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DISSERTATION REPORT ON
STUDY ON CONSUMER PERCEPTION OF
CELEBRITY ENDORSEMENT AND ITS
IMPACT ON BRAND RECALL
IN FMCG SECTOR.
Report submitted for partial fulfilment of
The requirement of the course
Post Graduate Diploma Program in Business Management
(PGDM)
(SESSION: 2010-12)
SUBMITTED TO: SUBMITTED BY:
PROF. SARIKA TOMAR MANSHUL KATARIA
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DECLARATION
I, hereby declare that I have completed Dissertation on Consumer
Perception of Celebrity Endorsement and its impact on brand recall
in FMCG Sector As per the course requirement.
I further declare that the information presented in this project is true
and original to the best of my knowledge.
Date: ____________
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Place: ____________
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CERTIFICATE
This is to certify that the work incorporated in this project report entitledSTUDY ON CONSUMER PERCEPTION OF CELEBRITY
ENDORSEMENT AND ITS IMPACT ON BRAND RECALL IN
FMCG SECTOR Submitted by Mr. Manshul Kataria, Roll no 2010078
of PGDM 2010-12 is his original work and completed under the kind
supervision. All the material obtained from other sources as like as
secondary sources and this information is relevant in fulfilment of the
PGDM program.
SIGNATURE OF STUDENT SIGNATURE OF GUIDE
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(MANSHUL KATARIA) (SARIKA TOMAR)
Date: ______________
Place: ______________
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ACKNOWLEDGEMENT
I would like to thank my Faculty mentor PROF. SARIKA TOMAR for their
valuable guidance and support at all time.
I am thankful to all those people who provided me all the necessary
information directly or indirectly throughout this project report completed at
time
MANSHUL KATARIA
2010078
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NIILM-CMS
PGDM 2010-12
Table of Contents
Declaration 2
Certificate 3
Acknowledgement 4
Abstract 8
1. Introduction 11-21
1.1 Why Celebrity? 12
1.2 An insight into Indian FMCG Advertising. 13
1.3 Brand awareness 18
1.4 Successful celebrity endorsements for a brand
An Indian perspective 20
2. Literature Review 22-28
3. Research Methodology 29-31
3.1 Objectives 30
3.2 Hypothesis 30
3.3 Research Design 31
3.4 Sampling Plan 31
3.5 Questionnaire 31
3.6 Analytical Techniques 31
4. Results 32-43
5. Conclusion 44-47
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References 52-53
Appendix 1 & 2 54-60
List of Tables
Table No. Figure Page No
4.1 Aishwariya Rai for L'Oreal * Gender Crosstabulation 34
4.2 Saif Ali Khan for Lays * Gender Crosstabulation 34
4.3 MS Dhoni for Lays * Gender 35
4.4 Juhi Chawla for Kurkure * Gender Crosstabulation 35
4.5 What type of celebrity endorsement persuades you personally to
purchase products? Vs. Gender (Chi Square) 36
4.6 Do you believe that celebrity endorsement on advertisement
motivate you to purchase? * Gender Crosstabulation 36
4.7 Brand Recognition for Sports Celebrity vs Gender (Chi Square) 37
4.8 Brand Recognition for T.V. Actor vs Gender (Chi Square) 37
4.9 Gender * Attention seeker while watching TV for Sports
Celebrity (Chi Square) 38
4.10 Gender * Attention seeker while watching TV for Actor (Chi
Square) 38
4.11 Do you believe that celebrity endorsement on advertisement
motivate you to purchase? * Gender 38
4.12 Do you think that, celebrity give a true picture of products
through advertisement? * Gender Cross tabulation 38
4.13 Do you purchase celebrity endorsed brands to improve your
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social status? * Gender Cross tabulation 39
List of Charts
S.No. Figure Page No.
1.1 Top Categories in Celebrity Endorsement on TV during 2011 13
1.2 Share of Celebrity Endorsements on TV by Profession 14
1.3 Celebrities with maximum number of Advertisers endorsed on TV 14
1.4 Top brands in Celebrity Endorsements on TV 15
1.5 Volume growth of FMCG sector on TV 15
1.6 Share of FMCG sub sectors on TV 16
1.7 Fastest growing FMCG sub sectors on TV during 2011 16
1.8 Celebrity endorsement of FMCG brands on TV 17
1.9 Top new brands of FMCG sector on TV 17
4.1 What do you think is the reason for the companies to choose
celebrity endorsement for promoting their products? 33
4.2 Do you believe that celebrity endorsement on advertisement
motivate you to purchase? * Gender 39
4.3 Do you think that, celebrity give a true picture of products through
advertisement? * Gender Cross tabulation 40
4.4 Do you purchase celebrity endorsed brands to improve your social
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status? * Gender Crosstabulation 41
Abstract
Today, the use of celebrity endorsement has increased drastically. It has become an integral
part of almost every brands promotional campaign and a big marketing trend. Due to high
channel surfing, it is very difficult to keep the viewers attention for a long time and to
focus in a productive way.
While studying the rationale behind the increasing trend of celebrity endorsements across
the globe, researchers explore several dimensions of the celebrity endorsement technique.
The literature that was reviewed revealed that instant and better recall is one of the most
important benefits. Leading film and sports personalities are the preferred choice of the
Indian marketers for a better recall.
Need of research has been felt as there are conflicting views regarding the role of gender on
celebrity endorsement. There was no research found in the area of Delhi NCR in FMCG
sector.
This paper tries to explore various dimensions of celebrity endorsements. The purpose of
this study is to get an insight of the celebrity advertisements in FMCG sector because it is
contributing nearly 50% to T.V. advertisements in past few years.
This study emphasizes on the association between gender of respondent and his/her
preference of celebrity and to compare the sports celebrity with film stars. The research
design adopted in the study is Descriptive Research.
Data for the objective is collected through secondary and primary data sources. Secondary
data is through journals, websites. The primary data is collected through structured
questionnaires and the sample unit comprises of Consumers mostly of the age group 18-40,
both males and females.
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CONSUMER PERCEPTION OF CELEBRITY
ENDORSEMENT AND ITS IMPACT ON
BRAND RECALL IN FMCG SECTOR
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Chapter - 1
Introduction
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Introduction
Celebrity endorsements pull in hundreds of crores every year, and are widely preferred by
marketers to promote their products. Using celebrities for endorsing brands has become a
trend for building the brands as well as the company's image. Who are these celebrities?
And what does celebrity endorsement mean? A celebrity is a person who is well recognized
by the public, and has a reputation for his/her expertise in his/her chosen silos. Sports
persons and film stars fit the bill perfectly. Promotion of a company's products through
these celebrities is termed as celebrity endorsement. The company makes use of the
celebrity's characteristics and qualities to establish an analogy with the products specialties
with an aim to position them in the minds of the target consumers. Celebrity endorsement,
thus, is one of the powerful tools adopted by companies/marketers to consolidate their
brand(s) in the crowded marketplace. Consumers prefer to own a brand that has a good
reputation, and when someone like a famous film star or a sport star is associated with that
particular brand, it is obvious that the consumers will get attracted to it, because the
consumer wants to maintain some status, and feels that using a brand promoted by a star
can satisfy that longing.
1.1 Why Celebrity
There is a myth that celebrity endorsement is used to give a brand advantage over its
competitors. However, choosing a celebrity for this purpose requires considerable amount
of calculations. There should be something common between the brand and the celebrity
promoting it. Let us come to the main question as to why marketers use celebrities to
promote their brands. Is there a real need to associate a celebrity with the product? Yes
seems to be the resounding answer. This is because a company needs to create awareness
and interest in the consumers mind when it unveils a new brand or product. To be
successful, brands need to convince consumers that they carry a different image and value
from other competing products. In other words, brands have to show their true personality
to the potential consumer(s).
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An effective way to do this is through celebrity endorsements. As MG Parmeswaran,
executive director of FCB Ulka says, "As advertising professionals, we recommend
celebrity endorsements when the case is justified. There are many cases where you need to
use the celebrity to break out of a category clutter. At times, celebrity endorsement is used
to build credibility to the brand offer." People always wish to see their favorite stars and
marketers, and advertisers are quick to capitalize on such ideas. Endorsement of a
product/service by a celebrity gives out the message that it is as authentic and credible as
the celebrity is. The urge that people have of enjoying the same recognition and status like
their favorite stars is often the main reason for the increasing use of celebrities for
products/services endorsement.
1.2 An insight into India FMCG advertising
Figure 1.1
Top Categories in Celebrity Endorsement on TV during 2010
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Figure 1.2
S hare of Celebrity Endorsements on TV by Profession
During 2010,'Film Actress' led with 44 per cent share of 'Celebrity' endorsements on TV
followed by 'Film Actor' and 'Sports Person' with 41 per cent and 12 per cent share
respectively.
Figure 1.3 Celebrities with maximum number of Advertisers endorsed on TV
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'M S Dhoni' leads among the Celebrities in terms of endorsing number of advertisers on TV
during 2010. 'Shahrukh Khan' and 'Sachin Tendulkar' were at the 2nd and 3rd place
endorsing for 23 and 18 advertisers respectively during 2010.
Figure 1.4
Top brands in Celebrity Endorsements on TV
Figure 1.5
Volume growth of FMCG sector on TV
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Figure 1.6
Share of FMCG sub sectors on TV
Figure 1.7
Fastest growing FMCG sub sectors on TV during 2009
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Figure 1.8
Celebrity endorsement of FMCG brands on TV
Figure 1.9
Top new brands of FMCG sector on TV
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1.3 Brand Awareness
Brand recall is often referred to as a top-of-mind brand awareness or unaided recall (De
Pelsmacker et al., 2001). Top-of-mind brand awareness can be used as just the first brand
mentioned, which is similar to recall and referred to as possibly a poor mans market share
audit (Gruber, 1969) . One might also use a shortlist of top-of mind brands, giving theplace of the brand on the list a certain amount of salience. Brand recognition is also
referred to as aided recall or aided awareness (De Pelsmacker et al., 2001).
Consumer decision Making Process
Celebrity endorsements are impelled by virtue of the following motives:
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Instant Brand Awareness and Recall.
Celebrity values define, and refresh the brand image.
Celebrities add new dimensions to the brand image.
Instant credibility or aspiration PR coverage.
Lack of ideas.
Convincing clients.
The scope of a celebrity on the incumbent brand:
Simply stating, a brand is a differentiated product and helps in identifying your product and
making it stand out due to its name, design, style, symbol, color combination, or usually a
mix of all these.
Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have
to ferret the implicit nuances that act as sources of strong brand images or values:
Experience of use: This encapsulates familiarity and proven reliability.
User associations: Brands acquire images from the type of people who are seen
using them. Images of prestige or success are imbibed when brands are associated
with glamorous personalities.
Belief in efficiency: Ranking from consumer associations, newspaper editorials etc.
Brand appearance: Design of brand offers clues to quality and affects preferences.
Manufacturers name & reputation: A prominent brand name (Sony, Kelloggs, Bajaj,
Tata) transfers positive associations.
1.4 Successful celebrity endorsements for a brand-An Indian perspective
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The latter part of the '80s saw the burgeoning of a new trend in India brands started being
endorsed by celebrities. Hindi film and TV stars as well as sportspersons were roped in to
endorse prominent brands. Advertisements, featuring stars like Tabassum (Prestige
pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and
Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first ad to cash in on star
power in a strategic, long-term, mission statement kind of way was Lux soap. This brand
has, perhaps as a result of this, been among the top three in the country for much of its
lifetime.
In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating
the impediment that an unknown Korean brand faced in the Indian market. The objective
was to garner faster brand recognition, association and emotional unity with the target
group. Star power in India can be gauged by the successful endorsement done by Sharukh
for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, when S Kumars 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.
In the Indian context, it
would not be presumptuous
to state that celebrity
endorsements can
aggrandize the overall
brand. We have numerous
examples exemplifying this
claim. A standard example here is Coke, which, till recently, didn't use stars at all
internationally. In fact, India was a first for them. The result was a ubiquitously appealing
Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra
advertising is only due to the sensuous Aishwarya. The Parker pen brand, which by itself
commands equity, used Amitabh Bachchan to revitalize the brand in India. According to
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Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan, Parker's sales
have increased by about 30 per cent.
India is one country, which has always idolized the stars 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 like
sportspersons and footwear, Kapil-Sachin and Boost or film stars and beauty products.
Rationale of proposed investigation
FMCG sector contributed 40% for T.V. advertising during 2010 & grew at 50 % from 2009
to 2010. Today, the use of celebrity endorsement has increased drastically in FMCG.
FMCG companies, which generally spend an average 10 per cent of revenues on
promotions.
It has become an integral part of almost every brands promotional campaign and a big
marketing trend. Celebrities are seen endorsing almost every product meant for selling.
Due to high channel surfing, it is very difficult to keep the viewers attention for a long
time and to focus in a productive way. Celebrities can bring quick memorability, recall and
recognition, and direct client connection with the audience.
This will help to explore various dimensions of celebrity endorsements in FMCG
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Chapter 2
Review of Literature
Literature Review
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Endorsement is a technique where a well-known or respected individual such as a celebrity
or an expert in the product or service area speaks on behalf of the company or the brand.
The endorser in an advertisement is the person, celebrity, spokesman, announcer and so on
who endorses and/or demonstrates the product.
Celebrities can be any famous, popular public figure or respected personality in the society
from any field. Mostly celebrities are from the world of films, television or sports. Though
Indian marketers heavily rely on film stars and cricketers, in other countries endorsements
are done by many celebrities which include authors, chefs, musicians, athletes, directors,
anchor persons, models, comedians, business personalities, politicians, consumer
advocates, etc. This is evident from a list of Top 100 global celebrities3 which includes
Oprah Winfrey (talking head/talk show anchor), Tiger Woods (golf player), Madonna
(musician), Rolling Stones (musician), Brad Pitt (actor), etc.
In order to establish the necessity of doing research in the current area an extensive
literature was reviewed and the results are summarized as follows:
One of the earliest studies on television advertising by Bauer & Greyser (1968) asked
respondents to count the advertisements that struck them as being offensive, annoying,
enjoyable or informative. Only 15% of the advertisements evoked positive reaction. About
72% of the advertisements were either considered enjoyable or informative. About 23% of
advertisements were perceived as being annoying and 4% were offensive. The study
included some 524 commercials. Responses were subjected to a Factor Analysis which
revealed that advertisements were (1) entertaining (2) personal relevance (3) disliked and
(4) warmth.
Schlinger (1979) developed a rating instrument, popularly called the VRP (Viewer
Response Profile) that looked at ad responses and classified them as entertaining, relevant,
alienating, empathetic, familiar, confusing and brand reinforcing. All the above mentioned
response profiles were built in an exploratory fashion, using principal components analysis
as the data reduction technique.
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McCracken (1989) believes that some celebrity endorsers work better than others due to
the better match or congruency between celebrity and product. Many researchers
acknowledge match-up or fit between the product and the endorser as an important factor
in determining celebrity advertising effectiveness (Kahle and Homer, 1985; Misra and
Beatty, 1990; and Till and Busler, 1998). According to Atkin and Block (1983), celebrity
endorsers have been found to produce more positive responses towards advertising and
greater purchase intentions. Freiden (1984) in his study quotes that celebrities are perceived
to be more trustworthy, believable, persuasive and likeable. Hence, they are more
influential and effective than anyone else.
In a study by Biel and Bridgwaters (1990) it was found that for consumer products like
foods and beverages the commercials had high scores on the meaningful and relevant
likeable scale. For non-food products the most important attribute for a successful
commercial was meaningfulness. For consumer durables warmth was an important
criterion to get noticed. Add to this, viewer involvement and perceived relevance too was
important if the commercials were to create the persuasion. The type of product advertised
too created an impact with food and beverage products having high likeability scores.
Many organizations take advertising testing very seriously. Since advertising is an
expensive proposition, the manner in which it works and the results it produces become
critical. In a quest to identify measures to predict or study the effectiveness of television
advertising (commercials) researchers have been trying to build relevant and reliable
measurement instruments that capture audience response to television advertising.
A study by Johar and Sirgy (1991) found that for consumers who are highly involved
with a product, utilitarian information was found to be more effective, and for consumers
who were not involved with the product, value expressive advertisements were found to be
more persuasive.
Ohanian (1991) reported that there were no significant main effects of gender in her study
of the impact of gender on consumers perceptions of a celebritys attractiveness,
trustworthiness, or expertise, nor on the likelihood of purchasing a product that was
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endorsed by a celebrity. In that study, no effort was made to match the celebrities used, in
terms of the domains with which they were associated (for example, matching male sport
celebrity and female sport celebrity; matching male entertainment celebrity and female
entertainment celebrity).
As per Jagdish Agrawal & Wagner A. Kamakura (1995) a research on The Economic
worth of Celebrity Endorsers: An Event Study Analysis has typically focused on theories
explaining how celebrity endorsements influence consumers attitudes and intentions. The
authors assess the impact of celebrity endorsement contracts on the expected profitability
of a firm by using event study methodology. Announcements of 110 celebrity endorsement
contracts were analyzed. Findings of the study indicate that, on average, the impact of these
announcements on stock returns is positive and suggest that celebrity endorsement
contracts are generally viewed as a worthwhile investment in advertising.
Till and Shimp (1998) suggested that repeated pairings of the brand endorser with the
brand should facilitate the celebrity and the brand becoming part of each others
association set. It was concluded that celebrity endorsement is not an easy option but needs
careful consideration of different dimension of advertising and promotional campaign.
Goldsmith (2000) suggested that celebrity credibility could be defined as the extent to
which a celebrity is perceived as having expertise relevant to the communication topic and
can be trusted to give an objective opinion on the subject.
Boyd and Shank (2004) investigated the effects of gender matching between consumers
and sports celebrity endorsers in an effort to determine whether this would affect
consumers perceptions of the attractiveness, trustworthiness, and expertise of the celebrity.
They found no significant effect on attractiveness or expertise, but a significant interaction
on trustworthiness; women rated female endorsers more favorably than male endorsers, and
men were more favorable in their evaluations of male endorsers. However, Boyd and
Shank (2004) opined that there should be replication of their study before any kind of
generalizations can be made, given certain shortcomings of that study. For example, they
lament: While we attempted to find ads that were similar, it is likely that the ads
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themselves and the endorsers used varied enough to create effects. In the case of the
endorsers used, the female endorser was a Caucasian swimmer, Amy Van Dyken, while the
male celebrity was Hispanic-American boxer Oscar de la Hoya. The authors recommend
the minimization of the potential for alternative explanations to gender of celebrity as the
factor generating the observed effects.
Peetz, Parks, and Spencer (2004) reported on a study in which they showed participants
pictures of certain athletes (Lance Armstrong, Mia Hamm, Michael Jordan, and Jackie
Joyner-Kersee) and asked these participants to identify and describe the athletes. They then
asked the participants whether they considered the athletes experts on products related to
the athletes sports, and whether the athletes could influence their purchase intentions.
Their study yielded some gender-based results: odds of identifying male athletes were
greater than those for identifying female athletes (4 times greater); male athletes were
perceived as being more influential on purchase intentions than female athletes; and male
respondents were more favorable toward the less well-known male athlete.
A study conducted by Tandon Mala & Sudeep Mehrotra (2005) on Impact of celebrity
endorsement on overall brand was aimed at providing the marketers with a quantitative
method for selection of the right celebrities to optimize the outcome for their advertising
campaigns. They developed three matrices in their paper Celebrity Positioning Matrix,
which gives the popularity and image details of a personality in the market Product
Positioning Matrix, which is the direct consequence of the brands competitive strategy
Area Correlation Matrix, which is the overall measure of match of brand and celebrity.
Choi & Rifon (2007) The credibility components are interconnected with other traits of the
celebrity and the image dimension which reflects good qualities e.g. pleasant, wise,
educated etc. produce sincere and positive perception of the celebrity in consumer minds.
Farida Saleem (2008) while studying celebrity endorsement in their article Impact of
gender and age on single and multiple celebrities endorsements believe that there is no
significant difference between male and female toward single or multiple celebrities ads
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similarly age is also not significantly associated with attitude toward ad, attitude toward
brand and purchase intentions for both single and multiple celebrities ads.
JUNG-GYO LEE (2008) studied how consumer characteristics, namely an individual's
own levels of enduring involvement with a product category, moderate schema congruity
effects. Two experiments were conducted to test these issues using two types of match-up
factors: physical attractiveness and expertise of a celebrity endorser. The results show that
celebrity endorsements are evaluated more favorably in terms of purchase intention when
there is a moderate mismatch than when there is either a complete match or an extreme
mismatch.
According to Meenakshi Aggarwal & Priya Jha Dang (2009) showed that an expert
celebrity was effective m creating more favorable responses on attitude towards the ad for
an expertise related product but had no effect on attitude towards the brand and purchase
intention. The impact of the expert celebrity on ad attitude was mediated by the perceived
expertise of the endorser. Results of the study provide support for the product match up
hypothesis developed m the West.
According to B. Raja Shekhar & N. Udaya Bhaskar (2009) indicated that celebrity
endorsements generated higher purchase intentions and positive attitudes toward the
advertisement in urban area compared to semi urban.
Gap Areas
Need of research has been felt as there are conflicting views regarding the role of
gender on celebrity endorsement.
There was no research found in the area of Delhi NCR in FMCG sector.
Little work has been done in FMCG sector and the literature emphasizes on the
need of research in the area as well.
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Because celebrities and brands have numerous characteristics, it stands to reason
that there might exist matches on certain dimensions and mismatches on other ones.
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Chapter 3
Research Methodology
Research Methodology
Data for the objective is collected through secondary data source and primary data sources.
Secondary data is collected through journals, websites. The primary data is collected
through structured questionnaires and the sample unit comprises of Consumers of different
age groups both males and females.
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3.1 Objective
Major research objectives are given below:
To analyze the effectiveness of celebrity endorsement in context to gender.
To study the association between gender of respondent and his/her preference of
celebrity.
3.2 Major Hypothesis (s)
The aim of this investigation is to assess the impact of gender both gender of the
consumer and gender of the endorser- on consumers attitudes and perceptions of celebrity
athlete endorsements. To what extent does gender of a target audience member influence
his/her response to an ad that uses a celebrity? Is there any effect of gender of celebrity and
gender of target audience member on response to celebrity endorsements? This section
seeks to develop testable hypotheses to help answer these questions.
Based on the above objectives the following hypothesis has been proposed:
H0: Respondents gender and his/her preference of celebrity type are independent.
H0: Respondents gender and celebrity type, i.e., sports or film personalities are
independent.
3.3 Research Design
The research design adopted in the study is Descriptive Research. The research is
conducted using a questionnaire designed to understand consumers views on celebrity
endorsement, measuring their attitude toward ad, attitude toward brand and their intentions
to purchase, brand recall.
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3.4 Sample
In order to collect primary data, self-administered questionnaire was used (Appendix 1)
Primary data is collected from 120 respondents from Delhi NCR region. The sampling
technique used in the research process is convenience sampling. The links of the online
questionnaire was posted on social networks, was sent through mail to contacts and others.
3.5 Questionnaire
In questionnaire few generic questions about source of information i.e. from where did the
respondents get the information about new FMCG products. To know which gender/age
group gives more time to T.V. Further questions were asked to know what are the reasons
the respondents think that companies choose celebrity endorsement for promoting their
products.
Question was asked to rank few celebrities along with the brand they endorse to know
whether genders responses are inclined towards a particular gender.
3.6 Analytical Techniques
The analysis part of the research is done with the help of bar graphs, and cross tabulation,
Chi square-test. While Graphs and charts would give a better representation of the data
collected, tests and cross tabs would help in analyzing a data to come to a conclusion.
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Chapter 4
Analysis
Analysis
Graph no. 4.1
Q 3 What do you think is the reason for the companies to choose celebrity
endorsement for promoting their products?
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This graph
shows that
maximum
respondents
49% and 48
%replied Easy
recognition of
products and
Brand Recall was the main reason for companies to choose celebrities to endorse their
products.
H0: Respondents gender and his/her preference of celebrity type are independent.
(Gender of celebrity)
Table 4.1
Aishwariya Rai for L'Oreal * Gender of celebrity
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Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 4.244a 4 .374
Likelihood Ratio 4.560 4 .335
Linear-by-Linear
Association
.163 1 .686
N of Valid Cases 120
As it is clearly shown in the table that value is 0.374 which is greater than 0.05, which
means that there is no association between gender of respondent and his/her preference forgender of celebrity
Table 4.2
Saif Ali Khan for Lays * Gender of celebrity
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 1.925a
4 .750Likelihood Ratio 1.911 4 .752
Linear-by-Linear Association .006 1 .940
N of Valid Cases 120
The value here is 0.750 which is greater than 0.05, this means that there is no associationbetween gender of respondent and his/her preference for gender of celebrity.
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Table 4.3
MS Dhoni for Lays * Gender
Gender
TotalMale Female
MS Dhoni for Lays Very Good 16 9 25
Good 30 12 42
Average 17 17 34
Poor 10 5 15
very Poor 2 2 4
Total 75 45 120
In this table also around 20% of male and female said that MS Dhoni is very good as brand
endorser for Lays. This table shows that gender is independent in choosing type of
celebrity.
Table 4.4
Juhi Chawla for Kurkure * Gender Crosstabulation
Gender
TotalMale Female
Juhi Chawla for Kurkure Very Good 26 20 46
Good 24 15 39
Average 13 3 16
Poor 8 5 13
very Poor 4 2 6
Total 75 45 120
33% male have responded that Juhi Chawla is very good for Kurkure and 40% female said
that she is very good.
Table 4.5
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What type of celebrity endorsement persuades you personally to purchase products?
Vs. Gender
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 3.074a 3 .380
Likelihood Ratio 3.051 3 .384
Linear-by-Linear Association .749 1 .387
N of Valid Cases 120
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is
7.88.
As the value is more than 0.05 so it can be said that there is no association between
purchase decisions being influenced by celebrity and the gender of the respondents..
Table 4.6
Do you believe that celebrity endorsement on advertisement motivate
you to purchase? * Gender Crosstabulation
Gender
TotalMale Female
Do you believe that
celebrity endorsement on
advertisement motivate
you to purchase?
Stongly Agree 9 4 13
Agree 28 16 44
Neutral 19 12 31
Disagree 13 9 22
Strongly Disagree 6 4 10
Total 75 45 120
49% males and 44% females believe that they are motivated to purchase FMCG products
which is not much associated with gender of the respondent.
H0: Respondents gender and celebrity type, i.e., sports or film personalities are
independent.
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Table 4.7
Brand Recognition for Sports Celebrity vs Gender
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 7.930a 4 .094
Likelihood Ratio 8.877 4 .064
Linear-by-Linear Association .123 1 .726
N of Valid Cases 120
As the value of Pearson Chi-Square is 0.094 which is greater than 0.05This proves that
their does not exist relationship between Brand recognition for Sports celebrity and gender
of the respondents.
Table 4.8
Brand Recognition for T.V. Actor vs Gender
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 1.373a 4 .849
Likelihood Ratio 1.407 4 .843
Linear-by-Linear Association .931 1 .334
N of Valid Cases 120
a. 4 cells (40.0%) have expected count less than 5. The minimum expected count is 2.25.
As Pearson Chi-squares value is 0.849 which is greater than 0.05 and this means that theirexist no relationship between Brand recognition for T.V. actor and gender of the
respondents.
Table 4.9
Gender * Attention seeker while watching TV for Sports Celebrity
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Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.784a 4 .595
Likelihood Ratio 2.801 4 .592
Linear-by-Linear Association 1.900 1 .168
N of Valid Cases 120
a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is 1.88.
Their exist no relationship between Gender and their responses for Sports celebrity as
attention seeker while watching TV as the value here is 0.595
Table 4.10
Gender * Attention seeker while watching TV for Actor
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 7.506a 4 .111
Likelihood Ratio 7.687 4 .104
Linear-by-Linear Association 5.024 1 .025
N of Valid Cases 120
a. 3 cells (30.0%) have expected count less than 5. The minimum expected count is 2.63.
Their exist no relationship between Gender and their responses for Actors as attention
seeker while watching TV as the value here is 0.111
Objective Wise Analysis
To analyze the effectiveness of celebrity endorsement in context to gender.
Table 4.11
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Do you believe that celebrity endorsement on advertisement motivate you to
purchase? * Gender
Gender
TotalMale Female
Do you believe that celebrity
endorsement on advertisement
motivate you to purchase?
Stongly Agree 9 4 13
Agree 28 16 44
Neutral 19 12 31
Disagree 13 9 22
Strongly Disagree 6 4 10
Total 75 45 120
Chart 4.2
According to this table it can be interpreted that 49% males and 44%females believe that
Celebrity endorsement motivates them to purchase the products endorsed.
Table 4.12
Do you think that, celebrity give a true picture of products through advertisement? *
Gender Crosstabulation
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Gender
TotalMale Female
Do you think that, celebrity give
a true picture of products through
advertisement?
Stongly Agree 7 5 12
Agree 10 10 20
Neutral 23 7 30
Disagree 23 15 38
Strongly Disagree 12 8 20
Total 75 45 120
Chart 4.3
22% males and 33% females believe that the celebrity gives them the true picture of the
Products endorsed, which means that advertisers have to take care that they choose the
celebrity which fits the products attributes and also they provide necessary information
about the products.
Table 4.13
Do you purchase celebrity endorsed brands to improve your social status? * Gender
Crosstabulation
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Gender
TotalMale Female
Do you purchase celebrity
endorsed brands to improve your
social status?
Stongly Agree 9 6 15
Agree 18 11 29
Neutral 18 15 33
Disagree 24 7 31
Strongly Disagree 6 6 12
Total 75 45 120
Chart 4.4
37%females and 36% males responded that they purchase celebrity endorsed brands to
Improve their social status.
To study the association between gender of respondent and his/her preference of
celebrity. (Gender)
Aishwariya Rai for L'Oreal * Gender
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Crosstab
Gender
TotalMale Female
Aishwariya Rai for L'Oreal Very Good 25 18 43
Good 40 17 57
Average 9 8 17
Poor 0 1 1
very Poor 1 1 2
Total 75 45 120
Juhi Chawla for Kurkure * Gender
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Crosstab
Gender
TotalMale Female
Juhi Chawla for Kurkure Very Good 26 20 46
Good 24 15 39Average 13 3 16
Poor 8 5 13
very Poor 4 2 6
Total 75 45 120
Saif Ali Khan vs M.S. Dhoni
Report
GenderSaif Ali Khan
for LaysMS Dhoni for
Lays
Male Mean 2.01 2.36
N 75 75
Std. Deviation .908 1.048
Female Mean 2.00 2.53
N 45 45
Std. Deviation 1.000 1.079
Total Mean 2.01 2.43
N 120 120
Std. Deviation .939 1.058
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Chapter 5
Results and Discussions
Demographic Data
Amongst the total 120 respondents, 62.5% are male and 37.5% are female
respondents.
Average age of respondents is 18-25 years. (80%)
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57% respondents are graduates and 22% are others.
Maximum respondents (49.2%) watch TV every day for 1-3 h, followed by 45%
respondents who watch TV for less than 1 h and only 6% respondents watch TV
for more than 3 h.
67.5 % of respondent are Student and 32.5% of respondent are Service/Business.
Listed below are the media types through which the respondents come to know about
FMCG products
o Print Media 36%
o Electronic Media 66%
o Word of Mouth 31%
o Others (Radio, Bill Board, Banner, Hoardings) 23%
Listed below are the reasons that the respondents thought is the reason for the companies to
choose celebrity endorsement for promoting their products.
o Easy recognition of products 48%.
o Brand Recall 39%.
o Cannot generate new ideas 13%.
o To be able to increase sales and profit 24%.
o To compete strongly 12%.
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When Brand recognition, Brand recall and Attention seeker was compared between Sports
and T.V. actor it was found that:
o Brand recognition for brands endorsed by T.V. actors are more than sports
celebrity.
o Brand Recall for T.V. actor and sports celebrity are more or less equal.
o Attention seeker while watching T.V. for both actors and sports celebrity
are more or less same.
Objective Wise Results
To study the association between gender of respondent and his/her preference of
celebrity. (Gender)
Two female celebrities were compared endorsing different brands, and it was found
that the results do not vary much. In both the cases 33% male and around 40%
female said that the female celebrity that endorsed the product is very good.
According to analysis 49% males and 44% females believe that they are motivated
to purchase FMCG products which are not much associated with gender of the
respondent.
To analyze the effectiveness of celebrity endorsement in context to gender.
22.6% males and 33% females agree that celebrity give a true picture of the
products/brands they endorse.
36% male and 37% female agree that they purchase brands endorsed by celebrities
to increase their social status.
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49% male and 44%female agree that in some point of time they are motivated to
buy products endorsed by celebrities.
H0: Respondents gender and celebrity type, i.e., sports or film personalities are
independent.
Null hypothesis is accepted that their exist no relationship between gender and celebrity
type, i.e. sports or film personalities are independent. (Table 4.7 4.10)
H0: Respondents gender and his/her preference of celebrity type are independent.
(Gender of celebrity)
Null Hypothesis is accepted that their exist no relationship between gender of respondent
and the preference of celebrity type. (Table 4.1 4.6)
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Chapter - 6
Conclusion
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Conclusion
Today TV is overcrowded by hundreds of private channels. Viewers thus have ample
options.
In India, a large portion of population is passionate about films and cricket.Cricket seems
the only sports activity in the country looking at the patronage it gets from the public.
Obviously there are huge numbers of fan followers for both cricketers and film stars.
However, when it comes to the comparison of film and sports personalities, field
performance seems more critical for sports personalities (cricketers) as it is immediately
reflected in their endorsement contracts. Research findings also reveal that film
personalities at least in India, are preferred over the sports personalities.
Through research it has been revealed that Saif Ali Khan has been ranked above MS
Dhoni, this supports the literature that celebrities are still preferred over sports person.
Electronic media is being considered as the most common source through which the
respondents got their information about new products in FMCG sector.
Film stars have the highest likability with 33.3% of responses followed by famous
personality and then sports person.
Majority of the respondents responded that they are motivated by celebrities to purchase
products and there is a positive impact of celebrity endorsement, but still 53 % are in the
neutral and disagreeing stage.
Their exist no relationship between gender of respondent and the celebrities gender. Also
from this research it was revealed that the gender of respondent and choice of celebrity
type are independent.
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Limitations and Future Scope
The primary limitations are related to the generalization of the research results. First
generalization issue is related to area of research i.e. Delhi NCR similar studies can be
conducted in other cities, towns of India to find out if there is any change in the perception
of the customers. Second issue is related to sample, as student sample has limited external
validity which limits the generalization of the results, since these students are graduate
students with greater levels of awareness and analytical thinking, it is possible that these
students are less influenced by celebrity endorsement as. Third generalization issue is
related to the stimulus, ads which were used as a stimulus were both male celebrity ads
featuring Saif Ali Khan and M.S. Dhoni to compare T.V. actors with sports celebrity, no
female sports celebrity was used to compare with T.V. actress.
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Recommendations
Because celebrities and brands have numerous characteristics, it stands to reason that there
might exist matches on certain dimensions and mismatches on other ones. As a
consequence, in selecting a celebrity endorser, advertisers should take into account not only
the attributes that are to be established as a primary link, but also assess the broader
meanings associated with an endorser.
Electronic media was preferred the most but print media is gaining popularity very
fast, so marketers must also concentrate a bit more on print media.
Public still cannot recall the brands to the extent it must be because of media clutter, which
must be taken care while designing advertisements, innovative ways of advertisement must
be taken care.
Both T.V. actors and sports celebrity have a high score on attention seeker while watching
T.V. which means that somewhere in the mind of consumers sports celebrities are being
able to make space as a brand endorser, which must be capitalized, and as was shown in
literature that in India cricketers and only a few other sports players are endorsing brands
which can be increased in coming periods because level of sports activity going up in India.
22% males and 33% females believe that the celebrity gives them the true picture of the
products endorsed, which means that advertisers have to take care that they choose the
celebrity which fits the products attributes and also they provide necessary information
about the products.
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Majority of the respondents responded that they are motivated by celebrities to purchase
products and there is a positive impact of celebrity endorsement, but still 53 % are in
neutral and disagreeing stage, which is a huge opportunity for marketers.
References
Atkin C and Block M (1983), Effectiveness of Celebrity Endorsers, Journal of
Advertising Research, Vol. 23, No. 1, pp. 57-61.
B. Raja Shekhar & N. Udaya Bhaskar , A Comparative Study Of Celebrity Impact On
Consumer Behavior With Reference To Prepaid Mobile Service Providers In Select
Urban And Semi Urban Areas, INTERNATIONAL JOURNAL OF BUSINESS
RESEARCH, Volume 9, Number 1, 2009.
Bauer, Raymond A. and Greyer, Stephen A. (1968) Advertising in America: The Consumer
View: Boston, Massachusetts, Harvard University Press.
Biel, A.L & C. Bridgwater (1990), Attributes of Likeable Television Commercials,
Journal of Advertising Research, 30, 3, pp. 38 44.
Boyd, T.C. and M. D. Shank. 2004. Athletes as product endorsers: The effect of gender and
product relatedness. Sport Marketing Quarterly 13(2): 82-93.
Freiden J (1984), Advertising Spokesperson Effects: An Examination of Endorser Type
and Gender on Two Audiences, Journal of Advertising Research Vol. 24, No. 5,
pp. 33-41.Goldsmith R E, Lafferty B A and Newell S J, The impact of Corporate Credibility and
Celebrity credibility on Consumer reaction to Advertisements and Brands, Journal
of Advertising, (2000), Vol. 29(3), 43-54.
Jagdish Agrawal & Wagner A. Kamakura, The Economic Worth of Celebrity Endorsers:
An Event Study Analysis, Journal of Marketing, July 1995 Vol. 59, 56-62
Johan, J. S. and J. Sirgy (1991), Value- Expressive Versus Utilitarian Advertising
Appeals: When and Why to Use which Appeal, Journal of Advertising,20,3, pp.
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23 33.
Kahle, L., & Homer, P., M. Physical attractiveness of the celebrity endorser: A social
adaptation perspective. Journal of Consumer Research, 1985, Vol.11, 954-962.
Mala Tandon & Sudeep Mehrotra Impact of Celebrity Endorsements on Overall Brand
http://www.coolavenues.com/know/mktg/sudeep1.php (Accessed on 15.1.2009)
McCracken G (1989), Who is the Celebrity Endorser? Cultural Foundations of the
Endorsement Process, Journal of Consumer Research, Vol. 16, No. 3, pp. 310-21.
Meenakshi Aggarwal & Priya Jha Dang, Examining Celebrity Expertise and Advertising
Effectiveness in India, South Asian Journal of Management.
Ohanian, R. 1991. The impact of celebrity spokespersons perceived image on consumers
intention to purchase. Journal of Advertising Research 31(1): 46-54.
Peetz, T. B., J. B. Parks, and N. E. Spencer. 2004. Sport heroes as sport product endorsers:The role of gender in the transfer of meaning process for selected undergraduate
students. Sport Marketing Quarterly 13(3):141-150.
Till B D and Shimp T A, Endorsers in Advertising: The Case of Negative Celebrity
Information, Journal of Advertising, 1998 Vol. 27(1), 67-81.
Schlinger, Mary Jane (1979), A Profile of Responses to Commercials Journal of
Advertising Research, Vol 19, No.2.
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Appendix 1
Questionnaire
A survey for analyzing effectiveness and factors affecting preference of male, female &
Sports celebrity in FMCG sector.
1. Through which media do you come to know about new FMCG products?
a) Print Media.
b) Electronic Media.
c) Word of Mouth.
d) Others (Radio, Bill Board, Banner, Hoardings)
2. Generally how many hours do you watch TV every day?
a) Less than 1 hour
b) 1-3 hours
c) More than 3 hours
3. What do you think is the reason for the companies to choose celebrity endorsement
for promoting their products? (Multiple choices)
a) Easy recognition of products
b) Brand Recall
c) Cannot generate new ideas
d) To be able to increase sales and profit
e) To compete strongly
4. Please select the most suitable point according to you:
Strongly
AgreeAgree Neutral Disagree
Strongly
Disagree
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Do you purchase a brand because
your favorite celebrity is
endorsing it?
Do you think that, celebrity give a
true picture of products through
advertisement?Companies are investing large
amount of money for using
celebrities; do you think its
helping them to increase their
total revenue?
Do you believe that celebrity
endorsement on advertisement
motivate you to purchase?
Do you purchase celebrity
endorsed brands to improve your
social status?Male endorser is more effective
as compared to female endorser.
5. What type of celebrity endorsement persuades you personally to purchase
products?
a) Film star.
b) Famous personalities.
c) Sports Person.
d) Common person.
6. Among the following sub-categories in FMCG which type of celebrity influences
you more?
Sports Celebrity T.V. Actors Movie Stars
Energy Drinks
Soft Drinks
BiscuitsSoap
Shampoo
Snacks
7. Do you believe that the celebrities also use the products which they endorse?
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a) Yes
b) No
c) Not sure
8. Please rate the following celebrities as a brand endorser:-
Celebrity Brand/Product Very
Good
Good Average Poor Very
Poor
1 Aishwariya Rai LOreal
2 Amir Khan Coca Cola
3 Saif Ali Khan Lays
4 MS Dhoni Lays
5 Juhi Chawla Kurkure
9. Please rate the following factors (1 being most favorable and 5 being least
favorable)
Sports Person Actor
Brand recognition
Brand Recall
Attention seeker while watching TV
Name: (Optional) ________________________
Gender:
MaleFemale
Age:
a) 0-18
b) 18-25
c) 25-40
d) Above 40
Education:
a) Intermediate.
b) Undergraduate
c) Graduate
d) Any Other
Occupation
a) Student
b) Business/service
c) Housewife
d) Other
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Appendix 2
Dissertation
Title of the Research
Consumer Perception of Celebrity Endorsement and its impact on brand recall in FMCG
Sector.
Rationale of proposed investigation
FMCG sector contributed 40% for T.V. advertising during 2010 & grew at 50 % from 2009
to 2010. Today, the use of celebrity endorsement has increased drastically in FMCG.
FMCG companies, which generally spend an average 10 per cent of revenues on
promotions.
It has become an integral part of almost every brands promotional campaign and a big
marketing trend. Celebrities are seen endorsing almost every product meant for selling.
Due to high channel surfing, it is very difficult to keep the viewers attention for a long
time and to focus in a productive way. Celebrities can bring quick memorability, recall and
recognition, and direct client connection with the audience.
This will help to explore various dimensions of celebrity endorsements in FMCG
Review of Literature
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In order to establish the necessity of doing research in the current area an extensive
literature was reviewed and the results are summarized as follows:
Kahle & Homer(1985) Physical attractiveness of the endorser may be central in context
with change in attitude of the customer.
McCracken (1989) believes that some celebrity endorsers work better than others due to
the better match or congruency between celebrity and product. Many researchers
acknowledge match-up or fit between the product and the endorser as an important factor
in determining celebrity advertising effectiveness (Kahle and Homer, 1985; Misra and
Beatty, 1990; and Till and Busler, 1998). According to Atkin and Block (1983), celebrity
endorsers have been found to produce more positive responses towards advertising and
greater purchase intentions. Freiden (1984) in his study quotes that celebrities are perceived
to be more trustworthy, believable, persuasive and likeable. Hence, they are more
influential and effective than anyone else.
As per Jagdish Agrawal & Wagner A. Kamakura (1995) a research on The Economic
Worth of Celebrity Endorsers: An Event Study Analysis, has typically focused on theories
explaining how celebrity endorsements influence consumers attitudes and intentions. The
authors assess the impact of celebrity endorsement contracts on the expected profitability
of a firm by using event study methodology. Announcements of 110 celebrity endorsement
contracts were analyzed. Findings of the study indicate that, on average, the impact of these
announcements on stock returns is positive and suggest that celebrity endorsement
contracts are generally viewed as a worthwhile investment in advertising.
Till and Shimp (1998) suggested that repeated pairings of the brand endorser with the
brand should facilitate the celebrity and the brand becoming part of each others
association set. It was concluded that celebrity endorsement is not an easy option but needs
careful consideration of different dimension of advertising and promotional campaign.
Goldsmith (2000) suggested that celebrity credibility could be defined as the extent to
which a celebrity is perceived as having expertise relevant to the communication topic and
can be trusted to give an objective opinion on the subject.
A study conducted by Tandon Mala & Sudeep Mehrotra (2005) on Impact of celebrity
endorsement on overall brand was aimed at providing the marketers with a quantitative
method for selection of the right celebrities to optimize the outcome for their advertising
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campaigns. They developed three matrices in their paper Celebrity Positioning Matrix,
which gives the popularity and image details of a personality in the market Product
Positioning Matrix, which is the direct consequence of the brands competitive strategy
Area Correlation Matrix, which is the overall measure of match of brand and celebrity.
Choi & Rifon (2007) The credibility components are interconnected with other traits of the
celebrity and the image dimension which reflects good qualities e.g. pleasant, wise,
educated etc. produce sincere and positive perception of the celebrity in consumer minds.
Farida Saleem (2008) while studying celebrity endorsement in their article IMPACT OF
GENDER AND AGE ON SINGLE AND MULTIPLE CELEBRITIES ENDORSEMENTS believe that
there is no significant difference between male and female toward single or multiple
celebrities ads similarly age is also not significantly associated with attitude toward ad,
attitude toward brand and purchase intentions for both single and multiple celebrities ads.
According to JUNG-GYO LEE (2008) studied how consumer characteristics, namely an
individual's own levels of enduring involvement with a product category, moderate schema
congruity effects. Two experiments were conducted to test these issues using two types of
match-up factors: physical attractiveness and expertise of a celebrity endorser. The results
show that celebrity endorsements are evaluated more favorably in terms of purchase
intention when there is a moderate mismatch than when there is either a complete match or
an extreme mismatch.
According to Meenakshi Aggarwal & Priya Jha Dang (2009) showed that an expert
celebrity was effective m creating more favorable responses on attitude towards the ad for
an expertise related product but had no effect on attitude towards the brand and purchase
intention. The impact of the expert celebrity on ad attitude was mediated by the perceived
expertise of the endorser. Results of the study provide support for the product match up
hypothesis developed m the West.
According to B. Raja Shekhar & N. Udaya Bhaskar (2009) indicated that celebrity
endorsements generated higher purchase intentions and positive attitudes toward the
advertisement in urban area compared to semi urban.
Gap Areas
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Need of research has been felt as there are conflicting views regarding the role of
gender on celebrity endorsement.
There was no research found in the area of Delhi NCR in FMCG sector.
Little work has been done in FMCG sector and the literature emphasizes on the
need of research in the area as well.
Because celebrities and brands have numerous characteristics, it stands to reason
that there might exist matches on certain dimensions and mismatches on other ones.
Objective(s)
Major research objectives are given below:
To analyze the effectiveness of celebrity endorsement in context to gender.
To study the association between gender of respondent and his/her preference of
celebrity.
Major Hypothesis (s)
Based on the above objectives the following hypothesis has been proposed:
H0: Respondents gender and his/her preference of celebrity type are independent.
H0: Respondents gender and celebrity type, i.e., sports or film personalities are
independent.
Materials and Methods
1. The research design adopted in the study would be Descriptive Research.
2. Data for the objective would be collected through secondary data source and
primary data sources. Secondary data would be through journals, websites. The
primary data would be collected through structured questionnaires and the sample
unit would comprise of Consumers of the age group 18-40, both males and females.
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3. The data analysis would be done using SPSS 17.