Project 4th Sem (3)

“A STUDY ON IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING

BEHAVIOR AND AS A SOURCE OF BRAND-BUILDING:”

INTRODUCTION

The practice of celebrities being used for rendering services other than performing their actual

job as either an actor or an athlete, such as endorsements has proliferated over time. Despite the

cost and the risks involved with this technique of advertising, it is been used quite extensively in

the present era. The instrument of celebrity endorsement has nowadays become a pervasive

element in advertising and communication management.

India as a country is known for loving its stars. The Indians idolize their boll wood actors and

cricketers. The advertisers see this as an opportunity to grab and work on so as to expand their

operations and promote their product. This dissertation focuses on examining the perception of

these Indian Consumers about the celebrity endorsement process and the subsequent impact on

their purchase decisions.

This research attempts to assess whether celebrity endorsement can translate into brand loyalty,

over a period of time. In this way, one would be able to see whether or not celebrity

endorsements can positively influence the brand, more specifically, does it lead to brand loyalty

in the long run? The concept is considered as a measure of positively influencing consumers'

behavior towards making a purchase of a company's offer.

This study mainly focuses on:

1) To understand the influence of celebrity endorsement on purchasing decision of consumer.

2) To understand the pros & cons of celebrity endorsement.

3) To analyze the whether the celebrity fits to the particular products that he/she endorses.

4) To understand the buying preference of consumers in relation to gender.

RESEARCH METHODOLODGY: The focus was on the behavioral pattern and the impact of

celebrity endorsements on the purchase attitude of the consumers. To evaluate the feasibility of

the research proposal, a survey was conducted through distribution of questionnaires. Data

collection comprises of primary data and secondary data. Various MS Excel tools were used for

data analysis. These included pie charts and bar graphs. These were used so as to represent the

facts and figures in an easily understandable manner.

Celebrity endorsement is always a two-edged sword and it has a number of positives— if

properly matched it can do wonders for the company, and if not it may produce a bad image of

the company and its brand. In this globalised era, celebrity advertising, emerges as a better way

of advertising. In promotion and of advertising, a testimonial or show consists of a written or

spoken statement, sometimes from a person figure, sometimes from a private citizen, extolling

the virtue of some product. The term "testimonial" most commonly applies to the sales-pitches

attributed to ordinary citizens, whereas "endorsement" usually applies to pitches by celebrities.

Advertisers have attempted to quantify and qualify the use of celebrities in their marketing

campaigns by evaluating their awareness, appeal, and relevance to a brand's image and the

celebrity's influence on consumer buying behavior. Audiences have a higher recall of, and can be

more persuaded by, advertisements containing celebrities. Celebrity spokespeople are a staple in

marketing. More than 20 percent of all advertisements today feature a famous face, voice or

likeness. Even small businesses use celebrity spokespersons. The reason why Consumers pay

attentions to celebrities because people are inherently attracted to a familiar face and voice.

'Celebrity Endorsement'

“Celebrity is an omnipresent feature of society, blazing lasting impressions in the memories of

all who cross its path.” Kurzman et.al (2007).

Celebrities are people who enjoy specific public recognition by a large number of certain groups

of people. They have some characteristic attributes like attractiveness, extraordinary lifestyle or

special skills that are not commonly observed. The use of celebrities in order to increase the sales

and/ or the recall value of a brand is called celebrity endorsement.

McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys public

recognition and who uses this recognition on behalf of a consumer good by appearing with it in

an advertisement (marcoms), is useful, because when celebrities are depicted in marcoms, they

bring their own culturally related meanings, thereto, irrespective of the required promotional

role."

Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high

in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a

more favorable evaluation of the product and advertisement, and a significantly more positive

purchase intention. Schikel (1985) highlights the subtle yet intense impact of celebrities on

everyday thinking and living. Defined as ‘intimacy at a distance’, it is seen that individuals have

a tendency to form illusions of an interpersonal relationship with celebrities. (Horton &Wohl

1956).

Today celebrity endorsement is being seen more and more as an integral part in an integrated

marketing communication strategy. In India today, the use of celebrity advertising for companies

has become a trend and a perceive winning formula of corporate image building and product

marketing. Associating a brand with a top-notch celebrity can do more than perk up brand recall.

It can create linkages with the stars appeal, thereby adding refreshing and new dimensions to the

brand image. Celebrity endorsement if used effectively makes the brand stand out, brand recall

and facilitates instant awareness but celebrities endorsing multi brands has created a great

confusion in the mind of the customers.

Forms of celebrity endorsement:

As spokespersons, e.g., Amitabh Bachchan in KBC. In print and electronic advertisements, e.g., Shah Rukh Khan in Omega and Pepsi. In outdoor media like hoardings, e.g., Aishwarya Rai in Lux in some parts of North India. As brand ambassadors, e.g., Fardeen Khan in Provogue. The use of brands by celebrities in movies, e.g., Hero Cycles, Paas Paas and Coke in

Yaadein.

Celebrity endorsements work best when the celebrity is not introducing the brand. When the

product already has a strong identity and a USP that is well established, then a celebrity can

come in and give the brand an added fillip and generate some more interest value. However,

what is of paramount importance is to find a complete fit between the values of the brand and

the values of the celebrity. One need to create a unique situation or story that links the

celebrity to the product. Celebrity endorsements are impelled by virtue of the following

motives:

Ins tant Brand Awareness and Recall.

Celebr i ty values define, and refresh the brand image.

Celebr i t ies add new dimensions to the brand image.

Ins tant credibility or aspiration PR coverage.

Lack of ideas.

Convincing clients.

The multiplier effect formula for a successful brand: -

S=P* D*AV -- the multiplier effect

Where

S is a Successful Brand

P is an Effective Product

D is Distinctive Identity

AV is Added Values

The realm of the celebrity’s impact is confined to bestow a distinctive identity and

provide AV to the brand; the celebrity does not have the power to improve or debilitate

the efficiency and features of the core product. Thus, we are gradually approaching an

evident proposition claiming, "The health of a brand can definitely be improved up to

some extent by celebrity endorsement. But one has to remember that endorsing a

celebrity is a means to an end and not an end in itself.

Types of Celebrity Endorsements:

Celebrity branding has many aspects. A slight change in the type of branding used can result in

either a great success or a dismal failure. Celebrity branding falls into five general categories:

· Testimonial: The celebrity acts as a spokesperson for the brand.

· Imported: The celebrity performs a role known to the audience.

· Invented: The celebrity plays a new, original role.

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

· Harnessed: The celebrity's image is integrated with the ad's storyline.

Certain parameters that ensure proper compatibility between the celebrity and brand image are:

· Celebrity’s fit with the brand image.

· Celebrity—Target audience match

· Celebrity associated values.

· Costs of acquiring the celebrity.

· Celebrity—Product match.

· Celebrity controversy risk.

· Celebrity popularity.

· Celebrity availability.

· Celebrity physical attractiveness.

· Celebrity credibility.

· Celebrity prior endorsements.

· Whether celebrity is a brand

· Celebrity profession.

‘Celebrities as brands’ is a concept-selling challenge, as the current notion of celebrity

management is far from ideal – it’s perceived as a business that merely attaches celebrity to the

brand to get that added advantage. However, the actual job is not mere brokerage --- it’s about

Selecting a celebrity whose characteristics’ are congruent with the brand image.

Literature Review:

Celebrities are deemed to be referents by consumers, which refers to imaginary or actual

individuals envisioned to have significant bearing on the consumer’s evaluations, aspirations and

behavior. The power of the celebrities lies in these influences that they exert on consumers, even

though they themselves are physically and socially distant from an average consumer. (Choi &

Rifon, 2007).

Consumers have a tendency to form an attachment to any object that reinforces one’s self

identity or desired image, renders feelings of connectedness to a group or to any object that elicit

nostalgia, and perhaps the most vivid example of this form of attachment maybe found in the

consumers preoccupation with the celebrities. (O’Mahony and Meenaghan, 1998).

Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high

in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a

more favorable evaluation of the product and advertisement, and a significantly more positive

purchase intention.

Hamish and Pringle (2004) suggest 3 macro factors present in the market today that in principal

justifies the validity of celebrity endorsement as a promotional strategy. The first factors the

increasing opportunity for interactivity between brands and their consumers. Second is the “era

of consent” situation present today where consumers have more control over the messages they

receive. And lastly is the increasing media fragmentation and commercial communication

clutter. (Temperley and Tangen, 2006). Pappas (1999) examined the value of star power in an

endorsement and pointed towards how a well-designed advertising helped celebrities convert

their star power into brand equity.

The perceived importance and the actual use of endorser selection criteria may vary from culture

to culture. Differences in the entertainment industry and the agency business, and more broadly,

in the cultural environments are likely to influence the execution of the celebrity endorsement

strategy across countries.( Erdogan, Baker, and Tagg , 2001)

McCracken (1989) found that the use of celebrity endorsers stand for an effective way of

transferring meaning to brands as it is believed that celebrity endorsers bring their own

emblematic meaning to the endorsement process and that this cultural meaning residing in the

celebrity is passed on to the product which in turn is passed on to the consumer.

Celebrity endorsement is a billion dollar industry today with companies signing deals with

celebrities hoping that they can help them stand out from the clutter and give them a unique and

relevant position in the mind of the consumer. The reason for using celebrity endorsement

involves its potential to create awareness, positive feelings towards their advertising and brand.

Advertisement featuring celebrity endorsement is often also perceived to be entertaining.

(Kambitsis et al., 2002)

Celebrity Endorsements act as a credible means of spending money .This is because this is a

world of products for which the value a consumer obtains from purchasing any given variety.

This could be for reasons of social standing-People want to wear the “right” clothes, drink the

“right” beverages and use the “right” fragrances. Specifically a consumer that observes messages

for two different firm’s products, one product’s message containing a celebrity endorsed and the

other not believes the celebrity endorsed product will have more purchases and so be of higher

value( Lalitha Balakrishnan and C.Shalini Kumar: Effect of Celebrity Based Advertisements on

the Purchase Attitude of Consumers towards Durable Products).

Advertising is heavily used in process of personality creation. This follow logically from the fact

that personalities are particularly important for brand building. They provide unique associations

with the brand and these associations’ acts as a stimulus for the customer to link their personality

with the brand. (Pettitt, 2000).

"High-profile endorsements from athletes and celebrities will set you apart from your

competitors, and you can become a contender in the playing field —a celebrity spokesperson can

work for companies of all sizes."(Jonathan Gaines, president and CEO of top marketing firm

DMS Strategies).

One of the advantages to celebrity-based marketing campaigns is that: “Famous people hold the

viewer's attention. In this era of sound-bites and channel surfing, there is a demand for people's

time and focus.” Of course, any marketing material — even with a powerful celebrity

endorsement — must be a combination of both education and sales (Amy Dyson and Douglas

Turco).

"When you get a celebrity to endorse your company or sign a licensing agreement, you benefit

from customers' awareness of the property, [which] could include the perception of quality,

educational value or a certain image."(Patrick Bishop — co-author of "Money Tree Marketing:

Innovative Secrets That Will Double Your Small-Business Profits in 90 Days or Less).

Batra and Homer (2004) suggested that beliefs and personality assertions of endorsers need not

be verbally and explicitly stated in advertisements, but can be inferred by recipients. After

watching an advertisement the consumers try to find the meaning of the advertisement and

associate the same with the endorser and eventually transfer to the brand.

As per Neha Taleja (2005), Markets in which advertising coordinates consumer purchases,

celebrity endorsements are more likely chosen for products that have either of the following:

High price-cost margins, large potential customer pools and the need to co-ordinate across

diverse sets of customers.

DATA ANALYSIS

DEMOGRAPHIC PROFILE

AGE

Table No.:1

Age No. of respondents

Less than 20 years 2

20-25 years 68

25 years & above 30

Fig No.: 1

Interpretation: As per the survey, the majority of the respondents fall between the age categories of 20 to 25. The 25 and above age category of this category is higher than the other age groups.

GENDER

Table Number 2

Less than 20 2%

20-2568%

25 and above30%

Gender No of respondents (%)

Female 57

Male 44

Interpretation: Out of the total sample selected for the study 44% of the respondents are male and 57% are females.

OCCUPATION

Table Number 3

Occupation No of respondents (%)

Service class 34

Students 44

Others 20

Business class 15

Interpretation: Out of the total sample selected for the study, 34% of the respondents are service class and 44 % occupied by students and 15 % business class.

CONSUMER PERCEPTION AND CELEBRITY ENDORSEMENTS

Most likely medium to convey celebrity endorsed advertisements:

Table Number 4

Medium No of respondents (%)

Television Ads 70

Internet 15

Magazine 9

Radio 5

Newspaper 1

Interpretation: The study implies 85% of the respondents choosing Television as the better medium to convey celebrity endorsed advertisement followed by Internet and Magazines.

What factor affects your buying behavior towards a product purchase?

Table Number 5

Buying behavior Factors No of respondents (%)

Celebrity endorser 35Brand name 29

Opinion leader 18Price 18

Opinion Leader18%

Price18%

Celebrity-endorser35%

Brand name29%

Interpretation: Out of the total sample selected for the study nearly 35 % of the respondents said they consider celebrity endorsers while going for purchase, 29 % consider brand name followed by opinion leader & brand name. This implies that majority of the crowd considers celebrity endorser better than other factors.

What attracts you more: Celebrity endorsed advertisements or Non-celebrity advertisements?

Table Number 6

Attractive Factors No of respondents (%)

Celebrity endorsed ads 77

Non-celebrity ads 24

Interpretation: Out of the total sample selected for the study nearly 77 % of the respondents said celebrities catches their attention in advertisement , 24 % of the respondents considers non-celebrity ads as another major factor in an advertisement catches their attention .This implies that majority of the crowd considers celebrity endorsed ads catches their attention better than other factors.

What type of celebrities do you think is more influential as endorsers?

Table Number 7

Type of Celebrities No of respondents (%)

Film Stars 73

Sport stars 14

Business persons 8

Others 5

Politicians 1

Interpretation: Out of the samples selected for the study, 73 % of the people like to see film stars to endorse their Brands and 14% of them with sports star. While remaining want business & other personalities.

Do you think celebrities really use the product endorsed by them in real life?

Table Number 8

PreferencesNo of respondents

(%)Strongly Agree 18

Agree 40Indifferent 32Disagree 8

Strongly disagree 3

Strongly Agree18%

Agree40%

Indifferent32%

Disagree8%

Strongly disagree3%

How influential do you think is celebrity endorsements?

Table number 9

Preferences No of respondents (%)Very influential 20

Influential 42Somewhat influential 36

Not influential 3Not at all influential 0

Interpretation: Out of the total samples selected for the study, 42 % of the respondents consider celebrity endorsements as influential while 36 % considers only somewhat influential. This chart depicts that mostly people agree that Celebrity endorsement persuades them personally to purchase products.

Celebrity endorsement is an effective tool of persuasion of buying a product” Express your

opinion.

Table Number 10

Preferences No of respondents (%)Strongly Agree 12


Strongly Disagree 3

Strong

ly ag

ree

Agree

Indif

feren

t

Disagr

ee

Strong

ly dis

agree

0

5

10

15

20

25

30

35

40

45

12

43

36

73

Num

ber o

f Res

pons

es

Interpretation: - Out of the total sample selected for the study 43 % agree that Celebrity endorsement is an effective tool of persuasion.

Male endorser is more effective as compared to female endorser” Express your opinion:

Table Number 11

Preferences No of respondents (%)

Strongly Agree 9Agree 23

Indifferent 37Disagree 19

Strongly disagree 13

Strong

ly Agr

ee

Agree

Indif

feren

t

Disagr

ee

Strong

ly dis

agree

0

5

10

15

20

25

30

35

No of respondents

Does the presence of celebrities in the advertisements help you recognize and recall product more promptly?

Table number 12

Preferences No of respondents (%)

Strongly Agree 37

Agree 32

Indifferent 22

Disagree 7

Strongly disagree 3

Strong

ly Agr

ee

Agree

Indif

feren

t

Disagr

ee

Strong

ly dis

agree

0

5

10

15

20

25

30

35

No of respondents

Interpretation: Out of the total sample nearly 37% of the respondents are of the opinion that the

presence of celebrities in the ads helps in recalling and only few are of the opinion that

celebrities do not play any role in recall. From this we can imply that presence of celebrities in

the ads does play a part in recall & recognition of brand.

CELEBRITY ATTRIBUTES AND PURCHASE INTENTION:

As a consumer, do you consider ―Credibility of the celebrity as an attribute that can influence your purchase decision?

Table Number 13

Preferences No of respondentsStrongly Agree 11


Strongly disagree 4

Strong

ly ag

ree

Agree

Indif

feren

t

Disagr

ee

Strong

ly dis

agree

05

101520253035404550

11

50

20 16

4

Num

ber o

f Res

pons

es

As a consumer, do you consider the ―Likeability of the celebrity as an attribute that can influence your purchase decision for a certain product or service?

Table Number 14



Strongly disagree 8

Strongly agree

Agree Indifferent Disagree Strongly disagree

05

101520253035404550

11

50

20 16

4

Num

ber o

f Res

pons

es

As a consumer, do you think the ―Match between the celebrity and the product can an important attribute in influence your purchase decision for a certain product or service?

Table Number 15



Strongly disagree 8

Strong

ly Agr

ee

Agree

Indif

feren

t

Disagr

ee

Strong

ly dis

agree

05

101520253035

No of respondents

CELEBRITY ENDORSEMENTS AND PURCHASE INTENTION

Do you feel that ―Negative Publicity about a celebrity endorser can influence your purchase decision?

Table Number 16



Strongly disagree 9

Strongly

agre

e

Agree

Indiff

eren

t

Disagre

e

Strongly

disa

gree

0

5

10

15

20

25

30

35

20

3227

139

Num

ber o

f Res

pons

es

Interpretation: Out of the total sample collected 32 % agree negative publicity of a celebrity can influence their purchasing decision.

In overall, I‘m happy with purchasing products or services advertised by celebrities.

Table Number 17



Strongly disagree 4

Strongly

agree

Agree

Indifferent

Disagre

e

Strongly

disagre

e0

10

20

30

40

50

60

9

59

20

94

Num

ber o

f Res

pons

es

Interpretation: Out of the total samples selected for the study, 59% of the people are happy in

purchasing products endorsed by celebrities.

Conclusion

Advertising is seen as playing a manipulative and merciless role in the emerging brands cape,

seeking to transform customers into the personification of brand identity. Keller emphasizes the

need for a structured approach based on sound research in order to manage brands strategically

and to generate optimum value both in terms of asset valuation and marketing efficiency. To

achieve this effectively, value for the brand has to be created and managers must have the

knowledge and expertise to exploit this value by developing profitable brand strategies. It was

found that people love to see celebrities endorsing their brands so the involvement of common

man is pretty high with these celebrities. Overall research points to accumulated positive

influence over the audience's recall and purchase intentions, with celebrities deemed more

effective than using a typical consumer or expert.

Celebrity endorsement if used effectively, makes the brand stand out, galvanizes brand recall and

facilitates instant awareness. To achieve this, the marketer needs to be really disciplined in

choice of a celebrity. Hence the right use of celebrity can escalate the Unique Selling Proposition

i.e. it can act as a source of brand-building of a brand to new heights; but a cursory orientation of

a celebrity with a brand may prove to be claustrophobic for the brand.

This paper brings forth the following insights:

-Celebrity endorsements do work in the Indian scenario. The level and the magnitude of

the effect vary with the celebrity and the product category but most endorsements have a

favorable impact.

-The consumer looks for a variety of aspects from the endorsement like the credibility and

likeability of the endorser. Credibility also means the fit between the brand and the celebrity.

-More than the bad performance in the professional field, it is the association of the celebrity

with a controversy or ill-behavior that causes negative impact to the endorsements.

QUESTIONNAIRE

“A STUDY ON IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING

BEHAVIOR AND AS A SOURCE OF BRAND-BUILDING:”

DEMOGRAPHIC PROFILE

1. What is your age?

a. Less than 20 years b.20-25 c. 25 and above

2. What is your gender?

a. Male b. Female

3. What is your occupation?

a. Business Class b.Service Class c.Student d.Others

CONSUMER PERCEPTION AND CELEBRITY ENDORSEMENTS

4. Which of the following medium do you think is more likely to convey celebrity endorsed

advertisements?

a. Television Ads b. Magazines c. Internet d. Radio e. Newspapers

5. What factor affects your buying behavior towards a purchase?a) Price b) Opinion-leader c) Celebrity endorser d) Brand name

6. What attracts you more: celebrity endorsed advertisements or non-celebrity

advertisements?

a. Celebrity endorsed advertisements b. Non celebrity advertisements

7. What type of celebrities do you think is more influential as endorsers?

a. Film Stars b. Sport stars including cricketers c. Politicians d. Business persons

e. Others

8. How influential do you think is celebrity endorsements?

a. Very influential b. Influential c. somewhat influential d. Not influential

e. Not at all influential

9. Do you think celebrities really use the product endorsed by them in real life?

a Strongly agree b Agree c. Indifferent d. Disagree e. strongly disagree

10.”Celebrity endorsement is an effective tool of persuasion of buying a product” Express

your opinion:

a. strongly agree b. Agree c. Indifferent d .Disagree c. Strongly disagree

11.”Male endorser is more effective as compared to female endorser” Express your opinion

a. strongly agree b .Agree c. Indifferent d.Disagree e Strongly disagree

12. Does the presence of celebrities in the advertisements help you recognize and recall

product more promptly?

a. strongly agree b. Agree c. Indifferent d. Disagree e. strongly disagree

CELEBRITY ATTRIBUTES AND PURCHASE INTENTION

13. As a consumer, do you consider ―credibility of the celebrity as an attribute that can

influence your purchase decision?


14. As a consumer, do you consider the ―Likeability of the celebrity as an attribute that

can influence your purchase decision for a certain product or service?


15. As a consumer, do you think the ―Match between the celebrity and the product can an

important attribute in influence your purchase decision for a certain product or service?


CELEBRITY ENDORSEMENTS AND PURCHASE INTENTION

16. Do you feel that ―Negative Publicity about a celebrity endorser can influence your

purchase decision?


17. In overall, I‘m happy with purchasing products or services advertised by celebrities.


Project 4th Sem (3)

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