i

FORE SCHOOL OF MANAGEMENT, DELHI

Consumer Behavior
Celebrities are demigods in India
Submitted To: Dr. D K Batra
9/14/2009

Submitted By:
Amul Malhotra-81127
Arun Sharma-81130
Isha Arora-81146

Celebrities are Demi-gods in India- Perception or Reality

 ii

Acknowledgement

We would like to express my gratitude to all those who gave me the possibility to
complete this Study. First of all, we would like to thank our honorable Dr. DK Batra
for giving us permission to commence this project in the first instance, to do the
necessary research work. We would also like to thank for his guidance under which I
was able to carry out this project successfully.

We would also like to give special thanks to my respondents who took pain in
responding to our questionnaire.

Amul Malhotra-81127
Arun Sharma-81130
Isha Arora-81146

Celebrities are Demi-gods in India- Perception or Reality

Executive Summary

Today, the modern marketing strategy of most business firms relies heavily on creative
advertising to promote their products to their target markets. In fact, a central goal of today's
advertising strategy is the persuasion of customers, who are becoming increasingly educated,
sophisticated and, selective. The main purpose of this study is to explore consumer attitudes
towards the role of celebrity endorsement in influencing Indian customer and making brand
popular, and provide guidance to advertising makers and specialists to improve the effectiveness
of celebrity-based advertising. Research has explored celebrity attractiveness, meaning transfer,
credibility, impact, and celebrity-product fit but these have largely been on Indian cultures. The
study was based on an empirical research approach, which used a convenience sample of 31
drawn from Northern India sample mix consisted of students, working executives. The responses
were collected using a structured questionnaire through a personal interview. The questions
consisted of open-ended question, forced choice decision and some attitude measuring
statements for which answers were to be marked on a likert scale. The data was analyzed by
various statistical techniques, such as Frequency analysis, Descriptive analysis, One Sample t-
Test, and One-Way ANOVA. The main findings showed that Indian respondents were generally
interested in celebrity endorsement in advertising, as the majority recognized its overall
attractiveness, though did not find it convincing enough in terms of brand choice behavior. The
study suggested to reconsider the way celebrities were projected in advertising, or even chosen,
within the context of the Indian culture. Indian consumer has also showed an interest in the
relationship between celebrities and endorsed products in advertising. They seemed to believe in
the importance of the match-up between the two. Further study shows that celebrities have a
good effect on TOP of mind brand recall, Indian consumer also has great tendency to discard
brands if its celebrity is involved in negative publicity and celebrity gets its image diluted if it is
associated with brand of premium and lower image brands simultaneously. The study urged
further research to explore this issue in greater depth in India. 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
Table of Contents
Executive Summary...................................................................................................iii
Table of Contents.......................................................................................................iv
Chapter-1....................................................................................................................1
INTRODUCTION...........................................................................................................1
Chapter-2....................................................................................................................3
LITERATURE REVIEW...................................................................................................3
Chaper-3.....................................................................................................................9
RESEARCH DESIGN.....................................................................................................9
Chapter-4..................................................................................................................11
DATA ANALYSIS........................................................................................................11
Chapter-5..................................................................................................................21
CONCLUSION & IMPLICATIONS..................................................................................21
ANNEXURE-Questionnaire...........................................................................................a
BIBLIOGRAPHY............................................................................................................ c
Chapter-1
INTRODUCTI ON

Today the modern marketing strategy of most business firms relies heavily on creative
advertising to promote their products to their target markets. In fact, a central goal of today's
advertising strategy is the persuasion of customers, who are becoming increasingly educated,
sophisticated and, selective. Competition is also becoming more intense. Having a good product
alone is not enough to compete in markets of high standards (Kumar and Reinartz, 2006).
Obviously, The changes in markets and consumer lifestyle are driving marketers to focus
on more persuasive ways of promoting their products. In today's media driven markets,
creative advertising can promote not only products, but also attractive lifestyles and dreams that
are highly valued by consumers (Alsmadi, 2005). Very often, advertising makers use various
advertising styles to influence consumers' brand choice behavior. Among the different styles
available, celebrity endorsement is becoming a popular choice in the advertising industry.
Celebrities like movie actors, stars, famous athletes are widely used in advertising to influence
consumers' brand choice behavior (Shimp, 2003). Advertisers try to establish a link between
their brands and a desirable image or lifestyle of a celebrity (Suegker, 2003). Research and
experience show that consumers are most comfortable and highly ready to spend, when
celebrities endorse things that relate to their desired image (Internet World, 2001). The perceived
image of celebrities is likely to have a positive impact on product choice behavior (for example,
Goldsmith, Lafferty, and Newell, 2000; Mathur, Mathur, and Rangan, 1997). Consumers are
likely to take more notice of celebrity advertisements and improve their level of product recall
(Bowman, 2002). In fact, the special influence of celebrity endorsement is further enhanced by
the obvious features of advertising provides daily access to thousands of sport athletes, film and
stars, and other celebrities. This makes celebrity-based advertising (CBA) an attractive choice by
advertising makers. The term CBA will be used throughout this study to mean advertising that
depends primarily on celebrity endorsement to influence consumer brand choice behavior. The
current research investigates this issue within the Indian context.
 1.1. Statement of the research problem

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 is
noticeable that the portrayal of celebrities in 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. 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 advertising (CBA) in Indian, focusing on the following dimensions:

1) Attractiveness of CBA
2) The effect of CBA on consumers' brand choice behavior
3) The importance of celebrity-product match up

1.2. Research objectives

The purpose of this study is to explore Indian consumer attitudes towards CBA to understand
how consumers respond to celebrity endorsement in commercials. In particular, the study seeks
to answer the following questions:

1. How attractive is CBA to the Indian consumer?

2. What is the effect of CBA on consumers' brand choice behavior?
3. How important is the celebrity-product match up?
4. Do consumer attitudes towards CBA, with respect to brand-choice behavior, vary by
demographic variables (sex, Age and income)?

On the contribution side, the findings are expected to help advertising makers improve the
effectiveness of their advertising efforts, thus increase advertising persuasion within the Indian
context.
Chapter-2
LITERATURE REVIEW

The celebrity concept in today's dynamic and highly competitive business environment and
customers are becoming more demanding. Their expectations are continuously rising, with
marketers continuing their efforts to meet them. In their reactive advertising efforts, marketers
turn to celebrity endorsement to influence consumer brand choice behavior. A celebrity is a
well-known personality who enjoys public recognition by a large share of a certain group of
people (Schlecht, 2003). Celebrities (e.g. models, actors, stars, artists and, sport athletes) are
known to the public for their accomplishments in areas other than the product class endorsed
(Friedman and Friedman, 1979). They usually enjoy high public recognition, and often have
powerful influence upon endorsing products. They appear on 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 awareness of advertised brands and create positive feelings towards
them (Solomon, 2002). Eventually, this will positively affect customers' brand choice behavior.
But, what are the desired qualities that should be possessed by effective celebrities? Next section
will deal with this.

2.1. Endorser attributes

Research has shown that effective celebrities must be assessed against five essential attributes,
usually referred to as 'TEARS' model (Shimp, 2003)

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.

Expertise: knowledge, experience and 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.

Attractiveness: all characteristics that make an endorser attractive to audience Members (e.g.
physical look, personality properties, attractive lifestyle … etc).
Respect: refers to the quality of being admired or esteemed due to endorser's overall
accomplishments.

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. Next section will cast light on this issue.

2.2. Endorser selection criteria

The decision to select celebrity endorsers in advertising is very important, at least partly, due
cost consideration. Marketers and advertising makers use variety of selection criteria. Below is a
list of the most important ones (Erdogan, Baker and Tagg, 2001; Miciak and Shanklin, 1994):

Celebrity/audience matchup: compatibility between an endorser and the target audience. It

represents the extent to which the target market relates positively to the endorser.

Celebrity/brand match up: compatibility between an endorser and the image desired for the
endorsed brand. Several research studies stressed the importance of this type of match up (for
example, Till and Busler, 1998; Martin, 1996; Till and Shimp, 1998).

Celebrity Credibility: (discussed in the TEARS model).

Celebrity Attractiveness: (discussed in the TEARS model).

Cost consideration: the cost of acquiring a celebrity's services is an important issue in the
advertising industry. Often, marketers have to pay top celebrities huge amounts of money for
their endorsement services. For example famous golfer Tiger Woods was estimated to earn
$54 million annually from endorsements (Ferguson, 2000). To put this in perspective, a person
with a relatively high annual income (say $200,000) would have to work (270) years to earn as
much as Tiger Woods' income in a single year from endorsements only.
Working ease/difficulty: represents how easy/difficult is to deal with an endorser. Some
celebrities are arrogant, tough, noncompliant or inaccessible. Many brand managers prefer to
avoid the 'hassle' of dealing with them.

Saturation factor: refers to whether an endorser is overexposed to the media (multiple brand
endorsement). If a celebrity endorses several brands, his/her perceived credibility will suffer.

The trouble factor: refers to the evaluation of the likelihood that a celebrity will get into troubles
after an endorsement (e.g. Drugs, rape, child-molestation …etc.) Due to these unfortunate
incidents, coupled with the high cost of endorsement, many brand managers and advertising
makers consider celebrities as high-risk endorsers (Blakeley, 2001). Some avoid celebrity
endorsement altogether, while others conduct thorough and careful scrutiny in selecting
celebrities.

2.3. Power of celebrity endorsement

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. This simply reflects the power of celebrity endorsement, which is behind the
main reason for employing celebrities to promote almost all kinds of products (Fraser and
Brown, 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. One specialist maintained that appealing
to youth and other consumer audiences through celebrities could be a powerful marketing
strategy (Cuneo, 2002).

2.4. Previous research

Many studies described the positive effects of celebrities on consumer buying behavior,
such as the adoption of clothing styles, product choice, and health behaviors (for example,
Brown and Basil, 1995; Hoffner and Cantor, 1991). Research evidence revealed that the
perceived image of celebrity endorsers had a positive impact on product buying behavior (for
example, Goldsmith, Lafferty, and Newell, 2000; Mathur, Mathur, and Rangan, 1997,
Ohanian, 1990). One study indicated that people of all ages emulated the appearance and
behaviors of media celebrities they admired (Hoffner and Cantor, 1991). One study by Howard
(2002) 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 Brown, 2002). Pappas (1999), who
examined the value of star power in an endorsement, indicated how a well-designed advertising
helped celebrities convert their star power into brand equity. One study stressed the advantage 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 (Bowman, 2002).

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 Tagg, 2001). Wells and Prensky (1996), who
examined the issue of credibility, indicated that many consumers were skeptical of celebrities
who were paid to provide positive information about endorsed brands. Several other studies
criticized the credibility of celebrity endorsement (for example, Shanahan, 2001). One specialist
put it this way "A product pitched by a celebrity is a tale told by an idiot" (Feuer, 2002). Other
studies explored the issue of negative publicity associated with celebrity endorsers (For
example, Till and Shimp, 1998). One study showed that a company's stock price declined when
negative publicity hit a celebrity who endorsed one of its brands (Louie, Kulik, and Johnson,
2001). One critical study urged companies to stop using celebrities to drum up media coverage in
the absence of a solid story. Instead, the study recommended to use celebrities to intensify an
already strong issue-oriented message (Pepe, 2004). One critique, who commented cynically on
this view, had this to say "if you don't have anything meaningful to say, get a celebrity to say it"
(Grimm, 2001). One study examined the effectiveness of celebrity endorsement. The study
concluded that, ultimately, the appeal and effectiveness of the celebrity within the advertising
was still going to be determined by the quality of the creative idea behind the advertising
message (Iddiols, 2002). Similar other comments were made along this line (for example,
Howard, 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 CBA is mainly to elicit consumers' attention and
ultimately persuade them to buy endorsed products. Indeed, 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. To the best knowledge of the
author, no previous studies were conducted on this specific issue within the Indian culture, in
particular. This makes the current research the first of its nature to focus attention on the specific
issue of CBA in India. In that, it is considered an extension to previous research in other areas of
advertising in India. In general, few studies explored the issue of advertising in India, focusing
on different other issues. For example, Alsmadi (2004) found that advertising was generally
inconsistent with consumer culture in Indian due to the use of unfamiliar vocabulary and
unacceptable women portrayal. Other studies supported these findings (Alsmadi, 2005, Mansour,
1998). One comparative study between the Arab world and the U.S. examined the effects of
cultural differences regarding the advertising material. The study found that as high as 83% of
Arabic advertisements featured women decently compared to only 29% of U.S advertisements
(Kiran and Fahad, 2000).

2.5. Research hypotheses

The current study draws on the literature and explores CBA from the perspective of the Indian
consumer, focusing on different aspects (indicated earlier). 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 CBA as an attractive advertising.

H2: CBA is likely to have a positive influence on consumers' brand choice behavior.

H3: Indian consumers are likely to believe that the celebrity-product matchup is important.

H4: There are no significant differences in consumers' brand-choice behavior (α≤0.05), which is
influenced by CBA, due to demographic characteristics (sex, age and income).
Chaper-3
RESEARCH DESIGN

This study is based on a field work, of which population included all north Indian residents
This population is generally considered homogeneous in terms of age group and education level.
That is, respondent age and education were assumed relatively fixed this population. This paved
the way to focus on other demographic variables in this study, such as sex and income.

3.1. Sampling procedures

This study used a convenience sample of 35 students contacted through telephone, personal
interview and mail. Originally, 50 copies of a questionnaire were distributed to respondents,
using drop-off approach (Aaker et al, 2004). According to this method, the data collection team
interviewed respondents, who showed an interest to participate in the study and briefed them
about the purpose of the study. Afterwards, they hand delivered the questionnaires to them to fill
out, followed by an arrangement to collect the completed questionnaires. The usable sample was
31 respondents after the process of data editing and cleaning. Accordingly, the response rate was
(70%).

3.2. Research instrument

To collect the required data, a self-administered questionnaire was designed to measure

consumer attitudes towards CBA. 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 CBA (Dimension 1). The second section was designed to assess the
influence of CBA on consumers' 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 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 (1=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 (Arabic version) was validated through a study, which included academics,
specialists and, advertising practitioners. Their comments were considered in the final version.
The reliability of the measuring instrument was evaluated by Cronbach Alpha analysis. The test
output of reliability analysis revealed a correlation value of (α = 0.84).

3.3. Statistical treatment

Several statistical techniques were used at the analytical stage, including Frequency analysis,
Descriptive analysis, and Analysis Of Variance (One Sample t- Test, One-Way ANOVA). The
first three hypotheses were tested by One Sample t- Test, based on the value of (3) [scale
midpoint]. The higher the value the more favorable is the attitude and vice versa. The fourth
hypothesis was tested by One-Way ANOVA to explore mean differences among sex and income
sub-groups. The testing for mean differences was based on (0.05) significance level as a decision
rule (α≤0.05). We accept statistical differences if the significance level is (0.05 or less), and vice
versa.
Chapter-4
DATA ANALYSIS

Research findings in Tables (1 through 3) show descriptive analysis (mean scores and standard
deviations) and agreement levels for attitude statements regarding the three dimensions of the
study, respectively. The findings also show results of One Sample t-Test for each dimension,
taken as a whole. The test value was (3), which is the scale midpoint (five-point Likert scale).
Further analysis (Tables 4 and 5) examine differences among respondent demographics (sex, age
and income), using Independent- Samples t-Test and One-Way ANOVA.

4.1. Attraction of CBA (Dim. 1)

The research findings for the first dimension (Table 1) revealed that Indian respondents were
interested in CBA, as the majority believed that it was generally attractive. The analysis in the
Table revealed that the overall attitude mean score of respondents, which measures this
dimension as a whole, was above the scale midpoint (3.46), with the standard deviation showing
dispersion around this mean.

One-Sample t- Test Test Value = 3 t-critical Result

1.622
Mean Std. t-sample
Deviation
Advertising, which uses celebrities, 3.32 1.102 1.666 Accepted
attracts my attraction.
Advertising, which uses celebrities, 3.71 1.131 3.493 Accepted
is popular.
Advertising, which uses celebrities, 3.61 .989 3.450 Accepted
is more attractive
Advertising, which uses celebrities, 3.26 1.094 1.313 Rejected
is enjoyable
Attractive celebrities in Advertising 3.39 1.283 1.680 Accepted
make me pay more attention to
product details
Dimension 1 as whole(H1) 3.46 1.120 5.075 Accepted

Table-1
As shown in the Table, four statements for this dimension had mean scores above the scale
midpoint, which clearly indicated positive attitudes towards attractiveness of CBA. These results
were further substantiated by One Sample t- Test, which revealed that the overall mean
difference, for the dimension as a whole, was statistically significant (α =0.000), at (α≤0.05),
with high t-value (t=5.075). This means that the mean score of Indian respondents, who agreed
with the attitude statements as a whole, was significantly different from that for those who
disagreed. These findings support the first hypothesis of the study (H1), which states that
“Indian consumers are likely to consider CBA as an attractive advertising”. Therefore, we can
accept this hypothesis. For example, one study 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 Brown, 2002).

4.2. Influence of CBA on brand choice (Dim. 2)

Dimension (2) measures the influence of CBA on consumer’s brand choice behavior. The
research findings for this dimension (Table 2) unveiled that CBA did not seem to have much
influence on Indian consumers in terms of their brand choice behavior, despite their positive
view of CBA’s attractiveness indicated in the analysis of the first dimension.

One-Sample t- Test Test Value = 3 t- Result

critical
1.622
Mean Std. t-sample
Deviation
CELEBRITIES helps me make the buying decision 2.29 1.270 -3.111 Rejected

CELEBRITIES helps me remember the endorsed 3.19 1.376 .783 Rejected

brand during shopping

CELEBRITIES increases acceptance of endorsed 3.42 1.148 2.034 Accepted

brands

CELEBRITIES increases my awareness of endorsed 3.29 1.160 1.393 Rejected

brands.

Dimension 2 as Whole 3.04 1.305 .413 Rejected

Table-2
Though mean score of majority of statements is above 3 which suggests celebrities may have
influence consumer brand choice .Further analysis statements with single tailed t-test value >3
shows majority of statements rejected. The resulting overall mean score value was midpoint
(3.04), with the standard deviation showing dispersion around this mean. However, the analysis
of One Sample t-Test showed that the overall mean difference, for the dimension as a whole, was
statistically significant (α =0.000), at (α≤0.05), with t-value (t=.413). This means that the mean
score of Indian respondents, who disagreed with the attitude statements as a whole, was
significantly different from that for those who agreed. In that, these findings do not seem to
support the second hypothesis (H2), which states that “CBA is likely to have a positive
influence on consumers' brand choice behavior”. Therefore, we cannot generally accept this
hypothesis. Although many previous studies stressed the advantage of celebrity
endorsement in enhancing product recognition and recall (Bowman, 2002), some studies were
critical about the use of celebrities in advertising as consumers would focus their attention on the
celebrity and fail to note the endorsed brand itself (for example, Erdogan, Baker, and Tagg,
2001).

4.3. Celebrity-product match up (Dim. 3)

The analysis of the third dimension (Table 3) revealed that Indian consumers are likely to
appreciate the importance of match-up between celebrities and the products they endorsed in
television advertising.

One-Sample t- Test Test Value = 3 t- Result

critical
1.622
Mean Std. t-
Deviation sample
Celebs influence brand image 3.58 1.177 2.747 Accepted
Proper matchup between brand and celeb 3.45 1.121 2.244 Accepted
increase trust
Dimension 3 as whole 3.52 1.141 3.560 Accepted
Table-3

The figures in the Table showed that the overall attitude mean score of respondents, which
measures this dimension as a whole, was (3.52). Obviously, the majority believed that the
character of a celebrity in advertising was likely to have an influence on the image of the
endorsed brand (3.58) and that the more meaningful the match-up between the celebrity and the
endorsed brand, the greater the trust in the brand (3.45). Clearly, the majority of respondents
seemed to have positive attitudes towards the importance of the perceived relationship
between celebrities and the brands they endorsed. These findings were further substantiated
by One Sample t-Test, which indicated that the overall mean difference, for the dimension as a
whole, was statistically significant (α=0.000), at (α≤0.05), with t-value (t=3.560). This indicated
that the attitude mean score of respondents, who agreed with this dimension as a whole, was
significantly different from that for those who disagreed. These findings support the third
hypothesis (H3), which states that “Indian consumers are likely to believe that the celebrity-
product matchup is important”. Therefore, we can accept this hypothesis. These findings were,
however, consistent with conclusions of many previous studies. For example, Kamins (1990)
emphasized importance of considering the appropriate match on an attractiveness basis between
a celebrity and product type. Further, the study explained that the characteristics of a celebrity
were likely to interact with the nature of the advertised product. Shimp (2003) also shared similar
views on this issue.

4.4. Demographic variables

The analysis in this section explores potential differences in consumers’ brand choice behavior
(D2) due to demographic variables (sex and income). The purpose of this analysis is to test the
fourth hypothesis of the study (H4), which states that “there are no significant differences in
consumers' brand-choice behavior (α≤0.05), which is influenced by CBA, due to demographic
characteristics (sex and income)”. Clearly, the analysis focuses on (D2) as it measures the direct
effect of CBA on brand choice behavior.

4.4.1. Sex

Sex Mean Std.

Deviation
Female 2.6964 .57327
Male 3.3382 .99586
Total 3.0484 .88133
Table-4a

ANOVA Table Sum of df Mean F Sig.

Square Square
 s

Between Groups 3.162 1 3.162 4.554 .041

(combined)
Within Groups 20.140 29 .694

Total 23.302 30
Table-4b

To deal with fourth hypothesis mean, standard deviations and F-values were calculated to
examine differences in consumers' brands choice behavior among male and female groups (Table
-4b). According to the mean scores in the Table, male respondents were more influenced by
CBA than females did, as male mean score (3.33) was greater than that of females (2.69). Also
F- calculated is greater than F-critical. Hence it’s concluded that there is significance difference
between brand choice behavior of males and females

4.4.2. 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 respondent, as shown in Table .

Income Mean Std.

Deviation
Below 2 Lac 2.7708 .66962
2-5 Lac 3.3269 .90361
5-10 Lac 2.9500 1.27965
Above 10 Lacs 3.2500 .
Total 3.0484 .88133
Table-4c

ANOVA Table Sum of df Mean F Sig.

Square Square
s
Between Groups 3 .674 .855 .476 .193
(combined)
Within Groups 27 .788
Total 30
Table-4d
The research findings, presented in the Tabl-4d, showed that there were no significant
differences in consumers’ brand choice behavior due to income level, as the F-value was (.476),
which was not statistically significant at the test level of (α≤0.05). Therefore, we can accept the
fourth hypothesis (H4), in terms of income. Clearly, the findings indicated that the influence of
CBA on consumers’ brand choice behavior was relatively similar among the three income
groups (low, middle, and high income). That is, the three income groups were consistent in terms
of their perception of the effect of CBA on their brand choice behavior. In general, CBA did not
seem to have much influence on Indian consumers in terms of their brand choice behavior.

4.4.3. Age

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 respondent, as shown in Table

Age Mean Std.

Deviation
Below 18 2.0000 .00000
18-25 3.2031 .75949
26-40 2.8958 .93819
Above 40 4.5000 .
Total 3.0484 .88133
Table-4e

ANOVA Table Sum of df Mean F Sig.

Square Square
s
Between Groups 4.968 3 1.656 2.439 .086
(combined)
Within Groups 18.335 27 .679
Total 23.302 30
Table-4f

The research findings, presented in the Table-4f, showed that there were no significant difference
in consumers’ brand choice behavior due to income level, as the F-value was (2.439), which was
not statistically significant at the test level of (α≤0.05). Therefore, we can accept the fourth
hypothesis (H4), in terms of age. Clearly, the findings indicated that the influence of CBA on
consumers’ brand choice behavior was relatively similar among the four age groups. That is, the
four age groups were consistent in terms of their perception of the effect of CBA on their brand
choice behavior. In general, CBA did not seem to have much influence on Indian consumers in
terms of their brand choice behavior

4.5. Linking Brand & celebrity Recall ( Q1 &2)

Celeb Recall * Brand Recall * Sex * Education Cross tabulation

Education Sex Brand Recall Total
NO Yes
Below Male Celeb NO 2 1 3
10th Recall
Total 2 1 3
10-Grad female Celeb NO 3 0 3
Recall Yes 0 2 2
Total 3 2 5
Male Celeb NO 2 2 4
Recall Yes 0 2 2
Total 2 4 6
Post Grad female Celeb NO 4 2 6
Recall Yes 0 3 3
Total 4 5 9
Male Celeb NO 3 0 3
Recall Yes 0 5 5
Total 3 5 8
Table-5

Using responses for question 1 & 2 a cross tab is formed for correlating celeb and brand recall
along dimension of sex and age. The question were aimed to find top of mind recall
1. It can be seen that none of male below 10th standard education is able to recall the celebrity or
the advertisement featuring it.
2. Among 10-Graduate people 40% females and 33% males were able to rightly recall both
celebrity and brand. This shows a good impact of celebrity-brand relationship among this
segment
3. In segment of above postgraduate 30% females and 63.5% males were able to rightly recall
the celebrity-brand. So while designing promotion for targeting this segment celebrity
becomes most effective.

4.6. Celebrity Brand-Fit( Q3)

Celeb Linkage * Age * Sex Crosstabulation

Sex Age Total
Below 18-25 26-40 Above
18 40
female Celeb Baichung 3 3 6
Linkage Bhutiya
John 2 0 2
Abrahim
Kapil 5 0 5
Dev
Priety 0 1 1
Zinta
Total 10 4 14
Male Celeb Baichung 2 4 3 1 10
Linkage Bhutiya
John 0 1 4 0 5
Abrahim
Kapil 0 1 1 0 2
Dev
Total 2 6 8 1 17
Table-6

Question-3 was aimed to see how consumers see celebrity-brand fitness. In both males and
females majority has identified Baichung as preferable endorser for Sports category followed by
Kapil dev who is again from sports field and John Abrahim as he is seen as a macho-men of
Indian film industry. Though Preity Zinta instead of huge fan following is discarded. The results
are consistent across age group.

4.7. Negative Publicity

 Effect of scandals * Income * Sex Crosstabulation
Sex Income Total
Below 2-5 Lac 5-10 10+
2 Lac Lac Lacs
female Effect No 3 3 0 6
of Yes 3 4 1 8
scandals
Total 6 7 1 14
Male Effect No 3 1 1 0 5
of Yes 3 5 3 1 12
scandals
Total 6 6 4 1 17
Table-7

The question was put to check the effect of negative publicity of celebrity on band 67% of
respondent have stated they will stop consuming the brand which is quiet a high percentage and
this can severely damage the brand reputation. If specifically seeing the male and female
behavior it again comes out to be same across different income levels as they don’t want to
associate with something bad.

4.8. Overexposure

Multibrand Association * Income * Sex Crosstabulation

Count
Sex Income Total
Below 2 2-5 5-10 Above
Lac Lac Lac 10 Lacs
femal Multibrand Confused 1 0 0 1
e Association Definitely No 4 4 1 9
Definitely Yes 1 3 0 4
Total 6 7 1 14
Male Multibrand Confused 1 0 1 0 2
Association Definitely No 4 3 2 1 10
Definitely Yes 1 3 1 0 5
Total 6 6 4 1 17
Table-8
This question was designed to test the effect of overexposure of celebrity with various brands.
Results clearly show that such a factor dilutes image of celebrity and she ends-up as a mere
character in advertisement and consumer doesn’t consider her word of mouth results are same for
males and females and across the income groups.
Chapter-5
CONCLUSION & IMPLICATIONS

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 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 advertising. They seemed to believe in the importance of the match-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. But this should not overshadow
the whole view, as nearly one third of respondents were subject to the effect of CBA regarding
their brand choice behavior, and almost one fourth were neutral on this matter. One possible
explanation behind this phenomenon could be 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 (Bowman, 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 to the way celebrities were projected in advertising, or even
chosen, within the context of the Indian culture. In principle, this calls for a better understanding
of Indian consumer behavior, possibly through market research. This will probably lead to a
more convincing and acceptable form of celebrity endorsement in television advertising in India.
It is, therefore, hoped that Indian advertising makers and specialists in the advertising industry
will draw on these conclusions to maximize the benefits of using celebrities in advertising,
taking consumer culture into consideration

5.1. Recommendations

The current research findings suggest that advertising makers and specialists are highly
recommended to improve their perception of the role of celebrities in the advertising strategy in
India. Obviously, this requires further investigation to understand the extent to which Indian
consumers believe what celebrities say about products, including the perceived credibility of
such endorsement. Moreover, it will be helpful if celebrities can be encouraged to participate in
decision-making at all levels of the advertising media and provide valuable inputs to the
process. Undoubtedly, this will improve advertising effectiveness, and consequently increase
potential revenues for Indian advertisers.

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 and
explore how celebrities are positioned in the consumer’s mind. Moreover, future research will
have to investigate the ideal characteristics that best match desirable celebrities, and
consequently make their endorsement more convincing to the Indian consumer.

5.2. Research limitations

This study encountered two limitations:

1. In the literature review, the previous studies that specifically addressed the issue of CBA
were all western-based. In India, in particular, no previous studies were found on this specific
issue. This makes the current research the first of its nature in India. Even on the general issue of
television advertising, only few studies were found.

2. The empirical work was based on a student sample. Clearly, it can be understood that
generalization of results is limited to the student population, not the whole market. In addition,
the sample size was relatively small (31) due to limited resources. Obviously, this adds to the
problem of generalization.
ANNEXURE-Questionnaire

Section-1

Q1: Rate the following on a scale of 1to 5 where ((1=strongly disagree, 2=disagree, 3=neutral,
4=agree and, 5=strongly agree).

a. Advertising, which uses celebrities, attracts my attraction.

b. Advertising, which uses celebrities, is popular.
c. Advertising, which uses celebrities, is more attractive.
d. Advertising, which uses celebrities, is enjoyable
e. Attractive celebrities in Advertising make me pay more attention to product details
f. CELEBRITIES helps me make the buying decision
g. CELEBRITIES helps me remember the endorsed brand during shopping
h. CELEBRITIES increase acceptance of endorsed brands
i. CELEBRITIES increase my awareness of endorsed brands.
j. The character of a celebrity influences the image of the endorsed brand
k. The more meaningful the match-up between the celebrity and the endorsed brand, the
greater the trust in the brand

Q2: ………………. is the famous celebrity singing La...lalala...la...la la la la...! for a

soap advertisement.

Q3: La...lalala...la...la la la la...! is a jingle of which brand of soap?

Q4: Who would you think is an ideal promoter for sports shoes?

a. Preity Zinta

b. Kapil Dev

c. JohnAbrahim

d. Baichung Bhutiya

Q5: If your favorite soft-drink brand appoints Shakti Kapoor as its brand ambassador, will you
still consume it?

a. Yes

b. No
Q6: If your favorite celebrity endorses brands like Teg-Huier, Parker, Emami etc. and now
decides to promte Priyagold biscuits (which you know is a sub standard brand) then, will you
consider his word of mouth for product which a premier brand.

a. Definitely Yes

b. Definitely No

c. Confused

Section -2

Customer demographics

1. Sex

a. Male b. Female

2. Age:

a) Below18 b) 18-25 c) 26-35 d) 36-50 e) 51 and above

3. Qualification:

a) Illiterate b) Xth or Less c) Xth - Graduation d) Graduation/Higher

4. Income Level

a) Below INR 2 Lacs b) INR 2.0-5.0 Lacs c) INR 5.0-10.0 Lacs d) Above 10.0 Lacs
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