IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOR

SUBMITTED IN FULFILLMENT OF THE REQUIREMENT OF MASTERS OF COMMERCE TO HEMWATI NANDAN BAHUGUNA GARHWAL UNIVERSITY, GARHWAL

MAY 2013

Submitted by: ANSHU GUPTA MCOM IV Semester ROLL NO.81603523

Submitted to: DAV (PG) COLLEGE, DEHRADUN.

DECLARATION
I, Anshu Gupta, hereby declare that the project work entitled IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOR submitted to DAV(PG) COLLEGE , is an empirical work under the guidance of Dr. Rakesh Verma Head of Department, Department of Commerce , DAV(PG) College, Dehradun, and this project is sunmitted in the partial fulfillment of the requirenments for the award of the degree of Masters of Commerce. This report is not submitted to any other Institute or University for the award or Diploma of Personnel management & labour welfare.

ANSHU GUPTA Roll No-81603523

ACKNOWLEDGEMENT
This Project report has been made possible through the direct & in direct cooperation of various people whom I wish to express my thanks and gratitude. My deepest gratitude to my research guide Dr. RAKESH VERMA, Head Of Department, Department of Commerce, DAV(PG) College, Dehradun, for his guidance, monitoring and constant encouragement throughout the course of this project. I am also obliged to all those persons who supported me all through my project. My interaction with all these people has left a long lasting impression in my mind that will influence my project and my behaviour for all times to come. Finally, with blessings of my parents, they are the source of strength and inspiration for me in this endeavor.

ANSHU GUPTA

TABLE OF CONTENTS

1. Introduction 2. Literature Review and Theoretical Background 3. Objective of the study 4. Hypothesis 5. Research Design and Sampling Design 6. Data Analysis 7. Findings & Conclusion 8. Suggestion & Limitations 9. Appendix and Reference

INTRODUCTION
1.1 Background Research Today Celebrity Endorsements is a billion dollar industry today with companies signing deals with celebrities aiming to stand out from the clutter and give them a distinctive and significant position in the mind of consumers. Across the world, celebrities have been used for a variety of brands. India has opened its markets only recently and its witnessing an era of competition that it never experienced before. In todays very volatile economy, an increasing number of markets are signified by overcrowding of markets with products and speedy entry and exit of products into the marketplace. As a result of such overcrowding, it is a challenge for firms releasing their products, to capture consumer attention where consumers are being flooded with information from firms about their brand popularity and product features. Friedman & Friedman suggest that a celebrity endorser is someone known to the public for their achievements in areas other than of the product class endorsed. Undoubtedly, the celebrity endorser could reinforce a companys marketing communications, positioning and represent its brand. However, the main purpose of using celebrity endorser is to influence consumer behavior, especially purchase intention that is directly linked to revenue of the company. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g. athletes, actors) in the hope that celebrities may boost effectiveness of their marketing for at least a century. One of the early examples is Queen Victorias endorsement of Cadburys Cocoa. Regardless of these hindrances, celebrity endorsed advertising is an important marketing tool which when used at the correct time, may prove to be far more rewarding.

1.2 Research Motivation and Research Question Since India consumers have always idolized celluloid stars and looked up to them, hence it makes great logic to use celebrities as spokespersons and influence consumers purchase decision. As the market has now become very competitive and with so many celebrities endorsing various brands and some also involving in multiple product endorsements, it makes for a great research study to understand the Indian consumer behavior and purchase decision, through the influence of these celebrity endorsements. Keeping this in mind the purpose of this project is to understand the impact of celebrity endorsement on the Indian consumers purchase decision. Also focusing on how consumers perceive the difference between endorsements with celebrities and non celebrities. It also aims at discussing the extent to which the masses are influenced by these popular celebrities appearing on screen to influence their purchase decisions.

1.3 Research Methodology Our research will focus on investigation the impact of celebrity endorsement on the consumers purchase decision. In doing this we aim to follow a qualitative research method style. The research subjects would comprise of businessmen, government employee students, retailers, housewives from the different age group.

1.4 Meaning of celebrity endorsement Celebrity branding can take several different forms, from a celebrity simply appearing in advertisements for a product, service or charity, to a celebrity attending PR events, creating his or her own line of products or services, and/or using his or her name as a brand. The most popular forms of celebrity brand lines

are for clothing and fragrances. Many singers, models and film stars now have at least one licensed product or service which bears their name. Lately there has been a trend towards celebrity voice-overs in advertising. Some celebrities have distinct voices which are recognizable even when they not present on-screen. This is a more subtle way to add celebrity branding to a product or service. An example of such an advertising campaign is Sean Connery voice-over for Level 3 Communications. The use of a celebrity or sports professional can have a huge impact on a brand. For example, sales of Nike golf apparel and footwear doubled after Tiger Woods was signed up on a sponsorship deal. More recently, advertisers have begun attempting to quantify and qualify the use of celebrities in their marketing campaigns by evaluating their awareness, appeal, and relevance to a brand's image and the celebrity's influence on consumer buying behavior. For example, Omnicom agency Davie Brown Entertainment has created an independent index for brand marketers and advertising agencies that determine a celebritys ability to influence brand affinity and consumer purchase intent. According to the Wall Street Journal, the Davie-Brown Index (DBI) will "enable advertisers and ad-agency personnel to determine if a particular public figure will motivate consumers who see them in an ad to purchase the product advertised." Celebrity branding is a global phenomenon and it assumes paramount importance in countries like India where celebrities are given the status of Gods by the masses. There is a certain correlation between successful celebrity branding and brand endorsements.

With the increased visibility of social networking celebrities are being created in new mediums daily. People often use the internet as a resource to follow celebrity branding trends. A number of brands get in contact with celebrities to endorse their products by contacting the celebrity agent direct.

1.5The Benefits of Celebrity Endorsements Build brand equity - Prior to Michael Jordan, Nike primarily sponsored tennis and track athletes. Nike wanted expand into new markets. Who better to sign than one the most electrifying young athletes in sports? The Nike-Jordan partnership has blossomed into its own multibillion dollar subsidiary company, Air Jordan. Help people remember ads - Celebrity endorsements can improve ad recall, according to researchers Jagdish Aggrawal and Wagner Kamakura. When people would see or hear Dennis Haysbert on the show 24, they associate his voice with Allstate. Make people believe the product contributes to superstar status Motor One uses NASCAR superstar Tony Stewart to endorse its brand, which leads consumers to believe that Motor One oil contributes greatly to the performance of his carand his success. Stand out. Research from Charles Atkin and Martin Block suggests that celebrities may help advertising stand out from the surrounding clutter.

People like watching George Clooney or Natalie Portman more than local dentists and attorneys. . 1.6 Selecting a Celebrity for a Brand Brands are important company assets. Advertisers need to select celebrities who represent the image and promise of their brands. (For more information on brand promises, read Fogdogs article series on branding.) Not all celebrities fit with all brands. For example, at the height of Sex and the City, Sarah Jessica Parker signed on as a face of Gap. However, Parker was so closely associated with her shows haute couture style that the association didnt resonate with consumers. In 2005, Gap replaced her with Joss Stone and Keith Urban, who are more likely to wear Gapstyle clothing in the public eye. Since then, Gap has continued to use celebrities who align better with their brand, such as the Avett Brothersand Kaki King.

1.7 The Risks of Celebrity Endorsement Yet even if a celebrity is a good fit for the brand, using one for endorsements has its own set of possible risks:

Images change - Celebrities make mistakes. And when they do, they can affect the brands they endorse. In 2009, Tiger Woods public image crumbled after his infidelity with a number of women, including pornography actresses, hit the news. General Motors, Gillette, Accenture, and Gatorade dropped Tiger to avoid negative perception. Nike stuck around and lost customers. And the golf industry as a whole saw a major revenue slow-down with no Tiger on the course. Celebrities become overexposed - At the height of Tiger Woods popularity, he endorsed over ten companies at once. When a celebrity works with so many

companies, the celebritys credibility may suffer. People may feel that the celebrity will endorse anything to make a buck.

Celebrities can overshadow brands - Consumers may focus on the celebrity, not the product. This is a particular danger when celebrities endorse multiple products at a time. David Beckham endorses a number of companies, which feature him prominently in print advertising. However, his image as the focal point of advertising devalues many products

COMPANY PROFILE

The present study will be conducted on Hindustan Lever as this company provides a wide range of consumer products and advertises its products maximum through celebrities.

Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbor and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.

MISSION Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Ou r d e e p r o o t s i n l o c a l c u l t u r e s a n d ma r k e t s a r o u n d t h e wo r l d g i v e u s our strong

relationship with consumers and are the foundation for our future growth. We will b r i n g o u r w e a l t h o f k n o wl e d g e a n d i n t e r n a t i o n a l e x p e r t i s e to the service of local c o ns u me r s a truly mu l t i local

mu l t i n a t i o n a l .

BRAND HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Eighteen of HUL's brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2012). The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. Its brands include:

Food brands:

Annapurna salt and Atta Bru coffee Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea Kissan squashes, ketchups, juices and jams Lipton tea Knorr soups & meal makers and soupy noodles Kwality Wall's frozen dessert Modern Bread, ready to eat chapattis and other bakery items

Homecare Brands

ActiveWheel detergent Cif Cream Cleaner Comfort fabric softeners Domex disinfectant/toilet cleaner Rin detergents and bleach Sunlight detergent and color care Surf Excel detergent and gentle wash Vim dish wash Magic Water Saver

Personal Care Brands:

Aviance Beauty Solutions Axe deodorant and after shaving lotion and soap LEVER Ayush Therapy ayurvedic health care and personal care products Breeze beauty soap Clear anti-dandruff hair products Clinic Plus shampoo and oil Close Up toothpaste Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants

Denim shaving products Fair & Lovely skin-lightening products Hamam Lakm beauty products and salons Lifebuoy soaps and hand wash range Liril 2000 soap Lux soap, body wash and deodorant Pears soap Pepsodent toothpaste Pond's talcs and creams Rexona soap Sunsilk shampoo

Sure anti-perspirant Vaseline petroleum jelly, skin care lotions TRESemm

Water Purifier Brand:

Pureit Water Purifier

Leadership HUL has produced many business leaders for corporate India, including Harish Manwani, the non-executive chairman of HUL and currently the chief operating officer of Unilever. He is also a member of Unilever Leadership Executive team (ULE), which comprises the company's top management and is responsible for managing Unilever's profit and loss, and delivering growth across its regions, categories and functions. Nitin Paranjpe has been the managing director and chief executive officer of the company since April 2008. He is also Executive vicepresident, South Asia, Unilever and is also the executive head of the South Asia cluster for Unilever. HUL's leadership-building potential was recognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity. A study conducted by Aon Hewitt, The RBL Group and Fortune in 2011, ranked the company number six in the list of 'Top Companies for Leaders 2011 Study

Results'. The company was awarded the CII- Prize for Leadership in HR Excellence at the 2nd CII National HR Conclave 2011 held on October 2011.

Awards and recognition As per the latest Nielsen Campus Track-Business School Survey released in February 2013, Hindustan Unilever Limited has emerged as the No.1 employer of choice for B-School students who will graduate in 2013, across functions. HUL also retained the 'Dream Employer' status for the 4th year running and continues to be the top company considered for application by B-School student in India. In 2012, HUL was recognized as one of the world's most innovative companies by Forbes. With a ranking of number 6, it was the highest ranked FMCG Company. Hindustan Unilever Limited (HUL) won the first prize at FICCI Water Awards 2012 under the category of community initiatives by industry' for Gundar Basin Project, a water conservation initiative. Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media Awards organized by the Advertising Club Bombay in September 2012. The company bagged four awards at the Spikes Asia Awards 2012, held in September. The awards included one Grand Prix one Gold Award and two Silver Awards. HULs Chhindwara Unit won the National Safety Award for outstanding performance in Industrial Safety. These awards were instituted by the Union Ministry of Labour and Employment in 1965.

HUL was one of the eight Indian companies to be featured on the Forbes list of World's Most Reputed companies in 2007. In July 2012 Hindustan Unilever Limited won the Golden Peacock Occupational Health and Safety Award for 2012 in the FMCG category for its safety and health initiatives and continuous improvement on key metrics. Pond's Talcum Powder's packaging innovation has bagged a Silver Award at the prestigious 24th DuPont Global Packaging Award, in May 2012.The brand was recognized for cost and waste reduction. In May 2012, HUL & Star Bazaar bagged the silver award for 'Creating Consumer Value through Joint Promotional and Event Forecasting' at the 13th ECR Efficient Consumer Response Asia Pacific Conference. In 2011, HUL was named the most innovative company in India by Forbes and ranked 6th in the top 10 list of most innovative companies in the world. Hindustan Unilever Ltd received the National Award for Excellence in Corporate Governance 2011 of the Institute of Company Secretaries of India (ICSI) for excellence in corporate governance In 2012, Hindustan Unilever emerged as the No. 1 employer of choice for BSchool students who will graduate in 2012. In addition, HUL also retained the 'Dream Employer' status for the 3rd year running Hindustan Unilever ranked No. 2 in Fortune India's Most Admired Companies list, which was released by Fortune India in partnership with the Hay Group. The company received the highest scores for endurance and financial soundness

HUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research Advisory. Seven HUL brands also featured in the list: Lux, Ponds, Dove, Lakme, Axe, Sunsilk and Pepsodent HUL emerged as the top 'Dream Employer' as well as the top company considered for application in the annual B-School Survey conducted by Nielsen in November 2010. This was the second successive year that HUL has been rated as the top 'Dream Employer' in India HUL has also emerged as the top employer of choice among the top six Indian Institutes of Management (IIMA, B, C, L, K and I). HUL won three awards at the 'CNBC Awaaz Storyboard Consumer Awards in 2011 Most Recommended FMCG Company of the Year; Most Consumer Conscious Company of the Year and Digital Marketer of the Year The company was felicitated in April 2010 for receiving the highest number of patents in the year 2009 at Annual Intellectual Property Awards 2010. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Businessworld, one of India's leading business magazines. The rating was based on a compilation of the magazine's annual survey of India's most reputed companies over the past 25 years. HUL is one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India

Marketing Initiatives The company launched a multi-brand rural marketing initiative called Khushiyon Ki Doli, in 2010 in three states Uttar Pradesh, Andhra Pradesh and Maharashtra. Through this initiative more than 10 million consumers were contacted directly in more than 28,000 villages across these three states. Through this initiative, the company also reached out to 170,000 retailers in these villages. Through this initiative HUL engaged with 25 million rural consumers in media dark areas in 2011 In 2011, HUL extended this initiative to cover five states West Bengal, Bihar, Maharashtra, Andhra Pradesh and Uttar Pradesh, covering over fifty thousand villages across these five states. In 2012, Kushiyon Ki Doli has been extended to Karnataka to cover a total of six States: Maharashtra, UP, Bihar, West Bengal, Andhra Pradesh and Karnataka. The initiative aims to cover over Fifty five thousand villages in 2012. Various personal care and home care brands of HUL have participated in this initiative including: Wheel, Surf Excel, FAL, Sunsilk, Vim, Lifebuoy and Closeup. The module follows a three-step process, starting with awareness, moving on to consumer engagement and finally retail contact. The first step of spreading awareness is achieved through a team of promoters who head to each village and invite the villages to what is known as Mohallas to make them aware of the company and its products. In every village, there are about 45 teams that conduct

these events in local language for small focused groups so that it allows for greater engagement and involvement for the consumers. During this activity, brands are introduced with the help of TVCs that are played continuously. And the promoters by way of live demonstrations bring alive the hygiene benefits of using such brands and improving the quality of daily life. To increase the fun element and enhance involvement, promoters also conduct simple quizzes and games around the brands and daily hygiene habits. As part of this activation, the company offers schemes both for the participating consumers and also local retailers for generating trial among consumers as well enhancing availability at retail. Post the mohalla activity, the promotes go home to home and conduct consumer home visits to generate trial where they offer attractive promotions to the consumers. Similarly, there is another team which visits all the shops in the village which ensures improved availability and visibility of HUL brands. Technology has been used to highlight the benefits of HUL's brands in a simple and engaging manner. At the same time, traditional symbols have also been used to create more acceptance. For example, the brand films and hygiene messages are shown to the consumers through the use of Palki

LITERATURE REVIEW

This chapter introduces the concept of celebrity endorsement, providing a definition. Sequentially it talks about celebrity as spokesperson of companies and also draws out the positives and negatives of celebrity endorsements. Furthermore it also discusses the different models on effectiveness of celebrity endorsement strategy along with talking about the impact of multiple celebrity endorsement. Lastly it provides an Indian perspective on celebrity endorsement in India.

3.1 Introduction Definition

McCracken (1989) provides a clear definition describing celebrity endorser as any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (p.310). He further explained celebrity endorsement as a ubiquitous feature of modern marketing.

Friedman and Friedman (1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed. Celebrity endorsements are an omnipresent feature of present day marketing (Meenaghan and OMahony, 1998). The billions of dollars spent on celebrity endorsement contracts illustrates the importance celebrities play in the advertising

industry (Kambitsis et al., 2002). According to research conducted by Stephens and Rice (1998) in USA showed that celebrity endorsed advertising increased from 15% to 25% between 1979 and1997 for all advertising. The use of celebrities in advertisements is not a recent phenomenon (Kaikati, 1987). Celebrities have been endorsing products since the mid nineteenth century. For instance one of the early examples involves Queen Victoria associating with Cadbury Cocoa (Sherman, 1985). With the emergence of cinema and later

television more and more celebrities from different background were used commercially in television commercials and print advertisements. Agrawal and Kamakura (1995) cited that approximately 20% of all television commercials in USA feature famous people. Shimp (1997) further justifies Agrawal and Kamakura point, through his research findings that around 25% of all US-based commercials used celebrities. On the contrary from a UK perspective, a report in Marketing indicated that advertising which used celebrities was a key to gaining national headlines (Erdogan, 1999). Friedman and Friedman (1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed. These celebrities act as roles models for a large group of people in terms of their qualities such as trustworthiness, attractiveness and likeability. Marketers exploit these qualities in a celebrity to influence the consumers purchase decision, thus making the advertisement believable to the consumers. Erdogan (1999) cites that celebrities can be used to communicate and reinforce companies marketing communications and positioning effectively. Today, use of celebrities as part of marketing communications strategy is fairly common practice for major firms in supporting corporate and brand imagery (Erdogan, 1999). Firms are

drawing parallels with their products and themselves to celebrities in expectation that they will enhance their communications and increase revenue.

3.2 Celebrities as Spokespersons Companies frequently use spokespersons to deliver their advertising message and convince consumers of their brands. A widely used and very popular type of spokesperson is the celebrity endorser (Tom et al., 1992). According to Agrawal and Kamakura (1995) celebrities make the advertisements believable and enhance the message in the minds of the consumers. Furthermore, celebrities increase awareness of a companys advertising, creating a positive feeling towards the brand. Thus using a celebrity in a companys advertising is likely to have a positive impact on the consumers brand perception and purchase decision. One of the main reason behind the popularization of celebrity used in advertisements is the companys belief that the message when delivered by well-know personality will achieve a high degree of attention and recall (Ohanian, 1991). This only happens when there is an appropriate connection between the celebrity and the product endorsed or when the celebritys represents of some aspect of product endorsed. Todays modern corporation invests insignificant amounts of money to draw parallels between its products and a celebrity in the belief that it would help attract attention to the products/services endorsed and help transfer the image values of the products/services through the celebritys profile (Meenaghan and OMahony, 1998). For instance Venus Williams, tennis player had a signed a five year $40 million contract with sportswear manufactures Reebok International Inc. in 2003. Theory and practice prove that the use of super stars in advertising generates a lot

of publicity and attention from the public (Ohanian 1991). The essential question to be asked here is, if and how the interest of the consumers in these well-known celebrities can be effectively be used by companies to promote their brands and consequently increase revenues. Firms often build fancy pay package for celebrities attracting them to endorse for the firms products, for examples Michael Jordan, a retired basketball player, endorsed a range of products which include sports and non-sports products, earning more than $45 million by just endorsing for different brands, but one of his prime endorsements was for Nike, which earned him $20 million annually in 1992. But when Michael Jordan retired later in his career, Nike sales dipped by 4 percent (Walsh, 1999). This example clearly illustrates the power of celebrity endorsements and also explains why companies are ready to pay such huge amounts to get celebrities to endorse their products. Overall the use of celebrities as spokesperson in advertisements comprises of a significant investment in intangible assets by the sponsoring firm. An investment which the firm hopes to compensate with greater future sales revenue and profits in return (Agrawal and Kamakura 1995).

3.3 Positive and negative effects of celebrity endorsement Early researches have shown that about 20 percent of all television commercial use celebrity as their endorsers and increasing competition for seeking consumers attention has encouraged marketers to use attention- creating media stars to assist in product marketing (Erdogan, 1999). Marketers believe that using popular celebrity can effect consumers feeling and their purchase intention and also believe celebrity to influence consumers persuasion of the product according to the image

of it (Belch & Belch, 2001). Use of celebrity as endorsers may have a significant positive impact, increasing profits, on the contrary when associated with a celebrity whose credibility has been tarnished may hurt the company and its product. There are several benefits to having celebrities endorse products, one of the most common effects of using a celebrity endorser is it helps to maintain consumer attention. Research has indicated that customers are more likely to choose goods and services endorsed by celebrities than those without such endorsements (Agrawal & Kamakura, 1995) and celebrities help advertisements stand out from the surrounding clutter, thus improving better communicative ability in conveying the message to the consumers (Sherman, 1995). Although the potential benefits of utilising a celebrity endorser are considerable, so are the costs and risk associated with it. Agrawal and Kamakura (1995) in their research suggest that there are decreasing returns associated with celebrity advertisements. The cost incurred to get a celebrity onboard and associate him/her with the product and company are rising, the negative publicity generated by some celebrities, adds a possible risk of negative publicity generated towards the brand and company. Proving this point, researches shows that only a portion of consumers react positively after a negative publicity (Agrawal and Kamakura, 1995). Celebrity endorsement is big business and any marketers who choose to utilise a celebrity have no control over his/her future behaviour and reactions (Till and Shimp,1998). Therefore any negative publicity about the celebrity can reduce the appeal of the brand which the celebrity endorses. Marketers must find the celebrity who can best fit and represent the image of the product and its meaning (Belch & Belch, 2001). Celebrity, who is linked to positive information, has a greater possibility to reach to its target consumers. While on the other hand

celebrity with negative information, reduces the trustworthiness of the celebrity and its relationship with the brand. Michael Jordan and Nike is a very good example of a perfect brand- celebrity fit. Michael Jordon and Nikes trust between them was at such a high level that Nike developed a new brand called Air Jordon. With Michael Jordan's expertise and his trustworthiness with the larger audience, strengthened the brand celebrity fit (Belch & Belch, 2001). Celebrity endorsement contract are for a long term relationship, therefore because of this long term relationship the celebrity and the brand can affect the audience and have an impact on the consumers. For example Kate Moss and brand H&M, after Kate Moss was pictured taking drugs in Daily Mirror newspaper, a lot of brands she endorsed such as Chanel, H&M cancelled their campaigns and contracts with her (Shimp 2003). In order not to generate negative publicity towards the brand, from the behavior of the celebrity, companies pull back from the celebrity contracts and engage in reestablishing themselves. Another very prominent drawback of celebrity endorsements is the Vampire Effect or the celebrity overshadowing the brand (Kulkarni and Gaulkar, 2005). This happens when the audience forgets the brand advertised and concentrates more on the celebrity endorsing the brand. As Cooper (1984) states in his study, the product, not the celebrity, must be the star (pp.64 -65). Similarly another problem is celebrity greed and overexposure, when a celebrity becomes an endorser for many diverse products (Erdogan, 1999). Tripp et al. (1994) and Redenbach (2005) both investigated and suggested that when as many as four products are endorsed, celebrity credibility and likeability, as well as attitude towards the ad, may be taken carelessly.

In conclusion the good match with product and celebrity can make the advertising more believable, can improve the brand recognition, create a positive attitude towards the brand name and create a distinct personality for the brand (Agrawal & Kamakura 1997).

3.4 Models on Effectiveness of Celebrity Endorsement Strategy Temperley and Tangen (2006) in their research said that its a critically important decision for the marketers in the choice of celebrity they decide upon. As selecting celebrity endorsers is a difficult job, many scholars have made an effort to construct models to assist in the selection of celebrity endorsers. One of the earliest models was contributed by Hovland et al (1953), which is the Source Credibility Model. Consequently, the Source Attractiveness Model (McGuire, 1985), the Product Match- Up Hypothesis (Forkan, 1980; Kamins, 1989, 1990), and the Meaning Transfer model (McCracken, 1989) was put forward through observed researches in turn.

Source credibility Model and Source Attractiveness Model A central goal of advertising is the persuasion of customers, i.e., the active attempt to change or modify consumers attitude towards brands (Solomon 2002). In this respect, the credibility of an advertisement plays an important role in convincing the target audience of the attractiveness of the companys brand. Pursuing a celebrity endorsement strategy enables advertisers to project a credible image in terms of expertise, persuasiveness, trustworthiness, and objectiveness (Till and Shimp 1998).

Source credibility and source attractiveness reflect the study of source effect theory/source influence theory, which argues that various characteristics of a perceived communication source may have a positive impact on message receptivity (Kelman, 1961). Shimp (2003) found that credibility and attractiveness are the general features of celebrity endorsers effectiveness. Therefore to examine critically the impact of celebrity endorsers on the consumers purchase decision it is necessary that we discuss the source credibility model and the source attractiveness model.

3.4.1The source credibility model Source credibility suggests that the effectiveness of a message depends on the "expertness" and trustworthiness" of the source (Hovland, Janis, and Kelley, 1953). In general, a message source with higher credibility tends to be more effective than one with less credibility (Sternthal et al., 1978). Since higher levels of source credibility tend to be associated with more positive attitudes toward the message and lead to behavioural changes (Craig and McCann, 1978), advertisers will opt to use celebrities if they think that they have a high level of credibility. The basis of the model is that the effectiveness of the message depends on the consumers perceived level of expertise and trustworthiness of the celebrity endorser (Hovland et al., 1953). If a source is perceived to be credible, a consumer will probably accept the influence (information) as truthful and use it. It is accepted because it is demanded by ones own values (Kelman, 1961). Hence, an endorsement of a product by a credible source may influence the purchase behaviour (Daneshvary and Schwer, 2000). This psychological process is called internalisation, which occurs when receivers accept a source influence in terms of

their personal attitude and value structures (Erdogen, 1999). Companies have considered pursuing strategies of celebrity endorsement as advertisers seek to project a credible image in terms of expertise, persuasiveness, trustworthiness, and objectiveness (Till and Shimp 1998). According to Hovland et al. (1953), source credibility mainly categorises into expertise and trustworthiness. Expertise is defined by Hovland et al (1953) as the extent to which a communicator is perceived to be a source of valid assertions and refers to the knowledge, experience or skills possessed by an endorser. What is inte resting here is that it does not matter whether the endorser is an expert or not, what really matters is the viewers perceive them to be. Furthermore, expertise of a celebrity endorser should relate to the product he/she endorses (Till & Busler, 1998). Greater the success the celebrity gains, the more expert or credible he/she is perceived to become in his field. Friedman and Friedman (1979), using the internalization process said that consumers were more likely to purchase complex and expensive products which were endorsed by experts rather than by typical consumers. Meaning the public was more likely to buy products when the endorsers credibility is high, when compared to be low. In Daneshvary and Schwer (2000) article, they propose that Consumers are more prone to adopt behaviour by an association (group) if they identify with the group (identification). Besides, if they perceive the source (association) as credible and as an expert in the products which it endorses, consumers are likely to purchase the product (internationalization). Therefore, identification and internalisation

processes of social influence will affect behaviour change, resulting in increased purchases from endorsements by the association (Daneshvary and Schwer 2000).

Erdogen (1999) suggests that the use of the word trustworthiness in the celebrity endorsement literature refers to the honesty, integrity and believability of an endorser. Desphande and Stayman (1994) contributed to the study regarding the factors that influence the trustworthiness of celebrity endorser. They found that celebrity endorsers ethnic status would affect the trustworthiness, because people trust individuals who are seen as comparable to them. This study suggested that while selecting a celebrity endorser the ethnic background has to be considered, when the company targets a particular ethnic group. Erdogen (1999) findings in the source credibility state that factors which construct source credibility and other important factors in certain situation are still ambivalent. Conversely, the fact that high credible source do not always have more effect when compared low credible source, should me noticed. Sternthal et al. (1978) stated that the low credibility source may have stronger persuasibility than the higher one, when the audience is already inclined to a message.

3.4.2 The Source Attractiveness Model The source attractiveness model is a psychological research resulted from McGuire (1985) study. Source attractiveness model is more related to the physical attributes, such as similarity, familiarity and likeability. These are important initial judgement of another person at first instance (Ohanian, 1991). Advertisers have chosen celebrity endorsers on the basis of their physical attractiveness to gain from the dual effects of celebrity status and physical appeal (Singer, 1983), e.g. Carol Vordermans dual role as expert and attractive presenter of the benefits of Benecol. There is no doubt that attractive celebrity endorsers enhance attitudes towards advertising and brands, but whether they are able to create repeat purchase

intentions is less obvious (Byrne et al, 2003). Debevec et al (1986) suggested in their study, higher source attractiveness led to higher verbal and behavioural compliance, in order to examine the relationship between purchase intention and attractiveness. Kahle & Homer (1985) mentioned in his study that, purchase intention participants are easily influenced by an attractive celebrity endorser than unattractive celebrity endorser. Finding from Debevec and Kernan (1984) study showed that male consumers are more easily influenced by attractive female endorser than attractive male endorsers. Furthermore Baker and Churchill (1977) study found that unexpected interaction among female models, product type and intentions to purchase products among male subjects. For example when the product endorsed is a perfume; males reacted optimistically to an attractive female model. Research done by Joseph (1982) proves that attractive communicators are repeatedly liked more than unattractive ones and also have a positive impact on products with which they are associated. In short, it is evident that attractive celebrity endorsers enhance attitudes and recall towards advertising and brands than unattractive celebrity endorsers. Under the influence of halo effect that occurs when rank high on one dimension are assumed to be excellent on other dimensions, people tend to assume that good-looking people are smarter and more persuasive (Solomon, 2002). One of the best examples of source attractiveness model is tennis player Anna Kournikova (Shimp, 2003). According to Shimp (2003), who has never won any tennis tournament in her career, Kournikova was chosen to endorse various different brands only because of her attractiveness merely, and none so ever of her credibility in tennis. On the more contrary angle, Cooper et al., (1974) in their

study found out that a deviant-appearing person, in an income tax commercial proved to be more effective than an attractive person. Furthermore Maddux and Rogers (1980) found that explanation of arguments and expertise, influenced consumer attitude rating towards sleep while physical attractiveness did not.

3.4.3 Product Match-up Hypothesis Byrne et al. (2003) suggests that the problems many marketers facing is choosing the right type of celebrity to associated their product with. Marketers must match the product or companys image, to the features of the target market, and the personality of the celebrity, in order to establish effective messages and the determinant of the match between celebrity and brand depends on the degree of perceived fit between brand (brand name, attributes) and celebrity image (Misra, 1990). If at all there is no connection between a celebrity endorser and product; a celebrity and consumer, then it will only result in audiences remembering the celebrity, but not the product (Evans, 1998). As mention by Temperley and Tangen (2006) marketer can always match a celebrity with the desired image of a brand/product, but it will not be successful if the viewer does not perceive the fit correctly. Further added by Bertrand and Todd (1992), who stated if there is an appropriate tie-in between the companys product and the celebritys persona, reputation or the line of work that the celebrity is in, then the brand can get both the recognition and the tie-in working with them. Kahle and Homer (1985) in their analysis found that physical attractiveness of celebrity endorsers has a positive influence on consumers' brand attitudes, purchase decision, brand recall, and recall of advertisement arguments. Contrast to this

claim by Kahle and Homers, another analysis conducted by Till and Busler (1998) suggested that an endorsements featuring Kate Jackson for Lincoln Mercury proved to be ineffective, despite Kate Jackson having attractive looks. Till and Busler (1998) cited another instance where celebrity and the product are a perfect fit citing at Cindy Crawford endorsing for Revlon commercial. There research proved that not physical attractiveness, rather expertise is more important in affecting consumers. Citing an example of Zidane (a retired footballer player) endorsing football products, Shimps (2003) suggests that endorsers are most effective when strong and positive relation between endorsers and the target audience is achieved. Hence Zidanes fans, who is their idol of football, will go buy the products he endorser, especially the one in he endorses for football products.

3.4.4 Meaning Transfer Model McCrackens (1989) meaning transfer model is based on the effectiveness of the endorser depends on the meaning the celebrity is bringing into the endorsements process and the brand. Celebrities are full of different meaning reflecting such as demographic (age, gender) and lifestyle types, thus making it evident that celebrities convey not one but a variety of meaning. The cultural meanings that are connected with the celebrity will be transferred to the endorsed product/brand (Brierley, 1995). According to Erdogan (1999) the strengths of this model are that it considers celebrity status, class, gender, age, lifestyle and personality. An example of this is James Garners endorsement of Mazda- Garners qualities of maturity, maleness; confidence and good humour were made the qualities of

Mazda vehicle. When this clear association is consciously made, the meaning transfer acts as an amplifier to product signalling, this could overcome the information noise facing consumers and attract their attention (Mustafa, 2005). According to Martin (1996, p.29), celebrity spokespersons are useful in marketing because they provide a set of characteristics that supports consumers in evaluating the presented brand. The meaning transfer model (McCracken, 1989) introduced is an appropriate tool to describe the endorsement process that comprises of three stages including culture, endorsement and consumption. This model involves the creation of celebrity image, transfer of meaning from the celebrity to the brand and the third stage is how the brand transfers image onto the consumer (Schlecht, 2003).

Source: Meaning transfer in the endorsement process (McCracken 1989) According to McCracken (1989), in the first stage the celebrity draws meaning from their public persona (i.e.) the meaning associated with the famous person moves from the endorser to the product or brand. In the endorsement stage, this meaning is transferred from the endorser to the product and the process of creating a product personality takes place, based on the symbolic properties conveyed by the endorser. At last, in the consumption process, the brand s meaning is acquired

by the consumer. In this stage the consumers role in the endorsement process. These meanings are transferred to the consumer who identifies with those symbolic properties and the process of transfer of meanings from endorser to product/brand to consumer is complete (McCracken, 1989). Schlecht (2003) describes when determining the brands representative feature, consumers needs should be considered. Then the company decides how which celebrity to choose and who possesses the most appropriate similar characteristics in relation to the brand. Lastly there has to be equivalence or a brand fit between the celebrity and the brand/product.

3.5 Multiple Celebrity Endorsements An advertising technique used by marketers is using either some celebrities to endorse several brands or a specific brand is endorsed by different spokespersons. These theories are known as multiple brand endorsement or multiple celebrity endorsement respectively. Tripp et al. (1994) states that advertising firms might share certain spokesperson, thus celebrities end up promoting for more than one brand (p.535). For example golf champion Tiger Woods has endorsed brands such American Express, Nike and Rolex. Another example is of actress Catherine ZetaJones who has been used by T-Mobile and Elizabeth Arden to endorse their brand. On the other hand, brands, more specifically sports brands such as Nike, Reebok and Adidas, often use more than one celebrity as their spokesperson. Celebrities are chosen to associate with a brand on the bases that they in a certain way represent the target audience. When more than one or two celebrities are chosen to endorse one particular brand, its beneficial for appealing to various audiences to which the products caters to (Hsu and McDonald, 2002). Erdogan and

Baker (1999) in their research indicated that at times it is beneficial for the brand to have multiple celebrities endorsing a particular brand, so it can reach out to its entire target audience. But what is important to notice is that all the celebrities should reflect the brands core values (Erdogan and Baker, p.13). It can also be useful to endorse a product with multiple celebrities has they can represent a different mix of types such as age, gender and social class. According to (Hsu and McDonald, 2002), the Milk Mustache campaign in the USA, recruiting more than 100 celebrities to wear a milk mustache in ads since 1995, can be considered one of the most noticeable multiple celebrity endorsements. Another example is the Lux beauty soap commercials. They have successfully endorsed using most of the leading ladies from the Indian film industry. Marketers should think carefully while having multiple celebrities endorsing a single product. Today, consumers are becoming are becoming more

knowledgeable and might think that these celebrities are just to doing it for the money and do not really care about the transfer of meaning to the product, which might the consumers purchase behaviour (Belch and Belch, 2001). Research done by Redenbach (2005) shows that endorsement of four different brands/products does in fact influence the celebritys trustworthiness, expertise and likeability. This is because the celebrity instead of focusing on one brand, it endorses multiple brands and eventually lacks distinctiveness (Redenbach, 2005). It also so happens that because of the celebrity being associated with so many different brands, the people just remember the star while not recollecting the brand/product being advertised (Hsu and McDonald, 2002).

3.6 Celebrity Endorsement An Indian Perspective Celebrities are involved in endorsing activities since late nineteenth century (Erdogan, 1999). The latter part of the '80s saw the mushrooming of a new trend in India; brands started being endorsed by celebrities (Katyal, 2007). The advent of celebrity endorsements in advertising in India began when Hindi film and TV stars as well as sportspersons began making inroads on a territory that was, until then, the exclusive domain of models (Kulkarni and Gaulkar, 2005). One of the first sports endorsements in India was when Farokh Engineer became the first Indian cricketer to model for Bryl cream (Kulkarni and Gaulkar, 2005). Probably Lux the soap brand has managed to realize and made it synonyms with celebrity endorsement in India till date (Katyal, 2007). Early instance of celebrity endorsing brands in stars featuring like Tabassum (Prestige Pressure Cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) (Roy, 2006). Figure 1 shows the increase in celebrity endorsement advertisements since 2003 and 2007. This clearly indicated the growth and acceptance of celebrity endorsements on the Indian television. In fact, celebrity endorsement is growing at six times in volume terms between 2003 and 2007.

Figure 1: Celebrity Endorsements on television since 2003 Source: www.thehindubusinessline.com In the Indian context, it would not be bold to state that celebrity endorsements can enhance the overall brand. For instance, Coke example illustrates this claim. The Coke advertisement featured India film star Aamir Khan endorsing the brand. The result was a universally appealing Aamir cheekily stating Thanda matlab Coca Cola (Katyal, 2007). The Parker pen brand, which by itself commands equity, used Amitabh Bachchan to revitalize the brand in India. According to Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan, Parker's sales have increased by about 30 per cent (Katyal, 2007). The tastes and preference of the Indian consumer and how they treat their celebrity is different when compared to countries like United States of America and the United Kingdom. According to a saying by Confucius all people are the same. Its just the habits that are different. Hofstede (1991) in his research

classified all the countries into 5 basic cultural dimensions. In his analysis Hofstede ranked India in having high Collectivism, having a more collective behaviour and individuals having close ties with each others. Along with this Hofstede also positioned Indias name in having high power Distance Index. This implies that the society emphasizes on the differences between citizen's power and wealth. Relating Hofstedes finding to why Indians look up to their stars and want to be like them, makes for a better understanding. Today, India is one of the fast growing economies, and celebrity endorsing has become big business. India is one country, which has always idolized the stars of the celluloid world; therefore it makes tremendous sense for a brand to procure a celebrity for its endorsement (Katyal, 2007). Advertisers are offering stars like Shahrukh Khan, Aamir Khan, Amitabh Bachchan and many others huge pay packages to get them on board with a certain brand. In India there is an exponential likelihood for a celebrity endorsement to be perceived as genuinely relevant, thereby motivating consumers to go in for the product (Kulkarni and Gaulkar, 2005).

OBJECTIVE OF THE STUDY

Today Celebrity Endorsements is a billion dollar industry with companies signing deals with celebrities aiming to stand out from the clutter and give them a distinctive and significant position in the mind of consumers. Across the world, celebrities have been used for variety of brands. India has opened its markets only recently and its witnessing an era of completion that in never experienced before. The Objective of the Study is: To understand the impact of celebrity endorsements on the consumers purchase decision. The research focuses on Indians consumers who act differently while making of purchase decision. To know whether consumers are really satisfied with the endorsed product /service.

HYPOTHESIS OF THE STUDY

The study uses three hypothesis

1.

To find out between male and female regarding the role of advertisement in their buying decision. H0:- Mean of male=mean of female H1:- Mean of male mean of female Is celebrity endorsement plays any role in your buying decision process? H0:-Gender and role of celebrity endorsement in buying behavior are independent H1:-Gender and role of celebrity endorsement in buying behavior are dependent

2.

3. Are Customers Really Satisfied With The Celebrity Endorsed Product/Service

H0:- Gender and satisfaction with celebrity endorsement are independent H1:- Gender and satisfaction with celebrity endorsement are dependent Tools of analysis: Graphical presentation and Chi- square test

Data analysis: Using Microsoft Excel and SPSS

RESEARCH METHODOLOGY
RESEARCH OBJECTIVES: The study will have the following objectives: Primary objectives: To study the impact of celebrity endorsement on consumer behavior Secondary objectives: 1. To know importance of celebrity endorsement in buying decision for both gender. 2. To know the perception of customers regarding attractiveness and credibility of the celebrities. 3. To know the effect of celebrity endorsement on brand loyalty. 4. To know the customers perception about the effect of celebrity endorsement on price. 5. To know whether the customers are satisfied with celebrity endorsed products. 6. To know the effect of multiple endorsement on brands value. 7. To know the customers view regarding value transfer and good quality products linked with celebrity endorsement. Method of Data Collection Data collection is the process of collecting data material from the respondents through various ways. In this research, primary research data will be collected through a qualitative research style using interviews.

Primary research Primary r e s e a r c h involves acquiring original first hand data directly from the concerned research subjects. The essence of primary research data lies in the fact that it does not already exist somewhere. Its new and original data collected from the respondents. The data will be collected by distributing the questionnaire among the students while for others, the questions were asked, and the response was obtained. Selection of participants The participants used as research subjects will be adults. This age group of will selected as research samples as they are firstly avid watchers of television and are more or less the target audience of most commercials on television. This project will consist of 150 participants in total, of which 58% were males and 42% were females. Data was collected within a span of 20 days, with ample time given to each participant. Dehradun. Research Design Research design is a framework or blue print for conducting a research project. In other words its a plan that guides the collection and analysis of the gather data. It services at guideline to support the investigation and the nature of sampling the data. It therefore is the main part of any research undertaken. A good research would lay strong emphasis on having a well established research design. Exploratory type of research will be used in the present study Sampling Method:- Convenient sampling Sample size:- 150 Data collection instrument:- A questionnaire with close ended questions The research will conducted only in

DATA ANALYSIS AND INTERPRETATION

Objective 1: To know importance of celebrity endorsement in buying decision for both gender

Q 1 - ADVERTISEMENT PLAY A ROLE IN PRODUCT /SERVICE BUYING DECISION.

50% 40% 30% 20% 10% 0%

41% 13% 18% 24%

4%

ANOVA H0:- Mean of male=mean of female H1:- Mean of male mean of female Fc value: 4.915 > Ft value: 3.84 H1 accepted There is significant difference between male and female regarding the role of advertisement in their buying decision.

Q 2 - DO YOU THINK CELEBRITY ENDORSEMENT PLAYS ANY ROLE IN YOUR BUYING DECISION PROCESS?

33%

Yes

No

67%

CHI SQUARE H0:-Gender and role of celebrity endorsement in buying behavior are independent H1:-Gender and role of celebrity endorsement in buying behavior are dependent Chi square c : 0.123 < Chi square t : 3.84 H0 accepted

Objective 2: To know the perception of customers regarding attractiveness and credibility of the celebrities

Q 3 - WHICH CHARACTERISTIC OF CELEBRITY ATTRACTS YOU TOWARDS THE PRODUCT OR SERVICE?

40% 20% 0%

32%

29%

27% 12%

Reliability

Look

Life-style

Success Rate

Q4-WHAT KIND OF CELEBRITY IS MOST CREDIBLE ACCORDING TO YOU?

40% 30% 20% 10% 0%

34%

37%

19% 9%

Sports person

Business Tycoon

Film Star

Artist

Objective 3: To know the effect of celebrity endorsement on brand loyalty

Q 5 - DO YOU THINK CELEBRITY FORCES YOU TO SWITCH THE BRAND?

30% 25% 20% 15% 10% 5% 0%

24%

27%

26% 9%

13%

Objective 4: To know the customers perception about the effect of celebrity endorsement on price

Q 6 - CELEBRITY ENDORSEMENT LEADS TO UNNECESSARY INCREASE IN PRICE OF THE PRODUCT OR SERVICE.

40% 30% 20% 10% 0%

19% 5%

21%

32%

23%

Objective 5: To know whether the customers are satisfied with celebrity endorsed products

Q 7 - ARE YOU REALLY SATISFIED WITH THE CELEBRITY ENDORSED PRODUCT/SERVICE?

49%

51%

Yes No

CHI SQUARE H0:- Gender and satisfaction with celebrity endorsement are independent H1:- Gender and satisfaction with celebrity endorsement are dependent Chi square c : 0.404 < Chi square t : 3.84 So H0 accepted.

Objective 6: To know the effect of multiple endorsement on brands value

Q 8 - DO YOU THINK MULTIPLE ENDORSEMENTS WEAKEN THE PARTICULAR BRAND?

40% Yes 60% No

Objective 7: To know the customers view regarding value transfer and good quality products linked with celebrity endorsement

Q 9 - DO YOU THINK CELEBRITIES TRANSFER THEIR VALUES TO THE PRODUCT OR SERVICE?

38% 62% Yes No

Q 10 - DO YOU THINK THAT GOOD QUALITY PRODUCT REQUIRE CELEBRITY ENDORSEMENT?

35% 65% Yes No

FINDINGS AND CONCLUSION

Today Celebrity Endorsement has become an integral part of the advertisement industry. Meenaghan and OMahony (1998) stated that celebrity endorsements are omnipresent feature of present day marketing, this whole true for the Indian perspective as well. Figure 2, shows the increase in celebrity endorsements on Indian television from 2003 to 2007. As seen below in the year 2003 only recorded 100 celebrity endorsements featuring on the Indian television. As appose to this there was a sharp increase in the celebrity endorsements in the year 2007 which recorded 745 celebrity endorsements on television. Adding to this a new article on one of the countrys leading business papers stated that celebrity endorsements in India has grown incredible and adds up to 49% increase in 2007.

Figure 2: Celebrity Endorsements on television since 2003

Most of the respondents had a clear understanding of what celebrity endorsement meant. Their descriptions were well articulate and were very much in accordance with the definitions. Most respondents admitted to the fact that the celebrity endorsements generates higher level of appeal, but does not mean that it translates in purchase of that product. On the contrary, some participants stated that celebrity endorsement did not have any impact on their purchase decision and for them it was only the products features and attributes which generated more excitement.

In preference of celebrity over non-celebrity endorsement, only a few of respondents felt that a celebrity endorsement does not attract them more over non- celebrity endorsement. The rest of the participants clearly admitted in getting more attracted to celebrity endorsement, which was more reflected in their response showing the cultural difference between India and other parts of the world. In terms of celebritys attractiveness, most participants felt that attractiveness did have an impact on the product. Quickly adding to this they also mentioned that it is not necessarily true all the time. Couple of participants also further added stating that celebritys attractiveness does have a direct impact on the product and also cited examples to further justify their point. Interestingly none of the participants went against question and all agreed with the question at a certain level.

In relation to celebrity having a connection with the brand/product being endorsed, there was a clear majority of sought. Almost all the participants agreed upon celebrity having a relation with the brand/product being

endorsed. Most of the participants also cited examples to support their statement. They all agreed upon having a percept fit between the celebrity and brand to enable maximum benefits. They also claimed that celebrities should be matched-up to the products and vice- versa.

An interesting result obtained from one of the participant, He stated that products in India sell by the face. In India some celebrities are treated like demi-gods and when they are associated with a brand/product, their fans are bound to buy those products. This proved to be a very interesting and a new finding through this research, and a very important point factor for forming strategies in India, taking into consideration the cultural context.

Probably with respect to celebrities endorsing multiple products it came as no surprise as all of the participants agreed upon the same fact that celebrities endorse multiple products just to earn more money. In terms of creating negative publicity for them because of overexposure, most again agreed that it does a cause celebrity negative publicity. Also some furthered added that the celebrities did not bother once their dues were cleared and their services were paid for.

Most participants claimed that celebrity endorsements did not have any impact on their purchase decision. They claimed that merely a favorite celebrity or famous celebrity is endorsing a certain brand; the participants will not go buy it. One of the participants said that if an interested product is endorsed by a certain celebrity, it at times gives a sense of product quality and assurance to the viewers. This finding proved relevant when understanding why celebrities were needed to endorse products.

In terms of celebritys actually using the product they endorse, unanimously most of the participants agreed that none of the celebrities actually use them. A few suggested that it may depend on the product, but majority of they do not use the products they endorse. It was also interesting to note that sometimes the viewers tend to assume that the celebrities are using the products, but when actually they know they do not.

Most participants complained of too much celebrity endorsements on the television currently. Some respondents claimed calling it ridiculous and also some further stated that as it is there are so many ads and on top of that there are so many celebrity endorsements which irritated the viewers even more. A few participants even mentioned on a litter mode calling so many celebrities advertising as entertaining and funny.

In spite of all the negatives and positives views from the participants if can be inferred that if celebrity endorsed advertising is conducted with much thought and proper execution then the chances of it going wrong are few and would in tend increase awareness and enhance sales of the product as well.

LIMITATIONS, MANAGERIAL IMPLICATIONS AND FUTURE RESEARCH

6.1 Limitations of the study

Every research has certain drawbacks and therefore it is necessary to incorporate them in the thesis to achieve a true perspective of the research topic. The following are a few constrains which we faced during our research study.

The research subject size used in this research is small in number and does not in any way represent the larger population of India. Hence the results of this study cannot be judged to say justify the larger population. The results may demonstrate difference.

The research subject all come from almost similar age ground and economy class, therefore they do not represent the Indian nation, who has a people from diverse socio- economic strata. The results obtained from this research therefore could not be used to sample India as a whole nation.

Also the occupation of these participants is near about similar as most of them are either students or employed or trainees. Therefore it may not seem an adequate representation of the various different walks of life people come. It may also be the limitation of this research.

Another important limitation of this research is the time constrain while doing this study. Due to the restriction of time more participants could not be interviewed, providing for a better research sample and having more data to

analysis and then to some up with better findings.

Another flaw in the research is that it uses interview style of data collection, which is appropriate. But at times its said that the respondents do not say what they want to say, rather they say what the interviewer wants to hear (Denzin and Linclon, 2002). Hence the respondents views may be influenced by others, resulting in inaccurate data findings.

6.2 Managerial Implication The results obtained from this research can be of very good help towards the literature on celebrity endorsements. Celebrity endorsement has evolved a lot from its early inception. Today celebrity endorsement is used by

managers very strategically to gain competitive advantage and also to enhance sales.

First of all, managers should draw their attention to the fact that the Indian consumers are different and the way they treat their celebrities is also different when compared to other countries such as The United Kingdom and United States of America to name a few. In India stars and celebrities are worshipped and given demi-god status. Therefore when a popular celebrity endorses for a brand in India, there bound to be hysteria about that particular product.

Managers should also take notice of matching up of products to appropriate celebrities and not creating arbitrary association with celebrities, just to generate more awareness. Before finalising and airing the

commercial, celebrities and products should be linked resulting in a perfect

brand fit, thus generating maximum awareness and purchase.

Managers should also take a closer look at negative information about of celebrities affecting information about the consumers. At times its seen that negative

the celebrity in question results in negative information

passed on to the product as well. Therefore harming the product as well and causing decrease in sales.

6.3 Future Research

The areas in which further research could be conduct are issues such there has not be a considerable research done on celebrity endorsement and its impact on the consumers with the Indian population. Since the Indian population is vast and diverse, different research targeting different groups of people according to their socio-economic class can be classified. Another important area of concern in the future is the dissatisfaction of some people referring to celebrity endorsement has making no sense and merely introduced to fool the consumers and make money. These statements are serious and harsh as well, therefore an in-depth understanding of consumer need to be conducted to analysis this problem.

While matching up celebrities to product, an important point must be notice that of whether the meaning is getting transferred at all to the consumers and also to notice if it is transferred in the correct way. It is very important to get the right meaning transferred to the consumers to get maximum advantage of using the celebrity and achieving larger awareness.

Consumers are governed by their cultural and values, hence a detailed study of the Indian consumers needs to be done before anything else, in trying to understand the consumers habits. If most of these recommendations are implemented, the Indian consumers perception towards celebrity endorsements would change and will result in higher degree of achievement by using a celebrity to endorse a brand/product.

References Agrawal. J and Kamakura.A (1995), The economic worth of celebrity endorsers: An event study analysis, Journal of Marketing, Vol. 59(3) pp. 56-62. Alexis.O, Vydelingum and Robbins (2006), Overseas Nurses Experiences of Equal Opportunities in the NHS in England, Journal of

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Publications. Bertrand.K and Todd.S (1992), Celebrity marketing: the power of personality: golf legends drive marketing campaigns, Business marketing, Vol. 77, No.8, pp. 24-28. Byrne.A, Whitehead.M and Celebrity Endorsement, British Food Journal, Vol. 105 (4/5) pp.288-296. Cooper.J (1984), Can Celebrities Really Sell Products? Marketing and Media Decisions, September. Daneshvary.R and Schwer.K (2000), The association endorsement and consumers intention to purchase, Journal of consumer marketing, Vol.17 (3) pp. 203-213. Debevec.K, Madden.T and Kernan.Jb(1986), Physical Attractiveness, Message Evaluation, and Compliance: A Structural Examination, Breen.S (2003), The Naked of Truth

Psychological Reports, pp. 503-50 Desphande.R and Stayman.D (1994), A Tale of Distinctiveness Theory Two Cities:

and Advertising Effectiveness, Journal of Marketing Research, Vol. 31(1) pp.57-64. Erdogan.Z (1999), Celebrity Endorsement: A Literature Review, Journal of Marketing Management, Vol. 15 pp. 291-314. Erdogan.Z, Baker.J (1999), Celebrity Endorsement: Advertising Agency Managers Perspective, Cyber-Journal of Sport Marketing, Vol: 3, No. 3. Friedman.H and Friedman.L (1979). Endorser Effectiveness by Product Type, Journal of Advertising Research, Vol. 19(5) pp.63-71.

Annexure- Questionnaire

Name: _____________________ Occupation: _________________

Gender:

Mobile : .

Q1. Does Advertisements play a role in your product/service buying decision? a) Completely disagree b) Somewhat disagree c) Neither disagree nor agree d) Somewhat agree e) Completely agree

Q2. Do you think celebrity endorsement play any role in your buying decision process? a) Yes b) No

Q3. Which characteristic of celebrity attracts you towards the product/service? a) Reliability rate b) Look c) Lifestyle d) Success

Q4. Do you think celebrity forces you to switch the brand? a) Completely disagree b) Somewhat disagree c) Neither disagree nor agree

d) Somewhat agree e) Completely agree

Q5. Which kind of celebrity is most credible according to you? a) Sportsperson b) Business tycoon c) Film star d) Artist

Q6. Celebrity endorsement leads to un-necessary increase in the price of the product/service. a) Completely disagree b) Somewhat disagree c) Neither disagree nor agree d) Somewhat agree e) Completely agree

Q7. Are you really satisfied with the celebrity-endorsed product/service? a) Yes b) No

Q8. Do you think multiple endorsements (one celebrity endorses many brand) weaken the particular brand? a) Yes b) No

Q.9. Do you think celebrities transfer their values to the product/service?

a) Yes

b)

No

Q.10.Do you think that good quality products require celebrity endorsement? a) Yes b) No