Effectiveness of

Celebrity Endorseme

nt- Monish J Shah

-Pg 13; Indian Journal of Marketing, June-2009

Summary To determine the most preferred

celebrity which people like to see in an advertisement endorsing a product

To determine the effectiveness of celebrity endorsement in brand recall

To determine the brand recall with different celebrities

To understand the influence of celebrity endorsement in purchase decision

To determine the brand-celebrity fit/congruence of selected endorsement.

A Few Concepts….. A brand is a millions of experiences

company creates with vendors, employees, investors, customers & community for products/services.

A celebrity is a well-known personality who enjoys public recognition by a large group of people.

Endorsement is termed as ‘association’.

Eg: Tiger Woods – American Express, Rolex, Accenture, ….

Celebrity Endorsement

-An Advertising Technique

Successful

Celebrity

Endorse-

ment

Celebrity

Profession

Celebrity

Brand

Congruence

Celebrity –

Target

Audience

Match

Celebrity

Popularity

Celebrity

Values

Celebrity

Credibility

Contd… It uses famous personality in a

commercial advertisement to connect to consumers emotions, psychographics & demographics.

It generates attention & creates positive attitude for brand & affects their purchase intention.

Advertisers relate the lifestyle, skills, attractiveness… of the celebrity.

Celebrity Endorsement

- An Opportunity for Celebrities

Celebrities are:› Film-Stars; Sportsmen; Models; Composers &

Singers; World Champions; etc….. Celebrities get endorsement fee. Celebrities include:

› Bollywood Stars: Shahrukh Khan, Amitabh Bachchan, Rani Mukherjee

› Sportsmen: Sachin Tendulkar, Sania Mirza› Models: Priyanka Chopra, Katrina Kaif

20% of commercials use Celebrity Endorsement

10% of advertisement revenue goes to Celebrity Endorsement.

Multiple Brands /Celebrities› Eg: Pepsi /Amitabh Bachchan

Statistical Survey

Sample Size– 150 Respondent.› Out of this 10% did not submit completely

filled questionnaire.› Hence; Final Sample Size – 135

Respondent Area of Survey:- Indore, Madhya

Pradesh. Time Frame:- 3 months; January–

March 2008

Sampling Technique:- Non-Probabilistic Convenient Sampling.

Data Collection Tool:- Questionnaire with Open & Close ended questions

Demographic Factors

MALE51%

FEMALE49%

GENDER

21 -24 yrs41%

25 -30yrs32%

30 -40 yrs17%

40yrs +10%

AGE

Demographic Factors

Student33%

Bussinessman30%

Homemaker21%

Job/Service

16%

OCCUPATION

Demographic Factors

ANALYSIS OF DATA & RESULTS

Most Preferred Celebrity

Aamir Khan

Amitabh Bachchan

Ayesha Takia

Hrithik Roshan

John Abrahim

Kareena Kapoor

Katrina Kaif

Priyanka Chopra

Shah Rukh Khan

Others(37 Celebs)

0 10 20 30 40 50 60

8

14

7

10

5

6

6

6

17

56

-

-

To find out the most preferred Celebrity Endorser, respondents were asked to write the names of the Celebrity they will like to see in an advertisement.› Shah Rukh Khan is the most preferred

Celebrity with 12.6%, then Amitabh Bachchan with 10.4% & finally Hrithik Roshan with 7.4% at third position.

› The others constituted 37 Celebrities who individually have been marked lower than 4%

Celebrity - Brand RecallRight Recall 1

Cannot Recall 2

Wrong Recall 3

Total Mean Std. Devia

Pepsi with Shah Rukh Khan

10880.0%

64.%

2115.6%

135100%

1.36 .738

Cadbury with Amitabh Bachchan

10275.6%

1611.9%

1712.6%

135100%

1.37 .699

John Player with Hrithik Roshan

5137.8%

4331.9%

4130.4%

135100%

1.93 .825

Titan with Aamir Khan 11182.2%

96.7%

1511.1%

135100%

1.29 .656

Castrol with Rahul Dravid

9872.6%

2921.5%

85.9%

135100%

1.33 .586

Sunfeast with Sachin Tendulkar

7757.0%

3727.4%

2115.6%

135100%

1.59 .747

Hero Honda Pleasure with Priyanka Chopra

2518.5%

3123.0%

7958.5%

135100%

2.40 .784

Overall 57260.5%

17118.1%

20221.4%

945100%

1.61 .686

Right Recall61%

Cannot Recall18%

Wrong Recall21%

CELEBRITY - BRAND RECALL

Effectiveness of Celebrity Endorsements in Brand Recall.› 60.5% of the respondents were easily able

to correctly recall the brand (Mean – 1.61)› Of all the endorsements studied, Aamir

Khan in Titan had the highest recall with 82.2% with a Mean-1.29

› Shah Rukh Khan in Pepsi’s Right Recall – 80%; Mean-1.36 & Amitabh Bachchan in Cadbury’s Right Recall – 75.6%; Mean-1.36 were ranked Second & Third respectively

› Priyanka Chopra in Hero Honda Pleasure had the lowest recall (Right Recall – 18.5%; Mean – 2.40)

Brand - Celebrity Recall

Right Recall 1

Cannot Recall 2

Wrong Recall 3

Total Mean Std. Devia

Sachin Tendulkar in Boost

10678.5%

1511.1%

1410.4%

135100%

1.32 .654

Saif Ali Khan in Lays Chips

11283.0%

1611.9%

75.2%

135100%

1.22 .528

Recalling Rani Mukherjee in Munch Chocolate

10779.3%

1410.4%

1410.4%

135100%

1.31 .652

Juhi Chawla in Kurkure 11484.4%

1611.9%

53.7%

135100%

1.19 .481

Malika Sherawat in 7UP

9066.7%

2720.0%

1813.3%

135100%

1.47 .721

Aamir Khan in Coca-Cola

11484.4%

1511.1%

64.4%

135100%

1.20 .501

Effectiveness of Celebrity Recall with the advertisements.› Juhi Chawla had the highest recall

(Right recall – 84.4%; Mean - 1.19 )› Aamir Khan was the next with recall Right

Recall of 84.4% & Mean - 1.20› Malika Sherawat had the lowest recall

(Right recall – 66.7%; Mean – 1.47)

Never14%

Very Less27%

Sometimes33%

Very Often21%

Always5%

Celebrity Endorsement & Purchase Decision

Do people purchase the product/brand after watching the Celebrity Endorsed Advertisement?› The graph indicates that Celebrity

Endorsement is not a very effective tool to motivate people to buy the products.

› Only 5.2% of the participants responded that they buy the products after watching the advertisement.

› On the other hand, approx 74% of them were of the opposite opinion.

Celebrity – Brand Fit

Strongly

Disagree 1

Disagree2

Can’t Say3

Agree4

Strongly

Agree 5

Total

Is Shah Rukh Khan apt for Lux Soap?

4231.1%

2115.6%

3223.7%

3123.0%

96.7%

135100%

Is Amitabh Bachchan apt for Navratna

Oil?

3123.0%

2921.5%

3525.9%

3022.2%

107.4%

135100%

Is Malika Sherawat apt

for 7UP?

4231.1%

1611.9%

2619.3%

2720.0%

2417.8%

135100%

To understand the congruence between brand personality & personality of the celebrity› Majority of the respondents ‘Strongly

Agree’ that the personality of the Celebrities such as Shah Rukh Khan, Amitabh Bachchan & Malika Sherawat did not match with their ads i.e. Lux, Navratna Oil & 7UP respectively with 31.1%; 23.0%; 31.1%

Conclusion An insight to effectiveness of Celebrity

Endorsement in :A. Brand Recall B. Purchase Decision

C. Brand Recall› Of all the endorsements’, Aamir Khan’s Advertisement

of Titan has the highest recall.› Shah Rukh Khan-Pepsi, Amitabh Bachchan-Cadbury,

Juhi Chawla-Kurkure & Saif Ali Khan-Lays also had a high recall due to long tenure.

B. Purchase Decision› Celebrity Endorsement is not effective in influencing

‘Consumer’s Purchase Decision’ › Shah Rukh Khan-Lux, Amitabh Bachchan-Navratna Oil,

Malika Sherawat-7UP› No relation or congruence (Celebrity – Brand)

Hence, it can be stated that Brand Recall &

Purchase Decision does not go

hand-in-hand

THANK YOU