Study the impact of celebrity endorsement in advertisements on consumer buying behavior

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WELCOME

2. Study the impact of celebrity endorsement in
advertisements on consumer buying behavior
(with special reference to the Udubaddawa area in Kurunegala district)
S.P.K. Iresha
SH/2807
SSH/2011/2012/182
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3. Content
1.INTRODUCTION
Research Problem
Importance of the study
Research objectives
Hypothesis
2. LITERATURE REVIEW
3. METHODOLOGY
4. ACTIVITY PLAN
REFERENCES
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4. 1. Introduction
• In the modern world, organizations are required to introduce innovative products
to compete in a competitive business landscape.
• Advertisement is an effective marketing tool available to marketers to create and
promote awareness for their products and position their products.
• Everyday consumers are exposed to enormous advertisements of different brands.
• Therefor it is very difficult for customers to make product choice.
• This is a serious issue for the companies to convince customers to buy their
product.
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5. • Nowadays, celebrity endorsed advertisements are widely used marketing strategy.
• Most of the cosmetic products use this strategy to build their brand name and increase
their sales.
• Therefor, this study reviews the impact of celebrity endorsement in advertisements on
buying behavior of consumers with related to the cosmetic products.
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6. Research Problem
• Most of the consumer goods are endorsed by celebrities in the different kind of media.
• Many cosmetic products and brands are used the celebrity endorsed advertisements to popular
their brand name and increase sales.
• Udubaddawa area in Kurunegala district, most of the people having television facilities and
also they can connect with the internet and people spend time with these medias.
• Also most of the people are used beauty care products, both men and women.
• Therefor this study focuses on ,whether
“the celebrity endorsed advertisements can influence the buying behavior of
consumers in Udubaddawa area” ?
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7. Importance of the study
• A person living in a country is exposed to lot of advertisements on per day.
• But the viewers tend to forget 80% of the information within 24 hours.
• In order to deal with this, marketers use celebrity endorsement to reinforce their
marketing messages.
• This study is an effort to explore the use of celebrity endorsement in
advertisements and its influence on consumer’s buying behavior.
• This study is a concise on the common need of a person and it is valuable for
marketers, researchers, students and advertisers. It can be further used for study
and research purpose.
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8. Research Objectives
General Objective
To examine the impact of celebrity endorsement in advertisements on consumer buying
behavior.
Specific Objectives
1. To determine the impact of attractiveness of celebrity endorsed advertisements on
consumer buying behavior.
2. To determine the impact of trustworthiness of celebrity endorsed advertisements on
consumer buying behavior.
3. To determine the impact of meaning transfer of celebrity endorsed advertisements on
consumer buying behavior.
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9. Hypothesis
H1 - There is an impact of celebrity endorsement in advertisement on consumer
buying behavior.
H2- There is an impact of attractiveness of celebrity endorsed advertisements on
consumer buying behavior.
H3- There is an impact of trustworthiness of celebrity endorsed advertisements on
consumer buying behavior.
H4- There is an impact of meaning transfer of celebrity endorsed advertisement on
consumer buying behavior.
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10. 2. Literature Review
Author Year Topic Methodology Findings
S. Sivesan
(India)
2013 Impact of celebrity
endorsement on
brand equity in
cosmetic product.
• Primary data was
collected for this study.
• 123 respondents
selected by using
systematic random
sampling method.
• Correlation, regression
are the data analyzing
method.
• SPSS used to analyze
data.
Results revealed that celebrity and
brand equity are positively
correlated.
Ochieng Nyakado
(Kenya)
2013 Investigating
celebrity
endorsement in
relations to
consumer behavior.
• Primary data was
collected by using self
administrated
questionnaires.
• 300 sample was
collected by random
sampling method.
• Descriptive statistical
methods are used to
analyze data by using
SPSS.
• In addition conducted a
multiple regression
analysis.
This study concluded that physical
attractiveness is influenced
customers’ attitude towards the
product.
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11. Author Year Topic Methodology Findings
A.H. Choudhury
and Dr. K.
Mukherjee
(India)
2014 Celebrity
endorsement and
its impact on
students’ buying
behavior towards
personal care
products.
• 1,140 sample was
selected by using
random sampling
method.
• Primary data was
collected by using
structured
questionnaire.
• Apply a wide range of
accepted models to the
research.
Study has revealed that celebrity
endorsement is powerful tool that
magnifies the effects of the
advertisement campaign. Consumers
are significantly influenced by
celebrity endorsed advertisement,
more specially the females.
Anmol Randhawa
and Javeed
AhmedKhan
(India)
2014 Impact of celebrity
endorsement on
consumer buying
behavior.
• Based on both primary
and secondary data.
• For the study compiled
mainly from the primary
sources through a
structured
questionnaire.
• 50 respondents were
selected by randomly.
• Percentage method is
used to analyze the data.
Celebrity endorsement enhances
product information and create
awareness among consumers. It
helps them to recall the brands of
the endorsed products.
Celebrity endorsed advertisements
persuade customers to purchase
products rather than non celebrity.
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12. Conceptual framework
Celebrity endorsed
advertisement
Attractiveness
Trustworthiness
Meaning Transfer
Buying behavior
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3. Methodology

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• This study will be focused on Udubaddawa area in Kurunegala district.
• The target sample is 100 customers from general public who are using cosmetic products in Udubaddawa
area.
• Data will be collected by using simple random sampling method.
Source: Google Map

14. • Primary data will be collected through structured questionnaires measure with five point Likert’s
scale.
• Secondary data will be collected from research studies, books, journals, newspapers and web-
sites.
Data collection
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Method of data analyzing
• Descriptive statistical techniques will be used to discover the characteristic behavior and the
pattern of the sample.
• The result of the study will be analyzed through quantitative, regression and frequency
analysis.
• The data will be processed through SPSS to get the results.

15. Y= β0+ β1X1i+β2X2i+β3X3i
Y = Consumer buying behavior
β0 = Intercept
X1i= attractiveness of celebrity endorsed advertisements
X2i= trustworthiness of celebrity endorsed advertisements
X3i= meaning transfer of celebrity endorsed advertisements
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16. Method of data presentation
In the presentation of data in addition to the basic statistical figures bar charts, pie
charts and tables will use for the effectiveness of data presentation.
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17. Activities
December
January February
March April
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1. Select the topic
2. Review of literature
3. Write the research proposal and
submit the research proposal
4. Data collection from the sample.
5. Analyzing of data
6. Report writing
7.Submision of research report
4. Activity Plan
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18. References
• Agrawal,J. and Wagner A.K.(1995), The Economic worth of celebrity endorsers: An event study analysis,
Journal of marketing, 59,56-62.
• Shimp,T.A (1981), Attitude toward the AD as a mediator of consumer brand choice, Journal of
Advertising, 10(2), 9-14.
• Zafar,R.M (2009), Celebrity endorsement in advertisement. In impact on the overall brand is of
significance and got recognition, Asian Journal Business and management science, 53-67.
• Philip Kotler Centre for Advance Marketing (PKCAM), Celebrity index report of Sri Lanka 2014-2015,
University of Kelaniya, Sri Lanka
• https://en.wikipedia.org/wiki/Celebrity_branding (2017.01.08)
• http://www.euromonitor.com/celebrity-power-and-its-influence-on-global-consumer-behaviour/report
• http://www.businessdictionary.com/definition/celebrity-endorsement.html
• https://globaljournals.org/GJMBR_Volume11/8-Celebrity-Endorsement-And-Its-Impact.pdf
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