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A Study on Celebrity Endorsement in Advertisement
A Study on Celebrity Endorsement in Advertisement
Deepika Taparia
Abstract
Celebrity endorsement is one of the major forms of advertising in which
company makes use of famous personality as brand ambassador in order to
boost the interest of consumer. Through this paper, researcher tries to find
out the effect of celebrity endorsement as an effective marketing strategy.
The aim of this paper is to identify the role of celebrities in advertisement
and to find out whether the celebrity endorsers is able to increase the
awareness and recalling capacity of brands in consumer. This paper also
focuses on various positive and negative aspects of celebrity endorsement.
Keywords: Celebrity endorsement, Advertisement, Consumer
Introduction
dvertising is one of the significant and a basic ingredient in
today’s business environment. The term celebrity refers to an
individual who is known to the public for his or her
achievements, classic forms of celebrity like Amitabh Bachchan, Sharukh
Khan. Celebrity endorsement is a special type of advertisement which
includes a famous person from film fraternity, athletes and sports,
modelling world etc. It helps in promoting the product brand and also
increasing the sales of the product. Marketers spend large amount of
money on celebrity endorsement contracts based on the belief that
celebrities are effective spokespersons for their products or brands.
Motives behinds Endorsements by Celebrities
 Instant Credibility
 Brand Awareness and Recall.

Research Scholar, University of Rajasthan, Jaipur
A
Professional Panorama: An International Journal of Management & Technology
A Study on Celebrity Endorsement in Advertisement 90
 To refresh the brand image.
 Celebrities add new dimensions to the brand image.
 To push the demand of the product
Positive Aspect of Celebrity Endorsement
 Celebrity endorsements can be a powerful device to enter foreign
markets. Hiring a world famous celebrity may help the companies to
increase the market share
 For Instance, Pepsi Co Internationally increased its market share in
India by endorsing through famous celebrities such as Hrithik
Roshan, Shahrukh Khan etc.
 Advertisements featuring a celebrity make a strong impact on the
learning style and memory of a consumer. Celebrities often make the
ad more memorable in the mind of the consumer
 The power of popular personalities has developed a kind of
emotional attachment with Indian consumers and this drives them to
choose a particular brand.
 In India especially, the celebrities are being worshipped as “idols” and
are closely followed by most of the Indian population. Such celebrities
such as Amitabh Bachchan (Cadbury) and Kareena Kapoor(Sony
Vaio) have been associated with international and premium Indian
brands, which results in huge returns and also has to do with
improving the consumer’s self-image.
 Celebrity endorsement is not just to increase sales, but to further
boost a brand’s image or even to restore faith in the public over a
failing brand.
Negative Aspect of Celebrity Endorsement
 Negative information about a celebrity endorser not only impacts
consumers' perception about the celebrity, but also the endorsed
product and may also ruin the brand reputation.
Professional Panorama: An International Journal of Management & Technology
A Study on Celebrity Endorsement in Advertisement 91
 In fact many companies have paid a very big price over the celebrity‘s
misdeeds. For instance PepsiCo suffered with stained celebrity
Michael Jackson.
 Companies have faced serious embarrassment when their
spokesperson or celebrity endorsers were deeply involved in a
controversy
Effect of Celebrity Branding on Consumer
 When a customer sees a brand, it immediately reminds about the
celebrity who has endorsed or promoted the brand.
 The image of the celebrity in the ad leaves a lasting impression on
buyer’s mind which motivates him to buy the product.
 Endorsements by famous celebrities whose personality matches that
of the product help to create certain impressions of that brand on
consumers.
 Advertisement of “Swachh Bharat Abhiyan” featuring Amitabh
Bachchan has increased awareness of cleanliness among consumer.
Effect of Celebrity Endorsement on Sales
 The role of celebrities can be highlighted with the example of a
premium brand like Parker which commanded tremendous brand
equity by using leading Indian movie star Amitabh Bachchan to
endorse the brand in India. It resulted in customer retention and
brand recall. Endorsements help boost sales like Amitabh Bachchan
Parker recorded a 30% increase in sales
 The endorsement of Hyundai Santro car by leading actor Shah Rukh
Khan has worked well for the brand
 Santro became the second largest selling car in India within four
years of its launch
 Advertisement of Polio featuring Amitabh Bachchan has increased
awareness of Polio vaccinations.
Professional Panorama: An International Journal of Management & Technology
A Study on Celebrity Endorsement in Advertisement 92
Celebrity Endorsement: Toward Consumer Perception
 Endorsement not only helps increase sales but also helps in changing
the perception of consumers.
 When Cadbury was in news for its worm controversies, Amitabh
Bachchan featured in the ad and acted as a spokesperson to change
the image of the product.
 Similarly it happened with Amir Khan for his product Coca-Cola
controversy when he himself visited the manufacturing plant post
which assured public that Coca-cola is safe to drink. One statement by
testimonial (Amir Khan and Amitabh Bachchan) did change the
perception of the consumers towards Coca-Cola and Cadbury.
 This happens because it’s a human tendency to believe people whom
we like, respect and idolize. We all like some or the other celebrities
and their actions or their word does have an impact on our buying
decisions.
Conclusion
The research study concluded that there is a significant impact of
Celebrity on Consumer. Use of celebrity for a advertisement will
automatically induce their fans to try with the product. Celebrity
endorsement attracts people towards the brand and due the familiarity
of the celebrity, the product brand also gets familiar easily. The celebrity
endorser helps to maintain consumer attention. There is a negative
aspect; negative publicity about the celebrity can reduce the appeal of
the brand which the celebrity endorses.
References
1. Atkin, Charles, Martin Block (1983), Effectiveness of Celebrity
Endorsers, Journal of Advertising Research, 23(1) 57-62
2. Agarwal, Jagdish, Kamakura Wagner A, (1995), The Economic worth
of Celebrity Endorsers: An Event Study Analysis, Journal of Marketing,
59, (3), 56-62
Professional Panorama: An International Journal of Management & Technology
A Study on Celebrity Endorsement in Advertisement 93
3. Alsmadi, Sami (2006), The Power of Celebrity Endorsement in Brand
Choice Behavior: An Empirical Study on Consumer Attitudes in
Jordon”, Journal of Accounting-Business & Management, 13, 69-84
4. James Rorty (1934), Our Master's Voice: Advertising, John Day, 34-36

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A study on celebrity endorsement in advertisement

  • 1. A Study on Celebrity Endorsement in Advertisement A Study on Celebrity Endorsement in Advertisement Deepika Taparia Abstract Celebrity endorsement is one of the major forms of advertising in which company makes use of famous personality as brand ambassador in order to boost the interest of consumer. Through this paper, researcher tries to find out the effect of celebrity endorsement as an effective marketing strategy. The aim of this paper is to identify the role of celebrities in advertisement and to find out whether the celebrity endorsers is able to increase the awareness and recalling capacity of brands in consumer. This paper also focuses on various positive and negative aspects of celebrity endorsement. Keywords: Celebrity endorsement, Advertisement, Consumer Introduction dvertising is one of the significant and a basic ingredient in today’s business environment. The term celebrity refers to an individual who is known to the public for his or her achievements, classic forms of celebrity like Amitabh Bachchan, Sharukh Khan. Celebrity endorsement is a special type of advertisement which includes a famous person from film fraternity, athletes and sports, modelling world etc. It helps in promoting the product brand and also increasing the sales of the product. Marketers spend large amount of money on celebrity endorsement contracts based on the belief that celebrities are effective spokespersons for their products or brands. Motives behinds Endorsements by Celebrities  Instant Credibility  Brand Awareness and Recall.  Research Scholar, University of Rajasthan, Jaipur A
  • 2. Professional Panorama: An International Journal of Management & Technology A Study on Celebrity Endorsement in Advertisement 90  To refresh the brand image.  Celebrities add new dimensions to the brand image.  To push the demand of the product Positive Aspect of Celebrity Endorsement  Celebrity endorsements can be a powerful device to enter foreign markets. Hiring a world famous celebrity may help the companies to increase the market share  For Instance, Pepsi Co Internationally increased its market share in India by endorsing through famous celebrities such as Hrithik Roshan, Shahrukh Khan etc.  Advertisements featuring a celebrity make a strong impact on the learning style and memory of a consumer. Celebrities often make the ad more memorable in the mind of the consumer  The power of popular personalities has developed a kind of emotional attachment with Indian consumers and this drives them to choose a particular brand.  In India especially, the celebrities are being worshipped as “idols” and are closely followed by most of the Indian population. Such celebrities such as Amitabh Bachchan (Cadbury) and Kareena Kapoor(Sony Vaio) have been associated with international and premium Indian brands, which results in huge returns and also has to do with improving the consumer’s self-image.  Celebrity endorsement is not just to increase sales, but to further boost a brand’s image or even to restore faith in the public over a failing brand. Negative Aspect of Celebrity Endorsement  Negative information about a celebrity endorser not only impacts consumers' perception about the celebrity, but also the endorsed product and may also ruin the brand reputation.
  • 3. Professional Panorama: An International Journal of Management & Technology A Study on Celebrity Endorsement in Advertisement 91  In fact many companies have paid a very big price over the celebrity‘s misdeeds. For instance PepsiCo suffered with stained celebrity Michael Jackson.  Companies have faced serious embarrassment when their spokesperson or celebrity endorsers were deeply involved in a controversy Effect of Celebrity Branding on Consumer  When a customer sees a brand, it immediately reminds about the celebrity who has endorsed or promoted the brand.  The image of the celebrity in the ad leaves a lasting impression on buyer’s mind which motivates him to buy the product.  Endorsements by famous celebrities whose personality matches that of the product help to create certain impressions of that brand on consumers.  Advertisement of “Swachh Bharat Abhiyan” featuring Amitabh Bachchan has increased awareness of cleanliness among consumer. Effect of Celebrity Endorsement on Sales  The role of celebrities can be highlighted with the example of a premium brand like Parker which commanded tremendous brand equity by using leading Indian movie star Amitabh Bachchan to endorse the brand in India. It resulted in customer retention and brand recall. Endorsements help boost sales like Amitabh Bachchan Parker recorded a 30% increase in sales  The endorsement of Hyundai Santro car by leading actor Shah Rukh Khan has worked well for the brand  Santro became the second largest selling car in India within four years of its launch  Advertisement of Polio featuring Amitabh Bachchan has increased awareness of Polio vaccinations.
  • 4. Professional Panorama: An International Journal of Management & Technology A Study on Celebrity Endorsement in Advertisement 92 Celebrity Endorsement: Toward Consumer Perception  Endorsement not only helps increase sales but also helps in changing the perception of consumers.  When Cadbury was in news for its worm controversies, Amitabh Bachchan featured in the ad and acted as a spokesperson to change the image of the product.  Similarly it happened with Amir Khan for his product Coca-Cola controversy when he himself visited the manufacturing plant post which assured public that Coca-cola is safe to drink. One statement by testimonial (Amir Khan and Amitabh Bachchan) did change the perception of the consumers towards Coca-Cola and Cadbury.  This happens because it’s a human tendency to believe people whom we like, respect and idolize. We all like some or the other celebrities and their actions or their word does have an impact on our buying decisions. Conclusion The research study concluded that there is a significant impact of Celebrity on Consumer. Use of celebrity for a advertisement will automatically induce their fans to try with the product. Celebrity endorsement attracts people towards the brand and due the familiarity of the celebrity, the product brand also gets familiar easily. The celebrity endorser helps to maintain consumer attention. There is a negative aspect; negative publicity about the celebrity can reduce the appeal of the brand which the celebrity endorses. References 1. Atkin, Charles, Martin Block (1983), Effectiveness of Celebrity Endorsers, Journal of Advertising Research, 23(1) 57-62 2. Agarwal, Jagdish, Kamakura Wagner A, (1995), The Economic worth of Celebrity Endorsers: An Event Study Analysis, Journal of Marketing, 59, (3), 56-62
  • 5. Professional Panorama: An International Journal of Management & Technology A Study on Celebrity Endorsement in Advertisement 93 3. Alsmadi, Sami (2006), The Power of Celebrity Endorsement in Brand Choice Behavior: An Empirical Study on Consumer Attitudes in Jordon”, Journal of Accounting-Business & Management, 13, 69-84 4. James Rorty (1934), Our Master's Voice: Advertising, John Day, 34-36