CHAPTER -1

INTRODUCTION

1
 Every day consumer are exposed to a lot of images and voices in television, magazine,
Internet, billboard,newspapers,radio etc.Everybrand tries to steal a of consumer’s attention to
inform the features and attributes of his brand so the plan is to find an element that willhook
the consumer’s attention and thus comes celebrity endorsement.

In thus modern age people tend to ignore all kinds of commercials and advertisement while watching
T.V or flipping through magazines and newspapers even the glamour of a celebrity goes unnoticed.
Thus celebrity endorsement in advertisement and its impact of significance. In this process the
companies hire a celebrity to feature in its advertisement of campaign the promotional features and
the images of the product are matched with celebrity image which tend to persuade its customer’s to
fix his choice from a variety of brands. Although its sounds simple, its requires a depth
understanding of products, brand images, brand objective associating a celebrity with a brand and lot
more for achieving the desired result. Aristotle said Beauty is a great recommendation than any letter
of introduction. This could aptly summarized why numerous products are endorsed by celebrities
whether they benefit from it or not so basically celebrity endorsement means giving a face to a brand.
celebrity endorsement is more than just a strategy to increase its sales and revenue it is decision that
can change the future of a brand forever. Thus the choice of the celebrity is an important decision to
be made, analysing various parameters like appeal, popularity and trustworthiness.

In today’s highly competitive market where each one has a product similar to the rival one can excel
only a few aspects like advertisement, service, and promise of trust or even the price Advertising
seems to the platform where brand to compete on right form hiring the best advertising agencies to
getting the popular celebrities. The general idea behind celebrity endorsement is that when brand
communication messages are delivered by celebrities and famous personalities, they create a higher
appeal, recall and attention than those made by non-celebrities

India is country where people are star struck by film stars, cricketer’s politicians and even criminals.
With a population of one billion and counting everyday people need someone to look up to A sense
of security, admiration and respect and above all someone they aspire to be at some point of their
lives. Clever marketer leverages this celebrity appeal and provides the brand what they want-profit
market share and even brand recall.

2
Despite the potential benefits achieved from celebrity endorsement, they do increase the marketer’s
risks. A brand had cautions while employing celebrities. They should possess the same image as that
of the brand and have the ability to deliver the intended result. Then again one has to ask himself
whether any stakeholders in the company are benefited from celebrity endorsement. Whether mere
presences of an actor actress in an advertisement result in purchase.

Celebrity endorsement cannot guarantee tool proof success. The celebrity endorsement strategy must
be integrated with target market characteristics and other marketing mixes like price, packaging,
product and brand to achieve the intended result. Another important thing to remember is putting a
celebrity in an advertisement is not an idea itself where they become props. What one requires is an
idea that makes a celebrity relevant to the product and the customers. A celebrity’s presence in an
advertisement should be contextual. Marketers spend enormous amount of money annually on
celebrity endorsement.

STATEMENT OF THE PROBLEM

Now a days, celebrity endorsement is more frequently used by marketers in order to promote
their sales. Producers are spending a large portion of their income on these endorsement and
this will be charged to the price of the good which the consumer has to pay. The study
endeavours to analyse how much this celebrity endorsement affect the buying behaviour of the
consumer.

OBJECTIVE OF STUDY

 To study the impact of celebrity endorsement on consumer buying behaviour.

 To understand the effectiveness of celebrity endorsement.
 To understand the consumer perception of celebrity endorsement.

3
SCOPE OF THE STUDY

Celebrity endorsement helps the producer to improve this products awareness. This study will helps
to understand how celebrity endorsement influences the buying behaviour of consumers. The study is
based on the consumers in the Ernakulum District

RESEARCH METHODOLOGY

The study is based on both primary and secondary data. The primary data was collected from 50
respondent through a questionnaire. The secondary data was collected from different sources of
literature like journals, magazine, textbook and internet.

SIGNIFICANCE OF THE STUDY

Celebrities add flavour to the advertisement campaigns and make them colourful attracting the
eyeballs of the millions. It refresh the brand image and helps in quick brand recognition. Association
o a brand with a highly noted celebrity can make it more attractive. The influence of the celebrity
images and its effect on the younger generations has been an issue for quite some time. Thus the
current stuck attempt to analyse the impact of celebrity appeal on purchase intention of consumers.
The current study will provide a clear understanding of the above discussed concept. The study will
be helpful for achieving practioners, marketers, researches and academicians in inferring the impact
celebrity endorsement on consumers.

TOOLS OF STUDY

The data is collected through a questionnaire and analysed by using the following method.

1. Simple percentage analysis.

2. Table and diagrams

4
 LIMITATION OF STUDY

 The response of questionnaire may not give correct information.

 Accuracy of the data depend upon the information provided by the respondent.
 Time of 3 months has been major constrained while performing the market study.
 Sample size of 50 respondent may not necessarily represent the buying behaviour of the
whole population.

PERIOD OF STUDY
The data was collected from November 2017 to January 2018.It took 3 months to complete
the project.

CHAPTERISATION

The way of report is presented in 5 chapter is described in the following ways;

Chapter One reveals on introduction to the study, problem of the study and significance of
conducting the study. it also explains the objective of this study, method adopted to the study,
scope, tools and period of study etc…and lastly the limitation of the study.

Chapter Two deals with industrial profile.

Chapter Three divided into Review of literature and Theoretical framework of the study on
impact of celebrity endorsement on consumer buying behaviour.

Chapter Four analyses the study of celebrity endorsement on consumer buying behaviour.

Chapter Five gives findings, suggestions and conclusion of the study.

5
 CHAPTER-2
INDUSTRY PROFILE

6
Through the 1760s, royal endorsements were used as a type of celebrity branding to promote
products. The first product that used celebrity endorsements was in the 1760s, where Josiah
Wedgwood and Sons, producers of pottery and chinaware, used royal endorsements as a
marketing device to show value in the company and promote others their product (“Celebrity
Endorsement- throughout the Ages,”2004).

In 1875-1900s trade cards were introduced, this is where there would be a picture of a
celebrity with a photo of the product. Typically, these trade cards would be given to
consumers with the product or would be inserted on the packaging of the product itself,
which would feature celebrities such as actors or sport stars.

Cigarette brands became hugely involved in celebrity branding, ‘Kodas’ cigarettes introduced
baseball player cards into the packets of cigarettes as part of a customer loyalty scheme. This
created a demand for consumers to buy more cigarettes so they could gain all the cards of all
baseball players due to celebrity endorsement of cards.

In the early 1930s the major trending celebrity endorsers were athletes, then by 1945 the
trend changed and movie stars were the next big celebrity endorsers. In 1965, colour
television was introduced to the marketing and there was a popular rising demand which was
occurring, this in when television personalities and entertainers became a celebrity
endorsement for communicating services and products.

Companies and firms in 1980s then decided to start making products around celebrities
(“Celebrity Endorsement-Throughout the Ages”, 2004). An example of this is in 1984 when
the company Nike noticed a talented and young basketball player called Michael Jordan.
Michael Jordan then became Nike’s celebrity brand ambassador for their sports industry.
Nike extremely relied on Michael Jordan’s social status to make the brand internationally
well known.

Since companies started making products around celebrities and the celebrity becoming the
brand ambassador for the company, athletes and entertainment celebrity’s then started to
negotiate salaries and pay outs for them representing the company due to competition of other
firms. Due to salaries always increasing because of the demands of the celebrity. Usually
instead of images of them promoting a brand, companies started to hold press conferences
with the celebrity announcing special deals, this meant celebrities had now become a
spokesperson for the firm. As more companies got their celebrity ambassador to hold press

7
conferences and announce special deals, sales for the brands were increasing immensely and
more deals were introduced to the market.

In the year of the 2000s, studies have shown that by having a celebrity ambassador for a firm
has improved sales enormously; such as Nike whom signed Tiger Woods in 1996 saw a
$50million increase in sales on golf balls by 2002 (“Celebrity Endorsement-Throughout the
Ages,”2004).

8
 CHAPTER-3
THEORETICAL FRAMEWORK AND REVIEW
OF LITERATURE

9
ADVERTISEMENTS

An advertisement is anything that draws good attention towards these things. It is usually
designed by an identified sponsor, and performed through a variety of media. Ads appear on
television, as well as radio, newspapers and magazines and as billboards in streets and cities.

Strategic brand positioning and effective communication are keys to success in today’s
market where many brands compete in the same category for the market share.

Advertising is an imperative tool that enables a customer to purchase a product or a service.

Even though companies use various techniques to attract customers toward a particular
product, sometimes, celebrity endorsements will not ensure consumer loyalty. The customer
tends to look at a product, with various prospects like:

Is the product of good quality?

Whether the products exactly meets his or her needs.

If the product is being produced by a well known manufacturer.

To win the customers trust, the brands must convince customers with their continues positive
delivery of the quality of the product.

DEFINITION OF ‘ADVERTISING’

Advertising is a means of communication with the users of a product or service.

Advertisements are messages paid for those who send them and are intended to inform or
influence people who receive them, as defined by the Advertising Association of the UK.

OBJECTIVES OF ADVERTISING

Trial: The companies which are in their introduction stage generally work for this objective.
The trial objective is the one which involves convincing the customers to buy the new
product introduced in the market. Here, the advertisers use flashy and attractive ads to make
customers take a look on the products and purchase for trials.

10
Continuity: This objective is concerned about keeping the existing customers to stick on the
product. The advertisers here generally keep on bringing something new in the product and
the advertisement so that the existing customers keep buying their products.

Brand Switch: This objective is basically for those companies who want to attract the
customers of the competitors. Here, the advertisers try to convince the customers to switch
from the existing brand they are using to their product.

Switching Back: This objective is for the companies who want their previous customers back,
who have switched to their competitors. The advertisers use different ways to attract the
customers back like discount sale, new advertise, some reworking done on packaging, etc.

IMPORTANCE OF ADVERTISING

Advertising is important for the customers:

Just imagine the television or a newspaper or a radio channel without an advertisement! No,
no one can any day imagine this. Advertising plays a very important role in customer’s life.
Customers are the people who buy the product only after they are made aware of the products
available in the market. If the product is not advertised, no customer will come to know what
products are available and will not buy the product even if the product was for their benefit.
One more thing is that advertising helps people find the best products, for themselves, their
kids, and their family. When they come to know about the range of products, they are able to
compare the products and buy so that they get what they desire after spending their valuable
money. Thus, advertising is important for the customers.

Advertising is important for the seller and companies producing the

products :

Yes, advertising plays very important role for the producers and the sellers of the products,
because

 Advertising helps increasing sales

 Advertising helps producers or the companies to know their competitors and plan
accordingly to meet up the level of competition.

11
  If any company wants to introduce or launch a new product in the market, advertising
will make a ground for the product. Advertising helps making people aware of the
new product so that the consumers come and try the product.
 Advertising helps creating goodwill for the company and gains customer loyalty after
reaching a mature age.
 The demand for the product keeps on coming with the help of advertising and demand
and supply become a never ending process.

Advertising is important for the society :

Advertising helps educating people. There are some social issues also which advertising deals
with like child labour, liquor consumption, girl child killing, smoking, family planning
education, etc. Thus, advertising plays a very important role in the society.

TYPES OF ADVERTISEMENTS

There are various ways in which one can go about advertising for their product. Some of the
ways include.

Television advertising/Music in advertising

A commercial advertisement on television (usually abbreviated to TV commercial, ad ad-

film) is a span of television programming produced and paid for by an organization, which
conveys a message typically to a market, a product or a service. Advertising revenue provides
a significant portion of the funding for most privately owned television networks.

Infomercials

An infomercial is a long-format television commercial, typically five minutes or longer. The

word “infomercial” is a portmanteau of the words “information and commercial”. The main
objective of an infomercial is to create an impulse purchase, so that the target sees the
presentation and immediately buys the product through the advertised toll-free telephone
number or website.

Radio Advertising

Radio advertisements are broadcasted as radio waves to the air from a transmitter to an
antenna and a thus, to a receiving device. Airtime is purchased from a station or network in

12
exchange for airing the commercials. While radio has the limitation of being restricted to
sound, proponents of radio advertising often cite this as an advantage.

Online Advertising

Online Advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. An ad server
delivers online ads.

Domain Name Advertising

Domain name advertising is most commonly done through pay per click search-engines;
however, advertisers often lease space directly on domain names that generally describe their
products.

Product Placements

Covert advertising is when a product or a brand is embedded in entertainment media. For

example, when an actor in a film is using a particular brand of cell phone or soft drink and the
brand name is clearly visible.

Press Advertising

Press Advertising describes advertising in a printed medium such as a newspaper, magazine,

or trade journal. This encompasses everything from media with a very broad readership base,
such as a major national newspaper or magazine, to more narrowly targeted media such as
local newspapers and trade journals on very specialized topics.

Bill Board Advertising

Billboards are large structures located in public places, which display advertisements to
pedestrians and motorists. Most often, they are located on main roads with a large amount of
passing motor and pedestrian traffic; however, they can be placed in any location with large
amount of viewers, such as on mass transit vehicles and in stations, in shopping malls or
office buildings, and in stadiums.

13
Celebrity Branding

This type of advertising focuses on using celebrity power, frame, money and popularity to
gain recognition for their products and promote specific stores or products. Advertisers often
advertise their products, for example, when celebrities share their favourite products or wear
clothes by specific brands or designers. Celebrities are often involved in advertising
campaigns such as television or print ads to advertise specific or general products.

Customer Generated Advertising

This involves getting customers to generate advertising through blogs, websites, wikis and
forums, for some kind of payment.

Aerial Advertising

Using aircraft, balloons or airships to create or display advertising media. Skywriting is a

notable example.

CELEBRITY ENDORSEMENT

A form of brand or advertising campaign that involves a well known person using their fame
to help promote a product or service. Manufacturers of perfumes and clothing are some of
the most common business users of classic celebrity endorsement techniques, such as
television ads and launch event appearances, in the marketing of their products.

“Celebrity endorsement is a communication strategy involving the use of celebrities to

advertise for a brand with an eye on increasing the product sales or increasing the awareness
of the brand by leveraging the awareness levels of the celebrity.”

CELEBRITY

A celebrity is a person, who has prominent profile and commands some degree of public
fascination and influence in day-to-day media. A person with great popular appeal,
prominence in a particular field, and is easily recognized by the general public. Various
career within the field of sports and entertainment are commonly associated with celebrity
status. While people may gain celebrity status as a result of a successful career in a particular
field (primarily in the areas pertaining towards sports and entertainment), in other cases,
people become celebrities due to media attention for their extravagant lifestyle or wealth (as

14
in the case of a socialite); for their connection to a famous person (as in the case of a relative
of a famous person); or even for their misdeeds (as in the case of a well known criminal).
Celebrities may be known around the world (e.g. pop stars and film actors), within a specific
country (e.g. a top Australian rugby player); or within a region (e.g. a local television news
anchor). According to Friedman and Friedman, a “Celebrity endorser is an individual who is
known by the public for his or her achievements in areas other than that of the product class
endorsed”. Compared to other endorser types, famous people always attach a greater degree
of attention, recall and loyalty. In this age of intense competition, where capturing a position
in the consumers’ mind space is extremely tough, celebrity endorsements give an extra edge
to the companies for holding the viewers’ attention. Celebrities can catalyze brand acceptance
and provide the enormous momentum that brands require by endorsing the intrinsic value to
the brand.

Erdogan (1999) concludes that celebrities are those people who have well known by the large
number of people, They have special uniqueness and features like magnetism, unusual
standard of living or special skills that are nor commonly experiential in common people.
That it can be said that in society they are different from the common people. Among the
model form of celebrities, actors (e.g. Saif Ali Khan, Shan, Salman Khan, Amitabh Bachan
etc), models (e.g. Pareeniti Chopra, Ali Zafar, Bipasa Basu, Kareena Kapoor etc), sports-men
(e.g. Yousuf Pathan, Shahid Afrid, Sachin Tendulkar,etc,) are significant.

BRAND

The (AMA) classify that brand is a given name, indication, symbol, intend or blend of them
that make one product or service different from other product or service. Brand is all about to
create some associations with the customer, when it shows any characteristics of the brand he
just recognizes the brand.

BUYING BEHAVIOUR

Buying behaviour is a process by which a people search for the product/services they need or
want, make decision to buy the required and most suitable one from different alternatives, use
and then dispose it.

15
FACTORS EFFECTING BUYING BEHAVIOUR

Brewster, Sparrow and Vernon (2007) explain about factors that affect buying behaviour and
vary from person to person, age to age, and area to area. Every society follows its own norms,
culture and values. At different stages of life our preferences change because of our age,
needs, lifestyle, earning and psychological factors. These factors can be Internal (memory
and way of thinking) or External (media, word of mouth, publicity and feedback).

There are several factors, which pressure the buying behaviour:

CULTURAL INFLUENCES: It has the broadest and the deepest influence on buying
behaviour. Brewster, Sparrow and Vernon (2007) define culture as shaping process, ‘for a
culture to exist, member of a group or society having different values and norms, which vary
time to time. Cultural values can change and have to be watched by marketers. Ignoring this
deepest and widest factor can be very costly for company in terms of image and profit.

SOCIAL INFLUENCES: Social influences are those influences that clearly mold buying
behaviour, it affects through reference group, family members and social class (Ahmed &
Saeed 2014).

FAMILY INFLUENCES: Family life cycle and family decision making has the most in
influence on one’s buying behaviour.

PSYCHOLOGICAL INFLUENCES: These influences are related to our perception,

learning, memory and motivation. It changes buying behaviour through making the perceived
picture of product in customer’s mind. Customer buying behaviour can be influenced by
different factors like: perception, beliefs, society, personality, information choices,
preferences and communication.

IMPACT OF ENDORSEMENT ON BUYING BEHAVIOUR

Ranjbarian, Shekarchizade & Momeni (2010) agreed that advertisement is the action that
persuades individuals of any particular market to buy services and product or service.
Through different ways the advertisement message can be spread like TV ads, radio
publicity, print promotion, online advertising, billboard marketing, in store advertise, WOM
advertising, and endorsement. Now the question arise that which category of promotion is

16
best? The best nature of advertisement depends on the type of industry or firm and its
necessities and desires.

McCracken (1989) found that celebrities endorses characterized an effectives way of

transferring meaning to brands. The common conviction of the marketers is that there is a
significant and huge impact of these advertisements, which are endorsed by the famous
celebrities comparably with the non-endorsed celebrities.

ADVANTAGES OF CELEBRITY ENDORSEMENT

Celebrity endorsements can build brand equity. An example of this is Nike, prior to Michael
Jordan Nike mostly sponsored tennis and track athletes and decided to expand their market,
which increased sales to become a multibillion-dollar company.

 It helps customers to remember advertisements when seeing a celebrity that has

already got a brand of their own, it will bring customers to try or purchase the
product.
 It also helps the brand to stand out over a brand that does not use celebrity branding.
 A celebrity can enhance brand equity (Till, 1998).
 Consumers’ attitude toward a brand can be changed or affected by celebrity (Till,
1998).
 Culture road block can be manipulated by using celebrity with worldwide reputation
(Kaikati, 1987).
 Celebrity is able to build brand credibility in a short period of time (Abbot et al.,
2001). Furthermore, Mullikin and Petty (2006) state that “appearing of celebrity in
advertising can built some independent credibility to the advertisement”.
 Atkin and Block (1983) suggests that “Celebrities may help advertisements stand out
from surrounding clutter, thus improving their communicative ability”
 Advertisers believe that consumers will buy products associated with people they
admire and respect (Wright, 2000).
 Celebrity endorsement can underpin competitive differential advantage among other
companies (Wright, 2000)
 Celebrities make advertisement believable (Kamins et. al., 1989)
 They help in brand name recognition (Petty, Cacioppo, Scherman, 1983)
17
  Enhance message recall (Friedman and Friedman, 1979)
 Influence consumer’s purchase intentions (Tripp, Jensen, Carlson, 1994)
 Create a distinct personality to the endorsed brand (McCracken, 1989).

DISADVANTAGES OF CELEBRITY ENDORSEMENT

 Brand images can change if celebrities cause themselves a bad name or reputation.
 Celebrities can be overexposed. An example of this is Tiger Woods, when he worked
for so many companies his credibility started to suffer.
 Celebrities start to overshadow brands. Customers will start to focus on the celebrity
rather than the product.
 Consumers’ scepticism; consumers might not believe that the endorsers really
consume the product that they endorse.
 Consumers give less credibility to celebrities who endorse many products.
 On the one hand, single endorser for one product might be seen as boredom. On the
other hand, consumers might get confused by using multiple celebrity endorsement.
 Louie and Obermiller (2002) state that “Celebrities who are blamed for negative
events (e.g. accidents) can have detrimental effects on the products they endorse”.
 Another risk can arise if celebrity loses his/her fame, his/her image changes resulting
to contradicting image of endorsed brand.
 Vampire effect’ or ‘Celebrity Vamping’ can be perceived, when endorsing celebrity is
too attractive, drawing attention away from the product.
 Endorser’s effectiveness is reduced when there is a bad fit between the endorsing
person and the product.

THE BENEFITS OF CELEBRITY ENDORSEMENT

BUILD BRAND EQUITY: Prior to Michael Jordan, Nike primarily sponsored tennis and
track athletes. Nike wanted expand into new markets. Who better to sign than one the most
electrifying young athletes in sports? The Nike-Jordan partnership has blossomed into its own
multibillion dollar subsidiary company, Air Jordan.

HELP PEOPLE REMEMBER ADS: Celebrity endorsements can improve and recall,
According to researchers Jagdish Agarwal and Wagner Kamakura.When people would see or
hear Dennis Haysbert on the show “24,” they associate his voice with Allstate.

18
MAKE PEOPLE BELIEVE THE PRODUCT CONTRIBUTES TO SUPERSTAR
STATUS: Mobile One uses NASCAR superstar Tony Stewart to endorse its brand, which
leads consumers to believe that Motor One oil contributes greatly to the performance of his
car-and his success.

STAND OUT: Research from Charles Atkin and Martin Block suggests that “Celebrities
may help advertising stand out from the surrounding clutter.” People like Watching George
Clooney or Natalie Portman more than local dentists and attorneys.

THE RISKS OF CELEBRITY ENDORSEMENT

IMAGES CHANGE: Celebrities make mistakes. And when they do, they can affect the
brands they endorse. In 2009, Tiger Woods’ public image crumbled after his infidelity with a
number of women, including pornography actresses, hit the news. General Motors, Gillete,
Accenture, and Gatorade dropped Tiger to avoid negative perception. Nike stuck around and
lost customers. And the golf industry as a whole saw a major revenue slow-down with no
Tiger on the course.

CELEBRITIES BECOME OVEREXPOSED: At the height of Tiger Woods’ popularity,

he endorsed over ten companies at once. When a celebrity works with so many companies,
the celebrity’s credibility may suffer. People may feel that the celebrity will endorse anything
to make a buck.

CELEBRITIES CAN OVERSHADOW BRANDS: Consumers may focus on the celebrity,

not the product. This is a particular danger when celebrities endorse multiple products at a
time. David Beckham endorses a number of companies, which feature him prominently in
print advertising. However, his image as the focal point of advertising devalues many
products. Do you remember the brand or do you remember David Beckham?

TYPES OF CELEBRITY ENDORSEMENT

OBSERVER: The celebrity assumes the role of an observer commenting on the brand.

INVENTED: The celebrity plays a new, original role.

IMPORTED: The celebrity performs a role known to the audience.

TESTIMONIAL: The celebrity acts as a spokesperson for the brand.

19
HARNESSED: The celebrity’s image is integrated with the ad’s storyline.

WHAT IS PRODUCT ENDORSEMENT?

A product endorsement is a form of testimonial from someone which indicates that they like
or approve of a product. Commonly, product endorsements are solicited from people who are
socially prominent, allowing companies to advertise their products with statements like “as
used by such-such an actress,” or “the official product of company/event X.” It’s hard to miss
a product endorsement on product packaging and in advertisements; most companies keep
their endorsements front and center so that they are always in the public eye.

CELEBRITY ENDORSEMENT AND ITS EFFECT ON CONSUMERS

It is a known fact that the best endorsements achieve an effective balance between the
product and the celebrity. Giving a brand a ‘face’ is more than just a marketing strategy to
increase sales or gain market share, it is a decision that can change the future of the brand
forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on many
different parameters- appeal, looks, popularity or even just a fantasy figure to endorse a
brand.

The most important thing to remember is that putting a celebrity in an ad is not an idea in
itself. Unfortunately, this is how most celebrities are being used in Indian advertising, where
they just become a prop.

SHAHRUKH KHAN CHANGED THE FORTUNE OF DISH TV AFTER

HE STARTED ENDORSING IT

There is no doubt that celebrity advertising has its benefits-

The four Qs:

QUICK SALIENCY: It gets cut through because of the star and his attention getting value.
Nerolac has ensured high saliency for its brand with the inclusion of Amitabh Bacchan in its
advertising.

20
QUICK CONNECT: There needs to be insight but the communication connects because the
star connects. Sachin Tendulkar & Shah Rukh Khan ensure an easy connect for Pepsi with
the youth.

QUICK SHORTHAND FOR BRAND VALUES: The right star can actually telegraph a
brand message fast without elaborate story telling. Kapil Dev and Sachin Tendulkar seem to
have done that successfully for Boost in the early 90’s. And helped to differentiate it in the
malted beverages market.

QUICK MEANS OF BRAND DIFFERENTIATION: In a category where no brand is

using a celebrity, the first picks one up could use it to differentiate itself in the market. Boost
did it in the malted beverage category.

CELEBRITY VALUES

Celebrity branding is all about the transfer of the value from the person to the product he
endorses or stands for. There are two concerns here. The first is how long this could last. Can
the person maintain his popularity? The lifecycle of celebrity popularity varies a lot. The
second concern is his private life personal integrity. If he is implicated in any kind of scandal,
that would ruin the brand. “Who would want to use Michael Jackson to brand their product?’
Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness,
Amitabh Bacchan & Shah Rukh Khan campaigning for pulse polio or Aishwarya Rai
appearing in the Donate Eyes campaign are few examples, which reflect the transfer of
celebrity values to the brand, creating an impact that generates recall.

COSTS OF ACQUIRING THE CELEBRITY

Consequently, companies must have deep pockets to be able to afford the best available
celebrities. Recently, a newspaper report showed how oola firms had gone beyond their
advertising budgets to get the best celebrities. Small firms that use celebrities’ services run
greater risks if they invest large amounts. Although nobody is willing to say exactly how
much celebrities get paid, industry sources say Sachin Tendulkar’s price is believed to be
between Rs. 2.0-2.5 crore per endorsement, and musician A.R Rehman, who had signed up
with Airtel, is believed to have picked up Rs. 2 crore for the Fly with Hrithik campaign to
push Close-Up, and Shahrukh Khan’s rate seems to be between Rs. 2.5-3.0 crore. Aishwarya
Rai apparently picks up Rs. 1.25 crore for an endorsement and the Indian cricket captain

21
Virat Kohli is believed to get between Rs.90 lakh to Rs. 1.5 crore, while film-star Aamir khan
apparently makes Rs.1.5 crore per endorsement.

CELEBRITY REGIONAL APPEAL FACTORS

R.Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India are
few examples of how celebrities are chosen to reach out to target audiences for brands in
regional markets.

Another interesting example would be of Steve Waugh Campaigning for Tourism Australia
in India since he was one of the popular celebrities from Australia and could carry the
message of Australia as a tourist destination. Other celebrities like Kylie Minogue, Nicole
Kidman from Australia can be prospective endorsers for brand Australia but not in the region
of India.

CELEBRITY-PRODUCT MATCH

Nikhil Chinnapa is the brand ambassador for MTV since both the celebrity and the brand are
considered as friendly, young, mood-boosting, humourous and outspoken. MTV’S brand
personality overlaps Nikhil Chinnapa’s image as a brand.

Some more examples of compatible celebrity product match in which celebrity brand
attributes get transferred to the brand and increases the brand equity is of Mallaika Arora &
Freshizza from pizza hut, Govinda & Navratan Tel, Sanjay Dutt & Elf Oil, Sunny Deol &
Lux Undergarments, Aishwarya Rai & Nakshatra, etc.

CELEBRITY POPULARITY

Celebrity Brand association like Garnier endorsed Tara Sharma & Simone Singh, Agni
Diamonds with Riama Sen don’t get much brand recall, and even if they do, its difficult to
attribute it to the celebrities’ endorsing the brand.

On the other hand, HPCL has increased popularity and share of voice due to the endorsement
of the brand through Sania Mirza.

22
CELEBRITY AVAILABILITY

In case of various brands, there are situations in which they prefer to go without a brand face,
since there is no brand-fit between the celebrities available and the brand. Also, due to
multiple endorsements by certain celebrities, brands refuse to adopt celebrity endorsement
since they fear dilution of the brand image.

CELEBRITY PHYSICAL ATTRACTIVENESS

Bipasha Basu’s physical attractiveness and her connect with the brand makes Levis Strauss’s
campaign which portrays the celebrities’ physical attractiveness that helps creating an impact.

CELEBRITY CREDIBILITY

The most important aspect and reason for celebrity endorsement is credibility. In a research
carried out among 43 ad agencies and companies, most experts believed that the most
important dimensions of credibility are trustworthiness and prowess or expertise with regard
to the recommended product or service. One of the most obvious reasons of Amitabh
Bachchan endorsing huge number of brands is the credibility of the celebrity and his
recognition across consumers.

MULTIPLE ENDORSEMENTS

The case of multiple endorsements, both in terms of a single brand multiple celebrities and
that of a single celebrity endorsing multiple brands, is often debated. At times, consumers do
get confused about the brand endorsed when a single celebrity endorses numerous brands.
The recall then gets reduced and reduces the popularity of the brand.

SUCCESSFUL CELEBRITY ENDORSEMENTS FOR A BRAND- AN

INDIAN PERSPECTIVE

In recent times, we had the Shah Rukh Khan-santro campaign with the objective of creating
awareness about an unknown Korean brand in the Indian market, Hyundai. The objective was
to garner faster brand recognition, association and emotional unity with the target group. Star
power in the India can be gauged by the successful endorsement done by Shahrukh for three
brands-pepsi, clinic all clear and santro.

23
Similarly, When S.Kumar’s used Hrithik Roshan, then the hottest advertising icon 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. Ad recall was as high as 70 per cent, and even the normally
conservative trade got interested.

India is one country which has always idiolized the species of the celluloid world. Therefore,
it makes tremendous sense for a brand to procure a celebrity for its endorsement. In India,
there is an exponential potential for a celebrity endorsement to be perceived as genuinely
relevant, thereby, motivating consumers to go in for the product- this would especially prove
true if the endorser and the category are a natural lifestyle fit (sports-persons and foot-wear,
Kapil-Sachin and Boost, film stars and beauty products, Katrina Kaif and Lux).

SOME GLOBAL EXAMPLES

Globally, firms have been juxtaposing their brands and themselves with celebrity endorsers.
Some successful ongoing global endorsements are as follows:-

Celebrity endorsements have been the bedrock of pepsi’s advertising. Over the years, pepsi
has used and continues to use a number of celebrities for general market and targeted
advertising, including Wyclef Jean, and Busta Rhymes, who did a targeted campaign for their
Mountain Dew Product.

Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $ 50 million
revenue growth. Nike’s golf line grossed more than $250 million in annual sales. In 2000, he
renegotiated a five-year contract estimated at $ 125 million.

Other successful endorsements like Nike-Michael Jordan, Dunlop- John McEnroe, Adidas-
David Beckham, and so on.

Venus Williams, tennis player and Wimbledon champion has signed a five-year $ 40 million
contract with sportswear manufacturer Reebok International Inc.

24
CELEBRITY ENDORSEMENT: FACTORS INVOLVED

There are several factors to consider before resorting to celebrity endorsement. Thare
is no single formula to win in the world of marketing. A company must analyze the prospect
of endorsement from 360 degrees, prior to product promotion.

PRICE V/S PROFIT: The most important issue is that of return on investment (ROI).
Companies need to perform a cost-benefit analysis prior to endorsement. The process of
gauging the effectiveness of endorsement on the overall brand is but difficult. The companies
expect to bring, in the long run, future sales, revenues and profit from the present investments
on celebrity endorsement. Celebrity endorsement is an expensive means of brand promotion
and the price burden almost always shifts on to the consumers, if not, then it narrows the
companies’ profit.

MULTIPLE BRAND ENDORSEMENT V/S MULTIPLE CELEBRITY

ENDORSEMENT: In the advertising landscape, we find either a celebrity endorsing
multiple brands or multiple celebrities being used to endorse a single brand.

Sachin Tendulkar, for example, in 2002 endorsed 12 brands. Tripp et al, says that the
endorsement of as many as four products negatively influences the celebrity spokesperson’s
credibility and likeability. Also the use of multiple celebrities a brand may hinder the
meaning transfer process, and thus, lead to confusion among the consumers.

OBJECTIVES OF CELEBRITY ENDORSEMENT

ESTABLISH THE PRODUCT NEED

Establishing a need for a product or a product category is the necessary first step. This is
more important in new-to-world category of products. In Indian context, consider the
advertisement for Polio Immunization drive- the TV advertisement featured Amitabh
Bachchan telling that immunization is a must for every child-while people suffering from
polio are shown in the background along with healthy kids. This advertisement used a
celebrity to create the need for polio immunization.

CREATE BRAND-AWARENESS

Once the need for a product is established, customers must be able to associate the brand with
the product category.

25
SET CUSTOMER EXPECTATIONS

Brand value comes from the customers experience with the product. If the product meets or
beats his expectations, then a positive brand image is created, else a negative brand image is
created. Therefore it is essential to set the customer expectations accordingly.

CREATE A PURCHASE INTENTION

These are marketing promotion advertisements-Buy one, get one free, or get additional
discounts if you buy within a particular date etc...The sole purpose of such communication
messages is to encourage customers to buy immediately or within a short period after seeing.

THE ARGUMENT FOR CELEBRITY ENDORSEMENT

ESTABLISHMENT OF 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.

ENSURED ATTENTION

Celebrities ensure attention of the target group by breaking the clutter of advertisements and
making the ad and the brand more noticeable.

PR COVERAGE

PR COVERAGE is another reason for using celebrities. Managers perceive celebrities as

topical, which create high PR coverage.

TIME SAVING

Celebrity is able to build brand credibility in a short period of time.

HIGHER DEGREE OF RECALL

People tend to commensurate the personalities of the celebrity with the brand thereby
increasing the recall value.

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.

26
MITIGATING A TARNISHED IMAGE

Cadbury India wanted to restore the consumer’s confidence in its chocolate brands following
the high-pitch worm’s controversy; so the company appointed Amitabh Bachchan for the job.

PSYCHOGRAPHIC CONNECT

Celebrities are loved and adored b y their fans and advertisers use stars to capitalise on these
feelings to sway the fans towards their brand.

DEMOGRAPHIC CONNECT

Different stars appeal differently to various demographic segments.

MASS APPEAL

Some stars have a universal appeal and therefore prove to be a good bet to generate interest
among the masses.

PROVIDING TESTIMONY

Another benefit of using celebrity endorsers is that she/he can provide testimony for a
product or service, particularly when the product has contributed to their celebrity. The more
familiar an endorser, the more likely consumers are buy the endorsed product.

REJUVENATING A STAGNANT BRAND

With the objective of infusing fresh life into the stagnant chyawanprash category and staving
off competition from various brands, Dabur India roped in Bachchan for an estimated Rs. 8
crore.

CELEBRITY ENDORSEMENT CAN SOMETIMES COMPENSATE FOR LACK OF

INNOVATIVE IDEAS

THE ARGUMENT AGAINST CELEBRITY ENDORSEMENT

The reputation of the celebrity may derogate after he/she has endorsed the product

The vampire effect

Inconsistency in the professional popularity of the celebrity

27
Multi brand endorsements by the same celebrity would lead to overexposure.

Celebrities endorsing one brand and using another.

Mismatch between the celebrity and the image of the brand

SELECTION OF CELEBRITY

The choice of celebrity is critical for the success of the advertisement. The celebrity should
have high recognition, high positive effect, and the image of the celebrity must watch with
that of the product. For this reason, famous sportsmen are used to endorse sporting goods:
Michael Jordan & Nike, Tiger Woods and Nike, David Beckham endorses Adidas, etc. While
it is totally inappropriate for movie stars to endorse a sports products.

Celebrity endorsements must be used judiciously. If the celebrity is too famous or too
popular, then the celebrity will overpower the product – i.e., people will remember seeing
only the celebrity and forget the product. This happened when Britney Spears came in a Pepsi
commercial in 2001. Britney Spears was at the height of her popularity- viewers saw the
advertisement to see Britney Spears and forgot all about Pepsi.

The cost benefit analysis of using celebrity in marketing communications is bit tricky. But the
general belief is that using celebrity is a lot cheaper in building a brand. For example,
S.Kumar’s built the brand “Reed & Taylor’s as a premier suiting material by having Amitabh
Bachchan in its advertisements. To achieve the same without a celebrity would have taken
longer time & more money. In a span of less than two years after launch, the brand Reed &
Taylor’s” has become the second largest seller of cloth for men’s suits in India.

Selection of the right celebrity is crucial. The needs of the brand-rather than the fame of the
celebrity-should be the primary criteria when selecting a celebrity spokesperson. The
celebrity’s physical attractiveness, values, and credibility also matter tremendously.
However, it would be suicidal to forget about the target audience.

MEASURING A CELEBRITY ENDORSEMENT

It becomes very important to measure the effectiveness of a celebrity. Few of the methods of
measurement that are in practice are:-

28
THE Q-SCORE METHOD

There is a way to measure the credibility, believability, popularity, and likeability of a

celebrity. It’s called a Q-score, and you can purchase the Q-scores of the candidates you’re
considering.

Consider both sides of the deal- for a client who wanted to use a celebrity endorser, and for a
celebrity who was looking for an endorsement opportunity. Once you’ve defined the kind of
endorser you need, its well worth going through the Q-score excersise.

Evaluating the contribution of the endorser after you’ve already made the decision is not
nearly as straight forward. One time, many years ago, a company actually shot a commercial
with a well-known endorser for national use, and it shot the same commercial with a good
actor, not so well-known. The company ran a limited market test for 6 months with the
unknown actor so could quantify the sales impact of the celebrity. By the way, the celebrity
was worth every penny of his outrageous fee. It ended up using him for years, and he helped
the brand reach market leadership almost entirely on the strength of the commercials in which
he appeared.

THE FRED PRINCIPLE

This concept is seen as the foundation of a successful endorser selection.

F is for Familiarity: The target market must be aware of the person, and perceive him or her
as empathetic, credible, sincere, and trustworthy.

R is Relevance: There should be a meaningful link between the advertised brand and the
celebrity endorser, and more important, between the celebrity endorser and the defined target
market. The audience must be able to identify with the person. If consumers can immediately
associate with an endorser, they feel more predisposed to accepting, buying, and preferring
the brand to competition.

E is for Esteem: Consumers must have the utmost respect and confidence for the celebrity.
Amitabh Bacchan & Tendulkar have these. So do Shahrukh Khan, Preity Zinta, Kapil Dev
among others. The public respect them because of their distinguished careers and un
assailable salesmanship.

29
D is for Differentiation: The target consumers must see the endorser as a cut above the rest.
If there is no perceived disparity among celebrities, then the strategy will not work. Michael
Jordan is an example of an international celebrity that rises above the clutter. This proves to
be a huge contributory factor to his effectiveness as an endorser.

The Fred concept is not a guarantee to success, but it can serve as a guideline when selecting
a spokesperson. Each organization and its objectives are different, and should be evaluated on
an individual basis.

THE IMPACT

As defined earlier, impact would be both short term and long term, but here the focus would
be more on the long term implications of the brand. Measurement of this would be
challenging and data would be difficult to obtain. The parameters on which impact could be
measured would be on a comparative basis of the brand before and after the celebrity began
endorsing the brand. Sales/revenue, market share, brand recall, level of repurchase, brand
loyalty, trust, image, and perception of the brand per say.

In this trend of creative advertising, we see usage of celebrities of all walks in life-
particularly actors, film stars, models, sports persons, and the whole gamut. But the usage can
always backfire if the choice of the star is completely contradictory in nature to the brand.
Believability and association of brand to celebrity is important.

Selection of celebrities can be done while they are at their peak or when they are desired for
greatness in the near future. Again a risk that may go either way. What is important at some
level is the value that a celebrity adds to a particular brand. The advertiser tries his best to
make the celebrity and brand as analogous as possible. The celebrity endorser is seen to score
quite well on dimensions such as trustworthiness, believability, persuasiveness, and
likeability when tested for reaction from people. This is important to a marketer as if he can
get a celebrity to make the masses follow, believe or listen to him, he has been successful.

The basis for the effectiveness of celebrity-endorsed advertising can be linked to this process
of identification and internalization of the desired behaviour. Price of fame may be high for
the celebrity endorsed brands but they have both what the markets and the everyday common
man want-attention, power, and star sizzle.

30
Celebrities are people who enjoy public recognition of a large group of people. Celebrities
may convey a broad range of meanings, involving demographic categories, personality and
lifestyle types.

REVIEW OF LITERATURE

Advertisers regularly practice the strategies intended to attract customer’s interest to their
message and to differentiate their offerings from rival products with the anticipation of
influencing buying behaviour of the customer. In today’s competitive world, a quality is
positioned on an approach, which can accomplish these objectives. One challenge at such a
plan includes the use of a celebrity representative. According to Atkin and Block (1983),
there are numerous bases as to why a famous endorser may be dominant. First, such a
representative attracts consideration toward the commercials into the messy flow of
communication. In addition, celebrities are conventionally observed as being greatly active
individuals with eye-catching and likeable traits Kamins et al. 1989).

Celebrities regularly emerge in promotions in connection among customer goods

or services. By means of skill to pierce the hetic mess of publicity, portray customer
consideration, produce high memory rates, generate as well as distinguish brand description
thus, create trade and income, superstar endorsement have demonstrated to be a helpful
approach. No doubt dealer spends huge amount of capital in utilizing superstars to sponsor
their brands (Agarwal & Wagner 1995; Erdogan 1999 ;)

McCracken (1998) proposes that superstar is considered like memorial,

entertainer or representative of the business organization. Investigation has established that
spokesperson endorsement influence consumers’ mind-set in common and it may change the
feelings of customers towards the commercial and products as well. This may perhaps effect
in improvement of acquisition plan and as an outcome in increase of trade.

The use of famous persons in promotions is traced back to 19th century and
these general promotional practices have revealed a large quantity of intellectual as well as
realistic considerations. Mainly academic analysis of celebrity support encompasses the
sphere of spokesperson credibility and charismatic representatives, and recommends that
famous persons excercise their impact on customers through apparent traits (Ahmed 2012 ;)

31
 McCracken’s (1989), in his article “Who is Celebrity Endorser? Cultural
Foundations of the Endorsement process” states that 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). Earlier studies evidences
that, in 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.

Friedman H.H and Friedman L.. (1979), in their article “Endorser effectiveness
by product type” found the categorization of products into low and high involvement is based
on the risk perceptions consumers have when purchasing products (which are significantly
higher for high involvement products). Risk perceptions can be classified into four categories
(1) Psychological risk, the fit between product image and self-image, (2) Financial risk is
associated with the price of the brands/products (3) Social risk, the 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, the risk of buying a product that does not operate the way it should do.

32
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

33
 Table 4.1

Distribution of sample according to Age

AGE NO OF RESPONDENTS PERCENTAGE

20-30 20 40
30-40 15 30
40-50 10 20
50&Above 5 10
TOTAL 50 100

40%

30%

20%

10%

0%
20-30
30-40
40-50
50&Above

GRAPH 4.1

Interpretation

The age group of the people surveyed is given table 4.1. Majority of the people

surveyed belonging to age group 20-30 years, 30 percent of people belong to

age group of 30-40 years, 10 percent of people belong to age 50&above .

34
 Table 4.2

Distribution of sample according to sex

SEX NO OF RESPONDENTS PERCENTAGE

Male 23 46
Female 27 54
TOTAL 50 100

56%

54%

52%

50%

48%

46%

44%

42%
Male Female

GRAPH 4.2

Interpretation

The table 4.2 reveals that majority of the respondents that is 54 percent are
female and only 46 percent are male

35
 Table 4.3

Distribution according to occupation

OCCUPATION NO OF RESPONDENTS PERCENTAGE

Government employee 3 6
Business men 6 12
Professionals 23 46

Others 18 36
TOTAL 50 100

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Government Business men Professionals Others
employee

GRAPH 4.3

Interpretation

The table 4.3 reveals that majority of the respondents , that is 36 percent are
others, 46 percent are professionals , 12 percent are business men , 6 percent are
government employees.

36
 Table 4.4

Average monthly income

INCOME NO OF RESPONDENTS PERCENTAGE

5000-25000 20 40
25000-50000 10 20
50000-75000 14 28
Above 75000 6 12
TOTAL 50 100

40%
35%
30%
25%
20%
15%
10%
5%
0%
5000-25000 25000-50000 50000-75000 Above 75000

GRAPH 4.4

Interpretation

The table 4.4 reveals that 40 percent of the respondents have income level
between 5000-25000 , 28 percent of the respondents have income level between
5000-75000 , 12 percent of the respondents have income level above 75000.

37
 Table 4.5

Type of advertisement

ADVERTISEMENT NO OF RESPONDENTS PERCENTAGE

Animated advertisement 16 32
Celebrity advertisement 22 44
Political advertisement 12 24
Total 50 100

50%
40%
30%
20%
10%
0%

Animated
advertisement Celebrity
advertisement Political
advertisement

GRAPH 4.5

Interpretation

Table 4.5 reveals that, most of the people watch celebrity advertisement, only

24 percent peoples are watching political advertisement.

38
 Table 4.6

Factor comes first to buy a product

FACTORS NO OF RESPONDENTS PERCENTAGE

Product quality 18 36
Product design 14 28
Product advertisement 16 32
Product celebrity 2 4
endorser
Total 50 100

40%
35%
30%
25%
20%
15%
10%
5%
0%
Product quality Product design Product advertisement Product celebrity
endorser

GRAPH 4.6

Interpretation

The table 4.6 shows that majority of the people are buy the product on the basis
of quality. Only the 4 percent people are buying product in celebrity
endorsement, 32 percent of people are buying product on the basis of watching
advertisement .

39
 Table 4.7

Attitude of customers towards quality of products endorsed

by celebrities

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Strongly agree 14 28
Somewhat agree 26 52
Somewhat disagree 4 8
Strongly disagree 6 12
Total 50 100

60%

40%
PERCENTAGE
20% PERCENTAGE
0%
Strongly agree Somewhat Somewhat Strongly
agree disagree disagree

GRAPH 4.7

Interpretation

Table 4.7 reveal that 52 percent of the respondents are somewhat agree they are

go only to those products which are endorsed by famous people they are quality

products, 8 percent of people somewhat disagree this statement.

40
 TABLE 4.8

Factors influencing to buy a product

FACTORS NO OF RESPONDENTS PERCENTAGE

Discount and offer 15 30
Latest model and 19 38
trends
Celebrity 6 12
endorsement
Recommendation 8 16
from friends ,
relatives etc
Low price 2 4
Total 50 100

38%
40 30%
35
30
25 16%
20 12%
15
10 4%
5
0

Factors

GRAPH 4.8

41
Interpretation

Table 4.8 reveals that 30 percent of people depends upon discount and offer , 38

percent of people depends upon latest models and trends , 12 percent of people

depends upon celebrity endorsement , 16 percent of people depends upon

recommendation and family and 4 percent of people depends upon lower price.

42
 Table 4.9

Products endorsed by celebrity are of quality

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Most of the times 14 28%
Sometimes 26 52%
No 10 20

60%

50%

40%

30%

20%

10%

0%
Most of the times Sometimes

GRAPH 4.9

Interpretation

The table 4.9 reveals that 52 percent of the people believe that products

endorsed by celebrity are of quality in sometimes and 28 per cent believes that

most of time are of quality.

43
 Table 4.10

Influencing factor to purchase the following products

No Products factors No of Per cent

responde
nts
A Motor Quality 17 34
vehicle Celebrity endorsement 2 4
Brand name 25 50
Recommendation from 6 12
friends, family etc
B Food Quality 22 44
products Celebrity endorsement 5 10
Brand name 15 30
Recommendation from 8 16
friends, family etc
C Home Quality 32 64
appliances Celebrity endorsement 2 4
Brand name 10 20
Recommendation from 6 12
friends, family etc
D Clothing Quality 15 30
Celebrity endorsement 5 10
Brand name 28 56
Recommendation from2 2 4
friends, family etc

44
 70%
60%
50%
40%
30%
20%
10%
0%
Quality

Quality

Quality

Quality
Brand name

Brand name

Brand name

Brand name
Celebrity endorsement

Celebrity endorsement

Celebrity endorsement

Celebrity endorsement
Recommendation from

Recommendation from

Recommendation from

Recommendation from
friends, family etc

friends, family etc

friends, family etc

friends, family etc

Motor vehicle Food products Home appliances Clothing

GRAPH 4.10

Interpretation

The table 4.10 reveals that 50 percent people are persuaded by the brand name

while purchasing the motor vehicle, 4 percent followed by celebrity.

Most influencing factor to purchase of food products is quality which is 44

percent and only 10 percent are followed by celebrity, 16 percent are followed

by recommendation from friends and family, 30 per cent are followed by brand

name.

In case of home appliances 64 percent responded to quality of the product

and 20 percent are followed by brand name, only4 are followed by celebrity

endorsement.

45
As of clothing 56 percent are persuaded by brand name, 30 percent are follow

quality and only 4 percent are persuaded by recommendation from friend and

relatives.

46
 Table 4.11

Advertisement encourage you to buy particular product

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Sometimes 13 26
Often 8 16

No 29 58
Total 50 100

GRAPH 4.11

Sometimes
26%

No Often
58% 16%

Interpretation

The table reveals that 58 percent not at all influenced by such celebrity

presence where 26 percent is sometimes influenced and 16 per cent of people

are often encouraged to buy a product.

47
 Table 4.12

Increase in sales

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Yes 25 50
No 10 20

Don’t know 15 30
Total 50 100

60%

50%

40%

30%

20%

10%

0%
Yes No Don’t know

GRAPH 4.12

Interpretation

The table 4.12 reveals that 50 percent of people surveyed believe that celebrity

endorsement help a company to increase their sales turnover and their by profit

where as 20 percent do not believe.

48
 Table 4.13

Type of celebrities

PERSONS NO OF PENCENTAGE
RESPONDENTS
Film stars 20 40
Sports persons 18 36
T .V personalities 4 8
Other Famous 8 16
personalities
Total 50 100

other
personalities16
tv personalities, 8

film stars, 40
sports persons,
36

GRAPH 4.13

Interpretation

The table 4.13 reveals that among the different type of celebrities film stars

remain the popular one. 36 percent are persuaded by sports persons and 8

percent are persuaded by T .V personalities, 16 per cent are persuaded by

other famous personalities.

49
 Table 4.14

Use of endorsed product by celebrities

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Yes 7 14

No 42 84

Don’t know 1 2

Total 50 100

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3

GRAPH 4.14

Interpretation

The table 4.14 reveals that 84 percent of people surveyed are of the opinion that

the products endorsed by celebrities are not used by them where as 2 percent

are don’t know that the products endorsed by celebrities are used by them.

50
 Table 4.15

Media for celebrity endorsement

MEDIA NO OF RESPONDENTS PERCENTAGE

Television 29 58
Radio 1 2
Newspaper 8 16
Internet 5 10
Magazines 7 14
Total 50 100

60
50
40
30
Series1
20
10
0
television radio newspaper internet magazine
Media

GRAPH 4.15

Interpretation

The table 4.15 reveals that among the different media available for

advertisement television remains the popular one followed by newspaper,

magazine, internet and radio.

51
 Table 4.16

Reason why producers engage in celebrity endorsement

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Easy identification of 25 50
product
To compete with competitors 10 20
To increase sales and thus 8 16
profit
Easy brand recall 7 14
Total 50 100

easy brand recall

to increase sales and 14%
profit easy identification of
16% product
50%
to compete with
competitors
20%

GRAPH 4.16

Interpretation

The table 4.16 reveals that 50 percent of people think that the reason why

producers engage in celebrity endorsement is for easy brand/product

identification. About 20 percent think that it is to compete with competitors. 16

52
percent believe that it is to increase sales and there by profit and 14 percent

people who point out that celebrity endorsement is of easy brand recall.

53
 Table 4.17

Compare favourite actors endorsing with current product

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Strongly agree 13 26
Somewhat agree 27 54
Somewhat disagree 4 8
Strongly disagree 6 12
Total 50 100

60%
50%
40%
30%
20%
10%
0%
Strongly agree Somewhat agree Somewhat Strongly disagree
disagree

GRAPH 4.17

Interpretation

The table 4.17 reveals that 54 percent people somewhat agree that they are

compare the favourite actor endorsing product with their current product. 12

percent people are strongly disagree that they are not comparing the favourite

actor endorsing product with current product and 26 percent of people

strongly agree this.

54
 Table 4.18

Celebrity directly with quality and performance

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Strongly agree 13 26
Somewhat agree 18 36
Somewhat disagree 12 24
Strongly disagree 7 14
Total 50 100

40%
35%
30%
25%
20%
15%
10%
5%
0%
Strongly agree Somewhat agree Somewhat disagree Strongly disagree

GRAPH 4.18

Interpretation

Table 4.18 reveals that 26 percent people strongly agree , 36 percent people

some what agree , 24 percent people somewhat disagree and 14 percent people

strongly disagree to this statement.

55
 Table 4.19

Classification customers who buy products when it is according to

endorsed by favourite actor

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Strongly agree 11 22
Somewhat agree 14 28
Somewhat disagree 2 4
Strongly disagree 23 46
Total 50 100

50%
40%
30%
20%
10%
0%
Strongly agree Somewhat agree Somewhat disagree Strongly disagree

GRAPH 4.19

Interpretation

The table 4.19 reveals that 46 percent of people strongly disagree that they buy

another if their favourite actor endorsing that product, 22 percent of people

strongly agree that they buying another product because their favourite actor

endorsing that product.

56
 Table 4.20

Classification according to customers they are not to buy the product when
it is endorsed by the people they don’t like

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Strongly agree 4 8
Somewhat agree 32 64
Somewhat disagree 5 10
Strongly disagree 9 18
Total 50 100

70%
60%
50%
40%
30%
20%
10%
0%
Strongly agree Somewhat agree Somewhat Strongly disagree
disagree

GRAPH 4.20

Interpretation

The table 4.20 shows that 64 percent of the people somewhat agree that they

do not buy the product because the celebrity endorsed by the product that they

don’t like , 8 percent of the people strongly agree that they do not buy the
57
product because the celebrity endorsed by the product that they don’t like and

18 percent of the people strongly disagreed.

58
 Table 4.21

People purchase product if they like celebrity or not

PARTICULARS NO.OF PERCENTAGE

RESPONDENTS
Strongly agree 4 8
Somewhat agree 16 32
Somewhat disagree 12 24
Strongly disagree 18 36
TOTAL 50 100

40%
35%
30%
25%
20%
15%
10%
5%
0%
Strongly agree Somewhat agree Somewhat disagree Strongly disagree

GRAPH 4.21

Interpretation

Table 4.21 reveals that 8 percent strongly agree , 32 percent of people

somewhat agree , 24 percent of people somewhat disagree and 36
percent people strongly disagree to this statement.

59
 Table 4.22

Level of satisfaction

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Fully satisfied 16 32
Partly satisfied 24 48
Dissatisfied 20
Total 50

dissatisfied fully satisfied

20% 32%

partly satisfied
48%

GRAPH 4.22

Interpretation

The table 4.22 reveals that 48 percent of peoples are partly satisfied the

celebrity endorsement, 32 percent of the people are fully satisfied the celebrity

endorsement and 20 percent dissatisfied the celebrity endorsement.

60
 CHAPTER-5

FINDINGS, SUGGESTIONS, CONCLUSIONS

61
 FINDINGS
The major findings of the study are:-

1. Majority of respondents are belongs to the age group of 20-30.

2. Majority of respondents are female.

3. Most of the respondents are professionals.

4. Majority of the respondents having average monthly income between

5000-25000.

5. Most of the respondents are watching celebrity advertisement, small portion

of peoples are watching political advertisement.

6. Most of the respondents are buy the product according to the product

quality. Only 4 percent of the peoples are buy the product on the basis

product celebrity endorser.

7. Most of respondents are somewhat agree about that products which are

endorsed by the famous peoples they are quality products.

8. For 38percent of respondents the most motivating factor behind a purchase is

the latest models and trends. Only 4 percent of respondents are depends on

the fewer prices.

9. Most of the peoples believe that the products are endorsed by celebrities are

of quality.

10. 50 percent of the peoples are persuaded by the brand name while purchasing

the motor vehicle.

62
11. The most influencing factor behind purchase of food products is quality

which is 44 percent.

12. Increase of home appliances 64 percent of respondents are responded to the

quality of the product.

13. As of clothing, most of the respondents are influenced of the brand of the

product.

14. Most of the peoples is not at all influenced by such celebrity presence.

15. Most of the respondents are believe that celebrity endorsement is help to

increase a company’s revenue.

16. Majority of the respondents are influenced by film star. 36 percent of the

sports persons are also persuade the buyer to purchase the products.

17. Majority of the respondents are not at all believe that celebrity use those

products which they endorse.

18. The most persuading means of advertisement is television.

19. Most of the people surveyed, 50 percent the reason by producers engage in

celebrity endorsement is for easy identification of their brand or product.

20. Most of the people are somewhat agree that they compare with current

product with favourite actor endorsing the product.

21. Majority of the respondents are of opinion that there is no association

between celebrity endorsement and quality or performance of the product.

22. Most of the respondents strongly disagree, that they do not go to another

product if their favourite actor endorsing that product.

63
23. Most of the respondents are of opinion that, they do not buy some product

just because they are endorsed people whom they don’t like.

24.Majority of the respondents are partly satisfied with celebrity endorsement.

64
 SUGGESTIONS

1. Clothing and automobile industries need not engage in celebrity

endorsement as it is the least motivating factor behind a purchase for a

consumer.

2. The manufactures of consumer durables like home appliances should

focus more on quality in their products compared to their competitors

than celebrity endorsement.

3. As television remains the most persuading means of advertising media,

producers should use this to their maximum.

4. People are becoming conscious about the quality of the product. So the

producers must give more attention to improve quality along with

celebrity endorsement.

65
 CONCLUSION

Most of the customers are partly satisfied with celebrity endorsement. While

going through the data analysis it is evident that consumers are indeed

influenced by the celebrity endorsement during a purchase decision. The

customers give more preference to quality of the product. They are given little

consideration to the celebrity who endorse it. Celebrity endorsement is the only

the means of promotion of the product.

Majority of people are no association between celebrity

endorsement and quality or performance of the product. Thus, there is wide

scope for celebrity endorsement for marketers. But it requires more effort

because people prefer quality of the product than celebrity endorsement.

66
 BIBLIOGRAPHY

Books

1. Biplap, Bose S. “Marketing Management”Himalaya publications,1998

2. Radha V. and Oommen P.T “Marketing Management”
3. Raman, B.S.“Marketing and Salesmanship”.Manglore: United
Publishers;1990
4. Rustom S. Davar Modern “Marketing Management”
5. Tom Cannon “Basic Marketing Principles and Practices”

Journals

1. Agrawal. J and Kamakura.A (1995), “The economic worth of celebrity

endorsers: An event study analysis”, Journal of Marketing, Vol. 59(3)

pp. 56-62.

2. Friedman H. and Friedman L., “Celebrity management is still evolving

in India”, Indian Journal of Marketing, volume 43. No. 9;2010.pp 32-39

3. Mehulkumar “celebrities: means of brand building” Indian Journal of

Marketing, volume 43. No. 9;2005.pp 42-50

67
Web sites

www.broadcastnewscorp.com
www.coolavenues.com
www.rediff.com
www.wikipedia.com

68
APPENDIX

69
 QUESTIONNAIRE

1. Name :

2. Age : 20-30 30-40 40-50

50 and above

3. Sex : Male Female

4. Occupation : Government employee Business

Professionals Others

5. Income : 5000-25000 25000-50000

50000-75000 above 75000

6. What type of advertisement you watch ?

Animated advertisement Celebrity advertisement

political advertisement

7. What comes to your mind first when you go to buy a product ?

Product quality product design product advertisement

product celebrity endorser

8. I go only for those products which are endorsed by famous people they are

quality products. With out any doubt mark any one

Strongly agree Somewhat agree Somewhat disagree

Strongly disagree

9. Which of the following factor influence you while buying products?

Discounts and offer Latest models and trends Celebrity endorsement

70
 Recommendation from friends, relatives Low prices

10. Do you believe that products endorsed by celebrities are of quality?

Most of the times Sometimes No

11. What is the most influencing factor to purchasing the following products

A) Motor vehicle

Quality Celebrity endorsement Brand name

Recommendation from friends, family etc

B) Food products

Quality celebrity endorsement Brand name

Recommendation from friends, family etc

C) Home appliances

Quality celebrity endorsement Brand name

Recommendations from friends, family etc

D) Clothing

Quality Celebrity advertisement Brand name

Recommendation from friends, family etc

12. Does the presence of celebrities like Mohan Lal , Mammootty, Amithab

Bachan Kareena Kapoor etc in advertisement encourage you to buy that

particular product?

sometimes often No

71
13.Companies are investing large amounts of money for celebrities.Do you

think that its helping them to increase their total revenue?

Yes No Don’t know

14.What type of celebrity endorsement persuades you personally to purchase

products?

Film stars Sports persons

T.V personalities Other famous personalities

15.Do you believe that celebrities use those products which they endorse?

Yes No Don’t know

16.Through which medium celebrity endorsement persuaded you the most to

purchase a product?

Television Radio News paper

Internet Magazines

17.What do you think is the reason producers engage in celebrity endorsement?

Easy identification of product

To compete with competitors

To increase sales and thus profit

Easy brand recall

18. When I see my favourite actor endorsing a product, I tend to compare it

with my current product .mark any one

72
Strongly agree Somewhat agree Somewhat disagree

Strongly disagree

19.Do you associate the celebrity directly with the quality or performance of

the product mark one

Strongly agree Somewhat agree Somewhat disagree

Strongly disagree

20. I switch to another product if I see my favourite actor endorsing that

product mark one

Strongly agree somewhat agree somewhat disagree

Strongly disagree

21. I do not buy some products just because they are endorsed people whom

I don’t like . mark one

Strongly agree somewhat agree somewhat disagree

Strongly disagree

22. Your level of satisfaction on celebrity endorsement?

100-80% 80-50% 50-30% 30-0%

Any Suggestions:

73