mba disserTaTion Thesis mba disserTaTion Thesis                                                                           ...
2PRIFYSGOL CYMRU LLANBEDR PONT STEFFANPERSONAL DECLERATION:It is hereby notified to the Academic Registry and the Departme...
3ACKNOWLEDGEMENT:I Mr. Arittra Basu would like to dedicate my master’s degree dissertation to my loving parentsMr. Asit Ba...
4ABSTRACT:Purpose – The main purpose of this research paper is first, to gain a deeper understanding of thecelebrity endor...
5Table of contents:                                              Page NumberChapter 11. Introduction1.1 The topic………………………...
62.2.3 Celebrity endorsement and Cultural Dimension………………………………………412.2.4 Acceptance of Celebrity Endorsement based on Cul...
73.7 Logistical and Ethical Consideration……………………………………………….673.8 Summary……………………………………………………………………………..69Chapter 4       ...
8Appendix Number 1 (Questionnaire)Appendix Number 2 (Ethical Consideration Form)Appendix Number 3 (Data collection of the ...
9Fig 17.1 Celebrities in media channels……………………………………………………….73Fig 18.1 Celebrity endorsement influencing busying behaviou...
10                                         CHAPTER 11. Introduction:In this chapter the researcher has provided the reader...
11globally and several companies came up with similar product offerings which created a big poolof developed products and ...
12celebrity endorsement is very popular mode of marketing in India rather than in UK where theeffectively of the product/g...
13goods, services and ideas for various companies and organizations. They came from all facet ofthe society after claiming...
14taken from the anonymous voice-over in video and audio advertisements which often uses layendorsers to promote the produ...
15personified figure into the brand and gets the association of being recognized as part of the cliquesummoning the celebr...
16practical illustration of the above tactic has been found in the “Milk Mustache” campaign in theUSA where they have enga...
17•   Creating a liking for the advertisement and add recall by consumers.•   The prospect of having amplified sales from ...
18and cosmetic ranges using the universal pay off “because I am worth it” which a patent versionof their testimonials used...
19pageant winner Ashwarya Rai and Tennis player Sania Mirza have done print ads for the samecampaign. Moreover, to generat...
20Some of the references would be taken from the endorsement of bollywood superstar SharukhKhan as the brand ambassador of...
21several categories as companies choose them according the fame of popularity in the publicindex. They can be chosen from...
22Walkers endorsed celebrities Cat Deeley and Garry Lineker for their marketing campaign in2009, Moneysupermarket.com endo...
23evaluation of the advertisements of both the countries it has been reflected that in India theprominence of celebrity en...
24Bryne et al (2003) argues that maintaining a long tern relationship with a celebrity in anendorsement campaign for a com...
251.8 Purpose of the Research:Through the analysis of previous studies and academic research on consumer behavior it hasbe...
26                              INTRODUCTION – CHAPTER 1                           LITERATURE REVIEW – CHAPTER 2          ...
27objectives with critical discussion of theories and models. The chapter will entail theories like:Pros and Cons of celeb...
28  Potential Advantages              Potential disadvantages               Preventive tactics      Increased attention   ...
29from the surroundings which improves the process of sending the message of the product to thetarget audience.In contrary...
30Objects                  CelebrityPersons                                          Celebrity      Product               ...
31value to the meaning transfer model? What are the attributes of a celebrity endorsement inrelation to marketing campaign...
32based on the criteria that which kind of the characteristics the consumers are looking for from theproduct / brand and w...
33McCracken (1989) suggest that the final stage of meaning transfer from the product to theconsumer is the most complicate...
34line rather then depicting their own life-style. In most circumstances they carry the character of aperson (imaginary) b...
35          In this section the researcher will entail with the theories which reflect on how the companies          selec...
36T            E                  A                 R                     SFigure: 4.1 TEARS model          Source: (Basu,...
37consensus in pursuing the mass in various cultures. E.g. Leonardo Dicaprio known as ahandsome actor and his association ...
38According to Shimp (2000) the advertisers considers various factors while endorsing celebritiesinto their marketing camp...
39                                    Celebrity and target market match up                                                ...
40considered valuable. E.g. the key statement of L’Oreal said by all the endorsers around the world“because I am worth it”...
41Celebrity association and risk of brand dilution: However, there are not always positiveeffects of celebrity association...
42Based on the assumption that a pragmatic approach to identify culture which nurtures thedevelopment and influences econo...
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
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Celebrity Endorsement in advertising a comparative study between UK and India

  1. 1. mba disserTaTion Thesis mba disserTaTion Thesis 2009 The influence of celebriTy endorsemenT in adverTisingcomparaTive sTudy on india vs. uniTed Kingdom ARITTRA BASU UWL ID: 28001438 Word Count: 28296 October 2009 Dissertation submitted as part fulfillment of the MBA (Masters of Business Administration at University of Wales, Lampeter /College of Technology, London) Social Science and Business Administration Programmes Department of Management and Information Technology UNIVERSITY OF WALES LAMPETER 09/23/2009
  2. 2. 2PRIFYSGOL CYMRU LLANBEDR PONT STEFFANPERSONAL DECLERATION:It is hereby notified to the Academic Registry and the Department of Management andInformation Technology of University of Wales, Lampeter that “this dissertation is submitted inpart fulfilment of the M.B.A (Masters of Business Administration) at College of TechnologyLondon” by student bearing UWL ID: 28001438. It is an original piece of work which has beensolely researched and written by the student with the help and support of academic supervisorallocated to the student by the University management. The topic of the dissertation has beenchosen by the student from his experience and knowledge gathered from the previous marketingmodules which he has undertaken during his Term 2 (Marketing Pathway) and the idea andconcept behind the topic came from the IMC (Integrated Marketing Communication) moduleassignment which has initiated the phenomenon to develop the research. The student has seen acause behind the research for the benefit and enhancement of advertising media in the context ofGlobal Marketing for prospective companies. Therefore, the whole research is a genuine piece ofresearch and is a reflection of the academic effort and management knowledge of the studentfrom his postgraduate studies. As, a student I completely understand the rules and regulation ofthe academic procedures in a postgraduate study and acknowledge their concern for theperspective students. I solely respect and honor the rules of the University and thereby certifythis research as my own work.“I declare that this dissertation is the result of my own research and all sources are dulyacknowledged by the researcher”Thanking YouYours Faithfully,Arittra BasuUWL ID: 28001438Dated: 28/06/09
  3. 3. 3ACKNOWLEDGEMENT:I Mr. Arittra Basu would like to dedicate my master’s degree dissertation to my loving parentsMr. Asit Basu and Mrs Ratna Basu who has always supported and encouraged me throughout mylife and in my academic studies. They have always supported me emotionally and boughtcourage to my life which has given me the present platform to do my master’s degree fromUniversity of Wales, Lampeter. I am grateful to god for giving me such wonderful parents whoalways cared me and bought me up to become a proper individual in life. I would also like tothank Ms. Lipi Begum for supervising my dissertation and her assistance as a faculty hasimmensely helped me to produce my scholastic work. Lastly, I would like to thank all myfriends, fellow class mates and faculties in the College of Technology, London for showing methe light of management studies and making me a professional during the whole tenure of myMBA.
  4. 4. 4ABSTRACT:Purpose – The main purpose of this research paper is first, to gain a deeper understanding of thecelebrity endorsement strategy and consumers perception about it. What do consumers feel aboutcelebrity endorsements and where this marketing strategy lays when it comes to actual purchaseof goods and products? Moreover, when the world is heading towards a global economymultinationals and established brands are enhancing their prospects to market products in aninternational market. How effectively they can use the celebrity endorsement strategy. Secondly,to evaluate whether there is any cultural difference among the consumers from differentcountries and cultures? How companies face the challenge to convince consumers about theirproduct by utilising the celebrity endorsement strategy. These are the kind of questions evaluatedand analysed in the whole research.Research Methodology – A survey was conducted of 80 consumer samples (India and UK) andthe sample was chosen as ‘convenience sample’. They were approached about the research byusing online community networking website for Indian sample and for UK, questionnaire weredistributed to volunteering participants in the reception area of Ramada Ealing, hotel. They wereasked various questions about the impact of celebrity endorsement and consumer’s buyingattitude. Even cultural significance from consumers’ view point was taken into consideration.Findings – The data analysis of the research resulted in forming a positive and significantrelationship between the celebrity endorsement and consumers buying behavior. It has beenrevealed that consumers are attracted towards celebrity advertisements and it initiates the 1 stphase of the consumers buying cycle. (Pre-purchase dissonance) Also, the influence of cultureplays an important role in the recognition of a celebrity as described by the sample tested.Difference between Indian and UK consumers were also found from the analysis.Research limitations/implications – Results are based on limited and small sample. Differentlocations within UK and India would have constructed a better research design. There are manyscopes for further studies in this area concerning advertising and marketing relationships.Realistic implications – Celebrities are mere promotional tools used by the companies andbrands to attract consumers. Charisma of the characters doe’s appeals many people, but it doesn’tdemonstrate whether it fosters the sales growth. Culture plays a vital role in the human societyand it’s the fundamental basis to approach people (consumers) across the world.Originality/value – The paper has demonstrated the significance and importance of celebrityendorsement as promotional tool by examining consumers’ perception. Also it has given aninsight to the global marketing sector about the importance of understanding the culturaldifference to penetrate the market effectively.
  5. 5. 5Table of contents: Page NumberChapter 11. Introduction1.1 The topic…………………………………………………………………………………101.2 Background……………………………………………………………………………...121.3 Current facts about celebrity endorsements……………………………………………..151.4 Celebrity endorsement in Indian Advertisements……………………………………….181.5 Celebrity endorsements in UK advertisements………………………………………….201.6 Problem Discussion……………………………………………………………………...221.7 Rationale behind the research……………………………………………………………241.8 Purpose of the research…………………………………………………………………..251.9 Outline of the research……………………………………………………………….......25Chapter 22. Literature Review2.1 Celebrity Endorsements and its importance in Promotion Mix…………………….272.1.1 Pros and Cons of Celebrity Endorsement Approach………………………………….272.1.2 Meaning Transfer Model……………………………………………………………...302.2 The Process of Celebrity Selection……………………………………………………352.2.1 The TEARS model……………………………………………………………………352.2.2 The No TEARS Approach for celebrity selection…………………………………….38
  6. 6. 62.2.3 Celebrity endorsement and Cultural Dimension………………………………………412.2.4 Acceptance of Celebrity Endorsement based on Cultural Difference……………….. 442.2.5 Celebrity endorsements and ROI (Return on Investments)………………………….. 50Chapter 3 Page Number3. Research Methodology3.1 Purpose of Research…………………………………………………………………..533.1.1 Exploratory Research………………………………………………………………..533.1.2 Explanatory Research……………………………………………………………….533.1.3 Descriptive Research………………………………………………………………. 543.2 Research Approach………………………………………………………………… 553.2.1 Quantitative Research……………………………………………………………….563.2.2 Qualitative Research……………………………………………………………….. 563.3 Research Strategy…………………………………………………………………….573.3.1 The Survey…………………………………………………………………………...583.3.2 Designing of Questionnaire………………………………………………………….593.3.3 Principles of questionnaire construction…………………………………………….613.4 Data Collection Procedure and Analysis…………………………………………....623.5 Sample Selection……………………………………………………………………...633.6 Research Principle…………………………………………………………………....653.6.1 Construct Validity…………………………………………………………………...663.6.2 Reliability…………………………………………………………………………....66
  7. 7. 73.7 Logistical and Ethical Consideration……………………………………………….673.8 Summary……………………………………………………………………………..69Chapter 4 Page Number4. Data Analysis4.1 Data Collection Draft…………………………………………………………………….704.2 Data Analysis of Questions……………………………………………………………….724.2.1 Analysis of Close Ended Questions…………………………………………………….724.2.2 Analysis of Open Ended Questions……………………………………………………..86Chapter 55. Findings and Conclusions5.1 Consumers and Companies Opinion about Celebrity Endorsements as a PromotionalStrategy………………………………………………………………………………………..895.1.2 Repetition of Celebrities in Advertisements and Consumers Opinion…………………..905.1.3 Celebrity Endorsement and Cultural Significance……………………………………….915.1.4 Cultural difference between India and UK………………………………………………925.1.5 Meeting objectives of the Research………………………………………………………935.1.6 Implication for future Research…………………………………………………………..945.2. Emerged Model of Celebrity Selection from the Research…………………………….965.3. Cultural difference among consumers in (India and UK) model………………….......986. List of References…………………………………………………………………………...99
  8. 8. 8Appendix Number 1 (Questionnaire)Appendix Number 2 (Ethical Consideration Form)Appendix Number 3 (Data collection of the open ended questions)Appendix Number 4 (Email interactions between the student and supervisor)Appendix Number 5 (Letter of Consent from General Manager: Ramada London Ealing)List of Figures and Tables Page NumberFiguresFigure 1.1 Framework of the research………………………………………………………………26Figure 2.1 Pros and Cons of Celebrity Endorsement Strategy……………………………………...28Figure 3.1 The Meaning Transfer Model…………………………………………………………...30Figure: 4.1 TEARS model…………………………………………………………………..36Figure: 5.1 Factors essential for Celebrity and Brand Congruency……………………….39Fig 6.1 Geert Hofstede Cultural Dimensions of United Kingdom…………………………45-46Fig 7.1 Geert Hofstede Cultural Dimensions of India………………………………………46-47Fig 8.1 Cultural Dimensions accepted in India and UK……………………………………48Fig 9.1 Comparison between India and UK based on Geert Hofstede: Cultural Dimensions…49Fig 10.1 Research Strategies for different situations………………………………………..58Fig 11.1 Basic Principles of Questionnaire Design………………………………………….61Fig 12.1 5 Sources of Evidence: Strength and Weakness……………………………………62Figure 13.1 summarizes the different methods which are been applied in the research in adiagrammatic flowchart………………………………………………………………………69Fig 14.1 Population Participation of the research…………………………………………….71Fig 15.1 Division of age group of the sample………………………………………………...71Fig 16.1 Celebrities in advertisements………………………………………………………..72
  9. 9. 9Fig 17.1 Celebrities in media channels……………………………………………………….73Fig 18.1 Celebrity endorsement influencing busying behaviour of consumers………………75 Page NumberFig 19.1 Power of persuasion of celebrities………………………………………………….76Fig 20.1 Products ideal for having celebrity endorsement…………………………………..77Fig 21.1 Consumer appeals in terms of advertisements……………………………………...78Fig 22.1 Areas prone for celebrity advertisement……………………………………………79Fig 23.1 Preference of celebrities in advertisements by consumers………………………….80Fig 24.1 Percentage of repetition of celebrities in advertisements…………………………...81Fig 25.1 Consumers preference of celebrity advertisement in purchasing…………………...82Fig 26.1 Ranking of celebrity characteristics in an endorsement…………………………….83Fig 27.1 Line chart representation of the characteristics of celebrity from consumer survey…..85Fig 28.1 Model of Celebrity Selection………………………………………………………..96Fig 29.1 Cultural difference among consumers in (India and UK) model……………………98
  10. 10. 10 CHAPTER 11. Introduction:In this chapter the researcher has provided the readers an insight about the inception of theproblem of the research and has explained the history behind the problem with various facts anddocumentation which relates to the actual cause of taking celebrity endorsement as a topic ofresearch from global marketing perspective. Later in this research we will see the problemdiscussion followed by purpose of thesis writing addressing the research questions andhypothesis.1.1 The topic:The use of celebrities in advertising has been phenomenal since the inception of the advertisingmedia in the field of marketing. From decades many companies and world’s renowned brandshas taken the advantage of the using public figures in promoting their products to the consumers.Advertising being one of the essential tools of the promotion mix of marketing has played animportant role in the prosperity of the brands and portrayed them as consumable products to theconsumers from different aspects and cultural diversity of the world. However, it has beenobserved in the recent years with the modernization of technology and advancement in theadvertising media, advertising accounts to become a fundamental part for the success and failureof a particular product / brand for major companies and organizations. Advertising has capturedthe consumers mind and has psychologically influenced the buying behavior of the consumers. Ithas acted as a technique of selective vision for the consumer which has helped the brands tobecome associated along with the life style and cultural entity for many individuals. Consumerslike to get the notion of being associated along with the tangible and intangible aspects of thebrands and products. In a specific way it depicts the personality and attributes of the individual.Additionally, with the advancement in the field of consumable products and with invention ofmodern hi-tech technology there has been an increased state of competition in the market
  11. 11. 11globally and several companies came up with similar product offerings which created a big poolof developed products and goods with slightly modified attributes. Now, the challenge for themarketers arises when they are trying to establish their own brand in the market in order toachieve brand equity and market share.In relation to this subject there comes the importance of individual personalities and knownfigures of the society who portray specific images of them in promoting the products and goodsof the companies which gives them another dimension of association and catalyzes thepromotional mix of the marketing dynamics. However, as we study human psychology it wouldbe eminent from the behavioral characteristics of human beings that they tend to follow theirsuperiors in order to learn the behavioral attributes. The major example would be taken from thechild and parent relationship where the child always follows what their parents teaches them todo. It is to assume that they learn each and every element to become a proper human being fromtheir parental upbringing. Therefore, some get the good attributes and some get bad from theirparents. Similarly, in the consumer world the consumers do follow certain personalities anddistinguished people to purchase goods and products as they carry emotional traits which aresimilar to certain consumer’s nature and behavioral characteristic. They find their owndistinctiveness within these personalities and enjoy the relationship of using those productsendorsed by them. These personalities or characters are defined as celebrities in the societalterms and they not only belong from the tinsel world of glamour but also from other sectors likesports, academics, business giants, politicians and even entrepreneurs.But the question arises why these characters become a subject of attention from the public andget huge response over their activities. Needless to mention that with their achievement inspecific field the celebrities also gain a lot of power and prestige in the society which acclaimsthem to be personified figures and the clever marketers use them in their promotional mix toutilize their power of persuasion to convince consumers for purchase. However, in the 21stcentury it has been observed that the involvement of celebrities into the marketing activities ofvarious companies has risen enormously. The main objective of the research is to find out thereason behind celebrity endorsement and why do companies do that. Is there any benefit whichthe companies attain through it? If they want to target different market across the globe do theyhave to follow the same strategy or they need to redefine it. Moreover, it has been observed that
  12. 12. 12celebrity endorsement is very popular mode of marketing in India rather than in UK where theeffectively of the product/goods are considered more by the consumers than endorsement andeven if there is an endorsement of any product the companies rather do it very intelligently asconsumers are intrinsic in nature. In order to do the research a comparative study about theconsumers from UK and India has been taken as sample.1.2 Background:The world economy has become a global arena, where each and every activity of the trade isimitable by the rest of the world. What is happening in the recent economic crisis situationthroughout the world is just an evidence to prove the phenomena that recession has not onlyeffected the western world but all the developed, underdeveloped and emerging economies of theworld as businesses has become global and are operating in every parts of the world. So theadverse effect or the privilege of operating a successful business is experienced by all. In termsof enhancing a company, a brand or a product to a particular target audience marketers play avital role. On the other hand side it is not a case of miracle to convince consumers in this highlyintrinsic and inquisitive society where people are considerably rational about their buyingbehaviour. Consumers are not living in a fool’s paradise and the conventional phenomenon ofruling the market from a companies offering and perspective is no more pertinent. Nowconsumers are giving the verdict or opinion about what they want from companies and in orderto survive in the market all major industries have to accept the judgement. [Haugtvedt et.al.(2008) in Basu (2009: unpub)]However, marketers are very clever to nurture with the emotions and psychology of theconsumers and they always initiate the phenomenon of buying into the grey matter of the overeloquent society with the help of advertising. Moreover, advertising is a weapon which themarketers use to dominate the consumers attitude towards a specific brand or product.Additionally, advertising principles are based on certain theories of consumer psychology whereuses of different kinds of messages with expressions are highly recognized. [Brook and Green(2005) in Basu (2009: unpub)] Kambitsis et.al. (2002) suggests that advertising has becomeimportant to the contribution and development of the society in the early era of 1930’s.Celebrities and known faces have taken the role of spokesperson to advertise and promote
  13. 13. 13goods, services and ideas for various companies and organizations. They came from all facet ofthe society after claiming their identity as personified person from the public and belonged fromglamour world of movie, modeling, arts and even sports background. But when it comes down topromotion an important role has been played by the use of testimonials in marketing. Accordingto theory of advertising, testimonials are considered as promotional tools which are also knownas endorsements. But both testimonial and endorsements carries different meanings in theapplication, where the former is often used to strengthen ‘sales pitches’ for general mass andconvey messages to a larger community and the later take into account the use of ‘celebrities’ incommunicating the message. An endorsement essentially consists of a well written document orstatement of a person who has a public image or a personality of a charismatic leader whosework or contribution to society has been recognized considerably by the community and theirapproval of the product or brand significantly improves the promotional aspect and buying trendof the product or services. [Heath (2004) in Basu (2009: unpub)] This phenomenon has beenprominent since 1893, when British actress Lillie Langtry was portrayed on the package ofPears Soap and thus she became the world’s first celebrity endorser. Though, in thosegenerations the advertisers used celebrities in their campaign to address the consumers about thecurrent trend. (Ibid).Moreover, Tellis (1998) asserts that endorsers of products can be classified into three broadgroups; as in experts, lay endorsers and celebrities. Generally, experts are those people who havespecific knowledge in a particular field and they use their expertise to promote the product/goods of the company. Experts are chosen by the marketers because they have gathered a soundknowledge about the product and the usage of the item through learning, training or experience(Ibid). An example of showing the approval of Oral-B brand by the British Dental HealthFoundation claiming it as an expert’s authority to endorse it as a quality product in dentalmaterial enhancing the credibility of the product. [(www.oralb.com) in Basu (2009: unpub)]Additionally, Tellis (1998) suggests that there is another segment of endorsers who are fictitiouscharacters or rather unknown individuals or characters known as ‘lay endorsers’. They arechosen by the marketers based on the target market they wanted to capture and there are certaincharacteristics of these endorsers which are similar to the target audience which eases the processof identifying the endorser and the message communicated by the companies. Example would be
  14. 14. 14taken from the anonymous voice-over in video and audio advertisements which often uses layendorsers to promote the products.However, Shimp (2000) talks about another form of endorsement which is similar to the layendorser concept of Tellis, but instead of using voice, typical individuals are used in thissegment. Shimp (2000) asserts that individual endorser’s are inexpensive than that of usingcelebrity marketing techniques and avoid the conventional biasness of using ‘beautiful people’with physical attributes or individual characteristics which are rather identical in advertisingmedia. Shimp (2000) also suggests that adverts which uses person endorsers includes severalpersons rather than singular ones with the intension that multiple number of endorsers willgenerate higher levels of message involvement and in the same way would create greatermessage circulation. This technique creates a mind block in consumer’s mind and starts showingfavorable attitude towards the brand/ product (Ibid).On the other hand use of endorsements is not only limited to celebrities or experts butconsumers are also endorsed by the brands to reflect the understanding what consumers aregoing to get from the use of the product demonstrating the rational judgement of a commonperson. Using consumer endorsements specially targeting necessity commodities and famousproducts or brands are having substantial benefit for the product as it relates to everyday personand a consumers can imagine him / her in that person which is another way of playing withconsumer psychology. [Perle et.al. (1999: A99) in Basu (2009: unpub)]Subsequently, there is a rational aspect of using celebrities into the endorsement of a product. Ifthe products can be classified as technical (e.g. PC’s) or non-technical (e.g. jeans) then usingcelebrities in a technical product is less substantial than using them in non-technical products. Itis to relate to the rational aspect of evaluating the use of the product, where technical product areused by all consumers coming from every aspect of the society and in such purchases showingsomeone reliable preferably a technical person or common users are more effective. Theirconnotations are highly recognized and valued by the consumers whereas in the use of non-technical products the use of celebrities are of high importance as it associates the brand nameand image of the person along with the product. People tend to perceive a delineation of a
  15. 15. 15personified figure into the brand and gets the association of being recognized as part of the cliquesummoning the celebrity as a captivating leader. [Leon et.al. (2008:328) in Basu (2009: unpub)]1.3 Current facts about celebrity endorsements:McCracken (1989: 311) states that Celebrity Endorsement is defined as: “any individual whoenjoys public recognition and who uses this recognition on behalf of a consumer good byappearing with it in an advertisement” Moreover, celebrity endorsement has become anomnipresent factor in the global arena of modern marketing and is recognized worldwide in thefield of marketing and advertising (Ibid). In toady’s word of modern hi-tech media celebrities areused in all the communication channels like Television, Radio, Internet, Publications etc and avivid presence of TV actors, movie stars, sport personalities and even dead celebrities areobserved into the marketing campaign of various companies. (Shimp, 2000) However, Kambitsiset.al. (2002) asserts that the use of celebrities in advertising has been associated along withseveral complexities involving the celebrities individual life-style and claims the process to berather sophisticated marketing technique than mere promotional agenda. Marketers around theworld in various established organizations spends a huge amount of money annually on celebritycontracts for their products and it is an established belief among the marketers that celebrities areefficient spokesperson for their products / brands. Another, important verity described by (Belch& Belch, 2001) is that from 1979 to 1997 the popularity of celebrity endorsement has risen from15 to 25 % in USA and in present 21st century more than 20% of all TV commercials around theworld feature celebrities in advertisements. According to (Forbes 2003) in the year 2003 actressJennifer Aniston has been ranked the No. 1 celebrity for endorsing various products forcompanies and brands followed by Rapper Eminem and Dr Dre in the 2nd place and in the 3rdplace Comes Tiger Woods who has got a contact with Nike worth $105 million. This data provesthe fact that how companies are spending a huge block of money on their marketing budgetespecially when it comes to endorse celebrity for product branding.Moreover, (Mowen & Brown, 1981) asserts that marketers also rely on multiple celebrityendorsement as an advertising practice where they target more than one celebrity to endorse theproduct / brand. Examples of companies who are involved into this practice are Pepsi, Coke andNike who have introduced this technique into their advertising campaigns. Most important
  16. 16. 16practical illustration of the above tactic has been found in the “Milk Mustache” campaign in theUSA where they have engaged more than 100 celebrities for the promotion of milk since 1995.Subsequently, previous research from scholars proves the fact that while considering celebrityendorsement the ‘thumb rule’ is to consider whether the characteristics of the product matcheswith the profile of the endorser as this tie-up acts as an effective mode of communication. (e.g.Kahle and Homer, 1985; Kalra and Goodstein, 1998; Kamins and Gupta, 1994; Misra andBeatty, 1990; Sengupta et al., 1997; Till and Busler, 1998)Additionally, multiple celebrity endorsement has positive impact on the consumers as itinfluences their behavior. As described by the attribution theory, people summon that the causeof certain events in their life is influenced by their own behavioral acts or is affected by thebehaviors of others around them. From celebrity endorsement perspective it could be analyzedthat consumers receive the message of the endorser based on the fact that he / she actuallybelieves in the qualities and effectiveness of the product (internal attribution) or they are paid tosay so (external attribution) Although, consumers do acknowledge consensus voting about thesame which acts as credit for the marketers and they tend to view the product from endorsersperception. (Kelley, 1967)However, another interesting phenomenon which has come across in the marketing agenda ofcompanies having less resources and financial flexibility is bringing in sports personalities intothe marketing campaign to promote their products. As, most of the companies have consensuallyagreed that celebrity endorsements has become a distinguished part of the promotional drive,therefore for companies having limited budgets endorsements of sports and athletes has turnedout to be potentially viable investment than endorsing named celebrities. (Martin, 1996)Moreover, there are certain general objectives which are expected to be accomplished by theendorsers of any brand. They are as follows:• Capturing consumer’s attention.• Building up the brand name.• Strengthen the brand image of the product• The endorsed message should be plausible.• Adding charisma to the endorsed product.
  17. 17. 17• Creating a liking for the advertisement and add recall by consumers.• The prospect of having amplified sales from the campaign (Ibid).On the other hand Jagdish and Wagner (1995) illustrates that celebrities enhance the potential ofhaving the advertisement recalled by the target audience because of their persuasion power. Theyalso enrich the possibility of having positive brand recognition for the product, create a positiveattitude of the consumers towards the brand, catalyze brand consumption among the consumersand construct the identity of the celebrity along with the endorsed brand / product. Furthermore,celebrity endorsement has become an integral part of the advertising strategy for manycompanies as it increases the marginal expenditure of the marketing budget but gives a hugereturn on investment by creating brand equity with the association of “secondary association”of a celebrity with a brand (Ibid).Another facet of the celebrity endorsement is the technique of using them by the companies. Till(1998) mentioned that companies uses the celebrity endorser into their adverts either periodicallyor opportunistically based on the situational requirement of the person in endorsing the productcampaign. From another perspective it would be assumed that the return on investments fromcelebrity endorsements could be dynamic if the celebrity is used by the brand often to endorsethe product. The repetition of the celebrity into the adverts strengthens the association of thecelebrity along with the consumers as many already know the endorser and the rest would cometo know from the previous group’s association. It also creates awareness about the brand andcelebrity among the consumers. Subsequently, the caution is that marketers should maintainstability in endorsing the same personality into the brand which they have endorsed earlier asunexpected fluctuations among the endorser generates a negative association of the brand andsimultaneously fades the possible outcome from the endorsement. (Till, 1998)Some of the example would be taken from Nike’s consistent use of Michael Jordan, Armani andDavid Beckham, Penelope Cruz and L’Oreal. In all the above cases the advertisements hasencouraged the consumers to think about the perfect symbiosis between the product and thepersonality which signifies that all the characters later became intangible element of the brand.(Ibid). If we take the example of different media channels it would be more prominent likeL’Oreal brand uses the celebrity film stars and international models to endorse their shampoos
  18. 18. 18and cosmetic ranges using the universal pay off “because I am worth it” which a patent versionof their testimonials used by the endorsers conveying the message to the consumers that if beinga celebrity if the product works on being my beauty secret why not for you. [Mooiji (2005)]However, Jagdish and Wagner (1995) describes that though from investment perspectiveendorsing a celebrity into the marketing campaign of a company is expensive and accounts ahuge involvement of money and networking, but simultaneously is a very effective medium toget a brand attention in the competitive market. It helps the companies to get their product/ brandidentified by the consumers because of the relationship which both the celebrity and brandcarries in the societal structure. Endorsements are rather classified as good technique to maintaina continual flow of stocks as it enhances the consumption making the investment worthwhile.But potential threats of associated risks are not to be eliminated as association (positive /negative) both have certain impacts on the product / brand.1.4 Celebrity endorsement in Indian Advertisements:However, in order to do a research about the impact of celebrity endorsement in marketing andadvertising media and considering this phenomenon as a major tool of promotional mix byvarious organizations of the world, it is very important to do a comparative study betweendifferent countries to exemplify the impact of celebrity endorsement among the consumer’s ofdifferent cultures and their perception towards the association of a product, service / brand alongwith celebrity attachment. Therefore, for the purpose of the research India has been chosen acountry of research and the current facts about celebrity endorsements in India is demonstrated inthis section to give the clear understanding of the country’s position in relation to celebrityendorsement.Chaturvedi (2008) talks about the impact of celebrity endorsement in India during one of thecountries major movement for Polio eradication which has portrayed numerous celebrities ofthe bollywood banner to communicate with the common mass and publics of India throughtelevision ads, friendship cricket matches, awareness programmes, rallies etc. Some of the majorknown celebrities who have done television and media shots for the polio campaign are PrietyZinta, Rani Mukherjee and Priyanka Chopra. Even famous actress and Miss World 1994
  19. 19. 19pageant winner Ashwarya Rai and Tennis player Sania Mirza have done print ads for the samecampaign. Moreover, to generate awareness and literate the Indian mass about the importance ofPolio vaccination a wide spectrum of celebrities were approached to endorse the immunizationprogramme and various television spots were prepared and telecasted in the National andterrestrial channels in the television throughout India. (Ibid.)Additionally, the impact of cricket as a sport in India has a huge response from all aspects of thesociety and various community people and in that relation a ‘Friendship Series’ between Indiaand Pakisthan was organized in April 2004 to raise awareness for the Polio Immunizationprorgamme where the captains of 2 cricket teams urged the people to “Bowl out Polio”.Similarly other important celebrities were also approached to do awareness rallies and direct visitto the household to intensify the magnitude of the programme. Farooque Sheikh, an exBollywood actor who has substantial knowledge about Koran addressed the Muslim prophet nadreligious leaders about the importance and validity of the campaign. Javed Akhtar, a script andsongwriter for bollywood films, Sharmila Tagore (ex actress) and Soha Ali Khan (a newcomer in the tinsel world) also did direct home campaigns where they visited the household ofcommon people in particular areas of India to justify the essentiality of the programme andcommunicated the message to the mass. (Ibid.)Another important aspect of celebrity endorsement in India is observed in the ‘Cola Wars’where the major concern comes for all the fizzy drinks company is to create price sensitivity. Asmost of the cola ads are endorsed by popular bollywood celebrities like Sharukh Khan, AmirKhan, Akshay Kumar etc and have glamorous associations which shows the association of thedrink along with the position and celebrity predilection. However, considering the price perbottle was a challenge as most of the companies endorse similar people and Coca Colaimplemented a strategy where they reduced 300 ml bottle to 200ml bottle and sold it in INR 5equivalent to 7p in GBP and $10 in US which benefitted Coca Cola to rule the market for a shortterm, with the celebrity influence to purchase smaller bottles in a cheaper price as the ads werefocused on the price of the bottle than other aspects of the drink. (Amis & Cornwell, 2005)On the other hand there are current facts about celebrity endorsements in India whereinternational companies have endorsed bollywood celebrities for their product launch in India.
  20. 20. 20Some of the references would be taken from the endorsement of bollywood superstar SharukhKhan as the brand ambassador of Swiss watch maker TAG Heuer, a part of LVMH Watch andJewellery. As per Jean Christophe Babin, president and CEO of LVMH Watch and Jewellery thecompany has plans to open 4 more outlets in Bangalore, Chennai, Mumbai and Hyderabad andthe brand ambassador will involve in the marketing of the new models of watches of thecompany in India. Being the brand ambassador Sharukh Khan commented that the watch hasalways stood for luxury, style, prestige and exception and in India the brand will enhance itsmarket creating its association along with the pristine society. (9th September 2003)As a celebrity Sharukh has also endorsed another Swiss watchmaker Omega before gettingassociated along with TAG Heuer. However, TAG Heuer has also endorsed bollywood actressPriyanka Chopra (Ex Miss World 2000) as a brand ambassador for ladies collection in Indiaand has replaced Susmita Sen from the TAG banner. TAG has always represented glamorousfigures to execute the brand to the world and in India as well they have targeted the celebrities tomaintain the consistency of supremacy of the brand. (16th March 2007)However, the world famous brand of fizzy drinks Coca Cola has also endorsed actor AmirKhan as a brand ambassador of coke in India and has made several Indian ads featuring Amir invarious cultural perspective portraying the Indian eccentricity in different regional culturesprevailing in different states in a humorous version.1.5 Celebrity endorsements in UK advertisements:In compare to India the impact of celebrity endorsements in the advertising and marketing ofproducts / brands in UK are entirely different as seen superficially from a common observation.In UK particularly the adverts are made according to the effectiveness and usage of the productto the general mass and celebrity endorsements are rather limited than its generous use in Indianadds. In UK as well there are several organizations who endorse celebrities from differentbackground and societal structure than using them from the world of glamour. Example wouldbe taken from using Chef Jamie Oliver in the advertisement of grocery retail supermarketSainsbury where they show Jamie endorsing the Sainsbury products and certify that theirproducts are best for cooking and as raw ingredients. Celebrities in UK are rather classified into
  21. 21. 21several categories as companies choose them according the fame of popularity in the publicindex. They can be chosen from sports world, glamour, television or from recent scandal as well.Taking the reference of Late. Jade Goody who died of cervical cancer was pointed out as one ofthe characters of arousing racism in a celebrity lifestyle television show Big Brother where shewas accused of doing racist behavior to one of her contestant (Indian actress Shilpa Shetty) byabusing her in public media. This particular event captured a lot of media attention in UK andagain ignited the fire of white vs. brown in UK mass. But with the sudden discovery of herhaving cervical cancer grabbed the attention of the Britons and she got the sympathy of thecommon public from UK and her previous behavior was rather substituted for her illness.Though she had to beg apology but her terminal cancer gave her the fame and the NHS made hera role model of creating awareness among the young women in UK about cervical cancer. Wellit could be described that she turned out to be the person from ‘ashes to gold’ but women in UKhas recognized her as a person who has shown the female Britons about the danger of havingcervical cancer and a positive impact for cervical cancer checks among the women as recordedby NHS.Subsequently, there are other adverts in UK where presences of celebrities are also noticed. Butas UK and US both follows Hollywood film stars therefore the ads of UK also depicts celebritiesfrom US as a vast majority. But there are few adverts where domestic celebrities are seen asbeing an endorser. Some of the examples would be taken from ‘Cadbury’s Milk Tray’magazine advert where Laura Bailey was endorsed for the marketing of Cadbury’s product in1998. Cadbury has also endorsed the television personality Mat Lucas for the marketingcampaign of ‘Cadbury’s Crème Egg’ in 2000. However, there are also certain facts where 2major brands like Cadbury’s and MTV – (chart numbers and pop songs hit channel) jointly madea marketing campaign to promote free live musical events for the popularity and promotion ofboth the brands. For this campaign they endorsed Five, 5ive, Ritchie Neville, J Brown thesingers to promote Cadbury’s as well as MTV to the young audience.[www.advertisingarchives.co.uk]However, there are brands and companies which have endorsed celebrities for their marketingcampaign and the current data about their endorsement policies depicts the phenomenon thatthey not only choose celebrities from the glamour world but from all other business entities.
  22. 22. 22Walkers endorsed celebrities Cat Deeley and Garry Lineker for their marketing campaign in2009, Moneysupermarket.com endorsed entrepreneur and Dragon Den’s Peter Jones forpromoting their price comparison website and L’Oreal endorsed actress Jane Fonda for theircosmetics and skincare range which emphasized on antiageing and ageing wrinkles skin care.Even the royal family was endorsed into magazine adverts which were reflected in the coverpage TV Times magazine, 1981 following the wedding of Prince Charles and Princess LadyDiana. Princess Diana appeared back in the cover page of Woman magazine after the birth ofPrince William in 1982. Even sport celebrities like Ian Botham, Andrew Freddie Flintoff,Tiger Woods, Thierry Henry, Roger Federer were endorsed into several consumer goods andmostly into men’s skin care products and sport shoes from companies like Gillette, Suremanand Nike. Interestingly, in UK politicians are also endorsed by companies and recentlySchweppes endorsed Prime Minister Gordon Brown in their Magazine Advert. Also prestigiousbrand for men, Dunhill has endorsed actor Jude Law for their newspaper advert in 2009.Surprisingly, the Dorchester Collection of Hotels used personalities like Grace Kelly, AlbertEinstein, Kristin Scott Thomas and Orson Welles in their 2009 magazine advert, who wereonce associated along with the hotel in her glorious past. [www.advertisingarchives.co.uk]1.6 Problem Discussion:Bryne and Breen (2003) claims that studies and researches in the field of consumer behavior andmarketing shows that celebrity endorsement have positive impact on the purchasing behavior ofthe consumers than non celebrity endorsers. Moreover, McCracken (1989) suggests that celebrityendorsements are effective ways of transferring the association of the personality to the brandand is highly recognized by the marketing community of international organizations. Bryne et al(2003: 289) states that “celebrities can build, refresh and add new dimensions. What celebritiesstand for enhances brands and they save valuable time in terms of creating the credibility acompany has to create in order to build its brands by transferring their values to the brand.When consumers see a credible celebrity endorsing a product they think the company must beOK”Moreover, in this research the specific problem which has been observed by the researcher isrelated to the difference in endorsing celebrities into the advertisements in India and UK. After
  23. 23. 23evaluation of the advertisements of both the countries it has been reflected that in India theprominence of celebrity endorsement are more from the tinsel world (Bollywood) of glamourand in all types of product endorsements the companies are eager to get a Bollywood celebrityenrolled into the advertisements rather than endorsing other personalities from any other sectors.On the other hand in UK it has been observed that companies are eager to endorse thecelebrities / personalities into the advertisement campaign of the product or brand based on theeffectively and practical realization of the advertisement in the societal structure. For example,L’Oreal hasn’t endorsed Deborah Meaden (entrepreneur) and Dragon of Dragon’s Den Show(BBC 2) as a celebrity endorser to promote their cosmetic range for women orMoneysupermarket.com has not enrolled Penelope Cruz to promote their price comparisonswebsites. In contrast it has been observed in India that domestic Banking and financial sectorgiant ICICI bank has endorsed actor Sharukh Khan to promote the banks financial and NRIbanking facilities in the form of television adverts. Moreover, celebrities in India endorse alltypes of products from cosmetics, fizzy drinks to National Polio Vaccinations programme wherethe presence of Bollywood personalities are in abundance.According to Bryne et al (2003) most of the companies face the problem while choosing theright personality/celebrity for their product endorsements. It is the responsibility of theadvertisers within a specific company to be able to match the company’s image or product imagewith the personality of the celebrity and the characteristics of the target market to establisheffective messages for the consumers. McCracken (1989) state that endorsements are moreeffective when there is a ‘fit’ between the endorser and the endorsed product. Subsequently,Martin (1996) illustrates that in order to achieve maximum outcome of a celebrity endorsement itis very important to consider the degree of similarity between the image of the celebrity and theimage of the product. The more is the similarity in association between the image of the productand the celebrity, the more positive response from the consumers which leads to purchasingintension of the product. (Ibid).On the other hand Tellis (1998) identifies that companies should concentrate in building up aprolonged relationship between the product / brand and the celebrity (long-term relationship) asit helps the company in designing its strategic goals and objectives in relation to theestablishment of the brand and maintaining a clear and consistent brand strategy over time.
  24. 24. 24Bryne et al (2003) argues that maintaining a long tern relationship with a celebrity in anendorsement campaign for a company remains challenging because there is no harmony,between the product and the celebrity and in reality the consumers recalls the celebrity more thanthe product. This is termed as “Vampire Effect”, in marketing terms which signifies the fact thatcelebrities sucks out the ‘life blood’ from the product / brand (Ibid).1.7 Rationale behind the Research:The researcher has chosen this topic as a matter of subject for the dissertation of his MBAfollowing the creation of the problem area which has been observed by the researcher whiledoing the term 2 (MBA) assignment of IMC (Integrated Marketing Communication). The topicgiven by the University was to discuss about impact of testimonial advertising by the advertisersand marketers comparing its advantages and disadvantages. While doing the research for theassignment it has been found by the researcher that there is a distinction between the ways ofcelebrity endorsement in India and UK where the former is having greater affinity towardscelebrity (Bollywood Stars) endorsements in media ads and consumer goods of all genreswhereas in UK the endorsement is based on the credibility of the endorser and their associationalong with the product / brand they are endorsing. Even in UK personalities are endorsed into theadvertisement from various backgrounds and not only from the glamour world. In UK thecompanies are more concerned about matching the profile of the product along with thepersonality and expertise of the endorser. Therefore, they chose various people who haveacclaimed recognition from the society due to their success and achievement in different sectors(sports, business, acting, modeling, politics etc.)However, the interesting constituent of the research is to establish the fact for internationalorganizations who are considering India as a prospective market for expanding their business andwilling to invest in the huge market, is to portray the scenario that they might have to changetheir advertising technique considering the importance and existence of celebrity influenceamong the consumer life-style of general public in the Indian community. Therefore, acomparative study between India and UK has been done in this research based on the consumerpreference of celebrity endorsement in the advertisement of various products in both countries.
  25. 25. 251.8 Purpose of the Research:Through the analysis of previous studies and academic research on consumer behavior it hasbeen observed that celebrity endorsements in the advertisements of goods for particular brandsand companies enhances the purchasing behavior of the consumers. Even studies have alsoestablished the fact why companies are in a row to endorse celebrities and how they do it and forwhat objectives? But the segment which has not been researched is the distinction about the wayof endorsing celebrities into different cultures (e.g. western and eastern) where some celebritieshave greater influence than the others. The purpose of the study is as follows:Showing the influence of celebrity endorsements in the marketing campaign of brands / productsand significance of culture in the recognition of a celebrity by consumers’ from various culturesacross the world. Also creating awareness for the probable organizations trying to becomeglobal corporations.1.9 Outline of the Research:The dissertation is a specific research project which is done by the post graduate students ofmaster’s degree and higher studies. As, dissertation is a research process therefore it is veryimportant to consider the structure of the research in which it is going to be drafted in theory. Inthis specific research the dissertation is divided into 6 sections starting from the introduction ofthe topic and background analysis. The 1st chapter illustrates about the cause of taking the topicas a research agenda. The 2nd chapter is the literature review where various consumer behaviorand advertising theory models and previous literature about the research area are analyzedcritically. Main emphasis would be given to the models which organizations follow to endorsecelebrities into product / brand campaign and hence structuring a strong reference of academics.The 3rd chapter would reflect the research methodology of the research followed by the datacollection techniques in chapter 4. In chapter 5th the data gathered is analysis in reference withtheory and academic models with quantitative and qualitative data analysis. Lastly, chapter 6 is adiscussion about the conclusion and findings which the researcher gathered out of the researchand individual recommendation suggestion.
  26. 26. 26 INTRODUCTION – CHAPTER 1 LITERATURE REVIEW – CHAPTER 2 RESEARCH METHODOLOGY – CHAPTER 3 DATA ANALYSIS – CHAPTER 4 CONCLUSON AND FINDINGS- CHAPTER 5Figure 1.1 Framework of the research Source: (Basu: 2009) Author’s creation CHAPTER 22. Literature Review:In the previous chapter the researcher has discussed about the current facts of celebrityendorsement and illustrated the cause of doing the research about the impact of celebrityendorsements in India and UK. This chapter will narrow down the research area to the specific
  27. 27. 27objectives with critical discussion of theories and models. The chapter will entail theories like:Pros and Cons of celebrity endorsements, Meaning transfer model, Cultural dimension aboutcelebrity endorsements, TEARS model, no TEARS approach strategy and Investment returns oncelebrity endorsements.2.1 Celebrity Endorsements and its importance in Promotion Mix:This section of the thesis will demonstrate the theories which support the phenomenon ofendorsing celebrities by various organizations worldwide along with the illustration of theories.A critical discussion of the academic models will add value to the research and would establish afirm grounded theory.2.1.1 Pros and Cons of Celebrity Endorsement Approach:Erdogan (1999) suggests that the academic research and annual reports of companies about theschema of celebrity endorsements clearly states the effectiveness of celebrity endorsers as apromotional strategy than non celebrity endorsers. While evaluating the universal thought aboutcelebrity endorsement it has been observed that there is a higher affinity of organizations behindcelebrity endorsements as it nurtures the consumer’s attitude towards endorsed brands andproducts which supports in the purchasing behavior and results higher sales in terms of quantity.Moreover, desirable outcomes are preferable by companies when they endorse celebrities havingpublic consensus and their personality matches with the product profile and the target clientelethan celebrities who have never been endorsed (Ibid).Although there are potential benefits of using celebrity endorsements in the advertising,marketing and promotion of products / brands there are certain risks associated along with thecost of contracts. Moreover, Erdogan (1999) explains about the advantages and disadvantages ofcelebrity endorsements and even if while companies are using celebrities as endorsers, heillustrates a table showing the benefit of this strategy along with suggestion of preventivemeasures for the organizations.Figure 2.1 Pros and Cons of Celebrity Endorsement Strategy:
  28. 28. 28 Potential Advantages Potential disadvantages Preventive tactics Increased attention Overshadow the brand Pre-testing and careful planning Image polishing Public controversy Buying insurance and putting provision clauses in contracts Brand prologue Image transformation and Explaining what is their role overexposure and putting clause to restrict endorsement for the brand Brand repositioning Image change and loss of Examining what life-cycle public recognition stage the celebrity is in and how long this stage is going to exist in future Strengthen global campaigns Expensive contracts Selecting celebrities who are appropriate for global target audience, not because they are ‘hot’ in all market audiencesSource: Erdogan (1999, p. 295)Moreover, Erdogan(1999) illustrates that with the invention of new products the consumermarket has become very competitive and the companies are in a row to compete with each otherfor establishing their brand. Thus they are taking the help of celebrity (media stars) attention toassist the marketing of their products. Additionally, with the advancement in the field oftechnology and with entrance of digital TV, Video control systems, internet and satellite TV, 3Dmedia effects, internet advertising etc. the consumers were bombarded with overpoweredadvertising from various channels and advertising media became more challenging sector thanbefore (Ibid). On the other hand the companies have discovered that with celebrity attention intheir product advertisements these potential threats from modern technology can be minimized toa certain extent. From a general perspective celebrity endorsement in any product creates anattention for the consumers and an unrevealed biasness of curiosity which makes this strategymore favorable for the organizations. Furthermore, Erdogan (1999) argues that celebrityadvertisements stand out of the clutter from similar product advertising. Subsequently, celebritiesalso catalyze the communication process and eradicate the excessive noise of the communication
  29. 29. 29from the surroundings which improves the process of sending the message of the product to thetarget audience.In contrary, there are certain difficulties which the organizations face while entering into globalmarketing of their products and the massive barriers comes from the foreign markets due to thecultural ‘roadblocks’ from various countries in the form of time, space, language, relationships,power difference, masculinity, femininity (Ibid). E.g. the Indian culture of collectivism vs.individualism in U.K. for which many companies operating in UK has to understand the culturalbackground of India in order to sustain business and enhance operation in India. People in Indianculture are more prone to accept what the society accepts as a whole even if there are certainvariations but they all obey the cultural consensus, which in UK is entirely different andconsumers here are more intrinsic in nature. Erdogan (1999) defines ‘celebrities’ as a powerfulweapon of promotion and conviction while entering the foreign markets as there are manycelebrities whose popularity is wide spread and the publics in those nations accept theirrecommendations. But there are risks associated with celebrity endorsements as well and thechallenge for organizations is to maintain the harmony due to the celebrity image incongruity,drop in popularity, celebrity involvement in events of ethical turpitude and loosing credibilitydue to over endorsements in products / brands (Ibid). Culture Endorsement Consumption2.1.2 Meaning Transfer Model:McCraken (1989) describes the process of endorsement through his model of meaning transferwhich has a comprehensive description about the phenomenon. The focal point of meaningtransfer model states that if the celebrity is utilized appropriately they encode positive set ofmeanings which can be transferred to the endorsed product. The model is divided into 3 sections:culture, endorsement and consumption.Figure 3.1 The Meaning Transfer Model Source: McCracken, 1989, p. 315 Key: Path of meaning transfer Stage of meaning movement
  30. 30. 30Objects CelebrityPersons Celebrity Product Product ConsumerContextRole 12 Stage 13 Stage 2 Stage 3 Stage 1: Culture McCraken (1989) illustrates that celebrities are different from that of anonymous models or actors and organizations invest huge amount of money on celebrities to bring value to the advertisement. They convey extra amount of depth and power of persuasion which is carried over as a message to the consumers. It is a matter of common sense that advertisement carries out messages to the publics and thus they serve the purpose of meaning transfer from the commodity to the usability of the product. But it has been observed that organizations are deeply indulged into endorsing celebrities into their marketing campaign in spite the fact that they are expensive to maintain and are taking most of their marketing budget. Now the question arises why do they do it? What benefit they have got in doing celebrity endorsements than endorsing a local star or popular personality (anonymous professionals)? How a celebrity endorsement adds
  31. 31. 31value to the meaning transfer model? What are the attributes of a celebrity endorsement inrelation to marketing campaign and association with culture? Are there any special featureswhich the celebrities bring in to the product campaign which influences the consumer behaviourtowards the brands / products?On the other hand Bergstrom and Skarfstad (2004: unpub) suggests that anonymous actors andmodels presents demographic community in the form of gender, age, status and symbols whichare relatively indistinguishable and vague in carrying meaning to a specific culture due to lack ofpopularity and recognition. Celebrities offer all these attributes with the verity of a special life-style that anonymous models cannot offer and they break the communal barrier with the act ofexactitude. Each celebrity carry a unique constitution of meaning due to their association withinthe community and social power which companies cannot get from the anonymous models /actors. Moreover, it is quite certain that celebrities are more powerful endorsers than that ofanonymous actors / models. Though they also bring in meaning to the any endorsements but theirpower of persuasion is considered limited in compare to celebrity endorsements as celebritieshave a wider circulation of identity and thus they receive consent from various communitiesthroughout the world. Celebrities also transfer the meanings of their association to the brandwith great radiance and accuracy creating a long term acquaintance with the product which theyhave developed from their re-appearance and intense participation.Interestingly, Bergstrom and Skarfstad(2004: unpub) discusses that celebrities gather themeanings of a powerful persona from their characters which they act in television, movie,athletes, politics, sports and other careers. These specific roles which they perform give them theopportunity to associate with various ranges of objects, persona and context which remains withthe celebrity and are reflected in the advertisements making a meaning transfer from a characterto the product / items.Stage 2: EndorsementSubsequently, the 2nd part of the meaning transfer process is endorsement where the celebrity andproduct are major variables and the meanings are transferred from the celebrity to the productmaking it a real endorsement. McCracken (1989) suggests that selection of a specific celebritybased on their characteristics is a challenging task. Advertising agencies choose the celebrities
  32. 32. 32based on the criteria that which kind of the characteristics the consumers are looking for from theproduct / brand and who are the celebrities making a ‘close fit’ in that quality circle forendorsement. Selection of the celebrity also takes into account the financial viability of thecampaign.McCracken (1989) after celebrity selection the probable expectation would be that theadvertising should identify the necessity of bringing the celebrity association to the product.However, care must be taken in this process as the celebrities carry a lot of meanings along withthem but the advertisers should understand the ‘perfect match’ of the celebrity and productassociation eliminating the vague aspect of culture instead concentrating on the specific objectiveof the endorsement. Hence, to satisfy the process the advertisers uses people, objects, contextwhich are parallel to have same meaning as the celebrity. Celebrities also take advantage of theadvertisement where there is overreliance and the celebrity utilises this opportunity to refraintheir image (Ibid).Additionally, McCracken (1989) asserts that the advertisement should be designed in such a waythat there is a perfect symbiosis between the product and the celebrity association which initiatesthe consumers to take part in the meaning transfer process. In advertising theory copy testing isdone to measure the success of the advert and when the advert is put forward to the consumersthey realize the connection of the celebrity with the product which helps in the meaning transfermovement from celebrity to product.Stage 3: ConsumptionFrom a general conception consumers today are looking for meaning in everyday life and whenconsumption comes into play they are looking for the absolute value into it. Consumers comefrom various cultures and in all societies the life-style of the public is influenced by the currentphenomenon which is happening in the surrounding of the people. In the 21st century when thereis abundance of materials from various sources the consumers are bombarded with the productofferings and that makes confusion in the mind of the consumers about the consumption of theproduct. Celebrity association supports the buying behaviour of the consumers as it reflectsreliability of the persona in the product endorsement.
  33. 33. 33McCracken (1989) suggest that the final stage of meaning transfer from the product to theconsumer is the most complicated process. It is not just a matter of fact that consumers merelyown the product and take possession of its meaning nor the meanings are automaticallytransferred back to the consumers. Consumers must incorporate the meanings into them and theyhave to claim the meaning transfer from the product to self and work along with it. They have toparticipate in the whole process of claiming the meaning where the use of the product willdevelop the process of meaning transfer and it can be assumed as a test examination where theconsumers test the product quality and effectiveness along with the celebrity association andjudge the viability of the association.Celebrities have already influenced the process of buying in the 1st stage of the meaning transferwhere they have associated them along with the product and reflected their own life-style alongwith the product. Consumers have accepted what the celebrities has shown them in the initialphase and then only they have progressed into the final stage. Celebrity association is combinedalong with the objects, people and events around the consumer’s life-style and this phenomenonshows that celebrities built their own self well which is appreciated by the consumers. In aneveryday life the consumers are interchanging among various consumer goods and therefore theyare constantly changing various products / goods to construct the aspect of their self and world.They admire those characters that are also changing their characters depending on the situationof the life and can accomplish the changes well into the situation. As celebrities has already donethe stage 1 of meaning transfer process, now the consumers are processing their mind in theirown stage 1 process where they construct the self meaning out of the meaning provided by thecelebrities and judge whether the meanings are accessible to them there.Additionally, McCracken (1989) states that the consumers simply do not admire the celebritybecause of their association but the reason behind their liking is related to what the consumerswanted to see from the celebrity. When the celebrities enter into the endorsing process they makethe meaning of the celebrity self out of the elements in the form of dramatic cultural dispositionwhich is available in the materials form (products) for the consumers. McCracken (1989)illustrates that celebrities also plays the role of a ‘super consumer’. What actually happens in thisphenomenon is that when a movie star is acting they take up a character based on the script andwithin the script they portray the individual based on the circumstances and situation of the story
  34. 34. 34line rather then depicting their own life-style. In most circumstances they carry the character of aperson (imaginary) but they are quite similar to that of the human characters what we see in adaily life. If that character succeeds, then the celebrity becomes a known personality and possesa power of a new self which is accepted by the consumers. (E.g. the role of Kate Winslet in the‘Titanic’ movie gave her the character of the survivor lady of the tragedy and she becameassociated along with the historic epic.) Thus celebrity world is such a imaginary world wherethe characters give new meaning to the person due to their association in a specific role and thistrial method of the celebrities taking up different characters becomes a compelling source ofmeaning in marketing. Similarly, they are also termed as ‘superior customers’ as they gavemeaning to a character and the association of the character with the tangible and intangibleaspect becomes a matter of marketing. They capture the characters in a rational way which giveslife to the characters and the product association along with the characters become a matter ofnew entrants in marketing terms.However, in the society certain groups of people are having higher affinity towards celebrityassociation due to their social supremacy and cultural hierarchy which makes a positiveassociation of these consumers along with the celebrity life-style. Interestingly, these societalgroups are followed by their societal subordinates who gather the knowledge of association ofthe celebrity from their pioneers and they do that not because they know about the celebrity butin order to associate along with the societal supremacy of their peers. Association can also differfrom the generation to generation and also depend upon gender, class, personality and life-stylein a culture of having higher individualism in people than collectivism, but individuals does havepersonal liking and when the consumers chosen character endorse the product the meaningtransfer from product to the consumer becomes relatively easy.Therefore, McCracken (1989) advocates the celebrity endorsement operates as a method ofmeaning transfer from the phase when meaning moves into the persona of the celebrity followingcelebrity to the product and from product to the consumers where the celebrity becomes the keyplayer of meaning transfer process.2.2 The Process of Celebrity Selection:
  35. 35. 35 In this section the researcher will entail with the theories which reflect on how the companies select the celebrities. Theory model discussed in this section are TEARS model, no TEARS approach and the stereotyping of the endorsers. 2.2.1 The TEARS model: Moreover, Shimp (2000) suggests that there are 2 general attributes which the companies should consider while endorsing a celebrity for marketing. These are the credibility of the character and the attractiveness of the celebrity which determines the effectiveness of the communiqué of the endorser to the target audience. Under the credibility characteristic trustworthiness and expertise of the endorser are also counted as sub- quality. Credibility refers to the celebrity’s judgment and reliability and expertise refers to the explicit skills, knowledge or capability that the endorser has about the brand (Ibid). Additionally, Shimp (2000) describes that attractiveness consists of 3 sub categories namely physical attractiveness, respect and similarity. An example of physical attractiveness is reflected when the Swiss watchmaker, Omega choose tennis player Anna Kournikova for their marketing campaign. However, Kournikova never won a tournament in her tennis career but the company’s marketing director believes that she is “really everything in one package” (Ibid). Secondly, celebrities are recognized by the publics for their athletic power, appealing personality and acting ability etc which earns them respect from the society and a consensus voting of recognition. The last attribute is similarity where the major concern is focused on the endorser and their capability to match along with the target group of consumers in terms of age, gender, ethnicity etc. (Ibid). However, Shimp (2003: 293) states that the reason behind taking attributes of the celebrity as a major issue is to “identify how brand managers and their agencies actually go about selecting celebrities, as to avoid the grief from making an unwise decision”. TEARS model of Celebrity Selection: Credibility AttractivenessTrustworthiness Expertise Attractiveness Respect Similarity
  36. 36. 36T E A R SFigure: 4.1 TEARS model Source: (Basu, 2009) Author’s creationThe TEARS model consists of 5 major parameters based on which the companies select thecelebrity for the advertisement campaign. These 5 parameters are: trustworthiness, expertise,attractiveness, respect and similarity.Trustworthiness: It is related to the fact, how reliable and dependable is the celebrity. Ascompanies endorse the celebrity for enhancing their marketing campaign therefore the mainobjective of selection is based on the circumstances whether the celebrity carries the image in thesociety to convince the target audience. Celebrities earn their trust from the public due to theirwork and achievement in respective field and the marketers utilizes the trustworthiness of thecelebrities in the advertisement. On the other hand if the celebrities are showing self interest inendorsing the product the persuasive effect of the endorsement can be negative and consumer’sreliability towards the celebrity falls but increasing reliability can be enhanced when the endorseris seen as a character having ‘zero’ interest in endorsing the brand.Expertise: Expertise relates to the specific skills and knowledge of the endorser in any particularfield. The celebrities achieve these expertises from their prolonged association within anyspecific subject and also due to excessive media attention. Whether or not the celebrity is a realexpert is unimportant but for companies what matters is the celebrity interference in changing theopinion of the consumers about their product / brand.Attractiveness: In this respect the attractiveness of the celebrity plays a vital role. Celebrityattractiveness in terms of physical attributes grabs a lot of public attention more than theirachievement in acting or expertise. Marketers are clever manipulators to visage the mind of theconsumers with the physical attractiveness as it becomes a prime role of getting general
  37. 37. 37consensus in pursuing the mass in various cultures. E.g. Leonardo Dicaprio known as ahandsome actor and his association with TAG heuer, Jude Law and Dunhill, DipikaPadupune (Indian actress) and Kingfisher Airlines.Respect: Celebrities earn respect from the general audience due to their acting skills and theircontribution to the society in sports, business, politics and their arguments in any concerningissues of the society. All these are counted as the personal qualities of the celebrity which earnsthen respect and the credibility of a spoke person. When a respected celebrity endorses a producttheir association enhances the brand’s equity due to the positive alliance of the celebrity. E.g.Shabana Azmi (Indian actress) endorsed the AIDS campaign in India and became the face ofthe WHO’S (world health organization) AIDS campaign in India.Similarity: Similarity relates to the fact how the celebrity relates them along with the age,gender, ethnicity, social class, creed, community and cultural variations. It is highly importantfor companies to consider because consumers admire the individuals who are similar to them inany of the mentioned attributes like from same ethnicity, gender or country. Shimp (2000) statesthat research on ethical minorities reveals that they show greater affinity to the spokespersonwho comes from the same background as they matches with the audience’s liking and gain trustin endorsing a product / brand. (Adopted from Shimp, 2000 and modified by Basu, 2009)2.2.2 The No TEARS Approach for celebrity selection:In compare to Shimp’s (2000) TEARS approach which shows the attributes of the celebrities andhow companies select the celebrities based on the requirement of their advertising campaign, NoTEARS approach of Shimp (2000) describes the correct procedure of celebrity selection by themanagers / decision makers of an organization to avoid the unnecessary hazard of taking anunwise decision of selecting a wrong personality for marketing campaign. The TEARS approachonly reflects on the attributes of the celebrities and the 1 st letter of the word describes thequalities of the characters based on their credibility and attractiveness but the “No TEARS”approach talks about the real quintessence of using the attributes in conjunction with TEARS.
  38. 38. 38According to Shimp (2000) the advertisers considers various factors while endorsing celebritiesinto their marketing campaign and some of the core aspects what they are looking from thecelebrity and brand concurrence are: 1. Celebrity and target market match up 2. Celebrity and brand concurrency 3. Celebrity credibility 4. Attractiveness of the celebrity 5. Cost of endorsement 6. Working easy vs. difficulty factor 7. Endorsement dissemination 8. Celebrity association and risk of brand dilutionAll the above mentioned factors are essentials elements which the companies consider whileendorsing a celebrity. Most important aspect of having the factorial analysis is to establish thebrands association with the positive aspect of the celebrity association. Marketers are clever toestablish this phenomenon and a well known idiom “when you are in Rome (do as Romansdo)” reflects the ideology behind the strategy. The choice of ‘right celebrity’ to target the ‘rightmarket segment’ and eliminating the celebrity as well due to their negative manifestation in thesociety is the ‘mantra’ behind celebrity selection by the companies in today’s economicscenario. However, a diagrammatic description of the factors essential for celebrity and brandcongruency is established as follows:
  39. 39. 39 Celebrity and target market match up Brand Factors in Celebrity and brand concurrency quest of Celebrity credibilityCelebrityEndorsement Attractiveness of the celebrityFactors required Cost of endorsement Working easy vs. difficulty factor Endorsement dissemination Celebrity association and risk of brand dilution Figure: 5.1 Factors essential for Celebrity and Brand Congruency Source: (Basu, 2009) Author’s creation Celebrity and target market match up: Marketers always choose the celebrity based on the fundamental element whether the celebrity endorsement is going to work for the prospective target market where they want the advertisement to launch. Celebrity alignment has to be in parallel with the target audience. E.g. Sport Stars endorsing brands like Addidas, Nike, and Reebok etc. Celebrity and brand congruency: The reflection of the celebrity in relation to the brand values, decorum, principle and also the image required by the celebrity to enhance the brand advertised. E.g. Moneysupermarket.com and entrepreneur Peter Jones: a well knitted congruency where the celebrity’s association with the business world and financial assessment put forward the image of moneysupermarket.com. Celebrity credibility: It associates along with the reliability and dependability of the celebrity and the knowledge of the person about the product / brand and its effectiveness. If the celebrity trust is reflected in the brand and celebrity’s vow for the brand is significant then the advert is
  40. 40. 40considered valuable. E.g. the key statement of L’Oreal said by all the endorsers around the world“because I am worth it”Attractiveness of the celebrity: While choosing celebrities as spokesperson the companiesevaluate the attractiveness of the person and in this relation attractiveness doesn’t means physicalbeauty but also the personality of the character and charisma of the person as an individual. E.g.Dipika Padupune, being the brand ambassador of Kingfisher airlines, India.Cost of endorsement: Another important consideration which all the companies and theadvertising agencies are looking at is the cost of celebrity endorsement. As endorsement itself, iscost sensitive and accounts to huge amount of marketing budget, therefore companies arelooking at the worthiness of the investment. In many occasion they choose the celebritiesdepending on the budget limitations. Subsequently, they also consider the aspect of the brandsimage and its association along with the consumer class, where popular celebrities’ appearanceholds the identity of the brand in spite of the cost involved. Therefore, cost is not a fixedconstraint for endorsement strategy but variable depending on the situation and the need forattention of the brand. E.g. Armani with David and Victoria Beckham (expensive endorsement)but its paying off Armani the return on investment due to the celebrities association. Companiesalways do a cost-benefit analysis in order to determine the celebrity as it relates to thejustification of the fact that what is expected from the return in terms of sales and revenue for theproduct and this analysis establishes the decision of endorsement.Working easy vs. difficulty factor: There is a major concern for the advertisers about thecelebrity endorsement and that relates to the attitude and professionalism of the celebrity.Companies prefer to deal with celebrities who are ‘hassle free’ and are specific about theirroutine. Unprofessional, arrogant, temperamental characters are hard to manage and are difficultpeople to work with as they follow the typical celebrity headed life-style.Endorsement dissemination: If a celebrity is overexposed into the media channel due to theirassociation with various product / brand endorsement there is a possibility that the credibility ofthe celebrity as an endorser fades away. Over exposition of the celebrity reduces their perceivedcredibility and attains saturation among the consumers.
  41. 41. 41Celebrity association and risk of brand dilution: However, there are not always positiveeffects of celebrity association. Sometimes the celebrity association with the brand can dilute thebrand image. The marketers and the advertisers are always concerned about the celebritiesprivate life in which their relation with unsocial or trouble elements can hamper the brandsposition recognition failure. There are no set principles to illustrate why the brands suffers apessimistic position when the celebrity endorsing the brand is convicted of any crime or unsocialaffair. (Adopted from Shimp, 2000 and modified by Basu, 2009)2.2.3 Celebrity endorsement and Cultural Dimension:On the other hand if we consider culture as a dimension to measure the impact of celebrityendorsement then it would be argued that the principles of marketing and the advertising doesn’tcomply with the cultural difference which is predominant in the sentient world. Marketing andpromotions for companies is a vital agenda for market development and their weapon to enhancethe target market for the brand / product. But considering the fact that when all companies aregoing global and are operating throughout the world their products are also available to variouscountries in spite of cultural difference and consumers are also accepting the product / brand.The question arises how it is possible to penetrate the deep-rooted cultural ethos of variousnations. While endorsing a celebrity for a product / brand marketers do consider the culturaldimension to evaluate the suitable personality who is going to be recognized and accepted in theprevailing culture and society. When it comes to the core essence of cultural dimensionmarketers study the structure and the societal make-up of the country they are willing to target.Moreover, Ginsburgh and Throsby (2006) suggest that there certain fundamental issues withculture which is denoted by the fact, how the people behave in other cultures, their customs,religion, beliefs, and societal hierarchy. From organization point of view the challenge is toinvestigate how well the public could be motivated to adopt the product, gaining trust amongthem, establishing the product / brand within the specific culture, technological advancement inthe culture and its reach to the human population of that nation. Therefore, describing culture asa nucleus becomes a challenging task for marketers. Ginsburgh and Throsby (2006) describesthat there are 4 main dimensions of cultural variations based on which the cultural segregationhas been done from one culture to another.
  42. 42. 42Based on the assumption that a pragmatic approach to identify culture which nurtures thedevelopment and influences economic growth the 4 dimensions of culture are introduced. Theyprevail in the western competitive individualistic society as well as in idyllic closed society ofsolidarity. Casson (1993) in Ginsburgh and Throsby (2006) illustrates the 4 types of dimensionswhich are: 1. Individualism Vs. Collectivism 2. Pragmatism Vs. Proceduralism 3. Low trust Vs. High trust 4. High-tension Vs. Low-tensionIndividualism vs. Collectivism: Earl (1986) in Ginsburgh and Throsby (2006) suggests thatpeople having individualistic approach believes that common people are autonomous in nature inthat respect each and every individual values their own personal ‘lifestyle’ than that of others. Inthe individualistic culture the information required for coordination is widely distributed and theafter shocks received by the individuals are very specific. In this approach people believe thatownership and control of resources should be invested in the individuals as individuals only havethe ability to take decisions based on the information received.On the other hand, collectivist believes that common people are part of the community wherethey are born and they follow the communal structure more than their individual thoughts andjudgement. Even if they have individual thoughts about specific matters, but they always tend tosubstitute that with the consensus from the communal hierarchy. Even adults seek opinion fromtheir elders regarding survival issues. People having collectivist view also believe in groupuniformity as in everyone is same and values group ideas. Information required for coordinationis centralized based to the group and the after shocks are having collective impact. Ownershipand control of resources in this approach is invested in group. [Ekelund and Tollison (1997) inGinsburgh and Throsby (2006)]Pragmatism vs. Proceduralism: Pragmatists believes that sensitive judgements are based uponwide personal experience and should be based upon the grounded theory or practical world i.e. tosay what is obvious to happen in circumstances of odd and even in human life and decisions

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