Celebrity endorsement final group2


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Celebrity endorsement final group2

  2. 2. Acknowledgement We would like to acknowledge and thank all the respective people who have helped us inachieving the objective of this project. This project is not just our work! There are many, withoutwhose guidance and support, we would not have been able to complete this Project. Our Guide, VENKETESH IYER, has been a pillar of strength and support , helping usover for the Project work. Last, but not the least we wish to thank our friends for giving us invaluable support,encouragement and love. Abstract:The field of consumer behavior is the study of individuals, groups or organizations and theprocesses they use to select, secure, use and dispose of product, services, experiences, or ideas tosatisfy needs and impacts that these processes have on the consumer and society. And
  3. 3. understanding the consumer behavior is the prime and toughest task in front of every marketer.There are a lot of factors, which influence consumer buying behavior. Our study aimed at tounderstand that to what extent actually celebrity endorsement influence the brand and ultimatelythe buying behavior of consumers.Marketers pay millions of dollars to celebrity endorsee hoping that the stars will bring theirmagic to brand they endorse and make them more appealing and successful. But all celebrityglitter is not gold.Celebrity sources may enhance attitude change for a variety of reasons. They may attract moreattention to the advertisement than would non-celebrities or in many cases, they may be viewedas more credible than non-celebrities. Third, consumers may identify with or desire to emulatethe celebrity. Finally, consumer may associate known characteristics of the celebrity withattributes of the product that coincide with their own needs or desire.The effectiveness of using a celebrity to endorse a firms product can generally be improved bymatching the image of the celebrity with the personality of the product and the actual or desiredserf concept of the target market.What therefore seems relevant by the study is that, yes, definitely to some extent celebrityendorsee influence consumer buying behavior and brand building but while using celebrityendorsee, marketer has to take care of all the aspect that whether the brought personalityand image of celebrity matches or not, whether celebrity endorsee has deep penetrationamong the masses or not, whether he is considered as credible source or not etc. INTRODUCTION
  4. 4. Celebrity branding is a type of branding, or advertising, in which a celebrity uses his or herstatus in society to promote a product, service or charity. Celebrity branding can take severaldifferent forms, from a celebrity simply appearing in advertisements for a product, service orcharity, to a celebrity attending PR events, creating his or her own line of products or services,and/or using his or her name as a brand. The most popular forms of celebrity brand lines are forclothing and perfume. Most singers, models and film stars now have at least one licensedproduct or service which bears their name.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 clientsThe scope of a celebrity on the brand:Simply stating, a brand is a differentiated product and helps in identifying your product andmaking it stand out due to its name, design, style, symbol, color combination, or usually a mix ofall these.Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have toferret 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.
  5. 5.  Manufacturer’s name & reputation: A prominent brand name (Sony, Kellogg’s, Bajaj, and Tata) transfers positive associations.Compatibility of the celebrity’s persona with the overall brand imageA celebrity is used to impart credibility and aspiration values to a brand, but the celebrity needsto match the product. A good brand campaign idea and an intrinsic link between the celebrityand the message are musts for a successful campaign. Celebrities are no doubt good atgenerating attention, recall and positive attitudes towards advertising provided that they aresupporting a good idea and there is an explicit fit between them and the brand. On the otherhand, 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:  Celebrity’s fit with the brand image.  Celebrity—Target audience match  Celebrity associated values.  Costs of acquiring the celebrity.  Celebrity—Product match.  Celebrity controversy risk.  Celebrity popularity.  Celebrity availability.  Celebrity physical attractiveness.  Celebrity credibility.  Celebrity prior endorsements.  Whether celebrity is a brand user.  Celebrity profession.Advantages of a celebrity endorsing a Brand
  6. 6. Brands have been leveraging celebrity appeal for a long time. Across categories, whether inproducts or services, more and more brands are banking on the mass appeal of celebrities. Assoon as a new face ascends the popularity charts, advertisers queue up to have it splashed allover. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter ofa few months. The accruement of celebrity endorsements can be justified by the followingadvantages 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 consumers 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 products `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.
  7. 7.  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 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.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 Colas 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.  Overshadowing the brand: 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
  8. 8.  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’.
  9. 9. ANALYSISA celebrity is a widely-recognized or notable person who commands a high degree of publicand media attention. The word stems from the Latin verb "celebrere" but they may not become acelebrity unless public and mass media interest is piqued.As our first question was:Question 1: Who do you feel is a bigger Celebrity? 1. Sports person 2. Film Stars 3. T.V. Stars 4. Personality who attracts bigger media coverage(for eg Rakhi Sawant, Saif- kareena relationship) Bigger Celebrity Cumulative Frequency Percent Valid Percent PercentValid Sports Person 41 29.9 29.9 29.9 Film Stars 73 53.3 53.3 83.2 TV Stars 5 3.6 3.6 86.9 Personality who attracts bigger media coverage 18 13.1 13.1 100.0 Total 137 100.0 100.0
  10. 10.  This is a frequency test which is run with shows how many correspondents take which category of celebrity as their biggest celebrity The above figures clearly shows that the personalities who are indulge in some relationship and is in news due to some incidence or due to their personal like are the biggest celebrity for majority of our correspondents.
  11. 11. Factors influencing to buy products: 1) Quality: In the vernacular, quality can mean a high degree of excellence (“a quality product”), a degree of excellence or the lack of it (“work of average quality”), or a property of something (“the addictive quality of alcohol”) 2) Celebrity endorsement: The crescendo of celebrities endorsing brands has been steadily increasing over the past years. Marketers overtly acknowledge the power of celebrities in influencing consumer- purchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement can bestow special attributes upon a product that it may have lacked otherwise. 3) After sales services: Customer support following the purchase of a product or service. In some cases, after- sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more year’s maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. 4) Price: Price is the amount of money charged for a product or service or the value exchanged for the benefits of the product or service. 5) Fast services: In times like these, where every customer can make a difference in your bottom line, there are many reasons your customers deserve fast, quality serviceQuestion 2: Rank the following factors which influence you to buy the product again. High 1 2 3 4 5 Low Quality Price Celebrity Endorsement Fast Service After Sales Service
  12. 12. Ranks Mean Rank Quality 1.38 Celebrity Endorsement 3.98 After Sale Service 3.65 Price 2.62 Fast Service 3.38 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 This is an independent test to determine the rank values of the entire sample. The valuewith the lowest mean rank is highly preferred.The result shows that the quality is the most preferred factor while purchasing and celebrityendorsement happens to be the least preferred factor .celebrity endorsements do effect thebuying behavior of the consumer but they prefer quality and price above everything.
  13. 13. Question 3: For how long do you associate a particular celebrity to a particular brand? 1. Temporary 2. Permanent 3. Can’t say Cumulative Frequency Percent Valid Percent PercentValid Temporary 70 51.1 51.1 51.1 Permanent 25 18.2 18.2 69.3 Cant Say 41 29.9 29.9 99.3 5 1 .7 .7 100.0 Total 137 100.0 100.0The analysis says that the consumer attaches a particular celebrity with a brand temporarily formore than 50% of the time. Where as almost 30% do not have views on that. Thus this questionalso suggests us that association with a particular celebrity is only for a shorter period. Whatlasts long is the Brand!Product endorsement:
  14. 14. A product endorsement is a form of testimonial from someone which indicates that they like orapprove of a product. Commonly, product endorsements are solicited from people who aresocially prominent, allowing companies to advertise their products with statements like “as usedby such-and-such an actress,” or “the official product of company/event X.” Its hard to miss aproduct endorsement on product packaging and in advertisements; most companies keep theirendorsements front and center so that they are always in the public eye.
  15. 15. Question 4: Products endorsed by celebrities are always of high quality and I always preferthem. i. Strongly agree ii. Somewhat agree iii. Neutral iv. Somewhat disagree v. Strongly disagreeDo Celebrity Endorse High Quality Product? Cumulative Frequency Percent Valid Percent Percent Valid Strongly Disagree 4 2.6 2.6 2.6 Disagree 10 6.4 6.4 9.0 Neutral 14 9.0 9.0 17.9 Agree 84 53.8 53.8 71.8 Strongly Agree 44 28.2 28.2 100.0 Total 156 100.0 100.0
  16. 16. Celebrity endorsements are credible 0.64% Yes No Missing37.18% 62.18%
  17. 17. Celebrity helps shopping!! Companies use celebrities to advertise their product or service because of the familiarity aspect. The average person often recognizes most celebrities, and this recognition draws the customer to the commercial. Question 5: How much do you think that the celebrity endorsement helps in making your shopping beneficial? To great Extent __ __ __ __ __ Not much 1 2 3 4 5 Is Celebrity Endorsement is Beneficial Cumulative Frequency Percent Valid Percent PercentValid To Great Extent 6 4.4 4.4 4.4 To Some Extent 24 17.5 17.5 21.9 Cant Say 48 35.0 35.0 56.9 To lesser Extent 37 27.0 27.0 83.9 Not much Affected 22 16.1 16.1 100.0 Total 137 100.0 100.0The above study shows that the most of the respondents are bit confused about the benefits theygain or how much do celebrity endorsement really helps then while purchasing the products!
  18. 18. But we can also see that there is a major chunk of population which also says that celebrityendorsement helps them select the product for themselves to a very less extend that mean theymake their purchase decision while influencing through lot other factors like price quality etc.Only 4% of the total respondents were actually influenced by celebrity endorsement whilepurchasing the products which is very less!
  19. 19. Question 6: Do you associate the celebrity directly with the quality and the performance of theproduct? a. Yes, every time b. Not really c. No, Never Celebquality6 Cumulative Frequency Percent Valid Percent PercentValid Yes, Everytime 16 11.7 11.7 11.7 Not Really 97 70.8 70.8 82.5 No, Never 23 16.8 16.8 99.3 4 1 .7 .7 100.0 Total 137 100.0 100.0 From the above diagram we can easily make out that people cannot really relate the quality of their product with the celebrity endorsing it. But somewhere in the back of their mind if a celebrity endorsing that particular product it has to be good.
  20. 20. Question 7: celebrity endorsements help you to select a product: 1) It helps in building trustHelps enhance brand image * Gender CrosstabulationCount Gender Male FemaleHelps Strongly Disagree 3 0 3enhance Disagree 15 4 19brand Neutral 13 1 14image Agree 74 22 96 Strongly Agree 16 8 24Total 121 35 156
  21. 21. We can clearly see from above results that celebrity endorsement helps in enhancing barnd image as majority of our respondents replied. It is symmetrical in both the cases female as well as. There is no change in the opinion of both the genders. 2) Celebrity endorsement on advertisement motivate you to purchase 3) Helps to tag an emotional appeal towards the productCreate brand awareness * Gender CrosstabulationCount Gender Male Female Male Create Strongly Disagree 1 0 1 brand Disagree 9 2 11 awareness Neutral 28 3 31 Agree 65 20 85 Strongly Agree 18 10 28 Total 121 35 156
  22. 22. Majority of our respondent agree on the point that celebrity endorsement increases the brandawareness.Becoze they think celebrity endorsement helps the celebrity and the brand to increase theirawareness amongst the public.But a few were neutral at this point as they thought this is true but not too much extend.And we can also see that females are very positive about the as compare to males. As most of thefemales think that celebrity endorsement really helps in product awareness.
  23. 23. 4) Helps to recall the product easily Recall brand * Gender CrosstabulationCount Gender Male Female MaleRecall Strongly Disagree 4 0 4brand Disagree 12 3 15 Neutral 32 9 41 Agree 60 15 75 Strongly Agree 13 8 21Total 121 35 156
  24. 24. Majority of people agree that they are able to recall the product easily when that product orbrand is associated with some celebrity. This was the same scenario with both the genders male and female.
  25. 25. Question 8: kind of ads people prefer: 1) New innovative ads Innovative Ads Cumulative Frequency Percent Valid Percent PercentValid Very High 98 71.5 71.5 71.5 High 29 21.2 21.2 92.7 Neutral 6 4.4 4.4 97.1 Low 3 2.2 2.2 99.3 Very Low 1 .7 .7 100.0 Total 137 100.0 100.0Our study clearly shows that people like more of innovative ad as they always look for something new and that highly attract them.Even the kind of add the brand shows also becomes the hot topic for discussion amongst the peergroup.So company should take their ads very seriously and this also shows that they must keepchanging them and bring new innovative ideas.
  26. 26. 2) Ads based on product feature Product Feature Ads Cumulative Frequency Percent Valid Percent PercentValid Very High 45 32.8 32.8 32.8 High 59 43.1 43.1 75.9 Neutral 28 20.4 20.4 96.4 Low 5 3.6 3.6 100.0 Total 137 100.0 100.0 People like to see the product features but not that much as compare to those of innovative ideas. But product features are the main aspect because in absence of those the ad becomes senseless and the total loss of money for the firm. 3) Ads promoted through your favorite celebrity: Ads Promoted by Favorite Celebrity Cumulative Frequency Percent Valid Percent Percent
  27. 27. Valid Very High 36 26.3 26.5 26.5 High 34 24.8 25.0 51.5 Neutral 36 26.3 26.5 77.9 Low 24 17.5 17.6 95.6 Very Low 6 4.4 4.4 100.0 Total 136 99.3 100.0Missing System 1 .7Total 137 100.0 This shows the mixed response so nothing as such can be concluded here as here people highly prefer the ads with their favorite celebrity and those who prefer and those who neither prefer too much nor just dislike is almost same. But no negative response came which mean that more or less everyone likes such advertisements. 4) Featuring Common people: Ads Featuring Common People Cumulative Frequency Percent Valid Percent Percent
  28. 28. Valid Very High 18 13.1 13.1 13.1 High 39 28.5 28.5 41.6 Neutral 50 36.5 36.5 78.1 Low 24 17.5 17.5 95.6 Very Low 6 4.4 4.4 100.0 Total 137 100.0 100.0 People don’t have any kind of disliking towards the ads showing common people but don’t prefer them too much also. Most of them are neutral towards such ads. Some even like those ads but not too much. 5) Featuring Animals: Ads Featuring Animals Cumulative Frequency Percent Valid Percent Percent
  29. 29. Valid Very High 10 7.3 7.3 7.3 High 19 13.9 13.9 21.2 Neutral 39 28.5 28.5 49.6 Low 41 29.9 29.9 79.6 Very Low 28 20.4 20.4 100.0 Total 137 100.0 100.0 This was seen that people like watching their favorite animals in the ads like digs, monkeys and all. Though less than 50% i.e. 30% of people highly prefer those but this no. was better then others. 6) Through animated characters Ads with Animated Characters Cumulative Frequency Percent Valid Percent Percent
  30. 30. Valid Very High 13 9.5 9.5 9.5 High 37 27.0 27.0 36.5 Neutral 38 27.7 27.7 64.2 Low 22 16.1 16.1 80.3 Very Low 27 19.7 19.7 100.0 Total 137 100.0 100.0People like animated characters in the ad films but this was found that this was the least popularamongst the viewers as compare to other factors
  31. 31. Question 9: If a big celebrity is endorsing a product, can you trust on the product withoutlooking for further information about it? Yes No Can’t Say Trstcelebendrsmnt9 Cumulative Frequency Percent Valid Percent PercentValid Yes 18 13.1 13.1 13.1 No 100 73.0 73.0 86.1 Cant Say 17 12.4 12.4 98.5 4 1 .7 .7 99.3 9 1 .7 .7 100.0 Total 137 100.0 100.0
  32. 32. Here the data clearly show that even if the brand is being endorsed by a celebrity it don’tincrease the trust ability factor about the product. It just increase the awareness but don’t affectmuch on its trust ability.Question 10: Do you think the celebrities use the product that they endorse? Always Never Sometimes Can’t Say Celebrity Using the product they Endorse Cumulative Frequency Percent Valid Percent PercentValid Always 9 6.6 6.6 6.6 Never 46 33.6 33.6 40.1 Sometimes 43 31.4 31.4 71.5 Cant Say 39 28.5 28.5 100.0 Total 137 100.0 100.0
  33. 33. Most of the people think that the celebrity never uses the product that they endorse. Thoughthere is large chunk of people who don’t know or think sometimes they use them. Question 11: 1) If my favorite celebrity starts endorsing a competitive brand which I do not use; I will shift my loyalties. Shifting of loyalties Cumulative Frequency Percent Valid Percent PercentValid Strongly Agree 7 5.1 5.1 5.1 Somewhat Agree 21 15.3 15.4 20.6 Neutral 23 16.8 16.9 37.5 Somewhat Disagree 66 48.2 48.5 86.0 Strongly Disagree 19 13.9 14.0 100.0 Total 136 99.3 100.0Missing System 1 .7Total 137 100.0
  34. 34. Majority of respondents are ready to switch their loyalty towards their current brand if their favorite celebrity starts endorsing a competitor’s brand 2) Celebrity endorsement creates more hype than its value Creates More Hype than its Value Cumulative Frequency Percent Valid Percent PercentValid Strongly Agree 42 30.7 30.9 30.9 Somewhat Agree 75 54.7 55.1 86.0 Neutral 15 10.9 11.0 97.1 Somewhat Disagree 4 2.9 2.9 100.0 Total 136 99.3 100.0Missing System 1 .7Total 137 100.0
  35. 35. Most of the respondents were quite agree to the point that celebrity endorsement create more of the hype for the product which is not required and product may not be even worth 3) The price of the product does not matter to me if it’s endorsed by someone whom I like Price doesnt Matter with favorite Celebrity Cumulative Frequency Percent Valid Percent PercentValid Strongly Agree 10 7.3 7.4 7.4 Somewhat Agree 23 16.8 16.9 24.3 Neutral 12 8.8 8.8 33.1 Somewhat Disagree 56 40.9 41.2 74.3 Strongly Disagree 35 25.5 25.7 100.0 Total 136 99.3 100.0Missing System 1 .7Total 137 100.0
  36. 36. Most of the people were somewhat disagree on the point that the prices of the product won’t matter to them if their favorite celebrity is endorsing the product. CONCLUSIONFrom our study, we came to the following conclusion.
  37. 37.  Though celebrity endorsements do not directly influence the buying behavior of the consumers but it does help in adding value to the brand image. Consumes take into account various factors like price, quality, after sales service etc. while making any purchase decisions. Celebrity endorsements do affect in recognizing the product, but what affects them really is the experience of the product.