Project Report

On

“EFFECT OF CELEBRITY ENDORSEMENT ON

CONSUMER BUYING BEHAVIOR”

Masters of Business Administration Session (2019-21)

Submitted By:-
Name – Sagar Yadav
Class- MBA (3rd Sem.)
Class Roll no:-2105

Submitted To:-
Dr. Pradeep Tomar
Assistant Professor, MDUCentre for
Management Lecturer- CPAS & Allied studies
Professional
Sec-40, Gurgaon
Sector-40, Gurgaon
 DECLARATION

I, Sagar Yadav , Roll No. 2105 declares that the Major Project Report
entitled “EFFECT OF CELEBRITY ENDORSEMENT ON
CONSUMER BUYING BEHAVIOR” is prepared by me and it is an
authentic work carried out by me. The matter contained in this has not
been submitted earlier for the award of any degree or diploma to the best
of my knowledge and belief.

Sagar Yadav

Roll No. – 2105

2
 CERTIFICATE FROM GUIDE

This is to certify that the Project Work titled “EFFECT OF CELEBRITY ENDORSEMENT
TOWARDS CONSUMER BEHAVIOR” is a bonafide work carried out by Sagar Yadav , roll
no. 2105 student of MBA 2019-2021 of School of Management, MDU CPAS

Signature of Guide:

Name: Dr. Pradeep Tomar

Designation: Faculty

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 ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of views and ideas,
suggestions and contributions and work involving many individuals. This project also bears the
imprint of many people. Thus, one of the most pleasant parts of writing this report is the
opportunity to thank those who have contributed towards it. I would like to acknowledge the love
and support of my parents who have encouraged me throughout the journey of this project.

I am using this opportunity to express my deepest gratitude and special thanks to Dr. Pradeep
Tomar my mentor who in spite of being extraordinarily busy with his duties, took time out to
hear, guide and keep me on the correct path and allowing me to carry out my project.

My thanks and appreciations also go to my friends and colleges in developing the project and
people who have willingly helped me out with their abilities. I am also thankful to all the other
faculty & staff members of our department for their kind cooperation and help.

I perceive this opportunity as a big milestone in my career development. I will strive to use
gained knowledge in the best possible way, and I will continue to work on my improvement, in
order to attain desired career objectives.

Sagar Yadav

MBA 3rd sem

2105

4
 ABSTRACT

Knowing about celebrity endorsement is important for the customers in market as it produces
consistency in behavior and relates to the preferences of product. Celebrity endorsement
becomes the multimillion industries in the world.

Marketers endorsed celebrities with their products and brands in the advertisement to increase
their sales and change the perception of the viewers regarding their brands, which positively
impact on their buying behavior.

This research study focuses on celebrity endorsement and its impact on their customers buying
behavior. The present study aims to examine the effect of celebrity endorsement on consumer
buying behavior. Today’s market has been covered with the heavy competition.

People are changing their living style related with their favorite celebrity. So, a study is
conducted on the topic “Effect of celebrity endorsement on consumer buying behavior”. These
things create a great impact on the buying behavior the persons. Over a period of time it has
become a calculated formula of using celebrity for product endorsement for sales increases and
making a product huge success in market.

TABLE OF CONTENT

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CHAPTER 1 - INTRODUCTION 8
CHAPTER 2 - LITERATURE REVIEW 11
CHAPTER 3 - RESEARCH METHOLOGY15
CHAPTER 4 - DATA ANALYSIS 17
CHAPTER 5 - CONCLUSION AND IMPLICATIONS: 25
REFERENCES 26
ANNEXURE 1 28

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7
 CHAPTER 1 - INTRODUCTION

1.1 INTRODUCTION TO CONCEPT

In today’s world the celebrities are being treated as a role model. People are changing their living
style related with their favorite celebrity. These things create a great impact on the buying
behavior the persons. Over a period of time it has become a calculated formula of using celebrity
for product endorsement for sales increases and making a product huge success in market.
Celebrity endorsement relates to an imaging of a product through a person who is well known for
his achievement and is public face. Companies start adopting the fundamental of widely using
well known faces for promoting products. For Examples: Sachin Tendulkar for Boost and
Salman Khan for Revital etc.

From last 150 years advertising is changing in different phases from classical to modern. Now a
day it’s the best strategy used by marketers to influence customers by showing celebrities with
their product.

Advertisement:

A notice or announcement in a public medium promoting a product, services or events or

publicising. for alcoholic drinks. Major intended of each commercial is to create attentiveness
and stimulate interests in consumers mind. Today’s almost every company from different
industries uses advertisement as their basic tool to encourage their goods and services.

Celebrities:

Celebrities are those people who have well known by large number of people. They have special
uniqueness and they refers to the fame and public attention accorded by mass media to

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individuals or groups or occasionally but is usually applied to the persons or groups of people
themselves who receives such a status of fame and attention.

Celebrity Endorsement:

Celebrity endorsement is a promotion strategy to attracts the customers. By analyzing the current
market, now it’s become the need of the marketer to use the different famous personality to
relate with their brand to create unique identity of brand and to do famous his company brand
and product. This can increase the expectation of costumers.

Brand:

Brand is a given name that indicates symbol, intend or blend of them that makes one product or
services different from other product or services different from others product or services. Brand
is all about to create some associations with the customers. To do your brand successful first you
need to understand the desires of your customers and then offer any brand in manner that
according to the customer demand.

Factors effecting buying behavior: There are several factors, which pressure the buying
behavior:

a) Cultural Influence: It has the broadcast and the deepest influence on consumer buying
behavior and defines culture as shaping process. Culture values can change and have to
be watched by marketers.
b) Social Influence: Social influence are those influence that clearly mold buying behavior.
It affects through reference group, family member and social class.
c) Family Influence: Family lifecycle and family decision making has the most in influence
on one’s buying behavior.
d) Psychological Effect: These influences are related to our perceptions, learning, memory
and motivation. It changes the buying behavior through making the perceived picture of
product in customer mind.

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Impact on buying behavior Impact of celebrity endorsement:

Through different ways the advertisement message can spread like TV ads, radio publicity, print
promotion, online advertising, billboard marketing and endorsement. The best nature of
advertisement depends on the type of industry or firm and its necessities and desires. The
common conviction of marketer is that there is a significant and huge impact of those
advertisements, which are endorsed the famous celebrities comparably with the non-endorsed
celebrity.

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 CHAPTER 2 - LITERATURE REVIEW

Advertisers regularly practices the strategies intended to attracts customers interest to their
message and differentiate their offerings from rival products with the anticipations of influencing
buying behavior of the customer. In today’s competitive world, a quality is positioned on an
approach, which can accomplish these objectives. One challenges at such a plan includes the use
of celebrity representatives. The review of the literature for this study focuses on procedures
used to identify teaching and learning styles and what effect a match between the two has on
student learning outcomes and evaluation of instructors. The review focuses on a number of
different instruments used to identify teaching and learning styles. The chapter begins with a
definition of learning styles, teaching styles, and matching, followed by the findings of
researchers using various instruments to measure learning and teaching styles.

Elkin and Block (1983) found that endorser may be dominant in buying behavior as they attract
considerations towards the commercials into the messy flow of communication and they are
active individuals with eye catching and likeable traits.

Haghirian and Madiberge found that use of eye-catching celebrity serves as a foundation to
enhance feelings towards the advertisement. This mind set to 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 reacts towards it.

Aggarwal and wangers (1995) observed that mass media were flooded through descriptions
along with information concerning superstars and because of a consequence, celebrities have
high repute, fascinating description according to the community opinion.

Lima (2017) revealed that celebrity endorsement has an effect on consumers. It also highlighted
that consumers deemed four attributes more important for a celebrity endorser to possess:
likeability, credibility, attractiveness and expertise. Based on these findings, it was calculated
through descriptive statistics that Shimp’s NO TEARS Model and the Source Attractiveness

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Model are more effective in the choice of celebrity endorsers. Lastly, it was found that social
media platforms are the most effective medias for celebrity endorsement, in particular Instagram.

Lima, S. (2017)  The Effect of Celebrity Endorsement on 15-34 Year Old Consumer Buying
Behavior (Doctoral dissertation, The IIE). Retrieved from:
http://iiespace.iie.ac.za/bitstream/handle/11622/204/Shary%20LIMA.pdf?sequence=1

Gauns et. Al (2018) found that a significant association exists between celebrity
supporters/neutral/opposers with respect to age, gender, occupation and income level, except in
case of education and location. Consumers also find celebrity endorsements more attractive and
influential as compared to non-celebrity endorsements. Moreover, the tested attributes show
positive relationship with purchase intention, except in case of expertise and trustworthiness of
celebrity. In general, it can be concluded that celebrity attributes do impact the purchase
intention of consumers.

Gauns, K. K., Pillai, S. K. B., Kamat, K., Chen, R. F., & Chang, L. C. (2018). Impact of
Celebrity Endorsement on Consumer Buying Behavior in the State of Goa. IIM Kozhikode
Society & Management Review, 7(1), 45-58.

Djafarova & Rushworth (2017) investigated the impact of Instagram upon source credibility,
consumer buying intention and social identification with different types of celebrities. In-depth
interviews were conducted with 18 female Instagram users aged 18–30 to determine the extent to
which Instagram influences their buying behavior. The research findings showed that celebrities
on Instagram were influential in the purchase behavior of young female users. However, non-
traditional celebrities such as bloggers, YouTube personalities and ‘Instafamous’ profiles were
more powerful, as participants regard them as more credible and are able to relate to these, rather
than more traditional, celebrities. Female users are perceptively aware and prefer to follow
Instagram profiles that intentionally portray positive images and provide encouraging reviews.

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Djafarova, E., & Rushworth, C. (2017). Exploring the credibility of online celebrities' Instagram
profiles in influencing the purchase decisions of young female users. Computers in Human
Behavior, 68, 1-7.

Qureshi and Malik (2017) showed that (1) participation, interaction and pleasure together define
OSC consumer behavior; (2) informational incentives and social influence are two crucial
preconditions for OSC consumer behavior. The results provide good support for the proposed
research model and hypotheses and yield interesting insights about the important roles of
informational incentives and social influence collectively facilitating OSC consumer behavior
during the Singles' Day period in China.

QURESHI, M. M., & MALIK, H. M. (2017). The Impact of Celebrity Endorsement on

Consumer Buying Behavior. Advances in Social Sciences Research Journal, 4(3).

Ahmed et. Al (2015) found that celebrities endorsed advertisements are more attractive than the
non-endorsed advertisements. More over the tested attributes of celebrity show positive
relationship with the buying behavior and brand perception as well. It also proved that there is a
significant impact of celebrity endorsement on the buying behavior. Finally, the results of the
study further proved that there is a significant impact of celebrity endorsement on the buying
behavior of customers.

Ahmed, R., Seedani, S., Ahuja, M., & Paryani, S. (2015). Impact of celebrity endorsement on
consumer buying behavior. Available at SSRN 2666148.

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 CHAPTER 3 - RESEARCH METHOLOGY

RESEARCH OBJECTIVE

The aim of the study is to know about the effect of celebrity endorsement on consumer

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buying behaviour. The focus of the study is on the following four objectives:

1) To understand how celebrity endorsements has an impact on customer buying habits

2) To understand what makes a celebrity take a particular brand for endorsing.
3) To find out the relationships between celebrity endorsement and consumer buying
behaviour.
4) To analyse that which factor of celebrity attracts more to the public.

RESEARCH DESIGN

A research design is a framework or blueprint for conducting the research project. It gives the
detail of the procedures necessary for obtaining the information needed to structure or solve
research problems.

TYPE OF RESEARCH

The study is a descriptive as well as analytical in nature

TYPE OF DATA

It makes use of primary as well as secondary data.

DATA COLLECTION METHOD

A structural questionnaire is formulated based on the objectives of the study and the data
required for findings solution, feedback will be taken from customers to know about the impact
of celebrity endorsement towards customer.

Primary Data: Data observed and collected directly from first-hand experience. A structured
questionnaire is formed and circulated among the customers in stores.

Secondary Data: Published data and the data collected in the past or other parties. Data
collected from journals and the websites.

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DATA COLLECTION TECHNIQUES

· Questionnaire and Survey

· Online sample design

RESEARCH DESIGN

The research is quantitative and descriptive in nature. Both primary and secondary data sources
have been collected.

SAMPLE SIZE

The sample size will be 70 individual, the individual was selected at convenient basis.

SAMPLE PROCEDURE

Random sampling

SAMPLE LOCATON

The responses from different individuals was collected from Delhi NCR region.

CHAPTER 4 - DATA ANALYSIS

1) AGE

Below 18 7

18-25 62

25-35 3

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 35 above 5

Table
1: Age

Distribution

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ANALYSIS- According to the survey of 70 respondents, maximum of the respondents are of the
age group between 18-25 years that is 81.2%, 8.7% are below 18 years and rest are above 25
years.

2) PROFESSION

ANALYSIS- According to the survey, 37.7% are kids, 34.8% are undergratuate respondents,
15.9% and 8.7% are postgraduate and emlopyees respectively.

2) How frequently do you come across advertisement that features celebrities?

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ANALYSIS- According to the survey of 70 repondents we find that 40.6% come across
advertsemt oftenly, 27.5% of them rarely come across advertisement that features celebrities,
26.1% of them come across sometimes and rest few percent are with never and always.

3) What attracts you more?

ANALYSIS – According to the survey of respondents majority of the peoples are

atrracted towars celebrity endorsement advertisement that is 73.9% and only 18.8% are
attracted towars non celebrity endorsement advertisment.

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4) In terms of shampoo, have you purchased HEAD & SHOULDER?

ANALYSIS- According to the responses of the respondents majority of the people have
purchased Head & Shoulder shampoo that is 65.2% and 34.8% of them have never
purchased it.

5) What comes to your mind for brand HEAD & SHOULDER?

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 ANALYSIS- According to the data 43.5% says that advertisement is the main element
that comes to their mind for brand head & Shoulder, 20.3% people feels fregrance of
clinic plus, 20.3% says logo and only 15.9% are with celebrity.

6) Does celebrity endorser have impact on purchase of this product?

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 ANALYSIS- This question is added in the questionaaire just to see whether the
endorsement by the celebrity have an effect/no effect on purchase of head &shoulder shampoo
and according to the responses we get 63.8% of the respondents are in favour and only 36.2% are
against it.

7) What type of celebrity endorsement persuade you to purchase a product?

ANALYSIS- According to the data 52.2% of the respondensts says trustworthyness of

the product persuade them to purchase, 17.4% says crediblity and 14.5% and 15.9% of
the people are with sense of similarity to celebrity and attractiveness of celebrity
respectively.

8) Which medium do you consider most effective when celebrity endorsement is used?

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ANALYSIS- According to the When celebrity endorsement is used for a product
marketing television is the most important and effective way to communicate to the large
no. of people as 72.6% of the respondents vote for it and only 13% ,10% vote for other
mediums that is magzine, internet and radio.

ANALYSIS- In this various statements are considered to know how much the celebrity
endorsement of a product have an effect on consumers and it was found that majority of
the respondents strongly agree with the first staement of celebrity endorsement helps in
remembering the product, maximum of them agree with the statements that celebrity
endorsement builds brand equity, celebrity endorsement builds trust and credibility, it
also hepls in taping new market.

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9) Does celebrity endorsement help in brand promotion?

ANALYSIS- According to the survey of the 70 respondents it was found that 62.3% of
the people feels that celebrity endorsement helps in brand promotion, 13% says celebrity
endorsement does not help in brand promotion and 24% of the respondents says may be.
But majority of the peoples feels that celebrity endorsement helps in brand promotion.

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 CHAPTER 5 - CONCLUSION AND IMPLICATIONS:

Conclusions:

This research concludes the celebrity endorsed advertisement are more attractive than the non-
celebrity endorsed advertisements. Respondents also voted that the best medium for watching the
advertisement is TV and then internet. It is further concluded that the relationship is between
celebrity attractiveness. There is a significant relationship among all the celebrity. Respondents
clearly conveyed that they do purchase those products and services, which are endorsed by
celebrities.  Celebrity endorsement is certainly one of the best strategies that companies should
adopt when targeting the new clients. Celebrity endorsement can apply to both small businesses
and large multinational companies. However, the type of stars may differ. Multinational
institutions have to use a well-known international celebrity, may it be a musician, artist, actor,
news anchor or any other globally recognized celebrity who will categorically increase their
sales and improve the business. On the other hand, local companies can get a well-known local
celebrity depending on the target market and audience, which will see it improve the sales

The celebrity endorsement has reasonable impact on customer as per their attitude and buying
behavior. Physical attractiveness, credibility, of celebrity with the reference to endorsed the
advertisements all have impact on consumers about advertised products. People like to buy the
product of more if they endorsed by the celebrity and it shows that today’s customer is aware and
influenced by media.

Limitation:

1) Change in celebrity’s image

2) Overexposure of celebrity
3) Overshadowing the brand

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 REFERENCES

· Elkin and Block (1983)

· Haghirian and Madiberge
· Aggarwal and Wangers (1995)

· Lima, S. (2017) The Effect of Celebrity Endorsement on 15-34 Year Old Consumer
Buying Behavior (Doctoral dissertation, The IIE). Retrieved from:
http://iiespace.iie.ac.za/bitstream/handle/11622/204/Shary%20LIMA.pdf?sequence=1
· Gauns, K. K., Pillai, S. K. B., Kamat, K., Chen, R. F., & Chang, L. C. (2018). Impact of
Celebrity Endorsement on Consumer Buying Behavior in the State of Goa. IIM
Kozhikode Society & Management Review, 7(1), 45-58.
· Djafarova, E., & Rushworth, C. (2017). Exploring the credibility of online celebrities'
Instagram profiles in influencing the purchase decisions of young female
users. Computers in Human Behavior, 68, 1-7.
· QURESHI, M. M., & MALIK, H. M. (2017). The Impact of Celebrity Endorsement on
Consumer Buying Behavior. Advances in Social Sciences Research Journal, 4(3).
· Ahmed, R., Seedani, S., Ahuja, M., & Paryani, S. (2015). Impact of celebrity
endorsement on consumer buying behavior. Available at SSRN 2666148.

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 ANNEXURE 1

Q.1 How old are you?

a) below 18 b) 18-25 c) 25-35 d) above 35

Q.2 Sex?

a) Male b) Female

Q.3 What is your profession?

a) Student b) Undergraduate c) Post graduate d) employee

Q.4 How frequently do you come across advertisements that features celebrities?

a) Never b) Rarely c) Sometimes d) Often

Q.5 What attracts you more?

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a) Celebrity endorsement advertisement

b) Non-celebrity endorsement advertisement

Q.6 In terms of shampoo, have you purchased HEAD & SHOULDER?

a) Yes b) No

Q.7 What comes to your mind for brand HEAD & SHOULDER?

a) Logo b) celebrity c) advertisement d) fragrance

Q.8 Does celebrity endorser have impact on purchase of this product?

a) Yes b) No

Q.9 What type of celebrity endorsement persuade you to purchase the product?

a) Credibility b) trust worthiness c) sense of similarity to celebrity d) attractiveness of

celebrity

Q.10 Tick the following in better recalling of shampoo (HEAD & SHOULDER)?

a) Celebrity in advertisement b) Good display c) Banners advertisement d) Demo

Q.11 Which medium do you consider most effective when celebrity endorsement is used?

a) Television Advertisement b) Magazine and print advertisement c) Radio advertisement d)

Internet Advertisement

Q.12 Rate the following for celebrity endorsement?

a) Celebrity endorsement helps in remembering advertisement and the products

1) Agree 2) Strongly agree 3) Neutral 4) Disagree 5) Strongly disagree

b) Celebrity endorsement builds brand equity

1) Agree 2) Strongly agree 3) Neutral 4) Disagree 5) Strongly disagree

c) Celebrity endorsement builds trust and credibility of brand

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1) Agree 2) Strongly agree 3) Neutral 4) Disagree 5) Strongly disagree

d) Celebrity endorsement helps in taping the new market

1) Agree 2) Strongly agree 3) Neutral 4) Disagree 5) Strongly disagree

Q.13 Rate the following for celebrity endorsement?

a) Celebrity endorsement is money wasting activity

1) Agree 2) Strongly agree 3) Neutral 4) Disagree 5) Strongly disagree

b) Celebrity endorsement increases the brand image

1) Agree 2) Strongly disagree 3) Neutral 4) Disagree 5) Strongly disagree

c) Celebrity should be fully accountable for the brand they endorse

1) Agree 2) Strongly disagree 3) neutral 4) Disagree 5) Strongly disagree

d) Celebrities are misleading consumer

1) Agree 2) Strongly disagree 3) neutral 4) Disagree 5) Strongly disagree

Q.14 Does celebrity endorsement help in brand promotion?

a) Yes b) No c) Maybe

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