A

Research Project report

On
“IMPACT OF CELEBRITY ENDORSEMENTS ON
CUSTOMER PURCHASE”

In partial fulfillment of paper CP-402 for the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)
(Session 2008-2010)

Under the guidance of: Submitted By:

DR.HEMANT SHARMA NEHA SHARMA
(Associate Professor , MMIM) ROLL NO: 1208709

SUBMITTED To:

MAHARISHI MARKANDESHWER INSTITUTE OF

MANAGEMENT MULLANA, (AMBALA)

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 DECLARATION

I NEHA SHARMA, hereby declare that, the project report entitled " Impact of celebrity
endorsement on customer purchase” submitted by me in the partial fulfillment of the
requirement for the degree of Master of Business Administration to MM University,
Mullana is original work conducted by me and all data & facts contained in this report
are original to the best of my knowledge.

I have not submitted this report to any other institute for award of any degree or diploma.

NEHA SHARMA
1208709
MBA 4th sem

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 CERTIFICATE

This is certify that the project work done on “Impact of advertising done by
celebrities” submitted to MM university, Mullana by NEHA SHARMA in the partial
fulfillment of the requirement for the award of degree of Master of Business
administration is a bonafide work carried out by her under my supervision and guidance.
This work has not been submitted any where else for any other degree diploma.
I wish her success in her future.

Mr. Hemant Sharma

Faculty, MMIM

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 Acknowledgement

Words are often too weak mode of revealing one’s deep feelings .As the intensity of
sentiments deeps, we fumble for words and full in expressions. The same difficulty is
being expressed by me as I feel to acknowledge my project guide Mr. Hemant Sharma,
who guided me in this project. I am sincerely thankful to her for her help for the
completion of this project

I am also thankful to my friends who have encouraged me and give me their timely help
and cooperation. Their suggestions have been very useful in refining the material.

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 CONTENTS

TITLE PAGE NO.

 Declaration 2
 Certificate 3
 Acknowledgement 4
 Executive Summary 6-8
 Introduction 10-19
 Review of Literature 21-22
 Research Methodology 24-28
 Selection of the topic 24
 Objective of the study 24
 Sampling Procedure and Design 25
 Method of Data Collection 26-27
 Analysis and Interpretation of Data 27
 Scope of the Study 28
 Significance of the Study 28
 Limitation of the Study 28
 Analysis and Interpretation 30-44
 Findings and Conclusion 46
 Suggestions and Recommendations 48
 Annexure 50-51
 Bibliography 52

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 Executive Summary

Celebrities are people who enjoy public recognition by a large share of certain
group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special
skills are just examples and specific common characteristics cannot be observed, it can be
said that within a corresponding social group celebrities generally differ from the social
norm and enjoy a high degree of public awareness. This is true for classic forms of
celebrities, like actors (e.g. Meg Ryan, Pierce Brosnan), models (e.g. Naomi Campbell,
Gisele Buendchen), sports athletes (e.g. Anna Kournikova, Michael Schumacher),
entertainers (e.g. Oprah Winfrey, Conan O’Brien) and pop stars (e.g. Madonna, David
Bowie) – but also for less obvious groups like businessmen (e.g. Donald Trump, Bill
Gates) or politicians (e.g. Rudy Giuliani, Lee Kuan Yew).
Celebrities appear in public in different ways. First, they appear in public when
fulfilling their profession, e.g. Pete Sampras, who plays tennis in front of an audience in
Wimbledon. Furthermore, celebrities appear in public by attending special celebrity
events, e.g. the Academy Awards, or world premieres of movies. In addition, they are
present in news, fashion magazines, and tabloids, which provide second source
information on events and the ‘private life’ of celebrities through mass-media
channels(e.g. Fox 5 news covering Winona Ryder’s trial on shoplifting, InStyle). Last but
not least, celebrities act as spokespeople in advertising to promote products and services

A central goal of advertising is the persuasion of customers, i.e., the active

attempt tochange or modify consumers’ attitude towards brands. In this respect, the
credibility of an advertisement plays an important role in convincing the target audience
of the attractiveness of the company’s brand. Pursuing a celebrity endorsement strategy
enables advertisers to project a credible image in terms of expertise, persuasiveness,
trustworthiness, and objectiveness.
To create effective messages, celebrity advertisers also have to consider the
attractiveness of the spokesperson. Source attractiveness refers to the endorser’s physical
appearance, personality, likeability, and similarity to the receiver, thus to the perceived

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social value of the source. The use of (by corresponding standards) attractive people is
common practice in television and print advertising, with physically attractive
communicators having proved to be more successful in influencing customers’ attitudes
and beliefs than unattractive spokespersons.
This behavior mainly goes back to a halo effect, whereby persons who perform well on
one dimension, e.g. physical attractiveness, are assumed to excel on others as well, e.g.
happiness and coolness. By proving in her study that each source has different effects on
consumers’ brand perceptions, however warns, that these source dimensions of the
celebrity endorser could be treated indistinctive. She therefore urges to pursue a
systematic strategy of celebrity-spokesperson-selection. This raises the question which
famous person to select to promote a company’s brand. The next paragraph examines
whether, and under what conditions celebrities are appropriate in endorsing products.

Marketers pay millions of dollars to celebrity endorsee hoping that the stars will bring
their magic to brand they endorse and make them more appealing and successful. But all
celebrity glitter is not gold.

Celebrity sources may enhance attitude change for a variety of reasons. They may attract
more attention to the advertisement than would non-celebrities or in many cases, they
may be viewed as more credible than non-celebrities. Third, consumers may identify with
or desire to emulate the celebrity. Finally, consumer may associate known characteristics
of the celebrity with attributes of the product that coincide with their own needs or desire.

The effectiveness of using a celebrity to endorse a firm's product can generally be

improved by matching the image of the celebrity with the personality of the product and
the actual or desired serf concept of the target market.

There are a number of studies beind done on “Celebrity endorsements”.

Different studies reveal different aspects of Celebrity Endorsement. In this study I shall

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be studying the impact of Celebrity Endorsement on customer purchases. I shall also be
using a number of past studies being done on this topic.
Globally , the celebrity endorsement game has come a long way since the UK’s Queen
Victoria endorsed Cadbury’s Cocoa in the 19th century. In

India, though, the endorsement game is still in its infancy with a major fillip coming in
the last five years when it has become a favourite tool for Indian marketers. Industry
veterans say that the talent management — endorsements, appearances and
performancesis well on its way to become a Rs 1,000 crore business. It’s the top 50
celebrities who garner more than 80% of all endorsement money.

Celebrity endorsers in India fall in three buckets. One set of celebrities are clear that they
want money. That is, they will endorse almost any decent brand if the price is right
(Shahrukh Khan, Amitabh Bachchan, Shahid Kapoor, Akshay Kumar). So concepts like
brand fit do not bother them as brand managers force-fit their image attributes to what
suits their products or revel in statements like “but his appeals cuts across all segments,
geographies, age groups” .

Then there are stars like Aamir Khan, John Abraham and Ranbir Kapoor who are true to
their image attributes and usually work with brands whose traits they think suit their
image (Till date Ranbir has reportedly refused ICICI Bank, Minto, Coca-Cola and
Chevrolet). These men are also deeply involved in taking the decisions of endorsements.
The third set comprises the smaller stars, the ones that don’t have any positioning and are
interchangeable (Neil Nitin Mukesh, Zaheer Khan, Irfan Khan).

In the last few years, as demand for the top celebs shot through the roof, their rates too
looked skywards. Top stars today charge anywhere between Rs 1–1 .5 crore a day and
industry executives say that even during the slowdown, the rates didn’t slide but kept
growing albiet, at a slower pace. “The stars get a disproportionate amount of money to
endorse a product. Their earning per day for endorsing a product is much higher than

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what they would earn in a day in a movie or a cricket match,” says Manish Porwal, ex-
CEO of Percept Talent Management.

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 CHAPTER -ONE

INTRODUCTION

Businesses have long sought to distract and attract the attention of potential customers
that live in a world of ever-increasing commercial bombardment. Everyday consumers
are exposed to thousands of voices and images in magazines, newspapers, and on
billboards, websites, radio and television. Every brand attempts to steal at least a fraction
of an unsuspecting person's time to inform him or her of the amazing and different
attributes of the product at hand. Because of the constant media saturation that most
people experience daily, they eventually become numb to the standard marketing
techniques. The challenge of the marketer is to find a hook that will hold the subject's
attention.
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Also from a marketing communications (marcoms) perspective, it is vital that firms
design strategies that help to underpin competitive differential advantage for the firm's
product or services. Accordingly, marcom activities back-up other elements in the
marketing mix such as designing, branding, packaging, pricing, and place decisions in
order to attempt to create positive effects in the minds of the consumers. In helping to
achieve this, use of celebrity endorsers is a widely used marcom strategy.

Companies invest large sums of money to align their brands and themselves with
endorsers. Such endorsers are seen as dynamic with both attractive and likeable qualities
(Atkin and Block, 1983), and companies’ plan that these qualities are transferred to
products via marcom activities (Langmeyer & Walker, 1991a, McCracken, 1989).
Furthermore, because of their fame, celebrities serve not only to create and maintain
attention but also to achieve high recall rates for marcom messages in today's highly
cluttered environments (Croft et al, 1996, Friedman and Friedman, 1979).

Initially, this strategy seems to be low risk / extra gain situation, but as with any dynamic
marketing strategy, there are potential hazards. Individuals can change and endorsement
relations can sour.

DEFINING THE MEANING & SCOPE

OF THE TOPIC

Defining a 'Celebrity'

Celebrities are people who enjoy public

recognition by a large share of a certain
group of people. Whereas attributes like
attractiveness, extraordinary lifestyle or
special skills are just examples and specific
common characteristics cannot be observed,

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it can be said that within a corresponding social group, celebrities generally differ from
the social norm and enjoy a high degree of public awareness.

The term Celebrity refers to an individual who is known to the public (actor, sports
figure, entertainer, etc.) for his or her achievements in areas other than that of the product
class endorsed (Friedman and Friedman, 1979). This is true for classic forms of
celebrities, like actors (e.g., Amitabh Bachchan, Shahrukh Khan, Rani Mukherjee, Preity
Zinta, Aamir Khan and Pierce Brosnan), models (e.g., Mallaika Arora, Lisa Ray,
Aishwarya Rai, Naomi Campbell, Gisele Buendchen, etc), sports figures (e.g.,Kapil Dev,
Sachin Tendulkar, Zaheer Khan, Sourav Ganguly, Anna Kournikova, Michael
Schumacher, Steve Waugh, etc), entertainers (e.g., Cyrus Broacha, Oprah Winfrey, Conan
O'Brien), and pop-stars (e.g., Madonna, David Bowie) - but also for less obvious groups
like businessmen (e.g., Donald Trump, Bill Gates) or politicians.

Celebrities appear in public in different ways. First, they appear in public when fulfilling
their profession, e.g., Vishwanathan Anand, who plays chess in front of an audience.
Furthermore, celebrities appear in public by attending special celebrity events, e.g., award
ceremonies, inaugurations or world premieres of movies. In addition, they are present in
news, fashion magazines, and tabloids, which provide second source information on
events and the 'private life' of celebrities through mass-media channels (e.g., Smriti Irani
being regularly featured in various publications). Last but not least, celebrities act as
spokes-people in advertising to promote products and services, which is referred to
celebrity endorsement.

'CELEBRITY ENDORSEMENT'

McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys
public recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement (marcoms), is useful, because when celebrities are
depicted in marcoms, they bring their own culturally related meanings, thereto,
irrespective of the required promotional role."

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Friedman and Friedman (1979) found empirical evidence that, in the promotion of
products high in psychological and/or social risk, use of celebrity endorser would lead to
greater believability, a more favorable evaluation of the product and advertisement, and a
significantly more positive purchase intention.

Thus, companies use celebrities to endorse their products, however, there are deeper
attributes that are involved in celebrity endorsement. Celebrities

CELEBRITY ENDORSEMENT IN INDIA

Phase 1: The Pioneering Phase (1950-1980)

This phase was characterized by: -
1. Limited channels of communication
2. Demand exceeded supply
3. Heavy regulation and governmental regulations
Some bigger companies from their global experience introduced the concept of celebrity
endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the
fifties.

Phase2:TheGrowthPhase(1980-1990)
The introduction of television added a variable effective medium of communication.
Indian stars going global with events like Asiads and World Cup victory. Vimal, Thums-
Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early
days of mass advertising. There was a spurt of advertising, featuring stars like Tabassum

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(Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive
Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).

Phase3:Globalisation:-

In highly competitive markets, the following realities about brand management

exist:-

1. Product differentiating factors are duplicable and imitable.

2. All long existing and successful brands imbue their products with a meaning.

The meanings can not be ephemeral expressions but they have to be strategically decided
consistent expressions where opportunity exists. This explains why a company like Nirma
was not able to launch its tooth-paste product.

Therefore, for celebrity endorsements to work effectively there are some fundamental
ground rules: -

 The brand promise and the brand personality should be clearly articulated.
 The communication objectives for the campaign should be frozen.
 Focus must be on the synergy between the brand and the celebrity image
 Establish explicitly what the celebrity is going to communicate

Framework to Make Effective Celebrity Endorsement Program

With the cut-throat competition and continuously changing market dynamics, one has to
assess the market conditions and re-evaluate its current marketing strategies such as its
portfolio of celebrity endorsement. The action plan should be able to answer the
following key questions: -

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 Are the celebrity endorsements programs result driven?

How to quantify the value generated by the celebrity endorsements?

 Are customers able to connect the brand with the celebrity?

DECISION MAKING PROCESS & PURCHASE DECISION

Decades ago, John Dewey (1910) conceptualised decision-process behavior as problem

solving - thoughtful, reasoned action focused on need satisfaction. As Ajzen and Fishbein
(1980, p.5) put it, "Human beings are usually quite rational and make systematic use of
the information available to them... People consider the implications of their actions
before they decide to engage or not to engage in a given behavior."

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A lot of marketing research has shown that consumer decision follows the sequence of
need recognition, search for information, alternative evaluation, purchase, and then
outcome. The sequence can have major variations, however, from one situation to the
next in terms of the extent to which each of these steps is followed.

BRAND-TYPE MATCH FOR SUCCESS OF CAMPAIGNS

In India today, the use of celebrity advertising for companies has become a trend and a
perceived winning formula of corporate image-building and product marketing. This
phenomenon is reflected in the recent market research finding that 8 out of 10 TV
commercials scoring the highest recall were those with celebrity appearances.

A few examples:

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 Sachin Tendulkar-Adidas, Sourav Ganguly-Britannia, Leander Paes and Mahesh
Bhupati-J. Hampstead, Shah Rukh Khan-Pepsi, Sushmita Sen-Epson and Aishwarya
Rai-Coke. The effectiveness of the endorser depends upon the meaning he or she brings
to the endorsement process1.

An advertisement is a medium through which a brand gets a personality and endorsers are
perceived as the personalities of the brand. Therefore, as it is essential to bring a synergy
between an individual's outfit and his personality, the same way it is essential to bring a
synergistic effect between the brand and the endorser. For example, with the Cadbury's
worm issue, the brand wanted to build a trust amongst the customers in order to regain its
market share. They chose Amitabh Bachchan as an endorser to build that trust and in
order to regain their market share. According to the sales data, it was found out that the
right celebrity selection gave the right results to them.

Often celebrity endorsement in India is considered to develop required image which can
influence the decision making process of your customers. But due to the lack of
compatibility between the celebrity and brand, the celebrity can't do their part of job.
Instead, the celebrities confuse your target customers in their decision making process.
The impact of wrong celebrity endorsement is decline in competitive advantages of the
organization & huge loss both in terms of money (Advertising and other Marketing
Expenditure involving the celebrity & the Endorsement amount which are generally very
high and brand equity in India.

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Deesha Communications, with its strong expertise in celebrity endorsement study in
India, has developed a strong statistical model to conduct comprehensive feasibility study
for any endorsement. In the celebrity endorsement process, we understand the Brand
Objective of your brand, it's positioning in the industry and the budget allocated for the
endorsement in India. For an intelligent endorsement & strong compatibility between the
celebrity and the brand, we apply our own developed model to optimize the compatibility
between the brand and the celebrity, which is to enhance the brand equity influencing the
perception and purchasing decision-making process in a positive manner. In the process
we also consider all the risks involved with the celebrities before coming up with
celebrity endorsement solutions in India. We also provide consultancy to our clients to
utilize the celebrity endorsement in the best possible manner in the specified contract
duration.

Celebrity endorsements have several benefits, like building credibility and getting
attention of the public, which can translate into higher sales. Basically, celebrity
endorsements are being preferred for almost every kind of product categories, like
toiletries, telecom, readymade garments, razor blades, hotels, soft drinks and hard drinks
among others. The most of the big companies have developed a new strategy to enrol
celebrities and make them brand ambassadors of their products to increase the product
sale.

But, many risks have also been associated with such celebrity endorsements. The brand
will flop as quickly as it moved up in the market despite well-known celebrities
endorsing them. The film personalities who are well known to shape destinies cast
enormous influence on customers. The companies like Parker, ICICI and Dabur have
used Amitabh Bachchan remarkably well, while some others have been unable to exploit
his ‘Big B’ status. The endorsement of Hyundai Santro or Airtel by Shah Rukh Khan has
worked well for the actor as well as for the brands. Khan also canvassed the image of a
metro-sexual man when he was seen endorsing Lux soap, which was usually treated as a
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women’s soap earlier. Celebrity endorsement is, therefore, capable of manifesting both
favourable and adverse effects for the brands with which they associate.

When a celebrity is on the ascent it makes sense to hook the product to the star and derive
maximum benefits before the star status fades away. The returns of celebrity
endorsements, like any other advertising, are not easy to measure. The benefits accrue
over a period of time, with the celebrity campaigns and other factors contributing to the
overall increase in the brand value.

Celebrity endorsement is a strategy in brand communication where a celebrity acts as the

ambassador and spokesperson for a brand. By endorsing the brand, the celebrity is
certifying the brand's claim and position by extending his or her personality, popularity
and stature to the brand.

There are three essential aspects that brands must consider before embarking down the
road of celebrity endorsement:

1. Attractiveness of the celebrity

2. Credibility of the celebrity
3. Meaningful connection between the celebrity and the brand

If one were to examine India Inc's endorsement deals in light of these three aspects, they
don't hold up well; especially with respect to the third aspect. Very few of the
endorsement deals in place establish any connection at all between the celebrity and the
brand or product being endorsed.

It is easy to see why Indian celebrities have jumped on to the endorsement bandwagon
with gusto--greed is a powerful motivator. Understanding why Indian advertisers are so
gung ho about celebrity endorsements, however, is a mystery. There is very little to
suggest that the current crop of endorsement deals is effective or well engineered.

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deals is effective or well engineered.

The success of any brand-celebrity pairing depends heavily on the credibility of the
connection between the brand and the celebrity. Successful brand-celebrity collaborations
come from the integrity of the relationship between brand and celebrity.

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 CHAPTER-TWO

Literature Review

 A study done by Pamela M. Homer and Rajeev Batra. in 2004 as The Situational
Impact of Brand Image Beliefs(Journal of Consumer Psychology, Vol. 14, No. 3,
pp. 318-330, 2004) states that Results have implications for the growing literature
on different types of brand imagery associations, as well as for future research on
the processing of nonverbal stimuli, the measurement of non-functional brand
beliefs, and consumer inference processes.

 A study done by Angela Byrne, Maureen Whitehead, Steven Breen in 2003 as The
naked truth of celebrity endorsement (Journal British Food Journal, Volume: 105,
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 Issue: 4/5, Page: 288 – 29) states that the field research with consumers and key
informant interviews with advertising agency personnel who identified the criterion
for the choice of Jamie Oliver. The extent to which the market place recognizes and
consumers associate themselves with the image Jamie projects as a celebrity
endorser for J. Sainsbury is explored.

 A study done by Erdogan, Zafer B as Celebrity Endorsement in 1999 (Journal of

Marketing Management, Volume 15, Number 4, May 1999 , pp. 291-314) seeks to
explore variables, which may be considered in any celebrity selection process by
drawing together strands from various literature. The result shows that trust quality
is the most wanted variable for selecting a celebrity for endorsement of any product
or service.

 A study done by Kathleen A. Farrell, Gordon V. Karels, Kenneth W. Montfort,

Christine A. McClatchy as Celebrity performance and endorsement value: the case
of Tiger Woods in 2000 (Journal: Managerial Finance, Year: 2000 ,Volume: 26
,Issue: 7 ,Page: 1 – 15) states that We do not find a relationship between Tiger’s
tournament placement and the excess returns of Fortune Brands (parent of Titleist).
This is likely due to Titleist being a very small contributor to the total market value
of Fortune Brands. We also fail to find a significant relationship for American
Express suggesting the market does not view a golfer endorsing financial services
as credible. We do, however, find a positive and significant impact of Tiger’s
performance on Nike’s excess returns suggesting that the market values the
additional publicity that Nike receives when Tiger is in contention to win.

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 A study done by Brian D. Till as Using celebrity endorsers effectively: lessons
from associative learning in 1998 (Journal: Journal of Product & Brand
Management ,Volume: 7 ,Issue: 5 ,Page: 400 – 409) states that principles such as
repetition, overshadowing, blocking, belongingness, CS pre-exposure, association
set size, and extinction are introduced and linked to specific managerial
suggestions for improving the use of celebrity endorsers.

 A study done by David H. Silvera, Benedikte Austad as Factors predicting the

effectiveness of celebrity endorsement advertisements (Journal: European Journal
of Marketing,Year: 2004,Volume: 38 ,Issue: 11/12 ,Page: 1509 – 1526) .
Participants in two experiments examined written endorsement advertisements and
were asked to infer the extent to which the endorser truly liked the advertised
product and to rate the endorser's attractiveness, similarity to themselves, and
knowledge of the product. Attitudes toward the advertisement, the endorser and the
product were also measured. The resulting model indicated that product attitudes
were predicted by inferences about the endorser's liking for the product and by
attitudes toward the endorser.

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 CHAPTER-THREE

RESEARCH METHODOLOGY
“Research is a careful investigation or inquiry specially through search of new
facts”.
Research refers to search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on specific topic.
The advanced learner’s dictionary of current English lays down the meaning of
research as “a careful investigation or inquiry or specially through search for new facts in
any branch of knowledge”.

 Selection of the Topic:

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 Selecting this topic was quite difficult for us because it needs a
vast study but I selected this topic because of its wider scope .My guide also heleped
me to select this topic.

 OBJECTIVES:

Major objective:

o To find the Impact of advertising done by CELEBRITIES. Impact of celebrity’s

Personality on final purchase decision of consumer.

Other objective:

 To study what factors influence the purchase decision of consumers?

 To find the effect of celebrities on consumer purchasing decisions.

 To find out the most powerful celebrity for advertisement.

 To find out the comparative study of all the celebrity.

 SAMPLE DESIGN:
Sampling is defined as the selection of some part of an aggregate. Sampling in simply the
process of learning about the population on the basis of a sample drawn from it. Thus, in
sampling instead of every unit of universe only part of universe is studied and the
conclusion are drawn for the entire universe.

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In area of AMBALA, I did my survey . So these were the respondents where the study
was to be focused. For this purpose I did a survey of these respondents. These
respondents were visited in outlet and required data was collected from them.

SAMPLE SIZE: 100 RESPONDENTS

SAMPLING TECHNIQUE: Non – probability

 METHODOLOGY:
 Data collection
 Exploratory
 Random sampling
 Pilot survey through questionnaire
 Identify the attributes which play a significant role in building the consumer
perception
 Identified factors

 METHOD OF COLLECTING DATA:

The method used by me to collect the information is the secondary source.
1) Primary data, Questionnaire and Survey
2) Secondary data from newspapers, internet and magazines

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DATA SOURCES
These were to type of data sources which were helpful in preparing this project report.

i. Primary Data
ii. Secondary Data

The research plan can call or gathering secondary data, primary data or both. Secondary
data consist of information that already exists somewhere having been collected for
another purpose.

Primary Data:
This marketing research project involved some primary data collection. The normal
procedure was to contact the respondent and have their personal interviews together
relevant information on the research topic. In this project the data collected through
various respondents in this field is used as primary data.

Secondary Data:
Some of the records available within the internet on the topic acted as a source of
secondary data.

 TYPES OF RESEARCH DESIGN:

In my project work I used exploratory research, as it aim to answering question about
sale, brand availability, service quality, distribution pattern etc.

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For conducting this study, Exploratory Research design was used, since: -

 It is natural.
 It is flexible.
 It is useful to find out the most likely alternatives.
 It is appropriate, when hypothesis have been established.
The objective of exploratory research is to find out new ideas, it is important to give
respondents to greatest freedom of response have conducted individually or in depth
interview, by which respondent asked to project themselves into a particular situation.

RESEARCH DESIGN
A research design is the specification of methods & procedure for acquiring the
information needed. This is overall operation pattern or frame work that stipulates
information is to be collected from which sources and by what procedure.

 ANALYSIS
 Ideal mix of attributes according to customers
 Attribute mix which leads to store change
 Use of Pie Charts

 SCOPE OF THE STUDY:

 Knowing about the advertising world
 Knowing about the celebrity aspect of advertising
 Use of this study for further study

 SIGNIFICANCE OF THE STUDY:

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  Knowledge of attributes to used for selecting a celebrity for an
advertisement
 Knowledge of benefits of using celebrities in advertisements
 Effect of using celebrities in advertisements

 LIMITATIONS OF THE STUDY:

 Time span for the study was limited
 Ignorance by some people
 Limited sources for study
Every coins has two sides in the same way while during our project analysis we also
come across such things that created problem for us. These are listed below:-
1. Sample Size:
Sample size was very small so the result may not be generalized for the whole
population.
2. Time Factor:
To carry out the project more time is required so as to gather and
compare data from every possible source because of less time the study has a
limited scope.
3. Geographical area covered in the survey was limited.
4. Biasness on part of the respondents can be there.

Many respondents wanted an additional aid to fill in response. So the information

gathered may include some errors.

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 CHAPTER-4

ANALYSIS AND INTERPRETATION

1. Education.
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 a. Graduate c. Under Graduate
b. Post graduate d. Other

QUALIFICATION NO.OF RESPONDENT

GRADUATE 60
POST GRADUATE 20
UNDER GRADUATE 10
OTHER 10

INTERPRETATION: This figure shows that most of the respondents are graduate.

2. Occupation.
A. Businessman C. Professional
B. Service man
D. Other

OCCUPATION NO.OF RESPONDENT

BUSINESSMAN 30

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 SERVICE MAN 40
PROFESSIONAL 20
OTHER 10

INTERPRETATION: This figure shows that most of the respondents are service
man.

3. Age
a. 0-20 b. 21-40
c. 41-60 d. 60 & above

Age No. of Respondents

0-20 12
21-40 42
41-60 28
61 &above 18

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 NO OF
Gender RESPONDENTS
Male 35
Female 65

INTERPRETATION: The figure shows that most of the respondents are from 21- 40
years of age.

4. Gender

a. Male b. Female

33
INTERPRETATION: According this figure the number of female in respondents are
more.

5. Income

a. 0-10000 b. 10001-20000

c. 20001-30000 d. 30001 & above

NO. OF
Income RESPONDENT
0-10000 54
10001-20000 18
34
 20001-30000 22
30000 & above 6

INTERPRETATION: This figure says that most of the respondents have income from
0-10000 rupees.

6. Do you watch Television?

NO. OF
Response RESPONDENT
Strongly Agree 70
Agree 30
Neutral 0
Disagree 0
Strongly Disagree 0

35
INTERPRETATION: This figure says that most of the respondents watch television.

7. Do you change channel whenever an advertisement flashes on T.V?

NO. OF
Response RESPONDENT
Strongly Agree 48
Agree 23
Neutral 4
Disagree 22
Strongly Disagree 3

36
INTERPRETATION: According to this figure most 48 people agree that they change
channel whenever an advertisement appears on T.V.

8. Have you seen celebrities in advertisements?

NO. OF
Response RESPONDENT
Strongly Agree 62
Agree 21
Neutral 17
Disagree 0
Strongly Disagree 0

37
INTERPRETATION: According to this most of the people agree that they have seen
celebrity ads.

9. Do you think celebrities make ads more effective?

NO. OF
Response RESPONDENT
Strongly Agree 56
Agree 28
Neutral 6
Disagree 7
Strongly Disagree 3

38
INTERPRETATION: According to this figure 56% respondent agree that celebrities
make ads more effective.

10. Do you think celebrity ads effect the purchase decision of a customer?

NO. OF
Response RESPONDENT
Strongly Agree 49
Agree 35
Neutral 5
Disagree 8
Strongly Disagree 3

39
INTERPRETATION: This figure shows that a good percentage of respondents agree
that celebrity ads effect their purchase decision.

11. Have you ever bought any product after being seen it endorsed by a celebrity?

NO. OF
Response RESPONDENT
Strongly Agree 61
Agree 20
Neutral 6
Disagree 13
Strongly Disagree 0

40
INTERPRETATION: According to this figure 61% of respondents agree that they have
purchased products after being seen them endorsed by a celebrity.

12. Do you think the celebrities who advertise few brands are trust worthier?

NO. OF
Response RESPONDENT
Strongly Agree 58
Agree 12
Neutral 6
Disagree 21
Strongly Disagree 3

41
INTERPRETATION: According to this figure 58% respondents agree that they think
the celebrities being endorsed are trustworthier.

13. Do you think the celebrities endorsed in ads are attractive enough in the respective
ads?

NO. OF
Response RESPONDENT
Strongly Agree 51
Agree 31
Neutral 9
Disagree 2
Strongly Disagree 7

42
INTERPRETATION: According to this figure 51% of respondents agree that the
celebrities endorsed in ads are attractive enough in the respective ads.

14. Do you think the celebrity endorsement helps in Brand recall?

NO. OF
Response RESPONDENT
Strongly Agree 44
Agree 35
Neutral 8
Disagree 9
Strongly Disagree 4

43
INTERPRETATION: According to this figure 44% of respondents agree that
the celebrity endorsement helps in Brand recall.

15. Do you think the celebrity endorsement helps in better Brand recognition?

NO. OF
Response RESPONDENT
Strongly Agree 41
Agree 25
Neutral 11
Disagree 13
Strongly Disagree 10

44
INTERPRETATION: According to this figure 41% of respondents agree that the
celebrity endorsement helps in better Brand recognition.

CHAPTER-5
45
 FINDINGS AND CONCLUSION

FINDINGS
1. Majority of respondent associate quality of product with the celebrity, which shows
that celebrity advertisement, is really effective as such consumers easily trust ads.
2. Majority of purchasing decisions were influenced by; advertising followed by
friends and family.
3. A major part of the sample taken thinks that celebrity ads are more effective.

CONCLUSION

Companies using celebrities for promoting their products and to increase the sale of their
products is Celebrity Advertising.

46
In India today, the use of celebrity advertising for companies has become a trend and a
perceived winning formula of corporate image building and product marketing.
As main objective of my research is to find the effect of celebrities on consumer
purchasing decisions. And through this research i have found that multiple endorsements
do clutter the minds of the consumer.
Celebrity endorsements do work in the Indian scenario. The level and the magnitude of
the effect vary with the celebrity and the product category but most endorsements have a
favorable impact.

CHAPTER-6
47
 SUGGESTIONS AND RECOMMENDATIONS

 Companies should select celebrities matching to the attributes of the product

 The celebrity should be who can be recognized by customers
 The celebrity should be one who should be popular among the audience
 Over use of celebrity endorsement should be avoided.

48
49
 Annexure (s)

QUESTIONNAIRE

Name……………..

1. Education.
a. Graduate c. Under Graduate
b. Post graduate d. Other

2. Occupation.
A. Businessman c. Professional
B. SERVICE man d. Ex-serviceman
e. Other
50
3. Age.
a. 0-10 c. 20-30
b. 10-20 d. 30-40
e. 40-50

4. Gender.
a. Male b. Female

5. Income.
a. 25000-50000 b. 50000-100000
c. 100000-150000 d. 150000-200000

Questions Strongly Agree Neutral Disagree Stro

Agree Disa
Ques1. Do you watch Tele Vision? 5 4 3 2 1

Ques2. Do you change the channel whenever an 1 2 3 4 5

advertisement flashes on T.V?
Ques3. Have you ever seen celebrities in 5 4 3 2 1

51
advertisements?

Ques4. Do you think celebrities make ads more 5 4 3 2 1

effective?
Ques5. Do you think celebrity ads effect the 5 4 3 2 1
purchase decision of a customer?
Ques6. Have you ever bought any product after 5 4 3 2 1
being seen it endorsed by a celebrity?
Ques7. Do you think the celebrities who 5 4 3 2 1
advertise few brands are trust worthier?
Ques8. Do you think the celebrities endorsed in 5 4 3 2 1
ads are attractive enough in the respective ads?
Ques9. Do you think the celebrity endorsement 5 4 3 2 1
helps in Brand recall?
Ques10. Do you think the celebrity endorsement
helps in better Brand recognition?

BIBLIOGRAPHY

BOOKS
1. Kothari C.R., “Research Methodology Methods and Techniques , Chapter 4, Page
55-58. Chapter 6, Page 95,100,111.\

WEBSITES
1. http://www.rediff.com/money/2003/dec/05guest.htm
2. http://ries.typepad.com/ries_blog/2007/07/celebrity-endor.html
3. http://www.helium.com/items/688146-advertising-getting-celebrity-endorsements-
for-your-products

52
JOURNALS
1. Rajeev Batra, Pamela M. Homer, Journal of Consumer Psychology, Vol. 14, No. 3,
pp. 318-330, 2004
2. Angela Byrne, Maureen Whitehead, Steven Breen, British Food Journal, Volume:
105 ,Issue: 4/5 ,Page: 288 – 29

3. Kevin Gwinner, International Marketing Review, 1997 ,Volume: 14 ,Issue: 3 ,Page:

145 - 158,

LIST OF TABLES

Sr. No Table Title Page No.

1 Respondent Qualification 26

2 Respondent Occupation 27

3 Respondent Age 28

4 Respondent Gender 29

53
 5 Respondent Income 30

6 Watching T.V response 31

7 Channel Changing response 32

8 Watching Celebrity Ad response 33

9 Celebrity Effectiveness response 34

10 Purchase Decision response 35

11 Product Purchase response 36

12 Celebrity Trustworthiness response 37

13 Celebrity Attractiveness response 38

14 Brand Recall response 39

15 Brand Recognition response 40

LIST OF FIGURES

Sr. No Figure Title Page No.

1 Framework to Make Effective Celebrity Endorsement Program 13

2 DECISION MAKING PROCESS & PURCHASE DECISION 14

3 Respondent Qualification 26

4 Respondent Occupation 27

5 Respondent Age 28

54
6 Respondent Gender 29

7 Respondent Income 30

8 Watching T.V response 31

9 Channel Changing response 32

10 Watching Celebrity Ad response 33

11 Celebrity Effectiveness response 34

12 Purchase Decision response 35

13 Product Purchase response 36

14 Celebrity Trustworthiness response 37

15 Celebrity Attractiveness response 38

16 Brand Recall response 39

17 Brand Recognition response 40

55