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  1. 1. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 The impact of Celebrity endorsed tv commercials on demographic dynamics of attitude: AN INDIAN CONTEXT Dr. Saroj Kumar Dash Mr. Deepti Ranjan Sabat Associate Professor Assistant Professor in Management Department of Management Studies, MITS Engineering College, Rayagada Skyline Institute of Engineering and Technology, Odisha, India. Greater Noida, Uttar Pradesh, India-201308Abstract— Our country is a place where people not only love services and so on. The celebrities used are most movie starsthe celebrities, but they worship celebrities. Whether it is a and sports persons. The purpose of this study is to gain aBollywood sensation like Salman Khan, Amitabh Bahchan, deeper understanding of demographic aspects behind aJuhi Chawla or a sportsperson like Sachin Tendulkar, MS company’s choice of celebrity endorsement as part of itsDhoni, Sania Mirza and Saina Nehwal. For the common man promotional strategy while positioning its brand to athey are just like dreams. The marketers are well aware of this particular segment of whole consumer set.fact and that’s why they use the celebrities to not only to target To properly achieve the purpose face to face to interviews withand retain their existing customers but the potential ones too. the customers in five towns of Ganjam District of the State ofCelebrity endorsement has gained great importance since last Odisha in India were conducted. The gathered data from thedecade. Every organization now depends on celebrity survey is discussed, analyzed and then used to drawadvertising upto a great extent for their brand promotion conclusions. The overall conclusions from this study are thatrather adding value to their brand. The right combination of the organizations should go for celebrity as endorser in TVcelebrity and product is very essential. If properly executed, it ads with a clear demographic perspective of the targetcan do wonders for the brand but the mismatch can be audiences. Obviously it brings the brand more media exposuredisastrous too, not only for the brand but for the celebrity as than other forms of endorsements but subject to thewell. The success of a celebrity determines the number of considerations of the demographic factors of the prospects.products they endorse. Celebrity endorsements have great Key Words: Celebrity Endorsement, Brand Recall.impact on the audiences’ purchase decisions and guide them I. INTRODUCTIONto take the decision. The Indian market is witnessing dynamic In the world of advertisement ‘Celebrity Endorsement’ has turnchanges every day but one thing that remains throughout the out to be an additional name. Today, the use of celebritytime span is the changing impact of celebrities with their advertising for companies has become a trend and a perceivedsuccess and popularity. winning formula of corporate image building and productToday companies choose to utilize celebrities as endorsers in marketing. Almost every company, nowadays, is mooring intheir marketing campaigns to survive and moreover to reach famous celebrities in order to create customer and thus toat excellence in competitive "shake-out". This strategy has increase the market share. Marketers now seek to adopt 360grown more popular than ever. Celebrity endorsements span degree brand stewardship. With this perspective a brand seesacross different product categories like food and beverages, no limits on the number of contact points possible with a targetpaints, appliances, readymade garments, hotels, banking consumer to position it with an objective of long term inflow. 192
  2. 2. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012Advertising ideas, thus, revolve around this approach, and the from is all about the consumers’ association towards a celebritycelebrity endorsement decisions are made through these endorsed product. Is really celebrity endorsement beneficial forstrategic motives. the organization in long term perspective or it is just to play aThree of humankinds greatest inventions— cinema, radio, and game for once in the field is another question that subsequentlytelevision, have extended the scope of endorsement as an arise. Is really it increases the purchase intention of theadvertising technique. At the time period of 80s, the rationale prospects? The question is that which factors guide thebehind using celebrities was "the spirit of emulation" (Fox, customers to make a decision regarding a good or a service1984, p.90). Today, use of celebrities as part of marketing when the organization is rendering the messages throughcommunications strategy is fairly common practice for major different media by the word of mouth of big celebrities of time.firms in supporting corporate or brand imagery. Experts’ The study will try to give a focus on these aspects on the basisopinion in this aspect is that celebrity endorsement provides a of a very short sample study. It will try to make a link betweendistinct differentiation in a market with a very high propagation the Celebrity Endorsement and the consumer perception andof local, regional and international brands in the perspective of attitude towards the endorsement and ultimately the endorsedthe fact that celebrity’s word-of-mouth helps to certify the product. The study will try to explore whether celebritybrand’s claim. It helps to position the product into the target endorsement help to build a positive belief and attitude towardsmarket by extending his/her personality, popularity, status in the product?the society or expertise in the field to the brand. Moreover theexpert view is that it helps to increase the recall value of the II. CONNOISSEURS’ VIEW OF CELEBRITY ENDORSEMENTbrand and truly sincere endorsement by a ‘celebrity’ carries Giving a brand a face is more than just a marketing strategyenormous weight within many sectors of society. The health of to increase sales or gain market share. A truly designeda brand can definitely be improved up to some extent by celebrity endorsed commercial can change the future of thecelebrity endorsement if one can remember that endorsing a brand forever (Blazey & Ganti, 2005) and as celebrities enjoycelebrity is a means to an end and not an end in itself. public recognition a company can bank on this while this faceA whole new celebrity endorsement opportunity has cropped in opens his/her mouth on behalf of the company producedthe backdrop of ‘Shining India’. In India Hindustan Unilever consumer product by appearing with it in an advertisementLtd has roped in Bollywood stars to endorse their beauty soap (McCracken 1989). Specific image, high profile andLux since 1950s. Vimal, Thums-Up and Gwalior are some of familiarity of a celebrity endorser make the advertisementthe other brands that have used star appeal during their early distinctive and thus improve the communicative ability (Atkindays of mass advertising. British actress Lillie Langtry became and Block, 1983; Sherman, 1985). The use of celebritythe world’s first celebrity endorser when was appeared on a spokespersons help advertisers to stand out from the crowdpackage of Pears Soap in 1893 (Bergstrom, Sharfstad, 2004). and get attention (Kaikati, 1987). Research has shown that inIn US 20 per cent of all TV commercials feature famous general celebrity endorsement influences the feelings of thepersonalities and close to 10 per cent of television advertising consumers and can also influence the attitude the consumersbudget in the US goes for celebrity endorsements1. have towards the advertisement and attitude towards the Celebrity endorsement is about endorsing products with brands, which can increase the purchase intentions and,help from a celebrity. The obvious question that arise here- consequently, increase sales. Academic findings and company reports safely argue that celebrity endorsers are more effective than non-celebrity endorsers when it comes to generating all 193
  3. 3. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012desirable outcomes e.g. attitude towards advertising and million; Tiger Woods for Nike’s golf advertisements $18endorsed brand, intensions to purchase and actual sales million).(Erdogan, 1999). Celebrity deliver meaning of extra subtlety, But Tom et al. (1992) found that created endorsers were moredepth and power (McCracken, 1989). Jagdish and Wagner effective in creating a link to the product than celebrity(1995) state that celebrities make advertisements believable endorsers. Non-celebrity endorsed advertisements can alsoand enhance message recall. One market research findings gain positive ‘attitudes towards the advertisement’, ‘attitudefocused on the fact that 8 out of 10 TV commercials scoring towards the brand’ that was being advertised and ‘intentions tothe highest recall are those with celebrities appearances purchase endorsed brands’ (Mehta, 1994). When brazen out(Media, Nov. 14, 1997). Celebrities aid in the recognition of with non-celebrity endorsers, consumers were significantlybrand names, create positive attitudes towards the brand and more focused on the brand and its features, whereas withcreate a distinct personality for the endorsed brand. A major celebrity endorsers the subjects were significantly morecelebrity endorser has the potential to influence the concentrated on the celebrity in the advertisement (Tom et al.,profitability of the product he or she endorses (Mathur et al 1992). In general, potential hazards of celebrity endorsement1997). Potential advantages of utilizing celebrity endorsers are are the costs and that the possibility that the celebritythat it can increase attention, polish the image of the brand, overshadows the brand, or that it can change the image, thatespecially when a brand is going to be introduced in the overexposure of the celebrity takes place, especially when amarket or a repositioning of a brand will take place (De celebrity become an endorser for many different productsPelsmacker, 2004). A celebrity endorser used in an (Zafer Erdogan, 1999). Moreover, companies have limitedadvertisement can be interpreted as aspirational reference control over the celebritys personality which can also result ingroup that serves as a point of comparison or reference for an high risk and “no gain” situations (e.g. the “scandals”individual by communicating values, attitudes and providing a surrounding celebrities like Michael Jackson, Kate Moss,specific guide for behavior (Schiffman and Kanuk, 2004). Britney Spears, Paris Hilton). When negative information isThough the consumer does not belong to the group but is spread about a celebrity, it influences not only the consumer’swilling to be ‘associated’ with this group and are willing to view of the celebrity, but also the endorsed product (Klebbabehave like members of the aspiration group (De Pelsmacker and Unger, 1982). Moreover in the case of multipleet al. 2004). endorsements, both in terms of a single brand hiring multipleCompanies invest large sums of money to align their brands celebrities and that of a single celebrity endorsing multiplewith celebrity endorsers. Research has shown that the fame brands, consumers do get confused about the brand endorsed.of celebrities create and maintain attention of the consumers When a single celebrity endorses numerous brands, the recalland additionally also achieve high message recall (Ohanian, then gets reduced and reduces the popularity of the brand. Not1991; OMahony and Meenaghan, 1997). And today inspired many people can remember all the brands that a celebrityby the declining effectiveness of the different marketing endorses and the chances of losing brand recall increases if thecommunications (Blondé and Roozen, 2006) - the advertising celebrity endorses multiple brands (Taleja, 2005). However,industry is willing to pay the increasing rewards the celebrities Atkin and Block (1983) and Petty et al. (1983) have found theare asking (the costs of the spot with Nicole Kidman for opposite results of Mehta (1994). De Pelsmacker’s view in thisChanel V amount to 7.5 million Euro; David Beckham for regard is that, pre-testing and careful planning is veryAdidas $160 million; Gilette $68 million and Pepsi $25.5 important and the life-cycle stage of the celebrity has also been taken into account (De Pelsmacker, 2004). 194
  4. 4. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012The theories like ‘Source Credibility Theory’, ‘Source eminent in lifestyle products like clothes, perfumes, cellAttractiveness Theory’ and ‘Meaning Transfer Theory’ phones etc.provide a basis on which the methodology of celebrity III. PORTRAYAL OF RECENT TIME CELEBRITYendorsement works and also explains how the process of the ENDORSEMENT SCENARIO FOR BRANDS IN INDIA INcelebrity endorsement influences the minds of the consumers: TV COMMERCIALS India is one country, which has always idolized the stars of theSource Credibility Theory (by Tellis): This theory tells that celluloid world. There is a big deal about Celebrityacceptance of the ad message depends on Expertness Endorsements in India. In the battle for mindshare and market(perceived ability of the source to make valid assertions) and share, companies in India have gone out of their way andTrustworthiness (perceived willingness of the source to make hired celebrities to endorse their brands. It makes tremendousvalid assertions) of the source. Audience acceptance increases sense for a brand to procure a celebrity for its endorsement.with the expertness of the source and the ability of the Around 130 television channels in India are broadcasting overaudience to evaluate the product. 3 million television commercials each year in India. This isSource Attractiveness Theory (based on social psychological perhaps enough to demonstrate the media-explosion scenario.research): the acceptance of the message depends on According to the report of AdEx India, a division of TAMfamiliarity (audiences knowledge of the source through Media Research, in the 1st quarter of the year 2008 60% of allexposure), likeability (the affection for the sources physical advertising dollars were spent on ads carrying celebritiesappearance and behavior) and similarity (resemblance which were just 25% in the year. 49% growth was experiencedbetween source and receiver). This theory explains the in celebrity endorsement advertising volumes on TV duringmessage acceptance in two ways: Identification and the year 2007 as compared to the previous year. There were inConditioning. total 745 celebrity endorsements in 2007 as against 499 inMeaning Transfer Theory (by Grant McCracken): The 2006.Television ads with film stars or cricketers as modelstheory explains that a celebrity encodes a unique set of have notched up 60% more airtime in 2006 over the previousmeanings which if well used can be transferred to the endorsed year, with 53 brands using cricketers and 191 film stars,product. Such a transfer takes place in three stages: according to a study by Adex India. Today, the celebrityI. Encoding Meanings: Each celebrity has a unique set of endorsement industry is worth Rs.550 crore and is growing atmeanings such as age, gender, race, wealth, personality or high double digit growth rate ranging between 60- In this way, the celebrities encode a set of meanings Experts predict the growth rate to touch even triple digits,in their image. For example Preity Zinta can be seen as a soon. 2lively, charming, bubbly, witty and enthusiastic. Indian ad industry saw the swelling of a new trend in the latterII. Meaning Transfer: This stage transfers those meanings to part of the 80s. Hindi film and TV stars as well asthe product. When skillfully portrayed, celebrities can sportspersons were roped in to endorse prominent brands. Onecommunicate this image more powerfully than lay endorsers. of the first sports endorsements in India was when FarokhIII. Meaning Capture: This assumes that consumers purchase Engineer became the first Indian cricketer to model for Brylproducts not merely for their functional value but also for their cream. The Indian cricket team now earns roughly Rs. 100cultural and symbolic value.The theory says that consumers buy the endorsed product withthe intention of capturing some of the desirable meanings withwhich celebrities have passed on to the product. This is more 195
  5. 5. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012crore through endorsements (Kulkarni & Gaulkar, 2005). 2007 compared to 2006 and in fact, it has grown six times inAdvertisements, featuring stars like Tabassum (Prestige volume terms between 2003 and 2007 (Figure 1(a)). It is ofpressure cookers), Jalal Agha (Pan Parag), Kapil Dev worth mentioning in this context that celebrities from the film(Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh industry accounted for 81 per cent share of the overallSuitings) became common. When Palmolive used Kapil Dev celebrity endorsement ad pie on TV during the year 2007 andin the 80s, his line Palmolive da jawaab nahin became 2008, while male actors accounting a greater share than thefamous -- it is remembered even today. Pataudi gave Gwalior actress. Sports and TV personalities followed the filmsuitings a strong competitive edge and pushed it to Number 2 celebrities in the endorsements race (Figure1 (b) & 1(c)).in perceptions in the suitings market. Even Sridevi made Cema Shahrukh Khan remains in no.1 position for the year 2007 andbulbs and tubes memorable by dancing in a bulb! Probably, 2008 with respect to the no. of endorsement.the first advertisement to cash in on star power in a strategic, The celebrity endorsed scenario of TV commercials revealedlong-term, mission statement kind of way was Lux soap. And the fact that the FMCG producers mostly roped into theexperts’ comment in this regard is that this strategic decision celebrities’ fame, status, recognition, and image. In summerof celebrity endorsement has helped to make this brand the top cool product category ‘Pepsi Mycan leads with maximumthree in the country for much of its lifetime. share of 33 per cent of overall advertising volumes ofIn India there is an exponential potential for a celebrity Celebrity endorsement on TV during January - April 2008 andendorsement to be perceived as genuinely relevant, thereby Thums Up and Coca Cola followed the number one (Pepsimotivating consumers to go in for the product. This was Mycan) with 19 per cent and 9 per cent share respectivelyproved true when the endorser and the category are a natural during January - April 2008. Shahrukh Khan led the Celebritylifestyle fit like sportspersons and footwear or health drinks endorsement chart of Summer Cool categories on TV closelylike Kapil-Sachin and Boost or film stars and beauty products followed by Akshay Kumar and Ranbir Kapoor duringlike Aishwarya and Nakshtra or Lux. It is a fact that the best January – April 2008. In cellular phone category also the Khanendorsements achieve an eclectic balance between the product also plays the role of king. But in cellular phone service(brand) and the celebrity. (Blazey & Ganti, 2005). People category R Madhavan has snatched the position.forget 80% of the information in just 24 hours! And this is In the Indian context, numerous examples can be uttered topinpointing none other than the plight of the marketer to make establish the hypothesis that celebrity endorsements canhis brand shout over the deafening clutter of all the brands! embellish the overall brand. A standard example is Coke,Somewhere in the 80’s, the Indian marketer found the which, till recently, didnt use stars at all internationally. Insolution, Celebrity Endorsement’ for the brand. A piece of fact, India was a first for them. The result was a ubiquitouslyresearch states that the target audience age group of 15-30 gets appealing Aamir cheekily stating Thanda matlab Coca Cola.influenced first by cricketers, then Bollywood stars and only Study reveals that the recall value for Nakshatra advertising isthen music, festivals and food (Kulkarni, Gaulkar, 2005). only due to the sensuous Aishwarya. The Parker pen brandFollowing section is portraying a recent scenario of celebrity used Amitabh Bachchan to revitalize the brand in India.endorsement of commercials on TV in India as studied by According to Pooja Jain, Director, Luxor Writing InstrumentsAdEx India, a division of TAM Media Research. Their study Ltd (LWIL), post Bachchan, Parkers sales have increased byfinds that celebrity endorsement on TV has been on a growth about 30 per cent. Star power in India can be gauged by thecurve. As already mentioned there has been 49 per cent successful endorsement done by Sharukh for three honchos-growth in celebrity endorsement ad volumes on TV during Pepsi, Clinic All Clear and Santro. Irfan Pathan endorsing 196
  6. 6. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012Hero Cycles has gained the brand immense recall and suggests that the use of anonymous models or even noembarked through the positive association between the celebrity is still an option that should be investigated seriously.consumer and the brand. Richard Geres endorsement for The review of the literature has also shown that the matchVISA in India has gained acclaim. Compatible celebrity between the brand and or product and the celebrity has to beproduct match in which celebrity brand attributes get optimal. When a brand and/or product is endorsed by atransferred to the brand and increases the brand equity is of celebrity endorser, the perceived celebrity image and theMallaika Arora & Freshizza from Pizza Hut, Govinda & perceived brand image will interact with each other andNavratan Tel, Sanjay Dutt & Elf Oil, Sunny Deol & Lux images will be transferred from the endorsed brand to theUndergarments, Aishwarya Rai & Nakshatra, etc. celebrity endorser and vice versa. MG Parmeswaran,Celebrity branding is all about the transfer of the value from executive director of FCB Ulka, says “As advertisingthe person to the product he endorses or stands for. Tabu professionals, we recommend celebrity endorsements whenendorsing Tetra Packed Milk, Shabana Azmi campaigning for the case is justified. There are many cases where theAIDS Awareness, Amitabh Bachchan & Shahrukh Khan companies need to use the celebrity to break out of a categorycampaigning for Pulse Polio or Aishwarya Rai appearing in clutter. At times, celebrity endorsement is used to buildthe Donate Eyes campaign are the examples, which reflect the credibility to the brand offer. In this light the objective of mytransfer of celebrity values to the brand, creating an impact study will be give a focus on the following issues:that generates recall. To what extent the effect of celebrity endorsementCelebrity branding is all about the transfer of the value from vary across different product categories?the person to the product he endorses or stands for. Tabu Is the liking of celebrity endorsement genderendorsing Tetra Packed Milk, Shabana Azmi campaigning for specific?AIDS Awareness, Amitabh Bachchan & Shahrukh Khan Most desirable characteristics of celebrity endorser.campaigning for Pulse Polio or Aishwarya Rai appearing inthe Donate Eyes campaign are the examples, which reflect the Is the liking of celebrity endorsement occupationtransfer of celebrity values to the brand, creating an impact specific?that generates recall. Is the liking of celebrity endorsement age specific?OBJECTIVES OF THE STUDY Is the liking of celebrity endorsement occupationThere is a myth that celebrity endorsement is used to give a specific?brand advantage over its competitors. Research has shown that METHODOLOGYthe use of celebrities in advertisements can have a positive Data Collection:influence on the credibility, message recall, memory and The study is based on the primary data collected bylikeability of the advertisements and finally on purchase interviewing the sample buyers personally. A detailedintentions (Menon, 2001; Pornpitakpan, 2003; Pringle and questionnaire embracing the objectives laid down wasBinet, 2005; Roy, 2006). The company makes use of the designed and canvassed to the sample. In order to judge thecelebritys characteristics and qualities to establish an analogy role of celebrity endorsed advertisement in the decisionwith the products specialties with an aim to position them in making process of the consumers, products like refrigerator,the minds of the target consumers. But the opposite view also TV, two wheeler, 4 wheeler, washing-machine and like wasexist that there is a risk that the celebrity and or his/her chosen from durable category and hair-oil, tooth-paste, coldunexpected behavior overshadows the product and this drinks, health drinks, dress material, jewelries etc from FMCG 197
  7. 7. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 category was considered and from service category banking insurance, cell-phone services were chosen. Thurstone Case V scaling model has been used in order to find To study the message recalling scenario of the celebrity out the most important celebrity endorser attribute. endorsed advertisements the name of the following 15 Area of Study: celebrity endorsers has been mentioned: To accomplish the objective of the study the survey was Amitabh Shahr Sachin Kareen conducted in five towns of Ganjam district of the state of Saif Ali Bachcha ukh Tendu Aamir Salman Aishwar a Khan n Khan lkar Khan Khan ya Rai Kapoor Odisha. The towns selected are Berhampur, Chatrapur, Aska, Aksha Mahe y ndra Digapahandi and Khallikote. Hrithik Juhi Katrin Kuma Singh Sonali Preity Sample Size: Roshan Chawla a Kaif r Dhoni Bendre Zinta The size of the sample in each town was 40 that constituted A set of 10 statements that were being used to judge the 200 respondents in total from all towns. The selection of the negativity or the positivity of the attitude of the consumers sample respondent in each and every area was little bit towards the celebrity endorsed advertisement are as follows: purposive so that they can represent each income, occupation1. Celebrity can communicate benefit of the product clearly. group and belong to different age categories.2. Celebrity endorsed (CE) ads are more attractive than others. Tools for Analysis:3. CE ads reflect the status of the brand. Chi-square analysis was used to study the significance of the4. CE ads do not interfere too much with enjoying TV programme that the others do.5. Celebrities do not use the endorsed products. demographic factors like age, income class, occupation and6. It distracts the attention from the brand. gender on attitude towards celebrity endorsement commercials7. Celebrities don’t use to convey their own opinion rather they are being purchased to on positively. say TV commercials. Correlation coefficient has been8. The commercials do not convince me to buy the products computed to reveal the degree of association of age factor,9. I’m tired of celebrity endorsed ads. gender and the other demographic factors as mentioned with10 The commercials are much more attractive. attitude towards celebrity endorsed TV ads. A 7-point Likert-summated scale, the range of which is stated Hypothesis: in the following table, has been used to rate the The following is the replication hypothesis based on abovementioned statements related to the measurement of Connoisseurs’ views that were tested on the basis of collected attitude towards celebrity endorsed advertisements: data: 1 2 3 4 5 6 7 These entire null hypotheses were being tested against the STRONGLY DISAGREE SOMEWHAT NEITHER SOMEWHAT AGREE STRONGLY DISAGREE DISAGREE AGREE AGREE AGREE NOR 1st Null Hypothesis : H10 = attitude towards celebrity endorsed ads DISAGREE are sex independent. nd In order to avoid the complexity of the signs the positive nos. 2 Null Hypothesis : H20 = attitude towards celebrity endorsed ads are age independent. from 1 to 7 has been selected where 4 is the neutral point. rd 3 Null Hypothesis : H30 = attitude towards celebrity endorsed ads Another 7-point scale is used to determine the role of the are income class independent. celebrity endorsed ads in decision making process (at any following corresponding alternative hypothesis: stage from need recognition to brand selection). The detail of the scale is as follows: 1 2 3 4 5 6 7 TOTAL NEGAT SOMEWHA NEITHER SOMEWHAT POSITIVE TOTAL NEGATIVE IVE T NEGATIVE POSITIVE ROLE POSITIVE ROLE ROLE NEGATIVE ROLE NOR ROLE ROLE ROLE POSITIVE ROLE 198
  8. 8. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 1stAlternative : H11 = attitude towards celebrity endorsed ads are sex The visibility scenario of the celebrity endorsed ads were Hypothesis dependent. such that only 16 respondents out of total 200 could not tell 2nd Alternative : H21 = attitude towards celebrity endorsed ads are about a single ad endorsed by the celebrities that was being Hypothesis age dependent. 3rd Alternative : H31 = attitude towards celebrity endorsed ads are selected. A weight ‘1’ was given to the right Hypothesis income class dependent. commemoration of the advertisement endorsed by the FINDINGS & ANALYSIS OF DATA PERTAINING TO abovementioned celebrities. If one can remember 2 or 3 or CELEBRITY ENDORSEMENT more ad endorsed by that particular celebrity then the weightage corresponding to that respondent and correspondingTable A: RESPONDENT’S DEMOGRAPHIC PROFILE to that celebrity was given. i.e. if one can remember 5 ads• AGE DISTRIBUTION OF THE • INCOME WISE DISTRIBUTION OF THE endorsed by Amitbh Bacchan then it was counted as 5. The RESPONDENTS RESPONDENTS average was estimated just by dividing such summed upAge Fre M F % Per- Fre Ma Fem % qu capita* que le ale numerical by 15 (the no. of celebrities). The ultimate result enc Income ncy that was got is that the ‘Correlation-Coefficient’ between age y Level and average recall scenario, as computed, is (-0.230340054), (in ‘000 where average recall scenario is nothing but the summation of Rs) the score of the commemoration divided by 15 (the no. ofbelow 8 16 12 8 020 24 <1 8 4 celebrities selected). The negative symbol is an indication of20-30 136 76 60 68 1-3 128 70 58 64 the fact that the persons at a lower age are fond of this kind of30-40 20 12 8 10 3-5 28 12 16 14 ads and vice versa. Another interesting result revealed the factAbove 16 4 10 20 16 that commemoration and income is positively related and the40 20 5-10 36 18 ‘Correlation-Coefficient’ between income & average recall >10 8 8 0 4TOTA 200 11 88 10 TOTAL 200 112 88 100 rate is (+0.06582), though the degree is not so high.L 2 0 HYPOTHESIS TESTING*note: per capita income=HH income/no. of family members. The objective 1) Influencing role of SEX to attitude towardsbehind taking this per-capita income was to consider the income status Celebrity endorsed ad:orientation of the financially dependent respondents. H10 = attitude towards celebrity endorsed ads are sex • OCCUPATIONAL STATUS OF THE RESPONDENTSCATEGORY Freq M F Percent (%) independent. uenc H11 = attitude towards celebrity endorsed ads are sex y dependent.Unemployed 132 52 80 66Blue-collar 12 8 4 6 Data table B1 is revealing the sex based attitude scenario ofEmployeeWhite-collar 32 28 4 16 celebrity endorsed TV ads.EmployeeBusiness 24 24 0 12personTotal 200 11 88 100 2 199
  9. 9. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 Table B1: Observed frequencies of SEX BASED Attitude Table B2: Expected frequencies hypothesis. So age factor plays a significant role in developing towards celebrity endorsed TV commercials Freq. Freq. attitude towards celebrity endorsed ads. And correlation- Freq. Freq. Freq. Freq. of % of of SEX of +ve of -ve neutral ROW positive SEX of +ve of -ve neutral coefficient figure is revealing a negative relationship and the attitude attitude SUM attitude attitude to CE to CE attitude attitude to CE to CE attitude degree is as follows: to CE to CE M 64 40 8 112 57 M 56 49.28 6.72 Correl (age, attitude) = - (0.114657354), F 36 48 4 88 41 F 44 38.72 5.28 So we can conclude here-from that aged persons are not so COL. ESTIMATED χ2 =7.124 100 88 12 200 SUM d. f.= (Row-1)(Column-1)= 2 prone towards these types of advertisements. Table χ2 (at 95% level of significance) % 50% 44% 6% 100% 3) Influencing role of INCOME-CLASS to attitude = 5.99 towards Celebrity endorsed ad: The Chi-square analysis to the above dataset is rejecting the H30 = attitude towards celebrity endorsed ads are income null-hypothesis and divulging the fact that there is a class independent. significant difference between the attitude of male and female H31 = attitude towards celebrity endorsed ads are income customers towards the celebrity endorsed TV advertisements. class dependent. The percentage analysis is depicting the picture that males are Table D1: Observed frequencies of INCOME- Table D2: Expected frequencies CLASS BASED Attitude towards celebrity much more inclined towards celebrity endorsed ads. endorsed TV commercials Freq. Freq. 2) Influencing role of AGE to attitude towards Freq. of of Celebrity endorsed ad: of Freq. neutra Freq. neutra Inco +ve of -ve l RO Inco Freq. of of -ve l H20 = attitude towards celebrity endorsed ads are age me attitu attitu attitu W me +ve attitud attitu class de to de to de to SU class attitude e to de to independent. (,000) CE CE CE M (,000) to CE CE CE H21 = attitude towards celebrity endorsed ads are age <1 0 4 4 8 <1 3.84 3.68 0.48 1-3 64 52 8 124 dependent. 1-3 59.52 57.04 7.44 3-5 12 16 0 28 3-5 13.44 12.88 1.68Table C1: Observed frequencies of AGE BASED Table C2: Expected frequencies 5-10 20 16 0 36 5-10 17.28 16.56 2.16Attitude towards celebrity endorsed TV commercials >10 0 4 0 4 >10 1.92 1.84 0.24 AGE Freq. of Freq. Freq. RO AGE Freq. Freq Freq. COL. ESTIMATED χ2 = 40.399 +ve of of W of . of of SUM 96 92 12 200 d. f.= (Row-1)(Column-1)= 8 attitude -ve neutral SU +ve -ve neutr Table χ2 (at 99% level of significance) = 20.09 to attitud attitud M attitu attit al CE e to e to de to ude attitu CE CE CE to de to So the data set is rejecting the null hypothesis and at the same below CE CE time establishing the alternative hypothesis as the fact. Thus 20 16 4 4 24 below 11.5 20 11.52 2 0.96 income class is a significant guidance to develop an attitude 20-30 60 72 4 136 30-40 12 8 0 20 65.2 towards celebrity endorsed TV commercials. And exactly 40 20-30 65.28 8 5.44 there exists a negative relationship among these two, though above 8 12 0 20 30-40 9.6 9.6 0.8 Colu the degree is not so high: 40 mn above 9.6 9.6 0.8 Correl (Income, CE attitude) = - (0.11568531) Sum 96 96 8 200ESTIMATED χ2 = 21.1d. f. = (Row-1)(Column-1) = 6 4) Influencing role of OCCUPATIONALTable χ2 (at 99% level of significance) = 16.81 CATEGORY to attitude towards Celebrity endorsed ad: The outcome of the above chi-square analysis is the rejection of null-hypothesis and obviously acceptance of alternative 200
  10. 10. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012Table E1: Observed frequencies of Table E2: Expected (Either need recognition or BRAND DECISION MAKING:OCCUPATION based Attitude towards frequencies Using 7-point scale that ranges from 1 to 7, as stated earlier):celebrity endorsed TV commercials The mean scores (on a 7-point scale) for different product Freq . of Freq. Freq. category are as follows: -ve of of - Freq. of attit Occupa +ve ve Table F: Mean Score of role of CE ads in decision makingOccupati +ve ude ne RO tion attitu attitu ne processon attitude to utr W categor de to de to utr AVERAGEcategory to CE CE al SUM y CE CE al (for allunemplo unempl 58.0 7.9 productyed 68 56 8 132 oyed 66 8 2 DURABLE FMCG SERVICE category)blue blue 0.7 Meancollar 4 8 0 12 collar 6 5.28 2 Score 4.32093 4.763566 4.658915 4.581137white white 14.0 1.9 Roundedcollar 12 20 0 32 collar 16 8 2 figures 4.00 5 5 5 businesbusiness s 10.5 1.4 The above table is depicting the picture that though in the caseperson 16 4 4 24 person 12 6 4 of FMCG products and services this kind of ads have aCOL.SUM 100 88 12 200 positive role, in the case of durable commodities the picture isESTIMATED χ2 = 18.29247 neutral. And the extent of positive role in the case of FMCGd. f.= (Row-1)(Column-1)= 6 and services is not so greater. But overall scenario is a positiveTable χ2 (at 99% level of significance) = 16.81 one. Somewhat these ads play a role in the decision making, The above chi square result is rejecting the null hypothesis and either in the case of need recognition or in the case of brand makes the alternative hypothesis established. And Table E3 is selection. Likewise the other non-celebrity endorsed ads they revealing another scenario that the positiveness of the attitude sometimes make the customers aware about the availability towards the kind of advertisements is more in unemployed and and so on. business persons. The reason may be the fact of the comparatively plenty time for entertainment and conversely CELEBRITY ENDORSER’S ATTRIBUTES BEHIND the busy schedule of the employees. THE SUCCESS OF THE ADS Table E3 : % of positive attitude of different The dataset of Table G1 is being used to determine the occupational category preferred celebrity endorsers attributes – viz. physical BLUE WHITE BUSINESS attractiveness (PA), trustworthiness (T), similarity (S), respect UNEMPLOYED COLLAR COLLAR PERSON (R) and expertise (E). The numbers in each cell is depicting 51.5152 33.3333 37.5 66.6667 the number of respondents preferring the column attributes than the row attributes. ROLE OF CELEBRITY ENDORSED AD IN any state of DECISION MAKING PROCESS 201
  11. 11. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 purchase intentions. But the success of the use of celebrityTable G1: Observed frequencies of Table G2: Observed proportions of respondentsrespondents preferring row attributes preferring row attributes than column attributes endorsers varies across different products. More significantlythan column attributes the success of the use of the celebrity endorsers in the Preferred Attributes Preferred Attributes P PA T R S E commercials depends on the fact that for which demographic A T R S E P 0.574 0.340 0.4468 0.5744 P 11 11 segment the ad was meant—is it meant for the males or else; A 0 468 426 08 68 A 0 5 68 89 5 11 10 0.425 0.340 0.5957 0.5106 is it for the teenagers; is it for the white collar workers; is it T 532 0 426 45 38 T 85 0 68 9 2 0.659 0.659 0.3617 0.6382 for the housewives or for the students, i.e. for the financially 13 13 12 R 2 2 0 72 8 R 574 574 0 02 98 dependents; or it is for the business personnel, for the reason 0.553 0.404 0.638 0.6382 11 12 12 S 192 255 298 0 98 that demography make a significant difference of the psyche S 1 81 8 0 8 0.425 0.489 0.361 0.3617 of the consumers. So the marketers should go thoroughly E 85 98 72 72 0 E 532 362 702 02 0 about the psyche of the different demographic segment before finalizing the strategies with a long term perspective. Then only the marketing organizations can become able to satisfy Z values related to preference proportion their esteem need; fame, prestige in the consumers’ society PA T R S E PA 0 0.19 -0.41 -0.23 0.19 can be gained. And this is the only way to reach at the top of T -0.19 0 -0.41 0.24 0.03 Self-actualization Mountain—the ultimate destination of R 0.41 0.41 0 -0.34 0.35 individual human being as an organization of different S 0.23 -0.24 0.34 0 0.35 activities, the ultimate destination of a group of individuals E -0.19 -0.03 -0.35 -0.35 0 with a rational perspective. Column BIBLIOGRAPHY: Sum 0.26 0.33 -0.83 -0.68 0.92 1. Atkin, C. and Block, M. (1983), “Effectiveness of MEAN 0.052 0.066 -0.166 -0.136 0.184 RANK 0.218 0.232 0.00 0.006 0.35 Celebrity Endorsers”, Journal of Advertising Research, Feb/Mar, Vol. 23 (1), 57-61.So the attribute preference pattern of celebrity endorser for the 2. Belch, G. E. and Belch, M. A. (2001), “Advertisingsample is as follows: and Promotion: An integrated marketing c E > T > PA > S > R communications perspective”, 5th ed. New York:That is the respondents’ attitude towards celebrity endorsed McGraw-Hill. ISBN is first of all guided by the expertise of the celebrities, then 3. Bergstrom, C. and Skarfstad, R. (2004), “Celebritytrustworthiness. Physical attractiveness is the third important Endorsement, Social Science and Businessfactor of this attitude development. Administration Programmes”, Dept. of Busi AdmnCONCLUSION and Social Sciences, Division of Industrial MarketingCompanies frequently use celebrity as spokespersons to and e-Commerce, Lulea University of technology,deliver their ad message and to persuade and to convince 2004:193 SHU.ISSN:consumers of their brands. A billion of dollars spent per year 1404_5508/ISRN:KTU_SHU—04/193—SE.on celebrity endorsement. This research result suggests 4. Blazey, N. & Ganti, S. K. (2005), “Impact oftentatively that the use of celebrity endorsers in TV Celebrity Endorsement on Overall Brand”, Marketingcommercials could be effective in influencing attitudes and @ Knowledge Zone. 202
  12. 12. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 20125. Blondé, K. and Roozen, I (2007), “An Explorative process”, Journal of Consumer Research, 16(12), Study of Testing the Effectiveness of Product 310-321. Placement compared to 30-second TV-Commercials” 15. McCracken, G. (1989), "Who is the Celebrity for the 6th International Marketing Trends Congress, Endorser?" Journal of Consumer Research, 16 Paris 26-27 January 2007. (December), 310-321.6. Pelsmacker, P. D., Geuens, M. and Bergh, J. V. D. 16. Mehta, A. (1994), “How Advertising Response (2004), “Marketing Communications, A European Modelling (ARM) Can Increase Ad Effectiveness” , Perspective”, second edition, Prentice Hall. Journal of Advertising Research, 34, no. 3, pp. 62-74.7. Erdogan, B. Z. (1999), “Celebrity endorsement: A 17. Menon, K. (2001), Celebrity Advertising: An literature review”. Journal Marketing Management, Assessment of Its Relative Effectiveness. 15 (4), 291-315. 18. Ohanian, R. (1991), “The Impact of Celebrity8. Jagdish, A., and Wagner, K. A. (1995). The Spokespersons Perceived Image on Consumers Economic Worth of Celebrity Endorsers: An event Intention to Purchase”. Journal of Advertising study analysis, Jolurnal of marketing, 56(3), 56-62. Research. February/March (1991): 46-54. ISSN 0022-2429. 19. Patel, S. (2008), “Of celebrity branding, brand9. Kaikati, J. G. (1987), "Celebrity Advertising: A marketers, and India”, Monday - Sep 15, 2008 Review and Synthesis," International Journal of advertising, 6, 93. 20. Pringle, H & Binet, L (2005), “How marketers can10. Kulkarni, S. A. and Gaulkar, S. U.( 2005), “Impact of use celebrities to sell more effectively” Journal of Celebrity Endorsements on Overall Brand” , Consumer Behaviour, Mar2005, Vol. 4 Issue 3, p201- Marketing@Knowledge Zone, 214. 21. Pornpitakpan, C. (2003), “The Effect of Celebrity /op88.html. Endorsers Perceived Credibility on Product Purchase11. Klebba, J. M. and Unger, L.S. (1982), “The Impact of Intention: The Case of Singaporeans”, Journal of Negative and Positive Information on Source International Consumer Marketing, 2003, Vol. 16 Credibility in a Field Setting” Advances in Consumer Issue 2, p55-74. Research, 10(1), 45-48. 22. Roy, S. (2006), “An exploratory study in celebrity12. Rajesh S Lalwani, “India media news marketing Endorsements. Journal of creative communications India advertising Indian brands TV media 1:2 (2006) Sage Publications New Delhi. newspapers”, 23. Schiffman, L. G.and Kanuk, L. L. (2004), Consumer Behaviour, Prentice-HBall of India Private Limited, nt.asp?view_id=40. New Delhi.13. Marhue, L. K. and Mathur, I. (1997), “The wealth 24. Sherman, S. P. (1985), "When You Wish upon a effects associated with a celebrity endorser. The Star", Fortune Vol. 112. Michael Jordan phenomenon”, Journal of advertising 25. Shimp, T. A. (2000), “Advertising, promotion: research, 37(3), 67-73. Supplemental aspects of integrated marketing th14. McCracken, G. (1989), “Who is the Celebrity communication”, 5 ed. Forth worth, Tex.: Dryden. Endorser? Cultural foundations of the Endorsement ISBN 0-03-021113-1. 203
  13. 13. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 201226. Taleja, N. (2005), “ Impact of Celebrity Technology, Greater Noida. He has consistently a Endorsements on Overall Brand”, Marketing @ brilliant academic career. Dr. Dash has considerable Knowledge Zone, research work to his credit and published several research paeprs in national and international 1.php journals. He has authored two edited books on27. Gail, T., Rebecca, C., Laura, E., Edward, G., Joseph, “Innovations in Management Science” and M., and Harmona. S. (1992), “The Use of Created “Contemporary issues in Services Marketing- versus Celebrity Spokesperson in Advertisement”, st The Journal of Consumer Research, 20, no; 4 pp. Challenges for 21 century” with Global Research 535-547. Publications,New Delhi. Besides this he has28. The Hindu Business Line, “Celebrity endorsement authored a reference book on “Relationship ads on TV up 49% during 2007”, Bureau, , Business Marketing” with Serials publications, New Delhi. Daily from THE HINDU group of publications, Wednesday, Apr 09, 2008, Mr.Deepti Ranjan Sabat has completed his MBA in Marketing and finance from Sambalpur 950750500.htm University, Orissa. Presently he is working as AUTHORS PROFILE Assistant professor in Management at MITSDr. Saroj Kumar Dash obtained his M.Sc, MBA, Engineering college Rayagada,Odisha. He isPGDCA and PhD (Management) degree from actively engaged in teaching marketing relatedBerhampur University, Orissa. He is currently subjects. He is havig a brilliant academic career. Hisworking as Associate Professor and Head of MBA core area of research is Services Marketing.Programme of Skyline Insitute of Engineering and 204