final project on effectiveness of celebrity endorsement on consumer behaviour

ACOMPREHENSIVE PROJECT REPORT

ON

“Effectiveness of Celebrity Endorsement On Consumer Buying Behaviour”

Project Report Submitted For Partial Fulfilment of Award of MBA

Degree

PROJECT GUIDE

PROF.SONU GUPTA

SUBMITTED BYANAGHAN YOGESH-04

SUBMITTED TO

S. K. Patel Institute of Management and Computer Studies,

Gandhinagar

Batch 2011-13

CERTIFICATE

This is to certify that Mr. Anaghan Yogesh Student of S. K. Patel Institute of Management and Computer Studies, Gandhinagar has submitted his Grand Project titled, “Effectiveness of celebrity endorsement on consumer Behaviour”. In the year 2012-2013 in partial fulfilment of Kadi Sarva Vishwavidyalaya requirements for the award of the degree of Master of Business Administration.

Dr. Bhavin Pandya Prof. Sonu Gupta

(Director) (Project Guide)

Date:-

DECLARATION

We, hereby declare that the Summer Project titled, “Market research & Generating the lead for hotel Gateway Hotel Ummed In Ahmedabad City” is original to the best of our knowledge and hasn’t been published elsewhere. This is for the purpose of partial fulfilment of Kadi Sarva Vidyalaya requirements for the

award of the degree of Master of Business Administration only.

Yogesh Anaghan _________________

ACKNOWLEDGMENT

No task is a single person effort, same is with this project. Thus I would like to extend our sincere thanks to all those people who helped me in accomplishing our project.

I owe our project success to Professor & all members of the organization who give us this wonderful opportunity and guidance.

And last but not the least special thanks to Prof. Sonu Gupta (Project Guide) of SKPIMCS for providing excellent Guidance for the successful completion of this project. This project provided us a platform to increase our knowledge and empowered us with a better understanding of concepts in the real world scenario.

Executive Summary

India is a country where people love to live in dreams. They worship celebrities. Celebrities may be Cricket stars like Sachin Tendulkar, Mahinder Singh Dhoni or Film Stars like Salman Khan, John Ebrahim, Shahrukh khan. They treat them as God. Marketers use this very preposition so as to influence their target customers may be existing or potential ones.

For this they rope in these celebrities and give them whopping amount of money. They believe that by doing this they can associate their products with their target customers. This is called celebrity endorsement.

Objective of this project is to know how celebrity impacts on consumer’s buying behaviour. Project includes many type of celebrity endorsement related question to ask.

Project includes survey of 200 questionnaire. This research is limited to Gandhinagar City only due to various constraints like time available, scarcity of resources etc. From this we can make an attempt to generalize the result to the whole universe. I have taken survey of 200 people includes Male & Female.

INTRODUCTION

In today‟s competitive world consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Advertisers attempts to steal at least a fraction of a person's time to inform him or her of the amazing and different attributes of the product at hand. Because of the constant media saturation that most people experience daily, they eventually become numb to the standard marketing techniques. The challenge of the marketer is to find a hook that will hold the consumer‟s attention. The hooks that can hold the consumer‟s attention are the celebrities. Celebrity endorsement if used effectively makes the brand stand out, brand recall and facilitates instant awareness. To achieve this, the marketer needs to be really disciplined in choice of a celebrity. Hence the right use of celebrity can escalate the Unique Selling Proposition of a brand to new heights; but a cursory orientation of a celebrity with a brand may prove to be fruitful for a brand. A celebrity is a means to an end, and not an end. Celebrity Endorsement is a way to get the brand noticed amidst the rush that is there in the market place.

There is a huge Impact of Celebrity Endorsements among the consumers through Tv commercials in India as Indians like the celebrities a lot and there is a huge fan following. A consumer that observes messages for two different firm‟s products, one product‟s message containing a celebrity endorsed and the other not believes the celebrity endorsed product will have more purchases and so be of higher value. (Lalitha Balakrishnan and C.Shalini Kumar, 2010). More and more companies prefer the celebrities of different fields in India like the cricketers, Bollywood celebrities and other sports personalities to endorse their brands. Marketers spend enormous amount of money on celebrity endorsement contracts based on the belief that celebrities are effective spokespersons for their products or brands (Katayal, 2007). Television is something which is watched all over India by the people of all class whether the people belong to lower class or middle class or upper class, all of them watch television to entertain themselves. In India, celebrity power can rightly be assessed by their successful endorsements. Here, celebrities like film stars and cricketers have not only been successful in gathering huge public attention, but also in increasing sales volume.

For example, Cadbury used Amitabh Bachchan to promote the brand when it went through a bad phase in India. Soon the ad recreated people‟s love for the brand and increased Cadbury‟s sale. Aamir Khan is used by Titan to communicate the message that Titan watches are as trustworthy as the actor is for his films. This celebrity endorsement has also been quite effective in influencing consumers buying decision. Similarly, various endorsements by Sharukh Khan, Sachin Tendulkar and others have been found to be successful in affecting consumers‟ buying decision.

'Celebrity Endorsement'

McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoyspublic recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (marcoms), is useful, because when celebrities are depicted in marcoms, they bring their own culturally related meanings, thereto, irrespective of the required promotional role."

Friedman and Friedman (1979) found empirical evidence that, in the promotion ofproducts high in psychological and/or social risk, use of celebrity endorser would lead togreater believability, a more favorable evaluation of the product and advertisement, and asignificantly more positive purchase intention.

Scope of Celebriity Endorsement:

The use of testimonials by advertisers dates back to the 19th century when medicineswere patented. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g., athletes, actors) in the hope that celebrities may boost effectiveness of their marketing.The increasing number of endorsements throws a valid question to the consumers. Is there a science behind the choice of these endorsers or is it just by the popularity measurement? What are the reasons which lead to impact of celebrity endorsement on brands? Greater the score of the below parameters, greater are the chances of getting close to the desired impact.

LITERATURE REVIEW

Friedman & Friedman(1979) explains The term “celebrity” refers to an „individual who is known to the public, such as actors, sport figures, entertainers‟ and others of the like for his or her achievement in areas other than that of the product class endorsed. Copper (1984) explained that the general belief among advertisers is that advertising messages delivered by celebrities provide a higher degree of appeal, attention and possibly message recall than those delivered by noncelebrities. Marketers also claim that celebrities affect the credibility of the claims made, increase the memorability of the message, and may provide a positive effect that could be generalized to the brand. (Ohanian 1991) The use of (by corresponding standards) attractive people is common practice in television and print advertising, with physically attractive communicators having proved to be more successful in influencing customers‟ attitudes and beliefs than unattractive spokespersons. Menon (1998) examined the effectiveness of advertisement endorsed by celebrities and normal person. In this paper he examined the effectiveness by using the multivariate analysis. In the advertisements for Milk, believability, knowledge, appearance and liking for the celebrity were highly correlated to each other and also with purchase intentions. For advertising with non-celebrity spokesperson, credibility was highly correlated to advertising believability, which was in turn correlated to purchase intentions. For advertisements about Pepsi-Cola significant correlations were identified between credibility and knowledge and between advertising believability and purchase intentions. Celebrity appearance, knowledge, liking, and credibility of the celebrity were also highly correlated with advertising believability. At the same time, liking for the celebrity and advertising believability were both correlated with purchase intentions. For advertising execution that involves non-celebrities, the analysis indicates that appearance, credibility and knowledge were highly correlated with advertising believability. At the end he concluded that advertisers need to be cautious when using celebrity advertising as they are not believable in certain instances and hence may not deliver the intended effect. This is certainly true of those celebrities who are seen as endorsing many types of products across a wide spectrum. It would seem that for some classes of products, person-on-the-street type of advertising might be just as effective if not more so than those that use celebrities. Laferty and Goldsmith (1999) finds that Endorser credibility is one of the most frequently used methods in advertising to influence consumers‟ attitudes and purchase intentions. Corporate credibility, or the reputation of the firm, is another source of credibility identified in marketing that can influence these cognitions. They examined these two sources of credibility to assess their impact on attitude-toward-the-ad, attitude-toward-the-brand, and purchase intentions. between-subjects factorial design was used. One hundred women students were shown one of our mock magazine ads. The results indicated that both credibility types influence attitudetoward- the-ad and attitude-toward-the-brand, but corporate credibility alone appears to have a significant influence on purchase intentions. Moreover, whereas endorser credibility seems to have a greater influence on attitude-toward-the-ad, corporate credibility seems to have a greater influence on attitude-toward-the-brand and on purchase intentions. (Dinesh Kumar Gupta, 2007) The effectiveness of using a celebrity to endorse a firm's product can generally be improved by matching the image of the celebrity with the personality of the product and the actual or desired self concept of the target market.

REASONS OF ADOPTING THE CELEBRITIES IN ENDORSING THE PRODUCT

Nowadays marketers do not only want to maximize the sales of the product but also to create the brand equity. For creating the brand equity they are using the celebrities in advertisements.

Mechanism and theories of celebrity endorsement

Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited by showing him a known face, and an effective demand is created. In short it helps increase the recall value of the brand.

According to Source Credibility Theory, acceptance of the message depends on'Expertness' and Trustworthiness' of the source. Expertness is defined as the perceived ability of the source to make valid assertions. Trustworthiness is defined as the perceived willingness of the source to make valid assertions. Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product. According to Source Attractiveness Theory, which is based on social psychological research, the acceptance of the message depends on familiarity, likeability and similarity. Familiarity is the audience's knowledge of the source through exposure; likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. This theory explains the message acceptance in two ways: Identification and Conditioning. Identification is when the receiver or the target audience of the communication begins to identify with the source's attractiveness, and hence tends to accept his opinions, beliefs, habits, attitudes etc.

On identification, a quote from Bijou Kurien, COO, Titan, "We decided on Aamir because we wanted someone who is a bit iconic, who is style-conscious himself, and somebody who cuts across both sex and age group, between urban and rural India. A celebrity who is mouldable and who is not overexposed". Conditioning is when the attractiveness of the source is supposed to pass on to the brand after regular association of the source with the brand. Grant McCracken6 has criticized the previous two theories and proposed the Meaning Transfer Theory. The theory explains that a celebrity encodes a unique set of meanings which if well used can be transferred to the endorsed product. Such a transfer takes place in three stages – encoding meanings, meaning transfer.

I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of meanings in their image. For example Preity Zinta can be seen as a lively, charming, bubbly, witty and enthusiastic.

II. Meaning Transfer: This stage transfers those meanings to the product. When skillfully portrayed, celebrities can communicate this image more powerfully than lay endorsers.

III. Meaning Capture: This assumes that consumers purchase products not merely for their functional value but also for their cultural and symbolic value. The theory says that consumers buy the endorsed product with the intention of capturing some of the desirable meanings with which celebrities have passed on to the product. This is more eminent in lifestyle products like clothes, perfumes, cell phones etc.

Celebrity endorsement can be key to marketing success

There's no denying the fact that marketing chiropractic can be challenging. The public has long been exposed to negative reports about it from the medical and drug industries, as well as from well-meaning but uninformed consumer advocates. They've heard chiropractic jokes on sit-coms and warnings on the nightly news. To market chiropractic in general — and your practice in particular — you must first overcome lingering fears, ignorance and skepticism that keep people from coming to your office. One of the most powerful ways to surmount these obstacles is to use a celebrity endorsement. When you tell people that chiropractic can help them, they may or may not believe you. After all, you have a vested interest in selling your services. But when celebrities say that chiropractic has helped them, and it could help others, people tend to listen — and believe. After all, most people assume "he wouldn't say it if it weren't true." As Marketing expert Patrick Bishop — co-author of "Money Tree Marketing: Innovative Secrets That Will Double Your Small-Business Profits in 90 Days or Less" — noted:

"When you get a celebrity to endorse your company or sign a licensing agreement, you benefit from customers' awareness of the property, [which] could include the perception of quality, educational value or a certain image."

"Studies show that using celebrities can increase consumers' awareness of thead, capture [their] attention and make ads more memorable"

If you're not convinced yet of the effectiveness of celebrity endorsements, here's what Jonathan Gaines, president and CEO of top marketing firm DMS Strategies has to say:

"High-profile endorsements from athletes and celebrities will set you apart from your competitors, and you can become a contender in the playing field a celebrity spokesperson can work for companies of all sizes."

Fit with the Advertising Idea

Marketers now seek to adopt 360 degree brand stewardship in which the brand sees no limits on the number of contact points possible with a target consumer. Advertising ideas, thus, revolve around this approach, and the celebrity endorsement decisions are made through these strategic motives. One of the most successful celebrity endorsement campaigns which reflect the fit between the brand and the 360 degree advertising fit is Fardeen Khan and Provogue. Provogue's positioning in the apparel market is of a young, active, partygoing, attention-grabbing brand and so is Fardeen Khan. The conjunction between the two has been immensely impact and brand managers have utilized this endorsement through 360 degree reinforcement. Provogue Lounge and extensive phased insertions in print in selective publications reaching out to their target audience has made it as one of the highest recalled celebrity endorsement. Similarly, Richard Gere's recent endorsement for VISA in India has gained acclaim due to its innovativeness and consumer connects. Brand marketers say thatresearch reveals that Richard Gere was the most popular face across the Asia Pacific region, and would also fit into the persona of the brand meeting their communication objective to enhance VISA's brand leadership and consumer preference, and the motive to continue the "All it Takes" empowerment platform featuring international celebrities.

Celebrity-Target Audience Match

Smriti Irani endorsing the WHO recommended ORS Campaign in India. Indian mothers can associate with Smriti Irani through the facets she projects on screen or in regular life which helps develop a connect with the target audience since mothers medicate their children with ORS. The in serial placement of the campaign in "Kyunki Saas Bhi Kabhi Bahu Thi" has won it an award from PR Week. Similarly, Irfan Pathan endorsing Hero Cycles has gained the brand immense recall and embarked through the positive association between the consumer and the brand.

Celebrity Values

Celebrity branding is all about the transfer of the value from the person to the product he endorses or stands for. There are two concerns here. The first is how long this could last. Can the person maintain his popularity (i.e., his performance or status ranking)? The lifecycle of celebrity popularity varies a lot. The second concern is his private life - personal integrity. If he is implicated in any kind of scandal, that would ruin the brand. "Who would want to use Michael Jackson to brand their product?"

Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness, Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Rai appearing in the Donate Eyes campaign are few examples, whichreflect the transfer of celebrity values to the brand, creating an impact that generates recall.

Celebrity-Product Match

Cyrus Broacha is the brand ambassador for MTV since both the celebrity and the brand are considered as friendly, young, mood-boosting, humorous and outspoken. MTV's brand personality overlaps Cyrus Broacha's image as a brand. Some more examples of compatible celebrity product match in which celebrity brand attributes get transferred to the brand and increases the brand equity is of Mallaika Arora & Freshizza from Pizza Hut, Govinda & Navratan Tel, Sanjay Dutt & Elf Oil, Sunny Deol & Lux Undergarments, Aishwarya Rai & Nakshatra, etc.

Celebrity Controversy Risk

The perfect example here is of Salman Khan and the controversy in which he crushed a man to death with his Pajero when he was driving under the influence of alcohol. Also, any act on the part of the endorser that gives him a negative image among the audience and goes on to affect the brands endorsed. The brand, in most instances, takes a bashing.

Celebrity Regional Appeal Factors

R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India are few examples of how celebrities are chosen to reach out to target audiences for brands in regional markets.

Celebrity Physical Attractiveness

Bipasha Basu' physical attractiveness and her connect with the brand makes Levis Strauss's campaign through celebrity in India, John Abraham endorsing Wrangler and Timex Sunglasses are some examples which portray the celebrities' physical attractiveness that helps create an impact.

Celebrity Credibility

The most important aspect and reason for celebrity endorsement is credibility. Most experts believed that the most important dimensions of credibility are trustworthiness and prowess or expertise with regard to the recommended product or service. One of the most obvious reasons of Amitabh Bachchan endorsing plethora of brands is the credibility of the celebrity and his recognition across consumers.

To site one of the most successful campaigns in which the celebrity's credibility has had an indelible impact on the brand and has saved the brand is of Cadbury's. After the worm controversy, Amitabh Bachchan's credibility infused into the brand through the campaign, helping it to get back on track. The campaign has won an award for the same.

Multiple Endorsements

The case of multiple endorsements, both in terms of a single brand hiring multiple celebrities and that of a single celebrity endorsing multiple brands, is often debated. At times, consumers do get confused about the brand endorsed when a single celebrity endorses numerous brands. The recall then gets reduced and reduces the popularity of the brand. Not many people can remember all the brands that a celebrity endorses and the chances of losing brand recall increases if the celebrity endorses multiple brands. For example, in case of Sachin Tendulkar people recall Pepsi, TVS Victor and MRF, but might not remember brands like Britannia and Fiat. Similarly, for Amitabh Bachchan, consumers remember ICICI, Pepsi, Parker Pens, Pulse Polio and BPL. They might get confused in the endorsement of Nerolac or Asian Paints. Thus, for multiple endorsements where the same celebrity endorses several brands, it boils down to the strength of the brand and the advertising content.

Whether Celebrity is a Brand User

One of the strongest platforms to discuss this is through NGOs. Various celebrities endorse NGOs and social causes since they believe in the social message that they need to convey to the audience. One of the most successful campaigns has been executed by PETA in which celebrities like Shilpa Shetty, Amisha Patel, Yana Gupta, Sheetal Malhar, and Mahima Choudhary Claimed to believe in PETA's philosophy, and thereby endorse the brand. On the other hand, while some would understand that Amitabh Bachchan would have never used Navratan Tel, the target audience that the brands wants to reach out to will be ready to believe that he used the oil and his endorsement thereby creates an impact

How Celebrity Endorsements Influence the Consumer

The basis for the effectiveness of celebrity-endorsed advertising can be linked to Kelman's processes of social influence as discussed by Friedman and Friedman. According to Kelman, there are three processes of social influence, which result in an individual adopting the attitude advocated by the communicator:

Compliance, Identification & InternalizationThese latter two processes are particularly applicable to celebrity-endorsed advertising.

Compliance infers that another individual or group of individuals influences an individual cause he or she hopes to achieve a favourable reaction from this other group. This process of social influence is not directly applicable to celebrity advertising because there is little, if any, interaction between the celebrity and the consumer.

Identification applies to the situation wherein the individuals emulate the attitudes or behaviour of another person or group, simply because they aspire to be like that person or group. This process is the basis for referent power. It was found that celebrities are more commonly liked than a typical consumer spokesperson.

Internalization as a process of social influence is said to occur when individuals adopt the attitude or behaviour of another person because that behaviour is viewed as honest and sincere and is congruent with their value system. The effectiveness of celebrity advertising traditionally has not been strongly linked to this process, as a celebrity's reason for promoting a product can just as easily be attributed by the consumer to an external motive (i.e., payment of fee) as to an internal motive (i.e., the celebrity's true belief in the value and benefit of the product).

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

NEED OF THE STUDY

Now a day‟s lots of advertisements are endorsed by the celebrities. Even celebrities are endorsing multibrands. It has created a great confusion in the mind of the customers regarding the purchase of the product. So there is a need to study the impact of celebrities‟ endorsers and non celebrity endorsers on the purchasing behavior of customers. This study will also help to know whether celebrities‟ endorsers are able to influence the buying behavior of the customers or not.

The study is based on primary data and secondary data. Five point Likert scale has been used to know the customer‟s perception towards celebrity endorsed advertisements. Sample size has taken 200 consumers. Secondary data has been collected from the website.

1. Objectives

This study was conducted on "Effectiveness of Celebrity Endorsement On Consumer Behaviour"

On the following objectives survey was undertaken one: 1. To know what types of criteria consumer remember at the time of purchase2. To know effectiveness of celebrity endorsement on consumer behaviour.

RESEARCH DESIGN

A research design is an arrangement of conditions for collection and analysis of Data in a manner that aims to combine relevance to the research purpose with Economy in procedure. It constitutes the blueprint for collection, measurement and analysis of data. My research design will be exploratory research design.

Area: The study was based on covered the maximum area the Gandhinagar city .

Taken the survey only on Youth.

Types of Research :- Descriptive Type

Data Sources:

In dealing with any real life problem it is often found that data at hand are inadequate,and hence, it becomes necessary to collect data that are appropriate. The researcher cancollect data either through primary source or secondary source.

Primary Data: Questionnaire

Secondary data: Visited Website.

Sampling Size:

It is the total number of respondents targeted for collecting the data for the research.Sample size of 200 persons will be taken for this research.

Sampling Technique:

Random sampling technique will be used in this research project.

Data analyses &

Interpretation

Gender

SexMale Female172 28

Male 86%

Female14%

Sex

Interpretation:

The above pier chart tells that there are 86% male and 14 % female. Out of 200 Respondent,

172 are Male and 28 are women.

Age

Age20-25 year 25-30 year 30-35 year

141 41 18

20-2571%

25-3021%

30-359%

Age

Interpretation:

The above pier chart tells that age of 70% people are between 20-25 year ,21% people falls in

25-30 year, and remaining 9 % people are in 30-35 year. Out of 200 respondent 141

respondent comes in 20-25 year, 41 respondent are in 25-30 year and 18 respondent comes in

30-35 year ..

Education

EducationHigher Secondary Pre University Graduation Post Graduation

16 9 45 130

Higher Secondary8% Pre-

Uni-versity

5%

Graduation23%

Post- Graduation65%

Education

Interpretation:

The above pier chart tells that 65 % people (130) has post Graduation. 23% people(45) has

done their Graduation. 8% and 4% have done their education in Higher secondary and Pre

University Respectively.

Occupation

Occupationstudent Business Person Working Professional

137 9 54

student69%

Business Person

5%

Working Professional27%

Occupation

InterpretationIn the Above Pie Chart. 68% Respondent (137) are Student, 27% people are Working professional and remaining 5% (9 respondent) are working as a Business Person.

Q-1 Celebrity in an advertisement encourages to buy the product.

Stongly Disagree Disagree Neutral Agree Strongly agree14 23 32 77 54

Stongly Disagree7%

Disagree12%

Neutral16%

Agree39%

Strongly agree27%

Interpretation

Above pie Chart tells that 39% people are strongly believes that celebrity encourage them to buy product, 27% people strongly agree with that they are influence by Celebrity endorsement, 16% believe that they will purchase product or not , 11 % people disagree with this, 7 % are Strongly Disagree with this Statement.

Q-2 Celebrities make difference to the image of the brand.

Strongly Disagree Disagree Neutral Agree Strongly agree11 37 24 79 49

Stongly Disagree6%

Disagree19%

Neutral12%

Agree40%

Strongly agree25%

Interpretation

Above pie Chart tells that 40% people are strongly believes that celebrity makes different image to the brand, 25% people strongly agree with this statement, 18% people disagree with this statement, 7 % are Strongly Disagree with this.

Q-3 Celebrities use the product they endorse


Stongly Disagree43%

Disagree33%

Neutral11%

Agree8%

Strongly agree6%

Interpretation

Above pie Chart tells that 43% people are strongly disagree in believe that celebrity use the product which they endorse, 32% people disagree. 11 % says that they may use or not. 8% and 6 % are agree and Strongly agree respectively believe that they are using product which they endorse.

Q-4 People purchase celebrity endorsed brands to improve social status


Stongly Disagree17%

Disagree9%

Neutral17%

Agree31%

Strongly agree27%

Interpretation

In the above chart, 31 % people agree with the statement that people are buying product to improve social status, 27 % are strongly agree with this and 16 % are strongly disagree in believe that people are not buy product to improve social status, and 9 % are disagree with same.

Q-5 Celebrity has the power to change my perceptions


Stongly Disagree19%

Disagree34%Neutral

14%

Agree20%

Strongly

agree14%

Interpretation

In the above chart, 33 % are disagree with the statement that celebrity has the power to change my perception, 20% (agree) believe that they has power to change my perception. 14 % is neutral and remaining 14% are strongly agree with statement and 19% respondent are strongly disagree.

Q-6 Celebrity conveys all the true features of a product


Stongly Disagree18%

Disagree11%

Neutral13%Agree

44%

Strongly agree14%

Interpretation:-

In the above chart, 44% people are agree with the statement Celebrity convey all the true feature of a product, 18% respondent (Strongly disagree) believe that celebrity does not convey all the true feature of the product.

Q-7 Celebrity holds the viewer’s attention


Stongly Disagree

17%

Disagree13%

Neutral10%

Agree42%

Strongly agree20%

Interpretation

Above pie chart tells that 42% people are agree with this. And 20% are Strongly agree with the statement, 16% respondent (Str.disagree) believe that celebrity does not holds viewers attention.

Q-8 Purchase product because it is endorsed by my favourite celebrity.


Stongly Disagree21%

Disagree33%Neutral

12%

Agree22%

Strongly

agree14%

Interpretation

In the above chart, 32 % respondent (disagree) believe that they are not purchasing product by inspiring their favourite celebrity. 21% respondent are strongly disagree. 22% people (agree) are buying product when their favourite celebrity comes in the advertisement. 14% respondent are strongly agree to buy the product.

Q-9 Scandals attached with celebrities destroy the brand’s image


Stongly Disagree4% Disagree

6%Neutral

8%

Agree41%

Strongly agree43%

Interpretation

In the Above chart, 43% respondent (Strongly Agree) believe that celebrity destroy the brand image if he comes into any scandals, 41% (Agree) with the same. 5% (disagree) believe that there is no any effect if celebrity goes into any scandals. 3% (strongly disagree) for the same.

Q-10 Celebrities help me more to remember a brand/Product


Stongly Disagree8%

Disagree13%

Neutral4%

Agree41%

Strongly agree36%

Interpretation

In the above Pie chart, 41 % respondent (Agree) in remember a brand or product. 36% respondent(Strongly Agree) for the same. 3% people don’t know about the product remember. 13% people are (disagree) to remember the brand or product. 7% people are strongly disagree for the same statement.

Q-11 Does your Favourite celebrity give a positive image to the endorsed brand?


Stong

ly Dis-

agree16%

Disagree13%

Neutral18%Agree

31%

Strongly agree23%

Interpretation

In the above chart, 31% respondent (Agree) says that their favourite celebrity gives positive image to the brand. 23 % respondent (Strongly Disagree) with the same statement. 18% people don’t know that their celebrity gives positive image to the endorsed brand.13% respondent (Disagree) believe that their favourite celebrity doesn’t gives positive image to the brand.15 % people are Strongly disagree for the same statement.

Q-12 I believe celebrity endorsement can build trust in the brand


Stongly Disagree11%

Disagree14%

Neutral13%

Agree41%

Strongly agree22%

Interpretation

In the above chart 41% people (Agree) says that celebrity gives trust in the brand. And 22% (Strongly agree) with the same point. 13% people don’t know that celebrity puts trust in the brand. 14% people (disagree) says that celebrity doesn’t built trust in the brand. 10% people (Strongly disagree) also says that celebrity doesn’t built trust in the brand.

What extent do the following variable influence your purchase intention towards a celebrity endorsed brand?

Attractiveness of the celebrity

Null Low Average High Very High4 11 22 88 75

Null2%

Low6%Average

11%

High44%

Very High38%

Interpretation

In the above pie chart, 44% respondent (High) is influence by attractiveness of the celebrity. 38 % respondent (Very High) influence by attractiveness of the celebrity. 11% believes that they are Average influence by attractiveness. 2% people says that there is no need of attractiveness.

Trustworthiness of the celebrity.


Null3%

Low6%

Average10%

High46%

Very High36%

Interpretation

In the above pie chart, 46% respondent (High) is influence by Trustworthiness of the celebrity. 36 % respondent (Very High) influence by Trustworthiness of the celebrity. 9% believes that they are Average influence by Trustworthiness. 3% people says that there is no

need of Trustworthiness of the celebrity.

Expertise of the Celebrity.


Null8%

Low13%

Average21%

High37%

Very High22%

Interpretation

In the above pie chart, 37% respondent (High) is influence by Expertise of the celebrity. 22% respondent (Very High) influence by Expertise of the celebrity. 21% believes that they are Average influence by Expertise of the Celebrity. 7% people says that there is no need of Expertise of the celebrity.

FINDINGS

1. Majority of the respondent are male (86%)2. 70% respondent falls in 20-25 years age3. 65% respondent has a degree of post graduation.4. 68% respondent is student.

1) 77.98 % believes that celebrity in advertisement encourage to buy the product2) 72.73 % believe that celebrity makes different image to the brand.3) 84.83 % believes that celebrity doesn’t use the product which they endorse.4) 69.29% believes that people purchase the product to improve social status.5) 61.05% believe that celebrity has no power to change my perception.6) 67.24% believes that celebrity convey all the true feature of the product.7) 67.96% believes that celebrity holds the viewers attention.8) 60.45% believes that they purchase the product because it endorse by his favourite Celebrity.9) 90.22 % believes that scandals attached with celebrity destroy the brand’s image.10) 78.76 % believes that celebrity helps them to remember brand or product.11) 65.24% believes that their favourite celebrity gives positive image to the endorsed brand12) 71.84% believes that celebrity builds trust in the brand13) 44% people are high influence by Attractiveness of the Celebrity.14) 45% people are high influence by Trustworthiness of the Celebrity.15) 37% people are high influence by Expertise of the Celebrity.

Limitation of the Studyo Some people are not ready to fill-up the data.o Biased informationo Sample size 200 questionnaire. So it is very less according to name of

topic.

CONCLUSION

I have filled up 200 questionnaire in the gandhinagar city.

Some of the people don’t know about the Celebrity endorsement.

In the research report, Most respondent is Student, between 20-25 years, and male.

It has been observed that peoples majority in their favourite celebrity is Ranbeer kapoor, Salman khan, shahruk khan, Ketrina kaif and karina kapoor and Bipasa basu.

In today’s era most of the people are influence by the celebrity endorsement and they buy the product to improve social status.

Result of the study.

1) 77.98 % believes that celebrity in advertisement encourage to buy the product2) 72.73 % believe that celebrity makes different image to the brand.3) 84.83 % believes that celebrity doesn’t use the product which they endorse.4) 69.29% believes that people purchase the product to improve social status.5) 61.05% believe that celebrity has no power to change my perception.6) 67.24% believes that celebrity convey all the true feature of the product.7) 67.96% believes that celebrity holds the viewers attention.8) 60.45% believes that they purchase the product because it endorse by his favourite Celebrity.9) 90.22 % believes that scandals attached with celebrity destroy the brand’s image.10) 78.76 % believes that celebrity helps them to remember brand or product.11) 65.24% believes that their favourite celebrity gives positive image to the endorsed brand12) 71.84% believes that celebrity builds trust in the brand13) 44% people are high influence by Attractiveness of the Celebrity.14) 45% people are high influence by Trustworthiness of the Celebrity.15) 37% people are high influence by Expertise of the Celebrity.

SUGGESTION & RECOMMENDATIONS

After the study on this topic company should hire a celebrity who is not involved in the any Scandal.

Most of the people are influence by the attractiveness of the celebrity and trustworthiness rather than expertise of the celebrity because there are 40% is in attractiveness of the celebrity and 45% is in trustworthiness of the celebrity. When 37 % are influence by expertise of the celebrity. There is no other suggestion on this

final project on effectiveness of celebrity endorsement on consumer behaviour

Documents