Report

On

CELEBRITY ENDORSEMENT AND CONSUMER

PURCHASING BEHAVIOR: AN EXPLORATORY STUDY

By
Ridhi Walia
A0101917135
MBA Class of 2019

Under the Supervision of

Dr. Harminder Kaur Gujral

Professor
AMITY BUSINESS SCHOOL

In Fulfilment of the Requirements for the Degree of

Master of Business Administration
At

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
 DECLARATION

I hereby declare that the work which is being presented in the MBA, in the report entitled-
“Celebrity Endorsement and Consumer Purchasing Decision: An Exploratory Study.”, in
partial fulfilment of the requirements for the award of the Master of Business Administration
& submitted to Amity Business School, Amity University Uttar Pradesh is an authentic
record of my own work carried out.
The matter presented in this Project Report has not been submitted by me for the award of
any other degree elsewhere.

I also declare

(a) That the work presented for assessment in this dissertation Report is my own, that it has

not previously been presented for another assessment & that my debts (for words, data,

arguments & ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation & style set out in the relevant

documentation.

(c) The Plagiarism in the report is ___9___ % ( permissible limit is 15 % )

Date: ……………

Ridhi Walia

A0101917135

MBA–G (Class of 2019)

ii
 CERTIFICATE

This is to certify that Ridhi Walia student of Masters of Business Administration–G at

Amity Business School, Amity University Uttar Pradesh has completed the dissertation
Report on “Celebrity Endorsement and Consumer Purchasing Decision: An Exploratory
Study ”, under my guidance.

The report has been checked for Plagiarism & is within limits of acceptance.

Dr. Harminder Kaur Gujral

Professor

Amity Business School

iii
 ACKNOWLEDGEMENT

Any Achievement does not come from one’s contribution; it requires some support from the
superior to make the task uncomplicated.

I would like to take this opportunity to thank all those who have made working on this project
feasible for me. I would also to express my deep gratitude to my faculty guide Dr.
Harminder Kaur Gujral for their constant generous guidance and support from her
throughout this project. The constant guidance received by her has been of great help in
carrying out the project work & is acknowledged with reverential thanks.

I am extremely thankful to Amity Business School, for providing us infrastructural facilities

to work in, without which this work would not have been possible.

iv
 TABLE OF CONTENTS

Contents Page No.

Authorization ii

Acknowledgement iv

Abstract vii

CHAPTER-1
Introduction 1

CHAPTER-2
Review of the Literature 7

CHAPTER 3
Research Methodology 16

CHAPTER 4
4.1 Demographic Analysis 19

4.2 SPSS Analysis

CHAPTER 5
5.1 Findings 32
5.2 Recommendations
CHAPTER 6
6.1 Conclusion 35
6.2 References

v
 LIST OF FIGURES

Figure 4.1 Age……….………………………….…………………………...20

Figure 4.2 Gender…….……………………………………………………...21
Figure 4.3 Profession……………………..…….……………………………22
Figure 4.4 Income…………………….………….………………………......22
Figure 4.5 Reliability Table……..….………………………………………..23
Figure 4.6 Correlation…………………………………….………………….24
Figure 4.7 Mean And Standard Deviation……………….……………...…...25
Figure 4.8 Regression……..………………………...………………….........29

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 ABSTRACT

Today celebrity endorsement turns into the rich organizations in the world. Advertisers
endorse famous people with their products and brands in the advertisement to build their sales
and change the impression of the viewer's regarding their image, which emphatically impacts
on their purchasing conduct. This research revolves around the celebrity endorsement and its
effect on the customers purchasing behavior and their perception in regards to the product or
brand of the organization. A quantitative strategy is utilized in this examination so as to
explore the effect of celebrity endorsement on purchasing behavior. The questionnaire was
administered to 201 respondents and results were analysed through the SPSS. The
questionnaire was circulated among students of different universities to know their perception
regarding the celebrity and its traits and the effect of celebrity endorsement on their
purchasing conduct. It is reasoned that celebrities supported commercials are more alluring
than the non-endorsed advertisements. Additionally the tested attributes of celebrity show
positive relationship with the purchasing behavior of consumers and brand recognition also.
It likewise demonstrated that there is a significant increase in the sales of the organizations
that endorses celebrities in the advertisement. At last, the aftereffects of the study further
demonstrated that there is a significant impact of celebrity endorsement on the consumer's
purchasing behavior.

Keywords: Celebrity endorsement, Celebrity credibility, Celebrity attractiveness, Celebrity

meaning transfer, Brand image, Purchasing behavior.

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 SECTION I

INTRODUCTION
-------------------------------------------------------------------------------------------------------------
This section introduces the reader to the projects in question. It starts with the brief view of
Organization, teams & narrows down to the project background as well as the limitations of
the Project.
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1
 INTRODUCTION

“Various studies have been conducted on the effectiveness of advertising. There are various
tools to upgrade the efficiency of advertising; celebrity endorsement is one of those
instruments. Since its beginning, i.e., nineteenth century till now, over the long time this
procedure has turned into the best instrument of marketing or advertising an item or brand to
catch the eye of target market and to get the desired outcome from them in terms of their
purchasing decisions in regards to the product or brand being promoted through the technique
named celebrity endorsement. However, this procedure would turn into a winning one just
when the choice of celebrities depends on certain variables. Numerous past analysts have
raised a wide range of variables for that, subsequent to perusing those articles I found a gap
with respect to the best blend of factors that advertisers should focus while choosing the
celebrity to endorse a brand. Besides this, study is directed to find out the impact of
celebrities endorsement on consumers purchasing conduct. It is additionally led to realize
which measurements of celebrity endorsers end up being the winning ones as far as
accomplishing wanted results and to realize that whether the best mix of factors for celebrity
endorsement is same in addition to whether that best mix of factors for celebrity endorsement
is as vital to get persuaded for everybody living anywhere on the planet or there are a few
changes in such manner would happen on having the same dependent and independent
variables study in different geographical areas.”

Background to the Research:

In this day and age the famous people are being treated as a good example. Individuals are
changing their living style related with their most loved celebrities. This thing makes an
extraordinary effect on the purchasing conduct of the people. This pulls in the consumers and
at last expands the organization efficiency. Celebrities are not continually making any sort of
impact on people mind as far as purchasing. Be that as it may, for the most part it gives an
incredible effect on view of picking any item. We are continually imagining that if our most
loved celebrity is utilizing them. At that point we should utilize that to resemble them . From
most recent 150 years publicizing is changing in various stages from the established to
present day. Presently multi day it's the best procedure utilized by advertisers to impact

2
clients by appearing with their items, it incorporates diverse interests lie, energizing, sexual
and so forth.

In this day the famous personalities are being treated as a good example. People are changing
their living style related with their most adored celebrity. This thing makes a mind boggling
impact on the obtaining conduct of the general population. This draws in the customers and
finally fabricates the association efficiency. Celebrities are not consistently having any kind
of effect on individuals mind as far as acquiring. Be that as it may, it gives an exceptional
impact on impression of picking an item. We are continually feeling that on the off chance
that our most adored celebrity is using them, at that point we ought to use that also to take
after them. From most recent 150 years publicizing is changing in different stages from the
customary to present day. It's the best technique utilized by sponsors to impact clients by
embracing famous people for their item, it incorporates different interests lie, energizing,
sexual, etc. Central purpose of arranging such approach is to get high brand revelation,
interest, focus and intrigue. To do accordingly, sponsors add prestigious characters' with their
things. These mainstream characters' had exceptional effect on the buyers obtaining behavior
that is the reason it transforms into the most appealing instrument of advancing now a days.
The huge arrangement to do advancing and get this strategy is to affect customers towards the
things.

Advertisement :

Significant effect of each notice is to make care and remove eagerness in customer’s mind.
Today every association from different businesses uses commercial as their fundamental trait
to engage their products and brands. As demonstrated by the consumer’s purchasing trend, it
ends up fundamental for the associations to use all of the tracts and devices to draw in clients
towards their offering by using different aspects of advancement.

Celebrities:

Numerous scientists presumes that renowned individuals are those people who are
outstanding among the expansive number of people. They have some uniqueness and features
like fascination, interesting method for living or uncommon aptitudes that are not commonly
experiential in like manner individuals. It very well may be said that in the open field they are
not equivalent to the normal natives. Among the model kinds of famous celebrities, on-screen
characters, models, Sports-men are noteworthy.

3
Celebrity Endorsement :

Celebrity support is the promotion procedure to draw in the consumers. By breaking down
the present market, presently it has transformed into the need of the sponsors to use the
popular identities to relate with their brands to make uncommon character of the brand and to
make the interesting picture of the association, which results high consumption for the
association to use that strategy, anyway nowadays it is used to be an amazing imperative
device to get most extraordinary advantage. It likewise demonstrates this can convey chance,
in light of the way that there is no sureness that the celebrity can expand the offers of the
firm. Be that as it may, it can build the consumer' desire for the item in light of the fact that
the celebrity is passing on the association ensure. There are a few cases where the non-
famous personality can work better than the famous people, however it happens just
sometimes.

Brand :

Brand is a given name, image, picture, sign or blend of them that make one item or brand not
the same as other. Brand is tied in with making a couple of association with the customers,
when it exhibits any properties of the brand he basically perceives the brand. It's tied in with
getting people to believe you to be that one exceptional brand that satisfy their requests in
most perfect manner. The extraordinary brand incorporates, clears message conveyance,
ensures your unwavering quality, join with your objective market inwardly, persuade the
buyer and make reliability. To do your image picture compelling first you need to understand
the needs of your clients and subsequently offer any item according to the client's solicitation.
Your image must be in the minds of the clients. At the point when clients acknowledge the
brand, it gets more devotion from the clients and lives for long in the market. Brand is a great
deal of bits of learning and depictions that imply an organization's items, anyway various
people think brand just as a name or picture yet in all really it is past that and have greater
definition and expansion. It's the general image of the item; it is the device, which join the
consumer's heart and mind.

Attention, mindfulness, mentality :

The celebrity endorsement are being used to get the thought of the clients, by incorporating
the best models in their advertisements and influence people to get thought towards the item
since this will inevitably raise the potential customers of that association. In this technique

4
the message of the rule rationale of the item and brand is passed on by the known
personalities. So they are for the most part ideal by the organizations for creating mindfulness
with respect to the item and brand among the customers.

Purchasing behavior :

Purchasing behavior is a method by which a people search for the item and brand they need
and settle on choices to buy the required and most appropriate item from different decisions
accessible in the market. For settling on advertising choices, purchasing process demonstrate
assumes a critical job for every one of the general population. It makes publicists to consider
each progression of this methodology essential provided that advertiser will just consider the
last purchase choice then it might be past the point of no return for the association to impact
the decisions and inclinations of the clients. As demonstrated by this model the customers
experience all stages for obtaining every one of the merchandise and ventures. Anyway in a
portion of the instances of normal purchases, customes regularly acquire a portion of the
stages.

Factors affecting purchasing behavior :

There are a few factors that impact purchasing conduct and shift starting with one individual
then onto the next, forever and region to territory. Each overall population seeks after its own
one of a kind measures, culture and characteristics. At different periods of life our tendencies
changes as a result of our age, needs, way of life and mental components. These parts can be
Internal (memory and perspective) or External (media, informal, exposure and input). There
are a couple of variables, which influences the buying conduct:

• Cultural impacts: it has the broadest and the most significant impact on acquiring conduct.
Culture is a trim procedure, for a culture to exist, individual from a gathering or society
having unmistakable characteristics, models, qualities and standards, which changes time to
time..

• Social impacts: social impacts are those effects that obviously forms the buying conduct, it
impacts through reference gatherings, relatives and social class. Social qualities can change
and should be seen by sponsors. Overlooking this most significant and biggest factor can be
in all regards costly for association as far as picture and benefit

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• Family impacts: family life cycle and family basic leadership has the real impact on one's
obtaining conduct.

• Psychological impacts: these impacts are connected with our discernment, learning,
memory and motivation. It changes obtaining conduct through making the obvious image of
the item in customer’s mind. Customer's buying conduct can be influenced by different
factors like: discernment, convictions, society, identity, accessibility of data, taste and
inclinations and correspondence.

Impact of endorsement on purchasing behavior:

Advertisement is the action that impacts individuals of a particular market to buy items or
brands. Through different ways the advertisement message can be spread like TV
commercials, radio presentation, print progression, internet publicizing, in-store promote,
verbal publicizing and underwriting. By and by the inquiry that develops is what mode of
advancement is the best? The best thought of advancement depends upon the sort of industry
or firm and its necessities and needs. Celebrity endorsement is a viable strategy for giving
centrality to brands. The basic conviction of the sponsors is that there is a basic and immense
impact of those advertisements, which are grasped by the notable celebrities as opposed to
the notices which are not embraced by famous people.

Research Objectives:

 To analyse the perception of customers regarding celebrity endorsement.

 To study the impact of celebrity endorsement on consumers buying behaviour.
 To study the impact of celebrity endorsement on the brand image of the company

6
 SECTION II
LITERATURE REVIEW
---------------------------------------------------------------------------------------------------------------
This section gives a literature review of all the research papers & articles that I have gone
through to get more knowledge about the topic & tried to understand the topic.

7
 REVIEW OF LITERATURE

“Celebrity:

Advertisers believe that celebrities presence in the advertisements plays a important role to
convince the audience (CHOI and Rifon, 2007). Famous personalities are those who got
appreciation from the general public and posses some special and appealing characteristics
like credibility or attractiveness (McCracken, 1889; Silvera; Austad, 2004). The title
'Celebrity Endorsement' means a person who is known by everyone very well, for example,
showbiz stars, athletes, politicians, social workers, etc. (Friedman and Friedman, 1979).”

Celebrity endorsement:

Journal of marketing & communication – A study on the impact of celebrity endorsement by

stated that now celebrity endorsement is becoming a winning formula for companies to
improve their brand image and sales of the company. To create a significant impact on target
customers companies are now using celebrities to make their brands prominent, recognizable
and to influence viewers because people are more attractive towards celebrities and can easily
retain their message (Jayant Sonwalker, Manohar Kapse & Anuradha)”

‘Celebrity endorsement in India-Emerging trends and challenges’ stated that Celebrity

Endorsement is a dinamic tool that uses popular personalities and associate their public image
with the brands to which helps in creating or developing the brands’ image. It has become a
profitable tool for companies which creates a unique image of brand in the minds of targeted
consumers over competitive brands present in the market ( Datta SP April, 2010).”

Celebrity is a person who has a spark to attract and grab the attention of viewers, fascinate
them and reach desired actions from general public towards items (Gupta, 2009). Thus, the
term celebrity’s advocacy means the marketing strategy of using famous personalities to
advocate brands. Celebrity advocacy proved to be an essential tool in promoting the deals
related to brand, in bringing desired emotions towards brands and creating the recognition of
proprietary product as well as brand. Well recognized personalities speaking about any brand
creates a great degree of appeal and trust in the minds of customers and this speech would

8
have much higher impact than from those speeches made by any unknown model(s)
(Kambitsis, Harahousou, Theodorakis, & Chatzibeis, 2002). Superstar supports have been
utilized as a premise of showcasing techniques for the advancements of the marked items
(Klaus & Bailey, 2008) and are an inclusive component embraced by overall proprietary
names (O'Mahony & Meenaghan, 1998)”

For the accomplishment of engaging impact, a appropriate association between the celebrities
and the items supported or the famous people's identities in regards to a few parts of the
items is imperative (Ohanian, 1991) Celebrity endorsers has a considerable impact for brands
that has a great impact on consumers’ mind. For example, form apparel and gems retailers
when they embrace famous personalities, it can create a more remarkable unwavering quality
and additionally reassuring brand appraisal from purchasers (Friedman & Friedman, 1979;
Kamins, Brand, Hoeke & Moe, 1989; Dean & Biswas, 2001).”

Forms of celebrity endorsement:

Nowadays celebrity endorsement is being practicing in various forms like, print

advertisement in magazines or newspapers, celebrities appearance in TVs, celebrities
promoting brands in some programs, through music, through mobile vans, etc. such
superstars could be known ones or new ones as well (Eshaghpour, 2010). Organizations
should select the well-known personalities by considering the message they want to convey
to the consumers, brand personality and organizations’ marketing budget only then can it
become a winning tool for any brand in terms of achieving their desired objective by
celebrity endorsement.”

Advantages of celebrity endorsement:

Despite the fact that it’s a costly marketing technique, it has lots of advantages as well. By
utilizing the famous people’s acknowledgment, the organizations could increase numerous
benefits out of it.(Mcaleer, 2010) Firstly, marketer should start thinking in a direction that if a
reputed personality is using a brand then this brand must be of that ability and calibre.
Another main advantage is that attention of audience can easily be grabbed for brand by the
endorsement of famous persons or superstars. Thirdly, brands can easily get a lot of exposure
in public, TV, newspaper, magazine, news, shows, etc., when popular celebrities use or wear
that brand. Fourthly, brands endorsed by famous celebrities are usually costly so profitability

9
and return on investment would probably be higher in this scenario (Farrell, Karels, Monfort
& McClatchey, 2000; Erdogan et al., 2001). This technique has been proved as a successful
one to help customers in identifying the brands, their points of differentiation with the
competitive brands and also in retaining and recalling such brand names (Burroughs &
Feinberg, 1987).”

Celebrity endorsement reference groups:

Social gatherings have a significant influence on people mind in context of their lifestyle
(Bearden & Etzel, 1982). Marketers try to be look like famous persons. Celebrities are those
reference groups which are not personally known by common people but people want to be
like their favorite celebrities (Solomon, 2006).”

Celebrity & Non-Celebrity Endorsement:

Researches showed that speeches by celebrities which promotes brands results in more
impactful and productive influence than those speeches done by non-celebrities (Seno &
Lukas, 2007). The ultimate objective of taking celebrities support is to build a desired and
strong brand image and desired behavior of consumer towards the brand. As opposed to this,
celebrity endorsers have successfully built a character and a strong identity of themselves as
time passes (Tom et al., 1992). Prior researches about celebrity advocacy proves when
contrasted with non-celebrity advocator, celebrity proponent has created greater certifiable
practices toward advertising and expanded purchasing target (Atkin & Block, 1983; Petty et
al., 1983; Ohanian, 1991).”

Factors Affecting Celebrity Endorsement and relevant Models:

There are different factors and variables of celebrities influencing the consumer buying
behavior when such celebrities endorse any brand. Marketers have to consider various factors
while selecting celebrity to endorse brand to get the desired result to use this tool of celebrity
endorsement in terms of brand image, consumer buying behavior and attaining desired
market share. Previous researchers have also focused on different mix of factors related to the
celebrity endorsement which influence consumer purchasing behavior, this research is
concerned with relatively a different and most accurate mix of variables that a marketer
should consider while choosing celebrities to endorse any brand to get the desired effect on
consumer purchasing behavior. Those variables are:”

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 Credibility:

Credibility refers to the level of credibility a recipient has towards a message given by the
source and expertise of the source or deliverer (Ohanian, 1990). Earlier source credibility was
just considered as an endorser credibility in a commercial (Aronson, Turner, & Carlsmith,
1963). It has proved as a significant factor affecting customer purchasing behavior and their
attitude towards marketing communications (Lutz, MacKenzie, & Belch, 1983). Previous
publications described trio facets of it which are trustworthiness, expertise & attractiveness
(Baker & Churchill, 1977; Giffin, 1967; Hovland, Janis, & Kelley, 1953; Joseph, 1982;
Kahle, & Homer, 1985; Maddux & Rogers, 1980; Mills & Harvey, 1972).”

 Source credibility model:

Celebrity’s integrity relies on their physical attractiveness, trustworthiness and expertise thats
why researchers who wants to study the effectiveness of the celebrity endorsement have to
consider this model (Ohanian, 1990).”

 Physical Attractiveness:

Attractiveness has the power that can easily persuade and grab the attention of viewers but it
doesn’t only just relate with the body but the entire physical traits comes under the measure
of attractiveness which includes, hair, facial features, height, weight, complexion, etc and
normally celebrities have to be attractive to have an impact and influence on the audience and
viewers (Temple, 2009).”

 Source Attractiveness Model:

Attractive celebrities are most commonly used by organizations for promoting their brands
since the inception of this marketing strategy (Erdogan, 1999), once the customers gets
attracted and inspire with the attractive personality of celebrity then they get more involved in
the message given by celebrities and then the chances of customers conviction towards the
message of celebrities become more resultful (Baker & Churchill, 1977; Chaiken, 1979;
Debevec & Keman, 1984) such fruitful results probability is normally low with less attractive
celebrities.”

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 Trustworthiness:

Trustworthiness is the degree of believability or trust that the listeners have for the speaker
(Hovland, 1953). In case of celebrity endorsement it refers to the buyer’s trust on celebrities
message for brand (Ohanian, 1991). In other words if consumers have a trust on celebrity that
is being endorsed then the message of such celebrity will be more impactful & influential and
will help a lot in changing the perception of customers towards the desired action what
organizations want to achieve for their brand (Miller and Baseheart, 1969).”

 Expertise:

Expertise is the measure of communicator’s aptitude and attitude which influences consumers
decision towards purchasing a brand. Researchers believe that celebrities with relative and
high talent and expertise prove to be more successful in persuading the minds of customers
than those who just have physical attractiveness not the combination of attractiveness and
expertise (Till and Busler 1998).”

 Emotional involvement:

Emotional Involvement means the buying behavior of customers is directly proportional to is

use and likeness by celebrity (endorser) for the brand that celebrity is endorsing (Cronley et
al., 1999; Silvera and Austad, 2004). Adding to this, emotional attachment of audience with
their favorite celebrities becomes more fruitful in terms of their believability for the message
given by that celebrity.”

 Meaning transfer:

The Meaning Transfer Model by McCracken (1989) clarifies the adequacy of celebrity
spokespersons in terms of what purchasers reconsile with the endorser and in the end
exchanging the brand. McCracken described this model in three stages. First stage covers the
message that is being transferred by celebrity to the brand, in the second stage message from
the brand gets transferred to the consumer and in the third stage that message leaves the
impact on consumer’s minds and ultimately on customers’ decision to buy that brand.”

Consumer buying behaviour:

Buying behavior refers to the probability that a consumer would buy the brand (Phelps and
Hoy, 1996). Perner (2009) described purchasing behavior as customer identifying their needs

12
and then start investigating for alternatives and after that selecting the appropriate one and
then buy that product, use the product and then discard that and then on the basis of past
experience decision regarding repurchasing the same product or switching on other one will
take place.”

Stages in consumer choice taking steps:

Process starts by acknowledging a disfunctioning or problem called the problem recognition

stage. Then a person start searching for the information for the solution of a problem this is
known as information search stage. Then as a result of the information collected people
becomes able to evaluate the solutions and alternatives they have to resolve their problem.
Then the time comes to take a purchase decision for the most appropriate alternative they
have choose to evaluate among the all they have in their choice. Then after using the selected
alternative, buyer become able to assess the performance of the brand that whether it fulfilled
the desired expectations of the consumer or not and whether to buy that product again or
not.”

Factors influencing purchase decision:

There are three factors that influence purchasing behavior. Such factors play a criticial role
on consumer buying behavior (Satish. K. Batra, 2008). Social factors include the social
gathering or surrounding, culture and subculture, friends, relatives, family, colleagues. These
people have a huge influence on the buying behavior of consumers. Mental factors means the
internal state of mind or the way of thinking of customer. It includes inspiration, recognition,
learning and state of mind of buyer or client. Personal or individual factors incorporate
individual’s statistical elements, way of life, and situational factors.”

Celebrity endorsement as a marketing tool :

When we talk about the point of view of showcasing interchanges, it turns out to be
gigantically vital to make such techniques that give aggressive differential preferred
standpoint to its items and brand that bring about making positive picture on the customers
mind.(Erdogan and Baker 1999) states that celebrity endorsement is the frequently utilized
promoting apparatus.
Organizations spend a great deal of cash for contracting celebrities to endorse their items,
such celebrities are seen by others as being dynamic, amiable and appealing. Advertisers
attempt to adjust these components of celebrities to their items. As per (Cooper 1984),

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promotions that endorse celebrities increase higher level of offer, consideration and review
rate than those notices with don't support celebrities.. (Farrell 2000) states that celebrity
endorsement realizes positive acknowledgment just as monetary profits for the organization.
Numerous looks into have been led for the supports done by superstars, a large number of
which demonstrates that this procedure has given the organization beneficial outcomes, yet in
certain examples scientists specifies that big name underwriting doesn't work constantly and
don't give the advertisers a chance to accomplish their ideal outcomes. Truth be told, a few
times the commercials utilizing big names don't get together the desires for the advertiser."

It was at first discovered that big name underwriting is a success win technique with no
hazard included, however this was refuted and a few potential dangers were seen in this
system.

Celebrity endorsement is a two edged sword which may represent the moment of truth a
brand if not dealt with cautiously the manner in which it ought to have been.

Positive effects of celebrity endorsement :

(R. Croft) cited that as competition is increasing between the firms to attract more numbers of
consumers towards their brands, celebrities are increasingly used by the advertisers to
endorse their brands.. (kulkarni, 2005) (Kulkarni and Gaulkar 2005) mentions that featuring
a famous personality helps the advertisers in solving the problem of over communication.”
“Celebrities because of their famous credibility can assist advertisements to become more
popular and stand out from the crowd and increase communicative ability. Celebrity
endorsement helps in improving the brand’s image and also helps consumers in recognising
that brand. Celebrity endorsement can also prove to be a powerful strategy in entering foreign
markets also, it helps the companies to overcome various issues. For example, L,Oreal uses
Ashwariya Rai and Sonam Kapoor in their White Perfect range, Kareena Kapoor in Lakme
Eye conic kajal and Kajol in Olay aging cream are all considered popular in India.”
“It is also seen that the products which are endorsed by celebrities’ standout from other
competing products also because of their high level of recognition and celebrities also create
an impact in the minds of the consumers by making the advertisement memorable so it can be
easily retrieved at the time of shopping.”

14
Negative effects of celebrity endorsement:
Celebrity endorsement likewise has endless advantages however there are additionally sure
risks that are related with the celebrities support as an advertising instrument. Negative
exposure about the famous personalities is a noteworthy risk with endorsing a celebrity and
there are some different factors likewise that can prompt genuine results like:
• Popularity begins diminishing
• Moral issues
• Over underwriting can prompt losing validity.
• Overshadowing of supported items.

Negative exposure about a celebrity endorsing a brand can change the impression of the
focused on market about that celebrity and it might likewise harm the notoriety of brand
coming about promoters to pay a major cost for the superstar's scandals and face some
genuine mortification and shame for that. (Kumar 2010) stats that there are times when
customers really sees the superstar seeming just instead of the item, thus this plan to advance
that brand flops wretchedly. (Cooper 1984) says that "the item not the celebrity must be the
genius." This overshadowing is additionally called "vampire impact" in light of the fact that
there is absence of clarity in the minds of purchasers since they are found to take more
interest and propensity for the celerity as opposed to the item. Another issue that emerges is
that of overexposure when promoters utilize all around perceived famous people to endorse
their brands and it eventually confused the purchasers and they are unfit to effectively
perceive that brand which celebrities represents.

15
 SECTION III
METHODOLOGY
---------------------------------------------------------------------------------------------------------------
This section starts with the purpose of our study i.e. the vision of our study and further tells
us that how we are going to reach that vision i.e. the type of research that is used in this
study.

16
 RESEARCH METHODS AND PROCEDURES

PURPOSE :

1. To analyze the perception of customers regarding celebrity endorsement.

2. To study the impact of celebrity endorsement on consumers buying behaviour.
3. To study the impact of celebrity endorsement on the brand image of the company.

METHODOLOGY :

A combination of descriptive and exploratory study is to be adopted. A survey of people of

different age group would be conducted and analysis would be done for the collected data.
People would be asked to share their perception regarding these advertisements to analyse the
impact of celebrity endorsement on the consumer purchasing decision

PROCESS:
Started reading research papers & got the basic insight of the celebrity endorsement and
consumer buying behavior. After studying the celebrity endorsement, started designing the
questionnaire based on it to know the factors that effects the purchasing decisions of the
customers.

Developed a questionnaire:

A questionnaire is a research instrument abiding of a series of questions for the purpose of

gathering info from respondents. So a questionnaire with different components of customer’s
buying behaviour with respect to celebrity endorsement is designed . The questionnaire
consisted of five basic questions such as name, age, income, gender and occupation. Then
several questions were asked based on the different factors like credibility, emotional
involvement, meaning transfer were asked form the customers. This questionnaire was

17
prepared to gain an in depth knowledge about the perception of consumers for celebrity
endorsement.

DATA COLLECTION:

The data collection process of this thesis began in January 2019 after an insight about the
topic and generation of the questionnaire. The questionnaire was designed in order to
understand the perception of the customers . The questionnaire was circulated among the
people of different age group, gender and geographical areas and response of 210 people was
collected for further research.

Primary data:

Primarily data has been collected through Questionnaire but interviews have also conducted
to get the better understanding regarding views or beliefs of respondents about the topic
covered in this paper.

Secondary data:

Secondary sources used in this research for data collection includes, Past literature, e-Books,
e-Journals, e-Articles, etc.

RESEARCH INSTRUMENTS:
A structured questionnaire primarily with likert scale has been adapted for the study. All the
questionnaire items were measured using a five-point likert scale which ranged from (1)
strongly disagree to (5) strongly agree.

RESEARCH TECHNIQUES:

To find out answers to the research questions, data were analysed using the following
techniques: Correlation, Mean. SPSS software was used for analysis purpose.

18
 SECTION IV
DATA ANALYSIS
---------------------------------------------------------------------------------------------------------------
In this section the questions of questionnaire are described and the data which is collected from
the survey is analysed and illustrated which will help us in reaching our conclusion.
---------------------------------------------------------------------------------------------------------------

19
 DATA ANALYSIS

DEMODRAPHIC ANALYSIS:

This pie chart is about the age distribution. As we can see from the chart, most of the
respondents of this survey were between 20 to 30 years age group. The second largest group
consisted of 30 to 40 years old while the smallest groups were people below 20 years.
Nearly 77.1 per cent respondents of this survey were aged between 20-30. And only 3.5
percentage respondents were below 20 age.

20
This question was to determinate the gender division who filled the questionnaire. Out of
201 respondents, 52.2% were female & 47.8% were male. This means that this questionnaire
was answered by 105 female respondents and 96 male respondents.

21
This pie chart shows that most of the respondents are students i.e. 52.2% and after that 19.4%
respondents are doing private jobs and 15.4 % respondents are self employed and 10% are in
government jobs

The next question is about the income of the respondents. ,most of the respondents are
students so they have no personal source of income i.e. 49.8% and rest 25.4% people have
income upto 3 lakhs p.a. , 12.9% respondents have 3-6 lakhs of income p.a. and so on.

22
SPSS ANALYSIS:

SPSS from IBM is used for analysis for the undertaken research. First the reliability test will
be applied to check the validity of the collected data.

RELIABILITY TEST:

The Cronbach’s Alpha score is 0.884 which shows that the questionnaire is reliable.

CORRELATION:

The main result of a correlation is called the correlation coefficient (or "r"). It ranges from -
1.0 to +1.0. The closer r is to +1 or -1, the more closely the two variables are related.

If r is close to 0, it means there is no relationship between the variables. If r is positive, it

means that as one variable gets larger the other gets larger. If r is negative it means that as
one gets larger, the other gets smaller

23
This table shows that there is a positive relationship between independent variable and
dependent variable. All the values are positive which shows that the credibility, meaning
transfer and emotional involvement of viewer with the celebrity brings a significant effect on
purchasing behaviour of customers. Furthermore, in terms of explaining this relationship with
figures mentioned in above table. Credibility has the highest relationship with Meaning
transfer that is 0.829 as compared to that it has with emotional involvement and consumer
purchasing behaviour. Meaning Transfer has the highest correlation with Credibility that is
0.829 as compared to that with emotional involvement and consumer purchasing decision.
Emotional Involvement has the highest degree of relationship with Credibility that is 0.550
than it has with meaning transfer and consumer buying decision. Consumer purchasing
decision which is the dependent variable it has the highest correlation with the credibility that
is 0.600 as compared to that it has with meaning transfer and emotional involvement. This
explanation shows all the factors that marketer should consider for celebrity endorsers, all
those factors will work only when celebrities focuses on having those factors with the most
important factor that is credibility because if consumer has some emotional attachment with
that celebrity and celebrity has transferred the message of the brand they endorse but if they
fails to build that trustworthiness and attraction with the consumers then they will not be able
to bring the desired results in terms of buying behavoir.

24
 MEAN AND STANDARD DEVIATION:

CREDIBILITY:

[Link]. QUESTIONS MEAN S.D.

1 Celebrity in an advertisement encourages you to buy the 2.95 1.210

product.

2 People purchase celebrity endorsed brands to improve their 3.53 1.065

social status.

3 Celebrity holds the viewer's attention in the advertisement. 3.65 1.088

4 Celebrities has the power to change your perceptions for a 3.34 1.132
product.

5 I believe that celebrities also use those products which they 2.86 1.356
themselves endorse.

6 I always compare the products I own with the products that the 3.20 1.310
celebrities are endorsing

7 I think investing large amount of money for using celebrities in 3.80 1.088
advertisement helps companies to increase their total revenue.

8 I will stop buying a product if my favourite celebrity endorsing 3.07 1.264

it gets involved in a scandal

9 Are you able to remember a product because of the celebrity 3.56 1.202
associated with it.

10 Does celebrity give a positive image to the endorsed product 3.64 1.202

25
INTERPRETATION:

Since in this the mean of credibility is lying between 3 to 4 ie neutal to agree which depicts
that people are shifting from neutral to agree and they the credibility variable of celebrity
endorsement has significant impact on consumer purchasing behaviour.

EMOTIONAL INVOLVEMENT:

[Link]. QUESTIONS MEAN S.D.

1 I may purchase a product because it is endorsed by my favourite 3.13 1.384

celebrity

INTERPRETATION:

The mean of emotional involvement is 3.14 which shows that people are moving towards the
agreeing stage which depicts that people agree with that the emotional involvement with the
celebrities have a significant impact on consumer buying behaviour.

26
MEANING TRANSFER:

[Link]. QUESTIONS MEAN S.D.

1 Celebrities convey all the true features of a product. 3.01 1.380

2 I believe products endorsed by celebrities are of good quality 3.13 1.166

3 I think celebrity endorsement helps in strong brand promotion 3.79 1.149

INTERPRETATION:

The highest mean of Meaning Transfer is close to 4 which shows that most of the people
agrees to that meaning transferred by the celebrity for the product has a huge impact on the
consumer purchasing decision.

27
CONSUMER PURCHASING BEHAVIOR:

[Link]. QUESTIONS MEAN S.D.

1 Scandals attached with celebrities destroys the brand image of 3.47 1.182
the company

INTERPRETATION:

The main and the independent variable of the study ie consumer purchasing behaviour has a
mean of 3.47 which show that they are on the agreeing side of this that the celebrity
endorsement has an impact on consumer purchasing decision.

REGRESSION:

Linear regression is the next step up after correlation. It is used when we want to predict the
value of a variable based on the value of another variable. The variable we want to predict is
called the dependent variable (or sometimes, the outcome variable). The variable we are
using to predict the other variable's value is called the independent

Variable (or sometimes, the predictor variable). For example, you could use linear regression
to understand whether exam performance can be predicted based on revision time. If you
have two or more independent variables, rather than just one, you need to use multiple
regressions.

28
INTERPRETATION:

 In the above model it shows that the overall correlation between the independent
variable and dependent variable is R (.601) i.e. 60.1%.
 R square tells us the variance in the dependent variable explained by the independent
variable i.e. 36.1%.
 In the above model the adjusted R square represents that the sample is adequate or
not which shows that the sample is 35.1% adequate.
 This will be used in further research to measure the impact of celebrity endorsement
on buying behaviour.

29
INTERPRETATION:

From the above coefficient table it is shown that the customer credibility increases by 91.7%
for celebrity endorsement and we accept this value as the significance value is 0.000 which is
less than 0.05.

Majority of the questions are based on the credibility variable which shows that there is a
strong impact of celebrity endorsement on consumer purchasing decision.

30
Also the result of coefficient in the model, where beta is .563 of the credibility and t value is
5.352 & p<0.05, which propose that credibility has a significant impact on purchasing
behaviour. Moreover meaning transfer has t=0.468 & p<0.05, therefore, it is further
conducted that both credibility and meaning transfer has a significant impact on the consumer
purchasing decision.

Since the emotional involvement has the negative result, it shows that the increase in
emotional involvement decreases the impact of celebrity endorsement. Finally it could be
concluded that celebrity endorsement has a huge influence and impact on consumer
purchasing behaviour.

31
 SECTION V
FINDINGS AND
RECOMMENDATIONS
---------------------------------------------------------------------------------------------------------------
This section will define the findings and recommendations that will be useful for Oyo rooms and
Fab hotels.
---------------------------------------------------------------------------------------------------------------

32
 FINDINGS

 Even though all the people see celebrities in the advertisements everyday but only 30%
gets motivated to but the product because of celebrity endorsement.
 Majority of the people buy celebrity endorsed products to improve their social status.
 Mostly the larger part of the population agrees to that the celebrity holds the viewer’s
attention in the advertisement and has the power to change the perception for a product.
 Given every one of the information and the aftereffects of the review led we can say that
in spite of the fact that having famous people in notices builds the odds of maintenance to
some degree, yet it additionally expands the expense of the item for the marketers. We
can likewise observe that individuals don't really purchase items due to the celebrity
endorsement it yet additionally different components like value, need and brand and so
forth.
 Considering that it celebrity endorsement might be one of the variables in the consumer
purchasing the item, it can securely be said that it isn't the main or the best factor
affecting them.
 Celebrity endorsement has a very deep impact i.e. most of the people agrees to the fact
that they will stop buying a product if the celebrity endorsing it gets involved in a scandal
and involvement of celebrity in scandals also effects the brand image of the company
 People are able to associate the celebrity with the advertisements and are able to
remember a product because of the celebrity associated with it

33
 RECOMMENDATIONS

 Advertisements should be increasingly compelling if the advertisements execution is

straightforward, simple and free of unessential design components.
 Celebrity endorsements should be increasingly compelling when endorsing a celebrity
who isn't as of now strongly connected with another product or service and audience.
 Celebrity endorsements should be increasingly successful when there are no frequent
changes in superstars who are endorsing the brands.
 It should be progressively compelling when film stars, cricketers utilized instead of some
other famous personalities.
 Celebrity Endorsement can be increasingly powerful when utilized reliably after some
time to build the quality of the connection between the celebrity and the endorsed brand

34
 SECTION VI
CONCLUSION
---------------------------------------------------------------------------------------------------------------
This section will give the conclusion of the project with respect to work done in my dissertation.
---------------------------------------------------------------------------------------------------------------

35
 CONCLUSION

Individuals don't trust commercials on the grounds that the celebrities nowadays can embrace
any item as long as it pays a ton. Individuals will in general lose confidence in such ads and
over the long run the performing artist. The fame and the validity of the celebrity assume a
vital job in drawing in and persuading individuals. Since, Celebrities nowadays embrace a
great deal of items individuals are losing their confidence in them. Despite the fact that the
effect of celebrity endorsement center around the development of the business, the brands
without celebrities and famous identities are not similarly gotten by the clients. The alluring
publicizing efforts and developments and item slogans affect the minds of the consumers to
benefit these items. Regardless of depending on celebrity endorsements, few brands have
implanted their image picture at the forefront of customers' thoughts as the most steady
source. This is especially solid in couple of examples like:

• Body-care products like Himalaya and Dove

• Cosmetics like VLCC products, Lotus

• Beverages like Tata tea, three roses tea

• Washing powders and detergents like Tide, and Ariel

The clients purchase the items based on the nature of the item and the consistency in the
quality. In this way, what the advertisers and association need to do is, discover a way that is
progressively suitable. Have promotions that are important from the viewer’s perspective and
don't add more to the expense of the item. Since the celebrity endorsement more than one
item, brand review for individuals here and there ends up troublesome for the buyers and we
can see that individuals have a propensity for reviewing an item with the celebrity related in
it. So, the advertisers should utilize celebrities in their notice instead of the not all that well
known identities and the advertisers need to make promotions that are increasingly
reasonable and use famous people in their notices all the more cautiously and successfully.

36
 REFERENCES

Ahmed, Rizwan & Kumar Seedani, Sumeet & Kumar Ahuja, Manoj & Kumar Paryani,
Sagar. (2015). Impact of Celebrity Endorsement on Consumer Buying Behavior.

Bafna, A., Gandhi, P., Jain, A., Dantara, V., Desai, K., Dholakiya, M., & Kanabar, H. (2016).
Influence of celebrity endorsements on the consumer behavior for facial care product.
Imperial Journal of Interdisciplinary Research, 2(5).

Jamil, R. A., & Rameez ul Hassan, S. (2014). Influence of celebrity endorsement on

consumer purchase intention for existing products: a comparative study.

Gauns, K. K., Pillai, S. K. B., Kamat, K., Chen, R. F., & Chang, L. C. (2018). Impact of
Celebrity Endorsement on Consumer Buying Behaviour in the State of Goa. IIM
Kozhikode Society & Management Review, 7(1), 45-58.

Roy, S. (2012). To use the obvious choice: Investigating the relative effectiveness of an
overexposed celebrity. Journal of Research for Consumers, (22), 15.

Roy, S., & Moorthi, Y. L. R. (2012). Investigating endorser personality effects on brand
personality: Causation and reverse causation in India. Journal of Brand Strategy, 1(2),
164-179.

Roy, S., & Jain, V. (2016). The meaning transfer process in celebrity endorsements: A
quantitative exploration. In Let’s Get Engaged! Crossing the Threshold of Marketing’s
Engagement Era (pp. 539-544).

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personality.

Baker, M. J., & Churchill Jr, G. A. (1977). The impact of physically attractive models on
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Bowman, J. (2002). Facing advertising reality. Media Asia, 7(26), 14-15.

Chaiken, S. (1979). Communicator physical attractiveness and persuasion. Journal of

Personality and social Psychology, 37(8), 1387.

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Friedman, H. H., Friedman, L. (1979). Endorser effectiveness by product type. Journal of
Advertising Research, 19(5), 67–71.

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utilizing four types of endorsers. Journal of Advertising, 5(3), 22–24.

Goldsmith, R. E., Lafferty, B. A., & Newell, S. J. (2000). The impact of corporate credibility
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Gauns, K. K., Pillai, S. K. B., Kamat, K., Chen, R. F., & Chang, L. C. (2018). Impact of
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Kozhikode Society & Management Review, 7(1), 45-58.

Kumar, A. (2010). Celebrity Endorsements and Its Impact on Consumer Buying Behavior-
In Context to India.

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 APPENDIX

QUESTIONNAIRE:
1) Name:

2) Age:
o Below 20
o 20 – 30
o 30 – 40
o Above 40

3) Gender:
o Female
o Male

4) Profession:
o Student
o Self Employed
o Government Job
o Private Job
o Professional

5) Income:
o No income
o Upto 3 lakhs p.a.
o 3 – 6 lakhs p.a.
o 6 – 10 lakhs p.a.
o Above 10 lakhs p.a.

6) Celebrity in an advertisement encourages you to buy the product.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

39
7) People purchase celebrity endorsed brands to improve their social status.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

8) Celebrity holds the viewer's attention in the advertisement.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

9) Celebrities has the power to change your perceptions for a product.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

10) Celebrities convey all the true features of a product.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

11) I believe products endorsed by celebrities are of good quality

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

40
12) I may purchase a product because it is endorsed by my favourite celebrity

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

13) I believe that celebrities also use those products which they themselves endorse.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

14) I always compare the products I own with the products that the celebrities are
endorsing

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

15) I think investing large amount of money for using celebrities in advertisement helps
companies to increase their total revenue.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

16) I will stop buying a product if my favourite celebrity endorsing it gets involved in a
scandal.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

41
17) Scandals attached with celebrities destroy's the brand image of the company.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

18) Are you able to remember a product because of the celebrity associated with it.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

19) Does celebrity give a positive image to the endorsed product.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

20) I think celebrity endorsement helps in strong brand promotion.

o Strongle disagree
o Disagree
o Neutral
o Agree
o Strongly agree

42
43
44