Effect of Celebrity Endorsement on Cellular Phone Product Category

Business Research Method

Group 4

119278001 Aniket Patankar

119278072 Ankur Basumatary

119278109 Sanchit Korgaonkar

119278113 Ashish Mundawane

119278130 Aritra Mukherjee

• Stage 1

• Define managerial problem.

• Develop research problem using theoretical framework.

• Stage 2

• Develop the research design

• Stage 3

• Collect the information

• Stage 4

• Analyze the information

• Stage 5

• Present the findings and make the decision.

2

Research Process

Managerial Decision problem:

Which genre of celebrity should we use for endorsing “Cellular Phone and

service” product category?

Research Problem:

Comparative analysis of endorsement effect of different genre of celebrities

on consumer behavior for “Cellular Phone and service” product category?

Literature Review:

Christian Bergstrom and Rikard Skarfstad (2004), "Celebrity Endorsement -

Case study of J. Lindenberg", International Business and Economics

programme

Stage 1

3

Research Problem

Stage 2

4

Research Design

Phase 3 (Quantitative Research)

Objective

Statistically analyze the relationship between qualitative research outcome

Methodology

Survey

Phase 2 (Qualitative Research - 2)Objective

Analyze the current trend of CE and identify different categories of celebrities

Methodology

Content Analysis of Celebrity endorsements

Phase 1 (Qualitative Research - 1)Objective

Understand the effect of Celebrity Endorsement on Consumer Behavior

Methodology

Focus Group Discussion / Laddering

Independent Variables (five

different categories)

• Film Actor

• Film Actress

• Cricketer

• Other Sports Person

• TV Artists

Moderating Variables (Tears Model)

• Trustworthiness

• Expertise

• Attractiveness

• Respect

• Similarity

Dependent Variables

• Consumer Purchase Intention

• Attitude towards Brand

• Brand Image Association

Stage 3: Outcome

5

Qualitative Research

Stage 3: Survey

6

Quantitative Research

Objectives

• To establish relationship between celebrity categories and TEARS model.

• To find the effect of celebrity Categories on

• Consumer Purchase Intention [CPI]

• Brand Image association [BI]

• Overall attitude towards Brand [OA]

Methodology

• Survey

• Semantic Differential Scale

• Total Sample size – 100

• For each category – 20

• Number of celebrities in each category – 2

Stage 4

7

Statistical Analysis - TEARS Model

Relationship between celebrity categories and TEARS model.

Used MANOVA test

Independent variables – Celebrity category

Dependent variable – TEARS

Analysis:

Pillai’s Trace = 0.001 (significant for 95% )

Inference:

Celebrity categories differ significantly for TEARS model.

Stage 4

8

Statistical Analysis – Dependent Variable

Relationship between Celebrity categories & dependent variables.

Used MANOVA test

Independent variables – Celebrity category

Dependent variable – CPI, BI, OA

Analysis:

Pillai’s Trace = 0.129 (non-significant for 95% )

Inference:

Celebrity categories don’t differ significantly on CPI, BI and OA together.

Stage 4

9

Statistical Analysis – Dependent Variable

AN

OV

A A

nal

ysis Significance level =

0.127 for OA

Significance level = 0.028 for CPI

Significance level = 0.021 for BI

Infe

ren

ce Celebrity categories differ significantly on CPI and BI separately but not on OA

Post

ho

c A

nal

ysis For TV Artist CPI

and BI are significantly lower than other categories.

Infe

ren

ce

Apart from TV artists,Other categoriesDon’t differ significantlyon CPI and BI.

Stage 5

10

Findings and Decision

Cricketer scores highest on TEARS model among all the categories.

Overall Brand Attitude doesn’t depend on celebrity endorsements.

CPI and BI are significantly low for TV artists but other categories can not be differentiated.

Any category of celebrities can be sought apart from TV artists when it comes to Consumer Purchase Intention and Brand Image Association.

Though Cricketers are highly valued personalities among the celebrities, that does not necessarily result a change in the effect of “cellular phone and service” brands on consumers.

Findings

Decision

Thank You !!!

11