Amir.final_dissertation

“CELEBRITY ENDORSEMENT AFFECTING CONSUMER’S ATTITUDE TOWARD THE

ADVERTISEMENT AND PURCHASE INTENTION”

DISSERTATION

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

POST GRADUATE DIPLOMA IN

MARKETING MANAGEMENT

SUBMITTED BY

AMIR MASOOD

(09-DMM-15)

UNDER THE SUPERVISION OF

DR.BILAL MUSTAFA KHAN

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT STUDIES & RESEARCH

ALIGARH MUSLIM UNIVERSITY

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CONTENTS

Certificate

Acknowledgement

Preface

CHAPTER ONE: INTRODUCTION

1.1 Consumer Behavior

1.2 Buying Behavior

1.3 Decision Process

1.4 Advertising

1.5 Celebrity Endorsement

1.6 Successful Endorsements/ Endorsers

1.7 Forms of Celebrity Endorsements

1.8 Perspectives to Endorsement

1.9 Risks Involved in Celebrity Endorsement

1.10 Methods to Reduce Risk in Celebrity Endorsement

CHAPTER TWO: LITERATURE REVIEW

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Need of the study

3.2 Objectives of the study

3.3 Research Methodology

3.4 Managerial Implications

3.5 Limitations

CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION

CHAPTER FIVE: CONCLUSION

Bibliography

Annexure

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Chapter One

INTRODUCTION

A challenge faced by companies is how to influence the purchasing behavior of

consumers through celebrity endorsement. For more than fifty years the

advertising industry has been using celebrity endorsement, Marilyn

Monroe and Marlène Dietrich are famous examples (Iddiols, 2002).

Research has shown that the use of celebrities in advertisements

can have a positive influence on the credibility, message recall,

memory and likeability of the advertisements and finally on

purchase intentions (Menon, 2001; Pornpitakpan, 2003; Pringle and

Binet, 2005; Roy, 2006). Today – no doubt inspired by the declining

effectiveness of the different marketing communications (Blondé

and Roozen, 2006) - the advertising industry is willing to pay the

increasing rewards the celebrities are asking (the costs of the spot

with Nicole Kidman for Channel V amount to 7.5 million Euro; David

Beckham for Adidas $160 million; Gilette $68 million and Pepsi

$25.5 million; Tiger Woods for Nike’s golf advertisements $18

million).

The crescendo of celebrities endorsing brands has been steadily increasing over the

past years. Marketers overtly acknowledge the power of celebrities in influencing

consumer-purchasing decisions. It is a ubiquitously accepted fact that celebrity

endorsement can bestow special attributes upon a product that it may have lacked

otherwise. But everything is not hunky-dory; celebrities are after all mere mortals

made of flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he

or she can also exacerbate the image of a brand.

“Any brand can get a celebrity. That is easy. But getting a celebrity matching with the

right brand, to the right degree, at the right time, for the right purpose and in the right

way... that is not easy.”

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“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.”

1.1 CONSUMER BEHAVIOR

It can be defined as the process and activities people engage in when searching for,

selecting, purchasing, using, evaluating and disposing of product and services so as to

satisfy their needs and desires. Company's success in influencing purchase behavior

depends in large part on how well they understand consumer behavior. Companies

need to know the specific need customers are attempting to satisfy and how they

translate into purchase criteria. They need to understand how customers make

purchase decision.

1.2 BUYING BEHAVIOR

Consumer decision-making varies with the type of buying decision they make.

Companies need to understand how customers make purchase decisions. The decision

to buy toothpaste, a tennis racquet, a personal computer and a new car are al]-

different. Complex and big-ticket item products are likely to take more time as

compared to impulse product. Consumer buying behavior depends upon the degree of

differences along the brands.

1. Complex Buying Behavior:

Consumers engage in complex buying behavior when they are highly involved in

purchase and are aware of significant differences among brands. This is usually the

case when the product is expensive, bought in frequently, risky and highly self-

expressive. Typically the consumer does not know much about the product category

and has much to learn. For example person buying a personal computer knows what

attributes he is looking for. Consumer buying behavior involves a three-step process.

First, the buyer develops beliefs about the product. Second, he/she develops attitudes

about the product. Third, he/she makes a thoughtful purchase choice.

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2. Dissonance: Reducing Buyer Behavior:

Sometimes the consumer is highly involved in a purchase but sees little difference in

the brands. The high involvement is based on the facet that the purchase is expensive,

infrequent and risky. In this case the buyer will shop around to learn what is available

but fail quickly, perhaps responding primarily to good price or to purchase

convenience. For example carpet buying is a high-involvement decision because

carpeting is expensive and self-expressive yet the buyer may consider most carpet in a

given price range to be the same. After the purchase, the consumer might experience

dissonance that stems from noticing certain dissatisfying features of the carpet or

hearing favorable thing about other carpets. The consumer will be alert to information

that justifies his/her decision.

3. Habitual Buying Behavior:

Many products are bought under conditions of low consumer involvement and in the

absence of significant brand differences. Consider salt, consumer has little

involvement in this product category. They go to the store and reach for the brand. If

they keep reaching for the same brand it is out of habit not out of strong brand loyalty.

There is good evidence that consumers have low involvement with most low cost,

frequently purchased products. With low involvement products, consumer behavior

does not pass through the normal belief, attitude and behavior sequence. Consumers

do not search extensively about the brands.

4. Variety -Seeking Buying Behavior:

Some buying situations are characterized by low consumer involvement but

significant brand differences. The consumers often do a lot of brand switching. Think

about cookies, consumers have some beliefs about cookies; they choose a brand of

cookies without much evaluation, while the evaluation about the product is made

during consumption. Next time the consumer may reach for another brand out of

boredom or for a different taste. Brand switching occurs for the sake of variety rather

than out of dissatisfaction.

1.3 DECISION PROCESS

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Smart companies always research the buying decision involved in the product

category. They ask the consumers their consumers that how they make their brand

choices and how satisfied they are at purchase. The consumer passes through five

stages as following:

• Problem Recognition.

• Information Search.

• Evaluation Alternative.

• Purchase Decision.

• Post Purchase Behavior.

Clearly the buying process starts long before the actual purchase and has

consequences afterwards. The model implies that consumer passes sequentially

through five stages in buying a product. But this is not the case, especially with low

involvement purchase. Consumer may skip or reverse some stages. Thus women

buying her regular brand of toothpaste go directly from the need for toothpaste to the

purchase decision, skipping information search and evaluation. But a consumer

interested in buying laptop will pass through all the stages stated above.

1.4 ADVERTISING

Half the money I spend on advertising is wasted; the trouble is, I don't know which

half" - John Wanamaker. father of modern advertising.

Advertising is an important social phenomenon which both stimulates consumption

and economic activity and models lifestyles and a- certain value orientation.

Consumers are confronted with substantial daily ‘doses of advertising’ in multimedia.

Every one seems to hold an opinion about various aspects of advertising ranging from

amusement and admiration to cynism and condemnation. On one hand advertising is

appreciated enough to be the subject of TV talk shows and comedy skits, to have reels

of award winning commercial play in theatres to have its art and slogans to worn

proudly on clothing and to hear advertising phrases become the idiom of everyday

speech. On the other hand, consumers fear covert manipulation and subliminal

techniques and often complain about advertising clutter, banality, sexism, predation of

children and continuing proliferation into newer media and venues.

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Advertising is defined according to Kotler as:"any paid form of non-personal

presentation and promotion of ideas, goods or services by an identified sponsor". The

paid aspect of the definition means that space -or tome for an advertising message

must be bought, while the non-personal aspect means that advertising involves mass

media such as TV, radio, magazines, newspapers and billboards that can transmit a

message to a large number of individuals often at the same time. Advertising is the

best-known form of promotion because it can be a very cost-effective method of

communicating with large audiences and it can be used to create brand images,

enabling the seller to repeat a message many times. Also it is quite pervasive (Belch

and Belch, 2001).

Advertising plays a critical role in capitalist economies in creating demand for

industrial output. Thus, advertising clients are predominantly profit-seeking

corporations. In 1997, in the U.S. alone, over $175 billion USD was spent on

advertising. Non-profits are not typical advertising clients, and rely upon free

channels, such as public service announcements. While advertising can be seen as

necessary for economic growth, it is not without social costs. Unsolicited Commercial

Email and other forms of spam have become so prevalent as to have become a major

nuisance of users of these services, as well as being a financial burden on internet

service providers. Advertising is increasingly invading public spaces, such as schools,

which some critics argue is a form of child exploitation. One scholar has argued that

advertising is a toxic by-product of industrial society which may bring about the end

of life on earth.

Main features of advertising are:

• It can be very cost -effective method for communicating with large audience.

• Advertising can be used to create brand image and symbolic appeals for a

company or a brand, a very important capability for companies selling

products and services that are difficult to differentiate on functional attributes.

• Advertising is ability to strike a responsive chord with the consumer when

differentiation across other elements of marketing mix is difficult to achieve.

The nature and purpose of advertising differ from one industry to another

and/or across situations. The targets of organisations advertising efforts often

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vary, as do advertising's role and function in the marketing program. One

advertiser may seek to generate immediate response or action from the

customer; another may want to develop awareness or a positive image for its

product or services over a period of time.

1.4.1 Advertising Objectives

Advertising objectives can be classified according to whether their aim is to inform,

persuade or remind. These advertising objectives are of three types:

l. Informative Advertising:

This type of advertising is basically in the pioneering stages of the product category.

Its objective is to build primary demand. For example, the yoghurt industry initially

had to confirm consumers of yoghurt's nutritional benefits. E.g. telling the market

about a new product or suggesting new uses for a product.

2. Persuasive Advertising:

This type of advertising is used in the competitive stage. Here the objective is to build

selective demand of a particular brand. For example, Chivas Regal attempts to

persuade its customers that it provides better taste and status than other brands of

scotch whiskey. E.g. telling the market about a new product or suggesting new uses

for a product.

3. Reminder Advertising:

This type of advertising is important for mature products i.e. the products that have an

established market already. The objective of advertising here is to remind people to

purchase a particular brand. For example, expensive four colour ads of Coca Cola in

magazines are intended to remind people to purchase Coca Cola,

Another example: reminding customers of the product should it be needed in the near

future. Volkswagen often remind consumers of the reliability of their product. Now

the 5M's of advertising are:

• Mission- What is the advertising objective?

• Money-How much amount could be spent?

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• Message-What message would it convey?

• Media-What media should be used?

• Measurement-How are the results going to be evaluated?

1.4.2 Advertising and Consumer Behavior

Through researches various models have come up that describe the various facts of

consumer behavior. These models suggest how the consumers behave in response to a

particular marketing communication and why do they behave so. The market

researchers tried to understand the response process and the manner in which these

communications work (especially advertising). There are three critical intermediate

effects between advertising and the desired effect of advertising (purchases) these

include cognition, the thinking dimensions of a person's response: affect the feeling

dimension; and experience which is a feedback dimension based on the outcomes of

product purchasing and usage. They conclude that individual responses to advertising

are mediated by factors such as motivation and ability to process information, which

can radically alter the individual's response to advertising. It is suggested that the

effects of advertising should be evaluated using these dimensions, with some

intermediate variables more important than other depending factors such as product

category, stage of the product life cycle, target audience, competition and the impact

on other marketing-mix components.

1.4.3 Application of the reference group concept

Some advertisers to communicate with their markets use Reference group appeals

very effectively. People or group situations with a target audience are used to promote

goods and services by subtly inducing the prospective consumer to identify with the

pictured user of the product or service. This identification may be based on admiration

(an athlete), on aspiration (a celebrity or way of life), on empathy (with a person or a

situation), or on recognition (a person real or stereotypical or of a situation). Five

major types of reference group appeals are:

• Celebrity Appeals.

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• Expert Appeals.

• Common Man Appeals.

• Executive Appeals.

• Trade or Spokes-character Appeals.

These appeals as well as less frequently employed appeals are often pperationalized in

the form of testimonials or endorsements. In the case of common man they may be

presented as slice-of-life commercials.

Celebrities particularly movie stars, TV personalities, popular entertainers, sports

icons provide a very common type of reference group appeal. Reference group

appeals to the loyal followers and too much of the general public, celebrities represent

an idealization of life that most people imagine they would love to live. Advertisers

spend enormous sums of money to have celebrities promote their products, with the

expectation that the reading or viewing audience will react positively to the celebrities

association with the product.

Those advertisements featuring celebrities are rated more positively. This is especially

true among teenagers, who are more likely to project the celebrities' credibility to the

advertising message and the endorsed product.

1.5 CELEBRITY ENDORSEMENT

Celebrity endorsements pull in hundreds of crores every year, and are widely

preferred by companies 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/companies to consolidate their brand(s) in the crowded

marketplace. Consumers prefer to own a brand that has a good reputation, and when

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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.

1.5.1 Why Celebrities?

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 companies 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).

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 companies, 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. Celebrities increase

brand awareness and define values and new dimensions of the brand. Companies use

this approach to capture mind and market spaces for their brands. The underlying

reason for any celebrity endorsement has to be more sales, with more consumers

using the brand. The more effective the process is in raking up more and more

moolah, the more successful the celebrity is that is the bottom line.

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There is a flurry of ads on the television, the radio, and even in theatres these days,

and most of these ads feature either film stars or cricketers, or both. As a result, it is

becoming increasingly tough to ensure that one's share of voice is heard. Using a

celebrity in an ad is, therefore, doubly effective, in that it captures a definite mind

share of the prospective consumer, and if the features and attributes of the brand

match with those of the celebrity, the brand will surely hit gold. Rahul Dravid is

considered the most dependable batsman in the Indian team, and he transfers this

characteristic of reliability and dependability to the brand(s) he endorses. The reason

why Castrol uses Dravid to promote its engine oil seems to be logical, as the company

wants to convey to the target customers that Castrol is dependable, and gives the

vehicle a long life.

1.5.2 History of Celebrity Endorsement

Celebrities are involved in endorsing activities since late nineteenth century. The

advent of celebrity endorsements in advertising in India began when Hindi film and

TV stars as well as sportspersons began encroaching on a territory that was, until then,

the exclusive domain of models. One of the first sports endorsements in India was

when Farokh Engineer became the first Indian cricketer to model for Bryl cream. The

Indian cricket team now earns roughly Rs. 100 cr. through endorsements. There was a

spurt of advertising, featuring stars like Tabassum (Prestige Pressure Cookers), Jalal

Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar

(Dinesh Suitings).

1.5.3 Is it smart to use Celebrity Endorsements?

Stars, who are known to shape destinies, cast an enormous influence. No, we're not

talking about astrology here. We're referring to the powerful effect of celebrities on

destinies of brands. One approving nod from a famous face can translate into millions

in brand sales. Perhaps that's why the world over, companies have been using stars to

endorse everything, from food to food chains, from soft and hard drinks to health

drinks, from clothes and accessories to cars (and the tyres on which they run). Even

political parties are awestruck by the charisma of stars.

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Such is the magnetism of celebrities in this country that in the recent general

elections, major political parties fielded a record number of film stars and cricketers to

contest from important constituencies around the country.

Celebrity endorsements are very expensive. Therefore their use in an ad should be

justified. In other words, the message strategy for a brand should strongly warrant the

use a known face in an idea. Sadly, very often the celebrity is hired first and an idea is

then weaved around his or her presence.

A celebrity's presence in the ad should be contextual. When cricket player Sachin

Tendulkar declares, "Boost is the secret of my energy," it doesn't seem out of context.

Internationally, Nike's association with Michael Jordan is legendary and also logical.

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 needs to create

a unique situation or story that links the celebrity to the product.

Celebrity Endorsements as a strategy signing up stars for endorsements is a time-

tested strategy and has been effectively used by some of the top brands in the world

including Nike and Pepsi, In India too, HLL has used Hindi film stars to endorse their

beauty soap Lux since the fifties. Vimal, Thrums Up, Gwalior and Dinesh are some of

the other brands that used star-appeal in the early days of mass advertising. And who

can forget Kapil 'Palmolive' Dev?

Star endorsements have several benefits, key among them being building credibility,

fostering trust and drawing attention... any or all of which can translate into higher

brand sales. So how does one decide whether to put a celebrity in an ad? Ideally, this

should be dictated by the communication idea. Celebrity endorsements should be used

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.

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Most experts concur that, when used judiciously, celebrity endorsements can be an

effective strategy. And there are many examples of good and bad use of celebrities.

Actor Amitabh Bachchan, who has been used by some companies like Parker Pens

and ICICI Home Loans remarkably well while some others have been unable to

exploit his Big B status too well. Shah Rukh Khan's endorsement of Hyundai Santro

too seems to have worked well.

In a test of the match up hypothesis, Kamins (1990) demonstrated that the positive

impact of a celebrity endorser depends in part on proper fit between the celebrity and

the product. Some evidence even suggests that Wall Street values the use of celebrity

endorsers - Agrawal and Kamakura's (1995) analysis of stock price movements

showed that press releases announcing celebrity endorsement contracts resulted, on

average, in a .44% excess return (Journal of Advertising, July 1997). Yet, there are

some who don't have much conviction in star endorsements. Some people think that

to be really successful, a brand needs to have a strong identity of its own. It should

ideally not piggyback on the identity of a celebrity and hope to achieve success.

Celebrity endorsements are capable of manifesting both favorable and adverse effects

for the brands with which they associate.

1.5.4 Six uses of Celebrity Endorsements

Establishes Credibility: Approval of a brand by a star fosters a sense of trust

for that brand among the target audience- this is especially true in case of new

products

Attracts Attention: Celebrities ensure attention of the target group by

breaking the clutter of advertisements and making the ad and the brand more

noticeable.

Associative Benefit: A celebrity's preference for a brand gives out a

persuasive message - because the celebrity is benefiting from the brand, the

consumer will also benefit.

Psychographic Connect: Stars are loved and adored by their fans and

advertisers use stars to capitalize on these feelings to sway the fans towards

their brand

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Demographic Connect: Different stars appeal differently to various

demographic segments (age, gender, class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be a

good bet to generate interest among the masses.

1.5.5 Mechanism and Theories of Celebrity Endorsement

Celebrity endorsements give a brand a touch of glamour and the hope that a famous

face will provide added appeal and name recognition in a crowded market. In the

battle for the mind, you get the customer excited by showing him a known face, and

an effective demand is created. In short it helps increase the recall value of the brand.

A piece of research states that the target audience age group of 15-30 gets influenced

first by cricketers, then Bollywood stars and only then music, festivals and food.

According to Source Credibility Theory, acceptance of the message depends on

'Bxpertness' and Trustworthiness' of the source. Expertness is defined as the perceived

ability of the source to make valid assertions. Trustworthiness is defined as the

perceived -willingness of the source to make valid assertions. Audience acceptance

increases with the expertness of the source and the ability of the audience to evaluate

the product.

According to Source Attractiveness Theory, which is based on social psychological

research, the acceptance of the message depends on familiarity, likeability and

similarity, familiarity is the audience's knowledge of the source through exposure;

likeability is the affection for the source's physical appearance and behavior while

similarity is the resemblance between source and receiver. This theory explains the

message acceptance in two ways: Identification and Conditioning. Identification is

when the receiver or the target audience of the communication begins to identity with

the source's attractiveness, and hence tends to accept his opinions, beliefs, habits,

attitudes etc. On identification, a quote from Bijou Kurien, COO, Titan, "We decided

on Aamir because we wanted someone who is a bit iconic, who is style-conscious

himself, and somebody who cuts across both sex and age group, between urban and

rural India. A celebrity is one who is moldable and who is not over-exposed".

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Conditioning is when the attractiveness of the source is supposed to pass on to the

brand after regular association of the source with the brand.

Grant McCracken has criticized the previous two theories and proposed the Meaning

Transfer Theory, The theory explains that a celebrity encodes a unique set of

meanings which if well used can be transferred to the endorsed product. Such a

transfer takes place in three stages - encoding meanings, meaning transfer, meaning

capture (Figure 1).

I. Encoding Meanings: Each celebrity has a unique set of meanings, which

can be listed by age, gender, race, wealth, personality or lifestyle. In this

way, the celebrities encode a set of meanings in their image. For example

Preity Zinta can be seen as a lively, charming, bubbly, witty and

enthusiastic.

II. Meaning Transfer: This stage transfers those meanings to the product.

When skillfully portrayed, celebrities can communicate this image more

powerfully than lay endorsers.

III. Meaning Capture: This assumes that consumers purchase products not

merely for their functional value but also for their cultural and symbolic

value. The theory says that consumers buy the endorsed product with the

intention of capturing some of the desirable meanings with which

celebrities have passed on to the product. This is more eminent in lifestyle

products like clothes, perfumes, cell phones etc.

Does celebrity endorsement really work? Theoretically yes, because the qualities

associated with the endorser are associated with the brand and the brand therefore

remains at the top of the consumer's mind. However one needs to realize that the

impact of an endorser cannot be sustainable in all product categories and in all the

stages of brand life cycles. It really depends upon the type of product. If it is a

'functional brand', then the product itself is the hero. Here any celebrity association

with the brand without corresponding performance of the product will not be

sustainable. While increase of' image brands', like the categories of soaps, soft drinks,

cigarettes etc., where it is difficult to distinguish between the products, celebrity

endorsements help to distinguish between the brands at an emotional level. A research

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conducted by Synovate, a global market research firm, revealed that 47% people

would be more likely to buy a brand that was endorsed by their favorite celebrity.

Pepsi Co. has used a variety of celebrities including Aishwarya Rai, Hrithik Roshan,

Amitabh Bachchan, Kareena Kapoor, Rahul Khanna, Fardeen Khan, Sachin

Tendulkar etc. Amongst advertisements featuring celebrities, Pepsi tops the heap with

the highest recall of 70%, while archrival Coke is lower across all markets with 52%

recall. This proves that Pepsi has really exploited the use of celebrities in their

advertisements and has worked.

Hindustan Lever's 'Lux' soap in India has been using popular film actresses to endorse

the soap since its launch four decades ago implying that they owe their stunning looks

to the brand. This consistent message hence reinforces the brand values and has been

successfully able to position the soap rightly as the 'beauty soap".

It would be difficult to judge the direct effect of celebrity endorsement on the sales or

profits of the company. On Amitabh Bachchan endorsing RIN, an HLL spokesperson

says that it was too early to gauge the success of 'Rin1 in terms of sales and that

though Dabur healthcare products' sales had improved, the increase could not be

solely attributed to him. Similarly, there are also cases wherein there was a dramatic

change in the sales figure after the endorsements. For example Rahul Malhotra,

Associate Director Marketing, P&G India quotes "Certainly, it has helped us promote

our brand 'Head & Shoulders'. Last year, we were ranked as No. 2 and this year we

are market leaders in this segment with over 45% market share".

D. Garg, Vice-President (Marketing), Dabur India Ltd quotes, "A celebrity does help

in increasing brand sales, but only if he/she is selected carefully and used effectively.

The personality of the brand and the celebrity have to complement each other and the

selection of the celebrity is, therefore, very important."

1.5.6 SCOPE OF CELEBRITY ENDORSEMENT:

The use of testimonials by advertisers dates back to the 19th century when medicines

were patented. Firms have been juxtaposing their brands and themselves with

celebrity endorsers (e.g., athletes, actors) in the hope that celebrities may boost

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effectiveness of their marketing. The increasing number of endorsements throws a

valid question to the consumers. Is there a science behind the choice of these

endorsers or is it just by the popularity measurement? What are the reasons which

lead to impact of celebrity endorsement on brands? The success of a brand through

celebrity endorsement is a cumulative of the following 14 attributes. Greater the score

of the below parameters, greater are the chances of getting close to the desired impact.

Figure: 1

1.5.7 Positive Impacts of Celebrity Endorsement on the Brand

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Approval of a brand by a star fosters a sense of trust for that brand among the target

audience. This is especially true in case of new product. Celebrities ensure attention

of the target group by breaking the clutter of advertisements and making the

advertisement and the brand more noticeable. A celebrity's preference for a brand

gives out a persuasive message and hence, because the celebrity is benefiting from the

brand, the consumer will also benefit. There is a demographic and psycho graphic

connection between the stars and their fans. Demographic connection establishes that

different stars appeal differently to various demographic segments i.e. age, gender,

class, geography etc., while psycho graphic connection establishes that stars are loved

and adored by their fans. Some stars have a universal appeal and therefore prove to be

a good bet to generate interest among the masses. Another invaluable benefit from

celebrity endorsements is the public relation opportunities.

Dwane Hal Dean studied the effects of three extrinsic advertisement cues viz. third

party endorsement, event sponsorship and brand popularity on brand / manufacturer

evaluation. It was observed that endorsement significantly affected only product

variables (quality and uniqueness) and one image variable (esteem). The third party

endorsement hence may be perceived as a signal of product quality.

Goldsmith et al. assessed the impact of endorser and corporate credibility on attitude-

toward the-ad, attiiude-toward-the-brand, and purchase intentions. 152 adult

consumers were surveyed who viewed a fictitious advertisement for Mobil Oil

Company. They rated the credibility of the ad's endorser, the credibility of the

company, and attitude-toward-the-ad (Aad), attitude-to ward-the-brand (AB), and

purchase intentions. It was observed that endorser credibility had its strongest impact

on Aad while corporate credibility had its strongest impact on AB. The findings

suggest that corporate credibility plays an important role in consumers' reactions to

advertisements and brands, independent of the equally important role of endorser

credibility.

Looking at the effect of celebrity endorsement on the wealth of a company a classic

example of Michael Jordan can be used. At the time of rumors of Michael Jordan

returning to NBA in 1995, he was endorsing products of General Mills (Wheaties),

McDonalds (Quarter Pounders, Value Meals). Nike (Air Jordan) and Quaker Oats

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(Gatorade). Study conducted by Mathur et al. associated with Jordan's endorsements

shows that the anticipation of Jordan's return to NBA. And the related increased

visibility for him resulted in increase in the market adjusted values of his client firms

of almost 2 percent, or more than $1 bn in stock market value. From this study one

can observe that the major celebrity endorser with rumors or otherwise has a

tremendous potential to influence the profitability of endorsed products.

Semi-partial endorsement indicates that when a company uses famous characters from

any TV soaps for brand endorsements, consumers tend to relate to the character that

he or she plays in the soap and hence can attract more credibility. For example, Smriti

Irani who plays Tulsi' in a famous soap has garnered a lot of support from the middle-

class housewife today. If she would endorse a brand, there would be more relativity

and credibility. It can be said about Priya Tendulkar who used to play the character of

Rajani.

1.5.8 Negative impacts of Celebrity Endorsement on the brand

More often talked about is the extreme usage of a celebrity called 'lazy advertising',

that is inadequate content masked by usage of a celebrity. A good example is the use

of Boris Becker by Siyaram and Steve Waugh by ANP Sanmar. Also as said earlier,

associating with a star, in itself does not guarantee sales. There is also the fear of

Brand-celebrity disconnect which points out that if the celebrity used represents

values that conflict with the brand values, the advertising would create conflict in the

minds of the target audience.

Clutter in brand endorsements is very prominent these days and such kind of over-

exposure can be bad for the brand as the recall value drops by a huge margin. A

popular drawback of celebrity endorsement is the 'Vampire Effect' or the celebrity

overshadowing the brand. Some viewers forget the brand that a celebrity is approving.

Others are so spellbound by the personality of the celebrity that they completely fail

to notice the brand being advertised. Two new drawbacks can be seen these days what

companies call Celebrity Trap and Celebrity Credibility. Celebrity trap is when the

celebrity becomes an addiction for the marketing team and the task to find substitutes

becomes more and more difficult, leading to surfeit of celebrities. Celebrity credibility

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refers to skepticism by the consumers regarding the celebrities, especially when there

is anything negative regarding the celebrity associated with the brand in the news,

then brand is bound to be affected. For example, Air Jordan's generated revenue sales

of $130 million in the first year. The sales dropped miserably in the second year when

Jordan missed 62 games due to a broken foot. Another main worry of the advertisers

is that their celebrity endorser would get caught in a scandal or an embarrassing

situation.

Multiple product endorsement also has a negative impact on customers' purchasing

intentions. Tripp et al. investigated the effects of multiple product endorsement by

celebrities on customers' attitudes and intentions. They found that the number of

products a celebrity endorses negatively influences consumer perception of the

endorser and the advertising itself. It was suggested that when as many as four

products are endorsed, celebrity credibility and likeability, as well as attitude towards

the ad, may attenuate.

Superstar Amitabh Bachchan endorses multiple brands like Pepsi, Mirinda, ICICI,

BPL, Parker pens, Nerolac, Dabur, Reid & Taylor, Maruti Versa, Hajmola, Tide,

Cadbury and a few social messages. It has worked in some cases, while in some cases

it has not. D. K.

Jain, Chairman and President, Luxor Writing Instruments Pvt. Ltd, the company of

the Parker brand said. "Using Amitabh Bachchan as our brand ambassador has helped

in strengthening our brand image and recall within the target audience". Tarun Joshi,

Communications Custodian, Reid & Taylor said, "Amitabh Bachchan is an icon with

universal appeal and has helped us to reach out to the real 'Bharat.' In fact, agents and

retailers have told us that already customers have started asking about the 'Amitabh

wali suiting.1" Increase of Nerolac Paints, which was endorsed by Amitabh Bachchan,

around 80% of the respondents when asked to associate Bachchan with any paint, did

so with Asian Paints, which is the biggest competitor of Nerolac.

The budget or cost is an important factor for celebrity endorsement. Depending on the

status of the celebrity, remuneration could run into millions of rupees for several years

or may also include a profit sharing plan. For example when S. Kumar's used Hrithik

Roshan for their launch advertising for Tamarind, they reckoned they spent 40 - 50

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per cent less on media due to the sheer impact of using Hrithik. Sachin's endorsements

got him $18 million over five years. When Aamir first endorsed Pepsi in 1995, he

received Rs 17 lakh for it; his Coke commercials in 1999 got him Rs 2 crore. Hrithik

Roshan in his highflying days reportedly made over Rs. 20 crore in endorsements and

events by 2001.

However, a number of brands have been built without celebrity endorsement. For

some of their brands, Hindustan Lever and Procter & Gamble do not believe in

celebrity endorsement because they think that consumers, especially housewives, are

more likely to identify with a layperson on screen than a celebrity. Procter & Gamble

launched its 'Rejoice' brand in India with testimonials from ordinary women in their

TV advertising. Few more examples of this will be Lifebuoy, Wheel, Dettol, Close

Up, and Fevicol etc.

1.5.9 Choosing the Right Celebrity

Amitabh Bachchan, Shahrukh Khan, Hrithik Roshan, Sachin Tendulkar, and Sourav

Ganguly figure among a handful of celebrities who have been endorsing brands.

Companies have gone a step further to localize their endorsements, so as to have a

stronger impact by roping in the regional stars, who command a good following

among the local consumers. It is, nevertheless, high time companies rethink their

strategies of using celebrities for endorsing their brands, as this trend is fast becoming

a cliché, what with every other promotion featuring one or another, and the trick

losing its charm. The question is whether the celebrity can spread his/her values over

such a wide portfolio of brands that are endorsed, and what kind of impression would

the consumer have for the endorsed brand? The other aspect which sees companies

fork out huge (sometimes astronomical) sums of money for getting their products

endorsed by celebrities has to be looked at from the return on investment point of

view, and also the marketing angle, which preaches uniqueness and differentiability

of the products.

Can celebrities make brands reach the heights the companies aspire for? It is difficult

to answer this question. Celebrities can build brands, and at the same time, companies

may have to fold up if the endorsement does not click with the target audience.

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Companies need to be careful before choosing a celebrity for endorsing their brand, as

they spend huge amounts on their brands and also on the celebrity. The use of a

celebrity should help in building the brand's image. The pros and cons of using a

particular celebrity have to be considered before using them for endorsements; and

credibility of the celebrity is often one of the basic factors in determining his/her

suitability for the endorsement. Companies have to check if there exists a match

between the brand and the celebrity, and whether the deal is worth the investment.

There are some basic criteria for selecting the right kind of celebrity for a brand. They

are: The celebrity's image has to fit with the advertising idea and match the target

audience and the product; values, popularity, credibility and the availability of the

celebrity; cost of acquiring the celebrity; previous endorsement (if any), and the

celebrity's profession. There should be a synergy between the celebrity, the ad

message and the product. This helps in the customers developing an interest towards

the brand.

According to Ramesh J Thomas, principal executive officer, Equitor Management

Consulting, "The greatest danger is that because celebrities already carry a strong

brand character, a mismatch could be counterproductive to the brand. It is very

tempting to be carried away by the short-term exposure and interest that an

endorsement could generate". As all brands cannot make it big in the consumers mind

through celebrity endorsements of their products, the use of the celebrities for

endorsements has to be justified. The brand can only fare well in the market if it can

generate some bonding or relationship with the endorser. If this fails, the consumer

may get confused, and that could hamper the future prospects of the brand. Experts

opine that companies have to be careful in choosing the right celebrity for promoting

their brands, which could otherwise land them in trouble.

1.6 SUCCESSFUL ENDORSEMENTS/ ENDORSERS

Celebrity endorsements have found good acceptance among the customers as an

effective way of promoting brands. In a survey, it was found that in 20% of TV ads in

the US feature celebrities, most of them from the sports arena, and these are done to

gain ground in the consumers' minds with their interest for sports and sport stars. Nike

has benefited from using Michael Jordon, the famous basketball player by getting him

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endorse its shoes. Things have worked Nike's way, as basketball is a highly popular

sport in the US and when someone like Michael Jordan says he uses Nike; it indeed

creates a huge impact on the minds of the consumers. Nike has, in a way, justified its

use of Jordan through the profits it made. David Beckham, the soccer player from the

UK, is an icon both as a footballer and as an individual. His gaming skills, stylish

looks and lifestyle, have got him good recognition and a great fan following all over

the world.

When it comes to endorsements, analysts consider Beckham next only to Michael

Jordan. He has been associated with quite a few brands like Pepsi, Vodafone, Adidas,

Gillette, Police, Brylcream, etc. His lifetime deal with Adidas alone earns him $160

mn, with many of his other endorsements being successful. Tiger Woods, the top

golfer, has been associated with Nike and Accenture3. The first 5-year deal he signed

with Nike was worth $40 mn, and the company later extended that. According to an

estimate by Forbes magazine, Tiger Woods had made as much as $78 mn between

June 2002 and June 2003, of which a meager $7 mn (9% of total) was from his

tournaments.

In the Indian context also, there have been quite a few examples of brands, which

have been successful after being endorsed by famous personalities. The trend kicked

off with movie and television stars being used for the endorsements. HLL has been

using film actresses to endorse its beauty soap Lux. Amitabh Bachchan has been

endorsing many brands for quite some time now. Companies have been in a mad rush

to include Bachchan in their promotions to attract customers, because of the following

and respect the senior and talented star carries. It is a sort of belief for every company

and company that he can endorse any brand or any product and that the association

will win customer attention. This kind of reputation has often led companies to spend

huge amounts on signing film stars. Shahrukh khan also has been in the endorsing

business, and his endorsements include Pepsi, Hyundai Santro and Videocon to name

a few.

In India, cricket is followed like a religion and has, thus, turned to be a breeding

ground for stars that can be used by companies. Companies have been very quick in

identifying this, and started using cricket stars to endorse their brands/products. Kapil

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Dev, the great Indian cricketer and "Wisdom Indian Cricketer of the Century", used to

endorse Palmolive and Boost during his tenure in the Indian cricket team. Now, the

list of cricketers endorsing brands will be a long one. The best and most widely

regarded of them has to be Sachin Tendulkar, also referred to as the little master, who

carries a nation's hope on his shoulders in every game that he plays. Tendulkar has

been associated with nearly a dozen brands, and companies have been paying him

some hundreds of crores of rupees to vouch for their brands. The little master has

given his charismatic touch to brands like MRP, Pepsi, Boost, TVS, Airtel, etc.

1.7 Forms of Celebrity Endorsements

A celebrity can endorse brands in different ways based on the purpose, the

advertisement media and the appeal to be generated. The product could be

commercial ones or noncommercial ones (social advertising). Following types of

endorsement forms have been identified to be heavily in use at present:

• As spokesperson, e.g. Amitabh Bachchan in KBC.

• In print and electronic advertisements, e.g. Shah Rukh Khan in Omega and

Pepsi.

• In outdoor media like hoarding, e.g. Aishwarya Rai in Lux advertisement 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, Pass Pass and

Coke in Yaadein.

1.7.1 Factors to choose endorser

Companies must consider many factors when choosing a celebrity to serve as an

advertising spokesperson for the company or a particular brand. Studies have shown

that advertising and marketing managers take these various factors into account when

choosing a particular celebrity endorser.

Figure: 2

25

These most important factors are:

• Celebrities match with the target audience and the product or brand.

• The overall image of the celebrity.

• Cost of acquiring the celebrity.

• Trustworthiness.

• Risk of controversy.

• Celebrity's familiarity and likeability among the target audience.

Advertisers often draw attention to the ads featuring a physically attractive person

who serves as a passive or decorative model rather than as an active communicator.

This is most common with the cosmetic industries. Research suggests that physically

attractive communicators generally have a positive impact and generate a more

favorable evaluation of both ads and products than the less attractive models. For

example, Revlon use super-model Cindy Crawford in advertising for various cosmetic

products. Advertisers must ensure that the consumer's attention should go beyond the

model to the product and advertising message. Companies must also consider whether

this might negatively impact advertising impact.

1.8 PERSPECTIVES TO ENDORSEMENT

Perspective to celebrity endorsement can be studied under the following heads:

1.8.1 Company's Perspective to Endorsement

• A celebrity helps short hand a brand; in other words makes a brand stand

out.

• Celebrities facilitate instant awareness and immediate attention.

• Celebrity values define and refresh the brand image and a celebrity adds

dimension to it.

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• A celebrity adds new dimension to the brand image.

• A celebrity lends instant credibility or aspiration to the brand. Celebrities save

time in creating the credibility a company has to build into the brands.

• PR coverage is another reason for using a celebrity. Managers perceive

celebrities as topical, which creates high PR coverage. Indeed, celebrity-

company marriages are covered by most media, from television to

newspapers.

Gestalt Perception means using a celebrity as a remedy. When a person is famous

people forget about what he looks like. As everyone knows the face, it is hard to judge

whether the person is pretty or ugly. The celebrity is a remedy to managers who run

out of ideas.

1.8.2 Celebrity's perspective to endorsement:

The first reason that most celebrities would endorse a product for is the huge

compensation involved with it. Second reason why celebrities wish to endorse is to

get an enhanced level of acknowledgement based on the success of the product they

are associated with. KBC and Movers and shakers helped stabilize the fast declining

career of their hosts by providing strong audience recognition. Finally, endorsement

breeds endorsement. Not only does the subject end up getting better offers but the

avenues in related and unrelated fields also open up. Most of the cricketers for

example have already been made to walk the ramp and a lot of models have already

made their way into movies.

Many American celebrities make huge sums of money endorsing products. Some big

stars won't appear in ads because they want fans to .think they have sold out. But

many celebrities who don't endorse in their native country endorse for the Japanese

advertisers. Mega stars like Meg Ryan, Brad Pitt, Demi Moore and Harrison Ford are

paid in between Shnn to $3mn for a few hours' work to make 15 to 30 sec

commercials. While many celebrities are cashing on these Japanese deals, they still

try to protect their image at home, for which they have non-disclosure contracts. The

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reasons why Japanese companies are willing to shell out huge sums of money for

these stars are as follows:

• The American culture and its celebrities fascinate many Japanese.

• Japanese advertising emphasizes style and mood rather than substance.

• Consumers expect to be entertained.

• It boosts the endorsers' visibility and helps the marketing of their firms in

Japan and other Asian countries.

1.8.3 Consumer's perspective to endorsement

• Messages delivered by well-known celebrities achieve a high degree of

attention and recall for consumers.

• Celebrity Expertise perceived relevant image. Expertise is the knowledge

that the communicator seems to possess to support the claims made in the

advertisements. A well-known face would obviously speak for more expertise

than an ordinary one. For example, Sachin Tendulkar would always better

advertise Reebok.

• Celebrities are perceived Trustworthy. Trustworthiness refers to the

consumer's confidence in the source for providing information in an objective

and

• honest manner. People are more likely to trust the quality of a trustworthy

celebrity endorsed brand over a non-endorsed one.

• Ambitious psyche. People ape the celebrities in their day-to-day activities and

many even dreams to become like a celebrity some day. Some know they

wouldn't become as good as the celebrities but sharing common belongings

makes them feel better.

• Physical Attraction. Consumers tend to perform positive stereotypes about

such people. Physically attractive people are more successful in changing

beliefs than non-attractive people.

But the personalities that the companies use for endorsing its product may not always

be "good guys". Sometimes some companies try to go off the traditional path and use

the "bad boys" for endorsement. This is mostly prevalent with the athletic-shoe

companies who are hiring the personalities engaged in misdeeds off the court or field.

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The earliest used "bad boys" was former basketball star Charles Barkley to appear in

the ad of Nike in the mid-90s. Another basketball player Dennis Rodman was also

used to endorse Nike. These were also known for their rebellious nature. But what are

the reasons behind these off the route endorsements? There may be one explanation

for this. These companies are targeting young trend setting males who often identify

themselves with the scandalous and rebellious image of these "bad boys". Through

this the companies try to reach the actual mindset of these types of audiences, thus

being close to reality. In the current athletic shoe market, it appears that the "bad

boys" are boosting up the consumers more than the "good guys".

1.9 Risks involved in celebrity endorsement

There are a number of risks that a company takes into account when deciding to use a

celebrity to endorse a brand. These are as follow:

The overshadowing of product: According to Belch and Belch (2001)

overshadowing is a risk that companies must be aware of when using celebrity

endorser in marketing campaigns. According to Till (1998) this often occur

when companies try to establish a link between a celebrity and company when

the endorser are already sponsoring several other brands. The overshadowing

effect will result in that the consumer just sees the celebrity instead of the

product. Since the endorsers that Skånemejerier is using as said before don’t

do any other major sponsorship they don’t see this as a threat. The consumers

might focus their attention to the celebrity only and do not notice the product.

So the company must use the celebrity who enhances the brand image and also

conveys the message to the target audience.

Overexposure: According to Tripp et al (1994) overexposure and overuse is

an important risk to consider when using celebrity endorsers. There is a risk

that consumers do not see the connection between the brand and endorser if he

or she is endorsing too many products. Ronny Månsson says that when it

comes to Skånemejeriers use of celebrity endorsers for Proviva Active they do

not see any risks concerning overexposure and overuse. Since the celebrities

they are using are not endorsing other brands that could interfere with the

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image they are trying to establish between themselves and Proviva Active.

And when the endorser is not endorsing any other products there is neither any

risk for overuse of the celebrity. Consumers are sometimes skeptical of the

celebrities because they think they are paid for endorsing. This problem is

prevalent when a celebrity endorses too many brands. So the company must

take care that the endorser is not overexposed. For instance Amitabh Bachchan

is endorsing too many brands. This may prove to be the risk of overexposure.

Negative celebrity information: According to Till and Shimp (1998) there is

a risk that the celebrity endorser can receive negative information and

publicity which can be transferred to the brand through the endorser.

Skånemejerier fits into theory and agrees that this is a risk they are aware of.

The main risk is that one of their endorser would use some illegal drugs to

enhance their performance. They do not see any other risk when it comes to

negative information because they feel that their endorsers live a healthy life

and won’t do anything to risk that.

Investment risk: Walker et al (1992) says that celebrity endorsement is huge

financial risk for companies due to the fact that companies don’t have control

over the behavioural of the endorsers and therefore companies may invest

money in something that can be a huge set down for their company. Till

(1998) agrees with Walker et al (1992) and says that it is important to see how

many products the celebrities are endorsing. Skånemejerier has in their

marketing budget a specific post for their investments in celebrity

endorsement and they now that if they invest a given amount of money to hire

a celebrity endorser they now that it will cost them up to the double amount to

actually launch a marketing campaign with the endorser. Ronny Månsson says

that there is larger risk to use a famous athlete but they are still willing to take

this risk because they want to transfer the image of their celebrities to their

brand. Therefore Skånemejerier fits into theory regarding investment risks.

Extinction: According to Ziegel (1983) there are many celebrities that

disappear from the media flashlight during their contract with a company. This

is something that companies should be aware of and think about when using

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celebrity endorsers. When dealing with extinction we can see that

Skånemejerier fits into theory. This is a risk that Skånemejerier is aware of

and says that there are chances that their endorser may do weak performances

when they are competing and therefore they will not be in the media flashlight.

Ronny Månsson also say that the season for athletes is fairly short so they are

not interesting for the media all year round which is a negative side of the

endorsement. There are also chances that the endorser might injure himself,

which makes him disappear from the media circus for a long time, because if

they don’t compete they won’t be shown in the media.

A celebrity behavior may also pose a risk to the company if the celebrity gets

involved in controversies e.g. when Salman Khan got involved into a hit and run case

his endorsement contract with Thumbs Up was cancelled.

To avoid these problems, companies, prior to using a celebrity, researches his or her

personal life and background. Many endorsement contracts include a morals clause

where the company indicates the termination of the contract if the celebrity gets

involved in any controversy, which may harm the company's image.

1.10 Methods to reduce risk in celebrity endorsement

This section deals with theories concerning how using models to match celebrities to

products and services can prevent risks within celebrity endorsement.

Reducing risk

According to Tellis (1998) there are several ways in which companies can

ensure against some surprises that can occur when using celebrity endorsers.

Companies should start with a properly screening of candidates to ensure that

they are buying the right image, and that the risk with the celebrity contract is

worth the potential risk for damage. Companies can also set up contracts that

have a moral clause. A moral clause is a legal statement that gives companies

the option to terminate a contract with a partial fee or no fee at all. These

clauses often state that if the celebrity becomes involved in any situation or

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occurrence, which in the company’s reasonable opinion, subjects Talent or

Company to ridicule, contempt or scandal (ibid.).

Managing celebrity endorsers

According to Till (1998) companies must establish a link between the endorser

and the brand or product. When an associative link is built between the

celebrity and the brand each is then part of the other association set, a group of

concepts, which are meaningfully related to a target brand. One good example

of this is consumers thinking of Michael Jordan when thinking about Nike and

consumer thinking about Nike when thinking of Michael Jordan. Repeated

pairing of the two stimuli is a key to associative learning process, because

repeated repetition of the pairing of two stimuli increases confidence that the

presence of one stimulus predicts the presence of the other stimulus. Within a

celebrity endorser context, repeated pairings of the endorser, increases

consumer’s recognition that the brand is a good predictor of the presence of

the celebrity, strengthening the link between the brand and the celebrity

(Ibid.).According to Till (1998) companies often use a celebrity endorser

sporadically or opportunistically either at the whim of the client or the agency.

Payback on the investment in celebrity endorsement comes from using the

celebrity regularly over time. Such repetition both strengthens the associative

link for those consumers already aware of the of the celebrity endorsement as

well increase the pool of consumers who begin to become aware of the link

between the brand and the celebrity. If companies don’t use the chosen

celebrity consistently it will weaken the benefit from using the endorser

(ibid.).

The source attractiveness model

The source attractiveness is a model that has been explained by several authors

through the years. The source attractiveness model posits that the acceptance

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of a message depends on the attractiveness of the source, which in turn

depends on three central attributes: familiarity, likeability, and similarity.

Familiarity is the audience’s knowledge of the source because of prior

exposure to it. Likeability is the audience’s positive regard for the source

because of its physical appearance and behaviour and similarity is the

resemblance between the source and the receiver. The higher a source rates on

each of these attributes, the more acceptable and attractive it will be. There are

two explanations to how attractiveness affects the message acceptance:

Identification and conditioning. Identification means that the receiver off the

message begins to see himself or herself as similar to the source because of the

latter’s attractiveness. Because of that the receiver becomes willing to accept

the opinions, beliefs, attitudes or behaviour of the source. Conditioning means

that the endorser is an unconditioned stimulus, and the brand or product would

be the conditioned stimulus. When the endorser is repeatedly associated with

the brand, the attractiveness of the endorser is supposed to pass to the brand

(Tellis, 1998; Kamins et al, 2001; Kahle and Homer, 1985).

Match up

According to Till (1998) to create an effective endorsement between a

celebrity and a brand it is important that there is brand–celebrity congruency

when it comes to facilitate the development of an associative link. When there

is a perceived fit between the brand and celebrity, there is a greater probability

of building an associative link. Because a poor fit between celebrity and brand

is suggested the primary cause of failed celebrity endorsement. The greater the

perceived fit between the celebrity and the brand the more quickly the

associated link between the two can be expected to develop. The choice of

celebrity should fit with the association the brand either currently has or

plausible could have. When the choice of celebrity fits current associations,

then the celebrity serves to reinforce existing associations. If the

associations/image of the celebrity fit the desired associations that the brand

could plausibly have, then the celebrity serves to create association for the

brand. However there is not only important that the celebrity has a fit towards

the brand and image, companies must also consider that the celebrity has a fit

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towards the target audience. It is important that the associations the company

believes the celebrity has are associations that the brand’s target audience

actually has of the celebrity. Different groups of people may have different

associations for any given celebrity. It is therefore necessary, to test the

possible use of any celebrity with the brand’s target group to ensure that the

image/associations the celebrity has in the minds of the target audience are

meaningful, positive and consistent with the company’s expectations (Till,

1998).

Overshadowing

According to Till (1998) the way to decrease the chances of overshadowing

the advertising executions should be single-minded in communicating the

brand-celebrity pairing. The brand and the celebrity should be the two

strongest elements in the ad. Ad executions which are cluttered with

superfluous executional devices, distract from the brand celebrity pairing is

weakening the potency of the celebrity endorser. The like hood of forming an

associative link between the celebrity and the brand increases when there are

few other competing elements in the advertisement (ibid.).

Overexposure

According to Till (1998), when celebrities are endorsing several products

blocking can occur which refers to the reluctance of a favourable stimulus

(celebrity endorser) to form a strong link with another stimulus when the

favourable stimulus (celebrity endorser) already has a strong association with

a previous stimulus. When a celebrity already is strongly associated with a

brand they will not form associative links with other brands. Therefore

companies should avoid using celebrities that are already endorsing several

other brands to which they have a strong connection (ibid.).

Extinction

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To reduce the risk of extinction companies should expand their use of

celebrity endorsement. Because it is unrealistic to expect that every time a

consumer encounters a brand the celebrity endorser image also will be present.

Therefore companies should work to get endorsers more integrated into the

marketing mix. Although most commonly used in advertising, celebrity

endorsers can be effective in promotion activities, such as giving away related

items or trips, which tie into the celebrity. The celebrity could also be used at

large trade shows, national sales meetings and other significant publicity

events (Till, 1998 Ziegel 1983).

Financial risk

Companies must decide how cost effective their choice of celebrity is. The

celebrity with the highest potential is often also the most expensive one.

Companies should therefore look for a lesser-known person that fits into the

message of the brand and appeals to the target audience (Tellis, 1998).

Q-ratings

According to Miciak and Shanklin (1994) it is important that consumers sees

the celebrity as person with credibility and attractiveness and that the celebrity

is an effective media person. For celebrity to be credible, consumers must

perceive them to be trustworthy and have the expertise to speak about a

product or service. The reasoning is that the more credible and attractive a

celebrity is the more persuasive he or she will be as endorser. Therefore

companies are starting to use the Q- value to estimate how good their brand is

together with a specific celebrity endorser. According to Shimp (1997) to find

out how effective an endorser might be questionnaires are sent out to

individuals that are asked to answer two simple questions: Have you heard of

this person? The second question is: If you have, do you rate him or her; poor,

fair, good, very good or one of your favourites? The Q rating is then calculated

by dividing the percentage of the total sample rating the celebrity ‘as one of

your favourites’ by the percentage of sample who knows the celebrity (Shimp,

1997). A celebrity may not be widely recognised but he or she can still attain a

35

high Q rating as individuals who do recognise the celebrity also likes the

celebrity. On the other hand a celebrity may be widely recognised but still

have low Q rating since the respondents may not like them. The Q rating

answers the question of popularity among those familiar with him or her

(ibid.). According to Rossiter and Percy (1987) Q ratings are a good way for

companies to avoid hiring big celebrities that aren’t popular among their target

audience. This also makes Q ratings a good method to filter celebrities for a

company (ibid.).

The possible discrepancies in the present system of endorsement could be as follows:

• Owing to unavailability of dates, long-term contracts have to be signed

whereas the life of the celebrity may not always be long term.

• The celebrities start becoming bigger than the brand.

• The celebrity is at best company chosen but never customer chosen.

• The celebrity may begin to lose value due to inappropriate choice of endorsed

product or failure of product.

36

Chapter two

Review of Literature

2.1 Celebrity Endorser

The term celebrity refers to an individual who is known to the public (actor figure,

entertainer, etc.) for his or her achievements the areas other than that of the

product class endorsed (Friedman and Friedman, 1979). According to McCracken's

(1989) definition, a celebrity endorser is an individual who enjoys public recognition

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

an advertisement (marketing communication).

Celebrities, live and in person, get most folks' pulses pounding, their palms sweating,

their minds racing to calculate whether it would be cool or gauche to approach them,

to mention the obvious fact that we recognize them, that we know far more about

them than they know about us, and that this makes them seem infinitely superior to us

(Ferris 2004).

2.2 Impact of Celebrity Endorsement

Several studies have examined consumers’ response to celebrity endorsements in

advertising. Findings show that celebrities make advertisements believable and

enhance message recall (Friedman and Friedman, 1979). Ultimately celebrity

endorsers are believed to generate a greater likelihood of customers choosing the

endorsed brands (Kahle and Homer, 1985). Thus, the use of celebrity endorsements

is an advertising strategy that should enhance the marginal value of advertisement

expenditures and create brand equity by means of the “secondary association” of a

celebrity with a brand (Keller, 1993).

Celebrity endorsers have been found to be more effective in promoting products

with high psychological and/or social risk than products with high financial and

performance risks (Mehulkumar, 2005). In most celebrity endorsement research, the

37

products which were investigated were classified in different product categories

1998, 2000), or unknown brands (Atkin and Block 1983; Kamins et al. 1989). In

(Kamins, 1990; Ohanian, 1990, Walker et al. 1992), fictitious brands practice,

celebrity endorsement is used for existing brands, which means that it can influence

the brand image. A celebrity endorser used in an advertisement can be interpreted

as a reference group. Shiffman and Kanuk (2006) define reference group as any

person or group of persons that serves as a point of comparison for an individual by

communicating values, attitudes and providing a specific guide for behavior. An

aspiration group is a derivative of the reference group: in this case, the consumer

does not belong to the group but is willing to be associated with it. To become

'associated' with this group, consumers are willing to behave like members of the

aspiration group. This means that consumers are trying to behave in the same

manner, e.g. try to use the same symbolic meanings – of the aspiration group. This

means that a celebrity endorser can be interpreted as the 'personality' of the

reference group. The reference group 'rich and famous', which often correspond

with the way the ‘celebrities’ live, is frequently indicated as an aspiration group of

which consumers like to be part (De Pelsmacker et al., 2004).

Erdogen (1999) says when global campaigns are organized celebrities who are

appropriate for a global target audience are used. General celebrity endorsement

influences the feelings of the consumers and can also influence the attitude

consumers have towards the advertisement and attitude towards the brands, which

can increase the purchase intentions and, consequently, increase sales. Potential

advantages of utilizing celebrity endorsers are that it can increase attention, polish

the image of the brand, especially when a brand will be introduced in the market or

are positioning of a brand will take place (De Pelsmacker, 2004).

Companies invest large sums of money to align their brands and themselves with

celebrity endorsers. Research has shown that because of the fame of celebrities,

they do not only create and maintain attention of the consumers but they also

achieve high message recall (Ohanian, 1991; O'Mahony and Meenaghan, 1997).

38

However, companies have limited control over the celebrity's persona which can also

result in high risk and “no gain” situations (e.g. the “scandals” surrounding

celebrities like Michael Jackson, Kate Moss, Britney Spears, and Paris Hilton). As a

result, companies build characters (using people who are not celebrities) which are

congruent with their brands and target-audiences, and ensure hat these characters

is endorsing only one particular product. Tom et al. (1992) found that created

endorsers were more effective in creating a link to the product than celebrity

endorsers. Agrawal and Kamakura (1995) assess the impact of celebrity

endorsement contracts on the expected profitability of a firm by using event study

methodology. Their approach assumes that the announcement of a celebrity

endorsement contract, usually widely publicized in the business press, is used as

information by market analysts to evaluate potential profitability of endorsement

expenditures, thereby affecting the firm’s expected return. The result of analysis of

110 announcements of celebrity endorsement contracts showed on average the

impact of these announcements on return is positive and suggest that celebrity

endorsement contracts are generally viewed as a worthwhile investment in

advertising.

The primary interpersonal privilege of celebrity is attention. Celebrities matter to the

rest of us, even if we would have no interest in them were they not celebrities. The

most mundane experiences of celebrities' lives attract attention, not just by fans but

also by anyone who happens to recognize their fame. Players on a successful college

basketball team, for instance, develop a "glorified self" through the attention that they

receive on and off campus. Without this attention, they would just be everyday

college students, only taller (Adler and Adler 1989). A study of students' relationships

with celebrities found that ordinary people "seek out further information about

celebrities' lives for vicarious pleasure" (Leets et al. 1995). All this attention and

information turns celebrities into "intimate strangers" (Schickel 1985), persons with

whom we have unilateral "parasocial" relationships (Giles, 2000; Horton and Wohl,

1956). A neurological study found that celebrities both their image and their printed

name trigger dedicated fast-access memory cells in the brain, at least among a sample

of eight epileptics in Los Angeles who had sensors implanted in their brains to track

seizures (Quian Quiroga et al. 2005).

39

In ‘The Relative Effectiveness of Celebrity Endorsement for Beauty, High- and Low

Involvement Product Print Advertisements’, Irene Roozen (YEAR) professor in

University of Antwerp, Brussels states two research projects. In the first research

project, the matches between the products concerned and a number of celebrities were

analyzed. In the second research project advertisements with the best and worst

product-celebrity matches, respectively, are compared with advertisements with a

picture of an anonymous person and advertisements without a celebrity or picture.

The research results do not indicate that celebrity endorsement is effective. This result

was also found for the advertisements with the endorsement of celebrities who were

found to match best with the products at hand. These results, therefore, suggest that

the considerable amounts invested in celebrity endorsement could better be allocated

to other advertisement ends.

By analyzing the influence of celebrity endorsement on the brands and or products

shown in the advertisements, it is important to make a classification between high

and low involvement of the advertisement. The Elaboration Likelihood theory (Petty

et al. 1981) shows that attitudes change through different routes. Under conditions

of high involvement, where elaboration is likely, the attitude change travels trough a

'central route' in which a person exercises 'diligent' consideration of information that

(s)he feels is central to the true merits of a particular attitudinal position. For low

involvement, low elaboration likelihood, the attitude change travels through a

'peripheral route' in which various simple cues associated with the issue, object, or

context exert optimal influence. This means that under conditions of high

involvement, arguments but not celebrities influence attitudes, whereas under

conditions of low involvement, celebrities but not arguments influence attitudes.

However, Kahle and Homer (1985) have shown that the involvement effect is

sensitive to variation and that the physical attractiveness of a celebrity affects the

attitude change process. A psychically of physically attractive model exudes

sensuality, can increase arousal which can affect information processing. For

example, in the case of a stunningly attractive person who claims to use a beauty

product the product in question may be assumed to be an element of the person’s

40

beauty formula. Information concerning attractiveness is conveyed more quickly

than other information, even if it is not highly probative .The categorization of

products into low and high involvement is based on the risk perceptions consumers

have when purchasing products (which is significantly higher for high involvement

products). Risk perceptions can be classified into four categories (Friedman and

Friedman, 1979): (1) Psychological risk: the fit between product image and self

image, (2) Financial risk: associated with the price of the brands/products, (3) Social

risk: fear of not belonging or not taking part to/in a reference group as a result of

purchasing the 'wrong' product/brand, (4) Operational risk: risk of buying a product

that does not operate the way it should do. Another study by Dean (1999) tested the

effects of three advertising cues- third- party product endorsements, brand

popularity and event sponsorship to affect the consumer perceptions with regards to

product quality, uniqueness, manufacturer esteem and corporate citizenship. Mehta

(1994) has found that there were no significant differences for the concepts

‘attitudes towards the advertisement’, ‘attitude towards the brand’ and ‘intentions

to purchase endorsed brands’ between celebrity and non-celebrity endorsement

advertisements. When confronted with non celebrity endorsers, consumers were

significantly more focused on the brand and its features, whereas with celebrity

endorsers the subjects were significantly more concentrated on the celebrity in the

advertisement. However, Atkin and Block (1983) and Petty et al. (1983) have found

the opposite results of Mehta (1994).

2.3 Models to analyze Celebrity Endorsement

Two general models are often used to analyze celebrity endorsement: the source

credibility model and the source attractiveness model. Furthermore, a description of

the endorsed brands and the match between the celebrity and the product is

presented.

2.3.1 Source Credibility Model

41

Source credibility is used to imply a communicator's positive characteristics to affect

the receiver's acceptance of a message. The source credibility model of Hovland et

al. (1953) analyses the factors leading to the perceived credibility of the

communicator. Hovland et al. (1953) concluded that the two factors trustworthiness

and expertise underscore the concept of source credibility. Trustworthiness is

defined as the degree of confidence in the communicator's intent to communicate

the assertions he considers most valid. Research shows that when a communicator is

perceived to be highly trustworthy, an opinionated message is more effective than a

non-opinionated communication in producing attitude change (Ohanion, 1990).

Expertise is defined as the extent to which a communicator is perceived to be a

source of valid assertions (Hovland, et al. 1953). Already in the early eighties,

research results haveindicated that in a selling context, an expert salesperson

induced a significantly higher number of customers to purchase than did a non-

expert salesperson (Woodside and Davenport, 1974).

2.3.2 Source Attractiveness Model

The source attractiveness model is a component of the 'source valence' model

presented by McGuire (1985). The attractiveness model contends that the

effectiveness of a message depends on source's 'familiarity', 'likeability', 'similarity'

and 'attractiveness' to the respondent. Attractiveness has become an important

factor through the increasing use of celebrities as endorsers for products, services

and/ or social causes (Patzer, 1983; Ohanion, 1990). Most television and print ads

use physically attractive people. Already in the eighties, research has shown that

psychically attractive communicators are more successful in changing beliefs than

unattractive communicators (Chaiken, 1979).

2.4 Match between celebrity and brand / product

Research has shown that not only the classification of the product, source credibility

and source attractiveness can influence the effectiveness of the celebrity endorser

42

but also the match between the brand and or product with the celebrity. There

should be congruence between the celebrity and the product in terms of

characteristics such as image, expertise (Till and Busler, 1998; 2000) or attractiveness

(Baker and Churchill, 1977; Kahle and Homer, 1985). The celebrity-product match

model states that attractive endorsers are more effective when promoting products

used to enhance one's attractiveness (Kamins, 1990) and that the impact will be not

significant in the case of a product that is unrelated to “attractiveness”. Kahle and

Homer (1985) found that in the case of attractiveness related products the use of

physically attractive celebrities increased message recall; product attributes, and

purchase intention. In 1998, Till and Busler have examined attractiveness versus

expertise as a match-up factor and found a general attractiveness effect on brand

attitude and purchase intention but no match-up effect was found based on

attractiveness. They proposed that expertise is more appropriate for matching

products with celebrity endorsers than attractiveness. Walker et al. (1992) concluded

that meanings and images are transferred from the celebrity endorsers to the

product.

McCracken (1989) has addressed the endorsement process from a cultural

perspective. According to ‘meaning transfer model’, the symbolic properties of the

celebrity endorser serve the endorsement process by taking on the meanings that

then carry from ad to ad. The source models (attractive and credibility) do not

explain why a celebrity fails as an endorser for one brand while being successful for

another brand. McCracken (1986) explains cultural meanings as something inherent

and resident in the culturally constituted, psychical, and social world and then move

through a conventional path to individual consumers where it is transferred through

the efforts of the consumer. This model conveys the celebrity is a persuasive

communicator with a set of fictional roles and when consumers respond to celebrity

specific characteristics they are responding to the particular set of meanings of the

celebrity. The effectiveness of the celebrity depends upon the meanings the celebrity

brings to the endorsement process. He also suggests that the role of the celebrity is

not only being attractive or credible but also the celebrity has to make up certain

meanings the consumer finds compelling and useful.

43

Figure 1: The Meaning Transfer Model

Source: McCracken, 1989.

In the initial stage of this model, the meanings generated through political

campaigns, athletic achievements and performances and/or distant movie

performances, reside in celebrities themselves. In the second stage, meanings are

transferred to the product through advertisement and the endorsement process. In

the last stage, the meanings are transferred from the product to the consumer

where the properties of the product become the properties of the consumer.

Sandhir Sharma, professor at Punjab College of Technical Education, Ludhania

carried out a survey in Ludhiana, taking sample size of 100 viewers. The study

contained the sample size of 100, all the people of the age of 18 years and above.

The demographic profile of the respondent included 23 Businessmen, 35 service

44

class people, 30 students, 6 professionals, 4 housewives and 2 retired persons. Out

of 100 respondents, 56 were males and 44 were females. The results showed that

54% of the respondents feel that celebrities cast an impact through the

advertisements while 46% do not feel any impact of celebrities. Out of 54

respondents, 42 feel that celebrities attract attention towards an ad, 15 of them feel

that they arouse interest in the product. 12 respondents are of the view that

celebrities build a desire to have the product and only 6 respondents only feel that

celebrities initiate an action to buy that product. The study also revealed that

majority of the respondents i.e. 63% get attracted more towards Film Stars than any

other celebrity. Majority of the respondents felt they would continue buying same

goods from the market irrespective of the act of advertising the same product

through any specific celebrity. The study found that very few respondents (37%)

have bought product(s) under the influence of any celebrity which means that a

consumer wants something more in an advertisement than a celebrity to be

influenced enough to buy the product.

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. Mukherjee (2009) has evaluated

associated factors that contribute to the success or failure of the endorsement.

Celebrity endorsement has been established as one of the most popular tools of

advertising in recent time. It has become a trend and perceived as a winning formula

for product marketing and brand building. It is easy to choose a celebrity but it is

tough to establish a strong association between the product and the endorser. While

the magnitude of the impact of celebrity endorsement remains under the purview of

gray spectacles, this paper is an effort to analyze the Impact of celebrity

endorsements on brands. The study aimed at examining the relationship between

celebrity endorsements and brands, and the impact of celebrity endorsement on

consumer's buying behaviour as well as how consumer makes brand preferences.

The author proposes a 20 point model which can be used as blue-print criteria and

can be used by brand managers for selecting celebrities and capitalizing the celebrity

resource through 360 degree brand communication which, which he considers the

45

foundation of the impact of celebrity endorsement. The major factors that are

having maximum impacts of successful endorsement are a) Consistency and long-

term commitment, b) Prerequisites to selecting celebrities, c) Celebrity–brand

match, d) Constant monitoring, e) Selecting unique endorsers, f) Timing, g) Myopic

endorsement strategy, h) Brand over endorser i) Celebrity endorsement is just a

channel, j) Over dependency on celebrity, k) The celebrity trap, l) Trademark and

legal contracts, m) Overall Management, n) Investment, o) The Brand endorsement

team, p) Feel Cultural Sensitivity and q) Celebrity ROI.

46

Chapter Three

RESEARCH METHODOLOGY

3.1 Need for Study

The organizations are using the celebrity endorsers for promoting their products. They

choose a person a face who may best- fit with the image of their product and brand as

well. At the same time, there is need to know the perceptions of the viewers and

consumers. This helps in estimating the impact of particular celebrity endorser on the

consumer buying behavior and final purchase decision. The importance of appropriate

celebrity endorser for the brand or product resulted in the need for the study.

3.2 Objectives of the study

This study had the following objectives-

1. To study the significance of celebrity endorsement.

2. To analyze the use and effectiveness of celebrity endorsers.

3. To measure the effectiveness, attractiveness and credibility of certain

celebrities.

4. To study the various dimensions of celebrity endorsers.

5. To establish a relationship between consumer behavior and celebrity

endorsement.

6. To view the companies and endorsers perspectives towards celebrity.

3.3 Research Methodology

3.3.1 Data Collection

Two kinds of data which has been gathered and used for carrying out this research are

1. Secondary Data

2. Primary Data

47

Secondary Data has been gathered to gain better understanding of the topic. It has

been collected from journals, magazines, text books and online resources. Primary

Data has been collected through a questionnaire.

3.3.2 Research Design

The research is descriptive in nature. It is based on survey technique.

3.3.3 Sampling Technique

Respondents were selected randomly. They have been categorized in three categories:

18- 24, 25- 34 and 35 or above. Data has been collected from various age groups so

that view of general public could be obtained.

3.3.4 Sampling Unit

The sampling unit consists of graduate students of different departments of Aligarh

Muslim University, Aligarh. The Faculty of Management Studies and Research, Zakir

Hussain College of Engineering, Faculty of Arts and Faculty of commerce were

visited collecting data.

3.3.5 Sample Size

The questionnaires were distributed to 150 people. But since few of the targeted

respondents did not respond, total responses received were 127.

3.3.5 Research Instrument

A questionnaire has been used to see the effect of celebrity on consumer purchasing

decisions. It also helps in generating the view of respondents regarding the few

celebrities which are used for certain products. To assess the ratings for particular

celebrities, categorical scale has been used. The responses of the respondents were

recorded as per following scale- Excellent, Good, Average, Poor and Unsure.

48

Steps in Data Collection

3.4 Managerial Implications

The study will have certain managerial implications such as:

1. The study will be useful to scholars, executives and managers interested in the

area of celebrity endorsement and advertising.

2. It highlights the perception of the targeted respondents towards the celebrities

used for various products.

3. It may provide an insight to the studied brands regarding the perception of

viewers.

4. The study may prove helpful to the organizations who are planning to choose

a celebrity for their brands or products.

49

Literature Review/ Secondary Data Analysis

Sampling and Questionnaire Adaptation

Collection of questionnaires

Distribution of questionnaires

Compilation and Computation of responses

3.5 Limitations

1. The response could not be obtained from all the respondents targeted.

2. Some respondents were not forthcoming and were reluctant in giving

responses.

3. Paucity of time to conduct the study is another limitation.

4. The study has been conducted in one city. So the findings cannot be

generalized.

50

Chapter Four

DATA ANALYSIS

This chapter deals with the analysis of the responses collected by means of questionnaire. The

analysis been done on the basis of age and gender. Mean values of the respondents are

calculated.

1. What are the most motivating factors when you plan to buy mobiles or cars?

Table 1

Discounts and

offers Fewer prices

Latest models and

trends Total

Age 18-24 28 11 74 113

25-34 4 2 7 13

Total 32 13 81 126

Table 1 show 28 respondents belonging to age group 18- 24 consider discounts and offers as

motivating factors where as latest models and trends motivates an average of 74 respondents

from the same age group. 7 respondents of age group 25- 34 agree with latest models and

trends as a motivating factor to purchase mobiles or cars.

If we have a look at the results gender wise, 47 males are motivated by latest models and

trends to buy the product and only 11 males are motivated by fewer prices. 2 females are

motivated by fewer prices whereas majority, that 34 females are motivated by latest trends

and models.

Table 2

Discount and

offers Fewer prices

Latest models and

trends Total

Gender Male 17 11 47 75

Female 15 2 34 51

Total 32 13 81 126

51

Table 3 shows that 10.2 percent of respondents are motivated by fewer prices whereas 63.8

percent of respondents are motivated by latest models and trends. Discount and offers are able

to motivate around 25 percent of the respondents.

Table 3

Motivating Factors Frequency Percent

Discount and offers 32 25.2

Fewer prices 13 10.2

Latest models and trends 81 63.8

Total 127 100.0

2. Do you believe products specifically advertised by the celebrities are of good quality?

Table 4

Yes No 50% Not sure Total

Age 18-24 11 38 55 9 113

25-34 3 6 2 2 13

Total 14 44 57 11 126

Table 4 shows 11 males in age group 18- 24 believe that products advertised by the celebrities

are of good quality, whereas 38 in same age group do not believe the same.

Table 5

Yes No 50% Not sure Total

Gender Male 9 27 31 8 75

Female 5 17 26 3 51

Total 14 44 57 11 126

17 females say the products promoted by celebrities do not have good quality, whereas, 26

females believe that the product is only 50% consists of good quality. 27 males believe that

the products promoted by celebrities are of not good quality and only 9 males believe reverse.

Table 6 shows a larger view of the responses. It shows that 11 percent of total respondents

believe that the products endorsed by the celebrities are of good quality, whereas 34.6% of

52

respondents consider such products below quality. 44.9% of respondents say 50% they have

good quality and rest of the respondents that is 8.7 % are not sure.

Table 6

Responses Frequency Percent

Yes 14 11.0

No 44 34.6

50% 57 44.9

Not sure 11 8.7

Total 126 99.2

Chart 1

3. What is the most persuading factor to purchase the following products?

a) Motor VehicleTable 7

brand name Celebrity Luxury Self esteem Total

Age 18-24 59 8 25 21 113

25-34 8 2 0 3 13

Total 67 10 25 24 126

59 respondents of age group 18- 24 consider brand name as the most persuading factor to

purchase the motor vehicle. 25 and 21 respondents believe it is the luxury and self- esteem

53

respectively which act as most persuading factor to buy motor vehicle. 8 respondents in age

group 25- 34 believe it’s the brand name which persuades them, whereas only 2 consider

celebrity as the persuading factor to purchase motor vehicle.

Table 8

brand name Celebrity Luxury Self esteem Total

Gender Male 38 6 14 17 75

Female 29 4 11 7 51

Total 67 10 25 24 126

Table 8 shows 38 male respondents believe brand name acts a persuading factor to purchase

motor vehicle, whereas only 6 male consider it’s the celebrity who is endorsing the product.

Table 9

Dimensions Frequency Percent

Brand Name 67 52.8

Celebrity 10 7.9

Luxury 25 19.7

Self Esteem 24 18.9

Total 126 99.2

Table 9 shows only 19.7% and 5.8% of the respondents consider luxury and brand name

respectively, as the most persuading factor to purchase a motor vehicle.

Chart 2

54

b) Clothing

Table 10

brand name Celebrity status cost Total

Age 18-24 59 8 25 21 113

25-34 8 3 0 2 13

Total 67 11 25 23 126

According to 59 respondents in the age group 18- 24 consider brand name is the most

persuading factor while purchasing the clothing. Table 10 shows none of the respondents in

age group 25- 34 none agree to that status is the persuading factor to purchase clothing.

Table 11

brand name celebrity status cost Total

Gender Male 46 6 13 10 75

Female 21 5 12 13 51

Total 67 11 25 23 126

Table 11 exhibits that only 10 males think that cost is a persuading factor to purchase

clothing, whereas 46 males think it the brand name which persuades them to purchase

clothing.

Table 12 shows around 52% of the total respondents believe brand name is the most

persuading factor to buy clothing, whereas, only 8.7 % of total respondents consider celebrity

as the most persuading factor to purchase clothing.

Table 12

Dimensions Frequency Percent

brand name 67 52.8

celebrity 11 8.7

status 25 19.7

cost 23 18.1

Total 126 99.2

55

Chart 3

c) Food Products

Table 13

celebrity

attractive

package quality brand name Total

Age 18-24 10 7 87 9 113

25-34 1 1 10 1 13

Total 11 8 97 10 126

The above results show that 87 respondents of age group 18-24 believes quality is the most

persuading factor to purchase the food products, whereas only 7 respondents consider

attractive packaging as the most persuading factor.

Table 14

celebrity

attractive

package quality brand name Total

Gender Male 8 4 57 6 75

Female 3 4 40 4 51

Total 11 8 97 10 126

56

Table 14 shows 57 male respondents consider quality as the most persuading factor to buy

food products. 40 females consider quality as the most persuading factor to purchase food

products whereas; only 3 females consider that celebrity persuades them to purchase food

products.

Table 15 shows around 76% of total respondents consider quality as the most persuading

factor to purchase food products. Only 6% of the respondents believe attractive packaging is

the reason.

Table 15

Dimensions Frequency Percent

Celebrity 11 8.7

Attractive Package 8 6.3

Quality 97 76.4

Brand name 10 7.9

Total 126 99.2

Chart 4

57

4. Companies are investing large amounts of money for using celebrities; do you think

its helping them to increase their total revenue?

Table 16

Yes No Don't know Total

Age 18-24 78 21 14 113

25-34 10 1 2 13

Total 88 22 16 126

According to 78 respondents of age group 18-24, companies investing large amount of money

for celebrity endorsement are benefitted by increase in total revenue. 10 respondents of age

group 25-34 believes that celebrity endorsement do help in increase in total revenue of the

organization, whereas 1 respondent don’t believe that. Table 17 shows 54 males say yes when

asked if they believe that celebrity endorsement help in increasing revenue of organization,

whereas 15 say no. 34 females say yes to the same question whereas, 7 females say no.

Table 17

Yes No Don't know Total

Gender Male 54 15 6 75

Female 34 7 10 51

Total 88 22 16 126

Table 18

Dimensions Frequency Percent

Yes 88 69.3

No 22 17.3

Don't know 16 12.6

Total 126 99.2

In table 18, around 69% of the total respondents do believe that organizations are benefitted

by celebrity endorsement, whereas, around 17% say no the same thing.

58

Chart 5

5. Does the presence of mega star like Shah Rukh Khan, Amitabh Bachchan or

Aishwarya Rai in an advertisement encourage you to purchase the product or service?

Table 19

Yes No Not sure Total

Age 18-24 36 57 20 113

25-34 3 8 2 13

Total 39 65 22 126

Table 19 shows that 36 respondents falling in age group 18- 24 believe that mega stars like

Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them

to purchase the product or service, whereas 57 do not believe this. The age group 25- 34 has

only 3 respondents considering these mega stars in an advertisement encouraging to purchase

the product or service, while 2 are not sure.

Table 20

Yes No Not sure Total

Gender Male 26 36 13 75

Female 13 29 9 51

Total 39 65 22 126

59

26 male respondents believe mega stars like Shah Rukh Khan, Amitabh Bachchan or

Aishwarya Rai in an advertisement encourage them to purchase the product or service, while

36 males say no to it. 13 females are also encouraged by the same.

Table 21 shows around 30% of total respondents say they are encouraged by presence of

mega stars in advertisement to purchase a product or service, while 51.6% of total

respondents say they are not encouraged by presence of mega stars in advertisements.

Table 21

Dimensions Frequency Percent

Yes 39 30.7

No 65 51.2

Not sure 22 17.3

Total 126 99.2

Chart 6

6. Do you believe the celebrities also use those products which they themselves endorse?

Table 22

Yes No Not sure Total

Age 18-24 19 69 24 112

25-34 0 10 2 13

Total 19 79 26 125

60

19 respondents falling in age group 18- 24 believe that celebrities also use those products

which they themselves endorse, while 69 respondents from same age group do not believe

this. In age group 25- 34, there are no respondents who would believe that celebrities also use

those products which they themselves endorse, but have 10 respondents who believe

celebrities also use those products which they themselves endorse.

Table 23

Yes No Not sure Total

Gender Male 12 47 14 74

Female 7 32 12 51

12 male respondents and 7 female respondents believe celebrities also use those products

which they themselves endorse whereas 47 male and 32 female respondents do not believe

the same.

Table 24

Dimensions Frequency Percent

Yes 19 15.0

No 79 62.2

Not sure 26 20.5

Total 125 98.4

Table 24 shows only 15% of the total respondents believe that celebrities also use those

products which they themselves endorse, while around 62% of the total respondents do not

agree with them.

Chart 7

61

7. What type of celebrity endorsement persuades you personally to purchase products?

Table 25

Age group Film star

Famous

personalities Cricketer Politician

18-24 39 54 14 4

25-34 4 7 1 0

Total 43 61 15 4

Table 25 shows 39 respondents in age group 18- 24 are persuaded by films stars to purchase a

products, while 54 says famous personalities persuade them only 14 say they are persuaded

by cricketers. In other age group, only 1 respondent is persuaded by cricketer, 7 are persuaded

by famous personalities whereas none is persuaded by politician.

Table 26 shows 21 males and 22 female respondents are persuaded by film stars to buy

products, whereas 36 males and 25 females are persuaded by personalities. Cricketers are able

to persuade 12 males and only 3 females, whereas politicians persuade only 3 males and 1

female respondent.

Table 26

Film star

Famous

personalities Cricketer Politician Total

Gender Male 21 36 12 3 73

Female 22 25 3 1 51

Total 43 61 15 4 124

Table 27

Dimensions Frequency Percent

Film star 43 33.9

Famous personalities 61 48.0

Cricketer 15 11.8

Politician 4 3.1

Total 124 97.6

62

Table 27 shows 33.9% of total respondents are persuaded by film stars to purchase products,

whereas, only 3.1% of total respondents are persuaded by politicians.

8. Please rate the following celebrities as a brand endorser:

a) Aishwarya Rai for L’Oreal

Table 28

Dimensions Frequency Percent

Excellent 7 5.5

Good 24 18.9

Average 59 46.5

Poor 35 27.6

Total 126 99.2

Table 28 shows only 5.5% of the total respondents rate Aishwarya Rai an excellent brand

endorser, 46.7% consider her an average brand endorser, while 27.6% rate her as a poor brand

endorser.

b) Hrithik Roshan for Coca Cola and Hero Honda Karizma

Table 29

Dimensions Frequency Percent

Excellent 7 5.5

Good 20 15.7

Average 58 45.7

Poor 38 29.9

Total 126 99.2

Table 29 shows only 5.5% of the total respondents consider Hrithik Roshan for Coca Cola

and Hero Honda Karizma as an excellent brand endorser. 15.7% consider him as a good brand

endorser, whereas 45.7% consider him an average brand endorser.

63

c) Sushmita Sen for Olay Creams

Table 30

Dimensions Frequency Percent

Excellent 5 3.9

Good 27 21.3

Average 49 38.6

Poor 42 33.1

Total 125 98.4

There are 21.3% of total respondents who rate Sushmita Sen for Olay Creams as good brand

endorser. 38.6% rate her as an average brand endorser whereas only 3.9% rate her as

excellent brand endorser.

d) Juhi Chawla for Kukure

Table 31

Dimensions Frequency Percent

Excellent 12 9.4

Good 17 13.4

Average 62 48.8

Poor 32 25.2

Total 126 99.2

Table 31 shows that Juhi Chawla is considered as an average brand endorser for Kurkure by

48% of total respondents whereas only 9.4% of the total respondents consider as an excellent

brand endorser for Kurkure. 13.4% and 25.2% of the total respondents believe she is good

and poor brand endorser respectively.

e) Amitabh Bachchan for Cadbury choclates

Table 32

Dimensions Frequency Percent

Excellent 9 7.1

Good 19 15.0

Average 52 40.9

Poor 38 29.9

Total 125 98.4

64

Table 32 shows 29.9% of the total respondents consider Amitabh Bachchan as poor brand

endorser for Cadbury choclates whereas only 7.1% consider him as an excellent brand

endorser for the same.

f) Shah Rukh Khan for Airtel and Pepsi

Table 33

Dimensions Frequency Percent

Excellent 2 1.6

Good 10 7.9

Average 57 44.9

Poor 56 44.1

Total 126 99.2

The above table indicates that equal percent of respondents consider Shah Rukh Khan as an

average and poor brand endorser for Airtel and Pepsi. Only 1.6% of the total respondents

consider him as excellent brand endorser, whereas 7.9% of total respondents consider him as

good for the same.

g) Saif Ali Khan for Lays and Chevrolet

Table 34

Dimensions Frequency Percent

Excellent 5 3.9

Good 32 25.2

Average 43 33.9

Poor 44 34.6

Total 126 99.2

In table 34, Saif Ali Khan comes out to be average brand endorser for Lays and Chevrolet as

said by 33.9% of total respondents, whereas only 3.9% of total respondents consider him to

be an excellent brand endorser for the same.

h) Amir Khan for Tata Sky and Samsung

65

Table 35

Dimensions Frequency Percent

Excellent 2 1.6

Good 15 11.8

Average 47 37.0

Poor 61 48.0

Total 126 99.2

11.8% of the total respondents believe that Amir Khan is a good brand endorser for Tata Sky

and Samsung, whereas 37% of the total respondents consider him as an average brand

endorser for the same brands.

i) Katrina Kaif for Slice

Table 36

Dimensions Frequency Percent

Excellent 15 11.8

Good 16 12.6

Average 39 30.7

Poor 51 40.2

Total 125 98.4

The above table shows that 30.7% of the respondents consider Katrina Kaif as an average

brand endorser for Slice, whereas 11.8% of the respondents say she is an excellent brand

endorser. 12.6% of total respondents believe she is a good brand endorser for Slice.

j) John Abraham for Garnier and Castrol

Table 37

Dimensions Frequency Percent

Excellent 10 7.9

Good 27 21.3

Average 55 43.3

Poor 30 23.6

Total 126 99.2

66

43.3% of the total respondents say that John Abraham is an average brand endorser for

Garnier and Castrol, whereas 21.3% of total respondents consider him good. 7.9% of the total

respondents believe that he is an excellent brand endorser for these two brands.

Table 38 and chart 8 below shows the mean scores of the respondents while rating the

celebrities for various brand.

Table 38

Celebrities N Mean

Aishwarya_L'Oreal 126 2.95

Hrithik_Coke_Karizma 126 2.96

Sushmita_Olay 125 2.99

Juhi_Kurkure 126 2.86

Amitabh_Cadbury 125 2.84

Shahrukh_Airtel_Pepsi 126 3.31

Saif_Lays_Chevrolet 126 2.97

Amir_TataSky_Samsung 126 3.31

Katrina_Slice 125 2.94

John_Garnier_Castrol 126 2.77

Chart 8

Aishwary

a_L'O

real

Hrithik_

Coke_K

arizm

a

Sush

mita_O

lay

Juhi_Kurku

re

Amitabh_C

adbury

Shah

rukh

_Airt

el_Pep

si

Saif_

Lays_C

hevro

let

Amir_Ta

taSky

_Sam

sung

Katrina_

Slice

John_Garn

ier_C

astro

l2.50

2.60

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

Series1

9. What do you value the most when you purchase a product?

67

Table 39

Price of the

product

Celebrity

Endorsement

Quality of the

product

Value for

money

Gender Male 10 1 49 15 75

Female 5 2 36 8 51

Total 15 3 85 23 126

Table 39 indicates that 10 males say they value the price of the product the most when they

purchase a product, while only one male say its celebrity endorsement which they value. 36

females consider price of the product which they value the most, whereas only 2 females

think they value celebrity endorsement.

Table 40

Dimensions Frequency Percent

Price of the product 15 11.8

Celebrity Endorsement 3 2.4

Quality of the product 85 66.9

Value for money 23 18.1

Total 126 99.2

Table 40 shows 11.8% of respondents value price of the product whereas only 2.4% of the

respondents value celebrities when they purchase a product. The quality of product is valued

by 66.9% of the respondents.

68

Chart 9

10. Does celebrity endorsement help in brand promotion?

Table 41

Yes No Not sure

Gender Male 63 7 4 74

Female 37 11 3 51

Total 100 18 7 125

Table 41 shows 63 males say celebrity endorsement help in brand promotion while 7 males

say it does not help. 37 females say celebrity endorsement help in brand promotion.

Table 42

Dimensions Frequency Percent

Yes 100 78.7

No 18 14.2

Not sure 7 5.5

Total 125 98.4

According to table 2, 78.7% of total respondents consider that celebrity endorsement assist in

brand promotion, whereas 14.2% of the total respondents feel its not so.

69

Chart 10

11. Does it affect company if celebrity’s image defer?

The table below shows 49 males and 34 females say that if celebrity’s image defer, the

company gets affected, whereas 18 males say that company is not affected if celebrity’s

image defers.

Table 43

Yes No Not sure Total

Gender Male 49 18 8 75

Female 34 4 13 51

Total 83 22 21 126

Table 44

Dimensions Frequency Percent

Yes 83 65.4

No 22 17.3

Not sure 21 16.5

Total 126 99.2

70

In table 44, 65.4% of the total respondents believe that company gets affected if celebrity’s

image defers whereas 17.3% of the total respondents believe the company is not affected if

celebrity’s image defers. 16.5% of the total respondents are not sure of their responses.

Chart 11

12. What means of advertisements persuades you the most to purchase a product?

Table 45

Television Radio Newspaper Magazines Internet

Gender Male 51 3 5 5 10 74

Female 39 0 2 2 8 51

Total 90 3 7 7 18 125

Table 45 shows 51 male and 39 female respondents television is the means of advertisements

which persuades them the most. Only 3 male respondents believe its radio which persuade

them the most.

71

Table 46

Dimensions Frequency Percent

Television 90 70.9

Radio 3 2.4

Newspaper 7 5.5

Magazines 7 5.5

Internet 18 14.2

Total 125 98.4

Table 46 shows 70.9% of total respondents believe television is the means of advertisements

which persuades them the most. 14.2% of the total respondents are most persuaded by

internet, whereas only 5.5% of the total respondents by newspapers and magazines.

Chart 12

13. What do you think is the reason for the companies to choose celebrity endorsement

for promoting their products?

The table below shows 33 males and 16 females believe that the reason for the companies to

choose celebrity endorsement for promoting their products is easy recognition, whereas, 4

males and 4 females think it is so because the companies cannot think of any new idea.

72

Table 47

Easy

recognition of

product

Can't generate

new ideas

To be able to

increase sales

and profit

To compete

strongly

Gender Male 33 4 29 9 75

Female 16 4 14 17 51

Total 49 8 43 26 126

Table 48

Dimensions Frequency Percent

Easy recognition of product 49 38.6

Can't generate new ideas 8 6.3

To be able to increase sales and profit 43 33.9

To compete strongly 26 20.5

Total 126 99.2

The above table shows 38.6% of total respondents believe that companies choose celebrity

endorsement because they feel the customers will easy recognize the product, whereas 33.9%

of total population says it is so, so that companies may able to increase their sales and profits.

Chart 13

73

Chapter Five

CONCLUSIONS

On the basis of analysis, the conclusions have been drawn in this chapter. The

conclusions are discussed below on the basis of age, on the basis of gender and also

on the basis of the ratings given to the celebrity endorser as given by the respondents.

This is brief discussion of directions for future study as well in latter part of this

chapter.

5.1 The conclusions are as follows:

5.1.1 On the basis of Age

1. 28 respondents belonging to age group 18- 24 consider discounts and offers as

motivating factors where as latest models and trends motivates an average of

74 respondents from the same age group. 7 respondents of age group 25- 34

agree with latest models and trends as a motivating factor to purchase mobiles

or cars.

2. 11 respondents in age group 18- 24 believe that products advertised by the

celebrities are of good quality, whereas 38 in same age group do not believe

the same.

3. 59 respondents of age group 18- 24 consider brand name as the most

persuading factor to purchase the motor vehicle. 25 and 21 respondents

believe it is the luxury and self- esteem respectively which act as most

persuading factor to buy motor vehicle. 8 respondents in age group 25- 34

believe it’s the brand name which persuades them, whereas only 2 consider

celebrity as the persuading factor to purchase motor vehicle.

4. According to 59 respondents in the age group 18- 24 consider brand name is

the most persuading factor while purchasing the clothing. Table 10 shows

none of the respondents in age group 25- 34 none agree to that status is the

persuading factor to purchase clothing.

74

5. 87 respondents of age group 18-24 believes quality is the most persuading

factor to purchase the food products, whereas only 7 respondents consider

attractive packaging as the most persuading factor.

6. 78 respondents of age group 18-24, companies investing large amount of

money for celebrity endorsement are benefitted by increase in total revenue.

10 respondents of age group 25-34 believes that celebrity endorsement do help

in increase in total revenue of the organization, whereas 1 respondent don’t

believe that

7. 36 respondents falling in age group 18- 24 believe that mega stars like Shah

Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement

encourage them to purchase the product or service, whereas 57 do not believe

this. The age group 25- 34 has only 3 respondents considering these mega

stars in an advertisement encouraging to purchase the product or service, while

2 are not sure.

8. 19 respondents falling in age group 18- 24 believe that celebrities also use

those products which they themselves endorse, while 69 respondents from

same age group do not believe this. In age group 25- 34, there are no

respondents who would believe that celebrities also use those products which

they themselves endorse, but have 10 respondents who believe celebrities also

use those products which they themselves endorse.

9. 39 respondents in age group 18- 24 are persuaded by films stars to purchase a

products, while 54 says famous personalities persuade them only 14 say they

are persuaded by cricketers. In other age group, only 1 respondent is

persuaded by cricketer, 7 are persuaded by famous personalities whereas none

is persuaded by politician.

5.1.2 On the basis of Gender

1. 47 males are motivated by latest models and trends to buy the product and

only 11 males are motivated by fewer prices. 2 females are motivated by fewer

prices whereas majority, that 34 females are motivated by latest trends and

models.

2. 17 females say the products promoted by celebrities do not have good quality,

whereas, 26 females believe that the product is only 50% consists of good

75

quality. 27 males believe that the products promoted by celebrities are of not

good quality and only 9 males believe reverse.

3. 38 male respondents believe brand name acts a persuading factor to purchase

motor vehicle, whereas only 6 male consider it’s the celebrity who is

endorsing the product.

4. 10 males think that cost is a persuading factor to purchase clothing, whereas

46 males think it the brand name which persuades them to purchase clothing.

5. 57 male respondents consider quality as the most persuading factor to buy

food products. 40 females consider quality as the most persuading factor to

purchase food products whereas, only 3 females consider that celebrity

persuades them to purchase food products.

6. 54 males say yes when asked if they believe that celebrity endorsement help in

increasing revenue of organization, whereas 15 say no. 34 females say yes to

the same question whereas, 7 females say no.

7. 26 male respondents believe mega stars like Shah Rukh Khan, Amitabh

Bachchan or Aishwarya Rai in an advertisement encourage them to purchase

the product or service, while 36 males say no to it. 13 females are also

encouraged by the same.

8. 12 male respondents and 7 female respondents believe celebrities also use

those products which they themselves endorse whereas 47 male and 32

female respondents do not believe the same

9. 21 males and 22 female respondents are persuaded by film stars to buy

products, whereas 36 males and 25 females are persuaded by personalities.

Cricketers are able to persuade 12 males and only 3 females, whereas

politicians persuade only 3 males and 1 female respondent.

10. 10 males say they value the price of the product the most when they purchase

a product, while only one male say its celebrity endorsement which they value.

36 females consider price of the product which they value the most, whereas

only 2 females think they value celebrity endorsement.

11. 63 males say celebrity endorsement help in brand promotion while 7 males say

it does not help. 37 females say celebrity endorsement help in brand

promotion.

76

12. 49 males and 34 females say that if celebrity’s image defer, the company gets

affected, whereas 18 males say that company is not affected if celebrity’s

image defers.

13. 51 male and 39 female respondents television is the means of advertisements

which persuades them the most. Only 3 male respondents believe its radio

which persuade them the most.

14. 33 males and 16 females believe that the reason for the companies to choose

celebrity endorsement for promoting their products is easy recognition,

whereas, 4 males and 4 females think it is so because the companies cannot

think of any new idea.

5.1.3 On the basis of Ratings given to Celebrity Endorsers

1. 5.5% of the total respondents rate Aishwarya Rai an excellent brand endorser,

46.7% consider her an average brand endorser, while 27.6% rate her as a poor

brand endorser.

2. 5.5% of the total respondents consider Hrithik Roshan for Coca Cola and Hero

Honda Karizma as an excellent brand endorser. 15.7% consider him as a good

brand endorser, whereas 45.7% consider him an average brand endorser.

3. 21.3% of total respondents who rate Sushmita Sen for Olay Creams as good

brand endorser. 38.6% rate her as an average brand endorser whereas only

3.9% rate her as excellent brand endorser.

4. Juhi Chawla is considered as an average brand endorser for Kurkure by 48%

of total respondents whereas only 9.4% of the total respondents consider as an

excellent brand endorser for Kurkure. 13.4% and 25.2% of the total

respondents believe she is good and poor brand endorser respetively.

5. 29.9% of the total respondents consider Amitabh Bachchan as poor brand

endorser for Cadbury choclates whereas only 7.1% consider him as an

excellent brand endorser for the same.

6. equal percent of respondents consider Shah Rukh Khan as an average and poor

brand endorser for Airtel and Pepsi. Only 1.6% of the total respondents

consider him as excellent brand endorser, whereas 7.9% of total respondents

consider him as good for the same.

77

7. Saif Ali Khan comes out to be average brand endorser for Lays and Chevrolet

as said by 33.9% of total respondents, whereas only 3.9% of total respondents

consider him to be an excellent brand endorser for the same.

8. 11.8% of the total respondents believe that Amir Khan is a good brand

endorser for Tata Sky and Samsung, whereas 37% of the total respondents

consider him as an average brand endorser for the same brands.

9. 30.7% of the respondents consider Katrina Kaif as an average brand endorser

for Slice, whereas 11.8% of the respondents say she is an excellent brand

endorser. 12.6% of total respondents believe she is a good brand endorser for

Slice.

10. 43.3% of the total respondents say that John Abraham is an average brand

endorser for Garnier and Castrol, whereas 21.3% of total respondents consider

him good. 7.9% of the total respondents believe that he is an excellent brand

endorser for these two brands.

5.2 DIRECTIONS FOR FUTURE STUDY

There can be many ways in which this study can be expanded in future. Some of the

ways could be listed as follows:

1. This study has been carried out in few departments of Aligarh Muslim

University. It could further incorporate more universities or colleges of

Aligarh.

2. The study could also be extended to a comparison of perception regarding

celebrity endorsement at Aligarh and other cities.

3. More respondents could be targeted in future which will help in increasing the

sample size.

4. Future studies can be carried out to compare the celebrities endorsing in India

and in foreign countries.

78

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80

QUESTIONNAIREDear respondents,This questionnaire carries data on which study will take place on the topic “Celebrity endorsement affecting consumer’s attitude toward the advertisement and purchase intension for a product”. Your view will be of immense value and through this I can find the change in attitude by seeing advertisement.

Name:_____________________________________________________________________

Gender:___________________ Age______________ Occupation______________________

1. What are the motivating factors when you plan to buy mobiles or cars?(a) Discounts and offers [ ] (b) Fewer prices [ ](c) Latest models and trends [ ] (d) Celebrity endorsing the product [ ]

2. Do you believe products specifically advertised by the celebrities are of good quality?Yes [ ] No [ ] 50% [ ] Not sure [ ]

3. What is the most persuading factor to purchase the following products?

(a) Motor vehicle?Brand Name [ ] Celebrity [ ] Luxury [ ] Self Esteem [ ]

(b) ClothingBrand Name [ ] Celebrity [ ] Status [ ] Cost [ ]

(c) Food ProductsCelebrity [ ] Attractive Package [ ]Quality [ ] Brand Name [ ]

4. Companies are investing large amounts of money for using celebrities; do you think its helping them to increase their total revenue?Yes [ ] No [ ] Don’t know [ ]

5. Does the presence of mega star like Shahrukh Khan, Amitabh Bacchan or Aishwariya Rai in an advertisement encourage you to purchase the product or service?Yes [ ] No [ ] Not sure [ ]

6. Do you believe the celebrities also use those products which they themselves endorse?Yes [ ] No [ ] Not sure [ ]

7. What type of celebrity endorsement persuades you personally to purchase products? Film star [ ] Famous personalities [ ]Cricketer [ ] Politician [ ]

8. Please rate the following celebrities as a brand endorser:-(a) Aishwariya Rai for L’OrealExcellent [ ] Good [ ] Average [ ]Poor [ ] Can’t [ ]

(b) Hritik Roshan for coca cola and hero honda karizma Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

81

(c) Sushmita Sen for Olay creams Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(d) Juhi Chawla for Kurkure-Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(e) Amitabh Bachan for Cadbury chocolates-Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(f) Shah Rukh Khan for Airtel and PepsiExcellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(g) Saif Ali Khan for Lays and Chevrolet Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(h) Aamir Khan for Tata Sky and SamsungExcellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(i) Katrina Kaif for slice Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

(j) John Abraham for Garnier and Castrol Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]

9. What do you value the most when purchasing a product?Price of the product [ ] Celebrity endorsement [ ]Quality of the product [ ] Value for money [ ]

10. Does celebrity endorsement help in brand promotion?Yes [ ] No [ ] Not sure [ ]

11. Does it affect company if celebrity’s image defer?Yes [ ] No [ ] Not sure [ ]

12. What means of advertisements persuades you the most to purchase a product?Television [ ] Radio [ ] Newspaper [ ]Magazines [ ] Internet [ ]

13. What do you think is the reason for the companies to choose celebrity endorsement for promoting their products?Easy recognition of product [ ] Can’t generate new ideas [ ]to be able to increase sales and profit[ ] to compete strongly [ ]

82