India is a country where people love to live in their dreams. They worship celebrities. Celebrities may be Cricket stars like Sachin Tendulkar, MS Dhoni or Film Stars like Salman Khan, Kareena Kapoor, Shahrukh Khan, and Katrina Kaif. They treat them as God. Marketers use this very preposition so as to influence their target customers existing or potential ones. For this they rope in these celebrities and give them whopping amount of money. They believe that by doing this they can associate their products with their target customers. This is called celebrity endorsement. Objective of this project is to know how celebrity impacts on consumer’s buying behavior. This project includes survey of 100 questionnaires. From this we can make an attempt to generalize the result to the whole universe. We have taken survey of 100 people including Male & Female.

1. Influence of Celebrity Endorsement on
the Consumer’s Purchase Decision
Submitted in Partial Fulfillment for the Diploma Requirements for
PGDM – Full Time Programme
Subject: Research Methodology in Business
By
Dinesh Kumar (87)
(Batch 2015-2017)
To
Prof. Sumit Rastogi
Bharatiya Vidya Bhavan’s
Usha and Lakshmi Mittal Institute of Management
Kasturba Gandhi Marg, New Delhi
2016

2. ACKNOWLEDGMENT
Working on this dissertation has been an incredible experience for us. For this, we would like to
thank a lot of people without whose co-operation and support; this research would not have been
possible.
We would like to thank our mentor Prof. Sumit Rastogi for his continuous guidance and support.
He has been of remarkable help to us in assisting throughout our dissertation and would like to
appreciate his continuous support. His valuable feedback and comments have greatly helped us
structure our dissertation and also to complete our dissertation on time.
Also, we would like to sincerely thank all the respondents for their precious time and useful
insights on the research topic and who have patiently expressed their views to help us carry on
with our dissertation. In the end, we are thankful to our friends directly and indirectly, for their
constant source of encouragement and being there with us always.

3. Executive Summary
India is a country where people love to live in their dreams. They worship celebrities. Celebrities
may be Cricket stars like Sachin Tendulkar, MS Dhoni or Film Stars like Salman Khan, Kareena
Kapoor, Shahrukh Khan, and Katrina Kaif. They treat them as God. Marketers use this very
preposition so as to influence their target customers existing or potential ones.
For this they rope in these celebrities and give them whopping amount of money. They believe
that by doing this they can associate their products with their target customers. This is called
celebrity endorsement.
Objective of this project is to know how celebrity impacts on consumer’s buying behavior. This
project includes survey of 100 questionnaires. From this we can make an attempt to generalize
the result to the whole universe. We have taken survey of 100 people including Male & Female.

4. INTRODUCTION
In today’s competitive world consumers are exposed to thousands of voices and images in
magazines, newspapers, and on billboards, websites, radio and television. Advertisers attempts to
steal at least a fraction of a person's time to inform him or her of the amazing and different
attributes of the product at hand. Because of the constant media saturation that most people
experience daily, they eventually become numb to the standard marketing techniques. The
challenge of the marketer is to find a hook that will hold the consumer’s attention. The hooks
that can hold the consumer’s attention are the celebrities. Celebrity endorsement if used
effectively makes the brand stand out, brand recall and facilitates instant awareness. To achieve
this, the marketer needs to be really disciplined in choice of a celebrity. Hence the right use of
celebrity can escalate the Unique Selling Proposition (USP) of a brand to new heights; but a
cursory orientation of a celebrity with a brand may prove to be fruitful for a brand. A celebrity is
a means to an end, and not an end. Celebrity Endorsement is a way to get the brand noticed
amidst the rush that is there in the market place.
There is a huge impact of Celebrity Endorsements among the consumers through TV
commercials in India as Indians like the celebrities a lot and there is a huge fan following.
Consumer that observes messages for two different companies products, one product’s message
containing a celebrity endorsed and the other not believes the celebrity endorsed product will
have more purchases and so be of higher value. More and more companies prefer the celebrities
of different fields in India like the cricketers, Bollywood celebrities and other sports personalities
to endorse their brands. Marketers spend enormous amount of money on celebrity endorsement
contracts based on the belief that celebrities are effective spokespersons for their products or
brands. Television is something which is watched all over India by the people of all class
whether the people belong to lower class or middle class or upper class, all of them watch
television to entertain themselves. In India, celebrity power can rightly be assessed by their
successful endorsements. Here, celebrities like film stars and cricketers have not only been
successful ingathering huge public attention, but also in increasing sales volume.

5. For example, Cadbury used Amitabh Bachchan to promote the brand when it went through a bad
phase in India. Soon the ad recreated people’s love for the brand and increased Cadbury’s sale.
Aamir Khan is used by Titan to communicate the message that Titan watches are as trustworthy
as the actor is for his films. This celebrity endorsement has also been quite effective in
influencing consumers buying decision. Similarly, various endorsements by Shahrukh Khan,
Sachin Tendulkar and others have been found to be successful in affecting consumer’s buying
decision.
Celebrity Endorsement
McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys public
recognition and who uses this recognition on behalf of a consumer good by appearing with it in
an advertisement, is useful, because when celebrities are depicted they bring their own culturally
related meanings, thereto, irrespective of the required promotional role."
Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high
in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a
more favorable evaluation of the product and advertisement, and a significantly more positive
purchase intention.
Scope of Celebrity Endorsement
The use of testimonials by advertisers dates back to the 19th century when medicines were
patented. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g.,
athletes, actors) in the hope that celebrities may boost effectiveness of their marketing. The
increasing number of endorsements throws a valid question to the consumers. Is there a science
behind the choice of these endorsers or is it just by the popularity measurement? What are the
reasons which lead to impact of celebrity endorsement on brands? Greater the score of the below
parameters, greater are the chances of getting close to the desired impact.

6. LITERATURE REVIEW
Friedman & Friedman (1979) explains the term “celebrity” refers to an individual who is known
to the public, such as actors, sport figures, entertainers‟ and others because of his or her
achievement in areas other than that of the product class endorsed. Copper (1984) explained that
the general belief among advertisers is that advertising messages delivered by celebrities provide
a higher degree of appeal, attention and possibly message recall than those delivered by non-
celebrities. Marketers also claim that celebrities affect the credibility of the claims made,
increase the recalling of the message, and may provide a positive effect that could be generalized
to the brand. (Ohanian, 1991)The use of (by corresponding standards) attractive people is
common practice in television and print advertising, with physically attractive communicators
having proved to be more successful in influencing customer’s attitudes and beliefs than
unattractive spokespersons. Menon (1998) examined the effectiveness of advertisement endorsed
by celebrities and normal person. In this paper he examined the effectiveness by using the
multivariate analysis. In the advertisements for Milk, believability, knowledge, appearance and
liking for the celebrity were highly correlated to each other and also with purchase intentions.
For advertising with non-celebrity spokesperson, credibility was highly correlated to advertising
believability, which was in turn correlated to purchase intentions. For advertisements about
Pepsi-Cola significant correlations were identified between credibility and knowledge and
between advertising believability and purchase intentions. Celebrity appearance, knowledge,
liking, and credibility of the celebrity were also highly correlated with advertising believability.
At the same time, liking for the celebrity and advertising believability were both correlated with
purchase intention. For advertising execution that involves non-celebrities, the analysis indicates
that appearance, credibility and knowledge were highly correlated with advertising believability.
At the end he concluded that advertisers need to be cautious when using celebrity advertising as
they are not believable in certain instances and hence may not deliver the intended effect. This is
certainly true of those celebrities who are seen as endorsing many types of products across a
wide spectrum. It would seem that for some classes of products, person-on-the-street type of
advertising might be just as effective if not more so than those that use celebrities. Laferty and
Goldsmith (1999) found that Endorser credibility is one of the most frequently used methods in
advertising to influence consumer’s attitudes and purchase intentions. Corporate credibility, or

7. the reputation of the firm, is another source of credibility identified in marketing that can
influence these cognitions. They examined these two sources of credibility to assess their impact
on attitude-toward-the-ad, attitude-toward-the-brand, and purchase intentions, between-subjects
factorial design was used. One hundred women students were shown one of our mock magazine
ads. The results indicated that both credibility types influence attitude towards the ad and
attitude-toward-the-brand, but corporate credibility alone appears to have a significant influence
on purchase intentions. Moreover, whereas endorser credibility seems to have a greater influence
on attitude toward the ad, corporate credibility seems to have a greater influence on attitude-
toward-the-brand and on purchase intentions. (Dinesh Kumar Gupta, 2007)The effectiveness of
using a celebrity to endorse a firm's product can generally be improved by matching the image of
the celebrity with the personality of the product and the actual or desired self-concept of the
target market.
REASONS OF ADOPTING THE CELEBRITIES IN ENDORSING THE PRODUCT
Nowadays marketers do not only want to maximize the sales of the product but also to create the
brand equity. For creating the brand equity they are using the celebrities in advertisements.

8. Mechanism and theories of celebrity endorsement
Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will
provide added appeal and name recognition in a crowded market. In the battle for the mind, you
get the customer excited by showing him a known face, and an effective demand is created. In
short it helps increase the recall value of the brand.
According to Source Credibility Theory, acceptance of the message depends on’ Expertness' and
‘Trustworthiness' of the source. Expertness is defined as the perceived ability of the source to
make valid assertions. Trustworthiness is defined as the perceived willingness of the source to
make valid assertions. Audience acceptance increases with the expertness of the source and the
ability of the audience to evaluate the product. According to Source Attractiveness Theory,
which is based on social psychological research, the acceptance of the message depends on
familiarity, likeability and similarity. Familiarity is the audience's knowledge of the source
through exposure; likeability is the affection for the source's physical appearance and behavior
while similarity is the resemblance between source and receiver. This theory explains the
message acceptance in two ways: Identification and Conditioning. Identification is when the
receiver or the target audience of the communication begins to identify with the source's
attractiveness, and hence tends to accept his opinions, beliefs, habits, attitudes etc.
On identification, a quote from Bijou Kurien, COO, Titan, “We decided on Aamir because we
wanted someone who is a bit iconic, who is style-conscious himself, and somebody who cuts
across both sex and age group, between urban and rural India. A celebrity who is moldable and
who is not overexposed. Conditioning is when the attractiveness of the source is supposed to
passion to the brand after regular association of the source with the brand. Grant McCracken has
criticized the previous two theories and proposed the Meaning Transfer Theory. The theory
explains that a celebrity encodes a unique setoff meanings which if well used can be transferred
to the endorsed product. Such a transfer takes place in three stages – encoding meanings,
meaning transfer.
I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by age,
gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of meanings
in their image. For example Preity Zinta can be seen as a lively, charming, bubbly, witty and
enthusiastic.

9. II. Meaning Transfer: This stage transfers those meanings to the product. When skillfully
portrayed, celebrities can communicate this image more powerfully than lay endorsers.
III. Meaning Capture: This assumes that consumers purchase products not merely for their
functional value but also for their cultural and symbolic value. The theory says that consumers
buy the endorsed product with the intention of capturing some of the desirable meanings with
which celebrities have passed on to the product. This is more eminent in lifestyle products like
clothes, perfumes, cell phones etc.
Celebrity endorsement can be key to marketing success
There's no denying the fact that marketing chiropractic can be challenging. The public has long
been exposed to negative reports about it from the medical and drug industries, as well as from
well-meaning but uninformed consumer advocates. They’ve heard chiropractic jokes on sit-coms
and warnings on the nightly news. To market chiropractic in general — and your practice in
particular — you must first overcome lingering fears, ignorance and skepticism that keep people
from coming to your office. One of the most powerful ways to surmount these obstacles is to use
a celebrity endorsement. When you tell people that chiropractic can help them, they may or may
not believe you. After all, you have a vested interest in selling your services. But when
celebrities say that chiropractic has helped them, and it could help others, people tend to listen —
and believe. After all, most people assume "he wouldn’t say it if it weren't true."As Marketing
expert Patrick Bishop — co-author of "Money Tree Marketing: Innovative Secrets That Will
Double Your Small-Business Profits in 90 Days or Less" — noted:
"When you get a celebrity to endorse your company or sign a licensing agreement, you
benefit from customers' awareness of the property, [which]could include the perception of
quality, educational value or a certain image."
"Studies show that using celebrities can increase consumers' awareness of the
Ad, capture [their] attention and make ads more memorable"
If you're not convinced yet of the effectiveness of celebrity endorsements, here’s what Jonathan
Gaines, president and CEO of top marketing firm DMS Strategies has to say:

10. "High-profile endorsements from athletes and celebrities will set you apart from your
competitors, and you can become a contender in the playing field celebrity spokesperson
can work for companies of all sizes."
Celebrity Values
Celebrity branding is all about the transfer of the value from the person to the product he
endorses or stands for. There are two concerns here. The first is how long this could last. Can the
person maintain his popularity (i.e., his performance or status ranking)?the lifecycle of celebrity
popularity varies a lot. The second concern is his private life - personal integrity. If he is
implicated in any kind of scandal, that would ruin the brand. "Who would want to use Michael
Jackson to brand their product?”
Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness, Amitabh
Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Ray appearing in the
Donate Eyes campaign are few examples, which reflect the transfer of celebrity values to the
brand, creating an impact that generates recall.
Celebrity Controversy Risk
The perfect example here is of Salman Khan and the controversy in which he crushed a man to
death with his Pajero when he was driving under the influence of alcohol. Also, any act on the
part of the endorser that gives him a negative image among the audience and goes on to affect
the brands endorsed. The brand, in most instances, takes a bashing.
Celebrity Regional Appeal Factors
R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India are few
examples of how celebrities are chosen to reach out to target audiences for brands in regional
markets.
Celebrity Physical Attractiveness
Bipasha Basu's physical attractiveness and she connect with the brand makes Levi-Strauss’s
campaign through celebrity in India, John Abraham endorsing Wrangler and Timex Sunglasses

11. are some examples which portray the celebrities' physical attractiveness that helps create an
impact.
Celebrity Credibility
The most important aspect and reason for celebrity endorsement is credibility. Most experts
believed that the most important dimensions of credibility are trustworthiness and processor
expertise with regard to the recommended product or service. One of the most obvious reasons of
Amitabh Bachchan endorsing plethora of brands is the credibility of the celebrity and his
recognition across consumers.
To site one of the most successful campaigns in which the celebrity's credibility has had an
indelible impact on the brand and has saved the brand is of Cadbury’s. After the worm
controversy, Amitabh Bachchan's credibility infused into the brand through the campaign,
helping it to get back on track. The campaign has won an award for the same.
Multiple Endorsements
The case of multiple endorsements, both in terms of a single brand hiring multiple celebrities and
that of a single celebrity endorsing multiple brands, is often debated. At times, consumers do get
confused about the brand endorsed when single celebrity endorses numerous brands. The recall
then gets reduced and reduces the popularity of the brand. Not many people can remember all the
brands that a celebrity endorses and the chances of losing brand recall increases if the celebrity
endorses multiple brands. For example, in case of Sachin Tendulkar people recall Pepsi, TVS
Victor and MRF, but might not remember brands like Britannia and Fiat. Similarly, for Amitabh
Bachchan, consumers remember ICICI, Pepsi, Parker Pens, Pulse Polio and BPL. They might get
confused in the endorsement of Nerolac or Asian Paints. Thus, for multiple endorsements where
the same celebrity endorses several brands, it boils down to the strength of the brand and the
advertising content.
Whether Celebrity is a Brand User
One of the strongest platforms to discuss this is through NGOs. Various celebrities endorse
NGOs and social causes since they believe in the social message that they need to convey to the

12. audience. One of the most successful campaigns has been executed by PETA in which celebrities
like Shilpa Shetty, Amisha Patel, Yana Gupta, Sheetal Malhar, and Mahima Choudhary Claimed
to believe in PETA's philosophy, and thereby endorse the brand. On the other hand, while some
would understand that Amitabh Bachchan would have never used Navratan Tel, the target
audience that the brands wants to reach out to will be ready to believe that he used the oil and his
endorsement thereby creates an impact
How Celebrity Endorsements Influence the Consumer
The basis for the effectiveness of celebrity-endorsed advertising can be linked to Kelman's
processes of social influence as discussed by Friedman and Friedman. According to Kelman,
there are three processes of social influence, which result inane individual adopting the attitude
advocated by the communicator:
Compliance, Identification & Internalization
These latter two processes are particularly applicable to celebrity-endorsed advertising.
Compliance infers that another individual or group of individuals influences an individual cause
he or she hopes to achieve a favorable reaction from this other group. This process of social
influence is not directly applicable to celebrity advertising because there is little, if any,
interaction between the celebrity and the consumer.
Identification applies to the situation wherein the individuals emulate the attitudes or behavior
of another person or group, simply because they aspire to be like that person or group. This
process is the basis for referent power. It was found that celebrities are more commonly liked
than a typical consumer spokesperson.
Internalization as a process of social influence is said to occur when individuals adopt the
attitude or behavior of another person because that behavior is viewed as honest and sincere and
is congruent with their value system. The effectiveness of celebrity advertising traditionally has
not been strongly linked to this process, as a celebrity's reason for promoting a product can just

13. as easily be attributed by the consumer to an external motive (i.e., payment of fee) as to an
internal motive (i.e., the celebrity's true belief in the value and benefit of the product).
Research Methodology
Research Methodology is defined as “a systematic effort to gain knowledge”. It is the way of
systematically solving the research problem. It may be understood as a science of studying how
research is done scientifically. Our research will focus on investigation influence of celebrity
endorsement on the consumer’s purchase decision. Research methodology is an important phase
in research study.
Population
Sample Size
The sample size selected for this research is 100 respondents.
Sampling Technique
The research was conducted by administering questionnaire which investigated the influence of
celebrity endorsement on the consumer’s purchase decision. A total of 100 questionnaires were
distributed and the data was collected. There was no systematic pattern of selecting samples
involved in this study. Convenience sampling technique is adopted in this study.
Data Collection Methods
In this research two methods are adopted for collecting the data. They are primary and secondary
data.
Primary Data
Primary data was collected with an aid of a Questionnaire. The Questionnaire contains a series of
questions arranged in a proper order. The data collection was done using a questionnaire of 18
questions, which consisted of closed and open ended questions. The questionnaire was designed
to collect data about the influence of celebrity endorsement on the consumer’s purchase decision.

14. Secondary Data
Secondary data was collected from the internet, articles from scholarly journals and books.
Independent Variable
The independent variables used in the study are:
 Age
 Gender
 Qualification
Dependent Variable
The dependent variables used in the study are:
 Impact of celebrity on brand recognition
 Attitude towards celebrity endorsement
 Value while purchasing product
 Image of celebrity endorsement
Research Questions
1. How far celebrity advertising is more attractive than non-celebrity advertising?
2. Is Celebrity’s attractiveness going to have a direct impact on the product?
3. How far celebrity endorsements have an impact on the purchase decision?
Use of Simulation Software Analysis Tool
Data analysis was done through the statistical package for social science software. The package
used was SPSS 21 for the analysis of data.

15. Data Analysis
and
Interpretation

16.  Gender
The following data shows the percentage between male and female gender individuals we have
surveyed for our research project.
From the above graph, it can be interpreted that there were 68% male and 32% female
respondents in our survey.
68%
32%
male
female
Male
Female

17.  Age Group
The following data shows the bifurcation between age groups we have surveyed for our research
project.
From the above graph, it can be interpreted that there were 58% respondents in the age group of
18-22 years, 34% in the age group of 22-26 and 32% in the age group of 26-28 years.
58%
34%
8%
0%
10%
20%
30%
40%
50%
60%
70%
18-22 22-26 26-28

18.  Qualification
From the above graph, it can be interpreted that 32% of the respondents in our survey were post
graduate, 63% were under graduate and 5% belonged to others like doctorate, professional
qualification holders like CA, CS, and ICWA, Housewife, school children or diploma holders
etc.

19. Q1. Advertisement medium that persuades people the most while purchasing a product.
From the above graph, it can be interpreted that advertisement on television (54%) persuades the
most to purchase a product followed by internet (20%), newspaper (18%), magazine (5%) and
the least radio (3%).

20. Q2. Factors people value the most while purchasing a product.
From the above graph, it can be interpreted that people factor in value for the money (38%)
followed by quality of the product (28%), price of the product (18%) and celebrity endorsement
just 16% while making their purchasing decision.
18
16
28
38
Price of the product
Celebrity Endorsement
Quality of the product
Value for the money

21. Q3. Factor Analysis
H0: Correlation matrix is insignificant (Null hypothesis)
H1: Correlation matrix is significant (Alternative hypothesis)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .770
Bartlett's Test of Sphericity Approx. Chi-Square 189.770
df 15
Sig. .000
Since, Kaiser-Meyer-Olkin value of sampling adequacy, i.e. 0.770 > 0.5, therefore, it can be
stated that factor analysis can be applied on this data.
Further, the p-value for the Bartlett test, i.e. 0.000 < α=0.05, therefore, we will reject our null
hypothesis and conclude that the correlation matrix is significant.
Only two components have Eigenvalues greater than 1, i.e. component 1 and component 2.
Component 1 is explaining 49.646% of variation of the whole data.
Component 2 is explaining 19.298% of variation of the whole data.
In total, Component 1 & Component 2 is explaining 68.944% of variation.
Total Variance Explained
Com
pone
nt
Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total % of
Variance
Cumulativ
e %
Total % of
Variance
Cumulativ
e %
Total % of
Varianc
e
Cumulative
%
1 2.979 49.646 49.646 2.979 49.646 49.646 2.759 45.984 45.984
2 1.158 19.298 68.944 1.158 19.298 68.944 1.378 22.960 68.944
3 .636 10.592 79.536
4 .490 8.169 87.705
5 .451 7.510 95.215
6 .287 4.785 100.000
Extraction Method: Principal Component Analysis.

22. Rotated Component Matrix
a
Component
1 2
I buy a product based on the attractiveness of the celebrity. .751 .398
I remember a brand just because the celebrities are
endorsing it.
.767 -.116
I buy a product just because the celebrities are using it. .844 -.002
I think celebrity endorsement is an important factor when I
make my decision.
.601 .573
I don't believe the celebrities also use those products which
they themselves endorse.
.071 -.926
I would buy a brand if my favorite celebrity is endorsing it. .726 .145
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Let the cut-off be 0.6, component 1 will have:
• I buy a product based on the attractiveness of the celebrity.
• I remember a brand just because the celebrities are endorsing it.
• I buy a product just because the celebrities are using it.
• I think celebrity endorsement is an important factor when I make my decision.
• I would buy a brand if my favourite celebrity is endorsing it.
Component 2 will have:
• I don’t believe the celebrities also use those products which they themselves endorse.

23. Therefore, main factors of consideration are:
Factor 1: Influence of celebrity; and
Factor 2: Lack of confidence on celebrities.
Q4. Factor Analysis
H0: Correlation matrix is insignificant (Null hypothesis)
H1: Correlation matrix is significant (Alternative hypothesis)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .530
Bartlett's Test of Sphericity Approx. Chi-Square 103.072
df 15
Sig. .000
Since, Kaiser-Meyer-Olkin value of sampling adequacy, i.e.0.530> 0.5, therefore, it can be stated
that factor analysis can be applied on this data.
Further, the p-value for the Bartlett test, i.e. 0.000 < α=0.05, therefore, we will reject our null
hypothesis and conclude that the correlation matrix is significant.
Total Variance Explained
Com
pone
nt
Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation Sums of Squared Loadings
Total % of
Varian
ce
Cumul
ative %
Total % of
Varianc
e
Cumulativ
e %
Total % of
Variance
Cumulative
%
1 1.961 32.683 32.683 1.961 32.683 32.683 1.957 32.620 32.620
2 1.540 25.674 58.357 1.540 25.674 58.357 1.544 25.738 58.357
3 .945 15.758 74.115
4 .732 12.195 86.310
5 .480 8.004 94.314
6 .341 5.686 100.00
0
Extraction Method: Principal Component Analysis.

24. Only two components have Eigenvalues greater than 1, i.e. component 1 and component 2.
Component 1 is explaining 32.683% of variation of the whole data.
Component 2 is explaining 25.674% of variation of the whole data.
In total, component 1 & component 2 are explaining 58.36% of variation.
Rotated Component Matrix
a
Component
1 2
My favorite celebrity gives a positive image to the endorsed brand. -.067 .630
I always compare the product I own with the product that celebrities are using .656 -.263
I don’t believe products specifically advertised by the celebrity are of good quality. -.652 .060
I think investing large amount of money for using celebrities help companies to
increase their total revenue.
.661 .525
I think celebrity endorsement help in strong brand formation. -.121 .894
I will stop buying a brand if my favorite celebrity endorsing it gets involved in some
scandal.
.803 -.031
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a
a. Rotation converged in 3 iterations.
Let the cut-off be 0.6, component 1 will have:
• I always compare the product I own with the product that celebrities are using
• I don’t believe products specifically advertised by the celebrity are of good quality.
• I think investing large amount of money for using celebrities help companies to increase
their total revenue.
• I will stop buying a brand if my favourite celebrity endorsing it gets involved in some
scandal.

25. Component 2 will have:
• My favourite celebrity gives a positive image to the endorsed brand.
• I think celebrity endorsement help in strong brand formation.
Therefore, main factors of consideration are:
Factor 1: Impact on company’s sales and revenue
Factor 2: Brand formation
Q5. Impact of specific celebrities as brand endorsers.
Name of the celebrity Excellent Average Poor
Sachin Tendulkar 75 22 3
Shahrukh Khan 59 36 5
Amitabh Bachan 63 29 8
Aamir Khan 48 40 12
Saif Ali Khan 21 63 16
Virat Kholi 43 41 16
Aishwarya 57 33 10
MS Dhoni 48 36 16
others 35 51 14
Abhishek Bachan 20 51 29

26. From the above data we interpret the following:-
 75% of the respondents agree that Sachin’s endorsement is excellent while 22%of
respondents give the idea that he is average but only 3% says he is poor for endorsing brands.
 59% of respondents agree that Shahrukh Khan’s endorsement is excellent while 36%of
respondents give the idea that he is average but only 5% says he is poor for endorsing brands.
 63% of respondents agree that Amitabh’s endorsement is excellent while 29%of respondents
give the idea that he is average but only 8% says he is poor for endorsing brands.
 48% of respondents agree that AmirKhan’s endorsement is excellent while 40%of
respondents give the idea that he is average but only 12% states that he is poor for endorsing
brands.
 63% of respondents states that Saif Ali Khan’s endorsement is average while 21%of
respondents gives the idea that he is excellent but only 16% states that he is poor for
endorsing brands.
 43% of respondents state that Virat’s endorsement is excellent while 41%of respondents give
the idea that he is average but only 16% states that he is poor for endorsing brands.
 57% of respondent’s states that Aishwarya Rai’s endorsement is excellent while 33%of
respondents give the idea that she is average but only 10% state that she is poor for endorsing
brands.
 48% of respondents state that Dhoni’s endorsement is excellent while 36%of respondents
give the idea that he is average but only 16% states that he is poor for endorsing brands.
 35% of respondents state that other endorser’s are excellent while 51% of respondents give
the idea that they are average but only 14 % states that they are poor for endorsing brands.
 20% of respondents ‘state that Abhishek Bachan’ sendorsement is excellent while 51% of
respondents give the idea that he is average but 29% states that they are poor for endorsing
brands.

27. Q6. Type of celebrity endorsement which persuades more to purchase a product.
From the above graph, it can be interpreted that 51% of the respondents are persuaded to buy a
product when endorsed by film stars while 18% by the common man and 16% by famous
personalities whereas 15% of the respondents are persuaded to buy a product when endorsed by
cricketers.

28. Q7. Reason for companies to choose celebrity endorsement for promotion of their
product.
From the above data it can be interpreted that 32% of the respondents feel that companies choose
celebrities to promote their product because it gives their product easy recognition in the market,
30% of them feel that companies can compete strongly with their competitors, 25% think it
increases sales and profit, while the remaining 13% feel that it is because the company cannot
generate new ideas.

29. Q8. Favorite celebrity among the people.
From the above graph it can be interpreted, that the most famous celebrity among the people is
Virat Kholi (34%) followed by Sharukh Khan (27%), MS Dhoni (18%), Kareena Kapoor (13%),
and other’s (8%) which includes the celebrities like Katrina Kaif, Salman Khan, and Sachin
Tendulkar etc.

30. Conclusion
Celebrity endorsement has become a buzzword in Indian advertising industry today. The obvious
reason for going in for celebrities is the fact that they have a mass appeal and once identified
with a product, they can trigger an instant recall in the mind of the consumer. Maybe this is why
both Indiancorporate as well as MNC's are in race to sign up sportspersons and film stars to
endorse their brands. This study was undertaken to identify the relationship between select
parameters associated with celebrities and their effect on consumer buying behavior. The
following conclusions weredrawn after a vigorous statistical analysis involving these parameters.
Celebrity Controversy, Gender and Profession have no significant influence on consumer
behavior whereas Celebrity Attractiveness, Credibility, Performance, Popularity and Territory
significantly influence consumer behavior.
Hence, marketing firms must preferably select those celebrities who command a high credibility
in the minds of consumers. These outcomes clearly show that various dimensions engaged in
celebrity studies have both positive and negative effects on buying behavior of consumers. The
results reinforce the view of advertisers that celebrities do influence consumer behavior in some
way or the other. Even after their favorite celebrities are embroiled in a major controversy, still
the consumers (who it seems have a very short memory) ignore these issues and go ahead with
purchasing branded products and services endorsed by them. The consumers also do not pay
much attention towards the gender or profession of a celebrity. These results without any doubt
underline the loyalty of customers towards their idols and emphasize the idea that celebrities are
here to stay in Indian advertising world and nobody dare to ignore their major influence on
consumer behavior.

31. References
1. http://www.wbiconpro.com/519-Peter.pdf
2. http://www.ssmrae.com/admin/images/cbed954136616d8d59b9500b5780645f.pdf
3. http://www.internationalconference.com.my/proceeding/2ndicber2011_proceeding/4062nd%
20ICBER%202011%20PG%202213-2226%20Advertising%20Models.pdf
4. http://www.ktu.lt/lt/mokslas/zurnalai/ekovad/16/1822-6515-2011-1215.pdf
5. http://www.ajbms.org/articlepdf/ajbms201211i11104.pdf
6. http://openpolicyontario.pbworks.com/f/Celebrity-Endorsements-Report1+%282%29.pdf
7. http://www.satishserial.com/issn0972-9348/finaljournal03.pdf
8. http://www.uni-hamburg.de/fachbereicheeinrichtungen/fb03/ihm/Impact_of_Celebrity_End
orsement.pdf
9. http://www.icmis.net/aims-international/aims9/aims9cd/pdf/P9813-Final.pdf
10. http://edissertations.nottingham.ac.uk/2069/1/08MAlixrs13.pdf
11. http://arno.uvt.nl/show.cgi?fid=115680
12. Friedman, H. H., & Friedman, L. (1979). “Endorser Effectiveness by Product Type.”Journal
Advertising Research, Vol. 19(5), pages67-

32. Questionnaire on
INFLUENCE OF CELEBRITY ENDORSEMENT ON THE CONSUMER’s PURCHASE
DECISION
Name:
Age: Qualification: UG PG Others
Gender: a) Male b) Female
Q1. What means of advertisement persuades you the most to purchase a product?
a) TV
b) Radio
c) Newspaper
d) Magazine
e) Internet
Q2. What do you value the most when purchasing a product?
a) Price of the product
b) Celebrity endorsement
c) Quality of the product
d) Value of the money
Q3. Indicate your opinion for the statement that determines the purchase of
celebrity endorsed product where SA denote Strongly Agree, A denotes Agree,
N denotes Neutral and SD denotes Strongly Disagree.
S.No PARTICULARS SA A N D SD
1 I buy a product based on the attractiveness of the celebrity.
2 I remember a brand just because the celebrities are endorsing it.
3 I buy a product just because the celebrities are using it.
4 I think celebrity endorsement is an important factor when I
make my decision
5 I don’t believe the celebrities also use those products which
they themselves endorse.
6 I would buy a brand if my favorite celebrity is endorsing it.
Q4. Indicate your opinion for the following statement that deals with celebrity
image or appeal where SA denote Strongly Agree, A denotes Agree, N denotes
Neutral and SD denotes Strongly Disagree.
S.No. PARTICULARS SA A N D SD
1 My favorite celebrity gives a positive image to the endorsed
brand.
2 I always compare the product I own with the product that
celebrities are using
3 I don’t believe products specifically advertised by the celebrity
are of good quality.

33. 4 I think investing large amount of money for using celebrities
help companies to increase their total revenue.
5 I think celebrity endorsement help in strong brand formation.
6 I will stop buying a brand if my favorite celebrity endorsing it
gets involved in some scandal.
Q5. How ideal are the following celebrities as brand endorsers? Tick one which
ever you think is the best option.
S.No. Name of Celebrity Excellent Average Poor Unsure
1 Sachin Tendulkar
2 Shahrukh Khan
3 Amitabh Bachchan
4 Aamir Khan
5 Saif Ali Khan
6 Virat Kholi
7 Aishwarya Ray
8 MS Dhoni
9 Abhishek Bachchan
10 Others
Q6. What type of celebrity endorsement persuades you personally to purchase a
product?
a) Film Star
b) Famous personalities (like musicians, sports apart from cricket)
c) Cricketer
d) Common man as brand ambassador
Q7. What do you think is the reason for the companies to choose celebrity
endorsement for promoting their product?
a) Easy recognition of product
b) Cannot generate new ideas
c) To be able to increase sales and profit
d) To compete strongly
Q8. Name your favorite celebrity along with the product or service they endorse:
__________________________________________________________________
Thank you for your precious time to fill up the questionnaire