Professional Documents
Culture Documents
Project Report
On
“The Use and Effectiveness of Celebrities in Indian
Advertising Industry”
SUBMITTED TO:
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DECLARATION
I hereby declare that the Research Project entitled "The Use And Effectiveness of
Celebrities In Indian Advertising Industry" submitted for the Degree of Master of
Business Administration is my original work and the project has not formed for the
award of any degree, diploma, fellowship or similar other titles. It h as not been
submitted to any other University or Institution for the award of any degree or
diploma.
Place: Varanasi
MBA FINAL
Date:
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ACKNOWLEDGEMENT
Once again, I thank all the persons who supported in number of ways whether they
are directly or indirectly concerned to my project report. My gratitud e and sincere
regards goes to my parents and friends for their encouragement, suggestions and
guidance from time to time.
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TABLE OF CONTENTS
ⅰ Authentication Certificate Ⅱ
ⅱ Declarations Ⅲ
ⅲ Acknowledgement Ⅳ
ⅴ List of Tables Ⅷ
Content
1 Introduction 1-19
6 Findings 69-70
7 Conclusion 71-72
8 Bibliography 73-74
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LIST OF FIGURES
Number of Celebrity
Figure 3.2 Engagement during the 27
period 2007-17
Elaboration Likelihood
Figure 3.5 41
Model
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Figure 3.6 Hierarchy of Effects 48
Celebrity Engagement
Figure 5.2 64
Evaluation
Advertisement Medium
Figure 5.4 66
Analysis
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LIST OF TABLES
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Introduction
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INTRODUCTION
Firms have understood that effective and efficient communication with the
target consumers is their key to success Firms across the globe use various
means to communicate with the consumers. These ways or means which are used
to communicate with t he target consumers are called Marketing
CommunicationsThrough marketing communications firms try to inform,
persuade and remind consumers about the brands or products they are selling,
either directl y or indirectl y. Mar keting communications employs various
methods for communication called a s marketing communications mix or simpl y
communication mix . Communication mix are consists of:
1. Advertising
2. Sales Promotion
3. Public Relations and Publicit y
4. Direct marketing
5. Personal Selling
6. Events and Experiences
7. Word-of-Mouth Marketing
8. Interactive Marketing
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Figure 1.1: - Macro Model of Marketing Communication Process
Apart from macro communication model, there are also micro models for
communication process. These models assume that the consumers pass through
three stages of „Learn‟ „Feel‟ and „Do‟ or in other words Cognitive, Affective
and Behavioral stages. For example, according to Hierarchy -of-Effects model,
consumers first become aware and gains knowledge of a product (cognitive
stage), then they develops a liking, preference and conviction for that product in
that order (affective stage) and finall y they purc hase the product (behavioral
stage).
Among all the marketing communication variables, advertising is the one which
is used extensively throughout the world.A dvertising as placement of
announcements and persuasive messages in time or space purchased in any of
the mass media by business firms, non -profit organizations, government
agencies, and individuals who seek to inform and/ or persuade members of a
particular target market or audience about their products, services,
organizations, or ideas (AMA, 2016). Firms use advertising to create awareness
for its product and to communicate the features of their offerings to the target
consumers. This is called as informative advertising. Through persuasive
advertising, firms aim to create preference, conviction and liking for their
product and to initiate purchase. Reminder advertising is used by the firms in
order to stimulate repeated purchase of their products and services (Kotler et
al., 2012).
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Celebrity endorsement is the way to maximize advertising effectiveness. Popular celebrities like
cricketers and film stars are considered as god by their lovers, but it is essential for marketers to
establish the link between a product and celebrity by considering the type of product.
Advertising is a subset of promotion mix which is one of the 4P‘s in the marketing mix i.e.
product, price, place and promotion. As a promotional strategy, advertising serves as a major tool
in creating product awareness in the mind of a potential consumer to take eventual purchase
decision. Although the audience is getting smarter and smarter and the modern day consumer is
getting resistant to the exaggerated claims made in a majority of advertisements, advertisers are
focused on celebrities and their popularity for advertising their products. Using celebrities for
advertising involves signing-up various celebrities for advertising of their respective products,
which consist of all sorts of advertising including, television advertisements, and internet or even
print advertisements. How impactful these advertisements are, that is something that each
consumer can determine on their own. So, those were the most effective and popular kinds of
advertising used today. Each of the advertisement types mentioned has its own impact. Therefore
it is the job of people who associate with advertisement department to figure out which type of
and which medium is the best and the most feasible for their brand. A company needs to reach
potential benefits of endorsers either celebrity or common man to ensure that they are not in
conflict with an organisation‘s value system or likely to generate negative publicity. Celebrities
should add worth to the brand‘s taxonomy. In Fast Moving Consumer Goods (FMCG), we have
witnessed of both endorsements in the advertisements in any media. Not much work has been
done in the Indian perspective for comparative study of both celebrity and non-celebrity
endorsed advertisements on the various product categories. Indian consumer attitudes are
changing at a rapid pace and they are becoming more aware of the products that they use.In
recent times we have seen FMCG products and brands dominate online advertising landscape.
The sector is the biggest spender in terms of digital display ads, social media marketing, viral
campaigns and mobile campaigns. The average FMCG brands advertising spend on traditional
channels of media advertising such as TV,print and radio has dropped. This is not to say that
traditional forms of advertising do not work for FMCG goods, but the power of online
advertising is now being recognized by these brands. Online advertising allows marketers to
hone in on their desired target market more than ever before, allowing them to create tailored
marketing campaigns that are not only cost effective but relay their desired message better than
ever before. In a sector such as FMCG, where goods are sold quickly, which require low
involvement and are at a relatively low cost, using digital media to reach customers is
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imperative. It is clear that this trend of FMCG brands invest heavily in digital media to continue
as it provides an unrivalled platform for cost-effective marketing and business solutions.Until a
few years ago, most companies looked at online as yet another platform to air their TV
commercials. This is not the case any longer. FMCG companies are looking at digital media as a
separate platform to engage with their target audience. They seek feedback on their TV
campaigns, invite suggestions to name their upcoming brands and even take up the social issues.
Star power in India can be gauged by the successful endorsements done by Sharukh Khan (Pepsi,
Hyundai Santro, Sunfeast, and Navratan etc.), Amitabh Bachchan, Sachin Tendulkar, Rahul
Dravid, HrithikRoshan and the others. The inevitable question is, if and how the lively interest of
the public in the rich and famous can be efficiently and effectively used by companies to
promote their brands and consequently to increase their sales revenues.
This fact can be brought out by using certain examples i.e. Mr. Amitabh Bachchan promoting
Cadbury chocolates after the fiasco of infestation when the image of Cadbury India went very
low in the eyes of people. Soon the company found a perfect fit and a reliable celebrity to
transmit the correct message and help regenerating the lost trust. The fit between the product and
celebrity is evident as Mr. Bachchan and Cadbury chocolates both have tested troubled times and
still they stand tall and the love and trust they both share with the people all across India. This is
a live example of how a celebrity brought certain attributes to a product like chocolate.
Actor Sharukh khan has also endorsed diversified products. His endorsement basket is ranging
from Hyundai Santro to Sunfeast biscuits on one hand and from Compaq computers to Videocon
electronics on the other.
According to Advertising research companies both the actors are doing well and the ad spent on
both by the companies is increasing at a phenomenal rate, so does their basket of endorsements.
These actors bring reliability and trust in the brand and above all, they help in increasing the
sales revenues.Celebrity endorsements are powerful, has become evident from the above two
examples but, why is it so? This power is offered by the following elements, which also creates a
'Top of the Mind Position'.
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* Instant Awareness, knowledge about the brand and easy recall.
* Values and image of the brand is defined, highlighted and refreshed by the celebrity.
* The celebrity adds new edge and dimension to the brand.
* Credibility, trust, association, aspiration and connectivity to brand.
* Belief in efficiency and new appearance that will result in at least trial usage.
Celebrities have been involved in endorsement activities since the late nineteenth century.
The advent of celebrity endorsements in advertising in India began way back in the 1960s
when Hindi film and TV stars as well as sportspersons began encroaching upon a domain
that was, until then, exclusively occupied by models. Till then, for both companies and
celebrities alike, brand endorsements by eminent personalities represented a completely
uncharted territory. One of the first sports endorsements in India was when Farookh
Engineer became the first Indian cricketer to model for BrylCreem. Today, the Indian
cricket team collectively earns around Rs. 100 crore through endorsements. In the 1980s,
there was a sudden spurt of advertising, featuring stars like Tabassum (Prestige Pressure
Cookers), Jalal Agha (Pan Parag), KapilDev (Palmolive Shaving Cream) and Sunil
Gavaskar (Dinesh Suitings).
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Today, the topic of celebrity endorsements has attracted intense debate on whether it really
contributes to the brand building process or whether it is just another shortcut to making the
brand more visible in the minds of the consumers. Although it has been observed that the
presence of a well-known personality helps in solving the problem of over-communication that is
becoming more prominent these days, there can be a few undesirable impacts of this practice on
the brand. The theories like 'Source Credibility Theory, Source Attractiveness Theory and
Meaning Transfer Theory' provide a compelling basis on which the methodology of celebrity
endorsement works and also explains how the process of the celebrity endorsement influences
the minds of the consumers. Firms invest huge amounts as advertising expenditure for hiring the
right celebrity and this school of thought goes quite some way towards justifying such actions.
However, there lies uncertainty with respect to the returns that the company might be able to
garner for the brand. Which leads us to ask ourselves the question, do celebrity endorsements
actually work?
First, let‘s take a look at all the possible benefits of these endorsements:
Builds brand equity:
Prior to Michael Jordan, Nike primarily sponsored tennis and track and field athletes. Nike
wanted to expand into new markets. Who better to sign than one the most electrifying young
athletes in sports? But it wasn‘t an easy decision by any means. Back then in 1984, a contract
worth $150,000 a year was completely unheard of and something most companies would balk at.
But as the newly drafted rookie went on to shatter record after record on his way to stardom, the
Nike-Jordan partnership, over the course of 3 decades, blossomed into its own multi-billion
dollar subsidiary company, Air Jordan. 30 years on, the brand grew at a rate of 14% in 2015 to
command 58% market share in the $4.2 billion U.S. basketball shoe market with sales of $2.4
billion, an unwavering cash cow for Nike and the basketball legend.
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Makes people believe the product contributes to superstar status:
Mobil 1 uses NASCAR superstar Tony Stewart to endorse its brand, which leads consumers to
believe that Motor One oil contributes greatly to the performance of his car—and his success.
Similar is the case with Puma, who used Usain Bolt to great effect in their ―Forever Faster‖
campaign.
Stand out:
Research from Charles Atkin and Martin Block suggests that ―celebrities may help
advertising stand out from the surrounding clutter.‖ People like watching a Madhuri Dixit or a
HrithikRoshan more than local dentists and attorneys.
Now that we have an idea of the pros of celebrity advertisements, the next important step is to
select the right personality to represent the brand:
Brands are important company assets. Advertisers need to select celebrities who represent the
image and promise of their brands. Needless to say, not all celebrities will fit with any brand.
For example, at the height of her career, Britney Spears signed a highly publicized $8 million
deal with Pepsi in 2001. During her contract with the beverage company, the pop star filmed
many commercials that appeared in top slots on television including major sports events such as
the World Cup. Her last commercial with the beverage manufacturer was a group commercial
along with fellow pop stars Pink, Beyoncé and Enrique Iglesias. Spears‘ tenure with Pepsi was
followed by a slew of other pop stars that worked with the company, including Christina
Aguilera, Beyoncé and Nicki Minaj.
Yet even if a celebrity is a good fit for the brand, using one for endorsements has its own set of
possible risks:
Images change:
Celebrities are also human; hence they do make mistakes. And when they do, they can affect the
brands they endorse. In 2009, Tiger Woods‘ public image crumbled after his infidelity with a
number of women, including pornography actresses, hit the news. As a result General
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Motors, Gillette, Accenture, and Gatorade were forced to drop Tiger to avoid negative
perception. Nike stuck around and lost customers. And the golf industry as a whole saw a major
revenue slow-down with no Tiger on the prowl.
The same happened with Lance Armstrong and Maria Sharapova after they got embroiled
in doping controversy. In case of the former, the ace cyclist lost eight sponsors in a single day
after his misdemeanors came to light, causing him to lose out on $150 million in future earnings.
In case of the latter, the incident was widely accepted as a ‗mistake‘ for which she was
only partly responsible. That notwithstanding, the world‘s highest paid female athlete lost 3
major brands in one day after her first bad drug test. Although, it has to be said that the damage
was limited as Nike and Head eventually stuck by her after the verdict, while Tag Heuer and
Avon severed their ties with the tennis superstar.
We have to remember that, it can go the other way as well. Celebrities also end up facing rough
weather if the brand they are associated with gets a bad image. Case in point being, Amitabh
Bachhan, PreityZinta and Madhuri Dixit for Nestle‘s top noodles brand Maggi.
Even M.S. Dhoni severed ties with realty firm Amrapali as a result of Twitter outrage over the
Indian Captain‘s association with the company that had left its projects incomplete in Noida.
So, the relationship which brands establish with celebrities can be a very powerful one, yet as
seen above, a very brittle one. This is because sometimes it becomes difficult to separate one
from the other.
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Celebrities become overexposed:
At the height of Tiger Woods‘ popularity, he endorsed over ten companies at once.
When a celebrity works with so many companies, the celebrity‘s credibility may suffer. People
may feel that the celebrity will endorse anything to make a buck.
In India, the best example by far is ViratKohli. Even at this young age, such is the
popularity of the Indian captain that he is currently endorsing 15 top brands. His personality,
passion and vocal attitude makes him a favorite with the youth of the country and hence, a
darling with the advertisers as well.
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In some cases, it does come to naught. As per Livemint, Pan Bahar paid Pierce Brosnan $2
million for 2 years for the 1 minute advert. The ad sent social media into a tizzy and fetched Pan
Bahar the desired attention and ‗visibility‘ it desired. But the question to be asked here is, would
the public attention eventually translate into greater sales? For all we know, Pan Bahar‘s core
customer is the average auto driver or roadside tea-seller in rurban India. For such a person, he
could very well wonder who the new brand ambassador for his favorite pan masala is and might
even feel put off. Thus, there could be a gross disconnect with the target audience as far as the
brand is concerned.
Given such situations, a lot of marketers might feel that, even though they can have a big impact,
it is neither worth the money nor the risk.
The usage of celebrities by the Indian advertising agencies has experienced a phenomenal
increase in the last five years. Effective communication between the marketer and the consumers
is the need of the hour and celebrity endorsement is a strategy that is perceived as making full
use of this opportunity. Most of the countries have adopted this strategy as an effective
marketing tool and even India is carving out space for itself in this arena.
Today, the top movie stars and sportspersons in the country earn around 5 crores per day for each
brand they endorse. Recently, E-commerce player Snapdeal paid Aamir Khan a whopping Rs 30
crore, making him the most expensive celebrity brand endorser in India.
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Benefits of celebrity-based campaigns
Celebrit y advertisements saw further rise from 90‟s onwards due to the
increasing advertising clutter. The number o f brands advertised on TV increased
from around 3,000 to almost 11,500 up till 2004 and the period saw about 3000
% increase in number of TV commercials (Gahlaut, 2004). Khan and Khan
(2002) conducted a content anal ysis of the advertisements aired on telev ision in
India. In their sample of 250 advertisement 50 % of the advertisements had
celebrit y endorsers. Maximum numbers of celebrit y endorsers were used for
personal appearance products, home appliances, medicine and toiletries. Film
stars were used more frequentl y used than other t ype of celebrities.
Success Stories
There are many examples where the firms and the products benefited from
celebrit y endorsers. Past data shows that the celebrit y endorser can have great
impact on the sales and branding of the product. A great example is that of
Basketball legend Michael Jo rdan endorsing a shoe line for Nike in 1984
initiall y known as the „Jordan brand‟. It grew up to become a full -fledged
subsidiary of Nike because of its popularit y and increasing market share. In
2009 the „Jordan Brand‟ grossed over $ 1 billion (Folger, 20 11). It represents
almost five % of Nikes overall revenue. According to the statistics provided by
Sports OneSource the Jordan Brand holds a share of 10.8% share of the shoe
market in U.S (Folger, 2011). It is termed as one of the most successful athlete
endorsement campaign in history. Similarl y when Tiger Woods was signed for
promoting Nike Golf balls in 1996, the company witnessed $50 million revenue
growth. Justin Bieber endorsing One Less Lonel y Girl is a recent example of a
successful campaign. The na il polish collection line from Nicole sold out within
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weeks after the endorsement (Folger, 2011). Gabor, Thornton and Winner (1987)
reports that although pop king Michael Jackson was not successful for Pepsi
Co., but it managed to achieve 8% increase in sa les within the first year of its
contract with the sta r (as cited by Erdogan, 1999).
Shahrukh Khan for Hyundai Santro, Pepsi and Clinic All Clear shampoo
Aamir Khan for Coca Cola and Titan watches.
Hrithik Roshan for S. Kumars
Aishwarya Rai for Nakshatra
Amitabh Bachchan for Parker pen
M S Dhoni for Lays and Videocon
Rahul Dravid for Castrol engine oil
Sachin Tendulkar for Boost, MRF Tyres and Pepsi
Shahrukh Khan‘s endorsement for Hyundai Santro is cited as one of the most
successful endorsement campaigns in India which led to Hyundai Santro
becoming the second largest selling car in India within four year of its launch
(Abhishek & Sahay, 2016). The e ndorsement of Parker Pen by Amitabh
Bachchan helped the product in positioning itself as a luxury and premium and
its sales went up by 30 % (Raval, 2010). Amitabh Bachchan also helped in
gaining the confidence of the consumers back for Cadbury (chocolate b ars) and
reviving its sales after the „Worm Controversy‟ (Vaid, 2006). Coca Cola found
that the recall rate of its campaign featuring Hrithik Roshan went from 20% to
40 % among the target audience. S Kumar‟s, a textile company calculated that it
will incur at least 40% less on total promotion expenditure just due to hiring
Hrithik as a brand ambassador (Dasgupta& Bansal, 2001). The ―WahTaj‖
campaign of TajMahal Tea featuring Tabla Maestro UstadZakirHussain is also a
highl y successful celebrit y endorsement t hat ensured brand immortalit y by
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improving the brand recall (Rajan, 2014). However, not all celebrit y
endorsements prove successful. When Shahrukh khan was used to endorse „lux‟
beaut y soap, the campaigns was not received well by the audience, similarl y
Amitabh Bachchan didn‘t prove successful for the Maruti Suzuki‘s „Versa‟ and
Nerolac Paints.
Considering the extensive the use of celebrit y endorsers in India and both the
success and failure stories, two broad areas to be inquired regarding celebrit y
endorsers were identified for research. First area was the use of celebrit y
endorsers in the country, for which a content anal ysis of TV commercials was
carried out. Second area was related to gauging the effectiveness of celebrit y
endorsers as compared to t ypical endorsers, for which an experimental study
was carried out.
Content Analysis
The data regarding celebrit y endorsements clearl y shows that the strategy is
popular in India. However, we have limited understanding of the various a spects
of celebrit y endorsers‟ use as there are very few studies that have explored the
nature of celebrit y advertisements in Indian context. A major work in this regard
was done by Khan and Khan (2002) who conducted a content anal ysis of
advertisements ai red on television. Their study focused on a) the extent of the
usage of celebrities in television commercials b) the comparative usage of male
and female celebrities c) the comparative usage of Film, sports and TV
celebrities d) the way celebrit y endorsers are used (Endorsers, Testimonial,
Actor or Spokesperson)and e) the Copy appeal used in celebrit y commercials.
Another work in this regard was done by Jain et al. (2010). This study focused
on anal ysing the way the celebrities were depicted in Indian telev ision
commercials i.e. explicit, implicit, imperative and co -present mode.
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Though the study by Khan and Khan (2002) covered many aspects regarding the
use celebrit y endorsers in India, but more than a decade has passed and the
marketing environment has ch anged substantiall y. On the other hand the study
by Jain et al., (2010) onl y studied the ways of using the celebrities in Indian
television commercials. Further, no study in India has tried to evaluate the
current practice in terms of the previous research undertaken on the
effectiveness of celebrit y endorsers. Therefore, the objective of the content
anal ysis was to study the major aspects related to the celebrity endorsers‟ usage
in order to better understand the strategies being employed by the advertiser s.
The aspects that were studied included: -
Experimental Study
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Researchers have proposed various factors that determine th e effectiveness of
celebrit y endorsers in influencing attitudes and behavioural intentions, such as
source expertise, source trustworthiness and source attractiveness, celebrit y and
product match -up, cultural meanings of the celebrit y (Ohanian, 1990; Kamin s
1990; McCracken, 1989) etc. A major question which now arises is, if we
consider all the factors that have been identified in previous studies as being
important determinants of celebrit y endorser‟s effectiveness, then whether or
not the celebrit y endors er will prove effective for all product categories? In
other words, can the suggestions made by the past literature ensure the
effectiveness of celebrit y endorsers for any t ype of product?
Some researchers have opined that celebrities are not effective wh en the product
is of high involvement. Others view that celebrit y endorsers are effective for the
products involving high social and psychological risk and not when there is high
performance, physical and financial risk associated with the product. The Thr ee-
Orders Hierarchy Model proposed by Floyd (1999) classifies types of products
into different hierarchies based on the level of perceived product differentiation
associated with that product category and level of consumer involvement. He
states that when the product differentiation is high or in other words when there
are more perceived differences among competing brands then the consumers are
more interested in detailed knowledge about the brands therefore in this
scenario celebrit y endorser are not fruit ful. Conversel y, when there are less
perceived differences among competing brands and consumer involvement is
low then celebrities may have strong impact on attitudes and purchase intention.
As pointed out ear lier, the information clutter during the past decade has grown
significantl y mainl y due to the changed marketing environment in the form of
technological advancement. This increased information clutter has thus led to
increased efforts on the part of the m arketers to break through the clutter, partl y
by using celebrit y endorsers. However, enormous use of celebrit y endorsers has
led to a clutter of celebrit y endorsements itself. In our day to day life, we come
across large number of celebrities endorsing dif ferent brands. Further, most of
the celebrities are endorsing multiple brands (Roy, 2012). It has becom e
difficult for the consumers to recall which celebrit y stands for which brand.
This plethora of celebrit y endorsements can have negative impact on the
effectiveness of celebrit y endorsements. Consumers can become skeptical about
celebrit y endorsers; they can deduce that the celebrit y endorsers are endorsing
the product for the endorsement fee and not out of true affection for the product
(Silvera&Austad, 2004). This thought can negativel y impact the consumer‘s
feelings regarding the celebrit y endorsers and also their attitude towards the
celebrit y advertisement and the brands being endorsed. The current study
approaches the situation in two different ways i.e. content anal ysis and an
experimental study both of which are equall y important. While the content
anal ysis focuses on understanding the complex picture which appears regarding
the use of celebrit y endorsers in the country, the experimental study tries to
gauge the effectiveness of celebrit y endorsers when their use has become
extensive.
Through content analysis, the strategies being employed by the firms regarding
celebrit y endorsements in this scenario of increased advertising clutter can be
identified. It can tell us how the firms are using celebrit y endorsers so that they
can stand out in the clutter and can leave a significant impact on the minds of
consumers. Moreover, the content anal ysis can help in evaluating the practice in
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light of previous research which will in turn help in determining the extent to
which the advertisers have incorporated the suggestions made by past research.
Lastl y, it can benefit the advertisers by figuring out the less exploited ways
regarding celebrit y advertising. There fore, they can make their advertisements
more creative and noticeable by employing these ways. They can know for
which product categories celebrities are used less frequentl y, how celebrities are
generall y depicted in advertisements (i.e. company spokesper son, endorser,
testimonial and actor), what is generally the appeal of the advertisements in
which celebrities are used for example, humorous or non -humorous. Knowledge
about all these aspects can help them in coming up with a celebrit y endorsement
which is more effective and which stands away from the rest of the celebrit y
endorsements.
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become extensive. Further, the studies regarding the effectiveness of celebrit y
endorsers have found that celebrit y endorsers are effective in positivel y
influencing the attitudes towards the advertisement and the brand, but their
power of influencing the purchase intentions has been debatable (Erdogan, 1999;
Till &Busler, 1998). Through the experimental study, we can have more
understanding of this issue. Third, as the exp eriment would involve studying the
effectiveness of celebrit y endorsers for two different types of product
categories, the findings will help advertisers in deciding whether to use or not
to use a celebrit y endorser for their brand. Lastl y, the experiment will also try
to find out that whether the effectiveness of celebrit y endorser is moderated by
consumer demographics such as age and gender. With the help of it, we can
know whether or not the impact of the appropriate celebrit y endorser is same for
the consumers of both genders and of different age groups .
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Objectives
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OBJECTIVES
To study and anal ysis the impact of celebrities on the mind of customers.
celebrities.
To study and anal ysis the purchasing behavior of the target customers.
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Literature Review
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LITERATURE REVIEW
The literature review has been divided into two broader areas/parts (refer t o
relevance tree presented in figure. The first part deals with presenting the data
regarding the usage of celebrit y endorsers in India while the second part
discusses the effectiveness of celebrit y endorsers. It first reviews the factors
that are affected by using a celebrit y endorser, for example, attitude towards
advertisement, company image, brand recall etc. Secondl y, it discusses the
rationale of using celebrit y endorsers as proposed by various theories.
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Figure 3.1: - Relevance Tree
In this section, an attempt has been made to review the literature on the use of
celebrit y endorsers in India. There are various aspects which are important to
study regarding the use o f celebrit y endorsers. Apart from studying the overall
extent of celebrit y use, other aspects that can be studied include. A) Use of
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celebrit y endorsers in relation to various product categories: Here we study the
use of celebrit y endorsers in various type s of product categories like home
appliances, services, automobiles and drinks and confectionaries etc. Studying
this aspect helps us in identifying the product categories for which the
advertisers prefer using celebrit y endorsers. B) Use of male celebriti es in
comparison to female celebrities (Celebrit y Gender): Apart from finding out the
overall use of male and female celebrities in advertisements, we can also
identify the products for which male and female celebrities are preferred
respectivel y. C) Compa rative use of different celebrities, i.e. Film Vs Sports Vs
TV celebrities (Celebrit y Type): When selecting a celebrit y endorser the
advertisers also have to choose among film stars, sports personalities, TV
personalities and the celebrities from music ind ustry. Studying this aspect tells
us about the overall usage of different types of celebrities and also their
respective usage for various product categories. D) The ways of using
celebrities in advertisements (Celebrit y Role): McCracken (1989) states that
celebrit y endorser can be used in an Explicit, Implicit, Imperative or Co -present
mode. In Explicit mode the celebrit y overtl y declares the product endorsement
(―I endorse this product‖), in implicit mode the celebrit y uses physical or verbal
communication (―I use this product‟), in imperative mode the celebrit y suggests
using the product (―You should use this product‖) and in co -present mode the
celebrit y onl y appears with the product (McCracken, 1989; Jain et al., 2010).
According to Schiffman and Kanuk (1995) celebrities can give a testimonial,
endorsement, can be an actor in the advertisement or can be a company
spokesperson. Testimonial: When the celebrit y endorser cites the benefits of the
product being endorsed based on his knowledge or on his experi ence of using
the product it is called as testimonial. Endorsement: When the celebrit y just
lends his name to a product or service it is called as endorsement. Actor: In this
case celebrit y enacts a certain character in the advertisement. Compan y
Spokesperson: Sometimes a celebrit y represents a brand or a company for a long
period of time and his image becomes closel y associated with the brand or the
company then he is called as company spokesperson. Therefore, by studying
celebrit y role we try to find out how advertisers are using celebrities in
advertisements. Further we can also study the celebrit y role in relation to
25
different product categories. E) Copy appeal used in celebrity advertisements:
Here we try to find out the copy appeals which are being use d in celebrit y
advertisements. The copy appeal can be humorous or can be non -humorous such
as fear, excitement, adventure and joy etc. Now let us review the studies that
have tried to anal yse these aspects in Indian context. Khan and Khan (2002)
conducted a content anal ysis of the advertisements aired on television in India.
450 advertisements were recorded and then all repetitions were deleted, this
resulted in a sample of 250 advertisements. In their sample, 50 % of the
advertisements had celebrit y endors ers. The products appearing in all
advertisements were classifies into five product categories. Maximum share of
celebrit y endorsers was reported in case of personal appearance (share: 57%),
medicine & toiletries (share: 53%) and home products, appliances & furnishings
(share: 52%). They did not find significant relationship between the use of
celebrit y endorsers and the product categories. For all product categories, onl y
one celebrit y in an advertisement was preferred. Female celebrities were used
more frequentl y than Chapter 2 Literature Review 21 male celebrities and
significant difference was found between the use of female and male celebrities
across various product categories. Share of female celebrities was higher in case
of personal appearance, medi cine & toiletries and home products, appliances &
furnishings while male celebrities were used more in case of drinks and
confectionaries. They also found that film stars were used most frequentl y
followed by TV and sports celebrities and significant diffe rence was found in
the use of different types of celebrities across the product categories. Film stars
were used more in case of all products categories except for home products
appliances & furnishings where TV celebrities were preferred. Khan and Khan
(2002) also studied celebrit y role and found that the celebrities were mostl y
being used as actors followed by testimonial/endorser and spokesperson
respectivel y. Actor role was popular for all product categories except for
medicine & toiletries where testim onial/endorser role was preferred. However,
no significant difference was found in the way celebrities were being used
across various product categories. Lastly, they studied the comparative use of
humorous and non -humorous appeal in celebrit y advertisemen ts and found that
most of the celebrit y commercials used non humorous appeal. The use of the two
26
copy appeal was not found to be significantl y related to the product categories
as for all product categories, non -humorous appeal was preferred. Another major
study regarding use of celebrit y endorsers was carried by AdEx India (India,
2008, 2011) which is a division of TAM Media Research. According to the study
which was in the context of television advertisements, the use of celebrit y
endorsements is on a ste ady rise and has witnessed a growth six times during
2007 from 2003 refer to figure . They also found that the film celebrities had
maximum share of celebrit y endorsements on T.V during December - January
2010 which was 85 % percent of total celebrit y endor sements followed by Sports
and T.V celebrities. The data clearl y shows that film celebrities are more
popular among advertisers and there use as endorsers is also increasing. The
share of film celebrities rose from 81% during 2007 to 85 % in December -
January 2010. MS Dhoni endorsed for maximum number of brands on TV during
Jan-Dec 2010 followed by Shahrukh khan and Sachin Tendulkar (India, 2011).
Figure 3.2 Number of Celebrity Enga gement during the period 2007 -17
27
television during Dec-Jan 2010 included Lux toilet soaps, Idea, Airtel, Clinic
All Clear and PanansonicViera respectively.
Figure 3.3
Top Categories in Celebrity Endorsements on TV during Jan -Dec 2010
28
More recentl y Prakash, Kumar and Prakash (2012) conducted a content anal ysis
of TV advertisements in Indian context. In their anal ysis of 300 advertisements
they found that 59% of advertisements featured celebrit y endorsers. Celebrit y
endorsers were used mostl y in case of medicine & toiletries (share: 70%)
category followed by drinks & confectionary (share: 62%). However, they found
no significant association betw een the use of celebrit y endorsers and t ype of
products. They also found that male celebrities were used less than their female
counterparts. Male celebrities were preferred more than female celebrities onl y
in case of medicine & toiletries (44%). Female c elebrities dominated in case of
drinks & confectionaries and Personal Appearance products. No statisticall y
significant difference was reported between the gender of celebrit y used and the
product category. Their study also reported highest use of film cel ebrities (52%)
followed by TV (24%) and sports celebrities (16%) respectivel y, a finding
consistent with other studies. Percentage use of sports celebrities was highest in
case of drinks & confectionary (37%) products. TV celebrities‟ share was
highest for medicine & toiletries category (31%). Film celebrities were
preferred highl y in case of personal appearance products (69%). The stud y
reported a significant relationship between the t ype of celebrit y used and the
product category. They also found that hum orous appeal was used less than non
humorous appeal in celebrit y featuring commercials. Humorous appeal featured
in 30% celebrit y advertisements while the rest of the celebrit y advertisements
employed non-humorous appeal. The authors reported that humorous appeal was
preferred for low consumer involvement products belonging to drinks &
confectionaries (78%) and the t ype of appeal used in celebrit y advertisements
was found to be significantl y associated with the product category.
29
determining the ef fectiveness of celebrity endorsers and risk associated with
them.
This section covers the potential advantages of using celebrit y endorsers from
the perspective of the advertisers. Celebrit y endorsers affect many f actors which
in turn directl y or indirectl y affect sales of the product. Table presents the
major factors that are affected by celebrit y endorsers as proposed by various
studies. According to Atkin and Block (1983), the fame of the celebrit y
endorsers help s in attracting attention to the product. Belch and Belch (2003)
termed it as stopping power, which means that the celebrit y endorsers are able
to break through the cluttered media environment and draw attention towards the
advertising message. Kamen, Azha ri and Kragh (1975) reports that use of
celebrit y endorser leads to greater awareness of advertisements and positive
change in company image.
Attention Towards the Advertisement Atkin & Block (1983); Belch & Belch
(2003)
30
Recall of the Advertisement and the Pett y, Cacioppo & Schumann (1983);
Brand Tripp, Jensen & Carlson (1994)
This part reviews the theories that e xplain the effectiveness of celebrit y
endorsers. It will help us in understanding that why celebrit y endorsers are
effective, how they induce positive attitude and 34riticiz towards the
advertisement and the product and what measures can be taken to improve their
effectiveness.
Source Expertise
34
perceived level of expertise. Ohanian (1991) states that the source that is
perceived as being the expert, generates more intentions to buy the brand.
Expert endorser produced positive brand attitude and greater purchase intent
than non-expert endorser in an experiment by Till and Busler (1998 ). An
important finding by Holmer and Kahle (1990) suggest that source expertise is
processed more as central information cue than as peripheral information.
Central and peripheral routes to persuasion have been discussed later in the
chapter under the subheading of consumer involvement.
Source Trustworthiness
Source Attractiveness
(1982), states that more favorable evaluations of the advertisement and the
product are made when attractive models are used. Pett y and Cacioppo (1980)
found that the source attractiveness affects persuasion in both high and low
involvement condition s. Kahle and Homer (1985) studied likeabilit y and
attractiveness of celebrit y endorser and found that the product endorsed by the
attractive celebrit y resulted in greater brand recall, positive attitude towards
product and purchase intention than the unatt ractive celebrity. Till and Busler
(1998) manipulated endorser attractiveness and product type (attractiveness
related and attractiveness unrelated) and found that both brand attitude and
purchase intentions were significantl y higher in attractive endorser condition
irrespective of the product t ype. Although many studies have supported the
positive relation between source attractiveness and attitude towards brand and
advertisement, the results regarding relation between purchase intention and
source attractiveness are ambiguous (Erdogan, 1999). Further, some studies
have also found that attractive endorsers are effective onl y when they are
endorsing a product which are related to attractiveness and not when endorsing
attractiveness unrelated product (Erdogan , 1999). Dwivedi and Johnson (2013)
in the context of telecom services in India found that the celebrit y credibilit y
factors (i.e. attractiveness, trustworthiness and expertise), significantl y impacts
consumers‟ trust and commitment towards the brand. Bhat t, Jayswal and Patel
(2013) in their study on Indian respondents found that celebrit y‟s perceived
level of expertise, trustworthiness and expertise all were positivel y correlated
with attitude towards the advertisement and attitude towards the brand. Multi ple
regression anal ysis revealed that celebrit y trustworthiness and expertise had
significant contribution in explaining brand attitude with trustworthiness
explaining higher variance as compared to expertise. For attitude towards the
36
advertisement onl y ce lebrit y attractiveness explained statisticall y significant
variation. Gupta, Kishore and Verma (2015) studied the impact of celebrit y
endorsements and celebrit y dimensions (i.e. attractiveness, trustworthiness and
expertise) on consumer‘s Ad perception in Indian context. Consumer‘s Ad
perception included five items which were; increases awareness, higher recall,
improves brand image, persuasive and entertaining. They found, all the three
celebrit y source dimensions had significant impact on the dependent va riable
with trustworthiness having highest impact followed by attractiveness and
expertise respectively.
Criticism
Source models have several loop holes and fail to explain the celebrit y
endorsement‟s effectiveness process appropriatel y as they consider ce lebrit y
endorsement process as uni -dimensional. They concentrate onl y on celebrit y
aspect ignoring the product and consumer aspect. In the words of McCracken
(1989) according to source models ―The persuasiveness of the celebrit y has
everything to do with t he celebrit y and nothing to do with the product‖ (p. 311).
They fail to explain why some celebrities prove successful for a particular
product and disaster for other products. They also fail in differentiating between
celebrities; two celebrities cannot be equall y good for the same product even if
they are equall y attractive and credible. This implies that apart from expertise,
trustworthiness and attractiveness, there are other dimensions also that
differentiate celebrities and thereby affect celebrit y end orser‟s effectiveness.
The product which is being endorsed also determines effectiveness of the
celebrit y endorsement. Source models ignore the concept of „fit‟ between
celebrit y and the product. A study by Strenthal, Dholakia and Leavitt (1978)
37riticized source credibilit y model as they found that a high credible source is
not always more effective than a low credible source. If initial opinion of the
audience was positive towards the issue than a less credible source was found to
be more effective. Furth er, the study in Indian context, conducted by Jain, Ro y
and Rana (2013) found that source factors (attractiveness, trustworthiness and
expertise) act as moderators between celebrit y endorsements and consumer
attitudes rather than having a direct impact on consumer attitudes.
37
Transfer Model
Figure3.4:McCrackenTransfer Model
There are three stages of meaning transfer. In stage one; the celebrities earn
cultural meanings through their respective careers for example movie
performances, sports achievements social activism. Stage two is the
endorsement process through which the cultural meanings which celebrit y holds
gets transferred to the product he or she is endorsing thr ough advertisement. In
stage three; the consumers consume the product in order to take on the meanings
38
the product holds. However, McCracken (1989) argues that there is no automatic
transfer of meaning because just consuming the product is not sufficient t o take
possession of its meaning. Consumers must claim the meaning and then work
with them in order to build and project the cultural meaning they want. Various
studies have supported the Meaning Transfer Model proposed by McCracken
(1989). Lang Meyer and Walker (1991) conducted an experiment on student
subjects and found that when the products were not endorsed by the celebrities,
they contained onl y product category images but when endorsed by celebrities,
they took on the images of their celebrity endors er. Recentl y, Miller and Allen
(2012) investigated cognitive process underl ying meaning transfer. Using
evaluative conditioning procedures they found that even beliefs about a well -
known brand (i.e. GAP) altered just through mere co -occurrence with a diffe rent
set of celebrities. They also found that the altered beliefs regarding the brand
were now more aligned with the existing beliefs about the celebrities who co -
occurred with the brand.
1 Genuineness
39
Dominating/Submissive
Masculine/Feminine
4 Sociability
Public/Private
Bold/Shy
C h o i a n d R i f o n ( 20 0 7 ) b a s e d o n M e a n i n g T r a n s f e r M o d e l , i d e n t i fi e d a n d
v a l i d a t e d f i f t e e n c ul t u r a l m e a n i n gs / i m age s t h a t a c e l e b r i t y c a n h o l d . T h e s e
i t e m s w e r e gr o u p e d u n d e r f o u r d i m e n s i o n s t h a t a c e l e b r i t y c a n h o l d F a c t o r s
D e t e r m i n i n g t h e E ff e c t i v e n e s s o f C e l eb r i t y E n d o r s e r s In t h i s s e c t i on , t h e
f a c t o r s t h a t i n f l u en c e t h e e f f e c t i v e n e s s o f c e l e b r i t y e n d o r s e r s h a v e b e e n
discussed. The factors have been classified as celebrity specific, consumer
s p e c i f i c , p r o d u c t sp e c i f i c a n d a d v e r t i s e m e n t s p e c i f i c . C o n s u m e r S p e c i f i c
F a c t o r s F i r m s t a r ge t a s e gm e n t o f c o n s u m e r s f o r t h e i r o f f e r i n gs a n d d e s i gn
t h e i r a d v e r t i s e m e n t s o n t h e b a s i s o f t h e c h a r a c t e r i s t i c s o f t h a t s e gm e n t .
Therefore, there are many consumer specific factors that affect the
effectiveness of celebrity endor sers. C o ns u m e r d e m o gr a p h i c s and
p s yc h o gr a p h i c s c u l t u r e , e c o n o m i c a l f a c t o r s a r e s o m e o f t he m a j o r c o n s u m e r
s p e c i f i c a t t r i b u t e s t h a t i n f l u e n c e c o n s um e r s ‟ a t t i t u d e a n d 40e h a v i o r . In t h i s
section, s om e major factors that can affect the celebrity endorsers‟
e f f e c t i v e n e s s h a v e b e e n d i s c u s s e d . C o n s um e r D e m o gr a p h i c s R e s e a r c h e r s
h a v e o b s e r v e d d i f fe r e n c e s i n r e s p o n se s o f m a l e s a s c om p a r e d t o f e m a l es
r e ga r d i n g t h e e n d o r s e r s ( C a b a l l e r o , L u m p k i n , & M a d d e n , 1 9 8 9 ) . K h a n a n d
K h a n ( 2 0 0 2 ) o n a st u d e n t s a m pl e f r o m In d i a , s t u d i e d v a r i ou s a s p e c t s r e l a t ed
t o e f f e c t i v e n e s s o f c e l e b r i t y e n d o r s e r s a n d a l s o a n a l yz e d t h e i n f l u e n c e o f t h e
r e s p o n d e n t s ‟ ge n d e r o n t h e s a m e . F o l l o w i n g a r e t h e i m p or t a n t f i n d i n gs f r o m
t h e i r s t u d y. A . T h e r e w e r e s i gn i f i c a n t d i f f e r e n c e s b et w e e n m a l e s a nd
f e m a l e s r e ga r d i n g a p p r a i s a l o f T V a n d s p o r t s c e l e b r i t i e s . S p o r t s st a r s w e r e
favored by males and TV stars were favored by female. Film stars received
s i m i l a r r e s p o n s e s by b o t h m a l e s a n d f e m a l e s . B . F e m a l e s w e r e m o r e p o s i t i ve
r e ga r d i n g c a p a b i l i t y o f c e l e b r i t y A d s i n a t t r a c t i n g a t t e n t i o n a s c o m p a r e d t o
m a l e s h o w e v e r t h e d i f f e r e n c e w a s n o t s i gn i f i c a n t . C . F e m a l e s t u d e n t s w e r e
40
a l s o m o r e p os i t i v e t o w a r d s t h e e f f e c t i ve n e s s o f m a l e c e l e br i t i e s t h a n f e m a l e
c e l e b r i t i e s . D . C o nv i n c i n g a b i l i t y o f t h e c e l e b r i t y e n d o r s e m e n t s w a s r a t e d
h i gh e r b y m a l e s t u d e n t s t h a n f e m a l e st u d e n t s a n d t h i s d i f f e r e n c e w a s a l s o
s i gn i f i c a n t . A t ki n s a n d B l o c k ( 1 9 8 3 ) i n t h e i r s t u d y o n t w o s e t o f a u d i e n c e
( yo u n g a n d o l d ) f o u n d t h a t yo u n ge r a u d i e n c e ‘ s e v a l u a t i on o f t h e c e l e b r i t y
e n d o r s e m e n t s w e r e s i gn i f i c a n t l y h i gh e r t h a n o l d e r a u d i e n c e . F r i e d a n ( 1 9 8 4 )
i n h i s e x p e r i m e n t , i n w h i c h h e m a n i p u l a t e d e n d o r s e r t yp e a n d ge n d e r o f t h e
endorser, also found that a t t i t u d es of yo u n ge r consumers differed
s u b s t a nt i a l l y f r o m o l d e r c o n s u m e r s. In ge n e r a l , yo u n g e r r e s p o n d e n t s r a t e d
t h e a d v e r t i s e m e n t s h i gh e r t h a n a d u l t r e s p o n d e n t s . C o n su m e r In v o l v e m e n t
O n e o f t h e m o st i m p o r t a n t c o ns u m e r s p e c i f i c f a c t o r s t h a t i n f l u e n c e t h e
effectiveness of advertising is c on s u m e r i n vo l v e m en t . In v o l v e m e n t
d e t e r m i n e s t h e a b i l i t y a n d m o t i v a t i o n o f c o n s u m e r s t o p ro c e s s i n f o r m a t i o n
( P e t t y e t a l . , 1 9 8 3 ; A n d r e w , D u r v a s u l a& A k h t e r , 1 9 9 0 ) .
47
Figure 3.6: Hierarchy of Effects
48
standard learning hierarchy process are consumer durables like computers,
automobiles, services, appliances or industrial products. In this hierarchy,
consumer will focus more on information and less on non -message elements
such as music, tag lines or the endorser. Low Involvement Hierarchy: In low
involvement hierarchy, the consumer pass through „ Learn - Do – Feel‟ stages in
that order. This generall y happens when there is less perceived differences in
the product category and the consumer is less involved in the purchase decision.
Therefore when consumer learns about the brand, he first purchases it and then
forms feelings towards it base d on his experience. In this situation, consumer
focuses more on non-message elements and not indulges in passive learning
rather than active information seeking. Dissonance/Attribution Hierarchy: In
this process, the consumer first purchases the product a nd then forms beliefs and
attitude based on the experience of using the product. Therefore, the consumer
acts in „Do- Feel - Learn‟ order. This happens when the consumer has to choose
between less numbers of alternatives which have less perceived differenc es but
may have hidden unknown features. Consumers are generall y highl y involved in
the purchase process. In this situation the consumer seeks dissonance reducing
information after the purchase has been made. In this situation, the purchase is
often guided by non-media sources such as the recommendations by friends,
famil y and peers etc. According to Floyd (1999), when there is high product
differentiation (large number of perceived differences) in competing brands,
there are chances that the consumer will become highl y involved and will focus
more on information regarding the brand, in order to evaluate each alternative
(i.e. case of Standard Learning Hierarchy).In this situation, a celebrit y endorser
will not prove to be effective. He also opines that usin g celebrit y endorsers are
not fruitful in case of Dissonance/Attribution hierarchy as consumer pay less
attention to media sources in this case. Contraril y, minimal differences (low
product differentiation) in competing brands will lead to low involvement of
consumers in purchase process and they may focus less on information and more
on non-message elements such as a celebrit y endorser (i.e. the case of Low
Involvement Hierarchy). Advertisement specific Factors Advertisements are
major mode of introducing the product and play an important role in forming
attitudes and persuading consumers. Celebrit y endorsers are also generall y
49
utilised through advertisements. Therefore, there are many advertisement
specific factors that can determine the impact of celebrit y endorsers on
consumer attitudes and behavioural intentions. Some of the factors can include
the copy appeal of the advertisement, congruency, timing of the source and the
message, repetitions of the message and the way of depicting the celebrit y in the
advertisement. Repetition Studies regarding message repetition have found that
increased exposure to a stimulus increases its liking but effectiveness may
decrease with increasing exposure (Calder &Sternthal, 1980; Cacioppo & Pett y,
1985). Past research has shown that increased message repetition causes greater
difference in attitudes between strong vs. weak arguments under moderate levels
of repetition (Cacioppo & Pett y, 1989). This notion was also supported in the
study by Rice et al. (2011), but onl y unde r high consumer involvement condition
where moderate level of repetition caused greater divergence in attitudes
between high vs. low levels of congruency. Studies have also found negative
effect of repeated exposure to the celebrity in the form of multiple endorsements
(Mowen & Brown, 1981; Rice et al., 2011). Tripp et al. (1994) found negative
relationship between number of exposures to the celebrit y and attitude towards
the Ad and purchase intentions, independent of whether the celebrit y is
endorsing single or multiple products. Although not significant, the same
relation was found for the attitude towards the brand also. Study by Rice et al.
(2011) suggests that effect of repetition caused by multiple endorsements is
dependent upon involvement and congrue ncy. Their findings revealed that when
consumers are highly involved, the repeated exposure (in the form of number of
different products endorsed is beneficial provided the multiple endorsements
are congruent to the image of the celebrit y. However when co nsumers are less
involved, repetition (in the form of number of different products endorsed b y
celebrit y) reduces endorsements‟ effectiveness. Timing of the Source Timing of
the source in an advertising message also influences effectiveness of celebrit y
endorsements. Ward and McGinnies (1974) found that a high credible source
was found to be more influential than a low credible source when identified
before the message. Sternthal, Dholakia and Leavitt (1978) reported that when
the source was identified afte r the message, credibilit y had no systematic impact
on attitudes, argumentation and counter argumentation. Homer and Kahle (1990)
50
manipulated timing, involvement and expertise and found that under high
involvement, source expertise was more influential whe n identified at the
beginning of the message (with expert source more effective than low expert
source). However, under low involvement, expertise was more influential when
the source is identified after the message (high expert source more effective
than low expert source). Congruency Several researchers have studies the effect
of product -brand congruency in the advertisement on attitudes and behavioural
intentions of the consumers. Studies have shown that high celebrit y -brand
congruency is more important when consumers are highl y involved because it
serves as the central cue in persuasion. For example, Kirmani and Shiv (1998)
found that under high involvement, celebrit y -product congruence serves as
strength of the persuasive argument (central cue) and incr eases effectiveness of
celebrit y endorsements. An experiment by Lee and Thorson (2008) studied the
effects of different degrees of congruency (extreme match, moderate mismatch
to extreme mismatch) on attitudes and behaviour. Based on schema -congruit y
framework, they suggested a theoretical framework that a moderate mismatch
between celebrit y‟s image and product‟s image would produce more favourable
responses to advertisement as compared to extreme mismatch and extreme
match. Although not statisticall y signi ficant, extreme match was not found to be
more effective than moderate mismatch in their study. Risk Associated with
Celebrit y Endorsers Despite having several benefits, celebrit y endorsements are
associated with some but very critical hazards. Celebrities can overshadow the
product being endorsed, they can lose popularit y or if they get involved in a
negative event then the products they endorse can severely suffer (Cooper,
1984; Till &Shimp 1998; Till, 1998). Here are some of the major risks
associated with celebrit y endorsements. Negative Information When celebrities
get involved in a scandal, the negative information regarding them affects not
onl y their image but also the image of the products they endorse (Till and Shimp
1995). The stronger the associa tion between celebrit y and the product, the more
is the chances of spill over of negative information to the product. In an
experiment conducted by Till and Shimp (1998), it was found that the negative
information about celebrit y can damage brand evaluatio n because of associative
link between the brand and the celebrity. The damage done by negative event
51
also depends on the level of blameworthiness of the endorser. Findings by Louie
and Obermiller (2002) revealed that the company image benefits when it
dismisses an existing endorser with high blame and retains those with low
blame. Overshadowing Another risk of celebrit y endorsement is that consumer
can fail to recognize the brand being endorsed and focus only on the celebrit y
(Cooper, 1984). According to Ti ll (1998) overshadowing happens when celebrit y
occurs with many other stimuli and instead of forming strong associative link
with the product, instead the link gets formed with other dominant stimuli. The
brand and celebrit y should be the strongest element in an advertisement.
Overexposure As pointed out earlier, the image of the brand suffers when the
celebrit y becomes overexposed by endorsing multiple products. This also
damages the image of the celebrit y and weakens the link between the celebrit y
and the products being endorsed because the relationship between the celebrit y
and a particular brand is not distinct Mowen and Brown (1981). In case of
overexposure, consumer may question whether the celebrit y reall y believes in
the brands he is endorsing or th e endorsements are just for the compensation.
Also, consumers can get confused and unable to correctl y recall the brands for
which the celebrit y stands for (Tripp et. al., 1994). Loss of Popularit y If the
celebrit y loose popularit y over the time, then he m ight not serve the purpose for
the brand which he was serving when successful. In this situation the brand can
suffer. If the company has signed a long term contract with a celebrit y, then the
company will be forced to continue with the celebrit y even if h e or she has lost
popularit y and fame (Ziegel, 1983). To avoid this risk the company should try to
enter into short term contracts with the celebrit y. Financial Risk Financial risk
is always present with celebrit y endorsements owing to the higher cost
associated with them. The cost of endorsing a celebrit y can surpass the
monetary benefit generated by the endorsement. Company should not always try
to pursue a popular celebrit y, but should choose a celebrit y which is economical
and at the same time matches b est with the brand and also appeals to the target
segment (Tellis, 1998). Statement of Problem Based on the literature review,
two main research problems were identified. The first research problem is
related to the usage of celebrit y endorsers in the con text of Indian advertising
and the second is related to effectiveness of celebrit y endorsers as compared to
52
a t ypical endorser. Content Anal ysis The advertising clutter is increasing day by
day in the country (Vyas, 2012). There has been substantial increa se in the
number of promotional messages that an individual encounters dail y and there is
almost no place where a person can avoid promotional messages be it at home,
workplace, on roads, at shopping malls or anywhere outdoor. The main reasons
of the growth in the advertising clutter is the increase in both, the media
avenues such as number of television channels, print media, social media,
multiplex theatres, software applications etc. and the technological advancement
in the form of faster broadband and w ireless internet connections, smart phones,
tablets and set top box etc. (Kotler et al., 2012).The increased advertising
clutter has also led to increased use of celebrit y endorsers by the advertisers in
order to attract attention towards their product and to induce positive attitudes
and intentions for the same. However, if we try to look at the usage of celebrit y
endorsements in India, the picture appears complex. There are large numbers of
celebrities endorsing wide range of products. Many celebrities no w are
endorsing multiple brands. Further, with the growth in the sports and
entertainment sector, the suppl y of celebrities has also increased. International
stars are also becoming popular in the country due to increased access to foreign
entertainment. This enormous use of celebrit y endorsers in India has led to a
clutter of celebrit y advertisements itself. Despite the significant use of celebrit y
endorsers in the country, very few studies have tried to analyse the content of
celebrit y advertisements. Two major studies done in this regard were Khan and
Khan (2002) and Jain et al. (2010). The work by Khan and Khan (2002)
contributed significantl y to the understanding by studying some of the relevant
aspects but more than a decade has passed and the marketin g environment has
changed drasticall y. Further, the information „clutter‟ has also increased. The
technological advancement in the form of set top box as an alternative to cable
television, smart phones, tablets, laptops, powerful internet connections and the
advent of social media has influenced all the marketing practices and speciall y
the advertising (Kotler et al., 2012).Furthermore, the work by Jain et al. (2010)
focused onl y on the way the celebrit y endorsers are depicted in advertisements
and did not cover other aspects regarding the usage of celebrit y endorsers in the
country. Thus, the first purpose of the research was to study and anal yse the use
53
of celebrit y endorsers in the country in order to better understand the strategies
being employed by the advertisers in this scenario of increased advertising
clutter and changed marketing environment. In order to meet this objective, a
content anal ysis of TV commercials aired on various channels in India was
carried out. The content anal ysis aimed at thoro ughl y studying and anal ysing the
extent of the usage of celebrit y endorsers. The major aspects that were left out
in the previous studies were also addressed through the content anal ysis.
Further, the content anal ysis also aimed at evaluating the use of ce lebrit y
endorsers in the light of the previous research undertaken in the area of
celebrit y endorsers‟ effectiveness. The aspects which the content anal ysis aims
at studying include.Extent of celebrit y use in TV commercials and the use of
celebrit y endorse rs across various TV channels and product categories. •
Celebrit y Gender: Overall use of male celebrities in comparison to female
celebrities and their usage across various product categories. • Celebrit y Type:
Overall and product category specific use of celebrities belonging to film, TV,
sports and other fields. • Celebrit y Role: The various ways in which celebrities
are depicted in commercials of various product categories. • Celebrit y Origin:
Overall and product category specific use of national Vs inte rnational
celebrities. • Copy Appeal: The type of copy appeal being used in celebrity
advertisements of various product categories. • Number of celebrities used in a TV
commercial. Hypotheses were established and tested in order to figure out any
associations that can exist between these aspects and also to evaluate the practice in
the light of previous research on the effectiveness of celebrity endorsers. Need for
Content Analysis Studying the usage of celebrity endorsers in India through the
proposed methodology can benefit both the academicians and practitioners in three
ways. First, it will help in figuring out the strategies being used by advertisers
regarding celebrity endorsers when there use has become enormous and the
marketing environment has undergone a significant change. The results will also
help in understanding overall trend regarding the use of celebrity endorsers when
compared to previous studies. Second, it will help in evaluating the use of celebrity
endorsers in the light of previous research undertaken on the effectiveness of
celebrity endorsers. This in turn will help us in understanding the extent to which
the advertisers in India have incorporated the past research in their practise and how
54
well they are using the celebrity endorsers. Third, less exploited strategies regarding
celebrity endorsers can be identified which will help the advertisers to come up with
their own unique and more effective celebrity endorsement strategy. Experimental
Study We have reviewed the theories and factor s that can help both academicians
and practitioners in understanding the dynamics of celebrity endorsers‟
effectiveness. One cannot ignore the power of celebrities in breaking through the
cluttered media environment and drawing attention towards the advert isement (Atkin
& Block, 1983; Belch & Belch, 2003). They also increase the awareness and recall
of the product and the advertisement (Kamen et al., 1975; Petty et al., 1983; Tripp
et. al., 1994). Moreover, they give symbolic meanings to the product being e ndorsed
through the meaning transfer process (McCracken, 1989). Therefore, based on the
literature review it would be safe to say that celebrity endorsers have strong impact
on attention, recall and awareness (Hussain& Khan, 2017). However, the
effectiveness of celebrities in inducing positive attitude towards the advertisement,
attitude towards the product and generating purchase intentions is contingent upon
factors that were highlighted through literature review, especially the characteristics
of the celebrity, the cultural meanings associated with the celebrity, the celebrity -
product congruency and consumer involvement (Ohanian, 1990; Kamins 1990;
McCracken, 1989; Petty et al., 1983). An important question which now arises is
whether or not we can ensure a successful celebrity endorsement for every type of
product, if we take into consideration all the major factors identified in previous
literature. In other words, if a celebrity endorser is selected by considering all the
major determinants of celebrity endorsers‟ effectiveness proposed in previous
research, then whether or not the selected celebrity will be effective for every type
of product? Appropriate Celebrity Endorser Based on the literature review we can
identify the factors which are important f or selecting a celebrity endorser. Previous
research suggests that the celebrity should be perceived high on some characteristics
in order to be effective. Some of the important characteristics are attractiveness,
trustworthiness, likability, similarity, f amiliarity and expertise (Hovland et al.,
1953; Crisci&Kassinove, 1973; McGinnies& Ward, 1980; McGuire, 1985; Misra&
Beatty, 1990; Ohanian, 1991). A celebrity endorser high on these characteristics is
believed to have positive impact on consumer attitudes and behavioural intentions.
Meaning Transfer Model (McCracken, 1989) explains the rationale behind the
55
effectiveness of celebrity endorsers and tells us why some celebrity endorsers are
more effective than others. Consumers try to acquire the cultural mean ings held by
the celebrities they like, by imitating them and consuming the brands which
symbolize those celebrity meanings. It suggests that celebrities who offer cultural
meanings that are relevant to the product and are sought by the target consumers wi ll
prove to be more effective as endorsers. Consumer involvement is another important
determinant of celebrity endorsement effectiveness. Celebrity endorsers are
generally believed to be effective in impacting consumer attitudes under low
involvement because they themselves and their characteristics serve as additions in
peripheral cues. However, under high involvement condition, advertisers should use
celebrity in such strengthens the persuasive argument in the advertisement (i.e.
central route) otherwise they will not prove very effective in inducing positive
attitudes (Petty et al., 1983).For this purpose „match -up‟ is very important as studies
have shown that match-up, be it attractiveness based, expertise based or image
based, serves as central cue in advertisement (Homer &Kahle, 1990; Kirmani &
Shiv, 1998; Lee & Thorson, 2008; Rice et al., 2011). Apart from these factors,
previous research also suggests that the celebrity endorser who endorses fewer
products will be more effective than the celebrity end orser attached with multiple
brands (Roy, 2012). Further, Khan and Khan (2002) found that in Indian context,
film celebrities were rated higher than sports and TV celebrities in terms of
effectiveness. Therefore, in order to make a celebrity endorser succe ssful for a
product, following points regarding the celebrity are very important. 1) The celebrity
endorser should be perceived high on attractiveness, trustworthiness, expertness,
likability, similarity and familiarity (Hovland et al., 1953; McGuire, 1985 ; Misra&
Beatty, 1990; Ohanian, 1991). 2) The celebrity endorser should posses the relevant
and desired cultural meanings for the product he is endorsing (McCracken, 1989;
Hussain& Khan, 2017). 3) The celebrity endorser should have few prior brand
associations (Roy, 2012). 4) The celebrity endorser should be a proper „match -up‟
for the product he is endorsing (Kahle& Homer, 1985; Hussain& Khan, 2017). 5)
Film celebrity is more preferred especially in Indian context (Khan & Khan, 2002;
Hussain& Khan 2017). Based on these factors we can identify an appropriate
celebrity endorser for a product. Thus, the appropriate celebrity endorser is the one
who satisfies all these pre-requisites identified by previous researchers. Researchers
56
have opined and empirically tested the interaction between product category and
celebrity endorser. Some have argued that celebrity endorsers are more suited for the
products that are high in social and psychological risk and less effective for products
that are high in physical, financial and performance risk (Friedman & Friedman,
1979). As pointed out earlier, according to Three -Orders Hierarchy model, Floyd
(1999) suggests that celebrity endorsements are more effective for the product
category in which there are less number of percei ved differences a way that it among
competing brands and when consumer involvement is low(i.e. Low Involvement
Hierarchy). However, in case of Standard Learning Hierarchy (i.e. high product
differentiation and high consumer involvement) the celebrity endor sers are not
effective. Moreover, consumers pay less attention to media sources in case of
Dissonance/Attribution Hierarchy. Hence, the experimental study will try to find out
that whether or not an appropriate celebrity endorse will prove more effective t han a
typical endorser in terms of consumer attitudes and intentions for the two product
categories suggested by Floyd, (1999) i.e. Standard Learning Hierarchy and
Dissonance/Attribution Hierarchy. Thus, the first objective of the experimental study
was to gauge the effectiveness of an appropriate celebrity endorser for two different
product categories (i.e. Standard Learning Hierarchy and Dissonance/Attribution
Hierarchy) in comparison to a typical endorser. Effectiveness of appropriate
celebrity endorsers in comparison to typical endorsers was considered because
generally the advertisements feature a known personality or an unknown typical
endorser. Therefore, keeping in mind the high cost associated with celebrity
endorsers, their performance in compariso n to typical endorsers, which is a low cost
option for marketers, would be worthwhile to study. The second objective was to
find out that for which of the two product categories, the appropriate celebrity
endorsers were more suitable/effective. The third o bjective of the experimental study
was to study the impact of demographic of the consumers (gender and age) on the
effectiveness of appropriate celebrity endorsers. Consumer demographics were
chosen for the study because many a times, the target audience a nd consumers of the
product/brand include people of varied age groups and gender. For example Smart
Phones, Laptops, Cameras and Automobiles etc. Therefore, it will be important to
know that whether an appropriate celebrity endorser would be effective or n ot,
irrespective of the consumers‟ gender or age. The effectiveness of celebrity
57
endorsements were measured in the terms of variables other than recall and
awareness i.e. consumer attitude and behavioural intentions. Need for the
Experimental Study The experimental study can make important contribution to the
field of study in several ways. First of all, it tries to address one of the most talked
about issue in advertising that is the effectiveness of celebrity endorsers in bringing
out desired attitudinal and behavioural change. The experimental study will not only
try to study the impact of celebrity endorsers on consumer attitudes and behavioural
intentions but it will also study their relative effectiveness in comparison to typical
endorsers for two different product categories. Further, because the experimental
study will utilise appropriate celebrity endorsers, we can evaluate the ability of the
past research in ensuring a successful celebrity endorsement for various types of
products. Moreover, it will also help in finding out the product category for which
the celebrity endorsers are more suitable and in turn can help the marketers in
deciding whether to use or not to use a celebrity endorser for their offering.
Secondly, studying the relative effectiv eness of celebrity endorsers in comparison to
typical endorsers becomes more relevant keeping in mind the already existing
substantial use of celebrities in Indian advertising. Already present high use of
celebrity endorsers can negatively impact their eff ectiveness and can drive away
their ability to influence consumer attitude and behavioural intentions. The
experimental study can tell us that whether or not the celebrity endorsers are more
effective than typical endorsers even when their use has become e xtensive in the
country. Moreover, the high cost associated with hiring a celebrity endorser in
comparison to a typical non-celebrity endorser attaches more worth to the study.
Thirdly, the experimental study will also analyse the moderating role of consum er
gender and age on the effectiveness of celebrity endorsers. Studying the role of
consumer demographic is important because many a times, the target audience and
consumers of the product/brand include people of varied age groups and gender. For
example smart phones, laptops, cameras and automobiles etc. Further, the
promotional message of the advertisement is also many times directed towards the
other participants of the purchase decision making process.
58
Research Methodology
59
Research Methodology
consists of different steps that are generall y adopted by a researcher to study his
The first step is to formulate a research design. This means planning a strategy
social/economic questions. After collecting and anal ysis of the data, the
interpretation researcher can expose relations and processes that underlie his
Interpretation refers to the task of drawing inferences from the collected facts
after an anal ytical study. It is a search for broader meaning and research
findings. It is the device through which factors that seem to explain what has
is essential because it will lead towards findings of the study and proper
sources.
The data collection is based on Secondary Data. Secondary data is the data
collected by others in the past and used by others. It may be either being
Percentage
Graph
Tabulation
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Data Analysis & Interpretation
62
Split of type of Endorser taken by the brands
Film 76%
Sports 12%
TV Stars 3%
Others 9%
Total 100%
3%
9%
Film
12%
Sports
TV Stars
Others
76%
Interpretation:
76% of the Advertisement faces are from the film industry followed by 12%
from sports, 3% of them are TV Stars and remaining 9% are from other
background.
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Is Celebrity endorsement worth it?
2017 1660
2016 1620
2015 1570
2014 1450
2013 1350
2012 1250 Number Of Celebrity
2011 1100 Engagement
2010 1070
2009 950
2008 810
2007 650
Interpretation:
64
Celebrity Vs Non Celebrity
T o tal 100%
19%
Celebrity Endorsed
Advertisement
Interpretation
65
Advertisement Medium Analysis
Medium Percentage
TV Advertisement 50%
Magazine 22.5%
Internet 24%
Newspaper 3.5%
Total 100%
3.5
24
TV Advertisement
Magazine
50
Internet
Newspaper
22.5
Interpretation
50% of the Ads are shown on the TV followed by 24% of Ads are shown on
Internet, 22.5% on Magazine and 3.5% on Newspaper. This data shows that
product.
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Celebrity Use and the Types of TV Channels
Table: Celebrity Use and the Types of TV Channels
120.00%
60.00% 76.20%
89.80%
96.10% 94.34%
40.00% 74.50% 78.40%
20.00%
23.80%
0.00% 10.20%
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Celebrity Gender and Celebrity Type
44%
Male
Female
56%
68
Findings
69
Findings
Most of the Advertisement faces are from the film industry followed sports, and a less
majority belongs from TV industry.
We are seeing a constant growth in number of celebrity endorsement by the companies
and market which shows that the Celebrity endorsement has helped industry and market
to make profit and is increasing its market reach.
People also want to see faces which is a familiar to them in the advertisement.
Majority of advertisements are shown on television and over the internet.
The use of celebrity endorsers is not TV channel specific.
Advertisements are more gender specific as in sports advertisement we can see the
dominance of males over female.
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Conclusion
71
The study has tried to explore both the use of celebrities in advertising and the effectiveness of
celebrity endorsers.Consumers do require detailed information about the brand so as to evaluate
its strengths & weaknesses; this ample amount of information they try to extract from
Advertisements. Following conclusion can be drawn from my studies:-
Most people like to watch advertisement on Television or on internet to understand what
the companies are trying to say and what benefit can they extract from it.
Film celebrities were preferred more by the advertisers in comparison to TV and sports
celebrities for all product categories. However, the type of celebrity used was found to be
product specific.
Celebrity Role was found to be significantly associated with the type of celebrity used
(i.e. Film, TV and Sports).
The gender of the celebrity was found to be significantly related to the type of celebrity
used (i.e. film, TV and sports). Mostly male celebrities were used in case of the
advertisements that featured sports celebrities.
Celebrity Endorsement is worth investing in as it is market pressure and people tend to
connect the product with celebrity qualities and behaviour.
72
Bibliography
73
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advertising research.
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marketing communications perspective. The McGraw−Hill
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Credibility on Attitude Towards Advertisements and Brands. South Asian Journal of
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Websites
www.google.com
www.wikipedia.org
www.quora.com
Researchgate.net
https://scholar.google.co.in/
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