MBA (2021-2022)

MARKET RESEARCH
Report on:

IMPACT OF CELEBRITY
ENDORSEMENT ON
CONSUMER BUYING
BEHAVIOUR
By:

KRISHNA KULKARNI MBA21E20

VINAY DEVMORE MBA21F13
MEGHA BIRADAR MBA21F23
ASHLESH PATIL MBA21F26
ABSTRACT:
The practice of celebrity endorsements has proliferated over time. Nowadays it has become a
pervasive element of the advertising industry, especially in India. The celebrity endorsement
business has become a multi-million industry in India. Marketers use celebrity endorsers to
influence the purchase decision of consumers in order to increase their sales and extend their
market shares. This made the author curious to explore the impact of celebrity endorsements
on consumer buying behavior.
This paper focuses on examining the perception of Indian consumers about celebrity
endorsements, examining the celebrity attributes likely to influence consumer purchase
intentions, and finally the impact of celebrity endorsements on their purchase intention.
This project begins with the review of existing literature available on celebrity endorsements,
which provides an insight into the research topic and clarifies many important aspects related
to the subject. A quantitative method is used for this research project to investigate the
perceptions of the consumer, attributes, and their subsequent impact on purchase intention. The
data is collected through a questionnaire and later analyzed using the data analysis software
program SPSS.
INTRODUCTION
Everyday consumers are exposed to thousands of voices and images in magazines, newspapers
and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction
of a person‘s time to inform him or her of the amazing and different attributes of the product
at hand. The challenge of the marketer is to find a hook that will hold the subject‘s attention.
In helping to achieve this, use of celebrity endorsers is a widely used marketing strategy.
In this modern age, people tend to ignore all commercials and advertisements while flipping
through the magazines and newspapers or viewing TV. But even then, the glamour of a
celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact
on the overall brand is of great significance. In this process, the companies hire celebrities from
a particular field to feature in its advertisement campaigns. The promotional features and
images of the product are matched with the celebrity image, which tends to persuade a
consumer to fix up his choice from a variety of brands.
Every product has an image. The consumer tries to consume a brand which has the maximum
fit with his/her own personality/image. The celebrity endorser fits in between these two
interactions, where he tries to bring the image of the product closer to the expectation of the
consumer, by transferring some of the cultural meanings residing in his image to the product.
In the report, We have focused on the impact of celebrity endorsement on the overall process
of brand building and also tried to define: how to make celebrity endorsement a win-win
situation for both the brand and the brand-endorser. ―Brand‖ is the most valuable asset of any
firm.
Today celebrity endorsement is being seen more and more as an integral part in an integrated
marketing communication strategy. Hamish and Pringle (2004) suggest 3 macro factors present
in the market today that in principal justifies the validity of celebrity endorsement as a
promotional strategy. The first factors the increasing opportunity for interactivity between
brands and their consumers. Second is the ―era of consent‖ situation present today where
consumers have more control over the messages they receive. And lastly is the increasing
media
OBJECTIVES
• To understand consumer perception of the celebrities in advertisements.
• To understand the effectiveness of celebrity endorsement.
• To identify drawbacks associated with celebrity endorsement.
• To arrive at a meaningful conclusion of study
CELEBRITY ENDORSEMENT AS A STRATEGY
Marketers believe that star endorsements have several benefits, key among them being building
credibility, fostering trust and drawing attention or any or all of which can translate into higher
brand sales.
Most experts concur that, when used judiciously, celebrity endorsements can be an effective
strategy. According to Mohammed Khan, Chairman of Enterprise Nexus, ―Using a celebrity
by itself is not a bad idea provided it is done intelligently.‖ And there are many examples of
good and bad use of celebrities.
there are some who don‘t have much conviction in star endorsements. Adrian Mendonza,
Executive VP and Creative Director of Rediffusion DY&R does not recommend celebrity
endorsements because he thinks 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

EFFECT OF CELEBRITY BRANDING ON CONSUMERS

It is a known fact that the best endorsements achieve an effective balance between the product
(brand) and the celebrity. Giving a brand a 'face' is more than just a marketing strategy to
increase sales or gain market share, it is a decision that can change the future of the brand
forever.
In today's highly competitive markets, big brands are at logger-heads when it comes to
products, each having a similar product to that of a rival. Where does one brand gain that
competitive advantage - advertising, service, or promise of trust. Advertising seems to be the
best platform where brands prefer to compete on - right from hiring the best advertising
agencies to getting the biggest celebrities
The importance of a celebrity-brand match and the various roles played by them as brand
associates show the momentum this strategy has gained in the last decade or so.India is a
country where people are star-struck by film stars, cricketers, politicians, and even criminals
As the celebrities traverse from a mere commercial presence to public welfare message
endorsements, a whole new dimension is added to this process and helps us in achieving
aholistic view of the impact which celebrities generate in every sphere and segment through
their well-versed endorsements.
Unfortunately, this is how most celebrities are being used in Indian advertising, where they just
become a prop. Ideally, there should be an idea that makes the celebrity relevant to the product
and the consumer. A celebrity's presence in the ad should be contextual.
It is also important to view the consumer in their social and cultural setting to further see how
celebrity endorsements increase sales and impact brands over time. Celebrities usually form a
very good example of a reference group appeal. This is particularly beneficial to a marketer
and a brand who can cash in on the success of the star and, hence, push his brand.
CELEBRITY ENDORSEMENT: FACTORS INVOLVED
There are several factors to consider before resorting to celebrity endorsement. There is no
single formula to win in the world of marketing. A company must analyze the prospect of
endorsement from 360 degrees, prior to product promotion.

Price vs. Profit

The most important issue is that of return on investment (ROI). Companies need to perform a
cost-benefit analysis prior to endorsement. The process of gauging the effectiveness of
endorsement on the overall brand is but difficult. The companies expect to bring, in the long
run, future sales, revenues and profit from the present investments on celebrity endorsement.
Celebrity endorsement is an expensive means of brand promotion and the price burden almost
always shifts on to the consumers; if not, then it narrows the companies‘ profit.

Multiple Brand Endorsement vs. Multiple Celebrity Endorsement

In the advertising landscape, we find either a celebrity endorsing multiple brands or multiple
celebrities being used to endorse a single brand. Sachin Tendulkar, for example, in 2002
endorsed 12 brands (including Pepsi, Boost, Colgate Total, Gillette, Britannia Tiger, Fiat Palio,
TVS Victor, Fiat Sienna, MRF, Adidas, Visa Cards and Home Trade). Tripp et al, says that the
endorsement of as many as four products negatively influences the celebrity spokesperson‘s
credibility and likeability.

Factors Impacting a Brand while being viewed by a Consumer in Media

The model above shows the various factors that affect a celebrity endorsed brand while viewed
by a consumer in the media (both TV and print). The central idea being the impact on brand.
The three major parts to a brand being shown are: -
• The Product
• Advertisement
• The celebrity endorsing it
It is important is to study the relationship between these factors and how they together act for
or against the brand.

Selection Of Celebrity
Anyone who is famous may be the right celebrity. However, the appropriateness of the
celebrity largely depends on the product or service. Most advertisers insist that their celebrity
spokespeople have charisma and current popularity. That is why we see more movie and
television stars, athletes, real-life heroes, and musicians acting as brand ambassadors in the
market.
DATA ANALYSIS
Frequencies:

The questionnaires were distributed to 100 respondents.52% responses were collected from
female respondents,48% responses from male respondents. The sample size was sufficient for
the study of this research from different perspectives

Out of 100 respondents 26 respondents were between 15-20, 37 respondents were below 21-
25, 28 respondents were between 26-30 and 9respondents were above 30. The questionnaires
were distributed to people with heterogeneous ages which are considerably reliable for the
study
FREQUENCIES OF QUESTIONS

Q. Do you get attracted to buy a product/brand endorsed by a celebrity?

The table shows that 12% of respondents were Strongly Disagree, 27% were Disagree, 8%
were Neutral, 31% were Agree and the remaining 22% were Strongly Agree. So, here the result
cannot be concluded.

Q. Do you think that ads having celebrities are more effective than those which don't?
The table shows that 11% of respondents were Strongly Disagree, 19% were Disagree, 14%
were Neutral, 31% were Agree and remaining 20% were Strongly Agree. Here mostly
respondents agreeing with the statement.
Q. Would you switch from you regular products to a new product endorsed by your favorite
actor/actress?
The table shows that 11% of respondents were Strongly disagree, 28% were Disagree, 25%
were Neutral, 13% were Agree and remaining 23% were Strongly Agree. Here respondents
with disagree opinion are higher in number.

Q. Are the claims made in advertisements having celebrities believable?

The pie chart shows that 10% of respondents were Strongly disagree, 34% were Disagree, 27%
were Neutral, 17% were Agre and remaining 12% were Strongly Agree. Here respondents with
disagree opinion are higher in number.
Q. I think that "negative publicity" about a celebrity endorser can influence my decision of
buying a brand?
The pie chart shows that 10% of respondents were Strongly disagree, 34% were Disagree, 27%
were Neutral, 17% were Agree and remaining 12% were Strongly Agree. Here respondents
with disagree opinion are higher in number.

Q. I will stop buying a brand if my favorite celebrity endorsing it gets involved in scandal
The pie chart shows that 16% of respondents were Strongly disagree, 29% were Disagree, 27%
were Neutral, 23% were Agree and remaining 5% were Strongly Agree.
Q. I buy a product just because the celebrities are using it.
The pie chart shows that 24% of respondents were Strongly disagree, 22% were Disagree, 22%
were Neutral, 20% were Agree and remaining 12% were Strongly Agree. Here respondents
with disagree opinion are higher in number. And on second the respondents were neutral.

Q. I think celebrity endorsement is an important factor when I make my decision.

The pie chart shows that 20% of respondents were Strongly disagree, 25% were Disagree, 23%
were Neutral, 18% were Agree and remaining 14% were Strongly Agree. Here respondents
with disagree opinion are higher in number. And on second the respondents were neutral.
Q. I would buy a brand if my favorite celebrity is endorsing it.
The pie chart shows that 19% of respondents were Strongly disagree, 20% were Disagree, 21%
were Neutral, 30% were Agree and remaining 10% were Strongly Agree. Here respondents
with agree opinion are higher in number.

RELIABILITY:
Scale: All Variables
CORRELATION:

REGRESSION:
CONCLUSION AND RECOMMENDATION:
People don't believe such ads because celebrities these days are endorsing any product as long
as it pays a lot. People tend to lose faith in such products and in the long run the actor. The
popularity and the credibility of the actors play a very importante in convincing people. Since
actors these days endorse a lot of products people are losing their faith in them. Even though
the impact of celebrity endorsements focus on business growth, the brands without celebrities
and popular personalities have been equally received by the customers. The attractive
advertising campaign and product tag lines andcaptions have a major influence on the
customers to avail these products. Despite dependence on celebrity endorsements, fewbrands
have embedded their image on consumers' psyche as the most consistent source.
The customers buy the products on the basis of the product's quality and the consistency of the
quality.So, what the marketers need to do is, find a way that is more suitable. Have
advertisements that are meaningful from the point of view of the consumers and do not add to
the cost of the product. Because the celebrities endorse more than oneproduct, brand recall for
people becomes difficult for the consumers.But, we can see that celebrity advertising is not
going to go away any time soon but the impact on the buying behavior ofpeople because of it
is reducing considerably.Taking a lesson from the above-mentioned brands, marketers can also
have normal people, who do not belong to theglamour industry, in their advertisements. The
marketers need to make ads that are more believable and use celebrities in theirads more
carefully and after a lot of thought