2010078 dissertation manshul kataria

8/2/2019 2010078 Dissertation Manshul Kataria

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DISSERTATION REPORT ON

STUDY ON CONSUMER PERCEPTION OF

CELEBRITY ENDORSEMENT AND ITS

IMPACT ON BRAND RECALL

IN FMCG SECTOR.

Report submitted for partial fulfilment of

The requirement of the course

Post Graduate Diploma Program in Business Management

(PGDM)

(SESSION: 2010-12)

SUBMITTED TO: SUBMITTED BY:

PROF. SARIKA TOMAR MANSHUL KATARIA

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DECLARATION

I, hereby declare that I have completed Dissertation on Consumer

Perception of Celebrity Endorsement and its impact on brand recall

in FMCG Sector As per the course requirement.

I further declare that the information presented in this project is true

and original to the best of my knowledge.

Date: ____________

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Place: ____________

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CERTIFICATE

This is to certify that the work incorporated in this project report entitledSTUDY ON CONSUMER PERCEPTION OF CELEBRITY

ENDORSEMENT AND ITS IMPACT ON BRAND RECALL IN

FMCG SECTOR Submitted by Mr. Manshul Kataria, Roll no 2010078

of PGDM 2010-12 is his original work and completed under the kind

supervision. All the material obtained from other sources as like as

secondary sources and this information is relevant in fulfilment of the

PGDM program.

SIGNATURE OF STUDENT SIGNATURE OF GUIDE

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(MANSHUL KATARIA) (SARIKA TOMAR)

Date: ______________

Place: ______________

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ACKNOWLEDGEMENT

I would like to thank my Faculty mentor PROF. SARIKA TOMAR for their

valuable guidance and support at all time.

I am thankful to all those people who provided me all the necessary

information directly or indirectly throughout this project report completed at

time

MANSHUL KATARIA

2010078

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NIILM-CMS

PGDM 2010-12

Table of Contents

Declaration 2

Certificate 3

Acknowledgement 4

Abstract 8

1. Introduction 11-21

1.1 Why Celebrity? 12

1.2 An insight into Indian FMCG Advertising. 13

1.3 Brand awareness 18

1.4 Successful celebrity endorsements for a brand

An Indian perspective 20

2. Literature Review 22-28

3. Research Methodology 29-31

3.1 Objectives 30

3.2 Hypothesis 30

3.3 Research Design 31

3.4 Sampling Plan 31

3.5 Questionnaire 31

3.6 Analytical Techniques 31

4. Results 32-43

5. Conclusion 44-47

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References 52-53

Appendix 1 & 2 54-60

List of Tables

Table No. Figure Page No

4.1 Aishwariya Rai for L'Oreal * Gender Crosstabulation 34

4.2 Saif Ali Khan for Lays * Gender Crosstabulation 34

4.3 MS Dhoni for Lays * Gender 35

4.4 Juhi Chawla for Kurkure * Gender Crosstabulation 35

4.5 What type of celebrity endorsement persuades you personally to

purchase products? Vs. Gender (Chi Square) 36

4.6 Do you believe that celebrity endorsement on advertisement

motivate you to purchase? * Gender Crosstabulation 36

4.7 Brand Recognition for Sports Celebrity vs Gender (Chi Square) 37

4.8 Brand Recognition for T.V. Actor vs Gender (Chi Square) 37

4.9 Gender * Attention seeker while watching TV for Sports

Celebrity (Chi Square) 38

4.10 Gender * Attention seeker while watching TV for Actor (Chi

Square) 38


motivate you to purchase? * Gender 38

4.12 Do you think that, celebrity give a true picture of products

through advertisement? * Gender Cross tabulation 38

4.13 Do you purchase celebrity endorsed brands to improve your

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social status? * Gender Cross tabulation 39

List of Charts

S.No. Figure Page No.

1.1 Top Categories in Celebrity Endorsement on TV during 2011 13

1.2 Share of Celebrity Endorsements on TV by Profession 14

1.3 Celebrities with maximum number of Advertisers endorsed on TV 14

1.4 Top brands in Celebrity Endorsements on TV 15

1.5 Volume growth of FMCG sector on TV 15

1.6 Share of FMCG sub sectors on TV 16

1.7 Fastest growing FMCG sub sectors on TV during 2011 16

1.8 Celebrity endorsement of FMCG brands on TV 17

1.9 Top new brands of FMCG sector on TV 17

4.1 What do you think is the reason for the companies to choose

celebrity endorsement for promoting their products? 33


motivate you to purchase? * Gender 39

4.3 Do you think that, celebrity give a true picture of products through

advertisement? * Gender Cross tabulation 40

4.4 Do you purchase celebrity endorsed brands to improve your social

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status? * Gender Crosstabulation 41

Abstract

Today, the use of celebrity endorsement has increased drastically. It has become an integral

part of almost every brands promotional campaign and a big marketing trend. Due to high

channel surfing, it is very difficult to keep the viewers attention for a long time and to

focus in a productive way.

While studying the rationale behind the increasing trend of celebrity endorsements across

the globe, researchers explore several dimensions of the celebrity endorsement technique.

The literature that was reviewed revealed that instant and better recall is one of the most

important benefits. Leading film and sports personalities are the preferred choice of the

Indian marketers for a better recall.

Need of research has been felt as there are conflicting views regarding the role of gender on

celebrity endorsement. There was no research found in the area of Delhi NCR in FMCG

sector.

This paper tries to explore various dimensions of celebrity endorsements. The purpose of

this study is to get an insight of the celebrity advertisements in FMCG sector because it is

contributing nearly 50% to T.V. advertisements in past few years.

This study emphasizes on the association between gender of respondent and his/her

preference of celebrity and to compare the sports celebrity with film stars. The research

design adopted in the study is Descriptive Research.

Data for the objective is collected through secondary and primary data sources. Secondary

data is through journals, websites. The primary data is collected through structured

questionnaires and the sample unit comprises of Consumers mostly of the age group 18-40,

both males and females.

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CONSUMER PERCEPTION OF CELEBRITY

ENDORSEMENT AND ITS IMPACT ON

BRAND RECALL IN FMCG SECTOR

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Chapter - 1

Introduction

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Introduction

Celebrity endorsements pull in hundreds of crores every year, and are widely preferred by

marketers to promote their products. Using celebrities for endorsing brands has become a

trend for building the brands as well as the company's image. Who are these celebrities?

And what does celebrity endorsement mean? A celebrity is a person who is well recognized

by the public, and has a reputation for his/her expertise in his/her chosen silos. Sports

persons and film stars fit the bill perfectly. Promotion of a company's products through

these celebrities is termed as celebrity endorsement. The company makes use of the

celebrity's characteristics and qualities to establish an analogy with the products specialties

with an aim to position them in the minds of the target consumers. Celebrity endorsement,

thus, is one of the powerful tools adopted by companies/marketers to consolidate their

brand(s) in the crowded marketplace. Consumers prefer to own a brand that has a good

reputation, and when someone like a famous film star or a sport star is associated with that

particular brand, it is obvious that the consumers will get attracted to it, because the

consumer wants to maintain some status, and feels that using a brand promoted by a star

can satisfy that longing.

1.1 Why Celebrity

There is a myth that celebrity endorsement is used to give a brand advantage over its

competitors. However, choosing a celebrity for this purpose requires considerable amount

of calculations. There should be something common between the brand and the celebrity

promoting it. Let us come to the main question as to why marketers use celebrities to

promote their brands. Is there a real need to associate a celebrity with the product? Yes

seems to be the resounding answer. This is because a company needs to create awareness

and interest in the consumers mind when it unveils a new brand or product. To be

successful, brands need to convince consumers that they carry a different image and value

from other competing products. In other words, brands have to show their true personality

to the potential consumer(s).

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An effective way to do this is through celebrity endorsements. As MG Parmeswaran,

executive director of FCB Ulka says, "As advertising professionals, we recommend

celebrity endorsements when the case is justified. There are many cases where you need to

use the celebrity to break out of a category clutter. At times, celebrity endorsement is used

to build credibility to the brand offer." People always wish to see their favorite stars and

marketers, and advertisers are quick to capitalize on such ideas. Endorsement of a

product/service by a celebrity gives out the message that it is as authentic and credible as

the celebrity is. The urge that people have of enjoying the same recognition and status like

their favorite stars is often the main reason for the increasing use of celebrities for

products/services endorsement.

1.2 An insight into India FMCG advertising

Figure 1.1

Top Categories in Celebrity Endorsement on TV during 2010

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Figure 1.2

S hare of Celebrity Endorsements on TV by Profession

During 2010,'Film Actress' led with 44 per cent share of 'Celebrity' endorsements on TV

followed by 'Film Actor' and 'Sports Person' with 41 per cent and 12 per cent share

respectively.

Figure 1.3 Celebrities with maximum number of Advertisers endorsed on TV

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'M S Dhoni' leads among the Celebrities in terms of endorsing number of advertisers on TV

during 2010. 'Shahrukh Khan' and 'Sachin Tendulkar' were at the 2nd and 3rd place

endorsing for 23 and 18 advertisers respectively during 2010.

Figure 1.4

Top brands in Celebrity Endorsements on TV

Figure 1.5

Volume growth of FMCG sector on TV

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Figure 1.6

Share of FMCG sub sectors on TV

Figure 1.7

Fastest growing FMCG sub sectors on TV during 2009

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Figure 1.8

Celebrity endorsement of FMCG brands on TV

Figure 1.9

Top new brands of FMCG sector on TV

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1.3 Brand Awareness

Brand recall is often referred to as a top-of-mind brand awareness or unaided recall (De

Pelsmacker et al., 2001). Top-of-mind brand awareness can be used as just the first brand

mentioned, which is similar to recall and referred to as possibly a poor mans market share

audit (Gruber, 1969) . One might also use a shortlist of top-of mind brands, giving theplace of the brand on the list a certain amount of salience. Brand recognition is also

referred to as aided recall or aided awareness (De Pelsmacker et al., 2001).

Consumer decision Making Process

Celebrity endorsements are impelled by virtue of the following motives:

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Instant Brand Awareness and Recall.

Celebrity values define, and refresh the brand image.

Celebrities add new dimensions to the brand image.

Instant credibility or aspiration PR coverage.

Lack of ideas.

Convincing clients.

The scope of a celebrity on the incumbent brand:

Simply stating, a brand is a differentiated product and helps in identifying your product and

making it stand out due to its name, design, style, symbol, color combination, or usually a

mix of all these.

Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have

to ferret the implicit nuances that act as sources of strong brand images or values:

Experience of use: This encapsulates familiarity and proven reliability.

User associations: Brands acquire images from the type of people who are seen

using them. Images of prestige or success are imbibed when brands are associated

with glamorous personalities.

Belief in efficiency: Ranking from consumer associations, newspaper editorials etc.

Brand appearance: Design of brand offers clues to quality and affects preferences.

Manufacturers name & reputation: A prominent brand name (Sony, Kelloggs, Bajaj,

Tata) transfers positive associations.

1.4 Successful celebrity endorsements for a brand-An Indian perspective

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The latter part of the '80s saw the burgeoning of a new trend in India brands started being

endorsed by celebrities. Hindi film and TV stars as well as sportspersons were roped in to

endorse prominent brands. Advertisements, featuring stars like Tabassum (Prestige

pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and

Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first ad to cash in on star

power in a strategic, long-term, mission statement kind of way was Lux soap. This brand

has, perhaps as a result of this, been among the top three in the country for much of its

lifetime.

In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating

the impediment that an unknown Korean brand faced in the Indian market. The objective

was to garner faster brand recognition, association and emotional unity with the target

group. Star power in India can be gauged by the successful endorsement done by Sharukh

for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, when S Kumars used

Hrithik Roshan, then the hottest advertising icon for their launch advertising for Tamarind,

they reckoned they spent 40 - 50 per cent less on media due to the sheer impact of using

Hrithik. Ad recall was as high as 70 per cent, and even the normally conservative trade got

interested.

In the Indian context, it

would not be presumptuous

to state that celebrity

endorsements can

aggrandize the overall

brand. We have numerous

examples exemplifying this

claim. A standard example here is Coke, which, till recently, didn't use stars at all

internationally. In fact, India was a first for them. The result was a ubiquitously appealing

Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra

advertising is only due to the sensuous Aishwarya. The Parker pen brand, which by itself

commands equity, used Amitabh Bachchan to revitalize the brand in India. According to

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Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan, Parker's sales

have increased by about 30 per cent.

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.

In India there is an exponential potential for a celebrity endorsement to be perceived as

genuinely relevant, thereby motivating consumers to go in for the product. This would

especially prove true if the endorser and the category are a natural lifestyle fit like

sportspersons and footwear, Kapil-Sachin and Boost or film stars and beauty products.

Rationale of proposed investigation

FMCG sector contributed 40% for T.V. advertising during 2010 & grew at 50 % from 2009

to 2010. Today, the use of celebrity endorsement has increased drastically in FMCG.

FMCG companies, which generally spend an average 10 per cent of revenues on

promotions.

It has become an integral part of almost every brands promotional campaign and a big

marketing trend. Celebrities are seen endorsing almost every product meant for selling.

Due to high channel surfing, it is very difficult to keep the viewers attention for a long

time and to focus in a productive way. Celebrities can bring quick memorability, recall and

recognition, and direct client connection with the audience.

This will help to explore various dimensions of celebrity endorsements in FMCG

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Chapter 2

Review of Literature

Literature Review

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Endorsement is a technique where a well-known or respected individual such as a celebrity

or an expert in the product or service area speaks on behalf of the company or the brand.

The endorser in an advertisement is the person, celebrity, spokesman, announcer and so on

who endorses and/or demonstrates the product.

Celebrities can be any famous, popular public figure or respected personality in the society

from any field. Mostly celebrities are from the world of films, television or sports. Though

Indian marketers heavily rely on film stars and cricketers, in other countries endorsements

are done by many celebrities which include authors, chefs, musicians, athletes, directors,

anchor persons, models, comedians, business personalities, politicians, consumer

advocates, etc. This is evident from a list of Top 100 global celebrities3 which includes

Oprah Winfrey (talking head/talk show anchor), Tiger Woods (golf player), Madonna

(musician), Rolling Stones (musician), Brad Pitt (actor), etc.

In order to establish the necessity of doing research in the current area an extensive

literature was reviewed and the results are summarized as follows:

One of the earliest studies on television advertising by Bauer & Greyser (1968) asked

respondents to count the advertisements that struck them as being offensive, annoying,

enjoyable or informative. Only 15% of the advertisements evoked positive reaction. About

72% of the advertisements were either considered enjoyable or informative. About 23% of

advertisements were perceived as being annoying and 4% were offensive. The study

included some 524 commercials. Responses were subjected to a Factor Analysis which

revealed that advertisements were (1) entertaining (2) personal relevance (3) disliked and

(4) warmth.

Schlinger (1979) developed a rating instrument, popularly called the VRP (Viewer

Response Profile) that looked at ad responses and classified them as entertaining, relevant,

alienating, empathetic, familiar, confusing and brand reinforcing. All the above mentioned

response profiles were built in an exploratory fashion, using principal components analysis

as the data reduction technique.

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McCracken (1989) believes that some celebrity endorsers work better than others due to

the better match or congruency between celebrity and product. Many researchers

acknowledge match-up or fit between the product and the endorser as an important factor

in determining celebrity advertising effectiveness (Kahle and Homer, 1985; Misra and

Beatty, 1990; and Till and Busler, 1998). According to Atkin and Block (1983), celebrity

endorsers have been found to produce more positive responses towards advertising and

greater purchase intentions. Freiden (1984) in his study quotes that celebrities are perceived

to be more trustworthy, believable, persuasive and likeable. Hence, they are more

influential and effective than anyone else.

In a study by Biel and Bridgwaters (1990) it was found that for consumer products like

foods and beverages the commercials had high scores on the meaningful and relevant

likeable scale. For non-food products the most important attribute for a successful

commercial was meaningfulness. For consumer durables warmth was an important

criterion to get noticed. Add to this, viewer involvement and perceived relevance too was

important if the commercials were to create the persuasion. The type of product advertised

too created an impact with food and beverage products having high likeability scores.

Many organizations take advertising testing very seriously. Since advertising is an

expensive proposition, the manner in which it works and the results it produces become

critical. In a quest to identify measures to predict or study the effectiveness of television

advertising (commercials) researchers have been trying to build relevant and reliable

measurement instruments that capture audience response to television advertising.

A study by Johar and Sirgy (1991) found that for consumers who are highly involved

with a product, utilitarian information was found to be more effective, and for consumers

who were not involved with the product, value expressive advertisements were found to be

more persuasive.

Ohanian (1991) reported that there were no significant main effects of gender in her study

of the impact of gender on consumers perceptions of a celebritys attractiveness,

trustworthiness, or expertise, nor on the likelihood of purchasing a product that was

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endorsed by a celebrity. In that study, no effort was made to match the celebrities used, in

terms of the domains with which they were associated (for example, matching male sport

celebrity and female sport celebrity; matching male entertainment celebrity and female

entertainment celebrity).

As per Jagdish Agrawal & Wagner A. Kamakura (1995) a research on The Economic

worth of Celebrity Endorsers: An Event Study Analysis has typically focused on theories

explaining how celebrity endorsements influence consumers attitudes and intentions. The

authors assess the impact of celebrity endorsement contracts on the expected profitability

of a firm by using event study methodology. Announcements of 110 celebrity endorsement

contracts were analyzed. Findings of the study indicate that, on average, the impact of these

announcements on stock returns is positive and suggest that celebrity endorsement

contracts are generally viewed as a worthwhile investment in advertising.

Till and Shimp (1998) suggested that repeated pairings of the brand endorser with the

brand should facilitate the celebrity and the brand becoming part of each others

association set. It was concluded that celebrity endorsement is not an easy option but needs

careful consideration of different dimension of advertising and promotional campaign.

Goldsmith (2000) suggested that celebrity credibility could be defined as the extent to

which a celebrity is perceived as having expertise relevant to the communication topic and

can be trusted to give an objective opinion on the subject.

Boyd and Shank (2004) investigated the effects of gender matching between consumers

and sports celebrity endorsers in an effort to determine whether this would affect

consumers perceptions of the attractiveness, trustworthiness, and expertise of the celebrity.

They found no significant effect on attractiveness or expertise, but a significant interaction

on trustworthiness; women rated female endorsers more favorably than male endorsers, and

men were more favorable in their evaluations of male endorsers. However, Boyd and

Shank (2004) opined that there should be replication of their study before any kind of

generalizations can be made, given certain shortcomings of that study. For example, they

lament: While we attempted to find ads that were similar, it is likely that the ads

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themselves and the endorsers used varied enough to create effects. In the case of the

endorsers used, the female endorser was a Caucasian swimmer, Amy Van Dyken, while the

male celebrity was Hispanic-American boxer Oscar de la Hoya. The authors recommend

the minimization of the potential for alternative explanations to gender of celebrity as the

factor generating the observed effects.

Peetz, Parks, and Spencer (2004) reported on a study in which they showed participants

pictures of certain athletes (Lance Armstrong, Mia Hamm, Michael Jordan, and Jackie

Joyner-Kersee) and asked these participants to identify and describe the athletes. They then

asked the participants whether they considered the athletes experts on products related to

the athletes sports, and whether the athletes could influence their purchase intentions.

Their study yielded some gender-based results: odds of identifying male athletes were

greater than those for identifying female athletes (4 times greater); male athletes were

perceived as being more influential on purchase intentions than female athletes; and male

respondents were more favorable toward the less well-known male athlete.

A study conducted by Tandon Mala & Sudeep Mehrotra (2005) on Impact of celebrity

endorsement on overall brand was aimed at providing the marketers with a quantitative

method for selection of the right celebrities to optimize the outcome for their advertising

campaigns. They developed three matrices in their paper Celebrity Positioning Matrix,

which gives the popularity and image details of a personality in the market Product

Positioning Matrix, which is the direct consequence of the brands competitive strategy

Area Correlation Matrix, which is the overall measure of match of brand and celebrity.

Choi & Rifon (2007) The credibility components are interconnected with other traits of the

celebrity and the image dimension which reflects good qualities e.g. pleasant, wise,

educated etc. produce sincere and positive perception of the celebrity in consumer minds.

Farida Saleem (2008) while studying celebrity endorsement in their article Impact of

gender and age on single and multiple celebrities endorsements believe that there is no

significant difference between male and female toward single or multiple celebrities ads

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similarly age is also not significantly associated with attitude toward ad, attitude toward

brand and purchase intentions for both single and multiple celebrities ads.

JUNG-GYO LEE (2008) studied how consumer characteristics, namely an individual's

own levels of enduring involvement with a product category, moderate schema congruity

effects. Two experiments were conducted to test these issues using two types of match-up

factors: physical attractiveness and expertise of a celebrity endorser. The results show that

celebrity endorsements are evaluated more favorably in terms of purchase intention when

there is a moderate mismatch than when there is either a complete match or an extreme

mismatch.

According to Meenakshi Aggarwal & Priya Jha Dang (2009) showed that an expert

celebrity was effective m creating more favorable responses on attitude towards the ad for

an expertise related product but had no effect on attitude towards the brand and purchase

intention. The impact of the expert celebrity on ad attitude was mediated by the perceived

expertise of the endorser. Results of the study provide support for the product match up

hypothesis developed m the West.

According to B. Raja Shekhar & N. Udaya Bhaskar (2009) indicated that celebrity

endorsements generated higher purchase intentions and positive attitudes toward the

advertisement in urban area compared to semi urban.

Gap Areas

Need of research has been felt as there are conflicting views regarding the role of

gender on celebrity endorsement.

There was no research found in the area of Delhi NCR in FMCG sector.

Little work has been done in FMCG sector and the literature emphasizes on the

need of research in the area as well.

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Because celebrities and brands have numerous characteristics, it stands to reason

that there might exist matches on certain dimensions and mismatches on other ones.

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Chapter 3

Research Methodology

Research Methodology

Data for the objective is collected through secondary data source and primary data sources.

Secondary data is collected through journals, websites. The primary data is collected

through structured questionnaires and the sample unit comprises of Consumers of different

age groups both males and females.

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3.1 Objective

Major research objectives are given below:

To analyze the effectiveness of celebrity endorsement in context to gender.

To study the association between gender of respondent and his/her preference of

celebrity.

3.2 Major Hypothesis (s)

The aim of this investigation is to assess the impact of gender both gender of the

consumer and gender of the endorser- on consumers attitudes and perceptions of celebrity

athlete endorsements. To what extent does gender of a target audience member influence

his/her response to an ad that uses a celebrity? Is there any effect of gender of celebrity and

gender of target audience member on response to celebrity endorsements? This section

seeks to develop testable hypotheses to help answer these questions.

Based on the above objectives the following hypothesis has been proposed:

H0: Respondents gender and his/her preference of celebrity type are independent.

H0: Respondents gender and celebrity type, i.e., sports or film personalities are

independent.

3.3 Research Design

The research design adopted in the study is Descriptive Research. The research is

conducted using a questionnaire designed to understand consumers views on celebrity

endorsement, measuring their attitude toward ad, attitude toward brand and their intentions

to purchase, brand recall.

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3.4 Sample

In order to collect primary data, self-administered questionnaire was used (Appendix 1)

Primary data is collected from 120 respondents from Delhi NCR region. The sampling

technique used in the research process is convenience sampling. The links of the online

questionnaire was posted on social networks, was sent through mail to contacts and others.

3.5 Questionnaire

In questionnaire few generic questions about source of information i.e. from where did the

respondents get the information about new FMCG products. To know which gender/age

group gives more time to T.V. Further questions were asked to know what are the reasons

the respondents think that companies choose celebrity endorsement for promoting their

products.

Question was asked to rank few celebrities along with the brand they endorse to know

whether genders responses are inclined towards a particular gender.

3.6 Analytical Techniques

The analysis part of the research is done with the help of bar graphs, and cross tabulation,

Chi square-test. While Graphs and charts would give a better representation of the data

collected, tests and cross tabs would help in analyzing a data to come to a conclusion.

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Chapter 4

Analysis

Analysis

Graph no. 4.1

Q 3 What do you think is the reason for the companies to choose celebrity

endorsement for promoting their products?

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This graph

shows that

maximum

respondents

49% and 48

%replied Easy

recognition of

products and

Brand Recall was the main reason for companies to choose celebrities to endorse their

products.


(Gender of celebrity)

Table 4.1

Aishwariya Rai for L'Oreal * Gender of celebrity

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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 4.244a 4 .374

Likelihood Ratio 4.560 4 .335

Linear-by-Linear

Association

.163 1 .686

N of Valid Cases 120

As it is clearly shown in the table that value is 0.374 which is greater than 0.05, which

means that there is no association between gender of respondent and his/her preference forgender of celebrity

Table 4.2

Saif Ali Khan for Lays * Gender of celebrity

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 1.925a

4 .750Likelihood Ratio 1.911 4 .752

Linear-by-Linear Association .006 1 .940


The value here is 0.750 which is greater than 0.05, this means that there is no associationbetween gender of respondent and his/her preference for gender of celebrity.

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Table 4.3

MS Dhoni for Lays * Gender

Gender

TotalMale Female

MS Dhoni for Lays Very Good 16 9 25

Good 30 12 42

Average 17 17 34

Poor 10 5 15

very Poor 2 2 4

Total 75 45 120

In this table also around 20% of male and female said that MS Dhoni is very good as brand

endorser for Lays. This table shows that gender is independent in choosing type of

celebrity.

Table 4.4

Juhi Chawla for Kurkure * Gender Crosstabulation

Gender

TotalMale Female

Juhi Chawla for Kurkure Very Good 26 20 46

Good 24 15 39

Average 13 3 16

Poor 8 5 13

very Poor 4 2 6

Total 75 45 120

33% male have responded that Juhi Chawla is very good for Kurkure and 40% female said

that she is very good.

Table 4.5

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What type of celebrity endorsement persuades you personally to purchase products?

Vs. Gender

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)





a. 0 cells (.0%) have expected count less than 5. The minimum expected count is

7.88.

As the value is more than 0.05 so it can be said that there is no association between

purchase decisions being influenced by celebrity and the gender of the respondents..

Table 4.6

Do you believe that celebrity endorsement on advertisement motivate

you to purchase? * Gender Crosstabulation

Gender

TotalMale Female

Do you believe that

celebrity endorsement on

advertisement motivate

you to purchase?

Stongly Agree 9 4 13

Agree 28 16 44

Neutral 19 12 31

Disagree 13 9 22

Strongly Disagree 6 4 10

Total 75 45 120

49% males and 44% females believe that they are motivated to purchase FMCG products

which is not much associated with gender of the respondent.


independent.

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Table 4.7

Brand Recognition for Sports Celebrity vs Gender

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)





As the value of Pearson Chi-Square is 0.094 which is greater than 0.05This proves that

their does not exist relationship between Brand recognition for Sports celebrity and gender

of the respondents.

Table 4.8

Brand Recognition for T.V. Actor vs Gender

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)





a. 4 cells (40.0%) have expected count less than 5. The minimum expected count is 2.25.

As Pearson Chi-squares value is 0.849 which is greater than 0.05 and this means that theirexist no relationship between Brand recognition for T.V. actor and gender of the

respondents.

Table 4.9

Gender * Attention seeker while watching TV for Sports Celebrity

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Chi-Square Tests




Linear-by-Linear Association 1.900 1 .168



Their exist no relationship between Gender and their responses for Sports celebrity as

attention seeker while watching TV as the value here is 0.595

Table 4.10

Gender * Attention seeker while watching TV for Actor

Chi-Square Tests




Linear-by-Linear Association 5.024 1 .025



Their exist no relationship between Gender and their responses for Actors as attention

seeker while watching TV as the value here is 0.111

Objective Wise Analysis


Table 4.11

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Do you believe that celebrity endorsement on advertisement motivate you to

purchase? * Gender

Gender

TotalMale Female

Do you believe that celebrity

endorsement on advertisement

motivate you to purchase?


Agree 28 16 44

Neutral 19 12 31

Disagree 13 9 22


Total 75 45 120

Chart 4.2

According to this table it can be interpreted that 49% males and 44%females believe that

Celebrity endorsement motivates them to purchase the products endorsed.

Table 4.12

Do you think that, celebrity give a true picture of products through advertisement? *

Gender Crosstabulation

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Gender

TotalMale Female

Do you think that, celebrity give

a true picture of products through

advertisement?


Agree 10 10 20

Neutral 23 7 30

Disagree 23 15 38


Total 75 45 120

Chart 4.3

22% males and 33% females believe that the celebrity gives them the true picture of the

Products endorsed, which means that advertisers have to take care that they choose the

celebrity which fits the products attributes and also they provide necessary information

about the products.

Table 4.13

Do you purchase celebrity endorsed brands to improve your social status? * Gender

Crosstabulation

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Gender

TotalMale Female

Do you purchase celebrity

endorsed brands to improve your

social status?


Agree 18 11 29

Neutral 18 15 33

Disagree 24 7 31


Total 75 45 120

Chart 4.4

37%females and 36% males responded that they purchase celebrity endorsed brands to

Improve their social status.


celebrity. (Gender)

Aishwariya Rai for L'Oreal * Gender

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Crosstab

Gender

TotalMale Female

Aishwariya Rai for L'Oreal Very Good 25 18 43

Good 40 17 57

Average 9 8 17

Poor 0 1 1

very Poor 1 1 2

Total 75 45 120

Juhi Chawla for Kurkure * Gender

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Crosstab

Gender

TotalMale Female

Juhi Chawla for Kurkure Very Good 26 20 46

Good 24 15 39Average 13 3 16

Poor 8 5 13

very Poor 4 2 6

Total 75 45 120

Saif Ali Khan vs M.S. Dhoni

Report

GenderSaif Ali Khan

for LaysMS Dhoni for

Lays

Male Mean 2.01 2.36

N 75 75

Std. Deviation .908 1.048

Female Mean 2.00 2.53

N 45 45

Std. Deviation 1.000 1.079

Total Mean 2.01 2.43

N 120 120

Std. Deviation .939 1.058

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Chapter 5

Results and Discussions

Demographic Data

Amongst the total 120 respondents, 62.5% are male and 37.5% are female

respondents.

Average age of respondents is 18-25 years. (80%)

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57% respondents are graduates and 22% are others.

Maximum respondents (49.2%) watch TV every day for 1-3 h, followed by 45%

respondents who watch TV for less than 1 h and only 6% respondents watch TV

for more than 3 h.

67.5 % of respondent are Student and 32.5% of respondent are Service/Business.

Listed below are the media types through which the respondents come to know about

FMCG products

o Print Media 36%

o Electronic Media 66%

o Word of Mouth 31%

o Others (Radio, Bill Board, Banner, Hoardings) 23%

Listed below are the reasons that the respondents thought is the reason for the companies to

choose celebrity endorsement for promoting their products.

o Easy recognition of products 48%.

o Brand Recall 39%.

o Cannot generate new ideas 13%.

o To be able to increase sales and profit 24%.

o To compete strongly 12%.

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When Brand recognition, Brand recall and Attention seeker was compared between Sports

and T.V. actor it was found that:

o Brand recognition for brands endorsed by T.V. actors are more than sports

celebrity.

o Brand Recall for T.V. actor and sports celebrity are more or less equal.

o Attention seeker while watching T.V. for both actors and sports celebrity

are more or less same.

Objective Wise Results


celebrity. (Gender)

Two female celebrities were compared endorsing different brands, and it was found

that the results do not vary much. In both the cases 33% male and around 40%

female said that the female celebrity that endorsed the product is very good.

According to analysis 49% males and 44% females believe that they are motivated

to purchase FMCG products which are not much associated with gender of the

respondent.


22.6% males and 33% females agree that celebrity give a true picture of the

products/brands they endorse.

36% male and 37% female agree that they purchase brands endorsed by celebrities

to increase their social status.

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49% male and 44%female agree that in some point of time they are motivated to

buy products endorsed by celebrities.


independent.

Null hypothesis is accepted that their exist no relationship between gender and celebrity

type, i.e. sports or film personalities are independent. (Table 4.7 4.10)


(Gender of celebrity)

Null Hypothesis is accepted that their exist no relationship between gender of respondent

and the preference of celebrity type. (Table 4.1 4.6)

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Chapter - 6

Conclusion

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Conclusion

Today TV is overcrowded by hundreds of private channels. Viewers thus have ample

options.

In India, a large portion of population is passionate about films and cricket.Cricket seems

the only sports activity in the country looking at the patronage it gets from the public.

Obviously there are huge numbers of fan followers for both cricketers and film stars.

However, when it comes to the comparison of film and sports personalities, field

performance seems more critical for sports personalities (cricketers) as it is immediately

reflected in their endorsement contracts. Research findings also reveal that film

personalities at least in India, are preferred over the sports personalities.

Through research it has been revealed that Saif Ali Khan has been ranked above MS

Dhoni, this supports the literature that celebrities are still preferred over sports person.

Electronic media is being considered as the most common source through which the

respondents got their information about new products in FMCG sector.

Film stars have the highest likability with 33.3% of responses followed by famous

personality and then sports person.

Majority of the respondents responded that they are motivated by celebrities to purchase

products and there is a positive impact of celebrity endorsement, but still 53 % are in the

neutral and disagreeing stage.

Their exist no relationship between gender of respondent and the celebrities gender. Also

from this research it was revealed that the gender of respondent and choice of celebrity

type are independent.

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Limitations and Future Scope

The primary limitations are related to the generalization of the research results. First

generalization issue is related to area of research i.e. Delhi NCR similar studies can be

conducted in other cities, towns of India to find out if there is any change in the perception

of the customers. Second issue is related to sample, as student sample has limited external

validity which limits the generalization of the results, since these students are graduate

students with greater levels of awareness and analytical thinking, it is possible that these

students are less influenced by celebrity endorsement as. Third generalization issue is

related to the stimulus, ads which were used as a stimulus were both male celebrity ads

featuring Saif Ali Khan and M.S. Dhoni to compare T.V. actors with sports celebrity, no

female sports celebrity was used to compare with T.V. actress.

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Recommendations

Because celebrities and brands have numerous characteristics, it stands to reason that there

might exist matches on certain dimensions and mismatches on other ones. As a

consequence, in selecting a celebrity endorser, advertisers should take into account not only

the attributes that are to be established as a primary link, but also assess the broader

meanings associated with an endorser.

Electronic media was preferred the most but print media is gaining popularity very

fast, so marketers must also concentrate a bit more on print media.

Public still cannot recall the brands to the extent it must be because of media clutter, which

must be taken care while designing advertisements, innovative ways of advertisement must

be taken care.

Both T.V. actors and sports celebrity have a high score on attention seeker while watching

T.V. which means that somewhere in the mind of consumers sports celebrities are being

able to make space as a brand endorser, which must be capitalized, and as was shown in

literature that in India cricketers and only a few other sports players are endorsing brands

which can be increased in coming periods because level of sports activity going up in India.

22% males and 33% females believe that the celebrity gives them the true picture of the

products endorsed, which means that advertisers have to take care that they choose the

celebrity which fits the products attributes and also they provide necessary information

about the products.

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Majority of the respondents responded that they are motivated by celebrities to purchase

products and there is a positive impact of celebrity endorsement, but still 53 % are in

neutral and disagreeing stage, which is a huge opportunity for marketers.

References

Atkin C and Block M (1983), Effectiveness of Celebrity Endorsers, Journal of

Advertising Research, Vol. 23, No. 1, pp. 57-61.

B. Raja Shekhar & N. Udaya Bhaskar , A Comparative Study Of Celebrity Impact On

Consumer Behavior With Reference To Prepaid Mobile Service Providers In Select

Urban And Semi Urban Areas, INTERNATIONAL JOURNAL OF BUSINESS

RESEARCH, Volume 9, Number 1, 2009.

Bauer, Raymond A. and Greyer, Stephen A. (1968) Advertising in America: The Consumer

View: Boston, Massachusetts, Harvard University Press.

Biel, A.L & C. Bridgwater (1990), Attributes of Likeable Television Commercials,

Journal of Advertising Research, 30, 3, pp. 38 44.

Boyd, T.C. and M. D. Shank. 2004. Athletes as product endorsers: The effect of gender and

product relatedness. Sport Marketing Quarterly 13(2): 82-93.

Freiden J (1984), Advertising Spokesperson Effects: An Examination of Endorser Type

and Gender on Two Audiences, Journal of Advertising Research Vol. 24, No. 5,

pp. 33-41.Goldsmith R E, Lafferty B A and Newell S J, The impact of Corporate Credibility and

Celebrity credibility on Consumer reaction to Advertisements and Brands, Journal

of Advertising, (2000), Vol. 29(3), 43-54.

Jagdish Agrawal & Wagner A. Kamakura, The Economic Worth of Celebrity Endorsers:

An Event Study Analysis, Journal of Marketing, July 1995 Vol. 59, 56-62

Johan, J. S. and J. Sirgy (1991), Value- Expressive Versus Utilitarian Advertising

Appeals: When and Why to Use which Appeal, Journal of Advertising,20,3, pp.

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23 33.

Kahle, L., & Homer, P., M. Physical attractiveness of the celebrity endorser: A social

adaptation perspective. Journal of Consumer Research, 1985, Vol.11, 954-962.

Mala Tandon & Sudeep Mehrotra Impact of Celebrity Endorsements on Overall Brand

http://www.coolavenues.com/know/mktg/sudeep1.php (Accessed on 15.1.2009)

McCracken G (1989), Who is the Celebrity Endorser? Cultural Foundations of the

Endorsement Process, Journal of Consumer Research, Vol. 16, No. 3, pp. 310-21.

Meenakshi Aggarwal & Priya Jha Dang, Examining Celebrity Expertise and Advertising

Effectiveness in India, South Asian Journal of Management.

Ohanian, R. 1991. The impact of celebrity spokespersons perceived image on consumers

intention to purchase. Journal of Advertising Research 31(1): 46-54.

Peetz, T. B., J. B. Parks, and N. E. Spencer. 2004. Sport heroes as sport product endorsers:The role of gender in the transfer of meaning process for selected undergraduate

students. Sport Marketing Quarterly 13(3):141-150.

Till B D and Shimp T A, Endorsers in Advertising: The Case of Negative Celebrity

Information, Journal of Advertising, 1998 Vol. 27(1), 67-81.

Schlinger, Mary Jane (1979), A Profile of Responses to Commercials Journal of

Advertising Research, Vol 19, No.2.

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Appendix 1

Questionnaire

A survey for analyzing effectiveness and factors affecting preference of male, female &

Sports celebrity in FMCG sector.

1. Through which media do you come to know about new FMCG products?

a) Print Media.

b) Electronic Media.

c) Word of Mouth.

d) Others (Radio, Bill Board, Banner, Hoardings)

2. Generally how many hours do you watch TV every day?

a) Less than 1 hour

b) 1-3 hours

c) More than 3 hours

3. What do you think is the reason for the companies to choose celebrity endorsement

for promoting their products? (Multiple choices)

a) Easy recognition of products

b) Brand Recall

c) Cannot generate new ideas

d) To be able to increase sales and profit

e) To compete strongly

4. Please select the most suitable point according to you:

Strongly

AgreeAgree Neutral Disagree

Strongly

Disagree

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Do you purchase a brand because

your favorite celebrity is

endorsing it?

Do you think that, celebrity give a

true picture of products through

advertisement?Companies are investing large

amount of money for using

celebrities; do you think its

helping them to increase their

total revenue?

Do you believe that celebrity

endorsement on advertisement

motivate you to purchase?

Do you purchase celebrity

endorsed brands to improve your

social status?Male endorser is more effective

as compared to female endorser.

5. What type of celebrity endorsement persuades you personally to purchase

products?

a) Film star.

b) Famous personalities.

c) Sports Person.

d) Common person.

6. Among the following sub-categories in FMCG which type of celebrity influences

you more?

Sports Celebrity T.V. Actors Movie Stars

Energy Drinks

Soft Drinks

BiscuitsSoap

Shampoo

Snacks

7. Do you believe that the celebrities also use the products which they endorse?

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a) Yes

b) No

c) Not sure

8. Please rate the following celebrities as a brand endorser:-

Celebrity Brand/Product Very

Good

Good Average Poor Very

Poor

1 Aishwariya Rai LOreal

2 Amir Khan Coca Cola

3 Saif Ali Khan Lays

4 MS Dhoni Lays

5 Juhi Chawla Kurkure

9. Please rate the following factors (1 being most favorable and 5 being least

favorable)

Sports Person Actor

Brand recognition

Brand Recall

Attention seeker while watching TV

Name: (Optional) ________________________

Gender:

MaleFemale

Age:

a) 0-18

b) 18-25

c) 25-40

d) Above 40

Education:

a) Intermediate.

b) Undergraduate

c) Graduate

d) Any Other

Occupation

a) Student

b) Business/service

c) Housewife

d) Other

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Appendix 2

Dissertation

Title of the Research

Consumer Perception of Celebrity Endorsement and its impact on brand recall in FMCG

Sector.

Rationale of proposed investigation

FMCG sector contributed 40% for T.V. advertising during 2010 & grew at 50 % from 2009

to 2010. Today, the use of celebrity endorsement has increased drastically in FMCG.

FMCG companies, which generally spend an average 10 per cent of revenues on

promotions.

It has become an integral part of almost every brands promotional campaign and a big

marketing trend. Celebrities are seen endorsing almost every product meant for selling.

Due to high channel surfing, it is very difficult to keep the viewers attention for a long

time and to focus in a productive way. Celebrities can bring quick memorability, recall and

recognition, and direct client connection with the audience.

This will help to explore various dimensions of celebrity endorsements in FMCG

Review of Literature

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In order to establish the necessity of doing research in the current area an extensive

literature was reviewed and the results are summarized as follows:

Kahle & Homer(1985) Physical attractiveness of the endorser may be central in context

with change in attitude of the customer.

McCracken (1989) believes that some celebrity endorsers work better than others due to

the better match or congruency between celebrity and product. Many researchers

acknowledge match-up or fit between the product and the endorser as an important factor

in determining celebrity advertising effectiveness (Kahle and Homer, 1985; Misra and

Beatty, 1990; and Till and Busler, 1998). According to Atkin and Block (1983), celebrity

endorsers have been found to produce more positive responses towards advertising and

greater purchase intentions. Freiden (1984) in his study quotes that celebrities are perceived

to be more trustworthy, believable, persuasive and likeable. Hence, they are more

influential and effective than anyone else.

As per Jagdish Agrawal & Wagner A. Kamakura (1995) a research on The Economic

Worth of Celebrity Endorsers: An Event Study Analysis, has typically focused on theories

explaining how celebrity endorsements influence consumers attitudes and intentions. The

authors assess the impact of celebrity endorsement contracts on the expected profitability

of a firm by using event study methodology. Announcements of 110 celebrity endorsement

contracts were analyzed. Findings of the study indicate that, on average, the impact of these

announcements on stock returns is positive and suggest that celebrity endorsement

contracts are generally viewed as a worthwhile investment in advertising.

Till and Shimp (1998) suggested that repeated pairings of the brand endorser with the

brand should facilitate the celebrity and the brand becoming part of each others

association set. It was concluded that celebrity endorsement is not an easy option but needs

careful consideration of different dimension of advertising and promotional campaign.

Goldsmith (2000) suggested that celebrity credibility could be defined as the extent to

which a celebrity is perceived as having expertise relevant to the communication topic and

can be trusted to give an objective opinion on the subject.

A study conducted by Tandon Mala & Sudeep Mehrotra (2005) on Impact of celebrity

endorsement on overall brand was aimed at providing the marketers with a quantitative

method for selection of the right celebrities to optimize the outcome for their advertising

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campaigns. They developed three matrices in their paper Celebrity Positioning Matrix,

which gives the popularity and image details of a personality in the market Product

Positioning Matrix, which is the direct consequence of the brands competitive strategy

Area Correlation Matrix, which is the overall measure of match of brand and celebrity.

Choi & Rifon (2007) The credibility components are interconnected with other traits of the

celebrity and the image dimension which reflects good qualities e.g. pleasant, wise,

educated etc. produce sincere and positive perception of the celebrity in consumer minds.

Farida Saleem (2008) while studying celebrity endorsement in their article IMPACT OF

GENDER AND AGE ON SINGLE AND MULTIPLE CELEBRITIES ENDORSEMENTS believe that

there is no significant difference between male and female toward single or multiple

celebrities ads similarly age is also not significantly associated with attitude toward ad,

attitude toward brand and purchase intentions for both single and multiple celebrities ads.

According to JUNG-GYO LEE (2008) studied how consumer characteristics, namely an

individual's own levels of enduring involvement with a product category, moderate schema

congruity effects. Two experiments were conducted to test these issues using two types of

match-up factors: physical attractiveness and expertise of a celebrity endorser. The results

show that celebrity endorsements are evaluated more favorably in terms of purchase

intention when there is a moderate mismatch than when there is either a complete match or

an extreme mismatch.

According to Meenakshi Aggarwal & Priya Jha Dang (2009) showed that an expert

celebrity was effective m creating more favorable responses on attitude towards the ad for

an expertise related product but had no effect on attitude towards the brand and purchase

intention. The impact of the expert celebrity on ad attitude was mediated by the perceived

expertise of the endorser. Results of the study provide support for the product match up

hypothesis developed m the West.

According to B. Raja Shekhar & N. Udaya Bhaskar (2009) indicated that celebrity

endorsements generated higher purchase intentions and positive attitudes toward the

advertisement in urban area compared to semi urban.

Gap Areas

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Need of research has been felt as there are conflicting views regarding the role of

gender on celebrity endorsement.

There was no research found in the area of Delhi NCR in FMCG sector.

Little work has been done in FMCG sector and the literature emphasizes on the

need of research in the area as well.

Because celebrities and brands have numerous characteristics, it stands to reason

that there might exist matches on certain dimensions and mismatches on other ones.

Objective(s)

Major research objectives are given below:



celebrity.

Major Hypothesis (s)

Based on the above objectives the following hypothesis has been proposed:



independent.

Materials and Methods

1. The research design adopted in the study would be Descriptive Research.

2. Data for the objective would be collected through secondary data source and

primary data sources. Secondary data would be through journals, websites. The

primary data would be collected through structured questionnaires and the sample

unit would comprise of Consumers of the age group 18-40, both males and females.

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3. The data analysis would be done using SPSS 17.

2010078 dissertation manshul kataria

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