SYNOPSIS ON

“A STUDY ON IMPACT OF CELEBRITY ENDORSEMENTS ON CONSUMER

BUYING BEHAVIOUR”

MASTER OF BUSINESS ADMINISTRATION

(BATCH-2018-2020)

Submitted to:

Prof. MANJUNATH S M

Submitted by: Group 11

Shilpa
Ajay
Sakkib
Shazeeb
Monika
Vishal

M P Birla Institute of Management

Bhartiya Vidya Bhavan, #43, Race Course Rd, High Grounds, Bengaluru, Karnataka 560001

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 A STUDY ON IMPACT OF CELEBRITY ENDORSEMENTS ON
CONSUMER BUYING BEHAVIOUR
CHAPTER 1
Introduction
Everyday consumers are exposed to thousands of voices and images in magazines, newspapers and
on billboards, websites, radio and television. Every brand attempts to steal at least a fraction
of a person‘s time to inform him or her of the amazing and different attributes of the product at hand.
The challenge of the marketer is to find a hook that will hold the subject‘s attention. In
helping to achieve this, use of celebrity endorsers is a widely used marketing strategy.

In this modern age, people tend to ignore all commercials and advertisements while flipping through
the magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes
unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall brand is of
great significance. In this process, the companies hire celebrities from a particular field to feature in
its advertisement campaigns. The promotional features and images of the product are matched with
the celebrity image, which tends to persuade a consumer to fix up his choice from a variety of
brands.

Companies invest large sums of money to align their brands and themselves with endorsers. Such
endorsers are seen as dynamic with both attractive and likeable qualities and companies plan that
these qualities are transferred to products via marcom activities. Furthermore, because of their fame,
celebrities serve not only to create and maintain attention but also to achieve high recall rates for
marcom messages in today‘s highly cluttered environments.

Similarly every product has an image. The consumer tries to consume a brand which has the
maximum fit with his/her own personality/image. The celebrity endorser fits in between these two
interactions, where he tries to bring the image of the product closer to the expectation of the
consumer, by transferring some of the cultural meanings residing in his image to the product.

In the report, We have focused on the impact of celebrity endorsement on the overall process of
brand building and also tried to define: how to make celebrity endorsement a win-win situation for
both the brand and the brand-endorser. “Brand” the most valuable asset of any firm.

The general belief among advertisers is that brand communication messages delivered by celebrities
and famous personalities generate a higher appeal, attention and recall than those executed by non-
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celebrities. The quick message-reach and impact are all too essential in today‘s highly competitive
environment.

A brand should be cautious when employing celebrities to ensure promise, believability and delivery
of the intended effect. Celebrities have also been in demand having succeeded in being effective by
rising above the clutter & grabbing the attention and focus of the consumer. They also succeed in
creating an aspiration in the minds of the consumer to acquire what their favourite celebrity endorses.

WHAT IS THE NEED OF CELEBRITY ENDORSEMENT

Marketing world works very harder to make products and brand popular and in synch with the
though most of the marketer spends huge amount of money every year on endorsing a brand through
a celebrity. The reason they think for favouring celebrity endorsement as their strength to act as best
spokesperson for the products and making it a brand (Katyal 2007Celebrity Endorsement is viewed
as a billion dollar industry in today’s era.(Kambitsis et al, 2002). Various companies are signing
deals with celebrities in the hope that by using celebrities they can accomplish a unique and relevant
position in the minds of the consumers. Celebrity endorsement is increasingly being employed across
various industries regardless of the product type. It is known to be playing the role of a signalling
strategy. Reynolds (2000) also quoted for celebrity endorsement that it makes a brand to acts as
touch of glamour.

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 CHAPTER 2

Review of Literature
• Mishra Prashant, Dhar Upinder and Raotiwala Saifuddin (2001), conducted a study on
“Celebrity Endorser and Adolescent: A study on Gender Influences”. The study was focused at
differences among the adolescents‟ perceptions and about the effectiveness of male and female
celebrities. The survey approach was used to collect the data from the respondents to explore the
influence of gender and adolescent on the perception about celebrity endorsers. A quasi-experimental
design was used to analyze the data obtained through survey. The final sample consisted of equal
number of male and female adolescents. The average age of the sample was 16 years for male
adolescents (N=100) and 15 years for female adolescents. The subject was chosen from prominent
English Medium Higher Secondary Schools. The findings of the study revealed that male
adolescents‟ perception of female celebrity‟s attractiveness, trustworthiness, and expertise is
significantly higher in comparison to their perception of male celebrity. Even on cumulative
influence, female celebrity is found to be more influencing than the male celebrity.

• Varsha Jain, Mari Sudha, and Aarzoo Daswani, (2009), in their article on “Customer Perception
about Celebrity Endorsement in Television Advertising for Retail Brands”, used the survey method.
They used a structured questionnaire and it was employed on a sample of 186 respondents. The
findings of the study revealed that customers prefer female celebrities over male celebrities. The
preference for celebrities was more for sensory products than cerebral products. Customers want
celebrities to entertain them as well as to give information pertaining to the products in the
advertisements. The factors that customers perceived to be important in selecting the celebrities for
retail brands were proficiency, reliability, pleasantness, elegance, distinctiveness, approachability
and non-controversial.

• Bahram Ranjbarian, Zahra Shekarchizade and Zahra Momeni (2010), analyzed “Celebrity
Endorser Influence on Attitude towards Advertisements and Brands”. The aim of their study was to
indicate the influence of using celebrity endorsers in Iranian advertisements on attitudes of students
in University of Isfahan towards those advertisements and brands. A theoretical model was
developed and tested with a sample of 193 students in University of Isfahan in 2009. Structural
equation modelling was used with LISREL 8.50 and the maximum likelihood method. The result of
their study showed that the positive and significant relationship between attitude towards celebrity
endorser and attitude towards advertisements and brands. By analyzing the output resulting from
testing hypotheses, it can be concluded that attitude towards celebrity endorser has directly or
indirectly influence on attitude towards brand. Consequences suggested that attitude towards

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 advertisement was as a mediator between attitude towards celebrity endorser and attitude towards
brand. On the other hand, attitude towards celebrity endorser has not significant influence on
purchase intention.

• Bhavana Sindhu (2011), in his study analyzed “Is Celebrity Endorsement a Midas Touch or a
Landmine?”. The purpose of pursuing that study was to analyze the customer‟s perception with
respect to celebrity endorsement. Primary data was collected through field survey method. The
sample size was confined to 300 respondents. A fine mix of different age groups was taken into
consideration to avoid concentration on anyone‟ specific group. Random sampling method was
adopted for selecting respondents. Primary data was collected through specially structured
questionnaire. Chi square test was employed to analyze the relationship between independent
attribute and the level of impact of celebrity endorsement. An attempt has been made to find out,
whether the celebrity endorsement is always capable to extend a „Midas touch‟ to the sale of the
product endorsed. An interesting finding, i.e., male celebrities are more effective as an endorser than
their female counterparts, is put forth through the chi square statistics.

• Dr.Ajit Shringarpure and archana Dadhe (2012), analyzed “Celebrities as Brand Endorsers‟. The
objectives of the study were i) comparing the popularity of celebrities as brand endorsers. ii) it gives
conceptual guidelines to companies in selecting celebrity as brand endorser iii) to determine the level
of awareness and popularity about celebrities among the respondents. iv) to study the impact of
celebrities on sales of a brand. A sample size of 400 respondents, both male and female in the age
group between 16-50 years belong to different occupations in Nagpur was considered. Area sampling
method was used in which each member of population has known and equal probability of being
included in the sample. Researcher collected the primary data through interviews. The study
concluded that there is a huge impact of celebrity endorsement among the consumers though TV
commercials in India as Indians like the celebrities a lot and consider most of the celebrities as their
role model. Therefore more and more companies prefer the celebrities of different fields in India like
cricketers, bollywood celebrities and other sports personalities. Celebrity endorsement is quite
famous and effective in India. Most of the products of many companies are being endorsed by the
Bollywood Actors and Indian Cricketers for better sales targets. Television is something which is
watched all over India by the people of all class whether the people belong to lower class or middle
class or upper class, all of them watch television to entertain themselves.

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• Priyanka Shah and Anu Gupta (2013), analyzed the “Role of Celebrity Endorsement on
Purchase Behaviour”. The objectives of the study were: i) to identify the influence of celebrity
endorsement on consumer buying behaviour ii) to determine purchase attitude that is influenced by
the celebrity endorsement and the fit between the celebrity and the brands endorsed by her/him iii) to
find out which type of celebrity persona is more effective. The study was descriptive in nature.
Primary data was collected through structured questionnaire. A sample of 200 consumers was
selected. Convenience Sampling Method was adopted for selecting the consumers. The study found
that i) celebrity endorsers do have influence on buying behaviour of consumers. Moreover celebrity
persona helps in brand recognition, helps in gaining attention and saves the brand from clutter. ii)
Bollywood stars are more effective than other type of celebrity persona. iii) 39.5% of respondent
strongly agree and 40% of respondent agree on that there should be a personality match between
product and celebrity because if there is a match between personality of product and celebrity than
consumer can easily associate brand with celebrity and brand recognition is more in such cases. The
study concludes that celebrity endorsement is an effective tool for advertisement but the result will
vary with the sectors therefore proper feasibility study should be conducted before paying off the
handsome amount to celebrity for endorsing a product.

Need for study

Nowadays lot of advertisements is endorsed by the celebrities. Celebrities endorsed advertisements
are more attractive than the non-endorsed advertisements. Moreover the tested attributes of celebrity
show positive relationship with the buying behavior and brand perception as well. It also proved
from the previous review that there is a significant impact of celebrity endorsement on the buying
behavior. Finally, the results of the study further proving that there is a significant impact of celebrity
endorsement on the buying behavior of customers.Famous personalities had great influence on the
consumer’s buying behavior that’s why it becomes the most attractive tool of advertising now a day.

Statement of the problem

From the previous reviews it has identified that celebrity endorsement has significant role in
developing a brand image in the minds of consumer which ultimately influence their buying behavior
and marketers greatly emphasize on these strategies to capitalize, the study was conducted to
measure the influence of celebrity endorsed ads on the purchasing decision on consumer, consumers’
perception towards endorser and product endorsed and how these perceptions influence their
purchase decision.

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 Objectives of the study

The research objectives of this research are as follows:

• To explore the consumers’ perception towards brands and celebrity endorsement.
• To identify the influence of celebrity endorsement on consumer buying behavior.
• To measure the impact of advertisements endorsed by celebrities on buying behavior of consumer.

Scope of the study

This study will be examining how celebrity is effective for endorsing the products and how
companies can make their brand much more powerful in their customer’s mind through this
communication tool. Therefore, the study undertaken by researcher was focused on “A STUDY ON
IMPACT OF CELEBRITY ENDORSEMENTS ON CONSUMER BUYING BEHAVIOUR”

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 CHAPTER 3

Research Methodology

The present study entitled, “Impact of Celebrity endorsement on Consumer buying behaviour” is
Empirical in nature, where consumers of different age groups will be asked to give their views about
the influence of celebrity endorsement on Consumer buying behaviour.

RESEARCH DESIGN:
The research is descriptive and hypothesis testing in nature. Primary and secondary data sources
have been collected.

SAMPLING

Sampling technique:
The sampling technique used for this study is convenience sampling (or haphazard sampling).It
involves selecting haphazardly those cases that are easiest to obtain for sample. The sample selection
process is continued until the required sample size has been reached. Under convenience sampling
respondents are selected on the basis of proximity, ease of access and willingness to participate. It
enables the researcher to gather information from the targeted group of people easy and quickly.

Sample Size
 For this research we aim for a minimum of 100 samples.
 Survey Method in the form of questionnaire.

Sample Unit
 Some random samples are to be taken from different places of Bangalore such as Shivajinagar,
Majestic & Whitefield.

Hypothesis

Source of data

Primary data involves the method which is collected specifically for the research project being
undertaken further states that data collected through primary sources is more relevant and consistent
with the set objectives to the study. Only primary data can help answering the questions related to
people‘s attitudes, intentions and buying behaviour. The primary data is a central source for this
study. Thus we have adopted survey strategy using Self-administered questionnaire technique in
order to collect primary data for this study. Secondary data includes textbooks, surveys, reports,
newspapers, magazines, articles, video recordings etc. The extent of secondary data available
provides the base for a strong literature review and secondary research analysis. The availability of
the secondary data enhances the existing knowledge of the researcher and offers guidance for
primary data collection
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 Tools of data collection

Surveys and Questionnaires: The present study is based on both primary and secondary data. The data for
the study will be compiled mainly from the primary sources through a structured questionnaire.

Plan of analysis

To analyze the research outcome the results of descriptive analysis of all dependent and independent variables
are decide.

Limitation of the study

This research has the following limitations:

 The research is concise to study consumer’s perception towards products.
 The area of research is restricted to Bangalore and the sample size was 100 – Male and Females of
different age and preferences.
 The major constraint for this research is time.

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 CHAPTER 4
Analysis and Interpretation:

Table no.1 Gender of respondents

Gender Respondents Percentage
Male 55 54.9%
Female 44 44.1%

Pie Chart for Gender of respondents

Above Pie charts represents the data of sex of respondents. Response has been collected from both male and
female. But there are 55% of respondents were Male and 44% were Females.

Table no.2 Through which media respondents come to know about the products?
Media Respondents Percentage
Print media 24 23.7%
Word of mouth 20 19.6%
Electronic media 55 54.6%
Digital media 3 3%
Total 102 100%
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 Pie chart for Media used
From the data it can be found that though which media respondents come to know about the products
decision of respondents are as under : 54.6% of people have selected electronic media , 19.6% have selected
they come to know about product by word of mouth and 23.7 % of people have selected they come to know
through print media and other have 4.1% include digital as well.

Table no.3 Does a celebrity endorsing a product actually uses it

What do you think Respondents Percentage

Yes 30 29%
No 22 22%
May be 50 49%
Total 102 100%

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From the survey it was found that amongst 102 respondents, 29% opinion that the celebrities are also using
those products which they are endorsing, 22 % people believe that celebrities are not using those products
which they are endorsing, and remaining 49 % are not sure.

Table no.4 Celebrity endorsement is an effective tool.

Celebrity is effective tool Respondents Percentage

Strongly agree 23 22.8%
Agree 45 44.6%
Indifference 21 20.8%
Disagree 8 7.9%
Strongly disagree 4 3.9%
Total 102 100%

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 Pie chart for celebrity as an effective tool
From the data it can be found that celebrity endorsement is an effective tool of persuasion of a buying a
product decision of respondents are as under : 22.8% have strongly agreed it ,44.6% of people have agreed
it, 20.8% has given their response to indifference and 7.9 % of people have disagreed it and rest 3.9%
people have strongly disagreed.

From the data it can be found that Male Endorsers is more effective as compared to Female Endorsers celebrity
decision of respondents are as under : 26.3% have strongly agreed it ,38.4% of people have agreed it , 17.2% has
given there response to indifference and 13.1 % of people have disagreed it and rest 7% have disagreed it.

Table no.5 which celebrity you like the most

Celebrities Respondents Percentage

Bollywood stars 38 37.6%
Sports star 34 33.7%
None of above 29 28.7%
Total 102 100%

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 Pie chart for most liked celebrity

From the survey it was found that amongst 102 respondents, 37.6 % people opinion that they like to see
Bollywood stars and 33.7% people like to see Sports Star as endorser whereas 28.7% like to see Freshers.

Table no.6 what influences purchase?

Influences Respondents Percentage

Cost 21 20.4%
Celebrity 19 18.4%
Quality 61 60.2%
Brand 1 1%
Total 102 100%

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 Pie chart for purchase influences

From the data it can be found that the factors influencing the purchase decision of respondents are as under :
4% of people get influenced by cost, 18.4% selecting on the basis of celebrity endorsing the product,60.2 %
on the basis of quality of the products, 20%, and remaining 3% gives more emphases to Brand.

Table no.7 Product sales are higher because of celebrity advertisement

Product sales Respondents Percentage

Yes 44 43.1%
No 18 17.6%
May be 40 39.2%
Total 102 100%

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 Pie chart for higher sales

From the survey it was found that amongst 102 respondents, 43.1% opinion that the product sales are higher
because of celebrity advertisement, 39.2 % people don’t think so and 17.6% opinion was may be.

Table no.8 Celebrity makes difference to the image of the brand

Image of brand Respondents Percentage
Strongly agree 19 18.6%
Agree 54 53.9%
Indifference 19 18.6%
Disagree 7 7.2%
Strongly disagree 4 3.7%
Total 102 100%

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 Pie chart for image of the brand
From the survey it was found that amongst 102 respondents, 18.6% strongly agree opinion that celebrity
makes difference to the image of the brand,53.9%people agrees it, 18.6 % people goes with neutral and
7.2% opinion was they disagreed whereas 3.7% people strongly disagreed it.

Table no.9 Celebrity has the power to change our perception

Change in perception Respondents Percentage

Strongly agree 4 7.9%

Agree 30 29.4%

Indifference 34 33.3%

Disagree 19 18.6%

Strongly disagree 15 14.7%

Total 102 100%

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 Pie chart for power to change perception
From the data it can be found that the celebrities has the power to change our perception decision of
respondents are as under : 14.7% of people strongly agreed it, 29.4% of people agrees it,33.3 of people
voted for neutral and 18.6 % people disagreed it , remaining 6% people strongly disagreed it.

Table no.10 Celebrity holds the viewer attention

Viewers attention Respondents Percentage

Strongly agree 8 7.9%

Agree 38 37.6%

Indifference 25 24.8%

Disagree 10 9.9%

Strongly disagree 20 19.8%

Total 102 100%

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 Pie chart for holding viewers attention
From the survey it was found that 19.8% of people strongly agreed on opinion that celebrity holds viewers
attention, 37.6% agreed it,nearly 24.8% given opinion neutral and 9.9% of people disagreed it whereas 7.9%
people strongly disagreed with it.

Table no.11 Ads having celebrities are more effective.

Celebrities are more effective Respondents Percentage

Strongly agree 8 17.6%

Agree 38 38.2%

Indifference 25 24.5%

Disagree 10 13.7%

Strongly disagree 20 6%

Total 102 100%

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 Pie chart for ads having celebrities are more effective

From the survey it was found that amongst 102 respondents, 17.6 % people strongly agreed with opinion
that Ads having celebrities are more effective, 38.2% people agreed it, 24.5% people responded neutral to it,
13.7% people disagreed it and 6% people strongly disagreed it.

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Chapter 4
FINDINGS:
1. Celebrity endorsement enhances product information and creates awareness among
consumers. It helps them to recall the brands of the endorsed products.
2. Celebrity Endorsed Ads persuade customers to purchase products rather than non
celebrity endorsed Ads, Comic character Ads, Executive Ads and Fiction Ads.
3. A good number of respondents believe that celebrities are not using those products
which they themselves endorse.
4. Most of the respondents believe that frequent changes in celebrity for advertising
the product reduce the purchasing decision of customers.
5. The purchase attitude is influenced by the Quality of the products rather than
endorsement factors, price of the product, Discounts and offers etc
5. Famous personalities are playing major role in creating an impact than Sports
personalities and other Film stars.
6. A good number of respondents believes that the quality of Goods advertised by
celebrities may be are may not be good in quality.

SUGGESTIONS:
1. Celebrity endorsements will be more effective when used consistently over time to
increase the strength of the link between the celebrity and the endorsed brand.
2. Celebrity endorsements will be more effective when the ad execution is simple,
clean and free of irrelevant design elements.
3. Celebrity endorsements will be more effective when using a celebrity who is not
already strongly associated with another product or service.
4. Celebrity endorsers will be more effective for brands for which consumers have
limited knowledge/facts.
5 Celebrity endorsements will be more effective when there are not frequent changes
in celebrities who are endorsing the products.
6. Celebrity endorsements will be more effective when Famous personalities are used
rather than film stars, cricketers.
References
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1. Mishra Prashant, Dhor Upinder and Raotiwala Saifuddin “Celebrity endorser and Adolescent: A
study on Gender influences”, Vol.26, Issue.4, 2001, pp. 56-65.
www.vikalpa.com/pdf/article/2001/2001_oct_dec_059_066.pdf
2. Varsha Jain, Mari Sudha and Aarzoo Daswani, Customer Perception about Celebrity Endorsement
inTelevision Advertising for Retail Brands, The IUP Journal of Brand Management, Vol. VI, Nos. 3
& 4, pp.7-25, September & December 2009. Available at: SSRN:http://ssrn.com/abstract=1531470
3. Bahram Ranjbarian, Zahra Shekarchizade and Zahra Momeni, “ Celebrity Endorser Influence on
Attitude Toward advertisements and brands”, European Journal of Social Science, Vol. 13, No. 3,
2010, pp. 309-404.
4. Bhavana Sindhu, “is celebrity endorsement a midas touch or a landmine”, Gurukul Business Review
(GBR), Vol. 7, spring 2011, pp.81– 86.
5. Dr.Ajit Shringarpure and archana Dadhe, “Celebrities as brand endorsers- An Analytical Study”,
International journal of Research in Commerce & Management, Vol. 3, Issue. 2, Feb. 2012, pp. 39-
42.
6. Priyanka Shah and Anu Gupta, “Role of celebrity endorsement on purchase behaviour”, International
journal of Research in Commerce & Management, Vol. 4, Issue. 2, Feb. 2013, pp. 147-149.

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