 43 61 15 4 124
Percent 33.9 48.0 11.8 3.1 97.6
Table 27 shows 33.9% of total respondents are persuaded by film stars to purchase products, whereas, only 3.1% of total respondents are persuaded by politicians. 8. Please rate the following celebrities as a brand endorser: a) Aishwarya Rai for LOreal Table 28 Dimensions Excellent Good Average Poor Total Frequency 7 24 59 35 126 Percent 5.5 18.9 46.5 27.6 99.2
Table 28 shows only 5.5% of the total respondents rate Aishwarya Rai an excellent brand endorser, 46.7% consider her an average brand endorser, while 27.6% rate her as a poor brand endorser. b) Hrithik Roshan for Coca Cola and Hero Honda Karizma Table 29 Dimensions Excellent Good Average Poor Total Frequency 7 20 58 38 126 Percent 5.5 15.7 45.7 29.9 99.2
Table 29 shows only 5.5% of the total respondents consider Hrithik Roshan for Coca Cola and Hero Honda Karizma as an excellent brand endorser. 15.7% consider him as a good brand endorser, whereas 45.7% consider him an average brand endorser. [Bhanu Pratap Singh - IISWBM] Page 59
c) Sushmita Sen for Olay Creams Table 30 Dimensions Excellent Good Average Poor Total Frequency 5 27 49 42 125 Percent 3.9 21.3 38.6 33.1 98.4
There are 21.3% of total respondents who rate Sushmita Sen for Olay Creams as good brand endorser. 38.6% rate her as an average brand endorser whereas only 3.9% rate her as excellent brand endorser. d) Juhi Chawla for Kukure Table 31 Dimensions Excellent Good Average Poor Total Frequency 12 17 62 32 126 Percent 9.4 13.4 48.8 25.2 99.2
Table 31 shows that Juhi Chawla is considered as an average brand endorser for Kurkure by 48% of total respondents whereas only 9.4% of the total respondents consider as an excellent brand endorser for Kurkure. 13.4% and 25.2% of the total respondents believe she is good and poor brand endorser respectively. e) Amitabh Bachchan for Cadbury choclates Table 32 Dimensions Excellent Good Average Poor Total Frequency 9 19 52 38 125 Percent 7.1 15.0 40.9 29.9 98.4
Table 32 shows 29.9% of the total respondents consider Amitabh Bachchan as poor brand endorser for Cadbury choclates whereas only 7.1% consider him as an excellent brand endorser for the same. f) Shah Rukh Khan for Airtel and Pepsi Table 33 Dimensions Excellent [Bhanu Pratap Singh - IISWBM] Page 60 Frequency 2 Percent 1.6
The above table indicates that equal percent of respondents consider Shah Rukh Khan as an average and poor brand endorser for Airtel and Pepsi. Only 1.6% of the total respondents consider him as excellent brand endorser, whereas 7.9% of total respondents consider him as good for the same. g) Saif Ali Khan for Lays and Chevrolet Table 34 Dimensions Frequency Percent Excellent 5 3.9 Good 32 25.2 Average 43 33.9 Poor 44 34.6 Total 126 99.2 In table 34, Saif Ali Khan comes out to be average brand endorser for Lays and Chevrolet as said by 33.9% of total respondents, whereas only 3.9% of total respondents consider him to be an excellent brand endorser for the same. h) Amir Khan for Tata Sky and Samsung Table 35 Dimensions Excellent Good Average Poor Total Frequency 2 15 47 61 126 Percent 1.6 11.8 37.0 48.0 99.2
11.8% of the total respondents believe that Amir Khan is a good brand endorser for Tata Sky and Samsung, whereas 37% of the total respondents consider him as an average brand endorser for the same brands. i) Katrina Kaif for Slice Table 36 Dimensions Excellent Good Average Poor Total Frequency 15 16 39 51 125 Percent 11.8 12.6 30.7 40.2 98.4
The above table shows that 30.7% of the respondents consider Katrina Kaif as an average brand endorser for Slice, whereas 11.8% of the respondents say she is an excellent brand endorser. 12.6% of total respondents believe she is a good brand endorser for Slice. j) John Abraham for Garnier and Castrol Table 37 [Bhanu Pratap Singh - IISWBM] Page 61
Dimensions Excellent Good Average Poor Total
Frequency 10 27 55 30 126
Percent 7.9 21.3 43.3 23.6 99.2
43.3% of the total respondents say that John Abraham is an average brand endorser for Garnier and Castrol, whereas 21.3% of total respondents consider him good. 7.9% of the total respondents believe that he is an excellent brand endorser for these two brands. Table 38 and chart 8 below shows the mean scores of the respondents while rating the celebrities for various brand. Table 38 Celebrities Aishwarya_L'Oreal Hrithik_Coke_Karizma Sushmita_Olay Juhi_Kurkure Amitabh_Cadbury Shahrukh_Airtel_Pepsi Saif_Lays_Chevrolet Amir_TataSky_Samsung Katrina_Slice John_Garnier_Castrol Chart 8 N 126 126 125 126 125 126 126 126 125 126 Mean 2.95 2.96 2.99 2.86 2.84 3.31 2.97 3.31 2.94 2.77
9. What do you value the most when you purchase a product? Table 39 Price of the product Gender Total Male Female 10 5 15 Celebrity Endorsement 1 2 3 Quality of the product 49 36 85 Value for money 15 8 23 75 51 126
Table 39 indicates that 10 males say they value the price of the product the most when they purchase a product, while only one male say its celebrity endorsement which they value. 36 females consider price of the product which they value the most, whereas only 2 females think they value celebrity endorsement.
Dimensions Price of the product Celebrity Endorsement Quality of the product Value for money Total
Table 40
Frequency 15 3 85 23 126 Percent 11.8 2.4 66.9 18.1 99.2
Table 40 shows 11.8% of respondents value price of the product whereas only 2.4% of the respondents value celebrities when they purchase a product. The quality of product is valued by 66.9% of the respondents. Chart 9
10. Does celebrity endorsement help in brand promotion?
Table 41 Gender Total Male Female Yes 63 37 100 No 7 11 18 Not sure 4 3 7 74 51 125
Table 41 shows 63 males say celebrity endorsement help in brand promotion while 7 males say it does not help. 37 females say celebrity endorsement help in brand promotion. Table 42 Dimensions Yes No Not sure Total Frequency 100 18 7 125 Percent 78.7 14.2 5.5 98.4
According to table 2, 78.7% of total respondents consider that celebrity endorsement assist in brand promotion, whereas 14.2% of the total respondents feel its not so. Chart 10
11. Does it affect company if celebritys image defer? The table below shows 49 males and 34 females say that if celebritys image defer, the company gets affected, whereas 18 males say that company is not affected if celebritys image defers. Table 43 [Bhanu Pratap Singh - IISWBM] Page 64
Gender
Male Female Total
Yes 49 34 83
No 18 4 22 Table 44
Not sure 8 13 21
Total 75 51 126
Dimensions Yes No Not sure Total
Frequency 83 22 21 126
Percent 65.4 17.3 16.5 99.2
In table 44, 65.4% of the total respondents believe that company gets affected if celebritys image defers whereas 17.3% of the total respondents believe the company is not affected if celebritys image defers. 16.5% of the total respondents are not sure of their responses.
Chart 11
12. What means of advertisements persuades you the most to purchase a product?
Table 45
Gender Total
Male Female
Television 51 39 90
Radio
Newspaper 3 5 0 2 3 7
Magazines Internet 5 10 2 8 7 18
74 51 125
Table 45 shows 51 male and 39 female respondents television is the means of advertisements which persuades them the most. Only 3 male respondents believe its radio which persuade them the most.
Table 46 Dimensions Television Radio Newspaper Magazines Internet Total Frequency 90 3 7 7 18 125 Percent 70.9 2.4 5.5 5.5 14.2 98.4
Table 46 shows 70.9% of total respondents believe television is the means of advertisements which persuades them the most. 14.2% of the total respondents are most persuaded by internet, whereas only 5.5% of the total respondents by newspapers and magazines. Chart 12
13. What do you think is the reason for the companies to choose celebrity endorsement for promoting their products? The table below shows 33 males and 16 females believe that the reason for the companies to choose celebrity endorsement for promoting their products is easy recognition; whereas, 4 males and 4 females think it is so because the companies cannot think of any new idea. Table 47
Easy recognition of Gender Male Female Total product 33 16 49 Can't generate new ideas 4 4 8
To be able to increase sales and profit 29 14 43 To compete strongly 9 17 26 75 51 126
Table 48 Dimensions Frequency Percent Easy recognition of product 49 38.6 Can't generate new ideas 8 6.3 To be able to increase sales and profit 43 33.9 To compete strongly 26 20.5 Total 126 99.2 The above table shows 38.6% of total respondents believe that companies choose celebrity endorsement because they feel the customers will easy recognize the product, whereas 33.9% of total population says it is so, so that companies may able to increase their sales and profits. Chart 13
Chapter Five
CONCLUSIONS
On the basis of analysis, the conclusions have been drawn in this chapter. The conclusions are discussed below on the basis of age, on the basis of gender and also on the basis of the
ratings given to the celebrity endorser as given by the respondents. This is brief discussion of directions for future study as well in latter part of this chapter.
5.1
The conclusions are as follows:
5.1.1 On the basis of Age
1. 28 respondents belonging to age group 18- 24 consider discounts and offers as
motivating factors where as latest models and trends motivates an average of 74 respondents from the same age group. 7 respondents of age group 25- 34 agree with latest models and trends as a motivating factor to purchase mobiles or cars. 2. 11 respondents in age group 18- 24 believe that products advertised by the celebrities are of good quality, whereas 38 in same age group do not believe the same. 3. 59 respondents of age group 18- 24 consider brand name as the most persuading factor to purchase the motor vehicle. 25 and 21 respondents believe it is the luxury and self- esteem respectively which act as most persuading factor to buy motor vehicle. 8 respondents in age group 25- 34 believe its the brand name which persuades them, whereas only 2 consider celebrity as the persuading factor to purchase motor vehicle. 4. According to 59 respondents in the age group 18- 24 consider brand name is the most persuading factor while purchasing the clothing. Table 10 shows none of the respondents in age group 25- 34 none agree to that status is the persuading factor to purchase clothing. 5. 87 respondents of age group 18-24 believes quality is the most persuading factor to purchase the food products, whereas only 7 respondents consider attractive packaging as the most persuading factor. 6. 78 respondents of age group 18-24, companies investing large amount of money for celebrity endorsement are benefitted by increase in total revenue. 10 respondents of age group 25-34 believes that celebrity endorsement do help in increase in total revenue of the organization, whereas 1 respondent dont believe that 7. 36 respondents falling in age group 18- 24 believe that mega stars like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them to purchase the product or service, whereas 57 do not believe this. The age group 25- 34 has only 3 respondents considering these mega stars in an advertisement encouraging to purchase the product or service, while 2 are not sure. 8. 19 respondents falling in age group 18- 24 believe that celebrities also use those products which they themselves endorse, while 69 respondents from same age group do not believe this. In age group 25- 34, there are no respondents who would believe
that celebrities also use those products which they themselves endorse, but have 10 respondents who believe celebrities also use those products which they themselves endorse. 39 respondents in age group 18- 24 are persuaded by films stars to purchase a products, while 54 says famous personalities persuade them only 14 say they are persuaded by cricketers. In other age group, only 1 respondent is persuaded by cricketer, 7 are persuaded by famous personalities whereas none is persuaded by politician. 5.1.2 On the basis of Gender
1. 47 males are motivated by latest models and trends to buy the product and only 11 males are motivated by fewer prices. 2 females are motivated by fewer prices whereas majority, that 34 females are motivated by latest trends and models. 2. 17 females say the products promoted by celebrities do not have good quality, whereas, 26 females believe that the product is only 50% consists of good quality. 27 males believe that the products promoted by celebrities are of not good quality and only 9 males believe reverse. 3. 38 male respondents believe brand name acts a persuading factor to purchase motor vehicle, whereas only 6 male consider its the celebrity who is endorsing the product. 4. 10 males think that cost is a persuading factor to purchase clothing, whereas 46 males think it the brand name which persuades them to purchase clothing. 5. 57 male respondents consider quality as the most persuading factor to buy food products. 40 females consider quality as the most persuading factor to purchase food products whereas, only 3 females consider that celebrity persuades them to purchase food products. 6. 54 males say yes when asked if they believe that celebrity endorsement help in increasing revenue of organization, whereas 15 say no. 34 females say yes to the same question whereas, 7 females say no. 7. 26 male respondents believe mega stars like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them to purchase the product or service, while 36 males say no to it. 13 females are also encouraged by the same.
8. 12 male respondents and 7 female respondents believe celebrities also use those products which they themselves endorse whereas 47 male and 32 female respondents do not believe the same 9. 21 males and 22 female respondents are persuaded by film stars to buy products, whereas 36 males and 25 females are persuaded by personalities. Cricketers are able to persuade 12 males and only 3 females, whereas politicians persuade only 3 males and 1 female respondent. 10. 10 males say they value the price of the product the most when they purchase a product, while only one male say its celebrity endorsement which they value. 36 females consider price of the product which they value the most, whereas only 2 females think they value celebrity endorsement. 11. 63 males say celebrity endorsement help in brand promotion while 7 males say it does not help. 37 females say celebrity endorsement help in brand promotion. 12. 49 males and 34 females say that if celebritys image defer, the company gets affected, whereas 18 males say that company is not affected if celebritys image defers. 13. 51 male and 39 female respondents television is the means of advertisements which persuades them the most. Only 3 male respondents believe its radio which persuade them the most. 14. 33 males and 16 females believe that the reason for the companies to choose celebrity endorsement for promoting their products is easy recognition, whereas, 4 males and 4 females think it is so because the companies cannot think of any new idea. 5.1.3 On the basis of Ratings given to Celebrity Endorsers 1. 5.5% of the total respondents rate Aishwarya Rai an excellent brand endorser, 46.7% consider her an average brand endorser, while 27.6% rate her as a poor brand endorser. 2. 5.5% of the total respondents consider Hrithik Roshan for Coca Cola and Hero Honda Karizma as an excellent brand endorser. 15.7% consider him as a good brand endorser, whereas 45.7% consider him an average brand endorser.
3. 21.3% of total respondents who rate Sushmita Sen for Olay Creams as good brand endorser. 38.6% rate her as an average brand endorser whereas only 3.9% rate her as excellent brand endorser. 4. Juhi Chawla is considered as an average brand endorser for Kurkure by 48% of total respondents whereas only 9.4% of the total respondents consider as an excellent brand endorser for Kurkure. 13.4% and 25.2% of the total respondents believe she is good and poor brand endorser respetively. 5. 29.9% of the total respondents consider Amitabh Bachchan as poor brand endorser for Cadbury choclates whereas only 7.1% consider him as an excellent brand endorser for the same. 6. equal percent of respondents consider Shah Rukh Khan as an average and poor brand endorser for Airtel and Pepsi. Only 1.6% of the total respondents consider him as excellent brand endorser, whereas 7.9% of total respondents consider him as good for the same. 7. Saif Ali Khan comes out to be average brand endorser for Lays and Chevrolet as said by 33.9% of total respondents, whereas only 3.9% of total respondents consider him to be an excellent brand endorser for the same. 8. 11.8% of the total respondents believe that Amir Khan is a good brand endorser for Tata Sky and Samsung, whereas 37% of the total respondents consider him as an average brand endorser for the same brands. 9. 30.7% of the respondents consider Katrina Kaif as an average brand endorser for Slice, whereas 11.8% of the respondents say she is an excellent brand endorser. 12.6% of total respondents believe she is a good brand endorser for Slice. 10. 43.3% of the total respondents say that John Abraham is an average brand endorser for Garnier and Castrol, whereas 21.3% of total respondents consider him good. 7.9% of the total respondents believe that he is an excellent brand endorser for these two brands.
5.2 DIRECTIONS FOR FUTURE STUDY

There can be many ways in which this study can be expanded in future. Some of the ways could be listed as follows:
1. The study could also be extended to a comparison of perception regarding celebrity
endorsement at Kolkata and other cities. 2. More respondents could be targeted in future which will help in increasing the sample size. 3. Future studies can be carried out to compare the celebrities endorsing in India and in foreign countries.
BIBLIOGRAPHY

www.google.com www.wikipedia.com Irene Roozen,The Relative Effectiveness of Celebrity Endorsement for Beauty, High- and Low Involvement Product Print Advertisements. McCracken, Grant (1989), "Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process," Journal of Consumer Research, 16 (3), 310-321.
Philip A. Stroke (2009), "Impact of Celebrity Endorsement", Journal of Consumer Research, Vol. 14 March, Pg.471-82. Belch, George E., and Belch, Michael A (1993), "Introduction to Promotion and Advertising," Richard D. Irwin Co., New York, NY Ohanian, Roobina, (1991), "The Impact of Celebrity Spokespersons' Perceived Image on Consumers' Intention to Purchase," Journal of Advertising Research, Vol. 31, Issue 1, pg. 46-55.
Goldberg,-Marvin- E.and Hartwick,-Jon, (1990), "The Effects of Advertiser Reputation and Extremity of Advertising Claim on Advertising Effectiveness," Journal of Consumer Research, 17(2), pages 172-79.
McCracken, G. (1989), "Who is the Celebrity Endorser? Cultural Foundation of the Endorsement Process", Journal of Consumer Research, 16, (December), pp. 310-321. Adler, P. A. and P. Adler. 1989. "The Glorified Self: The Aggrandizement and the Constriction of Self." Social Psychology Quarterly 52:299-310.
Agrawal, J. and Kamakura, W. A. (1995). The economic worth of celebrity endorsers: An event study analysis. Journal of Marketing, 59, pp. 56- 62.
Dean, D. H. (1999). Brand Endorsement, Popularity and Sponsorship as advertising cues affecting consumer pre- purchase attitudes. Journal of Advertising, 28(3), pp. 1-2. Ferris, K. O. 2004. "The Moral Order of Celebrity Sightings." Journal of Contemporary Ethnography 33:236-64. Friedman, Milton and Rose Friedman, Free to Choose, (New York: Harcourt, Brace and Jovanovich, 1979). Friedman, H. H. and Friedman, L. (1979), "Endorser Effectiveness by Product Type," Journal of Advertising Research, 19 (5), 63-71 Giles, D. 2000. Illusions of Immortality: A Psychology of Fame and Celebrity. New York: St. Martin's Press. Horton, D. and R. R. Wohl. 1956. "Mass Communication and Parasocial Interaction: Observations on Intimacy at a Distance." Psychiatry 19:215-29. Kahle, L. R., and Homer, P. M. (1985), "Physical Attractiveness of the Celebrity Endorser: A Social Adaptation Perspective," Journal of Consumer Research, 11 (March), 954-961. Keller, K. L., (1993), "Memory Retrieval Factors and Advertising Effectiveness" in Advertising Exposure, Memory, and Choice, ed. Andrew A. Mitchell, Hillsdale, NJ: Lawrence Erlbaum Associates, pp. 11-48. Leets, L., G de Becker, and H. Giles. 1995. "FANS: Exploring Expressed Motivations for Contacting Celebrities." Journal of Language and Social Psychology 14:102-23.
Mc Cracken, G. (1989). Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process. Journal of Consumer Research, Vol. 16, pp. 310- 321.
Quian Quiroga, R., L. Reddy, G Kreiman, C. Koch, and I. Fried. 2005. "Invariant Visual Representation by Single Neurons in the Human Brain." Nature 435:1102-07. Schickel, R. 1985. Intimate Strangers: The Culture of Celebrity. Garden City, NY: Doubleday.
QUESTIONNAIRE
Dear respondents, This questionnaire carries data on which study will take place on the topic Celebrity endorsement affecting consumers attitude toward the advertisement and purchase intension for a product. Your view will be of immense value and through this I can find the change in attitude by seeing advertisement. Name:_____________________________________________________________________ Gender:___________________ Age______________ Occupation______________________ 1. What are the motivating factors when you plan to buy mobiles or cars? (a) Discounts and offers [ ] (b) Fewer prices [ ] (c) Latest models and trends [ ] (d) Celebrity endorsing the product [ ] Do you believe products specifically advertised by the celebrities are of good quality? Yes [ ] No [ ] 50% [ ] Not sure [ ] What is the most persuading factor to purchase the following products? (a) Motor vehicle? Brand Name [ ] (b) Clothing Brand Name [ ] (c) Food Products Celebrity [ ] Quality [ ] 4. Celebrity Celebrity [ ] [ ] Luxury Status [ ] [ ] [ ] [ ] Self Esteem Cost [ ] [ ]
2.
3.
Attractive Package Brand Name
Companies are investing large amounts of money for using celebrities; do you think its helping them to increase their total revenue? Yes [ ] No [ ] Dont know [ ] Does the presence of mega star like Shahrukh Khan, Amitabh Bacchan or Aishwariya Rai in an advertisement encourage you to purchase the product or service? Yes [ ] No [ ] Not sure [ ]
5.
6. 7.
Do you believe the celebrities also use those products which they themselves endorse? Yes [ ] No [ ] Not sure [ ] What type of celebrity endorsement persuades you personally to purchase products? Film star [ ] Famous personalities [ ] Cricketer [ ] Politician [ ] Please rate the following celebrities as a brand endorser:(a) Aishwariya Rai for LOreal Excellent [ ] Good [ ] Average Poor [ ] Cant [ ]
8.
[ ]
(b) Hritik Roshan for coca cola and hero honda karizma Excellent [ ] Good [ ] Poor [ ] Cant rate [ ] (c) Sushmita Sen for Olay creams Excellent [ ] Good [ ] Poor [ ] Cant rate [ ] (d) Juhi Chawla for KurkureExcellent [ ] Poor [ ] Good Cant rate [ ] [ ] [ ] [ ]
Average
[ ]
Average
[ ]
Average
[ ]
(e) Amitabh Bachan for Cadbury chocolatesExcellent [ ] Good Poor [ ] Cant rate (f) Shah Rukh Khan for Airtel and Pepsi Excellent [ ] Good Poor [ ] Cant rate (g) Saif Ali Khan for Lays and Chevrolet Excellent [ ] Good Poor [ ] Cant rate (h) Aamir Khan for Tata Sky and Samsung Excellent [ ] Good Poor [ ] Cant rate (i) Katrina Kaif for slice Excellent [ ] Poor [ ] Good Cant rate
Average
[ ]
[ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]
Average
[ ]
Average
[ ]
Average
[ ]
Average
[ ]
(j) John Abraham for Garnier and Castrol Excellent [ ] Good Poor [ ] Cant rate 9.
Average
[ ]
What do you value the most when purchasing a product? Price of the product [ ] Celebrity endorsement Quality of the product [ ] Value for money Does celebrity endorsement help in brand promotion? Yes [ ] No [ ] Does it affect company if celebritys image defer? Yes [ ] No [ ] Not sure Not sure
[ ] [ ] [ ] [ ]
10. 11. 12.
What means of advertisements persuades you the most to purchase a product? Television [ ] Radio [ ] Newspaper [ ]
Magazines 13.
[ ]
Internet
[ ]
What do you think is the reason for the companies to choose celebrity endorsement for promoting their products? Easy recognition of product [ ] Cant generate new ideas [ ] to be able to increase sales and profit [ ] to compete strongly [ ]

Consumer Behaviour

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CELEBRITY ENDORSEMENT AFFECTING CONSUMERS ATTITUDE TOWARD THE ADVERTISEMENT AND PURCHASE INTENTION

MARSTER IN BUSINESS ADMINISTRATION SUBMITTED BY BHANU PRATAP SINGH (107/MBA/105054)

UNDER THE SUPERVISION OF

DR. Srabanti Mukherjee

[Bhanu Pratap Singh - IISWBM] Page 2

Chapter One INTRODUCTION

Celebrity Endorsement in India Phase 1: The Pioneering Phase (1950-1980)

Phase 2: The Growth Phase (1980-1990)

1.5.1 Why Celebrities?

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1.5.5 Mechanism and Theories of Celebrity Endorsement

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Chapter two Review of Literature

Figure 1: The Meaning Transfer Model

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6. To view the companies and endorsers perspectives towards celebrity.

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Steps in Data Collection

Literature Review/ Secondary Data Analysis

Sampling and Questionnaire Adaptation

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Percent 25.40 10.32 64.28 100.0

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Luxury Self Esteem Total

19.7 18.9 99.2

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Dimensions Film star Famous personalities Cricketer Politician Total

Percent 33.9 48.0 11.8 3.1 97.6

Dimensions Excellent Good Average Poor Total

Percent 7.9 21.3 43.3 23.6 99.2

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10. Does celebrity endorsement help in brand promotion?

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Male Female Total

Dimensions Yes No Not sure Total

Percent 65.4 17.3 16.5 99.2

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To be able to increase sales and profit 29 14 43 To compete strongly 9 17 26 75 51 126

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The conclusions are as follows:

5.1.1 On the basis of Age