Term Paper Celebrity Based Television Advertising_Understanding Indian Consumer Attitudes

8/7/2019 Term Paper Celebrity Based Television Advertising_Understanding Indian Consumer Attitudes

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Celebrity Based Television Advertising

Understanding Indian Consumer Attitudes

Megha Gupta

(27019)

Shilpa J

(27074)

Northern Institute of Integrated Learning and Management Centre for

Management Studies

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ABSTRACT

The main purpose of this study is to explore the attitude o f Indian consumers towards celebrity endorsements in

television advertising. The study was based on the empirical research approach, using a convenience sample of 100

respondents in the NCR region. The data was analyzed using various statistical tools like Frequency analysis,

Descriptive analysis, and One Sample t test and One Way ANOVA. The main findings showed that Indian

consumers were interested in celebrity endorsements in advertising and found it attractive, though it did not affect

their brand choice behavior. The study suggested that the portrayal of celebrities be reconsidered in the Indian

context. Further, there was no significant difference in consumers brand choice behavior due to CBTA, which is

affected by gender, though it is affected by income. The study suggested that further research be conducted to

explore this issue.

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INTRODUCTION

Because of the complexity of consumer buying behavior, and its variability across cultures, it is

virtually difficult to identify advertising approaches that can be universally effective. Yet, it isnoticeable that the portrayal of celebrities in television advertising is significantly increasing and

becoming more important in the advertising strategy of most business firms across the world. In

India, in particular, marketers continue to adopt this universal trend in their advertising strategy.

Many people aspire to share values and lifestyles of celebrities as models of success. Often, they

seek to imitate, emulate, and even impersonate celebrities' behavior to enhance their self-esteem,

through identification with certain desirable images.

Such behavior includes imitating the way celebrities speak, dress, communicate, and most

importantly, the brands they choose. This process says more about what people hope to become

than it does about what they already are. It reflects the power of celebrity endorsement, which is

behind the main reason for employing celebrities to promote almost all kinds of products (Frazer

and Brown1, 2002). This power is viewed in three aspects: attention - which breaks through the

advertising clutter and makes the endorsed brand more noticeable to target audience; credibility

- which conveys a sense of trust for endorsed brands; and persuasion - which sends a persuasive

message to target audience to adopt the endorsed brand.

But, it is not clear how Indian customers respond to this type of advertising. Specifically, there is

no evidence, so far, to suggest that it certainly affects their brand choice behavior. Indeed, this is

the primary concern of the current research, which investigates consumer attitudes towards

celebrity endorsement in television advertising (CBTA) in India, focusing on the following

dimensions:

1) Attractiveness of CBTA

2) The effect of CBTA on consumers' brand choice behavior

3) The importance of celebrity-product march up

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RESEARCH OBJECTIVE

The objective of this research is to explore the Indian consumers attitudes towards celebrity

based television advertising (CBTA) to understand how consumers respond to celebrityendorsement in television commercials. The study seeks to examine the influence of CBTA on

consumers brand choice behavior and also whether consumer attitudes towards CBTA with

respect to brand choice behavior vary with demographic variables (sex and income).

In particular, the study seeks to answer the following questions:

1. How attractive is CBTA to the Indian consumer?

2. What is the effect of CBTA on consumers' brand choice behavior?

3. How important is the celebrity-product march up?4. Do consumer attitudes towards CBTA, with respect to brand-choice behavior, vary by

demographic variables (sex and income)?

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LITERATURE REVIEW

The celebrity concept

In todays dynamic and highly competitive business environment, customers are becoming more

demanding. Their expectations are continuously rising, with marketers continuing their efforts to

meet them. In their creative advertising efforts, marketers turn to celebrity endorsement to

influence consumer brand choice behaviour. A celebrity is a well known personality who enjoys

public recognition by a large share of a certain group of people. Celebrities (example models,

actors, artists and sports athletes) are known to the public for their accomplishments in areas

other than product class endorsed (Friedman and Friedman2, 1979). They usually enjoy high

public recognition, and often have powerful influence upon endorsing products. They appear on

television as spokespersons on behalf of the advertised brand, or ordinary users of such brand. In

either way they often deliver a convincing message. They help increase the awareness of

advertised brands and create positive feelings towards them. Eventually, this will positively

affect consumers brand choice behaviour.

Indian Context

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.

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

arch rival 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.

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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 'Rin' 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".

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. In case 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 Hindu Business Line3, 2003).

Endorser attributes

Research has shown that effective celebrities must be assessed against 5 essential attributes,

usually referred to as TEARS model:

1. Trustworthiness: Honesty, integrity and believability of an endorser. It reflects the extent

to which audience members trust and believe what celebrities say regarding the

advertised brand.

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2. Expertise: knowledge, experience, skills of an endorser regarding the advertised brand.

For example, a sport athlete is considered to be an expert when he/she endorses sport

related products.

3. Attractiveness: all characteristics that make an endorser attractive to audience members

(example, physical looks, personality properties, attractive lifestyle etc).

4. Respect: refers to the quality of being admired or esteemed due to endorsers overall

accomplishments.

5. Similarity: represents the extent to which an endorser matches target audience on

characteristics related to the endorsement relationship (sex, age, lifestyle etc)

The TEARS model describes the essential qualities of celebrities that are important in

determining their effectiveness in endorsement. But this does not say much about the selection

criteria used by marketers and advertising makers.

Many studies described the positive effects of celebrities onconsumer buying behavior, such as

the adoption of clothing styles, product choice, and health behaviors. Research evidence revealed

that the perceived image of celebrity endorsers had a positive impact on product buying behavior

(Goldsmith, Lafferty, and Newell4, 2000; Mathur, Mathur, and Rangan5, 1997). One study

showed that female respondents in the U.S.A. were more responsive to celebrity endorsement

(20%) than male respondents (16%). Frazer and Brown examined how audience members

identified with celebrities, and how this affected their personal lives. They concluded that people

selectively integrated the perceived values and behaviors they saw in celebrities they admired

and adopted them into their own lives (Frazer and Brown1

, 2002). One study stressed theadvantage of celebrity endorsement in enhancing product recognition and recall. The study

maintained that consumers were likely to take more notice of celebrity advertisements and

improve their level of product recall (Bowman6, 2002).

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On the downside, many studies were critical about the use of celebrity endorsement. One study

examined the potential risks of overshadowing endorsed products. The study explored the

common concern that consumers would focus their attention on the celebrity and fail to note the

endorsed brand itself (Erdogan, Baker, and Tagg7, 2001).One study examined the potential risks

of overshadowing endorsed products. The study explored the common concern that consumers

would focus their attention on the celebrity and fail to note the endorsed brand itself (Erdogan,

Baker, and Tagg7, 2001).Several other studies criticized the credibility of celebrity endorsement

(Shanahan8, 2001). One specialist put it this way "A product pitched by a celebrity is a tale told

by an idiot (Feuer9, 2002).

Clearly, the issue of celebrity endorsement in advertising has received a significant attention in

the literature, particularly from a western perspective. As revealed in the literature review above,many studies showed an overwhelming support of the use of celebrity endorsement in

advertising, while some studies were cautious as they expressed some concerns. Obviously, the

literature did not show consistence among research findings on this issue. At least, partly, this

can be justified by cultural differences as well as variations in the measuring instruments used.

Theoretically, at least, the universal role of CBTA is mainly to elicit consumers' attention and

ultimately persuade them to buy endorsed products. In deed, one may enjoy the attractive appeal

of advertisements, which feature models and other types of celebrities, but not necessarily make

the purchase or switch his/her loyalty upon endorsement. Despite the universal trend of using

celebrities in advertisements, however, the literature showed little reflection of how these

advertisements were perceived by consumers across cultures.

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METHODOLOGY

Research Hypotheses

The current study draws on the literature and explores CBTA from the perspective of the Indian

consumer, focusing on different aspects. Based on the nature of the current research problem,

given the findings indicated in the literature, the following hypotheses are formulated:

H1: Indian consumers are likely to consider CBTA as an attractive advertising

H2: CBTA is likely to have a positive influence on consumers brand choice behavior

H3: Indian consumers are likely to believe that the celebrity-product match up is important

H4: There are no significant differences in consumers' brand-choice behavior ( 0.5), which is

influenced by CBTA, due to demographic characteristics (sex and income).

Sampling Procedures

The questionnaire was completed using a convenience sample of students and salaried

employees at two locations, a college campus and an office respectively. A total of 120

questionnaires were distributed and collected. The usable sample was 100 respondents after the

process of data editing and cleaning. Accordingly the response rate was 83%. The sample

included 74% (74) men and 26% (26) women. The monthly income of the respondents was

reported in 3 brackets: less than Rs.15000, Rs.15000-Rs.30000 and more than Rs.30000. 50% of

the respondents fell in the I income bracket, while 28% fell in the II income bracket while 22%

were in the III income bracket.

Research Instrument

The questionnaire included three main sections relevant to the dimensions of the study. The first

section was intended to measure consumer attitudes towards the attractiveness of CBTA

(Dimension 1). The second section was designed to assess the influence of CBTA on consumers'

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brand choice behavior (Dimension 2). The third section was prepared to measure consumer

attitudes towards the celebrity-product match up (Dimension 3). The questionnaire also

contained questions on the demographic characteristics of respondents (sex and income).

Annexure A shows the three sections with the relevant statements which measure each

dimension.

A five-point Likert scale was used for measurement. The scale consisted of five levels of

agreement, running from strongly disagree up to strongly agree (l=strongly disagree, 2-disagree,

3=neutral, 4-agree and, 5=strongly agree). The measurement logic was based on the fact that the

higher the attitude mean score the more favorable the attitude, and vice versa.

The questionnaire was validated (Sami Alsmadi13, 2006) through a pilot study. The reliability of

the measuring instrument was evaluated by Cronbach Alpha analysis. The test output of

reliability analysis revealed a correlation value of (= 0.84).

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DATA ANALYSIS AND RESULTS DISCUSSION

The findings of the study are tabulated in the Tables (1 to 5). The tables show descriptive

analysis, the mean and standard deviation scores for statements in each dimension. The z-values

for each dimension as a whole are also given. The test value was taken as 3, which is the scale

mid point (of the Likert scale). The fourth hypothesis was evaluated using Independent Samples

z test and ANOVA.

Dimension 1: Attraction of CBTA

The Null and Alternate hypotheses for this dimension are given as:

H0: = 3

H1: 3

The mean score for the Dimension as a whole was 3.24 which is higher than the test value of 3.

This seems to indicate that the consumers find CBTA as an attractive form of advertising. The Z

value had been calculated as 2.134. The p value was 0.016 which is less than the critical value

( = 0.05). Hence the null hypothesis is rejected and the alternate hypothesis is accepted. These

findings support the hypothesis that Indian consumers are likely to consider CBTA as an

attractive advertising.

Descriptive analysis, agreement levels and z values of attitude statements for Dimension 1

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Dimension 2: Influence of CBTA on brand choice behavior

The Null and Alternate hypotheses for this dimension are given as:

H0: = 3

H1: 3

The Z value for this dimension was calculated as 1.50. The p value came out as 0.07 which is

higher than = 0.05. Hence the null hypothesis is accepted which means that CBTA is not

likely to have a positive influence on consumers brand choice behavior


Dimension 3: Celebrity Product Match-up

The Null and Alternate Hypotheses for this dimension are given as:

H0: = 3

H1: 3

For this dimension, the calculated Z value was 3.577 while the p value was 0.0002. This value is

less than = 0.05. Hence the Null hypothesis is rejected. This supports the statement that

consumers consider the celebrity-product match up to be important .

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Demographic Variables

The analysis in this section explores potential differences in consumers' brand choice behaviordue to their demographic variables: sex and income. The purpose of this analysis is to test the

fourth hypothesis of the study (H4), which stares that there are no significant differences in

consumers' brand-choice behavior, which is influenced by CBTA, due to demographic

characteristics (sex and income). Clearly, the analysis focuses on D2 as it measures the direct

effect of CBTA on brand choice behavior.

Sex

H0: D = 0

H1: D 0

The mean values and the standard deviation for males and females were calculated and tabulated.

To evaluate the fourth hypothesis, an independent samples Z test was used. This gave a p value

of 0.48 which falls in the acceptance region. Hence the null hypothesis is accepted. This implies

that there is no significant influence of CBTA on consumers brand choice behavior, which

is affected by gender.

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Income

To test the fourth hypothesis (H4), in terms of income, mean scores, standard deviations, and

analysis of variance (ANOVA) were used to evaluate differences in consumers brand choice

behavior among income brackets of respondents. The research findings, presented in the Table,

showed that there were significant differences in consumers brand choice behavior due to

income level, as the F-value was (10.03), which was is statistically significant. Therefore, we can

reject the null hypothesis. Clearly, the findings indicated that the influence of CBTA on

consumers brand choice behavior was not similar among the three income groups (low, middle,

and high income).

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CONCLUSION

Despite the conflicting results found in the literature on the use of celebrities in advertising, this

research revealed that Indian consumers were generally positive about many aspects of this

dynamic issue in advertising strategy. It is evident from the findings that Indian consumers were

impressed by the visual attractiveness of advertising messages, which used celebrities to appeal

to target audience. They also showed an interest in the relationship between celebrities and

endorsed products in an advertisement. They seemed to believe in the importance of the march-

up between the two. Yet, the majority did not seem to view this kind of advertising convincing

enough, in principle, to affect their brand choice behavior.

One possible explanation behind this phenomenon could he the way the advertising message was

designed. In particular, the way celebrities were portrayed was not, perhaps, convincing enough

to appeal to Indian consumers. One study, which clearly supported this conclusion, showed that

the advertising problem in Asia was not so much the celebrities, but the lack of imagination in

the way they were used (Bowman6, 2002). Alternatively, the choice of celebrities was not

possibly able to match up with consumers' expectations. In either way, this may, however,require a rethinking or reconsideration of the way celebrities were projected in advertising, or

even chosen, within the context of the Indian culture.

More research will have to be made to explore more specific issues of celebrity endorsement in

television advertising within the context of the Indian culture. For example, future research will

have to re-examine the credibility issue of celebrities from the customer's perspective andexplore how celebrities are positioned in the consumers' mind. Moreover, future research will

have to investigate the ideal characteristics that best march desirable celebrities, and

consequently make their endorsement more convincing to the Indian consumer

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Research Limitation

1. In the literature review, the previous studies that specifically addressed the issue of CBTA

were all western-based. In India, in particular, no previous studies were found on this specific

issue. Even on the general issue of television advertising, only few studies were found.

2. The empirical work was based on a small sample due to limited resources. Obviously, this

means that the results cannot be generalized to the whole population.

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BIBLIOGRAPHY

1. Frazer, Benson P. and Brown, William J. (2002), Media, Celebrities, and Social

Influence: Identification with Elvis Presley, Mass Communication & Society, 5(2), PP.

183.206.

2. Friedman, Hershev and Friedman, Linda (1979), Endorser Effectiveness by Product

Type. Journal of Advertising Research 19 (October/November), PP. 63-71

3. The Hindu Business Line

4. Goldsmith, R. E., Lafferty, b. A., and Newell, s. J. (2000), The Impact of Corporate

Credibility and Cc1ebri Credibility on Consumer Reaction to Advertisements id Brands,

Journal of Advertising. 29, 43.54.

5. Mathur, L K., Mathur, I., and Rangan, . (1997), The Wealth Effects Associated with a

Celebrity Endorser: The Michael Jordan Phenomenon, Journal of Advertising Research.

33. PP. 66-73.c

6. Bowman, Jo (2002), Facing Advertising Reality, Media Asia, Vol. 7, Issue 26, PP. 14-

15.

7. Erdogan, B. Z., Baker, M. J. and Tagg, S. (2001), Selecting Celebrity Endorsers: The

practitioner's Perspective, Journal of Advertising Research, Vol. 41, Issue 3, PP. 39-48.c

8. Shanahan, Laura (2001), Designated Shopper, Brandweek, Vol. 42, Issue 28, P. 50.

9. Feuer, Jack (2002), Falling Stars, Adweek Easter Edition, Vol.43, Issue 41, P.9

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APPENDIX

Attractiveness of Celebrity Based Television Advertising Questionnaire

Name: Phone Number:

Age: Below 25 - 25-35 - 35-45 - Above45 -

Gender: Female - Male -

Income: Below 15000 - 15000-30000 - Above 30000 -

Given below are a set of questions that examines your perception about attractiveness of

television advertising that has celebrities.

Please read the questions carefully and tick your choices in appropriate places. Do notleave any field empty.

All information entered here will only be used for the purpose of evaluating opinions about

the effect of celebrity endorsements. Personal information will not be disclosed and the

purpose of this study is purely academic.

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ATTRACTIVENESS OF CELEBRITY BASED TELEVISION ADVERTISING

Please indicate your level of agreement with each of the following statements using the scale

below:

Level of Agreement Scale:

1 Strongly Disagree, 2 Disagree, 3 Neutral, 4 Agree, 5 Strongly agree

Dimension 1: Attractiveness of CBTA

Question Level Of

Agreement

1 2 3 4 5

Television Advertising, which uses celebrities, attracts me

Television Advertising, which uses celebrities, is popular

Television Advertising, which uses celebrities, is more attractive

Television Advertising, which uses celebrities, is enjoyable

Attractive celebrities in television advertising, make me pay more

attention to product details

Dimension 2: influence of CBTA on consumers brand choice behaviour

Question Level Of

Agreement

1 2 3 4 5

CBTA helps me make my buying decision

CBTA helps me remember the endorsed brand during shopping

CBTA increases acceptance of endorsed brands

CBTA increases my awareness of endorsed brands

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Dimension 3: Celebrity Product Match up

Question Level Of

Agreement

1 2 3 4 5

The character of a celebrity influences the image of the endorsed brand

The more meaningful the match up between the celebrity and the

endorsed brand, the greater the trust in the brand

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Term Paper Celebrity Based Television Advertising_Understanding Indian Consumer Attitudes

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