STUDY ON IMPACT OF CELEBRITY ENDORSEMENT ON THE PURCHASING DECISION OF THE CONSUMER

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  • Celebrity endorsement is a type of communication that conveys the idea of the product (from the manufacturer) to the consumer using the image of the endorser. The stronger the endorser the higher is the impact of the product in the minds of the consumers.Friedman and Friedman (1979) stated that, in the promotion of products high in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a more favourable evaluation of the product and advertisement, and a significantly more positive purchaseintension.Mc Craken’s (1989) defined celebrity endorsement as – “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement.In the same way Atkin and Block (1983), Petty (1983) and Ohanian(1991), Kamins (1990), O’Mahony & Meenaghan (1998) suggested that the celebrity endorsers entertains more positive attitude and greater intensions for purchases than a non-celebrity endorser. Similarly Packard (1991) believes that celebrity endorsement is more effective in selling product and services as a status symbol for certain section of the society. For eg: Parkers pens endorsed by AmitabhBachchan are sheer symbol of the class associated with the pen. It signifies the elite andsophisticated side of an individual’s personality. According to Sadhu Ramakrishna, Santhosh Reddy(2005)- To be successful, brands need to convince consumers that they carry a different image and value from other competing products. In other words, brands have to show their true personality to the potential consumer(s)and celebrities are the best way to do this.Seno & Lukas (2007) found that the prevalent utilization of celebrity endorsement in marketing program is not an accident. Research has found that as compared to the other genre of endorsers such as the company manager, typical consumer and the professional expert, byfar the celebrities are the most effective. Joshi and Ahluwalia (2008) found that the use of celebrity for endorsements create a very favourable impact on the consumer and it creates a connect which forces a consumer to purchase a product.Edwards and Ferle (2009) revealed that although celebrity endorsementhave become an integral part of advertising, there are some potential risks related with celebrity endorsement over which the advertiser does not have any control.SupriyoPatra and Saroj K. Datta (2010) from their study concluded that selection of right and appropriate celebrity for brand endorsement is a challenging proposition. The advertisers and the agencies should consider various dimensions while celebrity selection. JayantSonwalkar, ManoharKapse and AnuradhaPathak (2011) concluded that celebrities act as major opinion leaders and plays a vital role in brand recall. They are helpful in initiating a desired state of needamong people but do not bring credibility to any advertising message.Prof. GurleenArora (2011) in her study stated that a celebrity can enhance the image of a product in many ways. It is the role of marketer to ensure the appropriate fit between the product and the celebrity. She further stated that Celebrity Endorsements, on one hand give support to the brand but in no way guarantees that the disadvantages associated with the same could be avoided.
  • STUDY ON IMPACT OF CELEBRITY ENDORSEMENT ON THE PURCHASING DECISION OF THE CONSUMER

    1. 1. STUDY ON IMPACT OF CELEBRITY ENDORSEMENT ON THE PURCHASING DECISION OF THE CONSUMER MET INSTITUTE OF MANAGEMENT, BANDRA eMBA Division: B Batch: 2013-15 In partial fulfilment of e-MBA Under esteemed guidance of : Prof. Sameer Virani
    2. 2. BY SHEFALI RAMAWAT-13065 ABHISHEK SETH-13001 ZAIN SHEIKH KHUSHBOO JAIN-13091
    3. 3. INDEX  INTRODUCTION  OBJECTIVES  HYPOTHESIS  METHODOLOGY  DATA COLLECTED  ANALYSIS OF THE DATA  REPORT  BIBLIOGRAPHY
    4. 4. INTRODUCTION  In a market where advertising plays a vital role in coordinating consumer purchases, it becomes pertinent for companies to induct all possible measures to influence, motivate and inculcate desire to purchase in the customer through an effective advertising campaign.  Theory and practice proves that the use of superstars in advertising generates lot of publicity and attention.  Companies invest large sums of money to align their brands and themselves with endorsers. Such endorsers are seen as dynamic with both attractive and likeable qualities and companies plan that these qualities are transferred to products via marketing communications activities.  Furthermore, because of their fame, celebrities serve not only to create and maintain attention, but also to achieve high recall rates for marketing communication messages in today’s highly cluttered environments.
    5. 5. CURRENT THEORETICAL & RESEARCH PERSPECTIVE  Celebrity endorsement is a type of communication that conveys the idea of the product (from the manufacturer) to the consumer using the image of the endorser  The stronger the endorser the higher is the impact of the product in the minds of the consumers.  celebrity endorser would lead to greater believability, a more favourable evaluation of the product and advertisement, and a significantly more positive purchase intension.
    6. 6. OBJECTIVES To understand the buying preference of the consumers in relation to gender.  To understand the influence of celebrity endorsement on purchasing decision of the consumer.  To understand the other factors like quality, price and affect the purchasing decision of the consumer
    7. 7. METHODOLOGY For the purpose of this project the objective and the hypothesis is considered and questionnaire is prepared using dichotomous scale as follows for consumer.
    8. 8. Questionnaire for the consumer
    9. 9.  1.What makes you notice a brand?  Quality  Advertisement  Endorsing  Celebrity  Price  Other  2.How frequent you watch advertisements.  Always  Often  Rare  Never
    10. 10. 3.Do you associate the celebrity directly with the quality and the performance of the product?  Yes  Everytime  Not really  No  Never 4.Will you stop buying a brand if your favourite celebrity endorsing it got involved in a scandal?  Strongly disagree  Disagree  Neutral  Agree  Strongly agree 5.Does your favourite celebrity give a positive image to the endorsed brand?  Strongly disagree  Disagree  Neutral  Agree  Strongly agree
    11. 11.  6.For how long do you associate a particular celebrity to a particular brand?  Temperory  Permanent  Cant say   7.How much do you think that the celebrity endorsement helps in making your shopping beneficial?  Strongly disagree  Disagree  Neutral  Agree  Strongly agree
    12. 12.  8.What type of celebrity endorsement peruades your personality to purchase products?  Film star  Famous personalities  Cricketer  Politician  9.what means of adv. Persuades you the most to purchase a product?  Television  Radio  Newspaper  Magazine  Internet
    13. 13. 10. Celebrity endorsement helps to recall the product easily.  Strongly disagree  Disagree  Neutral  Agree  Strongly agree
    14. 14. 1. what makes you notice a brand*(gender)? 1)quality 2)advertisement 3)endorsing 4)price 5)other. OBJECTIVE: To understand the buying preference of the consumers in relation to gender. HYPOTHESIS: There is no significant difference in buying preference of the consumer due to gender difference.
    15. 15. Q2.How frequent you watch advertisements? 1.Always 2.Often 3.Rare 4.Never OBJECTIVE: To understand the frequency level of the advertisements on the consumers. HYPOTHESIS: There is no significant impact of the advertisement on the consumers.
    16. 16. Q3.Do you associate the celebrity directly with the quality and performance of the product? 1.Yes 2.Everytime 3.Not really 4.No 5.Never OBJECTIVE: To understand whether celebrity has a direct association with the quality and perfomance of the product. HYPOTHESIS: There is no significant impact of the celebrity directly on the performance and quality of the product.
    17. 17. Association 16 4 40 30 10 association yes everytime not really no never
    18. 18. Q4.Will you stop buying a brand if your favourite celebrity endorsing it got involved in a scandal(gender)? 1.Strongly disagree 2.Disagree 3.Neutral 4.Agree 5.Strongly agree OBJECTIVE: To study the consumer preferences if its favourite celebrity endorsing it gets involved in a scandal. HYPOTHESIS: There is no significant difference on the brand due to the celebrity getting involved in a scandal.
    19. 19. Q6.For how long do you associate a particular celebrity to a particular brand? 1.Temporary 2.Permanent 3.Cant say OBJECTIVE:To understand for how long the consumers associate a particular celebrity to a particular brand.
    20. 20. Q 9.What means of advertisement persuades you the most to purchase a product? 1.t.v. 2.Radio 3.Newspaper 4.Magazine 5.Internet Q10.Celebrity endorsement hepls to recall the product easily? 1.Strongly disagree 2.Disagree 3.Neutral 4.Agree 5.Strongly agree
    21. 21. OBJECTIVE: To find out whether celebrity endorsement has an impact on advertisemnet. HYPOTHESIS: There is no significant impact of the celebrity endorsement on the advertisemnet.
    22. 22. HYPOTHESIS-1:Brand does not have an impact on the consumers. HYPOTHESIS-2-Personality does not have an impact on the consumers. HYPOTHESIS-3-Combination of brand and personality does not have an impact on the consumers.
    23. 23. Thank You

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