Impact of celebrity_endorcement_on_brands

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EXECUTIVE SUMMARY
The field of consumer behavior is the study of individuals, groups or organizations and
the processes they use to select, secure, use and dispose of product, services, experiences,
or ideas to satisfy needs and impacts that these processes have on the consumer and
society. And understanding the consumer behavior is the prime and toughest task in front
of every marketer. There are a lot of factors, which influence consumer buyer behavior.
This study aimed at to understand the “influence of celebrity endorsee on consumer
buying behavior and brand building.”
Marketers pay millions of Dollars to celebrity endorsee hoping that the stars will bring
their magic to brand they endorse and make them more appealing and successful. But all
celebrity glitter is not gold.
Celebrity sources may enhance attitude change for a variety of reasons. They may attract
more attention to the advertisement than would non-celebrities or in many cases, they
may be viewed as more credible than non-celebrities. Third, consumers may identify with
or desire to emulate the celebrity. Finally, consumer may associate known characteristics
of the celebrity with attributes of the product that coincide with their own needs or desire.
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 serf concept of the target market.
What therefore seems relevant by the study that yes definitely celebrity endorsee
influence consumer buying behavior and brand building but while using celebrity
endorsee, marketer has to take care of all the aspect that whether the brought personality
and image of celebrity matches or not, whether celebrity endorsee has deep penetration
among the masses or not, whether he is considered as credible source or not etc

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LITERATURE REVIEW
Literature Review of Celebrity Endorsement
Celebrity endorsement in mass media advertising has become a very beneficial
phenomenon for many countries and has significantly increased in the past decade, and
should be the main principle of brand communications since it is the key to marketing
success. Any product that is displayed in a television cmmercial or magazine
advertisement by a corporation that uses a celebrity or well known public figure to give a
testimonial or information about the product, is practicing celebrity endorsement.
Although commonly thought of starting in the United States, celebrity endorsement
began in India during the ‘80s but has since been adopted by countries in Asia, Europe,
and almost worldwide. Modern mass media (especially that of tabloids) has increased
exposure of celebrities to the point that it is unavoidable to not be exposed to a celebrity
face. The primary principle that celebrity endorsement works off of is the public
recognition of the celebrity endorser as an admirable or desirable cultural force. It is not
uncommon to view commercials from the past 10 years and see popular icons like
Britney Spears endorsing a particular soft drink like Pepsi or Michael Jordan endorsing
Nike as the number one brand for anyone that has even the slightest liking to sports.
These celebrities among many others, are used to promote products, services, and ideas
(Kambitsis et al., 2002). A reason for the increase in the usage of celebrity endorsing on
various levels of mass media is almost exclusively due to the fact that this strategy results
in more positive advertisement and product(Dean and Biswas, 2001), as well as an
increase in the purchasing of the product and in turn, increased finances for the producer
(Erdogan, 2001). ct ratings

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CELEBRITY ENDORCEMENT
A Definition of ‘Celebrity’
Celebrities are people who enjoy public recognition by a large share of certain
Group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special
skills are just examples and specific common characteristics cannot be observed, it can be
said that within a corresponding social group celebrities generally differ from the social
norm and enjoy a high degree of public awareness. This is true for classic forms of
celebrities, like actors (e.g. Meg Ryan, Pierce Brosnan), models (e.g. Naomi Campbell,
Gisele Buendchen), sports athletes (e.g. Anna Kournikova, Michael
Schumacher),entertainers (e.g. Oprah Winfrey, Conan O’Brien) and pop stars (e.g.
Madonna, David View Forbes.com (2002).Bowie) – but also for less obvious groups like
businessmen (e.g. Donald Trump, Bill Gates) or politicians (e.g. Rudy Giuliani, Lee
Kuan Yew). Celebrities appear in public in different ways. First, they appear in public
when fulfilling their profession, e.g. Pete Sampras, who plays tennis in front of an
audience in Wimbledon? Furthermore, celebrities appear in public by attending special
celebrity events, e.g. the Academy Awards, or world premieres of movies. In addition,
they are present in news, fashion magazines, and tabloids, which provide second source
information on events and the ‘private life’ of celebrities through mass-media channels
(e.g. Fox 5 news covering Winona Ryder’s trial on shoplifting, In Style). but not least,
celebrities act as spokespeople in advertising to promote products and services
(Kambitsis et al. 2002, Tom et al. 1992).

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Endorsee advertising
Hrithik Roshan, Aiswarya Rai, Aggasi, Samphas, Anna Kornikova, Saurav Ganguly &
Rahul Dravid Shah Rukh Khan, Sachin Tendulkar, Madonna, Bill Cosby Michael Jordan,
these names have become symbols of the role of endorsers in advertising. Firms spend
millions of dollars to sign up celebrities to endorse their products. Some popular
endorsers such as Michael Jordan earn as much as $40 million a year from endorsements
alone. Endorsement contracts are now so lucrative that many professionals in sports and
entertainment direct their careers to this end. In some sports, such as track and field
events, winning at the Olympics has pretty much become a means to subsequent
endorsement contracts.
Firms spend all this money on endorsements because finding the right celebrity endorser
for their products can pay tremendous dividends. For example, some brands such as
Nike's Air Jordan have been built around the image of a star. Nike earned over $200
million from its Air Jordan Lines of shoes and clothes in 1991 alone. Yet as the example
of Madonna suggests, celebrity endorsers cave a powerful means of communicating a
distinct image for a brand to target segment as well as a source of problems for the
advertiser. Other types of endorsers can be equally effective but cost much less.
Types of endorsers
A endorser is a person, character or organization that speaks or appears in an ad in
support of the advertiser or its claim. The terms endorser includes the terms spokesperson
or model. The endorsement process is the identification, selection and use of endorsers to
communicate with a target segment.
Endorsers can be grouped into three broad classes : experts, celebrities and lay endorsers.
Each has special characteristics and roles in the communication process. We will first
consider a definition of the three types of endorser and then describe their roles.

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ENDORSER ATTRIBUTES
Now that a distinction has been made between the two general types of advertising
endorsers, it is important to more formally explain endorser attributes and the role they
play bin facilitating communication effectiveness. Extensive research has demonstrated
that two basic attributes contribute to an endorser's effectiveness:
1. Attractiveness and
2. Credibility.
Each involves a different mechanism by which the endorser affects consumer attitudes
and behavior. Some of these points have already been mentioned, but a formal treatment
will now ensure that these key concepts are fully understood.
1. Attractiveness
Attractiveness does not mean simply physical attractiveness -although that can be a very
important attribute-but includes any number of virtuous characteristics that receivers may
perceive in an endorser intellectual skills, personality properties, lifestyle characteristics
athletic prowess and so on. The general concept of attractiveness consists of three related
ideas: similarity familiarity and liking. That is an endorser is considered attractive to
receivers if they share a sense of whether the two are similar in any respect. Gabriela
Stabbing, in another milk-mustache advertisement would seem to epitomize the use of
attractiveness and capture all dimensions of that concept. That is Sabatini, in addition to
her physical beauty, is attractive to tennis fans who are similar to her (in the sense that
they also play or enjoy tennis), are familiar with her (via watching her play on TV and
reading about her) and like her (due to her generally pleasant demeanor and fiery
competitive spirit).
When receivers find something in an endorser that they consider attractive persuasion
occurs via an identification process. That is when receivers perceive a source to be
attractive, they identify with the endorser and are very likely to adopt the attitudes,
behaviors, interests, or preferences of the source.
In other words, an attractive endorser does not necessarily benefit a product if there is a
poor match up between the endorser and the product.

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2. Credibility: In its most basic sense, credibility refers to the tendency to believe or trust
someone. When an information source such as an endorser, is perceived as credible the
source can change attitudes through a psychological process called internalization.
Internalization occurs when the receiver accepts the endorser's position on an issue as his
or her own. An internalized attitude tends to be maintained even if the source of th4e
message is forgotten or if the source switches to a different position.
Two important properties of endorser credibility are expertise and
trustworthiness. Expertise refers to the knowledge, experience or skills possessed by an
endorser as they relate to the communications topic. Hence, athletes are considered to be
experts when it comes to the endorsement of sport-related products. Expertise is a
perceived rather than an absolute phenomenon. Whether an endorser is deed an expert is
unimportant; al that matters is how he or she is perceived by the target audience. An
endorser perceived by an audience as an expert on a given subject is more persuasive in
changing audience opinions pertaining to his or her area of expertise than an endorser
who is not perceived as possessing the same characteristic. This no doubt explains the
extensive use of athletes to endorse sports-related product.
CELEBRITIES ENDORSEMENT IN ADVERTISING
Advertising pay million of dollars to celebrities, hoping that the stars will bring their
magic to the products and services they endorse and make them more appealing and
successful. Are the dollars well spent? Not always. Although actress Candice Bergen’s
“Dine Lady” portrayal for long-distance phone carrier Sprint was highly successful, and
Jaclyn Smith moved millions to buy her clothing line at Kmart, Cybill Shepered and
James Garner were discontinued as spokespersons for the Beef Industry Council. And a
Pepsi commercial featuring pop diva Madonna that cost mega millions to produce was
aired only once in the United States before being pulled off the air. Why? Why did
entertainer Bill Cosby fail as an endorser for E.F. Hutton despite his success for Jell-O
and Kodak? And what impact did boxing champion Mike Tyson’s rape conviction and
the allegations of child molestation and drug addiction against pop singer Michael
Jackson have on Pepsi, for which both were spokesmen?

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INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING
BEHAVIOR IN INDIAN CONTEXT
Towel-clad models can sell just about anything. Soaps shampoos, body lotions, safety
razors, electric hair removers, men's toiletry even ceramic tiles and bathroom fittings.
And if the model happens to be a television icon who enjoys a huge fan following among
youngsters, the product will sell like hot cakes. So when the Kerala-based S.V.Products
launched its new brand of sandalwood soap. It hired a celebrity to endorse the soap,
Result: A towel-clad Cyrus Broacha was hawking Chandrika soap on the idiot box.
When Bollywood heartthrob Revenna Tandan featured in the ad for Rotomac pens some
years ago, many people wondered whether it was a good idea to hire such a high-priced
model. But the strategy paid off and Rotomac today is a name to reckon with in the
writing instruments industry.
Using celebrities to peddle wares is not new for the Rs. 5,000 crore Indian advertising
industry. After all, it's easier to influence people if a celebrity is endorsing the product.
Says Imam Siddiqui, model coordinator, Ammirati Puris Lintas: "The strategy helps
because a celebrity is instantly recognizable and brand recognition becomes easy".
But that's where the similarity with the past ends. Now, even small and medium-sized
companies are roping in big names to sell their products. For instance, one of the highest
paid celebrity models, Sachin Tendulkar features in the Today's pen ads. That's not all.
Rani Mukherjee, who features in the high profile Pepsi ad along with Shah Rukh Khan
and Kajol is also endorsing the humble bicycle.
Also, many companies realize that the bigger the celebrity the better is the impact.
Instead of hiring smaller models at a lower price, they prefer to splurge on high-paid
models. Signing Shah Rukh Khan over Milind Soman makes better business sense, they
feel. For instance, when the Rajasthan-based textile manufacturer BSL Ltd. found that its
sales graph was not moving upwards, it decided to sign up model-turned-actress Sonali
Bendre. "Our previous campaigns lacked glamour. Now that short-coming has been set
right." Says BSL Marketing Manager R.P. Jhanwar. The company is confident that the
campaign will be able to boost sales during the oncoming festive season.

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Why do brands use celebrities?
•Brand may use celebrities for a variety of reasons. Getting attention may be one of the
reasons to use a celebrity in a category, which is very "crowded" or in a category where
involvement levels are low. Cema, a brand of bulb used a well-known celebrity to gain
attention in a category where a number of brands existed and where differentiation is hard
to achieve. Attention getting leads to recall especially when the consumer is in need of
the product. This recall may lead to trial especially in categories which are low
involvement and which have low unit cost (bulbs, commodities). Jams have a low
penetration in India and involvement levels have been low. NLL uses a sport celebrity for
its 'Jammy' TV commercial.
•Brand may use celebrities to convey an upmarket image. Pataudi, the cricket celebrity
with the regal touch has endorsed Royale, an upmarket brand from Asian Paints. This
celebrity also endorsed Gold Café (an instant coffee launched in the 80s), Gwalior
suitings and Kohinoor rice. All these brands have targeted upmarket consumers, not the
masses. Currently the same celebrity endorses Kohinoor brand of basmati rice along with
his spouse, a former actress.
•Brand may use celebrities to enhance the brand image in niche markets. Omega is an
upmarket brand of watches known for its classic appeal all over the world it has only
premium ranges. The Indian contest after the launch of titan is currently in a phase is
marked by the entry of a number of foreign brands. The upper end is also getting
crowded with brands like Rolex, Cartier, Raymond Well etc. Titan has also entered the
global market with its premium offerings. It is interesting to observe Omega using the
well known and glamorous Cindy Crawford with gift proposition and a jingle similar to
the Mozart background score used all along by Titan. The background score of Titan is
almost its brand property. The Omega commercial is frequently telecast on CNN, a niche
channel, besides being flashed in a few upmarket Indian magazines. Omega has a classic
image nurtured over decades. Titan advocated the gift proposition for a durable in India.
It may be difficult to make use of the proposition of Titan to become a brand for the

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masses. But a well-entrenched proposition could be made use of by a very strong brand to
create an impression on a small niche of upmarket consumers. Is Omega attempting to
make use of the 'anchored perception" to compete with formidable world-class brands (if
not directly with titan)?
•In low-involvement products, it has almost become a trend to use celebrity appeals. This
may be more effective if the brand pioneers celebrity usage. Though consumers are
getting use to the celebrity clutter, there is always a novelty appeal that a celebrity could
generate by being the first to be associated with a brand in the category. But is a leader in
instant coffee (chicory-based) and all along it has been using the filter taste as its
proposition. BBIL's Gre

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RESEARCH METHODOLOGY
Research can be defined as a scientific and systematic search for pertinent information on
a specific topic. Research methodology is the systematic way to solve the research
problem. It gives an idea about various steps adopted by the researcher in a systematic
manner with an objective to determine various manners.
MEANING OF RESEARCH:
“Systematized efforts to gain new knowledge”
Redman and Mary.
Research is the process of defining and re- defining problems formulating the different
hypothesis with suggested solutions by collecting, summarizing, organizing and
evaluating different data’s by thus reaching on solutions with careful testing. Research is
common means which refers to search for knowledge.
Research is scientific and systematic search for pertinent information on a specific topic.
“A Careful investigation or inquiry specially through search for new facts in any
branch of knowledge.

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Objective of the study
 To identify influence of celebrity endorsee on consumer buying behavior and
brand building .
 To study the motivating factors which influence consumer to buy the pdt.
 To study the believe of the customer on the pdt. specifically advertised by the
celebrities are of good quality.
 To study the most persuading factors to purchase the following pdt. i.e motor
vehicle, clothing, food pdt.
 To study the presence of celebrities in advertisement encourages to purchase the
pdt. or service or not.
 To study that celebrities also use those pdts. which they themselves endorse.
 To study that celebrity endorsement helps in brand promotion or not.

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Method of Conduct
Personal interviews were conducted, which included persons from advertising agencies
and customers
Research Instrument
Personal interviews were conducted, which included persons from advertising agencies
and customers.
The research instrument used for primary data collection was questionnaire.
The questionnaire was structured and most of the questions were closed ended.
The entire questionnaire was divided into three parts.
a. Ownership based
b. Buying behavior based
c. Role of celebrity endorsee based.
For the jury survey personal interviews were conducted.
Research design
Research design refers to pattern or an outline of a research proposal. It comprises a
series of prior decision that is together and provides a plan for executive a research
report. The research was exclusively exploratory in nature. The research design was
characterized by flexibility in order to be sensitive to the unexpected and to discover
insight not previously recognized.
As different states will covered in the study, so it will be altogether a self reported survey
and research design to conduct the study will be a survey design.

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Sampling Size: 50
Sampling technique: convenient sampling is used in this study.
Data collection
Primary Sources
Primary data is collected from the customers directly through questionnaire to understand
consumer behavior and role of celebrity endorsee ,primary data was collected from jury
survey (Persons from Advertising Agencies).
Secondary Sources
The secondary data has been taken from the company booklets, information manual and
web site of the company etc. It has been used to know about the history of the
organization, sales policy etc.
Secondary and Primary data was extensively analyzed. Secondary data was essentially
journals, magazines, academic books etc

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Limitations
 Time allotted to carry out the study was merely four weeks including holidays.
 Some of the responses might be biased.
 Most of the survey was carried out in and around Delhi only
 It was not possible for the researcher to meet more creative directors of the
agencies.
 It was not possible to collect the opinion of the celebrities who are endorsing
brands.

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INTRODUCTION OF THE TOPIC
WHAT IS A BRAND?
The word 'brand' is a comprehensive term. To brand is to name or mark indelibly as proof
of ownership. It means a sign or symbol of quality. It is the best means of advertising and
positioning in the market. Branding is the best means to capture and retain the consumer
demand in a competitive market. The marketer can create brand equity, brand loyalty and
brand image for his products.
Branding is the practice of giving a specified name to a product or group of products
from one seller. The specified name creates individually in the product; hence it can be
easily distinguished or recognized in the market from the rival products. The role purpose
of branding is to distinguish our branded product from those of competitors. A well
promoted brand name which has earned reputation in the market is very difficult to
complete with.
A brand cans levels of meaning:
 Attributes: A brand first brings to mind certain attributes. Thus, Mercedes suggest
expensive, well-built, well-engineered, durable, high prestige, high resale value, fast
and so on. The company may use one or more of these attributes to advertise the car.
For years Mercedes advertised, Engineered like no other car in the world. This
tagline served as the positioning platform for projecting the car's other attributes.
 Benefits: A brand is more than asset of attributes. Customers are not buying attributes
they are buying benefits. Attributes need to the translated into functional and/. Or
emotional benefits. The attribute durable could translate into the functional benefit. I
won't benefits. The attribute durable could translate into the functional benefit. The
attribute expensive might translate into the emotional benefit. The car helps me feel
important and admired. The attribute well built might translate into the functional and
emotional benefit. I am safe in case of an accident.

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 Values: The brand also says something about the producer's value. Thus, Mercedes
stands for high performance, safety, prestige, and so on. The brand marketer must
figure out the specific groups of car buyers who are seeking these values.
 Culture: the brand may represent a certain culture. The Mercedes represents German
culture; organized efficient, high quality.
 Personality: The brand can also project a certain personality. Mercedes may suggest
a no-nonsense boss (person), a regaining lion (animal), or an austere palace (object).
Some times it might take on the personality of an actual ell-known person or
spokesperson.
 User: The brand suggests the kind of consumer who buys or uses the product. We
would be surprised to see a 20 year-old secretary dragging a Mercedes. We would
expect, instead to see a 55- year old top executive behind the wheel. The users will be
those who respect the products' values, culture, and personality.
Branding Decision
The first decision is whether the company should develop a brand name of its product. In
the past, most products went unbranded. Producers and intermediaries sold their goods
out of brands, bins and cases, without any supplier identification. Buyers depended on the
Delhi's integrity. The earliest signs of branding were the medieval guilds efforts to
require crafts people to put trademark on their products to protect themselves and
consumers against inferior quality. In the five arts, too branding began with artists
signing their works.
Today, branding is such a strong face that the hardly any thing goes unbranded. Most of
the products and services now coming up with their brand name.

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CONSUMER BEHAVIOR
Whatever else we may be in our lives-child. Parent, student, worker, lover, jogger or
stamp collector- we are all consumers, all of our days. We buy and use goods and
services constantly, to eat; to wear, to read, to watch to play to travel in, to keep us
healthy, to make us wealthy and if not wise, at least better educated, the act of
consumption is therefore an integral and intimate part of our daily existence. And that a
there whether we have a lot of money to spend or very little.
In every long country of the world billions of purchases of goods and services are made
every year. In the U.S., for example, the activity now accounts per most of the economy-
some $ 4 trillion, or about two third of the annual gross national product.
BUYING BEHAVIOR
Consumer decision making varies with the type of buying decision. The decision to buy
toothpaste, a tennis racket, a personal computer and a new car are all very different.
Complex and expensive purchases are likely to more buyer deliberation and more
participants. Assael distinguished four types of consumer buying behavior based on the
degree of buyer involvement and the degree of differences among brands.
Complex Buying behavior
Consumers engage in complex buying behavior when they are highly involved in
involved in a purchase and aware of significant differences among brands. This is usually
the case when the product is expensive bought infrequently, risky and highly self-
expressive. Typically the consumer does not know much about the product category and
has much to learn. For example person buying a personal computer may not know what
attributes to look for many of the product features carry no meaning unless the buyer has
done handson research: "16K memory", "disk storage" "screen resolution," and so on.

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Complex buying behavior involves a three-step process. First the buyer develops beliefs
about the product. Second, he or she develops attitudes about the product. Third he or she
makes a thoughtful purchase choice. The consumer’s information gathering and
evaluation behavior. The market needs to develop strategies.
Dissonance - reducing buyer behavior
Sometimes the consumer is highly involved in a purchase but sees little difference in the
brands. The high involvement is based on the fact that the purchase is expensive,
infrequent, and ask. In this case the buyer will shop around to learn what is available but
will buy will by fairly quickly, perhaps responding primarily to a good price or to
purchase convenience. For example carpet buying is a high-involvement decision
because carpeting is expensive and self-expressive yet the buyer may consider most
carpet brands in a given price range to be the same.
After the purchase, the consumer might experience dissonance that stems from noticing
certain disquieting features of the carpet or hearing favorable thing about other carpets.
The consumer will be alert to information that justifies his or her decision.
Habitual buying behavior
Many products are bought under conditions of low consumer involvement and the
absences of significant brand differences consider salt. Consumer has little involvement
in this product category. They go to the store and reach for the brand. If they keep
reaching for the same brand it is out of habit not strong brand loyalty. There is good
evidence that consumers have low involvement with most low cost, frequently purchased
products. With low involvement products, consumer behavior does not pass through the
normal belief /attitude/behavior sequence. Consumers do not search extensively be
information about the brands, evaluate their characteristics, and make a weighty decision
on which brands to buy.

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Variety-Seeking Buying Behavior
Some buying situations characterized by low consumer involvement but significant brand
differences. He consumers often do a lot of brand switching. Think about cookies. The
consumer has some beliefs about cookies, chooses a brand of cookies without much
evaluation, and evaluates the product during consumption. But net time the consumer
may reach for another brand out of boredom or a wish for a different taste. Brand
switching occurs for the sake of variety rather than dissatisfaction.

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Data Analysis and Interpretation
Q1. What are the motivating factors when you plan to buy mobiles or
cars?
Response No. of respondents % of respondents
Discounts and offers 15 30%
Fewer prices 20 40%
Latest models and trends 10 20%
Celebrity endorsing the
products
5 10%
Total 50 100%
30%
40%
20%
10%
discount and offer
fewer prices
latest models and trend
celebrity endorsing

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Interpretation: In survey the motivation factor for buying car and mobile
are 30% discount offer, 40%fewer price 20% latest price and trend and 10 %
celebrity endorsing.
Q2. Do you believe products specificallyadvertisedby the celebrities
are of goodquality?
Yes 25 50%
No 10 20%
50 % 10 20%
Not sure 5 10%
Total 50 100%
Interpretation: In the survey 50%respondent are saying yes 20%
respondent are saying no,20% respondentare saying 50-50
50%
20%
20%
10%
Yes
no
50%
not sure

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and10%respondent are not sure about the product advertisement by the
celebrity are good quality product.
Q3. What is the most persuading factorto purchase the following
products?
Motorvehicle No. of respondents % of respondents
Brand name 15 30%
Celebrity 20 40%
Luxury 10 20%
Self esteem 5 10%
Total 50 100%
30%
40%
20%
10%
motor vehicle
brand name
celebrity
luxury
self esteem

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Interpretation: In the survey the persuading factor to buy the productis
30% brand name 40% celebrity, 20% luxury and 10% self esteem.
b) CLOTHING
Clothing No. of respondents % of respondents
Brand name 20 40%
Celebrity 10 20%
Status 15 30%
cost 5 10%
total 50 100%
Interpretation: In the survey I found that the most persuading factor in
clothing is 40% brand name 20% celebrity 30% status and 10% cost.
40%
20%
30%
10%
clothing
brand name
celebrity
status
cost

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c) FOOD PRODUCTS
Foodproducts No. of respondents % of respondents
Celebrity 7 14%
Attractive package 8 16%
Quality 15 30%
Brand name 20 40%
total 50 100%
14%
16%
30%
40%
food products
celebrity
attractive package
quality
brand name

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Interpretation: In the survey I found that the most persuading factor to buy
the food pdt. Is 14% celebrity,16% attractive package, 30% quality and 40%
brand name.
Q4. Companies are investing large amounts of money for using
celebrities;do you think its helping them to increase their total
revenue?
Yes 35 70%
No 10 20%
Don’t know 5 10%
Total 50 100%

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Interpretation: In the survey It is noticed that investing large amount of
money for using celebrity help to increase the revenue 70% respondent are
saying yes ,20% respondentare saying no and 10% respondent don’tknow.
Q5. What type of celebrity endorsementpersuades you personally to
purchase products?
Film star 25 50%
Famous personalities 20 40%
Cricketer 4 8%
Politician 1 2%
Total 50 100%
70%
20%
10%
yes
no
don't know

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Interpretation: In the survey it is found that 50% respondent respond film
star, 40% famous personalities, 8% cricket and 2% politician for the type of
celebrity endorsement persuades you personally to purchase products.
Q6. Does the presence ofcelebrities like Shahrukh Khan, Amitabh
Bachanor Aishwariya Rai in an advertisement encouragesyou to
purchase the product or service?
Response No. of respondent % of respondent
Yes 25 50%
No 22 44%
Not sure 3 6%
Total 50 100%
50%
40%
8%
2%
film star
famous personalities
cricket
politician

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Interpretation: In the survey it is found that 50% respondent respond yes
the presence of celebrities like Shahrukh Khan, Amitabh Bachan or
Aishwariya Rai in an advertisement encourages to purchase the productor
service , 44% respond no and 6% are not sure.
Q7. Do you believe the celebrities also use those products which they
themselves endorse?
Response No. of respondents % of respondent
Yes 23 46%
No 25 50%
Not sure 2 4%
Total 50 100%
50%
44%
6%
yes
no
not sure

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Interpretation: In the survey it is found that the 46% respondent believe
that celebrities also use those products which they themselves endorse, 50%
respond no and 4% are not sure.
Q8. Please rate the following celebrities as a brand endorser:-
a) Aishwariya Rai for L’Oreal
Rate No. of respondents % of respondents
Excellent 44 88%
Average 3 6%
Poor 2 4%
Unsure 1 2%
Total 50 100%
46%
50%
4%
yes
no
not sure

30
Interpretation: In the survey celebrity as a brand endrosment ashwariya rai
for l’oreal 88% rate as excellent, 6% rate as average, 4% rate as poorand 2%
rate as unsure.
b) Amir Khan for coca cola
Excellent 20 40%
Average 20 40%
Poor 5 10%
Unrate 5. 10%
Total 50 100%
88%
6%
4%
2%
excellent
average
poor
unsure

31
Interpretation: In the survey celebrity as a brand endrosment amir khan for
cocacola 40% rate as excellent, 40% rate as average, 10% rate as poorand
10% rate as unrate.
c) Sushmita Senfor Olay creams
Excellent 25 50%
Average 20 40%
Poor 3 6%
Unrate 2 4%
total 50 100%
40%
40%
10%
10%
amir khan for coca cola
excellent
average
poor
unrate

32
Interpretation: In the survey celebrity as a brand endrosment sushmita sen
for olay creams 50% rate as excellent, 40% rate as average, 6% rate as poor
and 4% rate as unrate.
Q9. What do you value the most when purchasing a product?
Price of the product 15 30%
Celebrity endorsement 5 10%
Quality of the product 20 40%
Value of the product 10 20%
Total 50 100%
50%
40%
6%
4%
excellent
average
poor
unrate

33
Interpretation: In the survey I find that the 15% of respondents respond
price of the product value the most when purchasing a product ,5% respond
celebrity endorsment 20% respond quality of the productand 10% respond
value of the product.
Q10. Does celebrityendorsementhelp in brand promotion?
Yes 35 70%
No 10 20%
Not sure 5 10%
Total 50 100%
30%
10%
40%
20%
price of the product
celebrity endrosment
quality of the product
value of the product

34
Interpretation: In the survey I found that the 70% of respondents says yes
celebrity endorsement help in brand promotion, 20% says no and 10% are
not sure.
Q11. What means of advertisements persuades you the most to
purchase a product?
Television 25 50%
Radio 5 10%
Newspaper 10 20%
Magazines 5 10%
Internet 5 10%
70%
20%
10%
yes
no
not sure

35
Total 50 100%
Interpretation: In the survey I find that the 50% of respondents respond
television as a means of advertisements persuades the most to purchase a
product 10% respond radio 20% respond newspaper 10% magazines and
10% internet.
Q12. What do you think is the reasonfor the companies to choose
celebrity endorsement for promoting their products?
response No. of
respondents
% of respondents
Easy recognition
of product
8 16%
Can’t generate new
ideas
7 14%
To be able to 25 50%
50%
10%
20%
10%
10%
television
radio
newspaper
magazines
internet

36
increase sales and
profit
To complete
strongly
10 20%
total 50 100%
Interpretation: In the survey I found that the 16% of respondents respond easy
recognition of product, 14% can’t generate new ideas 50% to be able to increase sales
and profit and 20% to complete strongly for the reason for the companies to choose
celebrity endorsement for promoting their products.
FINDINGS
 In survey the motivation factor for buying car and mobile are 30% discount offer,
40% fewer price 20% latest price and trend and 10 % celebrity endorsing.
 In the survey 50%respondent are saying yes 20% respondent are saying no,20%
respondent are saying 50-50 and10%respondent are not sure about the product
advertisement by the celebrity are good quality product.
16%
14%
50%
20%
easy recognition of product
can't generate new ideas
to be able to increase sales and
profit
to compltete strongly

37
 In the survey the persuading factor to buy the product is 30% brand name 40%
celebrity, 20% luxury and 10% self esteem.
 In the survey I found that the most persuading factor in clothing is 40% brand
name 20% celebrity 30% status and 10% cost.
 In the survey I found that the most persuading factor to buy the food pdt. Is 14%
celebrity,16% attractive package, 30% quality and 40% brand name.
 In the survey It is noticed that investing large amount of money for using
celebrity help to increase the revenue 70% respondent are saying yes ,20%
respondent are saying no and 10% respondent don’t know.
 In the survey it is found that 50% respondent respond film star, 40% famous
personalities, 8% cricket and 2% politician for the type of celebrity endorsement
persuades you personally to purchase products.
 In the survey it is found that 50% respondent respond yes the presence of
celebrities like Shahrukh Khan, Amitabh Bachan or Aishwariya Rai in an
advertisement encourages to purchase the product or service , 44% respond no
and 6% are not sure.
 In the survey it is found that the 46% respondent believe that celebrities also use
those products which they themselves endorse, 50% respond no and 4% are not
sure.
 In the survey celebrity as a brand endorsement ashwariya rai for l’oreal 88% rate
as excellent, 6% rate as average, 4% rate as poor and 2% rate as unsure.
 In the survey celebrity as a brand endorsement amir khan for coca cola 40% rate
as excellent, 40% rate as average, 10% rate as poor and 10% rate as unrate.

38
 In the survey celebrity as a brand endorsement sushmita sen for olay creams 50%
rate as excellent, 40% rate as average, 6% rate as poor and 4% rate as unrate.
 In the survey I find that the 15% of respondents respond price of the product
value the most when purchasing a product ,5% respond celebrity endorsment 20%
respond quality of the product and 10% respond value of the product.
 In the survey I found that the 70% of respondents says yes celebrity endorsement
help in brand promotion, 20% says no and 10% are not sure.
 In the survey I find that the 50% of respondents respond television as a means of
advertisements persuades the most to purchase a product 10% respond radio 20%
respond newspaper 10% magazines and 10% internet.
 In the survey I found that the 16% of respondents respond easy recognition of
product, 14% can’t generate new ideas 50% to be able to increase sales and profit
and 20% to complete strongly for the reason for the companies to choose celebrity
endorsement for promoting their products.
CONCLUSION
Celebrity spokes persons in advertising to endorse brands. A brief assessment of the
current market situation indicates, that celebrity endorsement advertising strategies can
under the right circumstances indeed justify the high costs associated with this form of
advertising. However, as several failures show, it is essential for advertisers to be aware
of the complex processes underlying celebrity Endorsement, by gaining an
understanding of the described concepts of source credibility and attractiveness, match-
up hypothesis, meaning transfer model, multiple product and celebrity endorsement.

39
While these concepts can help to answer the question if and when celebrity advertising
investments pay off, it has to be the goal of further research efforts to develop an
extensive, consistent and user-friendly tool to avoid arbitrary decisions and enhance the
strategic character of
celebrity sponsorship decisions.Understanding buying behavior of customer is the
toughest task for a marker, we can identify the factors, which influence purchase
decisions, but it is next to impossible to know which factor influence when. We have
countless permutation and combination for it, each individual has different behavior and
different influencing factors. Marketers spend millions of dollars on advertising and
especially on celebrities. Hoping that the stars will bring their magic to the products and
services they endorse and make them more appealing a successful. But, all that celebrity
glitter is not gold, but it can be. It appropriately used celebrity advertising has pay off and
definite influenced the purchase decision. Celebrity endorsement does a premium in term
of impact and memorability. There is also a position influence on persuasion, though less
strong.
It is not enough that the celebrity is the advertising be
remembered, more important, the brand must be. In using celebrities as endorsed,
advertisers need to understand not only how to choose celebrities but also how to use
them in advertising. The strategy and creative execution should reinforce strongly and
consistently the celebrity brand association. And the celebrity should not only evoke
positive retains, but helps focus attention on the brand in the advertising. Thus the
product will be made more desirable because of its association with the star.
RECOMMENDATION
 The cost of brand ambassador should be low, so that the prices of the product sold
in the market be reasonable or low price.
 The quality of the product should be good as advertised in the television.

40
 The celebrities should also use those products which they themselves endorse.
 The celebrity must be loyal towards the endorsed product.
BIBLIOGRAPHY
BOOKS
 Advertising and Sales Promotion strategy by Gerard J. Thellis.
 Marketing Management 9th Edition by Philip Kotler
 Kothari C.R – Research methodology

41
WEBSITES
 www.google.com
 www.wikipedia.co
QUESTIONNAIRE
Name :
.
Email address :
Gender:
• Male

42
• Female
Age:
• 13-19
• 20-30
• 30-40
• 40-50
• 50 and Above
Q1. What are the motivating factors when you plan to buy mobiles or
cars?
• Discounts and offers
• Fewer prices
• Latest models and trends
• Celebrity endorsing the product
Q2. Do you believe products specificallyadvertised by the celebrities are
of goodquality?
• Yes
• No
• 50%
• Not sure
Q3. What is the most persuading factor to purchase the following
products?
a) Motor vehicle?

43
• Brand Name
• Celebrity
• Luxury
• Self Esteem
b) Clothing
• Brand Name
• Celebrity
• Status
• Cost
c) Food Products
Celebrity•
Attractive Package•
Quality•
Brand Name•
Q4. Companies are investing large amounts of money for using
celebrities;do you think its helping them to increase their total
revenue?
Yes•
No•

44
Don’t know•
Q5. Does the presence ofcelebrities like Shahrukh Khan, Amitabh
Bachanor Aishwariya Rai in an advertisement encouragesyou to
purchase the product or service?
Yes•
No•
Not sure•
Q6. Do you believe the celebrities also use those products which they
themselves endorse?
Yes•
No•
Not sure•
Q7. Please rate the following celebrities as a brand endorser:-
a) Aishwariya Rai for L’Oreal
Excellent•
Average•
Poor•

45
Unsure•
b) Amir Khan for cocacola
Excellent•
Average•
Poor•
Can’t rate•
c) Sushmita Sen for Olay creams
Excellent•
Average•
Poor•
Can’t rate
Q8. What do you value the most when purchasing a product?
Price of the product •
Celebrity endorsement •
Quality of the product •
Value for money •
Q9. Does celebrityendorsement help in brand promotion?
Yes•
No•
Not sure•
Q10. What means of advertisements persuades you the most to
purchase a product?

46
• Television
• Radio
• Newspaper
• Magazines
• Internet
Q11. What do you think is the reasonfor the companies to choose
celebrity endorsement for promoting their products?
Easy recognition of product•
Can’t generate new ideas•
to be able to increase sales and profit•
To compete strongly•
Q12. What type of celebrity endorsementpersuades you personallyto
purchase products?
• Film star
• Famous personalities
• Cricketer
• Politician

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