role of celebrities in advertisement & its efectiveness

Role Of Celebrities In Advertising And Its Effectiveness

AMANAGEMENT RESEARCH

PROJECTON

ROLE OF CELEBRITIES IN ADVERTISEMENT & ITS

EFECTIVENESS

SUBMITTED TO:VIPUL PATEL (HOD. MBA Dept.)S.P.B. Patel Engg. CollegeLinch, Mehsana

Affiliated To:Hemchandracharya North Gujarat University, Patan.

In Partial Fulfillment of the Requirement for the subject Management Research Project-I (Sem-IV) Master of Business Administration Program 2008-10

Batch: - 2008-10 Date: -08/04/2010

SUBMITTED BY:

Joshi Ashish (487) Vijay Manundra (498)

Patel Kiran (518) Patel Chirag (641)

S.P.B. PATEL ENGG. College, LINCH, MEHSANA 1


TABLE OF CONTENT

SR.

NO

SUB.

NO

PARTICULAR PAGE.NO

* PREFACE I

* ACKNOWLEDGEMENT II

* EXECUTIVE SUMMARY III

Chp.1Research Methodology

1

1.1Research Objectives

2

1.2Research Methodology for primary survey

2

1.3 Analysis of research 4Chp.2 2.1

Introduction to the topic6

2.2Concepts Celebrity Endorsement

8

2.3Celebrity Branding in Asia

11

2.4History of Celebrity Endorsement

17

2.5First time Celebrity Used in India

19

2.6Global Scenario of Celebrity Endorsement

23

2.7Kinds of celebrity endorsement hood

27

2.8Celebrity as a Trap

30

2.9Celebrity branding and its effect on consumer

32

2.10Relationship between a Celebrity & a Brand

35

2.11Scope of celebrity on incumbent brand

39

2.12Need for celebrity endorsement

41

2.13Is celebrity advertising effective?

42

2.14Why companies use celebrity

45

2.15Process of celebrity endorsement

46



2.16Compatibility of celebrity persona

47

2.17Successful celebrity endorsement

52

2.18How Celebrity endorsement influence the consumers

54

2.19Literature review

55

2.20Important Celebrity attributes

63

2.21The argument for Celebrity Endorsement

64

2.22The argument against Celebrity Endorsement

66

2.23Brand, Celebrities & Consumer

69

2.24Celebrity selection

72

2.25Difference between Brand Ambassador n Brand Face

73

2.26Types of celebrity endorsement

74

2.27Multi celebrity endorsement

75

2.28Advantages of celebrity Endorsing a Brand

78

2.29Disadvantages of celebrity Endorsing a Brand

80

2.30Facts over the years

82

2.31Celebrity endorsement as a strategy

83

2.32Objectives of marketing communication

84

2.33Brand, image & celebrity

86

2.34Measuring a Celebrity Endorsement

89

2.35Framework to make effective celebrity Programme

92

2.36The Impact of celebrity Endorsement

98



2.37Why Celebrity endorsement Fails?

104

2.38Endorsement Risks and Return

107

2.39Celebrity Endorsement: The issues Involved

110

Chp.3Primary Survey Analysis of Consumers

114

Chp.4CONCLUSION

227

BIBLIOGRAPHY231

ANNEXURE(Questionnaire for consumers)I


Research MethodologyResearch MethodologyResearch MethodologyResearch Methodology

Chapter : 1Chapter : 1Chapter : 1Chapter : 1


Chapter : 1

Research Methodology

1.1 RESEARCH OBJECTIVES :

To find out celebrity’s Effectiveness in Brand Recall.

To determine the Brand with different celebrities.

To know the perception of consumers about celebrity.

To understand influence of celebrity endorsement in purchase decision.

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

To determine most preferred celebrity which people like which people like to

see in an advertisement endorsing a product.

To know the overall effect on sales and people by using of celebrity.

SOURCES OF DATA

For unsystematic research, information is required from different sources of data.



Primary Data:

Primary data may be described as those data that have been observed and recorded

by the researcher for the first time to their knowledge. We have collected primary

data through close ended questionnaire method, filled by consumers.

Secondary Data:

Secondary data means the data which are readily available from different sources.

We have gathered these data from the websites, books and magazines.

1.2 Research methodology for Primary Survey

The research methodology adopted for primary survey is given below:

Research Approach:

For gathering primary data, we have used survey approach, which is widely used

method for data collection and best suited for qualitative explorative type of

research survey.

Research Instrument:

For our research we have used questionnaire, which is the most, common

instrument used to collect the primary data. A questionnaire consists of the set of

questions presented to the respondents for their answers..

Questionnaire design:

Our prime objective of making questionnaire design is such that we find out

effectiveness of celebrity in advertising on consumer behavior, Like we want to

measure consumers perception, attitude towards celebrity advertisements, their

likeability , their recognition , etc.

For fulfilling our objective we make questionnaire design on the basis of

following methods of measuring advertising effectiveness.

Likert Semantic Scale.`



Sampling plan:

Here for research purpose sampling plan is prepared. This plan called for three decisions.

I. Sampling unit

II. Sample size

III. Sampling procedure

o Sampling unit (who is to be surveyed?)

The sampling units are the generally Consumers & focused group of

Ahmedabad city.

o Sample size (No. People should be surveyed)

For the purpose of research 150 consumers from different places have been

surveyed. Each and every Consumer & Retailer is contacted to his or her

preference, attitude and perception towards celebrity advertisement.

o Sampling procedure (how should the respondents chosen?)

To obtain representative center sample of the population should be drawn. Thus

here non-probability, convenient sampling method is used for Consumers.

1.3 ANALYSIS OF RESEARCH: STATISTICAL TOOL : CHI-SQUARE

Chi-square is used with the help of applying SPSS software. In test we make

certain hypothesis and by applying Chi square-Test and check the hypothesis on

the bases of choosing appropriate factor. So this way we try to analyze the data

collected through survey and try to present a clear picture of effectiveness of

Celebrity endorsement in the mind of consumers.



S.P.B. PATEL ENGG. College, LINCH, MEHSANA 8Celebrity EndorsementCelebrity EndorsementCelebrity EndorsementCelebrity Endorsement



Chapter: 2

Introduction

2.1 Definition :

According to Friedman & Friedman, a “celebrity endorser is an individual who is known

by the public for his or her achievements in areas other than that of the product class

endorsed.” So, in the Coco-Cola advertisement; actor Amir Khan is the celebrity endorser

for the product or brand called Coke, and this process is referred to as Celebrity

Endorsement. Celebrities might endorse as a brand ambassador or a brand face.

CELEBRITY BRANDING AND ITS EFFECT ON CONSUMERS

It is a known fact that the best endorsements achieve an eclectic balance between the

product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing

strategy to increase sales or gain market share, it is a decision that can change the future

of the brand forever.



Choice of the celebrity, hence, is of utmost importance and is usually done based on

many different parameters - appeal, looks, popularity or even just a fantasy figure to

endorse a brand.

In today's highly competitive markets, big brands are at logger-heads when it comes to

products, each having a similar product to that of a rival. Where does one brand gain that

quintessential advantage - advertising, service, promise of trust, or even the all important

price factors? Advertising seems to be the best platform where brands prefer to compete

on - right from hiring the best advertising agencies to getting the biggest celebrities. What

would be the formula to success then? Well, a good creative agency, a large enough

promotional budget and a huge star to endorse your brand would definitely ensure in the

minds of a brand management team a feeling of security, success and a triumph over the

competitors brand.

The general belief among advertisers is that brand communication messages delivered by

celebrities and famous personalities generate a higher appeal, attention and recall than

those executed by non-celebrities. The quick message-reach and impact are all too

essential in today's highly competitive environment.

The different models applied by brands to achieve the full potential of such

endorsements, highlight the need for a convergence between the theoretical and

pragmatic approaches of brand building and effective advertising. The importance of a

celebrity-brand match and the various roles played by them as brand-associates show the

momentum this strategy has gained in the last decade or so. We put forward certain ideas

like 'positioning by association', 'diminishing celebrity utility' and the Multiplier Effect

which show the triangular relationship between the brand, the consumer and the celebrity.

India is a country where people are star-struck by film stars, cricketers, politicians, and

even criminals. Why? Populations of 1 billion and ticking, everyday people need

something or someone to look up to. A sense of security, admiration, comfort, familiarity,

and above all, someone they aspire to be at some hidden level in their lives. And clever

marketers leverage this very celebrity appeal and are successfully carrying out their jobs



by giving the bottom lines of all the brands what they want - profit, market share and

even recall. But how much star power is too much? "Does Amitabh really use Tide,"

asked a 6 year old to her mother. Her mother laughs and says, "No way, just a gimmick."

What does that do to the brand?

Now, despite the potential benefits derived from celebrity endorsements, they increase a

marketer's risk manifolds and should be treated with full attention and aptitude. A brand

should be cautious when employing celebrities to ensure promise believability and

delivery of the intended effect. The growing importance of mythical characters as

celebrities and their sway over the target segments are ample proof of public demand for

icons to look up to. As the celebrities traverse from a mere commercial presence to public

welfare message endorsements, a whole new dimension is added to this process and helps

us in achieving a holistic view of the impact which celebrities generate in every sphere

and segment through their well-versed endorsements.

At the end of the day, do any stakeholders in a company (employees, contractors,

customers, shareholders, communities the company supports with jobs) benefit from a

celebrity endorsement?

Does anyone buy a product because a Bollywood or TV actor/actress stands up and reads

a script in somewhat convincing manner? Are their distinctions in how consumers

perceive these types of endorsements and respond to them?

What happens when a celebrity endorser gets involved in a public scandal, or worse,

dies? Will the product lose consumer support or perish?

The most important thing to remember is that putting a celebrity in an ad is not an idea in

itself. Unfortunately, this is how most celebrities are being used in Indian advertising,

where they just become a prop. Ideally, there should be an idea that makes the celebrity

relevant to the product and the consumer. A celebrity's presence in the ad should be

contextual.



Celebrity endorsement cannot guarantee fool-proof success. The celebrity endorsement

strategy must be integrated with target market characteristics, and the other elements of

the marketing mix such as product design, branding, packaging, and pricing. The

message execution that will be mouthed by the celebrity must likewise be made clear and

single-minded. You can do this cleverly by aligning the spirit of the brand to the product,

or by using a celebrity because it ensures that people will notice you, and hopefully

remember what the brand is saying. Smart associations are ones where the former

happens.

2.2 Concepts of Celebrity Endorsements

Advertising experts concur that you must consider a celebrity endorsement if, and only if,

the message strategy warrants it, not as a cover for a poor idea or bad product quality.

And last but not the least, one should seriously consider the risks of associating with a

well-known personality, and hedge against a future scandal by not relying on just one

celebrity and instead linking the brand's association with a broad theme represented by

several celebrities. And if you can't afford many celebrities, then get your thinking caps

on, and come up with a better, safer idea. That will ensure that you're in control of the

brand's destiny - not the stars!

Inertia is a potent force and consumers have that in plenty. Brand managers employ

celebrities in the age-old AIDA model to counter that. The Celebrities draw Attention,

generate Interest, evoke Desire and induce Action from the audience. Our safe

assumption till now has been that there is perfect congruency between the brand, the

celebrity and the target segment. Let's drop this for a while, to land on the practical

ground and look into real-time decisions. An old Japanese proverb goes that "Vision

without action is a daydream but action without vision is a nightmare."

Managements across the world need to realize that no matter how great the ad-spend and

famous the celebrity, they cannot succeed if the core product offering fails to meet the

consumer expectations. Every endorsed brand may garner some start-up euphoria and

blind-spot sales, but to sustain its meteoric rise, it cannot afford product dissatisfaction. In



such cases, the celebrities are also quick to dissociate themselves from the brand, as it

hampers their carefully cultivated image of an infallible character.

Again, not every celebrity works for every product. Each personality carries a set of

perceptions attached to it and these have to be in sync with the perception the brand has

or wishes to generate. Mercedes Benz would never hire a Govinda in India or Michael

Jordan elsewhere, but these same men have simply worked wonders for respective brands

like Navratan Oil and Nike. A clean, natural fit between the celebrities and the brand

image enhances the latter's value. Lux is a glowing example of being the 'beauty soap of

film stars' since the last fifty years! A well-managed celebrity endorsement has the ability

to convey to the customers that the celebrity is benefiting from the brand, and they will

too.Many endorsements fail because they use the celebrities like a prop in the

advertisement copy. There should be an idea which makes the celebrity relevant, firstly to

the product and finally to the consumer. The bottom line is that the celebrity

endorsements work truly only when the commercial is provoking and original. Aamir

Khan's successful incarnations in the 'Thanda Matlab' copies for Coca-Cola have added a

new dimension to this assertion. It projected the brand as the star, being cherished by the

celebrity and not the other way round.

In addition, an effective endorser should not associate with many different products and

fall in the trap of overexposure. Keep the consumer's mind clear from confusion and do

not let him feel that you are in it for the money rather than truly believing in the brand.

The celebrity-brand saliency takes a beating if he is rummaging with several brands and

distorts the brand image.



2.3 Celebrity Branding in Asia

Michael Jordan vouching for Nike’s shoes, Michael Schumacher endorsing Ferrari and

Tiger Woods endorsing Accenture have been some of the more popular brand–celebrity

collaborations in the Western world. Lately, we have seen the emergence of brand–

celebrity collaborations within Asia with the Chinese basketball star Yao Ming endorsing

a range of products from consumer electronics and clothing to fast-food chains in China,

Bollywood superstar Shah Rukh Khan endorsing an ever-increasing portfolio of brands in

India, and Jackie Chan speaking for many brands.

For a long time, companies have used well-known public figures, movie stars and sports

personalities to endorse their brands, as it is widely believed that these celebrities help to

build or reposition brands by extending their personality, character and popularity to the

brands they endorse. This chapter looks into this brand building tool that is fast gaining

currency with leading corporations in Asia.



Brand endorsement has been covered widely in the branding literature. Brand

endorsement can be simply defined as a persuasive communications strategy used by

companies to have their products and services represented by a spokesperson. This can be

a paid, a value in kind or an unpaid activity. The main aim of product endorsement is to

persuade consumers to buy a particular product/service, to shape their perceptions toward

it and position it more as a lifestyle product or service rather than solely on its application

merits. It is also intended to shape or change perceptions of a particular brand, increase

brand popularity and consumer mind share of the brand, strengthen brand recall, and

highlight differentiation and its uniqueness.

Comprehensive research conducted in this field of marketing communications suggests

that celebrity testimonials do increase advertisement readership. Through their extensive

work in this area, many researchers have concluded that endorsement by celebrities has a

positive effect on the overall branding communication and perception. Although no study

has proved, in quantitative terms, any direct relationship between celebrity endorsement

and an increase in sales, corporations worldwide resort to celebrity endorsements to

create a positive effect for their brands.

An Asian example is Jun Ji Hyun, the young South Korean actress and poster girl, who

became famous after she appeared in the 2001 blockbuster movie My Sassy Girl. She has

been used for magazine and TV commercials throughout Asia, and her TV campaign for

Olympus digital cameras reportedly helped to increase the brand recognition by more

than 15 percent, according to advertising company LG Ad.5 Similarly, SK-II had a

reported 50 percent sales increase in South Korea when P&G switched endorser from

Shim Hae Jin to the famous movie actress Chang Jin Young in 2004.

A case in point is Nike using endorsements by Tiger Woods and Cristiano Ronaldo to

enter into the golf and football categories. Traditionally Nike has not been known for its

products in either golf or football. Had Nike chosen the conventional marketing way of

entering these segments, it would have taken some considerable time. Instead, by signing

on the most famous golfer in the world, and the leading sports personality, who plays for

one of the most famous football teams in the world, Nike has been able to shorten the



time needed to make an impact. With Ronaldo endorsing Nike, the brand has almost

established itself as an equal to Adidas, which has been the dominating brand in football

for almost 50 years.

The concept of celebrity endorsements and their effect on brand building is derived from

seminal research conducted in the areas of psychology and sociology. The basic premise

is quite simple. With so many products in the marketplace, it is almost impossible for any

consumer to absorb all the information and process it, and then decipher the information

and evaluate its credibility. In such a scenario, customers seek to simplify things by

depending on cues or easy rules of thumb. These cues can be either intrinsic or extrinsic

and can be communicated through any medium. These simple rules of thumb help

customers to sift through the massive amount of information to make an informed

judgment or develop perceptions about products in the market.

With ever-increasing numbers of advertisements and newer ways of communications

being devised, even these cues have become abundant. Thus, a brand endorsed by a

celebrity seems to establish a connection with customers, as many relate to or aspire to

emulate their Personalities. As will be explained in Chapter 6, a strong brand will not

only provide the basic functional benefits, but also provides its customers with an

identity, a personality to whom they can relate and who expresses their own beliefs and

attitudes. Using a celebrity to endorse a brand provides one such channel for the brand to

associate itself with the unique identity and personality of the celebrity. At another level,

a celebrity endorsement also helps the brand to achieve wider awareness and better recall.

But having said that to maximize the return on brand endorsement, companies must strive

to arrive at a good match between the brand being endorsed and the endorser.

Endorsements

Based on these many factors, endorsements can broadly be classified into four categories:

Endorsements by ordinary people

Endorsements by experts in their respective fields

Endorsements by celebrities



Mixed endorsements.

In discussing the product type as the basis for deciding the type of endorsement, the focus

is usually on how motivated or involved consumers are in processing or searching for

information about the product. Even though high or low involvement is relative, products

can be classified into these two categories. For example, a less expensive consumer good

like shampoo or soap could be categorized as a low involvement product, whereas an

expensive digital camera, which requires an in-depth purchase evaluation, could be

categorized as a high involvement product

In discussing the product benefits as the basis for deciding the type of endorsement, these

can be separated into two types, namely functional benefits/values and social

benefits/values

Functional benefits/values relate to consumers at a cognitive or logica level, where the

product’s functionality and features help consumers to perform a certain function in life.

Asimple example would be of a shampoo that cleanses hair.

The four categories Celebrity Endorsement

Endorsement by ordinary people

The bottom left quadrant consists of products which provide functional benefits, with low

involvement. For these products, normal consumers can be used as product endorsers.

The many advertisements for shampoos, detergents and so on, where it is common to see

actual users being interviewed to gauge their opinion and experience of using that

particular product, fall into this quadrant. Research shows that using an ordinary

consumer as a product endorser for low involvement products has two main advantages.

The first is that, as the endorsing consumer belongs to the same community as other

consumers, he/she is presumed to possess a similar lifestyle and product usage and is

therefore in a better position to comment on the suitability of the product for that

community of users. The second advantage is that the endorsing consumer is perceived to

speak the truth as he/she belongs to the user community and is therefore perceived to be



more believable than other paid endorsers. Despite this, there have been many instances

where companies have used celebrity endorsements in low involvement categories to

increase awareness levels and persuade customers to buy certain brands over others.

Endorsement by an expert The bottom right quadrant represents products that provide functional benefits, with high

involvement. For such products, endorsement by an

expert would be a fitting match. An expert is someone who is seen to possess expertise

related to the product class marketed and is able to give expert advice. Few people would

probably argue about the effectiveness of the endorsement by the Indian dental

association for Oral B’s claims. The reason is Customers tend to believe in the

knowledge of the dental association. By the same token, a well-known appliance expert

can be effective in endorsing refrigeration equipment, as would be a well respected health

practitioner for health-related products. Expert endorsement is more feasible for products

with high functional and physical values. Products with such characteristics are most

likely to be of high involvement, where the diligent consideration of information and

evaluation of the true merit of the product are essential.

Celebrity endorsement The top left quadrant represents products which provide social benefits without high

involvement. As social benefits include emotional and self esteem benefits, consumers

would like to see and emulate some well known personalities who use those products that

they want to purchase. By having a celebrity endorse these categories of products,

consumers are provided with a strong personality and a persona to emulate. A celebrity

can be defined as an individual who is well known by others and for whom most people

have well-developed, trait-based impressions.

A celebrity can also be a person who is widely known to the public for his/her

accomplishments in his/her respective field, be it the movies, sport, music or politics.

Sometimes, however, the celebrity endorses a product or product class that has no match

with his/her accomplishments or achievements. Some of the better known examples are



Tiger Woods endorsing Accenture and Tag Heuer, the Bollywood star Amitabh Bachan

endorsing Cadbury chocolates in India and Yao Ming endorsing McDonald’s globally.

Despite this mismatch between the celebrity and the product class, companies still

continue with such endorsements as these celebrities help to pass on their charisma and

personality to the products they endorse.

Mixed endorsement The top right quadrant represents products that provide social benefits, with high

involvement. High end products like a premium luxury car, the latest mobile phone, or a

high end consumer electronic item serve as suitable examples for this quadrant. This

category of goods not only involves a lot of customer deliberation with regard to its

functionality, its technology and design but also gives immense opportunity for

customers to flaunt their personality and convey their beliefs. The nature of these

products necessitates combining different types of endorsers for this category. Celebrities

are used to bolster the self-esteem and image needs of customers and experts are used to

covey the functional credibility of the products. But in certain categories like sports

goods, the celebrity sports stars themselves double up as experts as they use the products

on a regular basis.

Numerous celebrities have appeared in countless commercials. These celebrities have

been from various fields – sports stars, world famous athletes, prominent musicians,

singers and popular Hollywood stars. Singapore Airlines, which has built its brand based

on excellent service, has been successful in developing and managing the Singapore Girl

as the iconic symbol of the brand. Using celebrity endorsement as a communication

strategy has on many occasions been an effective way to influence consumer attitudes

and generate positive purchase behavior for products with high social and emotional

values, involving elements such as good taste, self-image, and the opinions of others.

Celebrity endorsements have been gaining higher levels of acceptance as an important

tool to build brands by creating positive associations and building unique personalities.

Effective celebrity branding efforts focus on utilizing celebrity figures who can help to



communicate a brand’s unique value proposition, strengthen its identity and provide it

with a desirable personality.

2.4 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.

Phase 2: The Growth Phase (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

(Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive

Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).



Phase 3: 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.

(Article by Country head, O&M India)

India’s Bollywood has an audience of approximately 3.6 billion globally compared to 2.6

billion for Hollywood. This fact gives enormous power to the big and mighty Bollywood

stars as they chart new territories beyond Indian soil. Amitabh Bachan, a demigod in

India, and Shah Rukh Khan (orKing Khan as he is fondly called) are the new power

centers. AishwaryaRai, a former Miss World, and one of the leading actresses in

Bollywood and now the Indian face in Hollywood, has also become one of the most

sought-after celebrities. They have tremendous power at their disposal to influence the

public. With a strong list of achievements in their respective fields, these personalities are

the new weapons of companies in branding and marketing their offerings.

Moreover, these Bollywood personalities have such a huge fan base that it has become

the norm for them to endorse a wide portfolio of products and brands. The spectrum

spans fast moving consumer goods, consumer electronics, cars, cosmetics and leisure

destinations.

Another category of celebrities in India are cricket players, especially those who play for

Team India. It is surely not an overstatement to say that cricket is one religion that unites

the diverse landscape of India. Its popular-ity is so enormous that literally the entire

country shuts down when India plays against its neighbor Pakistan – such is the power of

cricket in the Indian mindset. Realizing this power and the loyalty that cricketers

command, companies have used them as spokespersons for their companies’ offerings

since the early 1970s. Even here, the portfolio of products that cricketers endorse is very

wide and often the endorsers have nothing to do with the products they endorse. But

given the nature of awareness and recall that these endorsers generate, companies appear



to be willing to play along.

The huge population in India and the Indian diaspora in almost everyother country in the

world also enhance the reach and power of these Indian celebrities. Indian movies

typically depict extended families who are attached to their roots and an Indian youth

who is struggling to find the right balance between traditional values and the allure of

westernization, themes that cut across many developing countries. Indian films resonate

as much in Nigeria, Mali and Morocco, as they do in Russia, Nepal, Pakistan, Singapore

and Malaysia. Viewers in these countries are not just aware of Bolly-wood but actively

watch, memorize, and adore the films and their stars. With such a tremendous audience

reach, Indian movie stars command apowerful following.

2.5 History

Celebrities are involved in endorsing activities since late nineteenth century2. The advent

of celebrity endorsements in advertising in India began when Hindi film and TV stars as

well as sportspersons began encroaching on a territory that was, until then, the exclusive

domain of models3. One of the first sports endorsements in India was when Farokh

Engineer became the first Indian cricketer to model for Bryl cream. The Indian cricket

team now earns roughly Rs. 100 crore through endorsements. There was a spurt of

advertising, featuring stars like Tabassum (Prestige Pressure Cookers), Jalal Agha (Pan

Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).

Evolution of subject:

The celebrities get huge amoun

t of money to endorse the product which actually creates for

Recall-value for the product like

Coca Cola - Aamir Khan

Tag – Heuer – Shahrukh Khan

Cadbury chocolate – Amitabh Bachan



The adding up of any celebrity with any brand may not always increase the sales volume

but if somehow the image of the product damaged, celebrity endorsing helps in

recovering the image. Like when Cadbury India’s reputation as a safe chocolate was

almost gone due to the worm controversy, they used Amitabh Bachan in a commercial

assuring the audience about the quality of the Cadbury. Similarly when Pepsi & Coke

was infected by the Pesticides controversy, Pepsi used both SRK & Sachin Tendulkar for

damage control & coke used Aamir Khan for image recovery.

Not all products go with the image of all celebrity. It depends on the matching of

attributes between the product & the celebrity. In the age of Sunil Gavaskar & Kapil Dev,

Gavaskar’s attributes matched with the products which were being used by the higher

society people & Kapil dev’s attributes matched with products that were for common

man. This means Gavaskar was much trustworthy for the advertisement of pen & cans

and Kapil Dev had gone for shaving cream & bicycles. Kapil’s advertisement of

Palmolive Ka Jawab nahi in a slightly hariyanvi style is still a legend among the Indian

advertisements. Sachin Tendulkar is the first celebrity in India whose mass appeal is so

high that he can endorse product for any section of the society. The filmstars before year

2000 has limited endorsement and didn’t explore the advertising market of India but post

2000 the scenario has changed. Amitabh Bachan after KBC got huge popularity among

the masses & his popularity is being used by various products from Reid & Taylor to

Parker. But during his hay day as a superstar in the ‘80s, he never endorsed anything.

Another success story is SRK who is currently endorsing more than 35 products & earned

more money from endorsement than his last 2 super hit films Chak DE INDIA & OSO.

The cricketers are also not in the backyard. After wining the T-20 World Cup Indian

cricket players also got few numbers of endorsements Dhoni, Yuvraj & Zaheer Khan

grabbed few endorsements but in terms of numbers they are much less than the actors.

With the change in strategy of PepsiCo India to promote their ‘Youngistaan’ campaign

they didn’t renew their contract with players like Sachin and Sourav. Instead they have

taken rising actors like Ranbir Kapoor and Deepika Padukone to promote their product.

This incident also indicates that the cricketers are loosing their endorsed products to the



filmstars. One exception is Sania mirza, in spite of all controversies, off-form and injuries

she is able to survive in the advertisement world.

Brand V/s Celebrity

Sometimes the celebrity is more highlighted than the products, making no recall value of

the product. When Rahul Dravid advertised for Castrol, the brand gets overshadowed by

the celebrity & that is also a wrong choice of celebrity. Dravid is never famous for racing

& when he promotes the product, if gives a wrong signal to the customers. The product

can use Narain Karthikeyan to endorse it which will give some reliability to the product.

The problem in the endorsement market is that here glamour plays a big role. That is why

Abhinav Bindra, the only Indian to win a Gold Medal in the Olympics gets only Samsung

as the only product to endorse whereas filmstars gets offers from various companies to

endorse their products.

Some success story

Cadbury India used Amitah Bachan not only to recover their image from worm

controversy but also to establish itself as the leading company in the Indian chocolate

market. Aamir Khan’s ad campaign ‘Thanda Matlab Cocacola’ was also a huge hit. Not

only that the company uses the superstars to come out from the pesticides controversy.

Dabur brings in Amitabh Bachan in the stagnant chawanprash market which brings in

boost in market and helps Dabur to remain the market leader.

The Lux Story

The Lux Soap in its 75 yrs journey as a product always used a Film Celebrity to promote

the product with the most catchy lines ‘Lux meri Khubsurti Ka raaj’. They used a huge

number of celebrities from the beginning to promote their product & in their 75 years

celebration advertisement campaign; they used SRK as the main endorser who has said



the famous ‘Lux mera Khubsurti ka raaj’ along with Hema Malini, Sridevi &

KareenaKapoor. That is the first time a male celebrity endorsed a female product in India.

Some Controversies

When SRK promoted Emami’s Fair & Handsome cream. It was highly criticized as

saying that if a star with SRK’s stature promote whiteness cream then actually we are

advocating for racism saying black is bad & white is gold. And how SRK could can

endorse such products as there will be a huge impact among the masses regarding theskin

colors. A person must be judged by his/her qualities & not by his/her skin color. But what

we basically forgot that stars get money to endorse products & we shouldn’teye washed

by the advertisement & there is no point in criticizing a celebrity forendorsing product

like Fair & Handsome.

Shilpa Shetty & Romanov Vodka.

Shilpa Shetty also hardly criticized for promoting alcohol. As being a celebrity she must

be a responsible citizen & a responsible citizen should never promote alcohol.

Celebrity branding is all right as long as the celebrity conducts himself in a good manner

but if something wrong happens it will affect the image of the product also. When

Salman Khan got warrant for killing endangered dear ‘Thumbs Up’ has no option but to

replace him. So the product and the celebrity remain good as long as both of them remain

individually good. The main problem of celebrity branding is that when a particular

product is known to the common people with the effect of the celebrity, it is very difficult

to separate the product from the star. Like Coca-Cola - Aamir Khan, Cadbury- Amitabh

Bachan, Santro-SRK. Now, if any one of the company want to change their endorser they

have to redesign the product to let out their product from the shadow of the old campaign.

In case of celebrity marketing another problem also arise, that no separate brand value

grows up for the product unless and until the product is extraordinary. The product is



known in the name of the celebrity. Sometimes if the attributes of the celebrity doesn’t

matches with the product, it also gives a negative attribute to the product endorsed. Like

in a Survey study it is found that people locates Amitabh Bachan with Asian Paints the

most but in reality Amitabh endorsed Nerolac paints and Nerolac’s biggest competitor is

Asian paints. So there are certain positive as well as negative points in celebrity branding

in India. As a producer of the product the company always wants to minimize the

negative sides of the celebrity endorsement and maximize the positive impact of the

celebrity endorsement.

2.6 Global Scenario of Celebrity Endorsement

There has been an explosion in the interest of celebrity in the last decade - but what are

the impacts on celebrity endorsements? Choosing the wrong face can send a product into

consumer oblivion – whilst the right one can propel a brand to global awareness.



Clark Turner, editor utalkmarketing said: “Today, thanks to reality television, it seems

that every Tom, Dick or Harry can become a celebrity. Marketers have to think very

carefully about the message their chosen ‘face’ is sending out. For example, if a low

profile reality TV star is chosen to promote a particular product some consumers may

feel it was all the marketing budget could stretch too!”

Another problem faced by ad directors is making sure their chosen ambassador has

credibility in the field.

Clark continues: “Product and celebrity must go together in all spheres of the market.

ABC 1 consumers want to see aspirational celebrities such as Keira Knightley in the ads

they watch. Whereas brands like Iceland who appear to have more of a C2D2 audience,

choose a face such as Kerry Katona who has a more down to earth image.”

Top Celebrity Earners in the UK

1. David Beckham - £25.7m (Adidas, Motorola, Pepsi, Armani and Calvin

Klein)



‘Golden Balls’ is the undisputed king of

celebrity endorsement. Though some

commentators may say his star is beginning to

wane, no other British sportsman has the

looks, lifestyle, connections and glamour,

which have resulted in the global appeal of

Brand Beckham. Key sponsors include

Adidas (£10m) in which his deal secures him a

share of annual profits, Motorola (£2.5m),

Georgio Armani (£9.7m over three years) Pepsi (£2.5m) and Calvin Klein (£1m).

2. Kate Moss – £11m (Rimmel, Topshop + others)

Dubbed ‘Cocaine Kate’ by newpapers after being

exposed as a user in 2005, some pundits predicted

the supermodel’s downfall. But Croydon’s finest

export has bounced back from the brink and is now

more bankable than ever with an annual income of

around £11m from endorsements alone. Her

biggest sponsors include Rimmel (£3m), Burberry

(£1m), Stella McCartney (£1m), Dior (£500k),

Calvin Klein (£1.5m), Nikon (£1.5m), Roberto Cavalli (£800k) and Topshop

(£1m).

3. Wayne Rooney – £9m (Nike, Electronic Arts, Coca-Cola)

Whilst he may not have the conventional appeal of England team-mate David

Beckham, the 21 year old from Liverpool can certainly hold his own in the global



marketability stakes. He currently has contracts with Nike (£5m - £500k every

year for 10 years), Electronic Arts (£3m) and Coca-Cola (£1m) - though it seems

one of his main rivals may be fiancee Colleen who is proving a hit with marketers

and consumers alike!

4. Coleen McLoughlin – £6.9m(Asda, Diet Coke, Nike and LG)

The Liverpudlian school girl once only known for being Wayne Rooney’s other

half is now a bankable commodity in her own right. She said in a recent

interview: “I like to think I’m someone people relate to” – and it seems the girl-

next-door image is working. Recently she has won lucrative contracts with

George @ Asda (£3.5m), Nike (£1.5m) and Diet Coke (£500k) amongst others,

meaning this WAG won’t be reliant on hand outs from her other half to indulge in

her love of shopping.

5. Spice Girls – £5m (Tesco)

The ‘Fab Five’ marked their 2007 comeback by signing a heavy weight deal with

supermarket giant Tesco - each member of the band reportedly bagging a cool

£1m for appearing in the Christmas advertising campaign.

6. John Terry – £4m (Umbro and King of Shaves)

The current England football Captain is said to pick his endorsement deals

carefully – so far he has only put his name to King of Shaves (£1m) and sports

label Umbro (£3m)

7. Gary Lineker – rumoured to be £3m (Walkers)

Gary Lineker has been the face of Walkers crisps for 10 years and even spawned

a brand called Salt ‘n’ Lineker. According to Walkers, his campaigns have helped



the company sell an extra 1.4 billion bags of crisps in seven years! The firm saw

sales grow from 1.34bn to 2.75bn packs a year – or a 105% surge in sales between

1995 and 2002, when Walkers launched its "No More Mr Nice Guy" campaign

featuring the star.

8. Girls Aloud – £2.25m (Sunsilk and Samsung)

Pop’s sexiest quintent were appointed

ambassadors of the Sunsilk hair care

range in 2007 for £1.25m and

additionally to Samsung for a cool £1m.

Additionally, Sarah Harding received

£100k to be face of leading lingerie

brand Ultimo and Cheryl Cole, along with her footballer husband can be seen

promoting the National Lottery and Coke Zero (amounts undisclosed).

9. Jamie Oliver - £1.2m (Sainsbury)

Jamie Oliver has been the public face of

Sainsbury since 2000, appearing on television

and radio advertisements and in-store

promotional material. In the first two years these

advertisements were estimated to have given

Sainsbury's an extra £1 billion of sales or £200

million gross profit.

2.7 KINDS OF CELEBRITY ENDORSEMENT-HOODS

(1) Product Placements



While the movie 'Taal' brandished Coke bottles unabashedly,

(2) Celebrities Co-Owning the Brand

Madhuri Dixit and Emami 'Beauty secrets by Madhuri' range

(3) Fictional Heroes

Shaktimaan has sold Parle-G, and Popeye single-handedly revived the consumption of

spinach in the US.

(4) No More but Celebrities Still

Campaigns created around a dead personality was the 'Kar lo duniya muthi mein'

campaign for Reliance featuring Dhirubhai Ambani

(5) Page 3 Celebrities

(6) Celebrities for a Cause

The Pulse Polio campaign being coordinated by UNICEF for the Ministry of Health and

Family Welfare had Amitabh Bachchan and Sachin Tendulkar

(7) Spoofing

Mirinda spoofed the Hutch puppy (a celebrity in its own right).

(8) Mascots

Ronald McDonald, the Amul girl

(9) Men are from Mars, Women from Venus

John Abraham lends his rugged image to Yamaha bikes while Priety Zinta lends her cute

dimples to peddle Scooty.

(10) Celebrities Lending their Name to Brands

Sharukh Khan, Amitabh Bachchan and Rekha have perfumes named after them



(11) Company Owners Being Celebrities

Vijay Mallaya and Richard Branson who are walking talking celebrities and endorse

their own brands through their extravagance, their flamboyant lifestyle

(12) Political Leaders

The 'India Shining' campaign from the BJP and the 'Congress ka haath aam aadmi ke saath' campaign from the Congress with Vajpayee and Sonia Gandhi lending their faces

(13) Using a Social Proposition Built Within the Brand

The Surf campaign done by Revathy and Shabana Azmi (in the south and north

respectively) which stressed on the prudent usage of valuable water was a social

proposition cleverly inter-woven in the brand.

(14) Duration of Usage - Promotional or Long Term Strategy

Short-term example is the Rani Mukherjee campaign for Bata which is believed to have

helped boost sales for the ladie's footwear brand, Sundrop, by a whopping 500 per cent.

The same Rani Mukherjee has a longer association with Fanta and Munch.

(15) Stealth Advertising

Since a cynical public no longer believes that celebrities actually use the products they

endorse in commercials. Revlon launched an online marketing campaign targeting female

customers via chat rooms talking about who Revlon's new face would be. Consequently

the announcement of Halle Berry as Revlon's new face was met with great anticipation.

(16) Foreign Celebrities

Jackie Chan doing a Discover commercial or a Boris Becker doing a Siyaram commercial

(17) Unintentional Celebrity Endorsements



The year before the late Princess Diana bought an Audi, they sold just about five hundred

pieces in the UK. The following year sales figures were close to ten thousand mark. John

Abraham haybusa



2.8 The celebrity Trap:

Once into a celebrity, it is hard to get out of it. If the brand has done even

moderately well after the break of a celebrity campaign, it becomes difficult to

separate the role of message and the role of the celebrity in selling the brand.

And hence, the celebrity becomes an addiction for the marketing team.

And the task to find substitutes becomes more and more difficult. Interestingly,

celebrity is a disease that is seen to spread across a marketing department. Once

one brand manager gets into it, others tend to follow, not wanting to be left

behind!

With the surfeit of celebrities on screen and in the newspapers, there are two new

drawbacks emerging for celebrity usage.

Celebrity credibility is coming under question. Consumers are getting more and

more advertising savvy and are beginning to voice opinions, even in small towns,

like "He has been paid to sell the product."

Clearly celebrity endorsement is no longer as credible as it was a few decades

ago.

Unless category and celebrity are closely linked (like Nike and sports stars), the

power of a celebrity's word is questionable.

The trustworthiness of public figures, which celebrities tended to bring in the past,

is bound to disappear if a celebrity begins to appear and endorse a brand in every

conceivable category!

Celebrity clutter. With each celebrity endorsing multiple products and multi

brands in a category, resorting to different celebrities, the consumer is left

confused.And reluctant to get into 'this celebrity is bigger than that comparison' to

make brand choices.

Santro is endorsed by Shah Rukh Khan and Palio by Sachin Tendulkar… does the

consumer buy the brands because of the star pull? … a question worth pondering



about. It ends up making brand parity rather than giving brand differentiation,

often one of the key aims of using a celebrity.

When Palmolive used Kapil Dev in the '80s, his line 'Palmolive da jawaab nahin'

became famous -- it is remembered even today.

Pataudi gave Gwalior suitings a strong competitive edge and pushed it to Number

2 in perceptions in the suitings market.

Even Sridevi made Cema bulbs and tubes memorable by dancing in a bulb!

The advertisements by themselves were fairly non-descript; the celebrities gave

the brand the differentiation. Celebrity advertising were few and far in between in

those days. The days of 'pure' celebrity working for the brand seem to be over.

Today, it is back to the power of an idea and an insight. No simple solutions exist

any longer. Unless there is something powerful in the idea, the celebrity is just

another cost.

Aamir Khan and Coke is the ultimate example of the same. As long as the brand

depended on his star value and wove interesting stories around him, it just didn't

cut ice with the consumer -- until 'Thanda Matlab Coca-Cola' happened.

Could it have worked as well without a celebrity? One will never know as the

brand has entered the celebrity trap.



2.9 CELEBRITY BRANDING AND ITS EFFECT ON

CONSUMERS

It is a known fact that the best endorsements achieve an eclectic balance between the

product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing

strategy to increase sales or gain market share, it is a decision that can change the future

of the brand forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on

many different parameters - appeal, looks, popularity or even just a fantasy figure to

endorse a brand.

In today's highly competitive markets, big brands are at logger-heads when it comes to

products, each having a similar product to that of a rival. Where does one brand gain that

quintessential advantage - advertising, service, promise of trust, or even the all important

price factors? Advertising seems to be the best platform where brands prefer to compete

on - right from hiring the best advertising agencies to getting the biggest celebrities. What

would be the formula to success then? Well, a good creative agency, a large enough

promotional budget and a huge star to endorse your brand would definitely ensure in the

minds of a brand management team a feeling of security, success and a triumph over the

competitors brand.

The general belief among advertisers is that brand communication messages delivered by

celebrities and famous personalities generate a higher appeal, attention and recall than

those executed by non-celebrities. The quick message-reach and impact are all too

essential in today's highly competitive environment.

The different models applied by brands to achieve the full potential of such

endorsements, highlight the need for a convergence between the theoretical and

pragmatic approaches of brand building and effective advertising. The importance of a

celebrity-brand match and the various roles played by them as brand-associates show the

momentum this strategy has gained in the last decade or so. We put forward certain ideas



like 'positioning by association', 'diminishing celebrity utility' and the Multiplier Effect

which show the triangular relationship between the brand, the consumer and the celebrity.

India is a country where people are star-struck by film stars, cricketers, politicians, and

even criminals. Why? Populations of 1 billion and ticking, everyday people need

something or someone to look up to. A sense of security, admiration, comfort, familiarity,

and above all, someone they aspire to be at some hidden level in their lives. And clever

marketers leverage this very celebrity appeal and are successfully carrying out their jobs

by giving the bottom lines of all the brands what they want - profit, market share and

even recall. But how much star power is too much? "Does Amitabh really use Tide,"

asked a 6 year old to her mother. Her mother laughs and says, "No way, just a gimmick."

What does that do to the brand?

Now, despite the potential benefits derived from celebrity endorsements, they increase a

marketer's risk manifolds and should be treated with full attention and aptitude. A brand

should be cautious when employing celebrities to ensure promise believability and

delivery of the intended effect. The growing importance of mythical characters as

celebrities and their sway over the target segments are ample proof of public demand for

icons to look up to. As the celebrities traverse from a mere commercial presence to public

welfare message endorsements, a whole new dimension is added to this process and helps

us in achieving a holistic view of the impact which celebrities generate in every sphere

and segment through their well-versed endorsements.

At the end of the day, do any stakeholders in a company (employees, contractors,

customers, shareholders, communities the company supports with jobs) benefit from a

celebrity endorsement?

Does anyone buy a product because a Bollywood or TV actor/actress stands up and reads

a script in somewhat convincing manner? Are their distinctions in how consumers

perceive these types of endorsements and respond to them?

What happens when a celebrity endorser gets involved in a public scandal, or worse,

dies? Will the product lose consumer support or perish?



The most important thing to remember is that putting a celebrity in an ad is not an idea in

itself. Unfortunately, this is how most celebrities are being used in Indian advertising,

where they just become a prop. Ideally, there should be an idea that makes the celebrity

relevant to the product and the consumer. A celebrity's presence in the ad should be

contextual.

Celebrity endorsement cannot guarantee fool-proof success. The celebrity endorsement

strategy must be integrated with target market characteristics, and the other elements of

the marketing mix such as product design, branding, packaging, and pricing. The

message execution that will be mouthed by the celebrity must likewise be made clear and

single-minded. You can do this cleverly by aligning the spirit of the brand to the product,

or by using a celebrity because it ensures that people will notice you, and hopefully

remember what the brand is saying. Smart associations are ones where the former

happens.



2.10 Relationship between a Celebrity & a Brand

To understand how consumers associate celebrities to brands is well documented by a

research study by Anderson (1976); Collins & Loftus (1975); Rumelhart, Hinton &

McClelland (1986). In their study, associative learning principles were based on a

conception of memory as a network consisting of various nodes connected by associative

links. In the research context, celebrities and brands both represent nodes, which initially

are unconnected but become linked over time through the endorsement process.

When a consumer thinks about a brand, the link with the celebrity node is animated to a

certain level through spreading activation (Anderson 1983a). The joint activation of

brand and celebrity provides a path over which one's evaluation of the celebrity has an

opportunity to transfer to the brand. The key to the process is the simultaneous activation

of the brand and celebrity nodes. Negative information about the celebrity activates the

celebrity node, which then activates the brand node to some degree and allows reduced

evaluation of the celebrity to transfer to the brand. Studies by Noffsinger et al. (1983) and

Judd et al. (1991) provide empirical evidence demonstrating that attitudes can be affected

in such a way.



It is also important to view the consumer in their social and cultural setting to further see

how celebrity endorsements increase sales and impact brands over time. Celebrities

usually form a very good example of a reference group appeal. This is particularly

beneficial to a marketer and a brand who can cash in on the success of the star and,

hence, push his brand. People who idolize their celebrities, hence, have a biased affinity

to the brand their favorites endorse. As time passes on, they believe that they by adopting

the brand that their celebrity endorses are becoming more like them. Celebrities can be

used in four ways namely: testimonial, endorsement, actor and spokesperson.

Right now the current hot favorite in India is roping in celebrities for social causes like

pulse polio, etc. This has shown to be having a positive effect on the people. In India,

Bollywood and sport personalities rule the mind-space and airwaves.

A recent study by FCB-ULKA was done on celebrity endorsements in India. Here, they

discussed two parameters: Compatibility Index and Trait Index when it came to finding

the relationship between a celebrity and a brand.

Compatibility Index meant that the consumers saw a suitable match between the brand

and the celebrity. Trait Index was based on the match between brand and celebrity

personality traits. The numbers showed that Compatibility Index was more favorable than

Trait Index. E.g., Hrithik Roshan scored high on his Compatibility Index (100) as

compared to his Trait Index with Coca Cola. But the end user being the consumer

preferred him. The other startling fact was the high points 93 and 100 by Salman Khan.

But ThumsUp had to drop him after Salman's accident. But people still associate Thums-

Up with the Khan. The other important factor is unaided association and Salman scored

higher than other competition. But in the long run, to protect the brand image, Salman

was dropped. So what is important is the way the customer perceives a brand and the

celebrity, so if the celebrity is favored, it does have a positive influence over the brand.

The other factor is the sheer image or popularity of the star, if the star's image is larger

than life, for example, for Amitabh Bachchan or Sachin Tendulkar, the Compatibility

Index seems to be a natural collorary.



Taking the millennium superstar Amitabh Bachchan, as an endorser, he fulfills all the

FRED objectives, namely, Familiarity (target market is aware of him, finds him friendly,

likeable, dependable and trustworthy); Relevance (which says that there should be a link

between the endorser and the product as well as between the endorser and the audience);

Esteem (the polio endorsement, for example, is successful as the masses see him as a

credible name-face-voice); Differentiation (in all his projections, he is seen to be one

among the masses, and yet he towers above them. He is different). His appeal is

universal; lesser mortals merely cater to specific niches. While there may be different

reasons, depending on the category, the lifecycle stage in which the brand is, and the

particular marketing mantra being the flavor of the moment, the main reason is to make

the brand stand out and to facilitate instant awareness.

For example, in the much talked about Shah Rukh - Santro campaign, the organization

wanted to overcome the shortcoming of an unknown brand, Korean at that. The objective

of the company was to garner faster brand recognition, association and emotional unity

with the target group.

The Santro ad showed the highest recall amongst auto ads, despite average media spends

for the category. Reason being simple - star power paid off.

Another example was the launch of Tamarind by S. Kumar, they reckoned they spent 40-

50 per cent less on media due to the sheer impact of using Hrithik Roshan who was riding

on the 'Kaho Na Pyar Hai' wave of Success. Ad recall was as high as 70 per cent, and

even the normally conservative trade got interested (so while a new brand would

normally take 8-10 months for entry into a Shopper's Stop, Tamarind was prominently

displayed within 20 days of launch). But now looking at the long term effects of Hrithik,

his movies began to flop and it may seem a sheer co-incidence that the Tamarind brand

died out as well.

Looking on the flip side, the biggest concerns from the advertiser's point of view is that

of 'vampiring' - the celebrity being bigger than the brand. Consider the 1980s when

Dinesh Suitings chose Sunil Gavaskar as their brand endorser. Soon it was seen that



Gavaskar completely overshadowed the brand. A similar case was that of Shah Rukh and

Mayur Suitings, where post termination of the contract, the corporate had to vest crucial

monies in a campaign where the sole objective was to wean the brand identity off Shah

Rukh Khan. So having a celebrity who may outshine your product is not such a viable

idea is the common consensus.

The other problem is that of duration of endorsement, and a possible mismatch between

the celebrity's life cycle and that of the brand. Owing to unavailability of dates,

sometimes long-term contracts are signed, but the celebrity's life might be over soon.

Multiple endorsements are the other problem. There is unfortunately a limited pool of

celebrities who can resonate with consumers. So you have the same celebrity endorsing

several categories, as in case of ShahRukh and Sachin, who are completely over-exposed

- one would assume a fair degree of confusion and little room for credibility, and hence, a

possible devaluing amongst customers.

Studying TV and print advertisements, one will realize that either some celebrities are

endorsing several brands or a specific brand is endorsed by different spokespersons.

These concepts are called multiple brand endorsement and multiple celebrity

endorsement respectively.

The question is, does this special form of celebrity endorsement affects consumers' brand

attitudes? Following Tripp et al. (1994), the endorsement of as many as four products

negatively influences the celebrity spokesperson's credibility (i.e., expertise and

trustworthiness) and likeability. They further add that these effects are independent of the

celebrity, i.e., the perceptions of even well-liked stars can be influenced. Reasons may be

found in the lack of distinctiveness, with one famous person endorsing several products

instead of concentrating on and representing one specific brand. Though these findings

may be valid, it does not automatically mean that the concept of multiple product

endorsement is useless. Further, research is suggested on potential positive effects, like

transfer of positive brand images, and on the shape of consumers' response when more

than four products are endorsed.



2.11 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.

Manufacturer’s Name & Reputation: A prominent brand name (Sony,

Kellogg’s, Bajaj, Tata) transfers positive associations.

The celebrity’s role is the most explicit and profound in incarnating user associations

among the above mentioned points. To comprehend this, let us analyze the multiplier

effect formula for a successful brand: -

S=P* D*AV -- the multiplier effect

Where

S is a Successful Brand

P is an Effective Product

D is Distinctive Identity

AV is Added Values

The realm of the celebrity’s impact is confined to bestow a distinctive identity and

provide AV to the brand; the celebrity does not have the power to improve or debilitate

the efficiency and features of the core product. Thus, we are gradually approaching an

evident proposition claiming, "The health of a brand can definitely be improved up to

some extent by celebrity endorsement. But one has to remember that endorsing a

celebrity is a means to an end and not an end in itself."

An appropriately used celebrity can prove to be a massively powerful tool that magnifies

the effects of a campaign. But the aura of cautiousness should always be there. The fact

to be emphasized is that celebrities alone do not guarantee success, as consumers

nowadays understand advertising, know what advertising is, and how it works. People

realize that celebrities are being paid a lot of money for endorsements and this

knowledge leads them to cynicism about celebrity endorsements.



2.12 The Need for Celebrity Endorsement

The charisma of the celebrities almost always entices people and their words are

worshipped by a lot of people. Their influence also goes on the political front, where they

are invited for political endorsement. The business firms, thus, resort to celebrity

endorsement to perk up brand recall and product sales. This has now become a trend and

is being perceived as a strategic means of brand building exercise.

The Elaboration Likelihood Model (EML) suggests that consumers will scrutinize

claims more in important situations (say, life saving drugs) than in unimportant ones. So,

for almost similar products like Coke and Pepsi, it makes sense to use endorsement. Also,

Friedman & Friedman have shown that a celebrity relative to a non-celebrity

spokesperson would be more effective for products high in psychological or social risk,

involving such elements as good taste, self-image, and opinion of others. For example,

when actor Shah Rukh Khan endorses Santro-Zip drive; the consumers are made to think

that he is giving his opinion to go for this car.

Two reasons why advertisers need celebrity endorsement are to increase the credibility &

attractiveness of their advertisement. This is solely to affect consumers' attitude towards

their brand. To justify this hypothesis, we can take the example of former Miss Universe

Sushmita Sen who helped the Epson brand of printers achieve instant recognition; even

with the established giants like Hewlett-Packard and Wipro in the running. Similarly,

actress Rani Mukherjee has turned the tables for Bata's ladies footwear brand called

Sundrop as sales increased by a whooping 500%.

Celebrity endorsements are impelled by virtue of the following motives: -

Instant Brand Awareness and Recall

Celebrity values define, and refresh

the brand image

Celebrity adds new dimensions to the brand image

Instant credibility or aspiration PR coverage

Lack of ideas



Convincing clients

2.13 Is celebrity advertising effective?

What are the benefits of representing India in the national cricket team? It is an

opportunity to compete with the best in the world and pitch one's talent against the best.

It is an opportunity to travel around the world. It is an opportunity to uphold national

pride. And make good money from every match played.

But there is more, a ticket to modelling in the advertising world (and a future perhaps in

Bollywood). Not surprisingly it's a very attractive profession. As advertisers pour crores

of rupees every year, into celebrity advertising.

Think of Sachin Tendulkar. He means Pepsi in soft drinks, Boost in malted beverages,

MRF in tires, Fiat Palio in cars, TVS Victor in two-wheelers, Colgate Total in

toothpastes, Britannia in biscuits, Visa in credit cards, Airtel in mobile services and

Band-aid.

Clearly, an overload of brands and categories associated with one star.

In the advertising world, celebrity advertising is seen as a substitute for 'absence of ideas'

-- and actually frowned upon. Yet it appears again and again.

The reasons are quite insightful.

A client hits upon celebrity as a solution when his agency is unable to present to him a

viable, exciting solution for his communication/marketing problem. He then feels that the

presence of a well-known face is an easy way out. It is rare that there is an idea on the

table and client and agency mutually agree that the presence of a celebrity will actually

lift the script. This is very similar to Bollywood blockbuster films where the cast is

decided upon and the script either written accordingly or re-engineered around the cast!



There is no doubt that celebrity advertising has its benefits –

The four Qs:

Quick saliency: It gets cut through because of the star and his attention getting value.

Goodlass Nerolac has ensured high saliency for its brand with the inclusion of Amitabh

Bach Chan in its advertising.

Quick connect: There needs to be no insight but the communication connects because

the star connects. Sachin, Shah Rukh and their ilk's ensure an easy connect for Pepsi with

the youth.

Quick shorthand for brand values: The right star can actually telegraph a brand

message fast without elaborate story telling. Kapil Dev and Sachin Tendulkar seem to

have done that successfully for Boost in the early '90s. And helped to differentiate it in

the malted beverages market.



Quick means of brand differentiation: In a category where no brand is using a

celebrity, the first that picks one up could use it to differentiate itself in the market. Boost

did it in the malted beverage category.

And Preity Zinta does all the above four for Perk -- connecting with the youth and

reinforcing the brand's youthful, spontaneous, energetic values.

In general celebrity endorsements are impelled by virtue of the following motives:

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.

An appropriately used celebrity can prove to be a massively powerful tool that magnifies

the effects of a campaign. But the aura of cautiousness should always be there. The fact

to be emphasized is that celebrities alone do not guarantee success, as consumers

nowadays understand advertising. They know what advertising is and how it works.

People realize that celebrities are being paid a lot of money for endorsements and this

knowledge makes them cynical about celebrity endorsements.



2.14 WHY COMPANIES USE CELEBRITIES – THE CELEBRITY EDGE

Psychologica l Factors: Celebrities generally satisfy the 'esteem needs' of an

individual. For example a movie actress is expected to possess a flawless skin and

a blemish free face. Her fans want to know the secret of her beauty, so she

becomes a natural endorser for beauty related products (cosmetics, soaps,

powder).

propping Up Awareness and Trust Levels:

Rahul Dravid BOB

To Communicate a Certain Message about the Company: Sachin Tendulkar as

brand ambassador gave it the desired facelift and image for the launch of 'Victor'

Value for Money:

To Position their Brand Distinctively: Lux worldwide has positioned itself as

the 'soap the filmstars use'. From Leela Chitnis to Aishwarya Rai, all top actresses

have modeled for Lux

Celebrity Standing for a Single Brand: Think Zakir Hussain and you are

reminded of 'Wah Taj' Taj Mahal tea. Ditto with A. R. Rahman for Airtel



2.15 The Process of Celebrity Endorsement

The process of celebrity endorsement is more of meaning translation & meaning

application. A deeper insight into this complex process is provided by the following

theory.

The Meaning Transfer Model

McCracken, the author to this model, has suggested that, "The effectiveness of the

endorser depends, in part, upon the meaning he or she brings to the endorsement

process." The celebrities' effectiveness as endorsers stems from the cultural meanings

with which they are endowed. It is a three-stage process of meaning transfer that involves

the formation of celebrity image, transfer of meaning from celebrity to the brand, and

finally, from the brand to the consumer.

Figure 1: The Meaning Transfer Model

To explain it with the help of an example, we can take the case of Rahul Dravid and

Castrol. The cricket icon is seen as "Mr. Dependable". And when he endorses Castrol, an

image of "dependability" is tagged on to the brand under promotion.



2.16 Compatibility of the celebrity’s persona with the

overall brand image

A celebrity is used to impart credibility and aspirational values to a brand, but the

celebrity needs to match the product. A good brand campaign idea and an intrinsic link

between the celebrity and the message are musts for a successful campaign. Celebrities

are no doubt good at generating attention, recall and positive attitudes towards

advertising provided that they are supporting a good idea and there is an explicit fit

between them and the brand. On the other hand, they are rendered useless when it comes

to the actual efficiency of the core product, creating positive attitudes to brands, purchase

intentions and actual sales. Certain parameters that postulate compatibility between the

celebrity and brand image are:

Fit with the Advertising Idea

Marketers now seek to adopt 360 degree brand stewardship in which the brand sees no

limits on the number of contact points possible with a target consumer. Advertising ideas,

thus, revolve around this approach, and the celebrity endorsement decisions are made

through these startegic motives.

One of the most successful celebrity endorsement campaign which reflects the fit

between the brand and the 360 degree advertising fit is Fardeen Khan and Provogue.

Provogue's positioning in the apparel market is of a young, active, party-going, attention-

grabbing brand and so is Fardeen Khan. The conjuction between the two has been

immensely impactful and brand managers have utilised this endorsement through 360

degree reinforcement. Provogue Lounge and extensive phased insertions in print in

selective publications reaching out to their target audience has made it as one of the

highest recalled celebrity endorsement.

Similarly, Richard Gere's recent endorsement for VISA in India has gained acclaim due

to its innovativeness and consumer connect. Brand marketers say that research reveals

that Richard Gere was the most popular face across the Asia Pacific region, and would

also fit into the persona of the brand meeting their communication objective to enhance



VISA's brand leadership and consumer preference, and the motive to continue the "All it

Takes" empowerment platform featuring international celebrities.

Celebrity-Target Audience Match

Smriti Irani endorsing the WHO recommnded ORS Campaign in India. Indian mothers

can associate with Smriti Irani through the facets she projects on screen or in regular life

which helps develop a connect with the target audience since mothers medicate their

children with ORS. The inserial placement of the campaign in "Kyunki Saas Bhi Kabhi

Bahu Thi" has won it an award from PR Week.

Similarly, Irfan Pathan endorsing Hero Cycles has gained the brand immense recall and

embarked through the positve association between the consumer and the brand.

Celebrity Values

Celebrity branding is all about the transfer of the value from the person to the product he

endorses or stands for. There are two concerns here. The first is how long this could last.

Can the person maintain his popularity (i.e., his performance or status ranking)? The

lifecycle of celebrity popularity varies a lot. The second concern is his private life -

personal integrity. If he is implicated in any kind of scandal, that would ruin the brand.

"Who would want to use Michael Jackson to brand their product?" (brandchannel.com)

Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness,

Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Rai

appearing in the Donate Eyes campaign are few examples, which reflect the transfer of

celebrity values to the brand, creating an impact that generates recall.

Costs of Acquiring the Celebrity

Consequently, companies must have deep pockets to be able to afford the best available

celebrities. Recently, a newspaper report showed how cola firms had gone beyond their

advertising budgets to get the best celebrities. Small firms that use celebrities' services

run greater risks if they invest large amounts. Although nobody is willing to say exactly

how much celebrities get paid, industry sources say Sachin Tendulkar's price is believed

to be between Rs. 2.0-2.5 crore per endorsement, and musician A. R. Rehman, who had



signed up with AirTel, is believed to have picked up Rs. 1.75 crore. Film-star Hrithik

Roshan was rumored to have picked up Rs. 2 crore for the Fly With Hrithik campaign to

push Close-Up, and Shahrukh Khan's rate seems to be between Rs. 2.5-3.0 crore.

Aishwarya Rai apparently picks up Rs. 1.25 crore for an endorsement and the Indian

cricket captain Saurav Ganguly is believed to get between Rs. 90 lakh to Rs. 1.5 crore,

while film-star Aamir Khan apparentlymakes Rs. 1.5 crore per endorsement.

Celebrity Regional Appeal Factors

R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India

are few examples of how celebrities are chosen to reach out to target audiences for brands

in regional markets.

Another interesting example would be of Steve Waugh campaigning for Tourism

Australia in India since he was one of the popular celebrities from Australia and could

carry the messge of Australia as a tourist destination. Other celebrities like Kylie

Minogue, Nicole Kidman from Australia can be prospective endorsers for Brand

Australia but not in the region of India.

Celebrity-Product Match

Cyrus Broacha is the brand ambassador for MTV since both the celebrity and the brand

are considered as friendly, young, mood-boosting, humourous and outspoken. MTV's

brand personality overlaps Cyrus Broacha's image as a brand.

Some more examples of compatible celebrity product match in which celebrity brand

attributes get transferred to the brand and increases the brand equity is of Mallaika Arora

& Freshizza from Pizza Hut, Govinda & Navratan Tel, Sanjay Dutt & Elf Oil, Sunny

Deol & Lux Undergarments, Aishwarya Rai & Nakshatra, etc.

Celebrity Controversy Risk

The perfect example here is of Salman Khan and the controversy in which he crushed a

man to death with his Pajero when he was driving under the influence of alcohol. Also,

any act on the part of the endorser that gives him a negative image among the audience

and goes on to affect the brands endorsed. The brand, in most instances, takes a bashing.



Celebrity Popularity

Celebrity Brand association like Garnier endorsed Tara Sharma & Simone Singh, Agni

Diamonds & Riama Sen don't get much brand recall, and even if they do, its difficult to

attribute it to the celebrities' endorsing the brand.On the other hand, HPCL has had

increased popularity and share of voice due to thendorsement of the brand through Sania

Mirza.

Celebrity Availability

In case of various brands, there are situations in which they prefer to go without a brand

face, since there is no brand-fit between the celebrities available and the brand. Also, due

to multiple endorsements by certain celebrities, brands refuse to adopt celebrity

endorsement since they fear dilution of the brand image.

Celebrity Physical Attractiveness

Bipasha Basu' physical attractiveness and her connect with the brand makes Levis

Strauss's campaign through celebrity in India, John Abraham endorsing Wrangler and

Timex Sunglasses are some examples which portray the celebrities' physical

attractiveness that helps create an impact.

Celebrity Credibility

The most important aspect and reason for celebrity endorsement is credibility. In a

research carried out among 43 ad agencies and companies, most experts believed that the

most important dimensions of credibility are trustworthiness and prowess or expertise

with regard to the recommended product or service (Miciak and Shanklin, 2002). One of

the most obvious reasons of Amitabh Bachchan endorsing plethora of brands is the

credibility of the celebrity and his recognition across consumers.To site one of the most

successful campaigns in which the celebrity's credibility has had an indelible impact on

the brand and has saved the brand is of Cadbury's. After the worm controversy, Amitabh

Bachchan's credibility infused into the brand through the campaign, helping it to get back

on track. The campaign has won an award for the same.



Multiple Endorsements

The case of multiple endorsements, both in terms of a single brand hiring multiple

celebrities and that of a single celebrity endorsing multiple brands, is often debated. At

times, consumers do get confused about the brand endorsed when a single celebrity

endorses numerous brands.

The recall then gets reduced and reduces the popularity of the brand. Not many people

can remember all the brands that a celebrity endorses and the chances of losing brand

recall increases if the celebrity endorses multiple brands. For example, in case of Sachin

Tendulkar people recall Pepsi, TVS Victor and MRF, but might not remember brands

like Britannia and Fiat. Similarly, for Amitabh Bachchan, consumers remember ICICI,

Pepsi, Parker Pens, Pulse Polio and BPL. They might get confused in the endorsement of

Nerolac or Asian Paints. Thus, for multiple endorsements where the same celebrity

endorses several brands, it boils down to the strength of the brand and the advertising

content.

Whether Celebrity is a Brand User

One of the strongest platforms to discuss this is through NGOs. Various celebrities

endorse NGOs and social causes since they believe in the social message that they need

to convey to the audience. One of the most successful campaigns has been executed by

PETA in which celebrities like Shilpa Shetty, Amisha Patel, Yana Gupta, Sheetal Malhar,

Mahima Choudhary laimed to believe in PETA's philosophy, and thereby endorse the

brandOn the other hand, while some would understand that Amitabh Bachchan would

have never used Navratan Tel, the target audience that the brands wants to reach out to

will be ready to believe that he used the oil and his endorsement thereby creates an

impact.



2.17 Successful celebrity endorsements for a brand- An Indian

perspective

In the history of advertising — products or services, political parties or ideas —

celebrities have played a seminal role in boosting the bottom line. Whether what's on

offer is a soft drink, beauty aid, ideology or public health message, it's the celebrity

endorsement that makes the difference between recognition and anonymity.

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 products- Pepsi, Clinic All Clear and Santro. Unique selling propositions are

best boosted when a popular credible figure vouches for it. A Govinda who claims to

wear a particular brand of banian impels scores to switch brands. An Aishwerya Rai

pledging her eyes motivates thousands to queue up to pledge theirs.

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

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

sales have increased by about 30 per cent.



2.18 HOWCELEBRITY ENDRSEMENT INFLUENCE THE

CONSUMER

The basis for the effectiveness of celebrity-endorsed advertising can be linked to

Kelman's processes of social influence as discussed by Friedman and Friedman.

According to Kelman, there are three processes of social influence, which result in an

individual adopting the attitude advocated by the communicator:

Compliance, Identification & Internalization:- These latter two processes are

particularly applicable to celebrity-endorsed advertising.

Compliance infers that another individual or group of individuals influences an

individual cause he or she hopes to achieve a favourable reaction from this other group.

This process of social influence is not directly applicable to celebrity advertising because

there is little, if any, interaction between the celebrity and the consumer.

Identification applies to the situation wherein the individuals emulate the attitudes or

behavior of another person or group, simply because they aspire to be like that person or

group. This process is the basis for referent power. It was found that celebrities are more

commonly liked than a typical consumer spokesperson.

Internalization as a process of social influence is said to occur when individuals adopt

the attitude or behavior of another person because that behavior is viewed as honest and

sincere and is congruent with their value system. The effectiveness of celebrity

advertising traditionally has not been strongly linked to this process, as a celebrity's

reason for promoting a product can just as easily be attributed by the consumer to an

external motive (i.e., payment of fee) as to an internal motive (i.e., the celebrity's true

belief in the value and benefit of the product). An important issue of concern relates to

the development of a strategy for use in Celebrity Advertising, which benefits from the

dramatic impact of dual support of both the identification and internalization processes of

social influence. Celebrities are well-liked, but the techniques that can be used to enhance

their credibility as spokespeople, and therefore, tie-in more closely with the

internalization process needs to be looked into



2.19 Review of literature:-

Attribution theory and endorsement effectiveness

Although past research documents a general tendency for consumers to believe in the

purity of the motives of celebrity endorsers, it is likely that this tendency varies

substantially both across consumers and across endorsers. For example, Tripp showed

that celebrities who endorse several products are viewed as less credible endorsers than

those who endorse only a single product. also demonstrated that celebrities who are

blamed for negative events (e.g. accidents) can have detrimental effects on the products

they endorse. In short, the effectiveness of a celebrity endorser is dynamic, dependent on

the celebrity, the product, and perhaps even societal conditions at the time and place

where the advertisement is shown. As such, it could be fruitful to abandon the use of

traditional measures of the celebrity endorser's trustworthiness or credibility in general in

favor of directly measuring the degree to which individuals evaluate the celebrity as

liking the endorsed product after viewing the advertisement. Such evaluations fit under a

class of judgment that has been referred to as “correspondent inferences” Correspondent

inferences more generally refer to any judgment in which observers use an individual's

behavior (e.g. an endorser saying that she loves Cheerios cereal) to infer congruent

dispositions in that individual (e.g. inferring that the endorser actually does love Cheerios

cereal). We propose that correspondent inferences are a direct measure of a celebrity's

credibility in the specific context of the advertisement, and thus should predict

consumers' attitudes toward the advertised product.H1. =Correspondent inferences will

be positively associated with attitudes toward the advertised product. Another interesting

question in this context is whether consumers will tend to make correspondent inferences

about celebrity endorsers. Early social psychological work in attribution theory suggests

not – a large endorsement fee should be viewed as a strong incentive toward endorsement

behavior, and thus observers should doubt that endorsements reflect true liking for the

product on the part of the endorser. However, research indicating that celebrities are

especially credible and trustworthy endorsers (e.g. Freiden, 1984) suggests that

consumers might believe celebrities like the product regardless of endorsement fees.



Furthermore, research examining a phenomenon called “correspondence bias” suggests

that observers are biased such that they tend to attribute behavior to personal

characteristics of the individual performing that behavior (e.g. liking for the product)

even when situational factors (e.g. endorsement fees) are sufficient to fully explain the

behavior.

Celebrity attributes that influence endorsement effectiveness

Previous research examining the effectiveness of celebrity endorsements has focused

primarily on personal attributes of the celebrity that enhance his or her persuasiveness

For example, a number of researchers have used models in which “source credibility”,

typically viewed as a function of trustworthiness and expertise, is the primary factor

determining how influential the endorser will be Trustworthiness refers to the general

believability of the endorser, and is thus broader but conceptually similar to

correspondent inferences about the endorser. Expertise refers to the product knowledge of

the endorser and thus to the validity of his or her claims regarding the product, and is

believed to be a factor that increases persuasiveness above and beyond the effects of

trustworthiness.H3.=Perceived product knowledge of the endorser will be positively

associated with attitudes toward the advertised product.Other researchers have

emphasized the importance of source attractiveness in determining liking for the endorser

and thereby increasing endorsement effectiveness To the extent that attractiveness is an

important determinant of endorsement effectiveness, research based on the matchup

hypothesis for a discussion of the matchup hypothesis in relation to endorser expertise)

suggests that its importance is limited by the degree to which attractiveness “fits” well

with the advertised product Thus, for example, physical attractiveness might be useful

when selling cosmetics but not when selling computers. Furthermore, although source

attractiveness research has focused primarily on physical attractiveness, attractiveness

can also be viewed more generally as a positive attitude toward the endorser. Such

positive attitudes might result from admiration or perceived similarity although effective

advertising is more likely to rely on the admiration component because the influential

power of celebrities is closely connected to their status as role models.



Some researcher conducted a research to measure the effectiveness of celebrity

endorsement advertisements. This is given below.

Experiment 1:

Participants

The participants were 66 students (41 females, 25 males) at the University of Tromsø

who participated on a voluntary basis. The mean age of the participants was 24.59 years

(SD=1.91 years).

Materials

Baseline measure

Prior to examining any of the other experimental materials, participants were asked to

indicate what they believed people in general think about the Omega watch brand on a

scale from 1=“not good at all” to 7=“very good”.

Endorsement advertisement

Participants were given a black-and-white copy of a printed advertisement in which

Cindy Crawford endorsed the luxury, diamond-set watch “Constellation Carrè” from

Omega. The advertisement had a close-up picture of Cindy Crawford with the watch in

front of her. “Cindy Crawford's choice” was printed above the picture, and “My choice”

was written in cursive next to the Omega logo at the bottom of the advertisement.

Evaluation questionnaire

The evaluation questionnaire included measures of correspondent inferences, attitude

toward the advertisement, attitude toward the product, and attitude toward the celebrity

endorser. Correspondent inferences were measured with three items asking participants to

indicate their level of belief that Cindy Crawford:



1. likes the Omega brand;

2. frequently uses the Omega brand; and

3. Views the Omega brand as a good product.

Each of these items was answered on a seven-point scale ranging from 1=“Not at all

likely” to 7=“Extremely likely”. The correspondent inference items showed satisfactory

internal reliability (α=0.83).

All attitude items used semantic differential scales with a value of one associated with the

more negative word and a value of seven associated with the more positive word.

Attitude toward the advertisement was measured using the items pleasant/unpleasant,

likeable/not likeable, interesting/uninteresting, and good/bad; attitude toward the product

was measured using the items desirable/not desirable, pleasant/unpleasant, likeable/not

likeable, and good/bad; attitude toward the endorser was measured using the items

interesting/uninteresting, pleasant/unpleasant, likeable/not likeable, and good/bad. Each

of the three attitude measures showed satisfactory internal reliability (attitude toward

advertisement: α=0.85; attitude toward product: α=0.82; attitude toward endorser:

α=0.87).

Participants were also asked to rate how much they admired Cindy Crawford as well as

Cindy Crawford's physical attractiveness, sense of style (attractiveness relevant to the

product domain), similarity to the participant, and knowledge of the product domain. All

of these ratings were made on seven-point scales where 1 indicated low values (e.g. “not

at all attractive”) and 7 indicated high values (e.g. “very attractive”).

Analyses

In addition to preliminary co relational analyses, the primary results will be presented

using a structural equations model developed in Amos 4.0. In addition to the chi-square

measure of absolute fit, the comparative fit index (CFI) and the root mean square error of

approximation were used as measures of relative model fit. Even for models with poor

absolute fit, recent research suggests that CFI values of 0.95 or higher and RMSEA

values of 0.08 or lower indicate reasonably well overall model fit.



Experiment 2:

Participants

The participants were 66 students (39 females, 25 males, 2 not reported) who were

recruited at a higher education conference in Oslo, Norway and participated on a

voluntary basis. The mean age of participants was 24.28 years (SD=7.75 years).

Materials

Endorsement advertisement

Participants were given a black-and-white copy of a printed advertisement in which

Pierce Brosnan endorsed Goodlife cologne from Davidoff. The advertisement consisted

of a picture of a Goodlife cologne bottle on the left and a close-up picture of Pierce

Brosnan on the right. The words “Davidoff” and “Goodlife” were written on the ad at the

bottom of Pierce Brosnan's picture.

Evaluation questionnaire

The evaluation questionnaire included measures of correspondent inferences, attitude

toward the advertisement, attitude toward the product, and attitude toward the celebrity

endorser. Correspondent inferences were measured with three items asking participants to

indicate their level of belief that Pierce Brosnan:

1. likes Goodlife cologne;

2. frequently uses Goodlife cologne; and

3. views Goodlife cologne as a good product.

Each of these items was answered on an 11-point scale ranging from 0=“Not at all likely”

to 10=“Extremely likely”. The correspondent inference items showed satisfactory internal

reliability (α=0.82).All attitude items used semantic differential scales with a value of one

associated with the more negative word and a value of seven associated with the more

positive word. Attitude toward the advertisement was measured using the items



pleasant/unpleasant, likeable/not likeable, interesting/uninteresting, and good/bad;

attitude toward the product was measured using the items desirable/not desirable,

pleasant/unpleasant, likeable/not likeable, and good/bad; attitude toward the endorser was

measured using the items interesting/uninteresting, pleasant/unpleasant, likeable/not

likeable, and good/bad. Each of the three attitude measures showed satisfactory internal

reliability (attitude toward advertisement: α=0.87; attitude toward product: α=0.91;

attitude toward endorser: α=0.86).Participants were also asked to rate Pierce Brosnan's

knowledge of the product domain, similarity to themselves, and physical attractiveness.

All of these ratings were made on seven-point scales where 1 indicated low values (e.g.

“not at all attractive”) and 7 indicated high values (e.g. “very attractive”).

Conclusion

The high costs associated with product advertising make it imperative that advertising

messages effectively increase consumers' interest in the product. With that in mind,

studies that examine characteristics of advertisements that make them effective are

especially valuable. The present experiments represent a first step in identifying what

makes endorsement advertisements effective based on work in attribution theory within

social psychology. The results suggest that endorsement advertising effectiveness can be

strongly influenced by consumers' inferences concerning whether the endorser truly likes

the product. Advertisers, on the other hand, often appear to be satisfied with merely

creating an association between a popular endorser and their product with the hope that

the endorser's positive image will somehow “rub off” on the product. The present

research suggests that advertisers should put more effort not only into choosing endorsers

who are well matched with products, but also into making strong arguments and

believable explanations for why endorsers truly do like the products they endorse.



Figure 1Model predicting attitude toward the advertised product in Experiment 1



2Model predicting attitude toward the advertised product in Experiment



2.20 Important Celebrity Attributes

While selecting a celebrity as endorser, the company has to decide the promotional

objective of the brand and how far the celebrity image matches with it. The selection is in

fact a collaboration, from which both the company and the celebrity gains. The most

important attribute for a celebrity endorser is the

Trustworthiness: The target audience must trust that a celebrity carries a particular

image and it must match with the product. The second attribute in order of importance is

likeability: The celebrity also must be accepted as a popular icon by a large cross-section

of the audience.

Similarity: between the target audience and the celebrity is the third important attribute.

A person well-known in a society can have greater impact than a celebrity of a different

world. If the endorser and receiver have similar needs, goals, interests and lifestyles, the

position advocated by the brand communication is better understood and received.

Similarity is also used to create a situation where the consumer feels empathy for the

person shown in the commercial. The bond of similarity between the endorser and the

receiver increases the level of persuasiveness. Apart from that,

Expertise: is also believed to be another important attribute.



2.21 The Argument for Celebrity Endorsement

Brands have been leveraging celebrity appeal for a long time. Across categories, whether

in products or services, more and more brands are banking on the mass appeal of

celebrities. As soon as a new face ascends the popularity charts, advertisers queue up to

have it splashed all over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in

endorsements in a matter of a few months. The accruement of celebrity endorsements can

be justified by the following advantages that are bestowed on the overall brand:

Establishment of Credibility: Approval of a brand by a star fosters a sense of

trust for that brand among the target audience- this is especially true in case of

new products. We had the Shah Rukh-Santro campaign. At launch, Shah Rukh

Khan endorsed Santro and this ensured that brand awareness was created in a

market, which did not even know the brand.

Ensured Attention: Celebrities ensure attention of the target group by breaking

the clutter of advertisements and making the ad and the brand more noticeable.

PR coverage: is another reason for using celebrities. Managers perceive

celebrities as topical, which create high PR coverage. A good example of

integrated celebrity campaigns is one of the World’s leading pop groups, the

Spice Girls, who have not only appeared in advertisements for Pepsi, but also in

product launching and PR events.

Time saving: Celebrity is able to build brand credibility in a short period of time.

Higher degree of recall: People tend to commensurate the personalities of the

celebrity with the brand thereby increasing the recall value. Golf champion Tiger

Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta-

Jones is used by T-Mobile and Elizabeth Arden. 007 Pierce Brosnan promotes

Omega, BMW, and Noreico.

Associative Benefit: A celebrity’s preference for a brand gives out a persuasive

message - because the celebrity is benefiting from the brand, the consumer will

also benefit.



Mitigating a tarnished image: Cadbury India wanted to restore the consumer's

confidence in its chocolate brands following the high-pitch worms controversy; so

the company appointed Amitabh Bachchan for the job. Last year, when the even

more controversial pesticide issue shook up Coca-Cola and PepsiCo and resulted

in much negative press, both soft drink majors put out high-profile damage

control ad films featuring their best and most expensive celebrities. While Aamir

Khan led the Coke fightback as an ingenious and fastidious Bengali who finally

gets convinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and

Sachin Tendulkar together once again in a television commercial which drew

references to the `safety' of the product indirectly.

Psychographic Connect: Celebrities are loved and adored by their fans

and advertisers use stars to capitalise on these feelings to sway the fans

towards their brand.

Demographic Connect: Different stars appeal differently to various

demographic segments (age, gender, class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be

a good bet to generate interest among the masses.

Providing testimony: Another benefit of using celebrity endorsers is that

s/he can provide testimony for a product or service, particularly when the

product has contributed to their celebrity. The more familiar an endorser,

the more likely consumers are to buy the endorsed product.

Rejuvenating a stagnant brand: With the objective of infusing fresh life

into the stagnant chyawanprash category and staving off competition from

various brands, Dabur India roped in Bachchan for an estimated Rs 8 crore.

Celebrity endorsement can sometimes compensate for lack of

innovative ideas.



2.22 The Argument against Celebrity Endorsement

The celebrity approach has a few serious risks:

1. The reputation of the celebrity may derogate after he/she has endorsed the

product: Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson,

Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on

the brand, celebrity endorsers may at times become liabilities to the brands they

endorse.

2. The vampire effect: This terminology pertains to the issue of a celebrity

overshadowing the brand. If there is no congruency between the celebrity and the

brand, then the audience will remember the celebrity and not the brand. Examples

are the campaigns of Dawn French—Cable Association and Leonard Rossiter—

Cinzano. Both of these campaigns were aborted due to celebrities getting in the

way of effective communication. Another example could be the Castrol

commercial featuring Rahul Dravid.

3. Inconsistency in the professional popularity of the celebrity: The celebrity may

lose his or her popularity due to some lapse in professional performances. For



example, when Tendulkar went through a prolonged lean patch recently, the

inevitable question that cropped up in corporate circles - is he actually worth it?

The 2003 Cricket World Cup also threw up the Shane Warne incident, which

caught Pepsi off guard. With the Australian cricketer testing positive for

consuming banned substances and his subsequent withdrawal from the event,

bang in the middle of the event, PepsiCo - the presenting sponsor of the World

Cup 2003 - found itself on an uneasy wicket

4. Multi brand endorsements by the same celebrity would lead to overexposure:

The novelty of a celebrity endorsement gets diluted if he does too many

advertisements. This may be termed as commoditisation of celebrities, who are

willing to endorse anything for big bucks. Example, MRF was among the early

sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar

endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has

scaled down.

5. Celebrities endorsing one brand and using another (competitor): Sainsbury’s

encountered a problem with Catherina Zeta Jones, whom the company used for its

recipe advertisements, when she was caught shopping in Tesco. A similar case

happened with Britney Spears who endorsed one cola brand and was repeatedly

caught drinking another brand of cola on tape.

6. Mismatch between the celebrity and the image of the brand: Celebrities manifest

a certain persona for the audience. It is of paramount importance that there is an

egalitarian congruency between the persona of the celebrity and the image of the

brand. Each celebrity portrays a broad range of meanings, involving a specific

personality and lifestyle. Madonna, for example, is perceived as a tough, intense

and modern women associated with the lower middle class. The personality of

Pierce Bronson is best characterized as the perfect gentlemen, whereas Jennifer

Aniston has the image of the ‘good girl from next door’.



2.23 Brand, Celebrities & Consumer

Factors Impacting a Brand while being viewed by a Consumer in Media

The model above shows the various factors that affect a celebrity endorsed brand while

viewed by a consumer in the media (both TV and print). The central idea being the

impact on brand. The three major parts to a brand being shown are: -

The Product

Advertisement

The celebrity endorsing it

It is important is to study the relationship between these factors and how they together act

for or against the brand.



The product is important, of course, it may fulfill a need, want or a desire. Quality is

quintessential and, hence, nowadays it is understood the product is of highest quality. So

what next? The advertisement is important as a good product could see an early exit if the

advertisement is handled badly, and otherwise, a mediocre product which is tastefully

handled goes a long way. Lastly, the celebrity in the advertisement, recall, trust,

familiarity are some of the reasons that they are used. Now consider the interactions of

these individual factors. The best of superstars can be doing the advertisement but if the

product is far from the image the star has, the whole advertisement is a waste. Imagine an

Amitabh doing an advertisement for ad for youth apparel. Well, exceptions can be there

but then again it depends on the way it is done. Believability is of vital importance, the

TVS Victor advertisement shows us the bike being compared to the bat of Sachin and the

strokes he plays. (Classically executeadvertisement with the bike and Sachin coming out

as winners). The relationship between a product and its advertisement again can be either

dependant or none. In that case, a shock value makes people remember the brand better

and, hence, a possible long term loyalty.



2.24 Celebrity Selection

There are various scientific ways in which the right celebrity is selected for the product

endorsement, which are discussed here after

Stereotyping

Tellis defines stereotypes as perceptions and depictions of individuals based on

simplistic, biased image of the group to which they belong, rather than on their own

individual characteristics. For example: its better to select celebrities who say are teens

for chocolate advertisements and females for detergent ads, etc.

The TEARS Model

The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection.

These are: -

Trustworthiness: For example - Legendary actor Amitabh Bachchan who is an

icon of trust; promoting ICICI Bank.

Expertise: For example - Golfer Tiger Woods for a sports brand.

Attractiveness: For example - Tennis player Anna Kournikova who earns 10

Million dollars per year in just endorsement.

Respect: For example - Former Miss World Aishawarya Rai and the Eye

donation campaign.

Similarity: For example - a child artist promoting a chocolate brand. A celebrity

scoring high on all the above attributes can turn out to be a good endorser for the

brand under question.



The No TEARS ModelThe "No TEARS" approach is a tool for managers and their advertisers how to go about

selecting celebrities so as to avoid the pitfalls from making an unwise decision. It gauges

the following information: -

celebrity & audience match up,

celebrity & brand match up,

celebrity credibility,

celebrity attractiveness,

cost consideration,

a working ease and difficulty factor,

an endorsement saturation factor,

a likelihood-of-getting-into-trouble factor

Selecting the right celebrity does more than increasing sales; it can create linkages with

the celebrities' appeal, thereby adding new dimension to the brand image. Research

conducted by Katherine Eckel has revealed that celebrities can get people to make a

better choice but cannot influence 'people to make a foolish choice'.

The success of celebrity endorsement in India can be sought from a market research

conducted earlier which found that 8 out of 10 TV commercials scored the highest recall

were those with celebrity appearances. A few examples: Sachin Tendulkar - Adidas,

Sourav Ganguly - Britannia, Leander Paes & Mahesh Bhupati - J. Hampstead, Shah Rukh

Khan - Pepsi, Sushmita Sen - Epson, and Aishwarya Rai - Coke.



2.25 Difference between Brand Ambassador & Brand Face

A Brand Ambassador would be one who is not only a spokesperson for the brand or is

just appearing as a testimonial for the brand’s benefits. He/she is an integral part of the

brand persona and helps to build an emotionale, which goes beyond just appearing on TV

commercials.

He takes up the cause of a Brand Champion and is associated with every aspect related

with the brand. What is more, there is a significant difference between making just an

endorsement for saya shampoo or an automobile, and being that brand’s alter ego. Both

parties take the latter far more seriously to the deal. So a

brand ambassador would be involved in press releases, he/she would be actively

participating in any sales promotion, sporting the Brand all the while. For example,

Fardeen Khan is the brand ambassador for Provogue while he remains a brand face for

Lux Body Wash.

On the other hand, a Brand Face would be the current celebrity who is just used as a tool

to increase brand recall and is only appearing in the advertisement. It is usually seen that

a brand face is a temporary contract and is very short term at times. An example would be

Sona Chandi Chawanpryash using Sourav Ganguly for a while in its commercials. Brand

faces are easily forgotten and fades away with the campaign’s end

2.26 Types of Celebrity Endorsements



Celebrity branding has many aspects. A slight change in the type of branding used can

result in either a great success or a dismal failure. Celebrity branding falls into five

general categories:

Testimonial: The celebrity acts as a spokesperson for the brand.

Imported: The celebrity performs a role known to the audience.

Invented: The celebrity plays a new, original role.

Observer: The celebrity assumes the role of an observer commenting on the

brand.

Harnessed: The celebrity's image is integrated with the ad's storyline.

Spokepersons:

2.27 Multiple Brand and Celebrity Endorsement

Studying TV and print advertisements, one will realize that either some celebrities are

endorsing several brands or a specific brand is endorsed by different spokespersons.



These concepts are called multiple brand endorsement and multiple celebrity

endorsement respectively.

Some spokespersons are “shared” by different advertising firms, i.e. they are promoting

more than one brand (Tripp et al. 1994, p. 535). Golf champion Tiger Woods has

endorsed American Express, Rolex, and Nike. Actress Catherine Zeta Jones is used by T-

Mobile and Elizabeth Arden. James Bond character Pierce Brosnan promotes Omega,

BMW, and Noreico. Top model and actress Milla Jovovich is a spokesperson for a broad

range of brands, including L’Oréal, Banana Republic, Christian Dior, Calvin Klein, and

Donna Karan. (View Figure 4).

The question is, does this special form of celebrity endorsement does affect consumers’

brand attitudes? Following Tripp et al. (1994), the endorsement of as many as four

products negatively influences the celebrity spokesperson’s credibility (i.e. expertise and

trustworthiness) and likeability. They further add, that these effects are independent of

the celebrity, i.e. the perceptions of even well-liked stars can be influenced. Reasons may

be found in the lack of distinctiveness, with one famous person endorsing several

products instead of concentrating on and representing one specific brand. Though these

findings may be valid, it does not automatically mean that the concept of multiple

product endorsement is useless. Further research is suggested on potential positive

effects, like transfer of positive brand images, and on the shape of consumers’ response

when more than four products are endorsed.

More satisfying results have been achieved on the concept of multiple celebrity

endorsement. Hsu and McDonald (2002, p.21), studying the effectiveness of the ‘milk

mustache campaign’ on consumer perceptions, found that endorsing a product with

multiple celebrities “can be beneficial for appealing to various audiences to which the

product is aimed.” The watch manufacturer Omega, for example, promotes its brand by

matching selected celebrities with the company’s product lines.



With celebrity spokespersons representing a diverse mix of type, gender, and age, they

can effectively be used to endorse specific brand lines of a company as shown by the

cosmetic manufacturer L’Oréal, which matches its diverse product lines in accordance

with the celebrity’s meanings.

(Source: http://www.omega.ch/omega/wo_star_ambass_entry)


http://www.omega.ch/omega/wo_star_ambass_entry


2.28 Advantages of a celebrity endorsing a Brand

Brands have been leveraging celebrity appeal for a long time. Across categories, whether

in products or services, more and more brands are banking on the mass appeal of

celebrities. As soon as a new face ascends the popularity charts, advertisers queue up to

have it splashed all over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in

endorsements in a matter of a few months. The accruement of celebrity endorsements can

be justified by the following advantages that are bestowed on the overall brand:

Establishment of Credibility: Approval of a brand by a star fosters a sense of

trust for that brand among the target audience- this is especially true in case of

new products. We had the Shah Rukh-Santro campaign. At launch, Shah Rukh

Khan endorsed Santro and this ensured that brand awareness was created in a

market, which did not even know the brand.

Ensured Attention: Celebrities ensure attention of the target group by breaking

the clutter of advertisements and making the ad and the brand more noticeable.

PR coverage : is another reason for using celebrities. Managers perceive

celebrities as topical, which create high PR coverage. A good example of

integrated celebrity campaigns is one of the World’s leading pop groups, the

Spice Girls, who have not only appeared in advertisements for Pepsi, but also in

product launching and PR events. Indeed, celebrity-company marriages are

covered by most media from television to newspapers (e.g. The Spice Girls and

Pepsi)



Higher degree of recall: People tend to commensurate the personalities of the

celebrity with the brand thereby increasing the recall value. Golf champion Tiger

Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta-

Jones is used by T-Mobile and Elizabeth Arden. 007 Pierce Brosnan promotes

Omega, BMW, and Noreico.

Associative Benefit: A celebrity’s preference for a brand gives out a persuasive

message - because the celebrity is benefiting from the brand, the consumer will

also benefit.

Mitigating a tarnished image: Cadbury India wanted to restore the consumer's

confidence in its chocolate brands following the high-pitch worms controversy; so

the company appointed Amitabh Bachchan for the job. Last year, when the even

more controversial pesticide issue shook up Coca-Cola and PepsiCo and resulted

in muchnegative press, both soft drink majors put out high-profile damage control

ad films featuring their best and most expensive celebrities. While Aamir Khan

led the Coke fightback as an ingenious and fastidious Bengali who finally gets

convinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin

Tendulkar together once again in a television commercial which drew references

to the `safety' of the product indirectly.

Psychographic Connect: Celebrities are loved and adored by their fans and

advertisers use stars to capitalise on these feelings to sway the fans towards their

brand.

Demographic Connect: Different stars appeal differently to various demographic

segments (age, gender, class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be a

good bet to generate interest among the masses.



Rejuvenating a stagnant brand: With the objective of infusing fresh life into

thestagnant chyawanprash category and staving off competition from various

brands,Dabur India roped in Bachchan for an estimated Rs 8 crore.

Celebrity endorsement can sometimes compensate for lack of innovative

ideas.

2.29 Disadvantages of a celebrity endorsing a brand

The celebrity approach has a few serious risks:

The reputation of the celebrity may derogate after he/she has endorsed the

product: Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson,

Madonna, andMichael Jackson. Since the behaviour of the celebrities reflects on

the brand, celebrity endorsers may at times become liabilities to the brands they

endorse.

The vampire effect: This terminology pertains to the issue of a celebrity

overshadowing the brand. If there is no congruency between the celebrity and the

brand, then the audience will remember the celebrity and not the brand. Examples

are the campaigns of Dawn French—Cable Association and Leonard Rossiter—

Cinzano. Both of these campaigns were aborted due to celebrities getting in the

way of effective communication. Another example could be the Castrol

commercial featuring Rahul Dravid.

Inconsistency in the professional popularity of the celebrity: The celebrity

may lose his or her popularity due to some lapse in professional performances.

For example, when Tendulkar went through a prolonged lean patch recently, the

inevitable question that cropped up in corporate circles - is he actually worth it?

The 2003 Cricket World Cup also threw up the Shane Warne incident, which

caught Pepsi off guard. With the Australian cricketer testing positive for

consuming banned substances and his subsequent withdrawal from the event,



bang in the middle of the event, PepsiCo – the presenting sponsor of the World

Cup 2003 - found itself on an uneasy wicket

Multi brand endorsements by the same celebrity would lead to overexposure:

The novelty of a celebrity endorsement gets diluted if he does too many

advertisements. This may be termed as commoditisation of celebrities, who are

willing to endorse anything for big bucks. Example, MRF was among the early

sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar

endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has

scaled down.

Celebrities endorsing one brand and using another (competitor): Sainsbury’s

encountered a problem with Catherina Zeta Jones, whom the company used for its

recipe advertisements, when she was caught shopping in Tesco. A similar case

happened with Britney Spears who endorsed one cola brand and was repeatedly

caught drinking another brand of cola on tape.

Mismatch between the celebrity and the image of the brand: Celebrities

manifest a Certain persona for the audience. It is of paramount importance that

there is an egalitarian congruency between the persona of the celebrity and the

image of the brand. Each celebrity portrays a broad range of meanings, involving

a specific personality and lifestyle. Madonna, for example, is perceived as a

tough, intense and modern women associated with the lower middle class. The

personality of Pierce Brosnan is best characterized as the perfect gentlemen,

whereas Jennifer Aniston has the image of the ‘good girl from next door’.



2.30 Facts over the Years

Approximately 60-70% of all television commercials feature famous people.

Aishwarya Rai had once endorsed 'Fuji-Film' camera rolls. The company made an

agreement with her to endorse their camera rolls. But, Aishwarya's magic did not

work there and they had to terminate the contract.

Amitabh Bachchan (AB) was seen endorsing Maruti's Versa Car. The AB factor

worked wonders as far as generating curiosity was concerned but the actual

product couldn't meet the expectations of people, and hence, the endorsement

strategy didn't work. He has been used very effectively by Parker Pens, ICICI

Bank and Cadbury's to name a few.

Bata’s sales doubled soon after they adopted Rani Mukherjee as their brand

ambassador.

Magic Johnson lost his endorsement deals when he announced in 1991 that he's

HIV-positive. It wasn't until July 2003 that he landed his first endorsement deal

since the announcement.

Ticket sales at Wimbledon are known to have shot up significantly for all matches

featuring the latest 'sex-symbol' on the circuit - Anna Kournikova. An average

player who is yet to win even a single tennis tournament, Anna is known to have

earned far more from endorsements than her tennis career could ever have given

her.



2.31 Celebrity Endorsements as a Strategy

How Tiger Woods’s endorsement of Accenture is beneficial to the company in

sending the message of high performance. This is just an example of having

celebrity endorsement. Marketers of consumer products have long used celebrities

to endorse their product - and this has become a common strategy. I therefore have

chosen to write about the theory and the intentions behind the strategy of using

celebrity endorsements.



2.32 Objectives of Marketing Communications

Defining the objectives of the advertisements is the first step. In general, there are

four major objectives for any advertisement. Note that not all advertisements need

to have all the objectives.

1. Establish the product need

stablishing a need for a product or a product category is the necessary first step. This

is more important in new-to-world category of products In Indian context, consider

the advertisement for Polio Immunization drive - the TV advertisement featured

Amitab Bachan telling that immunization is a must for every child - while people

suffering from polio are shown in the background along with healthy kids. This

advertisement used a celebrity to create the need for polio immunization. Another

good example is Toyota’s advertisement of Innova in India. The TV advertisement

prominently shows Amir Khan playing different roles while traveling in an Innova.

The different roles - establish the need for such a big car in India. ( Note that Indian

car market is dominated by small cars - which can seat only four adults, Toyota

wanted to establish the need for a 8 seater car in India)

2. Create Brand Awareness

Once the need for a product is established, customers must be able to associate the

brand with the product category. For example iPod is strongly associated with

portable MP3 players, Nike with sports shoes etc.. A classic example of this is Nike’s



use of Michael Jordan advertising for Nike. This advertisement instantly created a

strong association of Nike with basketball shoes.

3.Set customer expectations

Brand value comes from the customers experience with the product. If the product

meets or beats his expectations, then a positive brand image is created, else a negative

brand image is created. Therefore it is essential to set the customer expectations

accordingly. This is most common in established consumer products - Beauty

products, household cleaning products, food products etc.

4.Create a purchase intention

These are marketing promotion advertisements - Buy one, get one free, or get additional

discounts if you buy within a particular date etc.. The sole purpose of such

communication messages is to encourage customers to buy immediately or within a short

period after seeing Use of celebrity endorsements to create a purchase intention has been

very limited. This is mainly because such advertisements adversely affect the personality

brand value of the celebrity. Being associated with a discount deal is not favorable image

for the celebrity and the customer.



2.33 Brand Image & Celebrity

Research has shown that there are three aspects that influence a customer's attitude and,

hence, the long term impact on the brand - Attractiveness, Trustworthiness and Expertise.

The matrix below shows us the images and the celebrities: -

Aspect of Brand Image Celebrity Product

Attractiveness

Elegance Aishwarya Rai Nakshatra Diamonds

Beauty Madhuri Dixit Emami

Classy Saif and Soha Ali Khan Asian Paints-Royale

Stylish Saif Ali Khan Provogue

Amitabh Bachhan Reid & Taylor

Trustworthiness Honest Tarun Tejpal Tehelka

Reliable MS Dhoni TVS Star City

Expertise Knowledge Sachin & Sehwag Reebok

Qualified Naina Balsavar Shampoo

Hence, we see depending on the product and aspect of brand, the choice of the celebrity

is important so that the celebrity can reflect that and not go against the brand.



We talk about Brand Equity, Brand Identity and Position. It is worthwhile to see the

effect of a celebrity on these critical elements. Brand equity essentially made up of

loyalty, awareness, perceived quality, associations, and other proprietary brand assets.

The celebrity should be chosen in such a way as to reinforce and strengthen the brand in

all these elements but the question is, can he? Take an example of another star Fardeen

Khan, who endorses Provogue. Snazzy fashionable apparel from an Indian manufacturer

with the backing of a star son was a great idea for the brand image. It was able to attract

new customers who were fashion conscious but unable to afford high price international

brands.



Awareness of the brand was phenomenal as fashion shows, print and media advertising

was booming and Fardeen and Provgue had become a national phenomenon. Quality was

given utmost importance and, hence, from the manufacturer side, the commitment to the

customer was complete. Competition was present but sales figures showed Provogue

reaping handsomely. Then the image of the so-called Bad Boy Fardeen emerged with the

drug and brawls in night clubs. This did lead to a certain discontent amongst fans of the

star and the brand. But remarkably not much effect on sales. It seemed that the consumers

had forgotten Fardeen's issues and remained loyal to the brand. Today Fardeen is still the

mainframe picture of every advertisement and the brand has not lost any of its shine.



2.34 Measuring a Celebrity Endorsement

It becomes very important to measure the effectiveness of a celebrity (or determine the

worth of one). Few of the methods of measurement that are in practice are: -

The Q-SCORE Method

The FRED Principle

The Q-SCORE Method

There is a way to measure the credibility, believability, popularity, and like-ability of a

celebrity. It's called a Q-Score, and you can purchase the Q-Scores of the candidates

you're considering.

Consider both sides of the deal - for a client who wanted to use a celebrity endorser, and

for a celebrity who was looking for an endorsement opportunity. Once you've defined the

kind of endorser you need (e.g., athlete, actor, male/female, young/old, etc.), its well

worth going through the Q-Score exercise.

Evaluating the contribution of the endorser after you've already made the decision is not

nearly as straightforward. One time, many years ago, a company actually shot a

commercial with a well-known (high Q-Score) endorser for national use, and it shot the

same commercial with a good actor, not so well-known. The company ran a limited

market test for 6 months with the unknown actor (cutting in the commercials locally, over



national network schedule) so could quantify the sales impact of the celebrity. By the

way, the celebrity was worth every penny of his outrageous fee. It ended up using him for

years, and he helped the brand reach market leadership almost entirely on the strength of

the commercials in which he appeared.

The FRED Principle

This concept is seen as the foundation of a successful endorser selection.

F is for Familiarity. The target market must be aware of the person, and perceive him or

her as empathetic, credible, sincere and trustworthy.

R is for Relevance. There should be a meaningful link between the advertised brand and

the celebrity endorser, and more important, between the celebrity endorser and the

defined target market. The audience must be able to identify with the person. If

consumers can immediately associate with an endorser, they will feel more predisposed

to accepting, buying and preferring the brand to competition.

E is for Esteem. Consumers must have the utmost respect and confidence for the

celebrity. Amitabh Bachhan & Tendulkar have these. So do Shahrukh Khan, Preity Zinta,

Kapil Dev among others. The public respect them because of their distinguished careers

and unassailable salesmanship.

D is for Differentiation. The target consumers must see the endorser as a cut above the

rest. If there is no perceived disparity among celebrities, then the strategy will not work.

Michael Jordan is an example of an international celebrity that rises above the clutter.

This proves to be a huge contributory factor to his effectiveness as an endorser.

The Fred concept is not a guarantee to success, but it can serve as a guideline when

selecting a spokesperson. Each organization and its objectives are different, and should

be evaluated on an individual basis.

The following is given a compatibility index and trait fit index of various celebrities and

the product they endorsed.



Brand CelebrityUnaided

Association

Compatibility

Index

Trait Fit

Index

Thums-up Akshay kumar 93 93 100

Coke Hrithik Roshan 83 100 50

Adidas Sachin 73 85 25

Whirlpool Kajol 54 68 25

Source: Cognito FCB ULKA 2007

2.35 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: -

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?

Figure 2: Evolution of Celebrity Endorsements



One can gauge the performance of celebrity endorsement marketing program across the

various stages of development (Refer to Figure 2). We have attempted to prepare a

framework to build a more effective celebrity endorsement program: -

1. ALIGN CELEBRITY ENDORSEMENT WITH BUSINESS OBJECTIVES.

The attributes of the celebrity should be intrinsically valuable and aligned with the

product, brand and company. Figure 3 suggests strategies to be adopted by a company

depending on its brand positioning and the brand fit with the celebrity.

Figure 3: Brand-Celebrity Attribute Fit Matrix

If the brand-celebrity attribute fit is slow, then the company should adopt "Eliminate

or avoid" strategy. The consumers are unlikely to connect between the brand and the

celebrity, and the recall value is likely to be very low; defeating the entire purpose of

signing the celebrity.

This is what happened when Goodlass Nerolac Paints roped in Amitabh Bachchan as

their brand ambassador.



When the positioning of the brand is high but the fit with the celebrity is low, the

company should adopt a "Monitor and evaluate" strategy. The company should

continuously track the effectiveness of the celebrity endorsement through surveys,

monitoring the sales, etc. Though Parker pens had a positioning of premier pens, the early

advertisements (Refer Annexure 1) with Amitabh Bachchan showed low brand-celebrity

fit.

When the positioning has not been effective, but the fit with the celebrity is high, the

company should adopt the strategy of "Keep and enhance". The company has to spot the

opportunities to leverage the celebrity investment and to find more better and effective

ways to communicate with the target audience. The celebrity attributes align with the

company's brand, strategic business objectives and primary customer segment. The

Narain Karthikeyan - J K Tyres relationship works well in this category.

In the ideal quadrant when the positioning effectiveness is high and celebrity fit with

the brand is also high, the company should follow the strategy of "Grow and partner". In

case of Coke, the brand has firmly established the "Thanda" position in the minds of the

consumer, with Aamir Khan playing the perfect role.

By situating potential celebrity on the matrix, companies can manage the celebrities as

portfolios - re-distributing the resources and marketing efforts to those celebrities with

the greatest potential to increase value, while eliminating those that prove too costly.

2. MEASURE AND QUANTIFY PERFORMANCE

A part of the marketing budget should be allocated to primary and secondary

research to determine the overall return on investment - measuring the real

performance of a celebrity endorsement against the company's business objectives.

The company should have proper metrics in place such as increase in sales, brand

awareness and customer preference, to measure the effectiveness and the impact of

celebrity endorsement in the short and long term.



The endorsement costs are primarily driven by the endorsement fees and promotion

outlays.

The benefits that accrue from such a relationship can be categorized into two

components: -

Value of Hard Assets:

The benefits derived from the hard assets are those that have a clear market value such as

increased sales and increase in brand equity. These are the tangible benefits that a

company derives from its endorsement strategy.

Value of Association:

Association value is derived from the target customers who associate the company /

brand with the celebrity. These are the intangible benefits that the company will accrue in

the long-term.

There are ways to quantify the potential value of hard assets and association value against

their impact on company's celebrity endorsement by looking at the following catergories:

-

Incremental Sales

Companies can quantify the effect of the celebrity programs on sales by performing year-

to-year or quarter-to-quarter sales comparisons for targeted consumers, geographic

regions, or specific product lines. Primary research can also be done to reveal the impact

of the celebrity on target customer's propensity to purchase.

Brand Recognition

One of the objectives of celebrity endorsement is to increase brand awareness. However,

the companies use popular, though incorrect, survey approach by asking the respondent

which celebrity endorsed their brand. Instead, they should ask the respondent the brands



associated with the celebrity. By gauging the top-of-mind recall can enable the company

to find out if a connection is made between the brand and celebrity.

Figure 4: Endorsement Cost-Value Relationship

Customer Loyalty:

Customer churn can be measured in fixed intervals before and after the celebrity

campaign period to determine the impact of celebrity on customer retention.

Additionally, primary research can be conducted to evaluate changes in the customer

loyalty, customer preferences, etc.

3. SELECTION AND RENEWAL OF CONTRACT WITH CELEBRITIES

The ability to align goals and measure the value of brand-celebrity fit is the first step in

obtaining optimal value from a celebrity endorsement. Value is also derived by revisiting

the celebrity portfolio to determine ways to reduce costs and increase benefits.

Additionally, a company can increase its benefits by re-examining (and altering, if

needed) its promotion strategy to create deeper brand association, identify new celebrities

that are capable of achieving company goals and negotiate for additional rights from the



existing contracts. A large extent of this can be successful if the company can develop

and execute coordinated, preplanned negotiation strategy which will enable it to improve

the contractual fees and media commitments stipulated in the contract, as well as the

amount and benefits conferred on the company. A few guidelines for formulating a well-

defined negotiation strategy would include:

Understand the Competition of Celebrity

Except for few venerable celebrities, most of the celebrities quote their price in

expectation of negotiation. The company should benchmark the contractual fees and

benefits against that of comparable celebrities to ensure the package is equivalent.

Understand 'Celebrity' Clutter

There could be a degree of clutter with the celebrity endorsing many more brands and

companies. This clutter can impede the ability of the company to capture the image and

awareness required to generate value from the endorsement. The company needs to

understand the risk associated with the signing of such celebrity and need to devise

strategic opportunities to stay clear of the clutter.

Include Value-in-Kind Payments

Companies can reduce their risk and endorsement costs by substituting out-of-pocket

cash payments with value-in-kind, which can be traded at market price.

Protection Against Ambush Marketing

Ambush marketing (or adjacent marketing) is the reality of the day and the marketing

managers need to be creative to stay one step ahead of the competition. For instance,

Amitabh Bachchan was shown drinking Thumbs-Up in the hindi movie Kaante, when he is

actually brand ambassador for Pepsi.

2.36 Impact of Celebrity Endorsement



The increasing number of endorsements throws a valid question to the consumers. Is

there a science behind the choice of these endorsers or is it just by the popularity

measurement? What are the reasons which lead to impact of celebrity endorsement on

brands?

Through research and analysis, this paper develops a 14 point model, which can be used

as a blueprint criterion which can be used by brand managers for selecting celebrities,

and capitalizes the celebrity resource through 360 degree brand communication, since our

research proposes it as the foundation brick of the impact of celebrity endorsement. Our

study reveals that the impact of celebrity endorsement is proportional to the 14 factors

discussed in the model.

The success of a brand through celebrity endorsement is a cumulative of the following 14

attributes. Greater the score of the below parameters, greater are the chances of getting

close to the desired impact.

Fit with the Advertising Idea

One of the most successful celebrity endorsement campaigns which reflect the fit

between the brand and the 360 degree advertising fit is Fardeen Khan and Provogue.

Provogue’s positioning in the apparel market is of a young, active, party-going, attention-

grabbing brand and so is Fardeen Khan. The conjunction between the two has been

immensely impactful and brand 14 managers have utilised this endorsement through 360

degree reinforcement.



Celebrity-Target Audience MatchSmriti Irani endorsing the WHO recommended ORS Campaign in India. Indian mothers

can associate with Smriti Irani through the facets she projects on screen or in regular life

which helps develop a connect with the target audience since mothers medicate their

children with ORS.

Celebrity Values

Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness,

Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Rai

appearing in the Donate Eyes campaign are few examples, which reflect the transfer of

celebrity values to the brand, creating an impact that generates recall.

Costs of Acquiring the Celebrity



Recently, a newspaper report showed how cola firms had gone beyond their advertising

budgets to get the best celebrities. Small firms that use celebrities’ services run greater

risks if they invest large amounts. Although nobody is willing to say exactly how much

celebrities get paid, industry sources say Sachin Tendulkar’s price is believed to be

between Rs. 2.0-2.5 crores per endorsement, and musician A. R. Rehman, who had

signed up with AirTel, is believed to have picked up Rs. 1.75 crores. Film-star Hrithik

Roshan was rumored to have picked up Rs. 2 crores for the Fly With Hrithik campaign to

push Close-Up, and Shahrukh Khan’s rate seems to be between Rs. 2.5-3.0 crores.

Aishwarya Rai apparently picks up Rs. 1.25 crores for an endorsement and the Indian

cricket captain Saurav Ganguly is believed to get between Rs. 90 lakh to Rs. 1.5 crores,

while film-star Aamir Khan apparently makes Rs. 1.5 crores per endorsement.

Celebrity Regional Appeal Factors

R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India

are few examples of how celebrities are chosen to reach out to target audiences for brands

in regional markets.

Celebrity-Product Match

Cyrus Broacha is the brand ambassador for MTV since both the celebrity and the brand

are considered as friendly, young, moodboosting, humorous and outspoken. MTV’s

brand personality overlaps Cyrus Broacha’s image as a brand.

Some more examples of compatible celebrity product match in which celebrity brand

attributes get transferred to the brand and increases the brand equity is of Govinda &

Navratan Tel, Aishwarya Rai & Nakshatra, etc.

Celebrity Controversy Risk

The perfect example here is of Salman Khan and the controversy in which he

crushed a man to death with his Pajero when he was driving under the influence of

alcohol. Also, any act on the part of the endorser that gives him a negative image



among the audience and goes on to affect the brands endorsed. The brand, in most

instances, takes a bashing.

Celebrity Popularity

Celebrity Brand association like Garnier endorsed Tara Sharma & Simone Singh, Agni

Diamonds & Riama Sen don’t get much brand recall, and even if they do, its difficult to

attribute it to the celebrities’ endorsing the brand.On the other hand, HPCL has had

increased popularity and share of voice due to the endorsement of the brand through

Sania Mirza.

Celebrity Availability

In case of various brands, there are situations in which they prefer to go without a brand

face, since there is no brand-fit between the celebrities available and the brand. Also, due

to multiple endorsements by certain celebrities, brands refuse to adopt celebrity

endorsement since they fear dilution of the brand image.

Celebrity Physical Attractiveness

John Abraham endorsing Wrangler and Timex Sunglasses are some examples which

portray the celebrities’ physical attractiveness that helps create an impact.

Celebrity Credibility

The most important aspect and reason for celebrity endorsement is credibility. In a

research carried out among 43 ad agencies and companies, most experts believed that the

most important dimensions of credibility are trustworthiness and prowess or expertise

with regard to the recommended product or service. One of the most obvious reasons of

Amitabh Bachchan endorsing plethora of brands is the credibility of the celebrity and his

recognition across consumers. To site one of the most successful campaigns in which the

celebrity’s credibility has had an indelible impact on the brand and has saved the brand is

of Cadbury’s. After the worm controversy, Amitabh Bachchan’s credibility infused into



the brand through the campaign, helping it to get back on track. The campaign has won

an award for the same.

Multiple Endorsements

Not many people can remember all the brands that a celebrity endorses and the chances

of losing brand recall increases if the celebrity endorses multiple brands. For example, in

case of Sachin Tendulkar people recall Pepsi, TVS Victor and MRF, but might not

remember brands like Britannia and Fiat. Similarly, for Amitabh Bachchan, consumers

remember ICICI, Pepsi, Parker Pens, Pulse Polio and BPL. They might get confused in

the endorsement of Nerolac or Asian Paints. Thus, for multiple endorsements where the

same celebrity endorses several brands, it boils down to the strength of the brand and the

advertising content.

Whether Celebrity is a Brand User

Various celebrities endorse NGOs and social causes since they believe in the social

message that they need to convey to the audience. One of the most successful campaigns

has been executed by PETA in which celebrities like Shilpa Shetty, Amisha Patel, Yana

Gupta, Sheetal Malhar, Mahima Choudhary claimed to believe in PETA’s philosophy,

and thereby endorse the brand.



IMPACT REGIONS OF CELEBRITY

ENDORSEMENT:

The illustrations below explain the same: -

Source: Adopted from TOM et al, 1992.



2.37 Why Celebrity Endorsement Fails?

There maybe cases where brands are not able to take-off even after the backing of

celebrities. And this leads to speculations in the Ad World on the soundness of celebrity

endorsement as an effective communication strategy.

The Reasons

According to leading management thinker, Dr. Seamus Phan, "Many celebrity

endorsements fail because they identify a celebrity they like in an emotive and un-

researched manner and then try to create advertising to force-fit the celebrity into the

creative concept." Therefore, the advertisers must associate the celebrity to the

advertisement and not vice versa. Thinking on the similar lines, the advertisers shouldn't

identify the brand to associate with the celebrity but do vice versa. The success of

celebrity endorsement also depends upon the capacity, knowledge, experience, and

qualification to talk about the product. Failure may be attributed to improper positioning

(Example: Amitabh Bachchan, Abhishek Bachchan & Maruti Versa), negative perception

after use of product / service (inferior products), misapprehension of the meaning of the

endorsement, etc.

"The philosophy behind much advertising is based on the old observation that every man

is really two men - the man he is and the man he wants to be."

- William Feather

Another reason for the celebrity endorsement to turn against the brand is due to

"Overshadowing". This happens when the celebrity is larger than the brand being

endorsed. And unfortunately, though the celebrity generates higher levels of attention

among viewers, the impression is not always strongly linked to the advertised brand.

Finally, brand may also fail to get noticed given a recent negative publicity of the

celebrity endorser. Example: Michael Jordan lost his endorsement deals when he



announced in 1991 that he's HIV-positive. It wasn't until July 2003 that he landed his first

endorsement deal since the announcement.

The Solutions

As discussed, celebrity management is very crucial to avoid the brand-celebrity

disconnect, and subsequently, brand failures. Proper market research should be carried

out and right positioning strategies should be in place. If the consumers have questions in

their minds regarding the quality or performance of the product then even God cannot

save the brand. There shouldn't be any ambiguity or confusions when showing the

celebrity in the advertisement. The obvious solution to the problem of overshadowing is

to make sure that both the advertisement and the celebrity are focused on the brand or

product. To avoid any bad publicity arising out of celebrity defames, companies may

resort to multiple celebrity endorsement. For Example: Pepsi while capitalizing on the

popularity of cricket and films in India used several cricketers and film stars in their ads.

So when Azharuddin and Jadeja got embroiled in the match-fixing controversy, Pepsi

severed its association only with these stars, but its relationship with cricket continued.

The Symbiotic Model

Based on our understanding of the celebrity endorsement process, we can propose our

own model taking cue from the biological kingdom. There are various symbiotic

relationships that can exist between two organisms. Similarly, we can visualize two

entities "brand" and "celebrity". To achieve a perfect success, there should be absolute

symbiosis between the two entities. There may be one of the six effects to the celebrity

endorsement process: -



Figure 2: The Symbiotic Model

Mutualism (M): Both help each other (Example: Tata and Narayan Karitiken)

Commensalism (C1): Only one among them is benefited (Example: A failed

endorsement)

Parasitism (P): One is benefited; other is harmed (Example: Azharuddin and Pepsi.

Also, Home Trade & Shah Rukh Khan, Sachin Tendulkar, Hritik Roshan)

Neutralism (N): None of them benefited or harmed (Example: Amitabh Bachchan,

Abhishek Bachchan and Maruti Versa)

Amensalism (A): Only one of them is harmed; other unaffected

Competition (C2): Both are harmed

Celebrity endorsement is a complex process of balancing your risk with your gains.

"The pure and simple truth is rarely pure and never simple."

- Oscar Wilde



2.38 Endorsement: Risk vs. Returns

The basic assumption underlying celebrity endorsement is that the value associated with

the celebrity is transferred to the brand and therefore help create an image that can be

easily referred by consumers.

Consequently by association the brand can very quickly establish the creditability get

immediate recognition and improve sales. However, there are many risks associated with

such endorsers. The brand could slide down just as quickly as it moved up the consumers

mind. There are many cases of brands failing in the market place despite famous

celebrities endorsing them.

Risks

a) Celebrity overshadows the brand: In certain cases where the celebrity values category

benefit and brand values are not closely linked. There are chances that the celebrity is

remembered more than a brand. Cyber media research study reveals that 80% of the

respondents approached for research remembered the celebrity but could not recall the

brand being endorsed.

b) Necessary Evil: Marketing have felt that once the brand rides the back of celebrity it

becomes difficult to promote it without the star as it becomes difficult to separate the role

of message and the role of the celebrity in selling the brand. The celebrity activity

becomes an

Addiction and the task to find substitute becomes more and more difficult.

c) Celebrity creditability a question mark for the competent customer: Today’s marketing

endorsement has to deal with a competitive and knowledgeable customer who has begun

to voice his opinion about their perception about endorsing a brand. Celebrity is said to

befool



The public as he is paid to sell and communicate good things about the brand. Hence the

question of creditability of the celebrity being chosen to protect the brand is becoming

pertinent.

d) Conflicting Image: A mix match between the image of the credibility and the product

can damage both. Unless there is a synergy between celebrities owns image and that of

product category the strategy of endorsement is rendered futile.

e) Multiple Endorsements: The poly endorsement has lead to a celebrity clutter.

Celebrities endorsing multiple products and multi brands in a category have left the

customer confused and have lead to dilution in the celebrities’ value.

f) Influence of Celebrity scandals and moral violation on brands: a number of entertainers

and athletes have been involved in activities that could embarrass the companies whose

products the endorsed. When the endorser’s image is finished. It actually leads to a

greater fall in image for the brand. For instance Azharuddin was charge with betting and

match fixing, which created negative feeling and repulsive thoughts among people for the

products he was endorsing.



Returns

a) Build Awareness: A new brand can benefit greatly if a celebrity endorses it. It can

attract the customers attention and inquisitiveness to see what product is being endorsed.

Research has shown consumers have a higher level of message recall for products that are

endorsed by celebrities.

b) Connects Emotionally: some celebrities like Shahrukh Khan, Amitabh Bachan

command great adoration among people. Such celebrities can positively influence their

fans etc. a great extents and hence tend to even connect with the brand emotionally

because of their star enduring it.

c) Quick Connect: The communication process tends to hasten up due to the more

presence of a celebrity. This is because the star carrying the message tends to click with

the customer more. Because of likeability, recall attractiveness and creditability thereby

helping the company to clearly and quickly pass on the message to the target

Customers.

d) Means of Brand different ion: using a celebrity is a source of brand differentiation. In a

category where a brand is suing a celebrity the first that picks one up could use it

differently itself in the market the same was done by Boost in the malted beverage

category.

e) Source of Imitation and hence inducing increased product usage: celebrities actually

tend to become models or idols for the target audience who tend to start using the product

just because the celebrity name. attached with it. For instance, Lux has been used by

many as it is a beauty soap recommended by the beauty queen, Aishwarya Rai.

f) Better Brand Image: the use of celebrities could also bring in positive image among the

masses for brand. The credibility and authenticity attached with Amitabh Bachan has

inculcated trust for ICICI, Nerolac Paints and many others.



2.39 Celebrity Endorsement : The Issues Involved

There are several factors to consider before resorting to celebrity endorsement. There is

no single formula to win in the world of marketing. A company must analyze the

prospect of endorsement from 360 degrees, prior to product promotion.

Price vs. Profit

The most important issue is that of return on investment (ROI). Companies need to

perform a cost-benefit analysis prior to endorsement. The process of gauging the

effectiveness of endorsement on the overall brand is but difficult. The companies expect

to bring, in the long run, future sales, revenues and profit from the present investments on

celebrity endorsement. Celebrity endorsement is an expensive means of brand promotion

and the price burden almost always shifts on to the consumers; if not, then it narrows the

companies' profit.

Multiple Brand Endorsement vs. Multiple Celebrity Endorsement

In the advertising landscape, we find either a celebrity endorsing multiple brands or

multiple celebrities being used to endorse a single brand. Sachin Tendulkar, for example,

in 2002 endorsed 12 brands (including Pepsi, Boost, Colgate Total, Gillette, Britannia

Tiger, Fiat Palio, TVS Victor, Fiat Sienna, MRF, Adidas, Visa Cards and Home Trade).

Tripp et al, says that the endorsement of as many as four products negatively influences

the celebrity spokesperson's credibility and likeability.



Figure 3: Multiple Brand Endorsement (Shah Rukh Khan)

Also, the use of multiple celebrities to endorse a brand may hinder the meaning transfer

process, and thus, lead to confusion among the consumers.

Figure 4: Multiple Celebrity Endorsement (Adidas & Hyundai Santro)

Similarity between the target audience and the celebrity is the third important attribute.

A person well-known in a society can have greater impact than a celebrity of a different

world. If the endorser and receiver have similar needs, goals, interests and lifestyles, the

position advocated by the brand communication is better understood and received.

Similarity is also used to create a situation where the consumer feels empathy for the

person shown in the commercial. The bond of similarity between the endorser and the

receiver increases the level of persuasiveness.

The companies have to first clarify their business objectives, brand values and then

decide who the celebrities are who can carry them forward. Otherwise, their can be

unnecessary investments without proper return. So the celebrity endorsement cost has to

be weighed up against the return on marketing investment.

Besides, while designing an ad campaign, one should also keep in mind that the overuse

of some extremely popular celebrities often tends to confuse consumers and reduce the

utility of celebrity endorsement. Another argument against celebrity endorsement

involves the behavior of the celebrity. The values that display themselves in regrettable

behavior could transfer themselves to the brand. The marketing function of a company



should also understand that brands should assume a much greater space than the

celebrities, because their association may be temporary but the brands are permanent.

The various risks associated with celebrity endorsements are as follows:

Negative publicity - If the celebrity is strongly associated with the brand then the

occurrence of the negative publicity can spill over the brand. This can harm the

trustworthiness and credibility in the mind of the consumers. E.g., Salman Khan lost his

endorsement deal with Thumbs-Up after his infamous incidents like buck-killing and

rash-driving.

Overshadowing - When celebrity endorser is used, the risk of consumers focusing on

the celebrity and not on the brand exists.

Overexposure - This risk arises when the celebrity chooses to endorse several

different products simultaneously which might leave the consumers confused. E.g.,

Sachin Tendulkar endorses several brands such as MRF, TVS Victor, Pepsi, Fiat, Boost,

etc.

Overuse - Sometimes the company can use many different celebrities to appeal to

different market segment. But multiplicity of endorser might blur the image of the brand

and reduce the effectiveness of the means of persuasion.

Extinction - The favorable response obtained by a particular brand may weaken over

time if the brand gets significant exposure without the association of the celebrity. If the

celebrity contract is for a considerable period of time, then it can lead to draining out

capital without proper return.

Financial Risk - The decision for hiring an expensive endorser may not be always

feasible if there is a poor brand fit.



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

Once these criteria are met, endorsements can work as a force multiplier. A deeper

insight in the impact of celebrity endorsement on consumers' minds can be explained by

the meaning transfer model, explained in the next section.




Primary survey analysis Primary survey analysis of consumers of consumers

Primary survey analysis Primary survey analysis of consumers of consumers

Chapter: 3Chapter: 3Chapter: 3Chapter: 3


CONSUMER’S SURVEY ANALYSIS

Table 3.1-Gender wiseGender Frequency PercentMale 92 61.33Female 58 38.67Total 150 100

Graph 3.1

Gender

92, 61%

58, 39%

Male

Female

Table 3.2-Category wiseCategory Frequency PercentStudent 60 40Housewife 31 20.67Husband 40 26.67Working person 19 12.67

Total 150 100



Graph 3.2

Category

60, 39%

31, 21%

40, 27%

19, 13%Student

Housewife

Husband

Working person

Table 3.3-Age wiseAge Frequency PercentBelow-20 14 9.3321-35 101 67.3336-50 24 16Above-51 11 7.33

Total 150 100

Graph 3.3



Age

14, 9%

101, 68%

24, 16%11, 7%

Below-20

21-35

36-50

Above-51

Q-1. What are the main reasons due to that the use of celebrities in

advertising is

Increasing?Graph 3.4

Main Reason

28, 19%

21, 14%

23, 15%37, 25%

41, 27%

Peoples attract towardcelebrities

Image of the celebrity

Increase competitionleads use of celebrities

celebrities' endorsementlead huge sells ofproduct/services

Create good impression ofproduct on customers'minds



From above graph we can conclude that maximum 27% people agree that

celebrity create good impression on consumer’s minds. Where as 25% people are

believe celebrity endorsement leads huge sales of product or service. Than 19%

people attract towards celebrity, and 15% people respondent believe that due to

competition company use celebrity in advertising. And only 14% respondents

believe in image of celebrity.

Category

H0: Main reason due to that the use of celebrities in advertising is Increasing is

independent to Category.

H1: Main reason due to that the use of celebrities in advertising is Increasing is

dependent to Category.

Significance Level = 0.05

Degree of freedom=1

Table 3.4-Category Wise Cross Tabulation

Category Student Housewife HusbandWorking person Total

Attract toward celebrities 16 4.00 5.00 3.00 28Image of the celebrity 7 1.00 10.00 3.00 21Competition leads use of celebrities 7 8.00 4.00 4.00 23Lead huge sells of product/services 15 11 9 2 37Good impression of product 15 7 12 7 41

Total 60 31 40 19 150

In the category wise analysis 37 respondents are lead huge sale of

product/services, in which 15 maximum respondents are student & 2 minimum

respondents are working person.



Table 3.5-Chi-Square Test

Value DfAsymp. Sig. (2-sided)

Pearson Chi-Square 17.9 12 0.12N of Valid Cases 150

A 6 cells (30.0%) have expected count less than 5.The minimum expected count is 2.66.

Findings:

Testing hypothesis indicated that the main reason for increasing the

celebrity’s endorsement in advertisement is independent to category. We

also conclude that we accept the null hypothesis because the Asymp. Sign.

Value is 0.12 which is more than 0.05.

AgeH0: Main reason due to that the use of celebrities in advertising is Increasing is independent to Age.H1: Main reason due to that the use of celebrities in advertising is Increasing is dependent to Age.Significance Level = 0.05

Degree of freedom=1

Table 3.6-Age Wise Cross TabulationAge Below-20 21-35 36-50 Above-51 Total

Attract toward celebrities 4 19 3 2 28Image of the celebrity 1 13 5 2 21Competition leads use of celebrities 3 14 5 1 23lead huge sells of product/services 3 24 8 2 37Create good impression of product 3 31 3 4 41

Total 14 101 24 11 150

From the above table we conclude that the 37 lead huge sells of product/services,

in which 24 maximum with age group 21-35 & minimum 2 with the age group

above51.




Value DfAsymp. Sig.(2-sided)



Findings:

Testing hypothesis indicated that the main reason for increasing the celebrity’s

endorsement in advertisement is independent to Age. We also conclude that we

accept the null hypothesis because the Asymp. Sign. Value is 0.80 which is more

than 0.05.

Q-2 (A.) Celebrity endorsers are the most persuasive advertising method.

Graph 3.5

Persuisive Advertising

25, 17%

28, 19%

19, 13%54, 35%

24, 16% Strongly Disagree

Disagree

Uncertain

Agree

Strongly Agree



The above graph indicate that, 35% respondent are agree that celebrity endorsers

are the most persuasive method. Only 17% respondents are disagreeing with it.

Where as 13% respondent were uncertain.

CategoryH0: The most persuasive advertising method is independent to Category.

H1: The most persuasive advertising method is dependent to Category.


Degree of freedom=1

Table 3.8-Category wise(Cross tabulation)

Persuasive advertisingCategory Student Housewife Husband Working person Total

Strongly Disagree 13 6 5 1 25Disagree 10 8 7 3 28Uncertain 10 1 4 4 19Agree 19 8 17 10 54Strongly Agree 8 8 7 1 24

Total 60 31 40 19 150

From the above table we conclude that the 54 agree with that the celebrities

endorsers are most persuasive advt. method, in which maximum 19 are student

and minimum 8 are housewife.


Value DfAsymp. Sig.

(2-sided)Pearson Chi-Square 14.93 12 0.25N of Valid Cases 150

A 6 cells (30.0%) have expected count less than 5.The minimum expected count is 2.41. From the

Findings:

Above analysis we conclude that celebrities endorsers are most persuasive

advt. method is independent to category because the Asymp. Sig. Value

0.25 which is more than 0.05, so we have to accept null hypothesis.

Age



H0: The most persuasive advertising method is independent to Age

H1: The most persuasive advertising method is dependent to C.


Degree of freedom=1

Table 3.10-Age wise(Cross tabulation)

Persuasive advertising Age Below-20 21-35 36-50 Above-51 TotalStrongly Disagree 3 14 6 2 25Disagree 2 21 5 0 28Uncertain 1 16 0 2 19Agree 5 37 7 5 54Strongly Agree 3 13 6 2 24

Total 14 101 24 11 150

From the above table we conclude that the 54 agree with that the celebrities

endorsers are most persuasive advt. method, in which maximum 37 with age

group of 21-35 and minimum 5 with both Below-20 & Above 51.


Value dfAsymp. Sig.



Findings: From the above analysis we conclude that celebrities endorsers are most

persuasive advt. method is independent to age because the Asymp. Sig. Value

0.50 which is more than 0.05, so we have to accept null hypothesis

Q-2 (B.) Do you think celebrity endorsements are ineffective? Graph 3.6



Are Ineffective

54, 36%

25, 17%19, 13%

23, 15%


Disagree

Uncertain

Agree

Strongly Agree

The graph show that, 36%people are think that, celebrity endorsement is effective

where as 19% people think celebrity endorsement is ineffective. Only 13%people

are uncertain about it.

CategoryH0: celebrity endorsements are ineffective is independent to category.

H1: celebrity endorsements are ineffective is dependent to category


Degree of freedom=1


Are ineffective

Category Student Housewife HusbandWorkingperson Total


Total 60 31 40 19 150



In category wise analyses of celebrity’s endorsement are ineffective 54 with

strongly disagree, in which 26 students are maximum and 2 working person are

minimum.


Value DfAsymp. Sig.


A 6 cells (30.0%) have expected count less than 5. The minimum expected count is 2.41

Testing null Hypothesis that celebrity endorsement effectiveness is independent to

category then above table suggests that it is independent to the category group. So

accept the Null Hypothesis.

AgeH0: celebrity endorsements are ineffective is independent to Age.

H1: celebrity endorsements are ineffective is dependent to Age


Degree of freedom=1

Table 3.14-Age wise(Cross tabulation)Are ineffective

Age Below-20 21-35 36-50 Above-51 TotalStrongly Disagree 3 38 10 3 54Disagree 3 18 3 1 25Uncertain 0 13 5 1 19Agree 3 16 3 1 23Strongly Agree 5 16 3 5 29

Total 14 101 24 11 150 In age wise analyses of celebrity’s endorsement are ineffective 54 with strongly

disagree, in which 31 respondents are maximum and 3 respondents are above 51

age group minimum.




Value dfAsymp. Sig.

(2-sided)Pearson Chi-Square 13.20 12 0.35

A 13 cells (65.0%) have expected count less than 5. The minimum expected count is 1.39.

Findings: From the above analysis we conclude that celebrity endorsement ineffectiveness

is independent to age because the Asymp. Sig. Value 0.35 which is more than

0.05, so we have to accept null hypothesis

Q-2 (C.) Celebrity endorsers affect the sale of the product with which they are associated.Graph 3.7

Sale of Product

21, 14%

24, 16%

37, 25%

54, 36%

14, 9% Strongly Disaree

Disagree

Uncertain

Agree

Strongly Agree

The above graph show effect of celebrity on product sales.36%respondent are

agree with it, where as 16% respondent are disagree with it.



CategoryH0: Affect the sale of the product is independent to category.

H1: Affect the sale of the product is dependent to category.


Degree of freedom=1


Sale of product



Total 60 31 40 19 150

In category wise analysis of celebrity’s endorsement affect the sells of product

which they associated 54 with agree, in which maximum 20 are student and

minimum 8 are working person.


Value dfAsymp. Sig.



Findings:

Testing hypothesis of celebrities endorsement affect the sales of product is

independent to category because the Asymp. Sig. Value is 0.76 more than 0.05, so

we accept null hypothesis.



AgeH0: Affect the sale of the product is independent to Age.

H1: Affect the sale of the product is dependent to Age.


Degree of freedom=1


Sale of productAge Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

In age wise analysis of celebrity’s endorsement affect the sells of product which

they associated 54 with agree, in which maximum 39 with age group of 21-35 and

minimum 4 with age group below-20.


Value dfAsymp. Sig.



Findings:

Testing hypothesis of celebrities endorsement affect the sales of product is

independent to age because the Asymp. Sig. Value is 0.55 more than 0.05, so we

accept null hypothesis.



Q-2 (D.) According today’s highly competitive world, to increase sales of product or to sustain in the market, use of celebrities in advertising is necessary for the companies.

Graph 3.8

Advertising Necessary

20, 13%

20, 13%

35, 23%50, 34%


dsiagree

Uncertain

Agree

Strongly Agree

Most of respondent agree with the use of celebrity in advertising that is 34%, and

13% are disagree with it.

CategoryH0: Use of celebrities in advertising is necessary is independent to category.

H1: Use of celebrities in advertising is necessary is dependent to category.


Degree of freedom=1

Table 3.19-Category wise(Cross tabulation) Advertising necessary



Total 60 31 40 19 150



In category wise analysis of celebrities is necessary in today’s world 50

respondents agree with the statement, in which maximum 18 are student &

minimum 8 are husband.


Value DfAsymp. Sig.



Findings:

From the above analysis the celebrities are necessary in today’s world is

independent to category because the Asymp. Sig. Value is 0.23, so we accept null

hypothesis.

AgeH0: Use of celebrities in advertising is necessary is independent to Age.

H1: Use of celebrities in advertising is necessary is dependent to Age.


Degree of freedom=1


Advertising necessaryAge Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

In age wise analysis of celebrities is necessary in today’s world 50 respondents

agree with the statement, in which maximum 38 with the age group of 21-35 &

minimum 2 with age group of below-20.



Table 3.22-Chi-Square TestValue Df Asymp. Sig. (2-sided)



Findings:

From the above analysis the celebrities are necessary in today’s world is

independent to age because the Asymp. Sig. Value is 0.80, so we accept null

hypothesis.

Q-2 (E) A male celebrity endorser for a car will increase your likelihood to purchase the product.

Graph 3.9

Male (car)

21, 14%

29, 19%

35, 23%

44, 30%

21, 14%

Strongly Disagree

Disagree

Uncertain

Agree

Strongly Agree

Here 30% respondents are agreeing, but 23% are uncertain which is affected to

celebrity endorsement.



CategoryH0: A male celebrity endorser for a car is independent to category.

H1: A male celebrity endorser for a car is dependent to category.


Degree of freedom=1


Male (Car)Category Student Housewife Husband Working person Total


Total 60 31 40 19 150

In category wise analysis of male celebrities endorse car is increase in sale, 44

respondents agree with the statement, in which maximum 20 are student &

minimum 7 are both husband & working person.

Table 3.24-Chi-Square TestValue df Asymp. Sig. (2-sided)


A 6 cells (30.0%) have expected count less than 5. ]The minimum expected count is 2.66.

Findings:

In category wise analysis of male celebrities endorse car is increase in sale is

independent to category because the Asymp. Sig. Value is 0.73, so accept the null

hypothesis.

AgeH0: A male celebrity endorser for a car is independent to Age.

H1: A male celebrity endorser for a car is dependent to Age.


Degree of freedom=1




Male (Car)Age Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

In age wise analysis of male celebrities endorse car is increase in sale, 44

respondents agree with the statement, in which maximum 28 with age group of

21-35 & minimum 3 with age group of above-51


Pearson Chi-Square 15.63 12.00 0.21N of Valid Cases 150


Findings:

In category wise analysis of male celebrities endorse car is increase in sale is

independent to age because the Asymp. Sig. Value is 0.21, so accept the null

hypothesis.



Q-2 (F) A female celebrity endorser for a hair product will increase your likelihood to purchase the product.

Graph 3.10

Female (hair)

22, 15%

34, 23%

35, 23%

35, 23%


Disagree

Uncertain

Agree

Strongly Agree

Graph show that, disagree, agree and uncertain response are equal, so here people

gave mix response.

CategoryH0: A female celebrity endorser for a hair is independent to category.

H1: A female celebrity endorser for a hair is dependent to category.


Degree of freedom=1


Female (Hair)



Total 60 31 40 19 150



From the above table we conclude that the 35 agree with the female celebrities

endorse for hair product will increase in sales, in which 16 are student and 2 are

working person.




Findings:

The above analysis indicates that the female celebrities increase the sells of hair

product are independent to category because the Asymp. Sig. Value are 0.59, so

we accept null hypothesis.

AgeH0: A female celebrity endorser for a hair is independent to Age.

H1: A female celebrity endorser for a hair is dependent to Age.


Degree of freedom=1


Female (Hair)Age Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

From the above table we conclude that the 35 agree with the female celebrities

endorse for hair product will increase in sales, in which 16 are student and 2 are

working person.




Value dfAsymp. Sig.



Findings:

The above analysis indicates that the female celebrities increase the sells of hair

product are independent to age because the Asymp. Sig. Value are 0.46, so we

accept null hypothesis.

Q-2 (G) You intentionally purchase certain products because of their association with the celebrity.

Graph 3.11

With celebrity

41, 28%

24, 16%30, 20%

35, 23%


Disagree

Uncertain

Agree

Strongly Agree

According to graph, most of people doesn’t purchase product which they

associate with celebrities. That is 28%.



CategoryH0: Association with the celebrity is independent to category.H1: Association with the celebrity is dependent to category.


Degree of freedom=1




Total 60 31 40 19 150

From the above cross tabulation table, maximum 41 respondent strongly disagree

that, they cannot purchase product because of they associate with celebrities, in

which 18 student, 10 housewife,9 husband, 4 working person. Only 20 respondent

are purchase product due to their associate with celebrities.



A6 cells (30.0%) have expected count less than 5. The minimum expected count is 2.53.

Findings:

The above analysis indicates that the celebrity association with the product is

independent to category because the Asymp. Sig. Value are 0.59, so we accept

null hypothesis.

Age

H0: Association with the celebrity is independent to Age.

H1: Association with the celebrity is dependent to Age.


Degree of freedom=1





Total 14 101 24 11 150 According to above cross tabulation, maximum 28 people strongly disagree to

purchase product due to its association with celebrities, which are with the age

group of 21-35. Where as 22 people agree with it.


Value dfAsymp. Sig.


A13 cells (65.0%) have expected count less than 5.The minimum expected count is 1.47.

Findings:

The above analysis indicates that the celebrity association with the product is

independent to age because the Asymp. Sig. Value is 0.46, so we accept null

hypothesis.



Q-2 (H) “You are attracted towards those products in which advertisement celebrities come more frequently”

Graph 3.12

Celebrities more frequently

41, 28%

28, 19%26, 17%

35, 23%


Disagree

Uncertain

Agree

Strongly Agree

The graph indicate that, people only see the advertise but they don’t attract

towards that product. Evidence is 28%are strongly disagree.

CategoryH0: Advertisement celebrities come more frequently is independent to category.

H1: Advertisement celebrities come more frequently is dependent to category


Degree of freedom=1


celebrities more frequently

Category Student Housewife HusbandWorkingPerson Total


Total 60 31 40 19 150



From the above table we conclude that people most attract by the advertisement in

which celebrities comes frequently with strongly disagree respondent are 41, in

which 15 are student and both 6 are housewife and working person.



A 5 cells (25.0%) have expected count less than 5.The minimum expected count is 2.53

Findings:

From the above table we conclude that the people can not attract by those product in

which celebrities comes more frequently, so we accept null hypothesis.

AgeH0: Advertisement celebrities come more frequently is independent to Age.

H1: Advertisement celebrities come more frequently is dependent to Age


Degree of freedom=1


celebrities more frequentlyAge Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

From the above table we conclude that people most not attract by the

advertisement in which celebrities comes frequently with strongly disagree

respondent are 41, in which 27 are in age group of 21-35 and 2 with the age group

of above-51.





A 13 cells (65.0%) have expected count less than 5.The minimum expected count is 1.47

Findings

From the above table we conclude that the people can not attract by those product in

which celebrities comes more frequently, so we accept null hypothesis.

Q-2 (I) “You purchase products more in which advertisement your favorite celebrities comes”

Graph 3.13

Favorite Celebrities

16, 11%

37, 25%

28, 19%28, 19%


Disagree

Uncertain

Agree

Strongly Agree

Most of people purchase the product in which advertisement their favorite

celebrities comes because 26% strongly agree. Where as 19% agree, 19%

uncertain, 25% disagree and 11% are strongly disagree.



Category

H0: Advertisement your favorite celebrities comes is independent to category.

H1: Advertisement your favorite celebrities comes is dependent to category.


Degree of freedom=1

Table 3.39-Category wise(Cross tabulation)favorite celebrities



Total 60 31 40 19 150

According to cross tabulation table 41 respondents are strongly agree with

statement that they purchase product in which advertisement their favorite

celebrity comes.16respondents are strongly disagree with this statement.



6 cells (30.0%) have expected count less than 5. The minimum expected count is 2.03.

Findings:

From above table we conclude that purchase more product in which

advertisement your favorite celebrity come is independent to category. And the

value is more than 0.05 so we accept null hypothesis.



Age

H0: Advertisement your favorite celebrities comes is independent to Age.

H1: Advertisement your favorite celebrities comes is dependent to Age.


Degree of freedom=1

Table 3.41-Age wise(Cross tabulation)favorite celebrities


Total 14 101 24 11 150

According to age wise cross tabulation table 41 respondents are strongly agree

with statement that they purchase product in which advertisement their favorite

celebrity comes.29 maximum respondents are strongly agree with this statement

which is belongs to age group 21-35




Findings:

From above table we conclude that purchase more product in which

advertisement your favorite celebrity come is independent to age. And the value

is more than 0.05 so we accept null hypothesis.



Q-2 (J.) “Using those products in which advertisements celebrities comes creates good impressions on the others (society)”

Graph 3.14

Impressions on Others

19, 13%

32, 21%

35, 23%

44, 30%


Disagree

Uncertain

Agree

Strongly Agree

According to graph 30% respondent use those product in which celebrities creates

good impact on society, where as 23% respondent are uncertain.

Category

H0: Creates good impressions on the others is independent to category.

H1: Creates good impressions on the others is dependent to category.


Degree of freedom=1

Table 3.43-Category wise(Cross tabulation)Impressions on others

Category Student Housewife HusbandWorkingperson total


Total 60 31 40 19 150



From the above cross tabulation table, maximum 44 respondents are believe that they se

product in which advertisement celebrity create good impression. With the maximum 23

students and minimum working persons are agree with this.19 respondents disagree with

this.




Findings:

From the above chi-square test we conclude that the celebrity create good

impression on other is independent variable. And the value is greater than 0.05 so

we accept the null hypothesis.

Age

H0: Creates good impressions on the others is independent to Age.

H1: Creates good impressions on the others is dependent to Age.


Degree of freedom=1


Impressions on othersAge Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

From the above cross tabulation table, maximum 44 respondents are believe that they se

product in which advertisement celebrity create good impression. With the maximum

33with the age group of 21-35, and minimum 2 respondents with the age group of below

20. 19 respondents disagree with this.






Findings:

From the above chi-square test we conclude that the celebrity creates good

impression on other is independent variable. And the value is greater than 0.05 so

we accept the null hypothesis.

Q-2 (K.) “You purchased product by watching product endorsed by celebrities and then after you realized that product having no good quality as endorsed by celebrities and you feel cheated”

Graph 3.15

No Good Quality

23, 15%

32, 21%

36, 24%

34, 23%


Disagree

Uncertain

Agree

Strongly Agree



The graph indicate that, 24% respondent are uncertain about product quality

which endorsed by celebrity. 17% people are feeling themselves cheated.15%

respondents are strongly disagree with this statement.

Category

H0: Product having no good quality as endorsed by celebrities is independent to category.

H1: Product having no good quality as endorsed by celebrities is dependent to category.


Degree of freedom=1


No good quality



Total 60 31 40 19 150

From the above cross tabulation chart , we conclude that 36 respondent are

uncertain. and 23 respondents are strongly disagree that quality of goods are very

poor.




Findings:

The product quality is independent to category. Than the table suggests that the

value is 0.72, it is independent to category, so we accept the null hypothesis.



Age

H0: Product having no good quality as endorsed by celebrities is independent to Age.

H1: Product having no good quality as endorsed by celebrities is dependent to Age.


Degree of freedom=1


No good qualityAge Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

From the above cross tabulation chart, we conclude that 36 respondent are

uncertain. and 23 respondents are strongly disagree that quality of goods are very

poor. In uncertain respondents, max. with the age group of 21-35 and minimum 5

with all other age category.




The product quality is independent to age. Than the table suggests that the value

is 0.72, it is independent to category, so we accept the null hypothesis.

Q-2 (L.) “Advertisement in which celebrities come that advertisement is remembered by you through longer period of time”



Graph 3.16

Longer Period of time

14, 9%21, 14%

27, 18%

29, 19%

59, 40%Strongly Disagree

Disagree

Uncertain

Agree

Strongly Agree

From above chart we can conclude that maximum 19% are agree where as 40%

respondents are strongly agree that advertisement is remember for long period of

time. About 14% are disagree with that statement .9% respondents are strongly

dis agree with it.

Category

H0: Remembered by you through longer period of time independent to category.

H1: Remembered by you through longer period of time dependent to category


Degree of freedom=1

Table 3.51-Category wise(Cross tabulation)Longer period of time





Total 60 31 40 19 150

From the above cross tabulation between category and memory of product, 59

respondents are strongly agree with, the long term memory of product due to

presence of celebrity. In which 27 student, 12 house wife, 12husband, and 8

working people included.




Findings:

From the analysis of above table, the memory of product is independent to

category, and the value is 0.75 which is more then 0.05 so, we can accept

null hypothesis.

Age

H0: Remembered by you through longer period of time independent to category.

H1: Remembered by you through longer period of time dependent to category


Degree of freedom=1


Longer period of timeAge Below-20 21-35 36-50 Above-51 Total




Total 14 101 24 11 150

According to this table results, maximum 59 respondent in which, 44 with the age

group of 21-35, & minimum 3 with the age group of below 20, are strongly agree

with longtime memory of product. Only 14 people are disagreeing with it.


Value dfAsymp. Sig.



Findings:

From the analysis of above table, the memory of product is independent to age,

and the value is 0.07 which is more then 0.05 so, we can accept null hypothesis.



Q-3. How important do you consider each of the attributes mentioned to be of importance when considering a Celebrity as a brand ambassador of a product? (Please evaluate each attribute on the scale of 1 to 5)

(A) Expertise (The Level of knowledge a celebrity has in a Particular Brand)

Graph 3.17

Exepertise

18, 12%

36, 24%

42, 28%

34, 23%

20, 13% Unimportant

Some what unimportant

Uncertain

Somewhat important

Important

From the analysis of the graph we can know that, expertises attribute is

unimportant for 12% of people, & for 13% people it is important, and maximum

28% people are uncertain. And 23% of people have somewhat important.

Category

H0: Expertise Attributes is independent to Category

H1: Expertise Attributes is dependent to Category


Degree of freedom=1




Expertise


Unimportant 10 5 3 0 18Some what unimportant 13 13 4 6 36Uncertain 16 7 13 6 42Somewhat important 12 4 13 5 34Important 9 2 7 2 20

Total 60 31 40 19 150

This cross tabulation table shows, the maximum 42respondents in which, 16 are

students, minimum 7 are housewife, are uncertain about expertise attribute.

Minimum 18 people cannot give important to this attributes.




Findings:

Testing null Hypothesis that important of expertise attribute is independent to

category then above table suggests that it is independent to the category. So

accept the Null Hypothesis.

AgeH0: Expertise Attributes is independent to Age

H1: Expertise Attributes is dependent to Age


Degree of freedom=1


Expertise



Age Below-20 21-35 36-50 Above-51 TotalUnimportant 1 11 4 2 18Some what unimportant 4 23 7 2 36Uncertain 5 26 8 3 42Somewhat important 3 25 5 1 34Important 1 16 0 3 20

Total 14 101 24 11 150

This cross tabulation table shows, the maximum 42respondents in which 26 are in

age group of 21-35 and minimum 3 in above 51 groups are uncertain about

expertise attribute. And maximum 16 people from 21-35 age group are give

important to expertise attribute.




Findings: Testing null Hypothesis that important of expertise attribute is independent to age

then above table suggests that it is independent to the age, so accept the Null

Hypothesis. Because there value is 0.68.

(B). Trustworthiness (How honest & believable a celebrity endorsing a product is)



Graph 3.18

Trustworthiness

14, 9%23, 15%

33, 22%37, 25%

43, 29% Unimportant


Uncertain

Somewhat important

Important

Above graph indicate, Trustworthiness is important for most of respondent which

is 29%. For 25% respondent, trustworthiness is somewhat important, so trust is

very important.

Category

H0: trustworthiness attributes is independent to category

H1: trustworthiness attributes is dependent to category


Degree of freedom=1


Trustworthiness





Total 60 31 40 19 150

From the above cross tabulation out of 150respondents, 43 have believe that

celebrity trust worthiness is more import while they choosing any product/

services, in which 18 students and minimum 4 working person. Lower believe

in trust worthiness in celebrity is 14 out of 150 , in which 2 respondents are

working persons.




Findings: Testing null Hypothesis that important of trustworthiness attribute is independent

to category then above table suggests that it is independent to the category, so

accept the Null Hypothesis. Because there value is 0.44

Age

H0: trustworthiness attributes is independent to Age.

H1: trustworthiness attributes is dependent to Age.


Degree of freedom=1


TrustworthinessAge Below-20 21-35 36-50 Above-51 Total




Total 14 101 24 11 150

From the above table analysis we conclude that, the maximum 43 respondents are

give important to the trustworthiness attribute, in which maximum 32 respondents

belong in age group of 21-35. 37 respondents are give somewhat important to it.

33 respondents are uncertain.



A12 cells (60.0%) have expected count less than 5.The minimum expected count is 1.03

Findings:

Testing null Hypothesis that important of trustworthiness attribute is independent

to age then above table suggests that it is independent to the age, so accept the

Null Hypothesis. Because there value is 0.20

(C ) Similarity (Sense of similarity a consumer feels with a celebrity)

Graph 3.19



Similarity

28, 19%

34, 23%

23, 15%25, 17%

40, 26%Unimportant


Uncertain

Somewhat important

Important

The above graph shows that the product endorsed by the celebrity, should match

with celebrity while choosing them for endorsement. 26% respondents are give

important to similarity attribute and minimum 15% respondents are uncertain

about the celebrity similarity of the product choosing.

Category

H0: Sense of similarity attributes is independent to category

H1: Sense of similarity attributes is dependent to category


Degree of freedom=1


Similarity





Total 60 31 40 19 150

The above cross tabulation between important attribute and category we can say

that , for maximum 40 respondents similarity is important attribute in which 16

students, 12 housewife, 8 husbands, 4 working person.




Findings:

Testing null Hypothesis that important of similarity attribute is independent to

category then above table suggests that it is independent to the category, so accept

the Null Hypothesis. Because there value is 0.25.

Age

H0: Sense of similarity attributes is independent to Age

H1: Sense of similarity attributes is dependent to Age


Degree of freedom=1


Similarity




Total 14 101 24 11 150

The above cross tabulation between important attribute and category we can say

that , for maximum 40 respondents similarity is important attribute in which 24 in

the age group of 21-35 .3 respondent are in the age group of above 51.




Findings:

Testing null Hypothesis that important of similarity attribute is independent to age

then above table suggests that it is independent to the age, so accept the Null

Hypothesis. Because there value is 0.88

(D) Likeability (The level of a celebrity’s fame in public eye & his/her popularity)

Graph 3.20



Likelyness

21, 14%

30, 20%

26, 17%20, 13%

53, 36%Unimportant


Uncertain

Somewhat important

Important

The likeness of celebrity attribute is that at which level the fame of celebrity in

the eye of consumers. For 36% respondent believe that the celebrity should have

familiar image in consumer mind. 14% respondent can not believe likeability

attribute of celebrity.

Category

H0: Likeability attributes is independent to Category.

H1: Likeability attributes is dependent to Category.


Degree of freedom=1


LikelinessCategory Student Housewife Husband Working Total



personUnimportant 8 6 4 3 21Some what unimportant 16 5 6 3 30Uncertain 6 10 5 5 26Somewhat important 6 5 7 2 20Important 24 5 18 6 53

Total 60 31 40 19 150 From the analysis of above cross tabulation we can say that, max. 53 respondent,

in which 24 student, 5 housewife, 18 husband, and 6 working person in it.26

respondent are uncertain about it.21 respondents cannot give important to it.



A6 cells (30.0%) have expected count less than 5. The minimum expected count is 2.53

Findings:

The likeability of celebrity in consumer mind is independent from category. The

Null hypothesis testing table shows that, likability is independent. So we accept

the Null Hypothesis.

Age

H0: Likeability attributes is independent to Age

H1: Likeability attributes is dependent to Age.


Degree of freedom=1


LikelinessAge Below-20 21-35 36-50 Above-51 Total




Total 14 101 24 11 150

From the analysis of above cross tabulation we conclude that, max. 53

respondent, in which 36 respondent with age group of 21-35 .30 respondents give

somewhat unimportant to likeability.




Findings:

The likeability of celebrity in consumer mind is independent from age. The Null

hypothesis testing table shows that, likability is independent to age. So we accept

the Null Hypothesis.

(E). Meaning Transfer (The meaning a celebrity brings to a brand)

Graph 3.21



Meaning Transfer

27, 18%

29, 19%

25, 17%23, 15%

46, 31%Unimportant


Uncertain

Somewhat important

Important

It shows that the 31% respondents give more important to meaning transfer

attribute. 15% give less important, 17% are uncertain, 19% have somewhat

unimportant & 18% gives no important to meaning transfer attribute.

Category

H0: meaning transfer attributes is independent to category

H1: meaning transfer attributes is dependent to category


Degree of freedom=1

Table 3.71-Category wise(Cross tabulation)Meaning Transfer



Total 60 31 40 19 150 From the analysis of above cross tabulation we can say that, max. 46 respondent,





There is mix response given by different category of people.



5 cells (25.0%) have expected count less than 5. The minimum expected count is 2.91.

Findings:

Testing null Hypothesis that important of meaning transfer attribute is

independent to age then above table suggests that it is independent to the

category, so accept the Null Hypothesis. Because there value is 0.09w

Age

H0: meaning transfer attributes is independent to category

H1: meaning transfer attributes is dependent to category


Degree of freedom=1

Table 3.73-Age wise(Cross tabulation)Meaning Transfer


Total 14 101 24 11 150

The above graph shows that the out of 150 respondents 33 belongs to age group of 21-35,

for 46 have important for meaning transfer model. 29 respondent have somewhat

important belong age group 21-35 are 25 respondent.






Findings: Testing null Hypothesis that important of meaning transfer attribute is

independent to age then above table suggests that it is independent to the

category, so accept the Null Hypothesis. Because there value is 0.24

(F) “Fit” Match (How well the fit between celebrity & the brand is)

Graph 3.22

Fit"Match"

21, 14%

26, 17%

28, 19%27, 18%

48, 32%Unimportant


Uncertain

Somewhat important

Important

C

The graph indicates that, most of respondent want good combination between

celebrity and product, because out of 150 respondent maximum 32% respondent

agree with it.

Category



H0: Fit “match” attributes is independent to category

H1: Fit “match” attributes is dependent to category


Degree of freedom=1


Fit” Match"



Total 60 31 40 19 150

From the analysis of above cross tabulation we can say that, max. 48 respondent,



There is mix response given by different category of people. But most of people

prefer good combination.

Age

H0: Fit “match” attributes is independent to Age

H1: Fit “match” attributes is dependent to Age


Degree of freedom=1






Findings:

Testing null Hypothesis that important of Fit match attribute is independent to

category then above table suggests that it is independent to the category so accept


Age

H0: Fit “match” attributes is independent to Age

H1: Fit “match” attributes is dependent to Age


Degree of freedom=1


Fit” Match"Age Below-20 21-35 36-50 Above-51 Total


Total 14 101 24 11 150

The above graph shows that the out of 150 respondents maximum 48 respondent give

important to fit match attributes in which 32 with age group of 21-35, 21 respondent

think fit match attribute is not important .




Findings:



Testing null Hypothesis that important of Fit match attribute is independent to age

then above table suggests that it is independent to the age so accept the Null


Q-4.How does presence of celebrity make you Feel about BrandGraph 3.23

Presence of celebrity make you feel to brand

22, 15%

40, 27%

41, 27%

29, 19%

18, 12% More likely to look at

Improve perceptions

Make mae miss Trusts

Don't know

Others

Category

H0: Celebrity make you Feel about Brand Category is independent to category.

H1: Celebrity make you Feel about Brand Category is dependent to category.


Degree of freedom=1


Presences of celebrity make you feel to brand


More likely to look at 11 3 6 2 22Improve perceptions 11 7 15 7 40Make me miss Trusts 20 10 7 4 41



Don't know 10 5 9 5 29Others 8 6 3 1 18

Total 60 31 40 19 150

Chi-Square TestValue df Asymp. Sig. (2-sided)



Age

H0: Celebrity make you Feel about Brand Category is independent to Age.

H1: Celebrity make you Feel about Brand Category is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalMore likely to look at 2 16 3 1 22Improve perceptions 2 24 8 6 40Make me miss Trusts 4 31 3 3 41Don't know 3 18 7 1 29Others 3 12 3 0 18

Total 14 101 24 11 150




Q-5. Which product advertisement can you recall most with these Celebrities?

Sachin Tendulkar: a) Boost ( ) b) MRF( ) c)Adidas ( ) d) Pepsi ()

Graph 3.24



Celebrity (Sachin)

53, 35%

46, 31%

20, 13%

31, 21%

Boost

MRF

Adidas

Pepsi

Gender

H0: Product advertisement can you recall most is independent to Gender.

H1: Product advertisement can you recall most is dependent to Gender.


Degree of freedom=1

Table 3.82-Gender wise(Cross tabulation)Celebrity {Sachin}

Gender Male Female TotalBoost 32 21 53MRF 29 17 46Adidas 13 7 20Pepsi 18 13 31Total 92 58 150

From the above cross tabulation table we conclude that, maximum respondent 53

are recall Sachin through Boost, in which 32 male and 21 female. MRF tyre is on

second no. with 29 male, 17female respondents. Then Pepsi with 31 respondents

and 20 respondents with Adidas.





A0 cells (.0%) have expected count less than 5. The minimum expected count is 7.73.

From the above analysis we can said that, recall of Sachin is independent to gender. And it value is 0.95,which is greater then .05 so, we can accept the Null Hypothesis.

Category

H0: Product advertisement can you recall most is independent to category.

H1: Product advertisement can you recall most is dependent to category.


Degree of freedom=1

Table 3.84-Category wise(Cross tabulation)Celebrity {Sachin}


Boost 26 9 12 6 53MRF 10 13 14 9 46Adidas 7 4 7 2 20Pepsi 17 5 7 2 31

Total 60 31 40 19 150

The above table shows that category wise cross tabulation in which 46

respondent from the brand of MRF in which 14 are husband, 13 are house wife,

10 are students & only 9 are working person.




Findings:



Testing null Hypothesis that important of Recall attribute is independent to

category then above table suggests that it is independent to the category so accept


Age

H0: Product advertisement can you recall most is independent to Age.

H1: Product advertisement can you recall most is dependent to Age.


Degree of freedom=1


Celebrity {Sachin}

The above table shows that age wise cross tabulation in which 53 respondent from

the brand of BOOST, in which 27 respondents belongs to 21-35 age categories.

MRF brand having total 46 respondent’s age of 21-35, in total 27 respondents.




Findings:

Testing null Hypothesis that important of Recall attribute is independent to age then

above table suggests that it is independent to the age so accept the Null Hypothesis.

Because there value is 0.31

Amitabh Bachchan: a) Dabur( ) b) Red&Taylor( )c)TVS victor( )

S.P.B. PATEL ENGG. College, LINCH, MEHSANA

Age Below-20 21-35 36-50 Above 50 TotalBoost 6 38 6 3 53MRF 5 27 12 2 46Adidas 1 12 4 3 20Pepsi 2 24 2 3 31

Total 14 101 24 11 150

175


d)Cadbury( )Graph 3.25

Celebrity (Amitabh Bachchan)

51, 34%

13, 9%22, 15%

64, 42%Dabar

Reid & Taylor

Binani cement

Cadbury

Gender




Degree of freedom=1

Table 3.88-Gender wise(Cross tabulation)

Celebrity (Amitabh Bachchan)Gender Male Female Total

Dabar 31 20 51Reid & Taylor 11 2 13Binani cement 17 5 22Cadbury 33 31 64

Total 92 58 150 According to above graph & table 37% male and female believe that its non

competitive, where competitive and moderate rate male respondent believes

maximum which is 33 that is hire then female respondent.


Pearson Chi-Square 7.91 3 0.05



N of Valid Cases 150 A0 cells (.0%) have expected count less than 5.

The minimum expected count is 5.03

Findings:

The null hypothesis show about the value is 0.05 it shows that it has the similarity

about the analysis made.

Category




Degree of freedom=1



Dabar 20 14 11 6 51Reid & Taylor 6 0 7 0 13Binani cement 9 3 8 2 22Cadbury 25 14 14 11 64

Total 60 31 40 19 150

The above table shows that 64 respondent out of 150 and in which 25 students are know

Amitabh bachan through the ad of Cadbury.51 respondents are know him through Dabur

product. Where as for Binani Cement 22 respondent and Reid & Taylor only 13

respondent.




Findings:



Testing null Hypothesis that the product recall is independent to category then

above table suggests that it is independent to the category group. So accept the

Null Hypothesis.

Age




Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalDabar 1 40 6 4 51Reid & Taylor 4 6 2 1 13Binani cement 3 13 3 3 22Cadbury 6 42 13 3 64

Total 14 101 24 11 150

Maximum 42 respondents are from age group of 21-35.who are recall the

Cadbury, then Dabur brand is recall by 40 respondent having age group of

21-35.and minimum only 1 respondent recall Ried & Taylor having age

group of above 50.



A9 cells (56.3%) have expected count less than 5. The minimum expected count is .95.

Findings: Testing null Hypothesis product recall is independent to age then above table

suggests that it is independent to the age group. So accept the Null Hypothesis

Aamir Khan: a) Titan( ) b) Samsung( )c) Cocacola ( ) d) Smartchips ( )



Graph 3.26

Celebrity (Aamir Khan)

35, 23%

55, 37%

42, 28%

18, 12%

Titan watch

Samsung

Coca cola

Smart chips

Due to usage of mobile increase, Samsung having good brand name in the market

but main thing is that the brand ambassador is Aamir khan who is highly believe

in the perfections. So the people o are highly recall brand through Aamir khan.

Gender




Degree of freedom=1


Gender Male Female TotalTitan watch 24 11 35Samsung 36 19 55Coca cola 23 19 42Smart chips 9 9 18



Total 92 58 150

The above table shows that ,for titan 44 male & for Samsung 36 male are recall

this brand. Then 11 female for titan watches, 19 female for Samsung , 19 for

cocacola recall overall brand out of 150 respondents.




Findings: The null hypothesis show about the value is 0.41, so the null hypothesis is accept.

Category




Degree of freedom=1



Titan watch 18 4 10 3 35Samsung 20 9 17 9 55Coca cola 15 12 9 6 42Smart chips 7 6 4 1 18

Total 60 31 40 19 150 The above table shows that 55 respondent out of 150 and in which 20 students are

know Aamir Khan through the ad of Smsung.42 respondents are know him

through Coca cola product. Where as 35 for Titan watch respondent and Smart

chips has 18 respondents.






Findings:



Null Hypothesis because chi-square value is 0.44.

Age




Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalTitan watch 3 25 5 2 35Samsung 3 40 9 3 55Coca cola 6 26 5 5 42Smart chips 2 10 5 1 18

Total 14 101 24 11 150




Findings:






Q-6. “Products advertisement in which celebrities comes more costly than other products in same category? Graph 3.27

Product Rate

51, 34%

44, 29%

55, 37%Competitive rates

Moderate

Non Competitive

Gender

H0: More costly than other products in same category is independent to category.

H1: More costly than other products in same category is dependent to category.


Degree of freedom=1


Gender Male Female TotalCompetitive rates 33 18 51Moderate 33 11 44Non Competitive 26 29 55

Total 92 58 150



According to above graph & table 37% male and female believe that its non

competitive, where competitive and moderate rate male respondent believes

maximum which is 33 that is hire then female respondent.




Findings: Testing null Hypothesis that the product cost is independent to gender then above

table suggests that it is independent to the gender group. Here chi-square value is

0.02 is below to significant level 0.05, so null hypothesis rejected.

CategoryH0: More costly than other products in same category is independent to category.H1: More costly than other products in same category is dependent to category.


Degree of freedom=1



Competitive rates 21 12 13 5 51Moderate 16 6 16 6 44Non Competitive 23 13 11 8 55

Total 60 31 40 19 150 According to above table analysis students response for competitive rates and non

competitive rate is hire then the other category person. When we see the Overall

response for all category non competitive rates is hire.






Testing null Hypothesis that the product cost is independent to category then



Age

H0: More costly than other products in same category is independent to category.

H1: More costly than other products in same category is dependent to category.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalCompetitive rates 4 34 12 1 51Moderate 3 34 4 3 44Non Competitive 7 33 8 7 55

Total 14 101 24 11 150

Between 21to35 age people are equally believed in competitive rates, moderate

and non competitive rates which is maximum no of people 101.




Findings: Testing null Hypothesis that the product cost is independent to age then above

table suggests that it is independent to the age group. So accept the Null

Hypothesis because chi-square value is 0.14



Q-7. Please rate the following statements on a scale of 1-5.

(A) You try a new brand if it is advertised by your favorite celebrity. Graph 3.28

Gender

H0: Advertised by your favorite’s celebrity is independent to Gender.

H1: Advertised by your favorite’s celebrity is dependent to Gender.


Degree of freedom=1


Gender Male Female TotalStrongly Disagree 10 4 14Somewhat Disagree 15 8 23Uncertain 16 11 27


Try new Brand

14, 9%

23, 15%

27, 18%

31, 21%


Somewhat Disagree

Uncertain

Somewhat Agree

Strongly Agree


Somewhat Agree 16 15 31Strongly Agree 35 20 55

Total 92 58 150

According to above table about 55 male and female are strongly agree to

purchase a new product offered by their favorite celebrity. in which 35 male and

20 are female.10 male & 4 female are strongly disagree.




Findings: Testing null Hypothesis for try new brand is independent to gender then above

table suggests that it is independent to the gender group. So accept the Null

Hypothesis.

Category

H0: Advertised by your favorite’s celebrity is independent to category.

H1: Advertised by your favorite’s celebrity is dependent to category.


Degree of freedom=1



Strongly Disagree 8 1 3 2 14Somewhat Disagree 6 6 9 2 23



Uncertain 11 6 7 3 27Somewhat Agree 14 6 7 4 31Strongly Agree 21 12 14 8 55

Total 60 31 40 19 150

All category persons are strongly agree to purchase new product offered by their

favorite celebrity students response is more in uncertain and somewhat agree also.




Findings: Testing null Hypothesis that the product cost is independent to category then


Null Hypothesis because chi-square value is 0.90

Age

H0: Advertised by your favorite’s celebrity is independent to Age.

H1: Advertised by your favorite’s celebrity is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalStrongly Disagree 3 11 0 0 14Somewhat Disagree 1 15 6 1 23Uncertain 1 18 4 4 27



Somewhat Agree 3 21 5 2 31Strongly Agree 6 36 9 4 55

Total 14 101 24 11 150

About 36 people with age group of 21-35 are strongly agreed, where as

11respondent respondent strongly disagree to try new product. 18 respondents are

uncertain about try new product.




Findings:

Testing null Hypothesis that trying new product is independent to age then above

table suggests that it is independent to the age group. So accept the Null

Hypothesis because chi-square value is 0.50.

(B) You try an existing product if it is advertised by your favorite celebrity.

Graph 3.29



Try an existing brand

11, 7%18, 12%

37, 25%

48, 32%


Somewhat Disagree

Uncertain

Somewhat Agree

Strongly Agree

Gender

H0: Try an existing product is independent to Gender

H1: Try an existing product is dependent to Gender


Degree of freedom=1


Gender Male Female TotalStrongly Disagree 6 5 11Somewhat Disagree 9 9 18Uncertain 25 12 37Somewhat Agree 28 20 48Strongly Agree 24 12 36

Total 92 58 150

According to above table about 48 male and female are somewhat agree to trying

existing product by their favorite celebrity. in which 28 male and 20 are female.6

male & 5 female are strongly disagree.


Pearson Chi-Square 2.41 4 0.66



N of Valid Cases 150 A1 cells (10.0%) have expected count less than 5.

The minimum expected count is 4.25.

Findings:

Testing null Hypothesis for try an existing product is independent to gender then

above table suggests that it is independent to the gender group. So accept the Null

Hypothesis is 0.66

CategoryH0: Try an existing product is independent to category.

H1: Try an existing product is dependent to category.


Degree of freedom=1



Strongly Disagree 7 3 1 0 11Somewhat Disagree 7 5 4 2 18Uncertain 13 5 12 7 37Somewhat Agree 20 13 11 4 48Strongly Agree 13 5 12 6 36

Total 60 31 40 19 150

According to above table we conclude that, 20 student, 13 housewife, 11husband

and 4 working person ware somewhat agreed that they use existing product.




Testing null Hypothesis that trying existing product is independent to category

then above table suggests that it is independent to the category group. So accept

the Null Hypothesis because chi-square value is 0.47.



AgeH0: Try an existing product is independent to Age.

H1: Try an existing product is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalStrongly Disagree 0 10 1 0 11Somewhat Disagree 3 11 2 2 18Uncertain 3 27 6 1 37Somewhat Agree 5 29 9 5 48Strongly Agree 3 24 6 3 36

Total 14 101 24 11 150

About 24 people with age group of 21-35 are strongly agree, where as 10

respondent strongly disagree to try existing product. 27 respondent are uncertain

about trying existing product. Overall, all age category respondent are agree to

trying existing product.




Findings: Testing null Hypothesis that trying existing product is independent to age then

above table suggests that it is independent to the age group. So accept the Null


C) You don’t mind paying higher prices for products advertised by my favorite’s celebrity.

Graph 3.30



Paying higher prices

43, 28%

28, 19%36, 24%

27, 18%


Somewhat Disagree

Uncertain

Somewhat Agree

Strongly Agree

GenderH0: For products advertised by your favorites celebrity is independent to Gender.

H1: For products advertised by your favorites celebrity is dependent to Gender.


Degree of freedom=1



Total 92 58 150

According to above chart , 27 male and 16 female are disagree to pay higher price

for the product which endorse by favorite celebrity. Where as only 9male and

7female are strongly agree to pay higher price.






Findings: Testing null Hypothesis for try pay higher price for product is independent to

gender then above table suggests that it is independent to the gender group. So

accept the Null Hypothesis is 0.66.

CategoryH0: For products advertised by your favorites celebrity is independent to category.

H1: For products advertised by your favorites celebrity is dependent to category.


Degree of freedom=1


Category Student Housewife HusbandWorking Person Total


Total 60 31 40 19 150

Overall all category persons are strongly disagree to pay higher price for product,

students response is more in uncertain and somewhat also agree by 8.




Findings: Testing null Hypothesis that pay higher for product is independent to category

then above table suggests that it is independent to the category group. So accept

the Null Hypothesis because chi-square value is 0.31.



Age

H0: For products advertised by your favorites celebrity is independent to Age.

H1: For products advertised by your favorites celebrity is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalStrongly Disagree 1 30 10 2 43Somewhat Disagree 2 20 5 1 28Uncertain 4 23 3 6 36Somewhat Agree 6 15 4 2 27Strongly Agree 1 13 2 0 16

Total 14 101 24 11 150

About 30 people with age group of 21-35 are strongly disagree, where as 13

respondent strongly agree to pay higher price for product. 23 respondents are

uncertain about to pay higher price for product. Overall, all age category

respondent are disagree to pay higher price for product.




Findings: Testing null Hypothesis that paying higher price for the product is independent to

age then above table suggests that it is independent to the age group. So accept the


(D) Advertisement of a product by a celebrity can make that product Successful.

Graph 3.31



Make product successful

23, 15%

37, 26%

35, 23%

26, 17%


Somewhat Disagree

Uncertain

Somewhat Agree

Strongly Agree

Gender

H0: Make that product Successful is independent to Gender.

H1: Make that product Successful is dependent to Gender.


Degree of freedom=1


According to above chart , 16 male and 7 female are disagree with success of

product for which endorse by favorite celebrity. Where as only 14male and

15female are strongly agree to success of product endorsed by celebrity.



A0 cells (.0%) have expected count less than 5.

S.P.B. PATEL ENGG. College, LINCH, MEHSANA


Total 92 58 150

195


The minimum expected count is 8.89.

Findings: Testing null Hypothesis for successful product endorsed by celebrity is

independent to gender then above table suggests that it is independent to the

gender group. So accept the Null Hypothesis is 0.116.

Category

H0: Make that product Successful is independent to category.

H1: Make that product Successful is dependent to category.


Degree of freedom=1




Total 60 31 40 19 150

Overall response from the respondents are in between 37 to 35 which are

uncertain or somewhat disagree about product success which are endorsed by

their favorite celebrities.




Findings: Testing null Hypothesis for successful product endorsed by celebrity is

independent to category then above table suggests that it is independent to the

category group. So accept the Null Hypothesis is 0.437



Q-8. The following list of feature are associated with celebrity endorsement, for each feature, please record the one alternative that best express how important or un important that features to you.

1. Extremely 2.somewhat 3.nither important 4.somewhat 5.not at all Important Important nor unimportant unimportant important

------Higher degree of recall.

Graph 3.32

Important Atribute(High Call)

33, 22%

44, 29%18, 12%

30, 20%

25, 17%Extremly Important

Somewhat Important

Moderate

Somewhat Unimportant

Not Important

GenderH0: Higher degree of recall is independent to Gender.

H1: Higher degree of recall is dependent to Gender.


Degree of freedom=1


Gender Male Female TotalExtremely Important 17 16 33Somewhat Important 27 17 44



Moderate 13 5 18Somewhat Unimportant 17 13 30Not Important 18 7 25

Total 92 58 150

According to above chart, 27 male and 17 female are some what important with

some what important. Where as only 17male and 16female extremely important,

moderate male and female are 13 & 5 respectively.




Findings: Testing null Hypothesis for celebrity higher degree of recall is independent to

gender then above table suggests that it is independent to the gender group. So

accept the Null Hypothesis is 0.446

CategoryH0: Higher degree of recall is independent to category.

H1: Higher degree of recall is dependent to category.


Degree of freedom=1



Extremely Important 10 9 10 4 33



Somewhat Important 21 10 6 7 44Moderate 4 3 9 2 18Somewhat Unimportant 13 6 6 5 30Not Important 12 3 9 1 25

Total 60 31 40 19 150

Overall response from the respondents is in between 44 to 33 which are somewhat

important and extremely important about higher degree of recall which are

endorsed by their favorite celebrities.




Findings: Testing null Hypothesis for special feature associated with celebrity is



AgeH0: Higher degree of recall is independent to Age.

H1: Higher degree of recall is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalExtremely Important 1 20 9 3 33Somewhat Important 5 32 5 2 44



Moderate 1 12 2 3 18Somewhat Unimportant 6 19 3 2 30Not Important 1 18 5 1 25

Total 14 101 24 11 150 About 32 people with age group of 21-35 are somewhat important, where as 20

respondent extremely important to pay higher price for product. 23 respondents

are uncertain about to pay higher price for product. Overall, all age category

respondent are disagree to pay higher price for product.




Findings: Testing null Hypothesis that higher degree of recall is independent to age then


Hypothesis because chi-square value is 0.276

------Trustworthiness.



Graph 3.33

Trustworthiness

58, 39%

41, 27%

6, 4%

26, 17%


Somewhat Important

Moderate


Not Important

GenderH0: Trustworthiness is independent to Gender.

H1: Trustworthiness is dependent to Gender.


Degree of freedom=1


Gender Male Female TotalExtremely Important 39 19 58Somewhat Important 19 22 41Moderate 3 3 6Somewhat Unimportant 21 5 26Not Important 10 9 19

Total 92 58 150

According to above chart, 39 male and 19 female are extremely important with

trustworthiness for celebrity. Where as only 19male and 22 female somewhat

important, moderate male and female are 3 & 3 respectively.






Findings: Here chi-square value is below the significant level of 0.05, so here we have to

reject the null hypothesis below significant level 0.044.

CategoryH0: Trustworthiness is independent to category.

H1: Trustworthiness is dependent to category.


Degree of freedom=1



Extremely Important 22 12 17 7 58Somewhat Important 15 10 11 5 41Moderate 2 2 1 1 6Somewhat Unimportant 11 2 8 5 26Not Important 10 5 3 1 19

Total 60 31 40 19 150


important and extremely important about trustworthiness associated with

product, which are endorsed by their favorite celebrities.




Findings:



Testing null Hypothesis for trustworthiness associated with celebrity is



AgeH0: Trustworthiness is independent to Age.

H1: Trustworthiness is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalExtremely Important 7 38 10 3 58Somewhat Important 2 27 8 4 41Moderate 2 2 1 1 6Somewhat Unimportant 3 18 2 3 26Not Important 0 16 3 0 19

Total 14 101 24 11 150

About 27 people with age group of 21-35 are somewhat important, where as

38respondent extremely important. 23 respondents are uncertain about for

product. Overall, all age category respondent are disagree to pay higher price for

product.




Findings: Testing null Hypothesis that trustworthiness of recall is independent to age then



------Associates benefits.



Graph 3.34

Associates benifits

47, 31%

53, 35%

15, 10%

22, 15%


Somewhat Important

Moderate


Not Important

GenderH0: An Associates benefit is independent to Gender.

H1: An Associates benefit is dependent to Gender.


Degree of freedom=1


Gender Male Female TotalExtremely Important 29 18 47Somewhat Important 29 24 53Moderate 9 6 15Somewhat Unimportant 18 4 22Not Important 7 6 13

Total 92 58 150

According to above chart, 29 male and 18 female are extremely important with

associate benefit for celebrity. Where as only 29male and 24 female somewhat

important, moderate male and female are 9 & 6 respectively.




Value df Asymp. Sig. (2-sided)Pearson Chi-Square 5.192 4 0.268N of Valid Cases 150


Findings: Testing null Hypothesis for celebrity associate benefits are independent to gender

then above table suggests that it is independent to the gender group. So accept the

Null Hypothesis is 0.268

CategoryH0: An Associates benefit is independent to Category.

H1: An Associates benefit is dependent to Category.


Degree of freedom=1



Extremely Important 19 7 12 9 47Somewhat Important 26 12 11 4 53Moderate 3 5 4 3 15Somewhat Unimportant 8 4 8 2 22Not Important 4 3 5 1 13

Total 60 31 40 19 150


important are students & husband, extremely important about associated benefits,

which are endorsed by their favorite celebrities.




Findings:



Testing null Hypothesis for benefits associated with celebrity is independent to

category then above table suggests that it is independent to the category group.

So, accept the Null Hypothesis is 0.529

AgeH0: An Associates benefit is independent to Age.

H1: An Associates benefit is dependent to Age.


Degree of freedom=1


Age Below-20 21-35 36-50 Above 50 TotalExtremely Important 3 33 7 4 47Somewhat Important 7 34 7 5 53Moderate 1 9 4 1 15Somewhat Unimportant 2 15 4 1 22Not Important 1 10 2 0 13

Total 14 101 24 11 150

About 34 people with age group of 21-35 are somewhat important, where as 33

respondent extremely important. 9 respondents are moderate about associate

benefits of product. Overall, all age category respondent are agree to pay higher

price for product for its associated benefits’.




Findings: Testing null Hypothesis that associate benefits’ of product is independent to age

then above table suggests that it is independent to the age group. So accept the




Q-9. How much you satisfied with the product which is endorse by your favorite celebrity?

Graph 3.35

Satisfaction level

31, 21%

51, 34%14, 9%

30, 20%

24, 16%Very Satisfied

Somewhat Satisfied

Moderate

Somewhat Dissatisfied

Very Dissatisfied

GenderH0: Satisfied with the product is independent to Gender.

H1: Satisfied with the product is dependent to Gender.


Degree of freedom=1


Gender Male Female TotalVery Satisfied 19 12 31Somewhat Satisfied 32 19 51Moderate 6 8 14Somewhat Dissatisfied 18 12 30Very Dissatisfied 17 7 24

Total 92 58 150

According to above chart, 32 male and 19 female are some what satisfied with

celebrity. Where as only 19male and 12 female somewhat satisfied, moderate

male and female are 6 & 8 respectively.





A0 cells (.0%) have expected count less than 5.The minimum expected count is 5.41.

Findings: Testing null Hypothesis for celebrity satisfaction level is independent to gender

then above table suggests that it is independent to the gender group. So, accept the

Null Hypothesis is 0.559.

CategoryH0: Satisfied with the product is independent to category.

H1: Satisfied with the product is dependent to category.


Degree of freedom=1



Very Satisfied 9 10 9 3 31Somewhat Satisfied 20 8 14 9 51Moderate 7 4 3 0 14Somewhat Dissatisfied 14 6 6 4 30Very Dissatisfied 10 3 8 3 24

Total 60 31 40 19 150


satisfied are 20 students & 14 husband, very satisfied about satisfaction level 10

housewife & 9 husband which are endorsed by their favorite celebrities.



A7 cells (35.0%) have expected count less than 5. The minimum expected count is 1.7



Findings: Testing null Hypothesis for satisfaction level with celebrity is independent to

category then above table suggests that it is independent to the category group.

So, accept the Null Hypothesis is 0.651

AgeH0: Satisfied with the product is independent to Age.

H1: Satisfied with the product is dependent to Age.


Degree of freedom=1

Table 3.150-Age wise

(Cross tabulation)Age Below-20 21-35 36-50 Above 50 Total

Very Satisfied 1 22 6 2 31Somewhat Satisfied 6 35 5 5 51Moderate 2 7 4 1 14Somewhat Dissatisfied 2 20 6 2 30Very Dissatisfied 3 17 3 1 24

Total 14 101 24 11 150

About 35 people with age group of 21-35 are somewhat satisfied where as 22

some what satisfied. 7 respondents are satisfied about product which is endorsed

by their celebrity, all age category respondents are agree about their favorite

celebrity endorsed for the product.






Findings: Testing null Hypothesis that satisfaction level for product by which endorsed by

celebrity is independent to age then above table suggests that it is independent to

the age group. So accept the Null Hypothesis because chi-square value is 0.839

Q-10. Match the most attributes to the celebrities:

Sachin:

Graph 3.36

Match attributes( Sachin)

38, 25%

60, 40%

27, 18%

25, 17%

Trust

Expertiseness

Attractiveness

Reliability

GenderH0: Attributes to the celebrities is independent to Gender.

H1: Attributes to the celebrities is dependent to Gender.


Degree of freedom=1




Gender Male Female TotalTrust 23 15 38Expertise 33 27 60Attractiveness 17 10 27Reliability 19 6 25

Total 92 58 150

From the above table we conclude that, people prefer Expertise attribute

maximum for Sachin. In which, 33 male and 27 female are included. Than Trust

attribute at second no with 38 respondent, in which 23 male and 15 female.



0 cells (.0%) have expected count less than 5.The minimum expected count is 9.67.

Findings: Expressiveness attribute is independent to gender. So here, we cannot accept The

Null Hypothesis because value is 0.34.

Graph 3.37Category wise Graph

Sachin

0

5

10

15

20

25

30

Student Housewife Husband WorkingPerson

Trust

Expertiseness

Attractiveness

Reliability

Table 3.154-Category wise Table




Trust 17 8 11 2 38Expertiseness 24 14 11 11 60Attractiveness 11 6 8 2 27Reliability 8 3 10 4 25

Total 60 31 40 19 150

According above graph and table we can said that, all category respondent see

Expertiseness in Sachin. This was recorded with high value in all categories. And

only 25 respondents suggest Reliability attribute to the Sachin, which is minimum

value in table.

Amitabh Bacchan:

Graph 3.38

Match Attributes(Amitabh)

66, 44%

36, 24%

23, 15%

25, 17%

Trust

Expertiseness

Attractiveness

Reliability

Gender

H0: Attributes to the celebrities is independent to Gender.



Degree of freedom=1

Table 3.155-Gender wise



(Cross tabulation)

Gender Male Female TotalTrust 35 31 66Expressiveness 22 14 36Attractiveness 16 7 23Reliability 19 6 25

Total 92 58 150

According to above analysis, Amitabh Bacchan is most trustful person for both

male and female respondent. Male respondent also believe in expertiseness of

Amitabh Bacchan.




Findings:

From the above testing, attribute is independent to gender because chi-square

value is 0.184 which is greater then 0.05, so we can accept The Null Hypothesis.

Category wise GraphGraph 3.39

Amitabh

0

5

10

15

20

25

30

35

Student Housewife Husband Working Person

Trust

Expertiseness

Attractiveness

Reliability




Category Student Housewife Husband Working Person TotalTrust 30 15 15 6 66Expertiseness 13 8 9 6 36Attractiveness 9 4 7 3 23Reliability 8 4 9 4 25

Total 60 31 40 19 150

A maximum person of all above category shows trust on Amitabh bacchan, in which student make maximum trust.

Priyanka:

Graph 3.40

Match attributes(Priyanka)

21, 14%

32, 21%

68, 46%

29, 19%

Trust

Expertiseness

Attractiveness

Reliability

Gender




Degree of freedom=1




(Cross tabulation)

Gender Male Female TotalTrust 14 7 21Expertiseness 27 5 32Attractiveness 32 36 68Reliability 19 10 29

Total 92 58 150

Both male and female person look attractiveness in Priyanka, in which 32 male

and 36 female, which is maximum in the respondent.



0 cells (.0%) have expected count less than 5.The minimum expected count is 8.12.

Findings: Here attributes is dependent to gender, because the chi-square value is 0.004

which is less then, so we can’t accept The Null Hypothesis.


Priyanka

0

5

10

15

20

25

30

35


Trust

Expertiseness

Attractiveness

Reliability



Table 3.160-Category wise TableCategory Student Housewife Husband Working Person Total


Total 60 31 40 19 150

Out off 150 respondent,68 respondent are agree that, Priyanka is very attractive celebrity.

But minimum 21 respondents make trust on her. 32 people see expertiseness, and 29

people saw reliability in her.

Akshay Kumar:

Graph 3.42

Match Attributes (Akshay)

28, 19%

45, 30%55, 36%

22, 15%

Trust

Expertiseness

Attractiveness

Reliability

Gender




Degree of freedom=1

Table 3.161-Category wise



(Cross tabulation)Gender Male Female Total

Trust 15 13 28Expertiseness 28 17 45Attractiveness 32 23 55Reliability 17 5 22

Total 92 58 150

For Akshay, respondents give mix response towards attributes. Mostly people

look attractiveness and expertiseness in Akshya kumar.




Findings: The celebrity attributes is independent to gender, and chi-square value is 0.346, so

we can accept The Null Hypothesis.


Akshay

0

5

10

15

20

25


Trust

Expertiseness

Attractiveness

Reliability






Total 60 31 40 19 150

In the category wise cross tabulation, respondent give mix response to Akshy. 45

person look expertiseness and maximum 55 person look attractiveness in him.

Ketrina Kaif:

Graph 3.44

Match attributes (Katrina)

14, 9%13, 9%

112, 75%

11, 7%

Trust

Expertiseness

Attractiveness

Reliability

Gender




Degree of freedom=1




(Cross tabulation)


Total 92 58 150




Findings: Testing null Hypothesis that important attribute is independent to age then above

table suggests that it is independent to the age so accept the Null Hypothesis.

Because there value is 0.54.


Katrina

0

5

10

15

20

25

30

35

40

45

50


Trust

Expertiseness

Attractiveness

Reliability




Category Student Housewife Husband Working Person TotalTrust 8 1 3 2 14Expertiseness 5 3 3 2 13Attractiveness 44 24 31 13 112Reliability 3 3 3 2 11

Total 60 31 40 19 150

From the analysis of table we surely said that, maximum number of people looks

very attractiveness in Ketrina kaif. 112 out of 150respondent are attracting from

Katrina’s beauty.

Amirkhan:

Graph 3.46

Match attributes (Amir Khan)

34, 23%

42, 28%46, 30%

28, 19%

Trust

Expertiseness

Attractiveness

Reliability




Degree of freedom=1





Total 92 58 150

Graph show mix response toward Amir khan attributes, because, for attritiveness

46 respondent, for expertiseness 42, for trust 34 respondent. We can said that,

Amirkhan have more then one qualities.




Findings: Testing null Hypothesis that important attribute is independent to gender then

above table suggests that it is independent to the gender so accept the Null



Aamir Khan

0

5

10

15

20

25


Trust

Expertiseness

Attractiveness

Reliability






Total 60 31 40 19 150

The graph show, maximum students see expertise in him, maximum housewife

and husband see as attractive hero.

Sahrukhkhan:

Graph 3.48

Match Attributes (Shahrukh khan)

42, 29%

41, 27%

41, 27%

26, 17%

Trust

Expertiseness

Attractiveness

Reliability

According to graph, respondent look more Trust, Expertise and Attractiveness

rather then Reliability in Sahrukhkhan. In which, 29% for Trust, 27%for both

Expertise and Attractiveness and for reliability 17%.






Degree of freedom=1



Total 92 58 150

According to gender wise analysis, maximum 33male look Attractiveness

and maximum 28 female look Trust in S.K. but over all mix response

of people.


Pearson Chi-Square 24.50 3 1.96E-05N of Valid Cases 150







Graph 3.49Category wise Table

Shahrukh Khan

02468

101214161820

Student Housewife Husband WorkingPerson

Trust

Expertiseness

Attractiveness

Reliability

This graph shows that, in the student category, maximum student 18 see expertise

in Sahrukh khan. Maximum housewife make trust on S.K.maximum husband look

attractiveness in him, mix of response from working person.




Total 60 31 40 19 150



Aishwarya Bacchan:Graph 3.50

The graph indicates that, 47% people attract from Aish beauty. Some people,

about 21% look expertise in her, 15% people make Trust on her and 17% people

see Reliability in her.




Degree of freedom=1



Total 92 58 150

From the above table out of 150 respondents 70 are highly believe about

attractiveness attribute. Out of 70 respondents 50 are male who are attract towards


Match attributes (Aishwarya)

23, 15%

32, 21%

70, 47%

25, 17%

Trust

Expertiseness

Attractiveness

Reliability


the celebrity & 20 are female who are low believe in the attractiveness of the

celebrity.








Aishwariya

0

5

10

15

20

25

30


Trust

Expertiseness

Attractiveness

Reliability



Total 60 31 40 19 150



The category wise table shows that, 70 respondents have high attractiveness

towards the celebrity in which 25 are students, but no specification about the

gender. 32 respondents are in which 14 are students who highly believe in

Aishwarya Ray is expertiseness is so good.

Dhoni:Graph 3.52

Match Attributes (Dhoni)

46, 31%

36, 24%30, 20%

38, 25%

Trust

Expertiseness

Attractiveness

Reliability

People are highly believe in Dhoni as he is one of the successful captain of the

Indian cricket team.31% people have the high attractiveness towards Dhoni, 25%

people having reliability & 24% people believe that expertiseness in Dhoni about

is high. 20% People are know that the Dhoni has good looks due to that people

are high attract Dhoni.




Degree of freedom=1





Total 92 58 150

The above table shows that there is highly trust by male gender related to trust on

Dhoni. 46 respondents in which, 29 are male category. 38 respondents in which

22 male reliability are high.36 respondents in which Dhoni has high expertiseness

in to the endorsing a product.




Findings: The Testing null Hypothesis that important attribute is independent to gender then


Hypothesis. Because there value is 0.299




0

2

4

6

8

10

12

14

16

18

20


Dhoni

Trust

Expertiseness

Attractiveness

Reliability



Total 60 31 40 19 150

The whole category wise table show about Dhoni’s expertiseness as well as the

trust related to the particular product is more. 46 respondent in trust and 36 are

expertiseness who are highly believe that Dhoni is quiet good for the any of the

product due to his impression. Their belief about expertiseness & attractiveness is

good due his name &fame also one the factor.




ConclusionConclusionConclusionConclusion



CONCLUSION

Celebrity endorsement can be a goldmine or a minefield for a company's brand

building process. There have been extensive studies relating to the process of

celebrity endorsement and brand-building. These studies indicate that celebrity

endorsement has worked well in some consumer segments while failing in others.

Few celebrities have been more successful than those with almost parallel fame.

So the role of celebrity endorsement in the advertising space is equivocal and

cannot be seen as a assured strategic tool to win profits, market share, revenues,

etc.

Consumers can identify the clear difference between a good script and a good

brand idea. For example, while Pepsi's Sachin and Bachchan (kite flying) ad was

seen as one with a good script, Coca-Cola's Thanda Matlab... was seen as an

insightful and strong brand idea. For all the flak it drew in its vainglorious

attempts to run down competition, Thumbs-Up was seen as the only example of

seamless linkage between brand positioning and brand celebrity.

"Brand" is the most valuable asset of any company; building its image is, thus, of

paramount importance. Any thoughtless adventure can be like the Sword of

Damocles upon your head. Celebrities do not make brands but ideas do. If the

former were true then brands would have vanished when the hype and hoopla

around the celebrities faded. Celebrity endorsement is also one of the ideas. But,

its easy to come up with new ideas; the hard part is letting go of what worked for

you two years ago, but will soon be out-of-date. Therefore, it is imperative to

invest in good ideas; which will bring good returns. Thus, the need of the hour is

to focus less on your Return-on-Investment, and think more in terms of your

Return-on-Ideas.

There is an increasing challenge to the marketing manager to develop and

implement an integrated marketing communication (IMC) plan to realize the true



value of the celebrity endorsements. There is a gradual shift from the traditional

approach of showing celebrities in advertisement to making them the "spokes-

person" of the brand. Companies have taken celebrity endorsement to next level

by projecting brands as a way of life. Smart companies are using their brand

ambassadors in other mediums such as movies to promote their brands. E.g.,

Amitabh Bachchan, who endorses the financial instruments of ICICI Bank, is

shown as a branch-manager of ICICI Bank in the movie Baghban.

Wooing the key existing and potential target customers is the trait of a successful

promotion strategy. However, the marketing manager should be able to offer

significant value propositions in the services / products offered to the customers.

Thus, one needs to integrate celebrity endorsement with other marketing

programs and ensure that the celebrity attributes align with the overall brand or

company. Companies that succeed in developing such an integrated IMC plans is

the one to succeed in the long-ter

CONCLUSION OF THE PRIMARY ANALYSIS OF SURVEY:

we tried to measure the effectiveness of celebrity on advertisement & consumers

behavior, through asking various questions which are based on measurement, with

the help of which we measure the consumers effectiveness in terms of their

perception, their purchase intention by seeing an advertisement, their experience,

recall value, effectiveness towards the celebrity.

From our whole analysis , we conclude that the effectiveness of celebrity on

advertisement & its role is high on consumers. But the celebrity proves a best for

the consumers due to their name & fame. Advertisement plays a good role in

purchasing power of consumers . But sometimes celebrity creates

misunderstanding to people also by negative advertisement.

Yes, the celebrity advertisement is best for the brand awareness on consumers

mind and also helps in recalling ads and the product. Also consumer behavior is

broadly based on its past purchasing experience, but through our analysis we can



say that celebrity advertising helps in recalling brand and creates a certain image

in the consumers mind.

But main thing is only depend upon the consumers personality, attitude, lifestyle,

purchasing power also.

As social benefits include emotional and self esteem benefits, consumers would

like to see and emulate some well known personalities who use those products

that they want to purchase. By having a celebrity endorse these categories of

products, consumers are provided with a strong personality and a persona to

emulate



BIBLIOGRAPHYBOOKS:

Marketing Management by Philip Kotler Consumer Behavior by leon Schiffman Businees Research Methodology by Statistics of Management By Levin & Rubin Advertising & Promotion management By Lauden &Lauden

REFERENCE:

Philip A. Stroke(2009), "Impact of Celebrity Endorsement",Journal of Consumer Research, Vol. 14 March, Pg.471-82.

Shimp (2007), "Celebrities as spokesperson", Journal of Retailing, Vol. 76 No. 2, Pg.175-91.

Friedmen et al. (1976), “The power of brand”, Journal of Business, Vol. 23, Pg.71-8

MAGAZINES: Business World Marketing Master Mind Journal of Marketing

Websites: www.marketingmanagement.in/india.html www.marketingmania.in/india.html http://en.wiki.wikipedia.com/indian_industry www.marketingmanagement.in/india.html www.indiatimes.com/ www.hindustantimes.com http://www.businessweek.com./html


http://www.businessweek.com./html

http://www.hindustantimes.com/

http://www.indiatimes.com/

http://www.marketingmanagement.in/india.html

http://en.wiki.wikipedia.com/indian_industry

http://www.marketingmania.in/india.html

http://www.marketingmanagement.in/india.html


Annexure ICONSUMER’S SURVEY

We are the student of S.P.B. Patel Engg.. M.B.A College Linch, Mehsana. As per the requirement of subject, MANAGEMENT RESEARCH PROJECT - II we are conducting survey on topic: effects of use Celebrities in advertising on customers. We assure you that this information will be used for our academic purpose only so we kindly request you to fill this questionnaire.

Q-1. What are the main reasons due to that the use of celebrities in advertising is Increasing?

1) Peoples attract toward celebrities ………….2) Image of the celebrity…………………………………………………….3) Increase competition leads use of celebrities ………..4) Celebrities’ endorsement lead huge sells of product/services……….5) Create good impression of product on customers’ minds………

Q-2 For the following questions A-L please circle the number which you think is the best answer.

1 2 3 4 5Strongly Disagree Disagree Uncertain Agree Strongly

Agree

A.) Celebrity endorsers are the most persuasive advertising method.

1 2 3 4 5

B.) Do you think celebrity endorsements are ineffective?

1 2 3 4 5

C.) Celebrity endorsers affect the sale of the product with which they are associated.

1 2 3 4 5



D.) According today’s highly competitive world, to increase sales of product or to sustain in the market, use of celebrities in advertising is necessary for the companies.

1 2 3 4 5

E.) A male celebrity endorser for a car will increase your likelihood to purchase the product.

1 2 3 4 5

F.) A female celebrity endorser for a hair product will increase your likelihood to purchase the product.

1 2 3 4 5

G.) You intentionally purchase certain products because of their association with the celebrity.

1 2 3 4 5 H.) “You are attracted towards those products in which advertisement celebrities come more frequently”

1 2 3 4 5 I.) “You purchase products more in which advertisement your favorite celebrities comes”

1 2 3 4 5 J.) “Using those products in which advertisements celebrities comes creates good impressions on the others (society)”

1 2 3 4 5

K.) “You purchased product by watching product endorsed by celebrities and then after you realized that product having no good quality as endorsed by celebrities and you feel cheated”

1 2 3 4 5

L.) “Advertisement in which celebrities come that advertisement is remembered by you through longer period of time”

1 2 3 4 5

Q-3. How important do you consider each of the attributes mentioned to be of importance when considering a Celebrity as a brand ambassador of a product? (Please evaluate each attribute on the scale of 1 to 5)



a) Expertise (The Level of knowledge a celebrity has in a Particular Brand)

Unimportant 1( ) 2( ) 3( ) 4( ) 5( ) Important

b). Trustworthiness (How honest & believable a celebrity endorsing a product is)


c). Similarity (Sense of similarity a consumer feels with a celebrity) Unimportant 1( ) 2( ) 3( ) 4( ) 5( ) Important

d) Likeability (The level of a celebrity’s fame in public eye & his/her popularity)


e). Meaning Transfer (The meaning a celebrity brings to a brand) Unimportant 1( ) 2( ) 3( ) 4( ) 5( ) Important

f) “Fit” Match (How well the fit between celebrity & the brand is) Unimportant 1( ) 2( ) 3( ) 4( ) 5( ) Important

Q-4.Hoe does presence of celebrity make you feel about Brand

a) More likely to look at

b) Improve perceptions

c) Make me Miss Trusts

d) Don’t know

e) Others

Q-5. Which product advertisement can you recall most with these Celebrities?

Sachin Tendulkar: a) Boost ( ) b) MRF ( ) c) Adidas ( ) d) Pepsi ( )

Amitabh Bachchan a) Dabur( )b) Red&Taylor( )c)TVS victor( )d)Cadbury( )



Aamir Khan: a) Titan ( )b) Samsung ( )c) Cocacola ( ) d) Smartchips ( )

Q-6. “Products advertisement in which celebrities comes more costly than other products in same category? Competitive rates ( ), Moderate ( ) Noncompetitive rates. ( )

Q-7. Please rate the following statements on a scale of 1-5.

a) You try a new brand if it is advertised by your favorite’s celebrity. Strongly Disagree 1( ) 2( ) 3( ) 4( ) 5( ) Strongly Agree

b) You try an existing product if it is advertised by your favorite’s celebrity.

Strongly Disagree 1( ) 2( ) 3( ) 4( ) 5( ) Strongly Agree

c) You don’t mind paying higher prices for products advertised by myFavorite’s celebrity. Strongly Disagree 1( ) 2( ) 3( ) 4( ) 5( ) Strongly Agree

e) Advertisement of a product by a celebrity can make that productSuccessful. Strongly Disagree 1( ) 2( ) 3( ) 4( ) 5( ) Strongly Agree

Q-8. The following list of feature are associated with celebrity endorsement, for each feature, please record the one alternative that best express how important or un important that features to you.

1. Extremely 2.somewhat 3.nither important 4.somewhat 5.not at all Important Important nor unimportant unimportant important ------Higher degree of recall. ------Trustworthiness. ------Associates benefits.

Q-9. How much you satisfied with the product which is endorse by your favorite celebrity?

1. Very satisfied.



2. Somewhat satisfied.3. Neither satisfied nor dissatisfied.4. Somewhat dissatisfied.5. Very dissatisfied.

Q-10. Match the most attributes to the celebrities:

Sachin : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Amitabh : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Priyanka : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Akshay : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Ketrina : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Amirkhan : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Sahrukh khan :[ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Aishwarya : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Dhoni : [ ] Trust, [ ] Expertise ness, [ ] Attractiveness. [ ] Reliability,

Name: …………………………………………………………………………….

Address:

Category:…………………………………………………………………… (Student, housewife, Husband, Working person (Bachelor)

Age: …… Contact No………………………


role of celebrities in advertisement & its efectiveness

Documents