MEDI-CAPS UNIVERSITY

INDORE

PROJECT REPORT ON

“Impact of Celebrity Endorsement on Customer Purchase

Decision, at Indore ”

Submitted as Partial Fulfillment for

Degree of Master of Business Administration to Medi-Caps University,
Indore

2016-2018

SUBMITTED BY – SUBMITTED TO –
 Research Project Contribution And
Evaluation:-
Synopsis Project Total
Percentage Submission Viva Marks
S No. Name of Student Remarks
Contribution
(5 marks) (15 marks) (20 marks)

Chirag Khanderia

1 (Group Leader) 85

(MS17MS501053)
Chanchal Gurjar
2 70
(MS17MS501049)
Chandradeep Singh
Jhala
3 77
(MS17MS501050)
Chetan Parihar
4 75
(MS17MS501051)
Chetan Sisodiya
5 65
(MS17MS501052)
Deepak Sharma
6 60
(MS17MS501054)
Deepali Thakur
7 70
(MS17MS501055)
Deepika Sharma
8 68
(MS17MS501056)
Deepmala Pathak
9 80
(MS17MS501057)

10 Devkant Dixit 60
 (MS17MS501058)

CERTIFICATE

This is to certify that the Project work entitled " Impact of Celebrity Endorsement on
Customer Purchase Decision, at Indore" is being submitted by Chirag Khanderia, Chanchal
Gurjar, Chandradeep Singh Jhala, Chetan Parihar, Chetan Sisodiya, Deepak Sharma, Deepali
Thakur, Deepika Sharma, Deepmala Pathak, Devkant Dixit in the partial fulfilment of the
requiremen for the award of the degree of M.B.A. from Medicaps University Indore. It is
Completed under my supervision and during this project, I found the group members
responsible, sincere and hard working. I recommended this piece of work for acceptance as
research project for the degree of M.B.A. from Medicaps University, Indore.

GUIDE

Dr. D. Talwar

ACKNOWLEDGEMENT
We would like to acknowledge and extend our gratitude to the following persons who have made
the completion of this project possible Firstly we are thankful and express our gratitude to Dr. D.
TALWAR, Medicaps University, Indore who have inspired us and guided us throughout the
period of project work that enabled us to successful completion the project.

We are also grateful to Medicaps University, Indore for providing all necessary facilities in
bringing out the project report. Special regard and greatest appreciation is reserved for all the
faculty members of Medicaps University, Indore whose honest feedbacks, ideas and thoughts
helped us navigate through the most difficult phases of our project work.

We are pleased to say that the whole report is just the presentation of the facts that have been
found during the project through different sources and its each sentence is an exact
representation of the information obtained and the analysis thereof. We hope that we have
manifested our sincere attempts to represent all the information and other things to the best of
ability.

Name Chirag Khanderia (MS17MS501053)

Chanchal Gurjar (MS17MS501049)

Chandradeep Singh Jhala (MS17MS501050)

Chetan Parihar (MS17MS501051)

Chetan Sisodiya (MS17MS501052)

Deepak Sharma (MS17MS501054)

Deepali Thakur (MS17MS501055)

Deepika Sharma (MS17MS501056)

Deepmala Pathak (MS17MS501057)

Devkant Dixit (MS17MS501058)

 DECLARATION

We hereby declare that the Project on "Impact Of Celebrity Endorsement on Customer

Purchase Decision, at Indore" is a record of original work carried out by us under the
supervision of Dr. D. Talwar towards partial fulfilment of the requirements for M. B. A. course
of Medicaps University Indore. We further declare that to the best of our knowledge this work is
not submitted anywhere else for the award of any degree or diploma

PLACE: MedicapsUniersity,Indore

DATE: 23/4/18

Name Chirag Khanderia (MS17MS501053)

Chanchal Gurjar (MS17MS501049)

Chandradeep Singh Jhala (MS17MS501050)

Chetan Parihar (MS17MS501051)

Chetan Sisodiya (MS17MS501052)

Deepak Sharma (MS17MS501054)

Deepali Thakur (MS17MS501055)

Deepika Sharma (MS17MS501056)

Deepmala Pathak (MS17MS501057)

Devkant Dixit (MS17MS501058)

 INDEX
S. no. Particulars Page no.
Acknowledgement
Declaration by the Student
1. Abstract
2. Introduction

3. Literarture Review

4. Rationale of study

5. Conceptual Framework

6. Research Methodology

7. Data Analysis and Interpretation

8. Findings

9. Conclusion
10. Recommendations
11. Limitations
12 Future Scope
13. Reference
14. Webliography
15. Appendix
 1. ABSTRACT:-

The research was based on the study of impact of celebrity endorsement on customer purchase
decision. The celebrity endorsement is a marketing strategy that makes a product differentiable
in this competitive era. The main purpose of the study was to identify the impact of celebrity
endorsed advertisement on customer purchase decision. The research was conducted on
cosmetics products used by customers in Indore city. The endorsement of celebrities in india
increase in the last 18 years. Celebrity advertisement is considered as an effective marketing
strategy between the marketer and consumers. A good number of companies have adopted this
strategy as an effective tool to penetrate the product into the cosmetic market. For this purpose,
with help of 100 respondents were selected and data were collected through structured
questionnaire.

2. INTRODUCTION:-

2.1 Domain Area of the research -

2.1.1 Celebrity Endorsement:-

Celebrity endorsement is a form of advertising campaign or marketing strategy used

by brands, companies, or a non-profit organization which involves celebrities or a well-known
person using their social status or their fame to help promote a product, service or even raise
awareness on environmental or social matters. Marketers use celebrity endorsers in hopes that
the positive images of the celebrity endorser of the brand will also be passed on to the products
or the brand image associated with the celebrities. Celebrity endorsement is usually commonly
used by fashion or beauty brands.

2.2 Industry Brief of the research:-

While the cosmetic industry is considered a “mature” industry (that means business people don’t
expect much significant growth) it is a pretty reliable industry. No matter what, people want to
smell and look good so even when the economy hits a recession people will still buy products.
The Indian cosmetics industry is majorly categorized into skin care, hair care, oral care,
fragrances, and colors cosmetics segments. It currently has an overall market standing of USD
6.5 billion and is expected to grow to ~ USD 20bn by 2025 with a CAGR of 25%. In
comparison, the global cosmetics market is growing steadily at 4.3% CAGR and will reach
~USD 450 billion 2025. This means that by 2025, India will constitute 5% of the total global
cosmetics market and become one of the top 5 global markets by revenue.

2.2.1 What are Cosmetic Products?

Government of India under THE DRUGS AND COSMETICS ACT, 1940 defines Cosmetic as
follows: “Cosmetic” means any article intended to be rubbed, poured, sprinkled or sprayed on, or
introduced into, or otherwise applicable to, the human body or any part thereof for cleansing,
beautifying, promoting attractiveness, or altering the appearance, and includes any article
intended for use as a component of cosmetic. (India, 1940)

2.2.3 Leading cosmetic companies in India:-

1. Lakmé is the Indian brand of cosmetics, owned by Unilever. It started as a 100% subsidiary of
Tata Oil Mills (Tomco), part of the Tata Group; it is named after the French opera Lakmé, which
itself is the French form of Lakshmi, the goddess of wealth who has is also renowned for her
beauty.
2. Revlon is an American cosmetic for skin care, fragrance, and Personal Care Company founded
in 1932.
3. Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by
the brothers Jonas AF Jochnick and Robert AF Jochnick.
4. The L’Oréal Group is the world’s largest cosmetics and Beauty Company. It concentrates on
hair colour, skin care, sun protection, make-up, perfumes and hair care.
5. Chambor cosmetic line is a blend of the finest traditions in terms of radiant color, soft texture
and skin accentuator.
6. Maybelline is a makeup brand sold worldwide and owned by L’Oréal.
7. Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140
countries across the world.
8. Make-up Art Cosmetics or MAC Cosmetics, is a manufacturer of cosmetics which was
founded in Toronto, Canada by Frank Toskan and Frank Angelo in 1984
9. ColorBar cosmetics are one of the leading brands of color cosmetics in India.
(indianmirror.com)
2.3 SWOT ANALYSIS OF COSMETIC INDUSTRY:-

 Strenth

Cosmetic industry has one of the industry has huge potential for further growth in future
and present days. It is contributing in the economic growth of country. If we look around
we find that what existed 20 years ago in cosmetic industry has totally changed. Fast
innovation and new retail concepts are keys to this booming in industry. Most of the
market leaders have the presence in major markets.many brands of cosmetic industry are
available in the market.consumer spends more money in cosmetic products.

 Weakness

Cosmetic Industry is bound to depression and declination. Product prices are invariable;
prices of cosmetic products keep on changing according to market trends. Indian
consumers are price conscious and demand value for costly products. Promotion budget
are getting bigger due to competition. industry is dominated by market leaders. Due to
lack of distribution network, some international brands have less presence in the rural
market.

 Opportunities

Aging baby-boomers, who have the high spending power, spend more of money on
cosmetic products. The Emerging markets that have high economic growths i.e., Europe,
Latin America, and Asia are replacing the matured and developed western markets.
Future growth will depend on strategy to grow through Merger & Acquisition to increase
global presence. Cosmetic Market are main focuses on developing countries .

 Threats

The regulatory system is complex. most of the time new launched products are vulnerable
to uncertainty of regulatory review. Some products face recall from the market. Many
countries banned animal test so , alternatives of animal tests would increase
manufacturing costs in future. Market leaders dominate the cosmetic industry, so lot of
pressure exit on smaller companies in terms of quality and price of products.

2.4 ENVIRONMENTAL ANALYSIS OF COSMETIC INDUSTRY:-

 The Threat Of Established Rivals-

The rivalry in cosmetic industry is very high. There is a present scenario of various
domestic companies and International companies in the market. The Indian cosmetic
industry is marked by presence of few companies with global presence, which has the
larger share of cosmetic market.

 The Threat Of New Entrants-

New company have to compete with large cosmetic companies. Most of the
multinational companies invest good amount of capital for research and development and
marketing expenditures. For new entrant a capital required for business is huge. A major
challenge for new companies are advertising and positioning of product in the minds of
consumers, as market is flooded with many national and international brands. They have
lot of promotion of their products Another issue is price sensitive market. The new
entrants have had to work out innovative strategies to satisfy Indian desires and budgets
to establish a hold in the market. They have introduce product in best quality with
minimum cost.

 The Threat Of Substitute Products-

In Porter’s theory threat of substitutes exists when a product’s demand is affected by the
price change of substitute product. The consumers have a lot of brand choice as cosmetic
market is flooded with many brands. Due to this demand product becomes more elastic.
So the threat of substitute is low.

 Buyer Power-
Consumer buying power is very high. To retain consumers is very challenging task. In
cosmetic industry consumers do not always choose one brand of cosmetic product
because the switching costs are very low. This means that buyer power is high and
demand for favorable prices. Brand awareness is more in urban India, but brand loyalty is
less towards the products, whereas brand awareness is less in rural India and brand
loyalty is more. This is show the various brand available for customers.

 Bargaining Supplier Power-

Buyer supplier power is moderate. Suppliers in cosmetic industries are fragmented.
Suppliers in cosmetic industry are interlinked together. Suppliers are often are
insignificant in scale compared to major cosmetic manufacturers. Chemical producers
have wide variety of sources to earn revenues; they are not completely dependent on
cosmetic manufacturers. They have different sectors for earn revenues.
 3. LITERATURE REVIEW:-

Bhatt Kruti (2017):-

Objective - To identify the factors motivating consumer buying decision towards

cosmetic products. To study the consumers attitude, preferences intention and decision
towards cosmetic products. To identify the most preferred cosmetic brands by
repondents.

Methodology- Descriptive research has been used for this research. Both primary and
secondary data have been used for the research data has been collected through survey
technique with structure questionnaire

Results- As cosmetic industry in India is one of the growing industry, marketers

should know about the factors affecting purchase decision along with the attitude
perception in learning habits of consumers towards cosmetics

 Johnson B(2016):-
Objectives To evaluate the trends in celebrity endorsement with respect
Tcommercials, according to product categories.

Methodology; To study the use of celebrities in television advertisements proforma

containing different questions covering various aspects of the study was prepared here
all the advertisements which appeared on various TV channels during prime time were
recorded.

Results: Celebrity endorsement can be seen as a powerful and effective marketing

strategy which helps to enhance brand recall and recognition. Companies invest large
sums of money for capturing celebrities as spokespersons.
 Rukhsar Aroobah (2016):-
Objectives: To find out relationship between physical appearance and purchase
intention. To find out the relationship between expertise and purchase intention and to
find out the relationship between congruity and purchase intention.

Methodology: The primary nature of the research is quantitative and narrative as we

intend to explore the consumers behaviour and attitude towards celebrity endorsement
in advertisement.

Results: From the study of impact of celebrity endorsement in advertisement analyse

the brand manager to focus on the quality more than the cost put on those celebrities
who are being hired for promotion of the product

 Khan Afasheen (2016):-

Objectives: To explore the consumers perception towards face care products and
celebrity endorsement. To study the influence of celebrity endorsement on consumers
purchase decision to identify key factors of celebrity endorsement which can
influence consumers purchase decision.

Methodology: The research is based on primary data which is collected through the
questionnaires however help of secondary data is also taken from existing journals.
The research not only limited to face care products but finding of the study is also help
to for other cosmetic and fashion brands.

Results: The study is conducted in Karachi city the aim was to analyse the influence
of celebrity endorsed advertisements on consumer purchase decesions.

 Prasad Jayanthi(September 2013):-

Objective: To find how celebrity endorsement influence the consumer purchase

decision.

Methodology: The experimental data will be used to develop the hypothesis. Using
nine point emantic scale, each subject will be asked to do the following (1)to rate the

attributes (2) to rate the quality of the product based on the direct and indirect

information found in ad (3) to rate their impression of the performance of each

brands, then the recall of the endorsement depend entirely on the power of the

brand.
 Bafna Apoorv( may 2016) :-

Objective: To study the influence of celebrity endorsement on the consumer

behaviour for facial care product. Methodology: This study has been focused on the
facial care product with respect of indian facial care market

Results: The majority of the population uses the facial care products under the skin
care segment. Hence, we made this research more focused by considering only facial
care products. We also find out that Facial care product have a very high number of
celebrity endorsement under its umbrella.

 Seedani Kumar Sumeet (june 2016):-

Objective: To analyse that which factor of celebrity attracts more to the public. To
analyse influence of brand over celebrity endorsement Methodology: Theoretically
framework describes the overall topic of the study, as its shows that there are several
attributes of celebrity, here we discuss main three attributes which is attractiveness
which includes the beauty, charm, look etc. the other attributes includes
trustworthiness, reliability, authority etc. Conclusion: The concludedthat the celebrity
endorsed ad are more attractive than the non celebrity endorsed ads.

 Kumar Hemanth A.H ( may 2008):-

Objective : The purpose of this study to investigate internal and external influences
on consumer purchase decision on cosmetic

products in Tamilnadu and Kerla.

1 To find how consumer buying behaviour factors influence consumers when

purchasing cosmetic products

2 To study influence of income level of the respondent on consumer buying behavior

dimension.

Methodology: The questionnaires o were given to 500 respondent who are all using

cosmetics. Out of which 412 questionnaires where received with required coverage
detail.

Results: After analysis we found that small difference exist in the income level that

implies the different groups prefer or opinion differs on consumer buying behaviour. It

created a curiosity to us to find ourt which group really differing on the opinion.
 Sharma Rajesh (2015):-

Objective: To find out the relationship between congruity and purchase intention. :
To find out relationship between physical appearance and purchase intention.
Methodology: The pre test was used to access the clarity of the questions and
reliability of the measures of the variables. The research employed mall intercept
survey technique to collect consumer information.

Results: The importance and value of celebrities to brands cannot be ignored. Our
study makes a contribution towards understanding of the Indian luxury market by
understanding the relationship between celebrity endorsement and brand loyalty
between celebrity endorsement and perceived quality.

 Sathya . R (2014):-

Objective To find the socio-economic profile of the consumer, To know the

influence of celebrity endorsement on the consumer’s purchase decision.
Methodology- Customer base which includes high income, middle income and low
income groups. A sample of 200 respondent is selected

Results- There is no doubt about a celebrities power on popularizing brands.

Celebrities attract the attention, create interest to see the particular advertisement can
provide a point of differentiation, increase the advertising impact and if delivered in
the correct manner can be quite effective.

 Giridhar K.V. (2014):-

Objective-To identify the factor that motivates and effect the purchase attitude of
consumer at Shimonga. To analyse factor which influence the purchase attitude of
consumers at shimonga. To identify drawbacks with celebrity endorsement.
Methodology- Customer base which includes high income, middle income and low
income groups. A sample of 180 respondent is selected in city shimonga.

Results- celebrity endorsement enhance product information and create awareness

among consumers. It helps them to recall the brand of the endorsed product. The
consumer are induced significantly by the celebrity endorsed when the target is on
quality and price.
  Haghirian & Madlberger (2005):-

Objective- A number of research studies reveal that use of eye-catching celebrity serve as
a foundation to enhance feelings towards the ads.

Results - This mind-set to the commercials

is identified as psychological circumstances that be exercised by persons to
systematize the manner, how to recognize the surroundings as well as organize
the manner a person react towards it

Key Words: Celebrity Endorsement, Purchase Intention, Consumer purchase decision

 1. RATIONALE OF STUDY :-

This study is to identify the customer purchase desicion are impacted by celebrity
endorsement. This research has been made to find out whether, the celebrities triggers the
awareness of the brands, what are starting point of buyers desire, on which category of product,
will be bought through the impacted from them. And, which segment or product could be
influenced by the celebrities on a purchase decision.whats the opinion of perception of
consumers regarding multiple endorsement celebrities, what traits of celebrity viz, image,
reliability, glamour etc has impressed them, and whether the consumers are satisfied with the
celebrity endorsement.
 4. CONCEPTUAL FRAMEWORK :-

Conceptual Model : -

5.1Conceptual Definitions Of Independent Variable And Dependent Variable:

 Celebrity Endorsement (Independent Variable):

Endorsements are a form of advertising that uses famous personalities or celebrities who
command a high degree of recognition, trust, respect or awareness amongst the people. Such
people advertise for a product lending their names or images to promote a product or service.
Advertisers and clients hope such approval, or endorsement by a celebrity, will influence buyers
favorably.(The Economics Times)

 Customer Purchase Decision (Dependent Variable):

The term consumer decision produces an image of an individual evaluating the attributes of a set
of products, brands, or services and rationally selecting the one that solves a clearly recognized
need for the minimum cost.
5.2 Operational Definitions Of Independent And Dependent Variables:

 Celebrity Endorsement (Independent Variable):-

Independent variable is considered as ‘CELEBRITY ENDORSEMENT’ and following are

the parameters on which the we the independent variable can be measure –

o Attractiveness:

The concept of attractiveness does not only entail the physical attractiveness. Attractiveness also
entails concepts such as intellectual skills, personality properties, way of living, athletic
performances and skills of endorsers (Erdogan, 1999).

o Credibility:

Credibility is “the extent to which the recipient sees the source as having relevant knowledge,
skills, or experience and trusts the source to give unbiased, objective information” (Belch &
Belch, 1994, page 189).

o Trustworthiness:

Trustworthiness refers to “the honesty, integrity and believability of an endorser” (Erdogan et al.
2001, page 40).

 Customer Purchase Decision (Dependent Variable):

For the following report the dependent variable is considered as ‘CUSTOMER

PURCHASE DECISION’ and following are the parameters to measre the
Dependent Variable:
o Cost:
As per Institute of cost and work accounts (ICWA) India, Cost is ‘measurement in monetary
terms of the amount of resources used for the purpose of production of goods or rendering
services.’
o Quality:

W. Edwards Deming defined “Good quality means a predictable degree of uniformity and
dependability with a quality standard suited to the customer”.

o Brand:

Philip Kotler /Gary Armstrong(principles of marketing ) defined “ A brand is defined as a name,

Term ,sign symbol that identifies the maker or seller of the product”.

1.3 Objectives Of Research:-

Primary objective –

1.To find impact of celebrity endorsement and customer purchase decision.

Secondary objective --

2. To identify the impact of attractiveness on customer purchase decision.

3. To identify the impact of credibility on customer purchase decision.

4. to identify the impact of trustworthiness.

5.4 Hypotheses :-
 o Null Hypotheses-

H01- There is no significant impact of celebrity endorsement

on customer purchase decision.

H02- There is no significant impact of attractiveness on customer purchase decision.

H03- There is no significant impact of credibility on customer purchase decision.

H04- There is no significant impact of trustworthiness on customer purchase decision.

o Alternative Hypotheses:

H11- There is significant impact of celebrity endorsement on customer purchase decision.

H12- There is significant impact of attractivenesss on customer purchase decision.

H13- There is significant impact of credibility on customer purchase decision.

H14- There is significant impact of trustworthiness on customer purchase decision.

 5. RESEARCH METHODOLOGY:-

Research Design:-
this study are based on conclusive research This based on personal opinions of respondents
emanating from their perceptions and perspectives of the subject matter.  Causal Research is
the most sophisticated research market researcher’s conduct. Its goal is to establish causal
relationships—cause and effect—between two or more variables[i]. With causal research,
market researchers conduct experiments, or test markets, in a controlled setting. Researchers
study how a dependent or response variable—brand sales or brand preference—is affected by
changes in a variety of predictor or independent variables: retail price, advertising spending,
advertising copy, or other promotional activities. Causality is often expressed as an if/then
statement: If X happens, and then Y will occur.

Sample Size:-
A sample of 101 respondents is selected from Indore. Sample size measures the number of
individual samples measured or observations used in a survey or experiment. Large sample
sizes are needed for a statistic to be accurate and reliable, especially if its findings are to be
extrapolated to a larger population or group of data.

Sampling Method:-
In this research probability method are used. A probability sampling method is any method of
sampling that utilizes some form of random selection. In order to have a random selection
method, you must set up some process or procedure that assures that the different units in your
population have equal probabilities of being chosen.

Data Collection Method:-

This research is based on primary data collected from questionnaire with E-form and secondary
data collected from literature review and internet. Primary data means original data has been
collected specially for the purpose in mind .This type of data are generally a fresh and collected
for the first time it is useful for current studies as well as future studies. Secondary data is the
data that have been already collected by and readily available from other sources. Such data
are cheaper and more quickly obtainable than the primary data and also may be available
when primary data can not be obtained at all.

Designing Of The Instrument For The Data Collection:-

A closed with open ended questionnaire with E-form was administered to collect primary data.
The use of questionnaire was justified since it was an effective way of collecting information
from large samples in a short period of time and at a reduced cost. In addition, a questionnaire
facilitates easier coding and analysis of data collected since they were standardized. And
Google Forms enables you to create Web forms that store their data in Google Sheets. This is
so easy to do that anyone who collects data from users will want to learn how to use Google
Forms. You can view the collected data in a spreadsheet, embed the results on a web page, and
view the data graphically to help visualize what it shows. Themes enable you to customize the
look and feel of your form. Item types include text, paragraph, and multiple choices, choose
from a list, scale, or grid.
 Data Analysis and Interpretetion

A sample size of 101 individuals was then selected to answer to the survey

questions. After distributing the questionnaire and E-Form to various people and

collecting the answers within period of one week through survey method.

Demographic variable analysis

GENDER ANALYSIS

Gender % of respondents No. of respondents

Male 51.5% 52
Female 48.5% 49

INTERPRETATION:

51.5% of the respondents are Male and 48.5% of the respondents are Female.
AGE ANALYSIS

Age % of Respondents No. of Respondents

0-15 4% 4
15-30 85.1% 86
30-45 9.9% 10
above 45 1% 1

INTERPRETATION:

4% of the respondents in the age of 0-15. 85.1% of the respondents in the age of 15-30.
9.9% of the respondents in the age of 30-45. 1% of the respondents in the age of above 45.
OCCUPATION ANALYSIS

Occupation % of Respondents No. of respondents

Student 62.4% 63
Businessman 3.9% 4
Housewife 6% 6
Employee 26.7% 27
Farmers 1% 1

INTERPRETATION:

62.4% of the respondents are Students. 3.9% of the respondents are Businessmen. 6% of the
respondents are Housewife. 26.7% of the respondents are employees 1% of the respondents are
farmers.
INCOME ANALYSIS

Income % of Respondents No. of respondents

0-15 72.3% 73
15-30 17.8% 18
30-45 4.9% 5
More than 45 5% 5

INTERPRETATION:

72.3% of the respondents are income in renge of 0-15k. 17.8% of the respondents are income in renge
of 15-30k 4.9% of the respondents are income in renge of 30-45k 5% of the respondents are income
more than 45k
 Correlation Analysis
The highest relationship is among the credibility and customer purchase decision, which is .666 this
show that there is a significant relationship between credibility and the customer purchase decision.
The second highest relationship of credibility with trustworthiness that is .579 followed by the
attractiveness. Secondly trustworthiness has the highest relationship with the credibility, which is .579,
and then with the purchase decision and attractiveness . Thirdly, attractiveness is the highest
relationship with the credibility .562, followed by the purchase decision and trustworthiness. Hence all
sub-variables have significant relationship on buying behavior, where credibility has highest impact with
value of 0.666; while low relationship is attractiveness .473. So we can conclude that all the variables
have significant relationship with each other and they also have high relationship with the customer
purchase decision.
 Correlations

Trustworthiness_
Attractve_total total Credibility_total Decision_toal

Attractve_total Pearson
1 .333 .562 .473
Correlation

Sig. (2-tailed) .001 .000 .000

Sum of Squares
and Cross- 1207.440 475.120 656.760 886.880
products

Covariance 12.196 4.799 6.634 8.958

N 100 100 100 100

Trustworthiness_total Pearson
.333 1 .579 .527
Correlation

Sig. (2-tailed) .001 .000 .000

Sum of Squares
and Cross- 475.120 1690.510 799.980 1168.990
products

Covariance 4.799 17.076 8.081 11.808

N 100 100 100 100

Credibility_total Pearson
.562 .579 1 .666
Correlation

Sig. (2-tailed) .000 .000 .000

Sum of Squares
and Cross- 656.760 799.980 1130.040 1208.020
products

Covariance 6.634 8.081 11.415 12.202

N 100 100 100 100

Decision_toal Pearson
.473 .527 .666 1
Correlation

Sig. (2-tailed) .000 .000 .000

Sum of Squares
and Cross- 886.880 1168.990 1208.020 2914.510
products

Covariance 8.958 11.808 12.202 29.439

 Regression Analysis
Model Summary
Model summary of, impact of celebrity endorsement on customer purchase decision; as per the standard
ratio “adjusted R square” must be more than or equal to 0.6; and hence there is .487 so it suggested that
our model are not fit and should be add more variable use in future researches to measure the impact of
celebrity endorsement on customer purchase decision.

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .698a .487 .471 3.947

a. Predictors: (Constant), Attractveness_total, Trustworthiness_total,

Credibility_total
 Coefficients Analysis
The result of coefficient in this model; where Beta is .464 of the credibility and t value is 4.535 &
p<0.05, which propose that credibility has a significant impact on customer purchase decision.
Moreover, Trustworthiness has t=2.354 & p<0.05, and Atrractiveness has t=1.604 & p>0.05,
therefore, it is further concluded that both Credibility & Trustworthiness has a significant impact
on buying behavior as well as

Since the attractiveness has the negative result , it shows that the increase in attractiveness decreases
the impact on the customer purchase decision . Finally it could be concluded that Celebrity endorsement
has the impact on customer purchase decision.

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 14.163 2.285 6.197 .000

Credibility_total .745 .164 .464 4.535 .000

Trustworthiness total .277 .118 .211 2.354 .021

Attractveness_total .220 .137 .142 1.604 .112

a. Dependent Variable: Decision_total

Therefore, H11 is accepted hence it is proved that there is impact of celebrity endorsement over
the customer purchase decision and H01 is rejected.

Moreover, H13 is also accepted that there is a significant impact of credibility over customer
purchase decision This research also suggested that H14 is accepted, which is that there is a
significant impact of trustworthiness over the customer purchase decision.

This research also suggested that H02 is accepted, which is that there is a no significant impact
of attractiveness over the customer purchase decision.
 Findings

1)51.5% of the respondents are Male

2)85.1% of the respondents in the age of 15-30.

3)62.4% of the respondents are Students.

4)72.3% of the respondents are income in range of 0-15k.

5) Most of the respondents are believe in credibility and trustworthiness of celebrity.

6) Model summary of, impact of celebrity endorsement on buying behavior; as per the standard ratio
“adjusted R square” must be more than or equal to 0.6; and hence there is .487 that is Independent
variable impact only 48.5% on dependent variable .
7) The result of coefficient in this model; where Beta is .464 of the credibility and t value is 4.535
& p<0.05 hence null hypothesis (H02) is accepted.

Conclusion
The study is conducted in Indore city; the aim was to analyze the impact of celebrity endorsed
advertisements on consumer purchase decision. Through the findings of the study and pie chart
representation, it is found that celebrity endorsement is a powerful marketing tool which is
always a centre of attraction to most of the consumers. Consumers perceive celebrity endorsed
advertisement positively as compare to non-celebrity ads. According to the respondents celebrity
endorsed advertisement are more reliable than non-celebrity endorsed advertisement due to
which they preferred trustworthiness and credibility of celebrity to be the influencing factors in
their mind. Therefore through this feature celebrities deliver their image to the target market
effectively.

Celebrity’s trustworthiness and credibility attribute are the key components on the basis of which
they are chosen as an endorser. Consumers always try to choose the product that matches with
his/her image that is why majority of the respondent preferred credibility of the celebrity that
influence their purchase decision and increase the effectiveness of the celebrity endorsed
advertisement. According to the respondents it is concluded that celebrity endorsed
advertisements have the influence on their purchase decision. Celebrity is not sufficient to
influence the consumer decision alone but it also depends on brand as well to establish its image
in the mind of consumer which can make it possible through offering quality product according
to consumer’s need.

Most of the respondents are choose the credibility and trustworthiness of celebrities to a
important factor of purchase decision. When increases in the attractiveness decrease impact on
customer purchase decision.

Recommendation
 From the study of “impact of celebrity endorsement in advertisement” analyze the brand manager to
focus on the quality more than the cost put on those celebrities who are being hired for promotion of
the product.

 As we know that buying intention of the consumer changes due to advertisements of representing the
product and we realize that people get easily attracted towards those products in which celebrities are
endorsed in advertisement and publication.

 Marketers need to be smart enough to choose celebrities in their product advertisement as the
personality of celebrity has link with the product what he/she is advertising on media.

 The right choice of celebrity for the right product advertisement is highly profitable for the company.
 We can confidently recommend companies that they should endorse celebrities in their advertisement
because people really follow those celebrities and whatever they market in ads they wish and show
inclination (willingness) to buy it.

Limitations
1) Time was a major constraint for research.
2) Respondents show reluctance towards giving correct information.
3) research method involves structured questionnaire with close ended questions.
It leads to limited outcomes outlined in the research proposal. So the results
cannot always represent the actual occurring, in a generalized form.
4) the respondents have limited options of responses, based on the selection made
by the researcher.
5) This research based on the sample collected from indore city. so sampling error
may be occurred in this study.
 8.Future Scope
The following suggestions are made as reference for researchers who are interested in
conducting subsequent investigations in this field of study:

(1) Expand the range of respondents being surveyed. Surveys can be conducted only in indore
city. Such surveys can also be conducted on respondents from different cities to generalize the
results,

(2) Consider more variable of celebrity endorsement for conducting the future research.

(3) use other advertising approaches. Researchers may choose different types of advertising other
than celebrity endorsement and make related comparisons.

(4) Consider different industries other than cosmentic industry for conducting the future research
 6. REFERENCES:-

 G. Radha and Jija. P (2013) “Influence of Celebrity Endorsement on the Consumer’s

Purchase Decision” https://www.google.co.in/url?
sa=t&source=web&rct=j&url=http://www.ijsrp.org/research-paper-1113/ijsrp-
p2392.pdf&ved=2ahUKEwikyZzryLbZAhWBzLwKHTh3AI0QFjAAegQICBAB&usg=
AOvVaw1qkK2aVPRf-SPSbijs2xnV { Retrieved on 5/2/2018}
  Dr. P. Rengarajan and R.Sathya (2014) “A STUDY ON IMPACT OF CELEBRITY
ENDORSEMENTON BRAND PERCEPTION AND BUYING BEHAVIOR OF
CONSUMER”38 http://epratrust.com/articles/upload/5.SATHYA.pdf { Retrieved on
5/2/2018}

 CONSUMER BUYING BEHAVIOR AND BRANDING OF A BRAND “

{ Retrieved on 5/2/2018}

 Rizwan Raheem, Sumeet Kumar Seedani, Manoj Kumar Ahuja and Sagar Kumar
Paryani (2015) “Impact of Celebrity Endorsement on Consumer Buying Behavior”38
https://www.google.co.in/url?
sa=t&source=web&rct=j&url=https://www.researchgate.net/publication/282211655_Impact_of_
Celebrity_Endorsement_on_Consumer_Buying_Behavior&ved=2ahUKEwj4laiNo7fZAhVFJpQ
KHXLIDGUQFjAAegQICBAB&usg=AOvVaw31POMrPOONkgl3WJxB53De { Retrieved on
5/2/2018}

 Dr. Sushil Kumar Ahuja and Ashish Kumar (2013) “CELEBRITY ENDORSEMENT
IN INDIA:”
https://www.google.co.in/url?
sa=t&source=web&rct=j&url=http://indianresearchjournals.com/pdf/IJMFSMR/2013/January/3.
pdf&ved=0ahUKEwirwrf1pLfZAhVDxbwKHcSUBMcQFggyMAE&usg=AOvVaw1wp0ZMEE
oFETkb62BW9ncM { Retrieved on 5/2/2018}

 Rossiter, J.R., & Smidts, A., (2012). Print advertising: Celebrity presenters. Journal of
Business Research 65: 8749.
 Saunders, M., Lewis, P., & Thornhill, A. (2012). Research Methods for Business Students
(6. ed.). Harlow, England: Pearson Education Limited.

8.WEBLIOGRAPHY:-

“Celebrity Branding”

https://en.wikipedia.org/wiki/Celebrity_branding {Retrieved on 17/2/2018}

“Indian Cosmetic Industry” http://www.indianmirror.com/industriesindian-/cosmetics.html

(Retrieved on 17/2/2018)
Definition of 'Endorsements'
https://economictimes.indiatimes.com/definition/endorsements (Retrieved on 16/2/2018)

Appendix

Impact Of Celebrity Endorsement On

 Customer Purchase Decision In Cosmetic
Industry at Indore

Dear respondent,

I am student of MBA 2nd sem in medicaps university. I am currently researching on

Impact Of Celebrity Endorsement on Customer Purchase Decision in Cosmetic Industry at Indore, so
give your precious time to fill this survey form. it will take around 2 minutes. The information you
provide will be kept strictly confidential and only for academic purpose

PART A

Please  on appropriate option

S.No. Statement Stongly Disgree Neutral Agree Stongly

Disagree Agree

1 Attractiveness
I feel female celebrity are more attractive
2 I feel male celebrity are more attractive
3
New faces of celebrity attractive for
endorsement(recommend (a product) in an
advertisement)
4 Popular celebrity are endorse the cosmetic brand
5 Only a certain celebrity can successfully endorse a
cosmetic product
6 I am buying the cosmetic product if my favorite
celebrity endorsing it
7 I have chosen a brand because of the celebrity used
it
8 If any inspirational celebrity are endorse any
cosmetic brand then people will buy product of that
brand
9 Popularity of celebrity increases the customers of
cosmetic brand
 10 I am buy cosmetic product are endorsed by right
celebrity at right advertisement
11 Bollywood celebrity are more credible for
purchasing cosmetic brand
12 Sport celebrity are more credible for purchasing
cosmetic brand
13 I often make purchase decision based on celebrity
endorsement for cosmetic product
14 The reputation of celebrity are more important for
endorsing
15 I am consider credibility of celebrity are impact on
purchase decision

PART B

S.No. Statement Stongly Agree Neutral Disgree Stongly

Disagree Agree
1 I feel quality of product impact on purchase
decision
2 I feel quantity of product impact on purchase
decision
3 I feel cost of product impact on purchase decision
4 Celebrity endorsement impact on my purchase
decision
5 Positive endorsement are influence on my purchase
decision
6 I am buy a brand if my favorite
celebrity were endorsing it
7  presence of celebrities in an advertisement
encourage to purchase the products
8 Offline advertisement impact on my purchase
decision for cosmetic product
9 Online advertisement impact on my purchase
decision for cosmetic product

PART C
1.Name –
Please ( ) on appropriate option

2.Gender

Male

Female

3. Age

0-15

15-30

30 - 45

above 45

4.Occupation

Student

Businessman

Housewife

Employee

Others

5.Income

0-15k

15k-30k

30k-45k
 more than 45k

Thank you for filling this survey form