Wass on Role of culture in celebrity endorsement

2,377 views

Published on

Role of Culture on Celebrity Endorsement

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

No Downloads
Views
Total views
2,377
On SlideShare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
16
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Wass on Role of culture in celebrity endorsement

  1. 1. WASS On Role of Culture in Celebrity Endorsement Source: WP 2013-07-01 by Abhishek & Arvind Sahay IIM-A Presented on 06/11/14 by Dr. Chandan Chavadi, CMS - Presidency College, Bangalore 11/06/2014 1 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  2. 2. Objectives of this Study 1) To review and synthesize the existing literature on celebrity endorsement. 2) To study the differing practices in nature and quantity of celebrity endorsement between developed and emerging markets. 3) To develop set of propositions using dimension of culture to explain differing practices. 4) To contribute to the literature by bringing in the notion of congruence between celebrity and consumer as a driver of effectiveness of celebrity endorsement. 11/06/2014 2 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  3. 3. Effectiveness of Celebrity Endorsement Congruence between Celebrity & Product Earlier Explained Limited Congruence between Celebrity & Consumer Unexplored Area? Scope of the Study Better way of explaining Effectiveness of Celebrity endorsement 11/06/2014 3Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  4. 4. Attitude towards Celebrity Cultural Parameter Function Various Dimension of Cultural Parameter Effectiveness of Celebrity Endorsement Influence Role of Culture 11/06/2014 4 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  5. 5. Celebrity Endorsement… • What started as a trickle in 1980s emerged as a phenomenon in 1990s with companies extensively using celebrities to communicate their brands to consumers. • The rise in celebrity advertisement has been attributed to cluttering of media. • Increase in the number of brands advertised on TV from around 3,000 a decade ago to almost 11,500 (India Today – December 2004). 11/06/2014 5Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  6. 6. • Research conducted by leading Indian research agency IMRB indicated that 86 % of the respondents say the most prominent advertisement that they remember has a celebrity in it (The Economic Times – 28 March, 2008). • Celebrity endorsement market is considered to be worth more than Rs. 1,000 crores business(The Economic Times – 3 February, 2010). 11/06/2014 6 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  7. 7. • With the onset of television as a powerful media for mass advertising in India in 1980s, a number of Indian brands like Vimal, Thums Up and Gwalior used star appeal during their early days of mass advertising. • The role of celebrities in Indian context can be highlighted with the example of Coca Cola, who earlier never used celebrities internationally, but started using Indian celebrities for its advertisements in India in 1990s. • The endorsement of Hyundai Santro car by leading actor Shah Rukh Khan has worked well for the brand as well as for the actor. He was endorsing three brands, went on to endorse more than 30 brands in 2009 (The Hindustan Times –17 September, 2012). 11/06/2014 7 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  8. 8. Not all Celebrities Endorsement have been Successful • When Hindustan Unilever Limited (HUL) – Indian subsidiary of Unilever - tried to use Shahrukh Khan for endorsing Lux, by canvassing the image of a metro- sexual man, the promotion did not turn out to be very successful. • Shahrukh Khan’s association with Videocon, a leading white good manufacturer, had to be discontinued as the promotion did not give adequate results. • Leading automobile company Maruti Suzuki was unable to exploit the ‘Big B’ status of Amitabh Bachchan for its ‘Versa’ brand. 11/06/2014 8 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  9. 9. • The list of unsuccessful examples suggest that it will be wrong to consider celebrity endorsement as an effective response for all situations in spite of the intensity of involvement people have with celebrities in India. • In order to enhance the effectiveness of celebrities, it has been suggested that marketers need to establish the link between the product and celebrity by considering the type of product. 11/06/2014 9 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  10. 10. • However, the utility of this theory – often explained as congruence between product and celebrity - in explaining the effectiveness of celebrity endorsement is limited. • Shahrukh Khan endorsing Hyundai Santro and Amitabh Bachchan endorsing Versa. While both the brands belong to same product category and are endorsed by the leading Indian actors having pan-India appeal, the results have been quite different. Santro became the second largest selling car in India within four years of its launch. 11/06/2014 10 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  11. 11. Paper Attempts • Use the lens of culture to develop propositions on how customer attitudes towards celebrity endorsements is a function of cultural parameters. • Using culture to explain the congruence between celebrity and consumers for elaborating celebrity endorsement in Indian markets. 11/06/2014 11 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  12. 12. How the Paper is Organized • First, the author examine the literature on celebrity endorsements to understand the underlying theoretical underpinnings and identify the gaps and contradictions. • Next, summarize the dimensions of culture that are likely to influence the impact of celebrity endorsement on customer attitudes, with reference to the Indian context. • Finally, the author develop propositions that consider how different dimensions of culture influence the relationship between celebrity endorsements and customer attitude. 11/06/2014 12 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  13. 13. Literature Background • Endorsement by celebrities is not a new phenomenon, however today celebrity endorsement has become one of the most popular forms of advertising (Choi & Rifon, 2007) including in the non- profit sector (de los Salmones, Dominguez, & Herrero, 2013). • If you are targeting youth, take a new star and if you are talking to a family audience use an established star. Health-oriented brands generally pick a sportsperson while beauty brands pick up a Bollywood diva. (Economic Times, Oct 2014). • Aresearch states that the target audience age group of 15-30 gets influenced first by cricketers, then Bollywood stars and only then music, festivals and food (Harish, 2004). 11/06/2014 13 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  14. 14. Trends - Celebrities active on Facebook, Twitter have an edge • With social media emerging as one of the most popular hangouts for Indians, brand endorsement deals in the country are getting hugely influenced by how active celebrities are on Twitter, Facebook, Instagram and blogs. • "Celebrities who engage actively on the social media space are getting paid at least 25%-30% higher than those who don't, even if the latter have huge mass connect," said Vinita Bangard, promoter of talent management firm Krossover Entertainment, which represents Priyanka Chopra and Shah Rukh Khan. 11/06/2014 14 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  15. 15. Trends - Celebrities active on Facebook, Twitter have an edge • Ex: Farhan Akhtar, who endorses Coca-Cola, and Salman Khan, who is the face of Thums Up, not only feature on the brands' advertisements but also are regularly tweeting and posting photos of themselves with the brands they promote. • Many brands now go for exclusive social media endorsement deals at just about 10%-20% fees of a television endorsement deal. 11/06/2014 15 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  16. 16. • Chocolate brand Cadbury Dairy Milk has had a series of upcoming faces including Bollywood starlet Hazel Keech and model Karishma Kotak tweeting about their experience of eating Dairy Milk Silk Caramello chocolate. https://twitter.com/karishmakotak/s tatus/514790785103826944 • The online celebrity endorsement business is now growing 25%-30% faster than the traditional space. "Digital isn't an option anymore.” 11/06/2014 16 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  17. 17. Trends - Celebrities active on Facebook, Twitter have an edge • "The socially active ones have a clear edge not only in terms of higher fees but also in getting more endorsement deals." • Chopra, with over 7 million followers on Twitter, is a hot favourite, along with stars like Amitabh Bachchan, Shah Rukh Khan, Aamir Khan and Salman Khan who all have more than 8 million followers. • PepsiCo used hugely popular actor Ranbir Kapoor only on social media earlier this year for its biggest ad platform — the IPL T20 cricket tournament, though cricketers MS Dhoni and Virat Kohli were shown extensively on television ads. 11/06/2014 17 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  18. 18. Benefits of Celebrity Endorsement • To grab customer attention for communicating message to consumers ( Baker & Tagg, 2001). • To remember the message and brand name (Agrawal & Kamakura, 1995; Erdogan, 1999; Freidman & Friedman, 1979). • Celebrities bring their own distinctive images to the advertisement and its associated brand and can create, enhance and change brand image (Erdogan, 1999). • According to Agrawal and Kamakura (1995), when a celebrity is paired with a brand, his/her image helps shape the image of that brand in minds of the consumer. 11/06/2014 18 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  19. 19. Construct Models for Celebrity Endorsements • Many scholars have attempted to construct models to explain celebrity endorsement process. • These include the Source Credibility Model, the Source Attractiveness Model, the Product Match-up Hypothesis, and the Meanings Transfer Model. 11/06/2014 19 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  20. 20. • The Source Credibility Model proposes that the effectiveness of a message depends on perceived level of expertise and trustworthiness in an endorser (Ohanian, 1991). • On the other hand, in the Source Attractiveness Model, it is contended that the effectiveness of a message depends on similarity, familiarity and liking for an endorser (McGuire, 1985). • The Product Match-Up Hypothesis maintains that messages conveyed by celebrity image and the product message should be congruent for effective advertising (Kamins & Gupta, 1994). • During celebrity endorsement, consumers have a perceived image about any celebrity endorser, and this image affect is transferred to the endorsed brand (Atkin and Block, 1983). Construct Models 11/06/2014 20 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  21. 21. Source credibilit y model Source attractiv eness Model Product matchup Meaning transfer Model Effectiveness of Celebrity Endorsement Source trustworthi ness Source expertise Similarity Familiarity Liking 11/06/2014 21 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  22. 22. Culture • Markus and Kitayama (1991) have argued that culture has a profound impact on the dominant self conceptions that exist within a given culture. • Previous research in marketing and consumer behavior has found culture to be an important determinant of consumer behavior (Aaker & Lee, 2001; Farley & Lehman, 1994). • There is increasingly the recognition that national cultural values affect the cognitive, the emotional and the motivational patterns dominant of customers in a given culture (Markus & Kitayama, 1991). 11/06/2014 22 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  23. 23. • Since these dimensions of culture proposed by Hofstede (1980) were published, researchers have confirmed them in various cultures around the world and have used them to analyze many marketing issues, such as variations in symbolic consumption behavior, consumer responses to advertising, and marketing management practices in various cultural settings. • In fact, the congruence between the celebrity and the consumer matters in addition to congruence between celebrity and product.(Unexplored area – Choi & Rifin, 2012). 11/06/2014 23 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  24. 24. Dimension of Culture • Culture has long been believed to be the force that influences people in a society to follow the norms of their collective identity. • Hofstede (1980) treated culture as the collective programming of the mind that distinguishes the members of one group or category of people from another. • He defined culture as the interactive aggregate of common characteristics that influence a human group’s response to its environment. • There have been a number of studies to identify core values across societies, and those values that differ between societies and are a result of local cultural differences (Burton, 2009). 11/06/2014 24 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  25. 25. • Hofstede (1980) presented one of the first empirically validated typology of culture across different nations. • Hofstede used 116,000 questionnaires from over 60,000 respondents in seventy countries in his empirical study (Hofstede, 1984, Hofstede, 1991 and Hofstede, 2001). He created five dimensions, assigned indexes on each to all nations, and linked the dimensions with demographic, geographic, economic, and political aspects of a society (Kale and Barnes, 1992), a feature unmatched by other frameworks. • He identified five dimensions of culture on which a country’s culture could be placed. He named them as power distance, uncertainty avoidance, individualism- collectivism, and masculinity-femininity. • Hofstede added a new dimension of long-term versus short-term orientation to extend the number of dimensions to five. PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 6111/06/2014 25 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  26. 26. • The typology of cultural dimensions proposed by Hofstede is used for this study since it has been extensively used in marketing and advertising literature to study cross-national differences (e.g., Singh, 2004; Petersen, Kushwaha, & Kumar, 2013). • Choi et al. (2005) stated that differences in consumer dispositions towards celebrity endorsements are likely to lead to observed cross-cultural differences in the use of this technique. • As most of the models of celebrity endorsement process have been developed in the context of United States, it was decided to use India and United States as these societies differ considerably on many dimensions of culture. 11/06/2014 26 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  27. 27. • Hofstede found that two countries can be closely similar in a particular cultural dimension and highly dissimilar in various other dimensions. • For example, India and the United States are greatly similar in the uncertainty avoidance index(40/46), but exceedingly dissimilar in the individualism index (48/91). • Hofstede reported differences between the Indian and American cultures on three of these dimensions: power distance, individualism-collectivism, and long-term versus short-term orientation. 11/06/2014 27 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  28. 28. Hofstede typology of cultural dimensions PD I/C LTO/TO Influence Influence Influence Effectiveness of Celebrity Endorsement Cultural Parameters PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 28 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  29. 29. Power Distance • Hofstede defined power distance as “the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally”. • A high power distance ranking indicated inequalities of power and wealth while a low power distance ranking indicated that society de-emphasizes the differences between citizen power and wealth. • India has a score of 77 on Power Distance Index against the United States score of 40. • India’s score of 77 indicates a high level of inequality of power within the society whereas US score 40 is indicative of greater social equality. PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 6111/06/2014 29 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  30. 30. 11/06/2014 30 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  31. 31. Individualism- Collectivism • Collectivism pertain to societies in which the ties between individuals are close: it pertains to societies in which people from birth onwards are integrated into strong, cohesive in-groups, which throughout people’s lifetime continue to protect them in exchange for unquestionable loyalty. • A high score on Individualism Index indicates that individuality and individual rights are emphasized within the community. • The United States has score of 91 on Individualism Index, suggesting a society with high individualistic attitude while India’s score on Individualism Index is 48 indicating a society with high collective orientation. PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 31 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  32. 32. 11/06/2014 32 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  33. 33. Long versus Short term Orientation • Long-term orientation characterizes cultures which place more importance on values associated with future orientation while short-term orientation cultures place more importance on values associated with past and present orientations. • India’s score on Long-Term Orientation Index is 61 in comparison to world’s average of 48, indicating a culture with long term orientation. On the other hand, United States score is 29 reflecting a culture with short term perspective. • Since the cultural context of Indians evaluating celebrities is markedly different from that of an American, our premise, therefore, is that there should be differences relating to the impact of celebrity advertisement. PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 6111/06/2014 33 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  34. 34. 11/06/2014 34 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  35. 35. Proposition • While developing the propositions using dimensions of culture, we have considered that congruence between the celebrity and the consumer will lead to better effectiveness of celebrity. • Congruence conviction was also supported by balance theory (Heider, 1958) which pointed out that an individual prefers information which does not trouble her internal equilibrium. • Over the years, many streams of research in marketing like brand extension, cobranding, and advertising have shown that congruence is a positive factor and it is preferable over incongruence (Fleck & Quester, 2007). 11/06/2014 35 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  36. 36. Popularity of Celebrity..P1 Popularity of celebrities- • As per Hofstede (2001) study, the power distance index score for India is 77 which will be considered significantly higher than United States score of 40, and thus pointing towards a culture of high power distance. • A culture of high power distance signifies inequality in the society. • The existence of class and caste manifests the inequalities in this dimension. • Hofstede (2001) pointed that these inequalities can occur in area like prestige, wealth, and power and generally values about inequality are coupled with values about the exercise of power. PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 6111/06/2014 36 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  37. 37. Referent Power • French and Raven (1959) provided five bases of social power namely reward power, coercive power, legitimate power, referent power, and expert power. • Hofstede (2001) surmised that more referent power which is based on personal charisma of the powerful and identification with him or her by the less powerful, will prevail. • In India, which is a stratified society, persons belonging to lower classes have deference towards the members of higher ranks. 11/06/2014 37 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  38. 38. • The mental programming for their hierarchical roles gets affected and strengthened by their exposure to societal norms like those involving relationship between parents and child and of teacher and pupil. • People take successful artists and athletes as having referent power and identify themselves with them in various ways like idolizing them, revering them, and imitating them and their life-styles. 11/06/2014 38 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  39. 39. • This is less likely to happen in a society that is low on power distance where idolization, revering and identification will be less effective. • Consumers see the endorsement by celebrities in congruence with this manifestation of referent power. 11/06/2014 39 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  40. 40. P1: Attitude towards a celebrity will be more positive in a society having higher power distance in comparison to society having lower power distance. Popularity of Celebrity Society of High PD Attitude towards Celebrity will be more Positive Referent Power PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 40 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  41. 41. P1: Supporting facts • In Indian market, we find that the rise in celebrity endorsements has been phenomenal in decade to 2010. • In 2001, 25 % of all TV advertisements carried a known face. By 2008, this had grown to 60 % and continues to grow (The Economic Times, 3 February,2010). • In 2007, only 88 brands used celebrities, while 98 brands used celebrities to push their products in 2008 (The Economic Times, 25 March, 2009). 11/06/2014 41 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  42. 42. • Coming to online retail stores, Snapdeal has created 50 commercials with 28 celebrity endorsements for their Diwali Bumper Sale campaign. Ex: Pulkit Samrat: The New Brand Ambassador Of Snapdeal.com • On the other hand, Flipkart’s ‘The Big Billion Day’ ad campaign could be seen regularly played across all television network channels during the previous month. 11/06/2014 42 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  43. 43. • Flipkart, signed up actor Ranveer Singh to endorse its in-house contemporary jeanswear brand Roadster. • LimeRoad, an online fashion brand that raised $15 million in a second round of funding in May, has inducted Neha Dhupia. • Jabong launched a first of its kind event, the India Online Fashion week, it roped in actress Yami Gautam, who played the lead female role in Vicky Donor, as a brand ambassador for the event. 11/06/2014 43 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  44. 44. P1: Supporting facts • The last few years have seen companies like Hero Honda, Airtel, Pepsi, and Sahara Homes employing multiple celebrities to endorse their product. • The advertising scene in United States where inspite of increase in incidence of celebrity advertising, only about 25 % of advertisements feature celebrities (Money et al., 2006). • Practitioner’s persistent use of celebrity endorsers in emerging markets like India suggests that celebrity endorsement is likely to prove an effective advertising strategy in these markets (Amos, Holmes, & Strutton, 2008). • All of the above support proposition 1. Celebs jam Hero Honda ad The two-wheeler major launches a music video on its 25th anniversary with film stars, cricketers and an Olympian. (Business Standard, September 19, 2008) Bollywood glamour idols Hrithik Roshan and Priyanka Chopra, sensational cricketers Virender Sehwag, Irfan Pathan, Suresh Raina, Gautam Gambhir and Ishant Sharmaas well as ace shooter and 2004 Athens Olympics silver medallist Rajyavardhan Rathore. 11/06/2014 44 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  45. 45. Multiple Endorsement by Celebrities…. P2 • In India, we see that a number of celebrities are engaged in multiple endorsements but the same is not true in case of US. • Think of Sachin Tendulkar. He means Pepsi in soft drinks, Boost in malted beverages, MRF in tires, Fiat Palio in cars, TVS Victor in two-wheelers, Colgate Total in toothpastes, Britannia in biscuits, Visa in credit cards & Airtel in mobile services. Clearly, an overload of brands and categories associated with one star. • Bollywood A-listers Shah Rukh Khan and Ranbir Kapoor emerged the only two celebrities in the country with more than $100-million valuation in the first ever celebrity brand valuation study in India. • Cricketers MS Dhoni and Virat Kohli took the next two positions, though well below Khan and Kapoor, according to valuation done by US consultancy firm American Appraisal. ( ET Bureau Nov 4, 2014). • In a high power distance country like India, generally the celebrities in India have high reverence factor and there prevails a larger than life status for the celebrities leading to celebrities having greater referent and legitimate power. 11/06/2014 45 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  46. 46. 11/06/2014 46 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  47. 47. 11/06/2014 47 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  48. 48. • Often this larger than life status leads the celebrities to hold command over not only their area of expertise but over a range of other areas as well. • As a result, the celebrity is not seen as expert in one area only but one can associate these celebrities with multiple domains. • If the celebrities endorse products for which the congruency between product and celebrity may not be present, it does not diminish the effectiveness of celebrity because the congruence is established between consumer and celebrity’s persona. • Thus one can expect that celebrities in high PDI countries like India will endorse more number of brands in comparison to celebrities in low PDI countries like United States. Therefore, the author proposes 11/06/2014 48 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  49. 49. P2: In case of a celebrity endorsing multiple brands, the consumer attitude towards celebrity will be more positive in a society having higher power distance in comparison to society having lower power distance Multiple Brand Endorsement Society of High PD Attitude towards Celebrity will be more Positive Reverence factor PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 49 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  50. 50. P2: Supporting facts • At one point of time, Amitabh Bachchan was endorsing more than 50 brands across disparate product categories. • Currently Shahrukh Khan and Mahindra Singh Dhoni (captain of Indian cricket team) are leading endorsers with each endorsing close to 20 brands. • As per estimates by AdEx, Shahrukh Khan endorsed 17 brands in 2009 while Dhoni led the year with 19 endorsements. • The leading Bollywood ladies like Katrina Kaif and Priyanka Chopra endorsed 12 and 10 brands respectively (The Economic Times – 3 February, 2010). • The power distance dimension of culture provides an explanation for the same in emerging countries like India whose score (77) on PDI is different from United States(40). 11/06/2014 50 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  51. 51. Impact of Regional Celebrities…P3 • The explanation for strong acceptance of celebrities in the areas from where they hail can be attributed to the individualism/collectivism dimension of the culture. • In a collectivist society like India self-image is based on interconnectedness of people, fitting in, and interdependence with others. • Ex: Consumer products companies from HUL to ITC and Parle Products to Wipro Consumer Care are accelerating signing endorsement deals with regional actors, as they seek to connect better with the masses in different states.(Economic Times Feb 7, 2011). • Biscuit maker Parle Products dropped superstar Aamir Khan and hired Bhojpuri actor Ravi Kishan for its Monaco brand. • Wipro Consumer Products, which uses Katrina Kaif for Yardley and Juhi Chawla for Safe Wash detergents nationally, has just signed on Tamil and Telugu film actress Tamanna for one of its soap brands. 11/06/2014 51 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  52. 52. • India having a score of 48 on individualism index signifies a nation of collectivist nature. • In case of collectivist culture, there is emotional dependence on groups, organizations, or other collectivities. • Children are taught to think in terms of “we” and consequently, the emphasis is on belonging and one builds ties with members of in- groups (wherein people share as much as possible the same background). 11/06/2014 52 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  53. 53. • Cooking and hair oil firm Marico, for example, has Anushka Sharma, Vidya Balan and Chitrangada Singh as all-India endorsers for its Parachute and Nihar brands besides a slew of regional actors: Kavya Madhavan for Kerala, Bhumika Chawla for Andhra Pradesh, Tamanna for Tamil Nadu and Rituparna Sengupta for the East • When a celebrity endorses a brand, other members who are from same social network or consider themselves to be from same in- group, consider it as their obligation to support the celebrity. Therefore for celebrity endorsement, where a strong regional identification is associated with the celebrity, the consumers in that particular region show solidarity with the celebrity. • As a result, a brand endorsed by a celebrity often finds strong support in the area from where the celebrities hail. 11/06/2014 53 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  54. 54. 11/06/2014 54 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  55. 55. P3: In case of endorsement by local celebrity, the attitude towards celebrity will be more positive in a society having higher collectivism in comparison to society having higher individualism Impact of Regional Celebrity Society of High Collectivism Attitude towards Celebrity will be more Positive Emphasis on belonging PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 55 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  56. 56. P3: Supporting facts • When Mahendra Singh Dhoni became the number one batsman and captain of Indian cricket team, it led to spurt in sales of products endorsed by him in Ranchi – capital of his home state Jharkhand. • Dhoni struck an emotional chord with the people of his state and this impacted the sale of his endorsed products – from motorcycles to fans. • Similarly, although Katrina Kaif was the most searched celebrity on internet across the country, Aishwarya Rai topped the search charts in Konkan region states like Goa and Karnataka (The Economic Times – 26 July, 2009) from where she hailed. 11/06/2014 56 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  57. 57. • Different stars appealed to different geographic groups of customers (eg., Aishwarya Rai had highest recall in down south as against ShahRukh Khan who had little appeal there. • In early 1980s, when leading actor Dharmendra endorsed Rajdoot motorcycle, its sale increased significantly in state of Punjab, from where Dharmendra hailed. 11/06/2014 57 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  58. 58. • The trend has been realized by corporates in India who have used regional stars for promoting their products in particular states while continuing with national level stars for national campaigns. • Such examples include Dabur using Ravi Kishan in northern state of Uttar Pradesh, Pepsi using Simran for Kurkure in South India, and Emami using Surya for Fair and Handsome in state of Andhra Pradesh. • Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India. 11/06/2014 58 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  59. 59. • Another interesting example would be of Steve Waugh campaigning for Tourism Australia in India since he was one of the popular celebrities from Australia and could carry the message of Australia as a tourist destination. 11/06/2014 59 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  60. 60. Sorry, Angelina: Consumers Aren't Swayed by Celebrity Endorsements (Mark J. Miller on June 14, 2011) • http://www.brandchannel.com/ home/post/2011/06/14/Celebrit y-Endorsements-Study- Adweek.aspx • A new study from Adweek/Harris Interactive shows that consumers don’t give a rip if a celebrity is telling them to buy a product or not. “When a product or service is endorsed by a celebrity, more than three-quarters answered that it has no impact on their intent to buy,” Adweek reports. “Just 4 percent said it makes them more likely to purchase.” Endorsement for Louis Vuitton 11/06/2014 60 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  61. 61. Celebrity Endorsement in Crisis Management..P4 • There are many examples where companies in India have used celebrities to overcome the crisis related with their brands. • The long-term orientation dimension of culture where India has a score of 61 on Long-Term Orientation Index provides some indication for explaining the use of celebrity endorsement in turning around the crisis involving brand. • In case of long term orientation country like India where relationships ordered by status prevails and this order is observed. • The celebrity endorsers capitalize on these relationships built over the years and are able to reduce the negative feelings towards the brands. 11/06/2014 61 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  62. 62. • The explanation for the same can be based on McCracken’s work (1989) who theorized that celebrities bring their own culturally constituted meanings to the endorsement process. • The fact that in long term orientation culture, people do not have probabilistic thinking (Hofstede, 2001) and in case they believe the celebrity endorser, they have full confidence in the celebrity as well as brand. • Accordingly companies in India employ celebrity endorsers for countering the negative news about brands and it turns out to be effective. Thus, we propose 11/06/2014 62 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  63. 63. P4: When a celebrity endorses a brand which is facing negative news, the attitude toward a brand will turn more positive in a society having long term orientation in comparison to society having short term orientation Celebrity Endorsement in Crisis Management Society of High LTO Attitude turns Positive for Brand Relationship built over years PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 63 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  64. 64. P4: Supporting facts • Celebrity is an omnipresent feature of society, blazing lasting impressions in the memories of all who cross its path - Kurzman et.al (2007). • When a neutral research group (Center for Science and Environment, an independent public interest group) in India(2003) alleged that soft drinks manufactured by Coca Cola contained harmful pesticide residue, the company responded by bringing in celebrity endorsement. • Aamir Khan, a leading actor - who enjoys a tremendous fan-base in India, appeared in a television commercial defending Coke and gulping a bottle of the beverage while endorsing Coke’s security standards. 11/06/2014 64 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  65. 65. • Cadbury faced a major embarrassment in 2004 when worms were found in some of its packages in India. Cadbury tried to overcome the worm infestation controversy by vouching for its quality and safety standards. However as the public was not convinced by company’s assurances, Cadbury turned to Amitabh Bachchan to bail it out. • Amitabh Bachchan reinforcing the point that Cadbury had made substantial changes in packaging and was paying attention towards its storage conditions in retail outlets. 11/06/2014 65 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  66. 66. Negative Information about Celebrity…P5 • Amos, Holmes, and Strutton (2008), through a meta-analysis, found that negative information about the celebrity exercised largest impact on celebrity endorsement effectiveness. • However, in India, it has been seen that even when celebrity endorsers go through a bad patch which may lead to a drop in their star power, companies continue with them. • In such cases, the explanation for the phenomenon can be, once again, provided by power distance as well as longterm orientation dimension of culture. 11/06/2014 66 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  67. 67. • Celebrities who are high on status and are able to build franchises with their fans and are often able to sustain it because for individuals with a long term orientation in a country like India, relationships ordered by status prevails and this order is observed (Hofstede, 2001). • Thus even in case of negative information about the celebrities, if the celebrity is on a high pedestal, it will not result into significant degradation of his/her power base. • The congruence between the celebrity and consumer, built over the years, sustains due to longterm orientation of culture. Ultimately in such cases, negative impact on brand endorsement by celebrities will be lesser in countries like India. • Moreover, even in case of negative impact, the process would be much slower, due to high power distance in the society, thereby reducing the impact. Raymond Weil paid Charlize Theron to wear only his watches for two years. During this time, Theron also had a contract with Dior perfume, and was seen at an event wearing a Dior watch. The Muscles from Brussels agreed to shoot a commercial for Total Flex home gym equipment, but when he showed up to the set, he allegedly hadn’t learned his lines or how to use the equipment. 11/06/2014 67 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  68. 68. • For example, Air Jordan's generated revenue sales of $130 million in the first year. The sales dropped miserably in the second year when Jordan missed 62 games due to a broken foot. (celebrity credibility). • Provogue was a brand which used Fardeen Khan as its brand ambassadors. The brand ran into trouble when Fardeen was booked for a drug related case. • Sania Mirza endorses GVK Industries, Sahara, Atlas Cycles, Tata Tea and Sports Authority of Andhra Pradesh. Seeking Mirza's services for endorsements were companies from categories like cola, mobile handsets and services to apparel, footwear and personal care 11/06/2014 68 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  69. 69. • Large incidents like Tiger Woods, with his alleged affaires, or Michael Jackson, alleged child molestation and intimacy, had discredited the accompanying brands Nike and Pepsi (Till & Shimp, 1998; Amos et all., 2008; Louie & Obermiller, 2002). 11/06/2014 69 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  70. 70. • R. Bruce Money, Terence A. Shimp, Tomoaki Sakano (2006) studied the impact of negative information of celebrity on brand. They conducted comparative study in the U.S. and Japan to investigate whether the form of negative information about a celebrity (other- or self-oriented) results in differential evaluations of the brand endorsed by the celebrity. Surprisingly, the study found that both Japanese and Americans view endorsed products more positively in the presence of self-oriented negative information, a possible suspension of the famous fundamental attribution error in human judgment. • Woods’ TV ads were 23% less effective than average, and Americans in general, regardless of gender or age, were equally unreceptive to his ads. Lance Armstrong – doping charges Lady Gaga – flesh of dead animals Kenny Mayne – awful announcement11/06/2014 70Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  71. 71. 2010's Worst Celebrity TV Ads by Negative Lift (Sink) Celebrity Brand Ad Title Lift 1 Tiger Woods Nike Did You Learn Anything? -30% 2 Lance Armstrong Radio Shack No Emoticons -28% 3 Kenny Mayne Gillette Good Segment -28% 4 Dale Earnhardt Jr. Nationwide Auto Insurance Coverage at the Right Price -27% 5 Donald Trump Macy's Making Timmy a Mogul -24% 11/06/2014 71 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  72. 72. • Siyaram Silk Mills Ltd. (Siyaram), one of India's leading textile companies, was also affected badly by South African Cricket Captain Hansie Cronje match fixing controversy. • Pepsi Cola’s series of debacles with three tarnished celebrities – Mike Tyson, Madonna and Michael Jackson. • McDonald's and Nutella both dropped Bryant from their roster of celebrity endorsers after his arrest in sexual assault case. • Moreover, even in case of negative impact, the process would be much slower, due to high power distance in the society, thereby reducing the impact. Thus, author propose 11/06/2014 72 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  73. 73. P5: In case of negative news about a celebrity, its impact on attitude towards celebrity will be less negative in a society having higher power distance and long term orientation in comparison to a society having lower power distance and short term orientation Popularity of celebrity Society of High PD & LTO Attitude towards Celebrity will be more Positive PD & LTO PD I M UAI LTO US 40 91 62 46 29 India 77 48 56 40 61 11/06/2014 73 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  74. 74. P5: Supporting facts • Some of the celebrity endorsers like cricket players Mohammed Azharuddin and Ajay Jadeja were dropped by their respective brands after being dragged into the betting controversy, most of the times in India, the celebrity endorsers continue to enjoy the confidence of brands even in case of negative publicity. • Salman Khan who inspite of involved in cases like shooting down the endangered black buck or allegedly mowing down people who were sleeping on a Mumbai pavement, has appeared for brands like Perfetti’s Chlormint, HUL’s Wheel, and Sangini jewellery. • When Saurabh Ganguly, the then Indian cricket captain was dropped from the team and has been struggling to make a comeback, Pepsi decided not to drop him from the advertisements. 11/06/2014 74 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  75. 75. • Despite jail term, Gitanjali to continue featuring Sanjay Dutt in its ads. Sanjay Dutt, who faces a jail sentence of five years, will continue to twinkle in Gitanjali's Sangini diamond brand campaigns along with wife Manyata for another two years.(ET April 8, 2013). • Thus one can surmise that even when celebrity endorsers go through a bad patch which may lead to a drop in their star power, companies continue their association. 11/06/2014 75 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  76. 76. The Way Forward • The purpose of this paper was to review and synthesize the literature on celebrity endorsements in the light of widely differing practices in nature and quantity of use of the phenomena between developed and emerging markets and to develop a set of propositions that explain the difference using the lens of culture. • The propositions explained in earlier section need to be empirically verified before they can be generalized. • Nevertheless, within the above constraints, the author paper contributes to the literature by (a) bring in the notion of congruence between the celebrity and the consumer as a driver of effectiveness of celebrity endorsements and (b) by offering propositions using the dimensions of culture (like individualism-collectivism, power distance and long term orientation) to suggest ways in which this congruence manifests itself. 11/06/2014 76Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore
  77. 77. Thank You! 11/06/2014 77 Dr. Chandan Chavadi, Associate Professor, Presidency Business School, Bangalore

×