Risk associated with celebrity endorsements-                       An empirical analysis from PunjabReference:Indian Journ...
Samples selected for the study: A sample of 300 effective number of respondents      were selected on the basis of judgeme...
Upcoming SlideShare
Loading in …5
×

Risk associated with celebrity endorsements

1,504 views

Published on

Advertising is the most visible portion of the entire marketing effort. Behind every advertisement, there are thousands of hours spent in the research and development, data analysis, and creative conceptualization. The ultimate goal of advertisers is to attract the consumers’ attention.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,504
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Risk associated with celebrity endorsements

  1. 1. Risk associated with celebrity endorsements- An empirical analysis from PunjabReference:Indian Journal of MarketingVolume: 41 Number: 5 May, 2011 Page: 10-19AbstractIntroduction:Advertising is the most visible portion of the entire marketing effort. Behind everyadvertisement, there are thousands of hours spent in the research and development, dataanalysis, and creative conceptualization. The ultimate goal of advertisers is to attract theconsumers’ attention.Celebrity endorsement can be tracked back to the 1870s when Reverend Henry WardBecher (Brother of famous literature Harriet Becher Stowe) endorsed Waltham watches in aprint advertisement in Harpers Weekly.The first female celebrity endorser was Lillie Langtry, an English actress, who in 1893appeared on the packaging of Pears Soap.Celebrity endorsement has become an integral part of advertisement, this is a celebrity whomakes the advertisements more effective in the growing competition between theendorsements now-a-days. But there are always some potential risks that can tarnish theimage of an endorsed brand.Purpose:The purpose of the study was to find out the consumers’ perception regarding potential riskrelated to celebrity endorsement.Research Methodology: Sources of data: The study was based on the primary data which have been collected through a suitably framed questionnaire and by interviewing the respondents personally.Sapient Institute of Management, Indore Priya Soni
  2. 2. Samples selected for the study: A sample of 300 effective number of respondents were selected on the basis of judgement sampling, which is justified for exploratory studies. Respondents were also classified into two categories i.e. male and female. Area of the study: The study was conducted in the different rural and urban areas of Amritsar, Ludhiana and Jalandhar in Punjab. An attempt was made to take equal number of respondents from urban and rural areas. Framework of analysis: Correlation matrix, Kaiser-Meyar-Olkin Measures of Sampling Adequacy (MSA), Bartlett’s test of Sphericity, Cronbach’s alpha scaleFindings:The above study reveals that celebrity endorsement have become integral part ofadvertising, but there are some potential risks related with the use of celebrityendorsements. It was found that: Using celebrity endorsers is a risky business. There are five important factors related to the potential risks of celebrity endorsements, these are: o Multiple product endorsement o Financial risk o Tarnished brand image o Misleading advertising o Negative publicity All these factors indicate that celebrity endorsement itself are a great risk to the company because advertisers do not have control over these risks directly.Limitations: The study was conducted in the rural and urban areas of the Punjab only. Information gathering was a time consuming and costly affair in the physical market.Conclusion:Effectiveness of endorsement depends upon the involvement of consumers in theadvertisement. In the low involvement conditions, celebrity endorsements are very effective,but in the high involvement conditions, advertisers should use the facts and strong arguments inadvertisement to make an impact.Sapient Institute of Management, Indore Priya Soni

×