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FORE SCHOOL OF MANAGEMENT, DELHI

Consumer BehaviorCelebrities are demigods in India

Submitted To: Dr. D K Batra

9/14/2009

Celebrities are Demi-gods in India- Perception or Reality

Submitted By: Amul Malhotra-81127Arun Sharma-81130

Isha Arora-81146

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Acknowledgement

We would like to express my gratitude to all those who gave me the possibility to complete this Study.

First of all, we would like to thank our honorable Dr. DK Batra for giving us permission to commence this

project in the first instance, to do the necessary research work. We would also like to thank for his

guidance under which I was able to carry out this project successfully.

We would also like to give special thanks to my respondents who took pain in responding to our

questionnaire.

Amul Malhotra-81127

Arun Sharma-81130

Isha Arora-81146

Celebrities are Demi-gods in India- Perception or Reality

Executive Summary

Today, the modern marketing strategy of most business firms relies heavily on creative

advertising to promote their products to their target markets. In fact, a central goal of today's

advertising strategy is the persuasion of customers, who are becoming increasingly educated,

sophisticated and, selective. The main purpose of this study is to explore consumer attitudes

towards the role of celebrity endorsement in influencing Indian customer and making brand

popular, and provide guidance to advertising makers and specialists to improve the effectiveness

of celebrity-based advertising. Research has explored celebrity attractiveness, meaning transfer,

credibility, impact, and celebrity-product fit but these have largely been on Indian cultures. The

study was based on an empirical research approach, which used a convenience sample of 31

drawn from Northern India sample mix consisted of students, working executives. The responses

were collected using a structured questionnaire through a personal interview. The questions

consisted of open-ended question, forced choice decision and some attitude measuring

statements for which answers were to be marked on a likert scale. The data was analyzed by

various statistical techniques, such as Frequency analysis, Descriptive analysis, One Sample t-

Test, and One-Way ANOVA. The main findings showed that Indian respondents were generally

interested in celebrity endorsement in advertising, as the majority recognized its overall

attractiveness, though did not find it convincing enough in terms of brand choice behavior. The

study suggested to reconsider the way celebrities were projected in advertising, or even chosen,

within the context of the Indian culture. Indian consumer has also showed an interest in the

relationship between celebrities and endorsed products in advertising. They seemed to believe in

the importance of the match-up between the two. Further study shows that celebrities have a

good effect on TOP of mind brand recall, Indian consumer also has great tendency to discard

brands if its celebrity is involved in negative publicity and celebrity gets its image diluted if it is

associated with brand of premium and lower image brands simultaneously. The study urged

further research to explore this issue in greater depth in India. More research will have to be

made to explore more specific issues of celebrity endorsement in television advertising within

the context of the Indian culture

Table of ContentsChapter-1....................................................................................................................................................1

INTRODUCTION....................................................................................................................................1

1.1. Statement of the research problem...........................................................................................2

1.2. Research objectives....................................................................................................................2

Chapter-2.....................................................................................................................................................3

LITERATURE REVIEW............................................................................................................................3

2.1. Endorser attributes....................................................................................................................3

2.2. Endorser selection criteria........................................................................................................4

2.3. Power of celebrity endorsement................................................................................................5

2.4. Previous research.......................................................................................................................5

2.5. Research hypotheses..................................................................................................................7

Chaper-3......................................................................................................................................................9

RESEARCH DESIGN.................................................................................................................................9

3.1. Sampling procedures.................................................................................................................9

3.2. Research instrument..................................................................................................................9

3.3. Statistical treatment.................................................................................................................10

Chapter-4...................................................................................................................................................11

DATA ANALYSIS...................................................................................................................................11

4.1. Attraction of CBA (Dim. 1).....................................................................................................11

4.2. Influence of CBA on brand choice (Dim. 2)...........................................................................12

4.3. Celebrity-product match up (Dim. 3).....................................................................................13

4.4. Demographic variables............................................................................................................14

4.4.1. Sex.....................................................................................................................................14

4.4.2. Income..............................................................................................................................15

4.4.3. Age....................................................................................................................................16

4.5. Linking Brand & celebrity Recall ( Q1 &2)...........................................................................17

4.6. Celebrity Brand-Fit( Q3).........................................................................................................18

4.7. Negative Publicity....................................................................................................................19

4.8. Overexposure...........................................................................................................................19

Chapter-5...................................................................................................................................................21

CONCLUSION & IMPLICATIONS........................................................................................................21

5.1. Recommendations....................................................................................................................21

5.2. Research limitations................................................................................................................22

ANNEXURE-Questionnaire........................................................................................................................a

BIBLIOGRAPHY........................................................................................................................................c

Chapter-1INTRODUCTION

Today the modern marketing strategy of most business firms relies heavily on creative

advertising to promote their products to their target markets. In fact, a central goal of today's

advertising strategy is the persuasion of customers, who are becoming increasingly educated,

sophisticated and, selective. Competition is also becoming more intense. Having a good product

alone is not enough to compete in markets of high standards (Kumar and Reinartz, 2006).

Obviously, The changes in markets and consumer lifestyle are driving marketers to focus

on more persuasive ways of promoting their products. In today's media driven markets,

creative advertising can promote not only products, but also attractive lifestyles and dreams that

are highly valued by consumers (Alsmadi, 2005). Very often, advertising makers use various

advertising styles to influence consumers' brand choice behavior. Among the different styles

available, celebrity endorsement is becoming a popular choice in the advertising industry.

Celebrities like movie actors, stars, famous athletes are widely used in advertising to influence

consumers' brand choice behavior (Shimp, 2003). Advertisers try to establish a link between

their brands and a desirable image or lifestyle of a celebrity (Suegker, 2003). Research and

experience show that consumers are most comfortable and highly ready to spend, when

celebrities endorse things that relate to their desired image (Internet World, 2001). The perceived

image of celebrities is likely to have a positive impact on product choice behavior (for example,

Goldsmith, Lafferty, and Newell, 2000; Mathur, Mathur, and Rangan, 1997). Consumers are

likely to take more notice of celebrity advertisements and improve their level of product recall

(Bowman, 2002). In fact, the special influence of celebrity endorsement is further enhanced by

the obvious features of advertising provides daily access to thousands of sport athletes, film and

stars, and other celebrities. This makes celebrity-based advertising (CBA) an attractive choice by

advertising makers. The term CBA will be used throughout this study to mean advertising that

depends primarily on celebrity endorsement to influence consumer brand choice behavior. The

current research investigates this issue within the Indian context.

1.1. Statement of the research problem

Because of the complexity of consumer buying behavior and its variability across cultures, it is

virtually difficult to identify advertising approaches that can be universally effective. Yet, it is

noticeable that the portrayal of celebrities in advertising is significantly increasing and becoming

more important in the advertising strategy of most business firms across the world. In India, in

particular, marketers continue to adopt this universal trend in their advertising strategy. But, it is

not clear how Indian customers respond to this type of advertising. Specifically, there is no

evidence, so far, to suggest that it certainly affects their brand choice behavior. Indeed, this is

the primary concern of the current research, which investigates consumer attitudes towards

celebrity endorsement in advertising (CBA) in Indian, focusing on the following dimensions:

1) Attractiveness of CBA

2) The effect of CBA on consumers' brand choice behavior

3) The importance of celebrity-product match up

1.2. Research objectives

The purpose of this study is to explore Indian consumer attitudes towards CBA to understand

how consumers respond to celebrity endorsement in commercials. In particular, the study seeks

to answer the following questions:

1. How attractive is CBA to the Indian consumer?

2. What is the effect of CBA on consumers' brand choice behavior?

3. How important is the celebrity-product match up?

4. Do consumer attitudes towards CBA, with respect to brand-choice behavior, vary by

demographic variables (sex, Age and income)?

On the contribution side, the findings are expected to help advertising makers improve the

effectiveness of their advertising efforts, thus increase advertising persuasion within the Indian

context.

Chapter-2LITERATURE REVIEW

The celebrity concept in today's dynamic and highly competitive business environment and

customers are becoming more demanding. Their expectations are continuously rising, with

marketers continuing their efforts to meet them. In their reactive advertising efforts, marketers

turn to celebrity endorsement to influence consumer brand choice behavior. A celebrity is a

well-known personality who enjoys public recognition by a large share of a certain group of

people (Schlecht, 2003). Celebrities (e.g. models, actors, stars, artists and, sport athletes) are

known to the public for their accomplishments in areas other than the product class endorsed

(Friedman and Friedman, 1979). They usually enjoy high public recognition, and often have

powerful influence upon endorsing products. They appear on as spokespersons on behalf of the

advertised brand, or ordinary users of such brand. In either way they often deliver a convincing

message. They help increase awareness of advertised brands and create positive feelings towards

them (Solomon, 2002). Eventually, this will positively affect customers' brand choice behavior.

But, what are the desired qualities that should be possessed by effective celebrities? Next section

will deal with this.

1.3. Endorser attributes

Research has shown that effective celebrities must be assessed against five essential attributes,

usually referred to as 'TEARS' model (Shimp, 2003)

Trustworthiness: honesty, integrity, and believability of an endorser. It reflects the extent to

which audience members trust and believe what celebrities say regarding the advertised brand.

Expertise: knowledge, experience and skills of an endorser regarding the advertised brand. For

example, a sport athlete is considered to be an expert when he/she endorses sport related

products.

Attractiveness: all characteristics that make an endorser attractive to audience Members (e.g.

physical look, personality properties, attractive lifestyle … etc).

Respect: refers to the quality of being admired or esteemed due to endorser's overall

accomplishments.

Similarity: represents the extent to which an endorser matches target audience on characteristics

related to the endorsement relationship (sex, age, lifestyle… etc.).

The TEARS model describes the essential qualities of celebrities that are important in

determining their effectiveness in endorsement. But this does not say much about the selection

criteria used by marketers and advertising makers. Next section will cast light on this issue.

1.4. Endorser selection criteria

The decision to select celebrity endorsers in advertising is very important, at least partly, due

cost consideration. Marketers and advertising makers use variety of selection criteria. Below is a

list of the most important ones (Erdogan, Baker and Tagg, 2001; Miciak and Shanklin, 1994):

Celebrity/audience matchup: compatibility between an endorser and the target audience. It

represents the extent to which the target market relates positively to the endorser.

Celebrity/brand match up: compatibility between an endorser and the image desired for the

endorsed brand. Several research studies stressed the importance of this type of match up (for

example, Till and Busler, 1998; Martin, 1996; Till and Shimp, 1998).

Celebrity Credibility: (discussed in the TEARS model).

Celebrity Attractiveness: (discussed in the TEARS model).

Cost consideration: the cost of acquiring a celebrity's services is an important issue in the

advertising industry. Often, marketers have to pay top celebrities huge amounts of money for

their endorsement services. For example famous golfer Tiger Woods was estimated to earn

$54 million annually from endorsements (Ferguson, 2000). To put this in perspective, a person

with a relatively high annual income (say $200,000) would have to work (270) years to earn as

much as Tiger Woods' income in a single year from endorsements only.

Working ease/difficulty: represents how easy/difficult is to deal with an endorser. Some

celebrities are arrogant, tough, noncompliant or inaccessible. Many brand managers prefer to

avoid the 'hassle' of dealing with them.

Saturation factor: refers to whether an endorser is overexposed to the media (multiple brand

endorsement). If a celebrity endorses several brands, his/her perceived credibility will suffer.

The trouble factor: refers to the evaluation of the likelihood that a celebrity will get into troubles

after an endorsement (e.g. Drugs, rape, child-molestation …etc.) Due to these unfortunate

incidents, coupled with the high cost of endorsement, many brand managers and advertising

makers consider celebrities as high-risk endorsers (Blakeley, 2001). Some avoid celebrity

endorsement altogether, while others conduct thorough and careful scrutiny in selecting

celebrities.

1.5. Power of celebrity endorsement

Many people aspire to share values and lifestyles of celebrities as models of success. Often, they

seek to imitate, emulate, and even impersonate celebrities' behavior to enhance their self-

esteem, through identification with certain desirable images. Such behavior includes

imitating the way celebrities speak, dress, communicate, and most importantly, the brands

they choose. This process says more about what people hope to become than it does about what

they already are. This simply reflects the power of celebrity endorsement, which is behind the

main reason for employing celebrities to promote almost all kinds of products (Fraser and

Brown, 2002). This power is viewed in three aspects: attention which breaks through the

advertising clutter and makes the endorsed brand more noticeable to target audience; credibility,

which conveys a sense of trust for endorsed brands; and persuasion, which sends a persuasive

message to target audience to adopt the endorsed brand. One specialist maintained that appealing

to youth and other consumer audiences through celebrities could be a powerful marketing

strategy (Cuneo, 2002).

1.6. Previous research

Many studies described the positive effects of celebrities on consumer buying behavior,

such as the adoption of clothing styles, product choice, and health behaviors (for example,

Brown and Basil, 1995; Hoffner and Cantor, 1991). Research evidence revealed that the

perceived image of celebrity endorsers had a positive impact on product buying behavior (for

example, Goldsmith, Lafferty, and Newell, 2000; Mathur, Mathur, and Rangan, 1997,

Ohanian, 1990). One study indicated that people of all ages emulated the appearance and

behaviors of media celebrities they admired (Hoffner and Cantor, 1991). One study by Howard

(2002) showed that female respondents in the U.S.A. were more responsive to celebrity

endorsement (20%) than male respondents (16%). Frazer and Brown examined how audience

members identified with celebrities, and how this affected their personal lives. They concluded

that people selectively integrated the perceived values and behaviors they saw in celebrities they

admired and adopted them into their own lives (Frazer and Brown, 2002). Pappas (1999), who

examined the value of star power in an endorsement, indicated how a well-designed advertising

helped celebrities convert their star power into brand equity. One study stressed the advantage of

celebrity endorsement in enhancing product recognition and recall. The study maintained that

consumers were likely to take more notice of celebrity advertisements and improve their level of

product recall (Bowman, 2002).

On the downside, many studies were critical about the use of celebrity endorsement. One study

examined the potential risks of overshadowing endorsed products. The study explored the

common concern that consumers would focus their attention on the celebrity and fail to note the

endorsed brand itself (Erdogan, Baker, and Tagg, 2001). Wells and Prensky (1996), who

examined the issue of credibility, indicated that many consumers were skeptical of celebrities

who were paid to provide positive information about endorsed brands. Several other studies

criticized the credibility of celebrity endorsement (for example, Shanahan, 2001). One specialist

put it this way "A product pitched by a celebrity is a tale told by an idiot" (Feuer, 2002). Other

studies explored the issue of negative publicity associated with celebrity endorsers (For

example, Till and Shimp, 1998). One study showed that a company's stock price declined when

negative publicity hit a celebrity who endorsed one of its brands (Louie, Kulik, and Johnson,

2001). One critical study urged companies to stop using celebrities to drum up media coverage in

the absence of a solid story. Instead, the study recommended to use celebrities to intensify an

already strong issue-oriented message (Pepe, 2004). One critique, who commented cynically on

this view, had this to say "if you don't have anything meaningful to say, get a celebrity to say it"

(Grimm, 2001). One study examined the effectiveness of celebrity endorsement. The study

concluded that, ultimately, the appeal and effectiveness of the celebrity within the advertising

was still going to be determined by the quality of the creative idea behind the advertising

message (Iddiols, 2002). Similar other comments were made along this line (for example,

Howard, 2002).

Clearly, the issue of celebrity endorsement in advertising has received a significant attention in

the literature, particularly from a western perspective. As revealed in the literature review above,

many studies showed an overwhelming support of the use of celebrity endorsement in

advertising, while some studies were cautious as they expressed some concerns. Obviously, the

literature did not show consistence among research findings on this issue. At least, partly, this

can be justified by cultural differences as well as variations in the measuring instruments used.

Theoretically, at least, the universal role of CBA is mainly to elicit consumers' attention and

ultimately persuade them to buy endorsed products. Indeed, one may enjoy the attractive appeal

of advertisements, which feature models and other types of celebrities, but not necessarily

make the purchase or switch his/her loyalty upon endorsement. Despite the universal trend of

using celebrities in advertisements, however, the literature showed little reflection of how these

advertisements were perceived by consumers across cultures. To the best knowledge of the

author, no previous studies were conducted on this specific issue within the Indian culture, in

particular. This makes the current research the first of its nature to focus attention on the specific

issue of CBA in India. In that, it is considered an extension to previous research in other areas of

advertising in India. In general, few studies explored the issue of advertising in India, focusing

on different other issues. For example, Alsmadi (2004) found that advertising was generally

inconsistent with consumer culture in Indian due to the use of unfamiliar vocabulary and

unacceptable women portrayal. Other studies supported these findings (Alsmadi, 2005, Mansour,

1998). One comparative study between the Arab world and the U.S. examined the effects of

cultural differences regarding the advertising material. The study found that as high as 83% of

Arabic advertisements featured women decently compared to only 29% of U.S advertisements

(Kiran and Fahad, 2000).

1.7. Research hypotheses

The current study draws on the literature and explores CBA from the perspective of the Indian

consumer, focusing on different aspects (indicated earlier). Based on the nature of the current

research problem, given the findings indicated in the literature, the following hypotheses are

formulated:

H1: Indian consumers are likely to consider CBA as an attractive advertising.

H2: CBA is likely to have a positive influence on consumers' brand choice behavior.

H3: Indian consumers are likely to believe that the celebrity-product matchup is important.

H4: There are no significant differences in consumers' brand-choice behavior (α≤0.05), which is

influenced by CBA, due to demographic characteristics (sex, age and income).

Chaper-3RESEARCH DESIGN

This study is based on a field work, of which population included all north Indian residents

This population is generally considered homogeneous in terms of age group and education level.

That is, respondent age and education were assumed relatively fixed this population. This paved

the way to focus on other demographic variables in this study, such as sex and income.

1.8. Sampling procedures

This study used a convenience sample of 35 students contacted through telephone, personal

interview and mail. Originally, 50 copies of a questionnaire were distributed to respondents,

using drop-off approach (Aaker et al, 2004). According to this method, the data collection team

interviewed respondents, who showed an interest to participate in the study and briefed them

about the purpose of the study. Afterwards, they hand delivered the questionnaires to them to fill

out, followed by an arrangement to collect the completed questionnaires. The usable sample was

31 respondents after the process of data editing and cleaning. Accordingly, the response rate was

(70%).

1.9. Research instrument

To collect the required data, a self-administered questionnaire was designed to measure

consumer attitudes towards CBA. The questionnaire included three main sections relevant to the

dimensions of the study. The first section was intended to measure consumer attitudes towards

the attractiveness of CBA (Dimension 1). The second section was designed to assess the

influence of CBA on consumers' brand choice behavior (Dimension 2). The third section was

prepared to measure consumer attitudes towards the celebrity-product match up (Dimension 3).

The questionnaire also contained questions on the demographic characteristics of respondents

(sex and income). Annexure shows the three sections with the relevant statements which

measure each dimension.

A five-point Likert scale was used for measurement. The scale consisted of five levels of

agreement, running from strongly disagree up to strongly agree (1=strongly disagree,

2=disagree, 3=neutral, 4=agree and, 5=strongly agree). The measurement logic was based on

the fact that the higher the attitude mean score the more favorable the attitude, and vice versa.

The questionnaire (Arabic version) was validated through a study, which included academics,

specialists and, advertising practitioners. Their comments were considered in the final version.

The reliability of the measuring instrument was evaluated by Cronbach Alpha analysis. The test

output of reliability analysis revealed a correlation value of (α = 0.84).

1.10. Statistical treatment

Several statistical techniques were used at the analytical stage, including Frequency analysis,

Descriptive analysis, and Analysis Of Variance (One Sample t- Test, One-Way ANOVA). The

first three hypotheses were tested by One Sample t- Test, based on the value of (3) [scale

midpoint]. The higher the value the more favorable is the attitude and vice versa. The fourth

hypothesis was tested by One-Way ANOVA to explore mean differences among sex and income

sub-groups. The testing for mean differences was based on (0.05) significance level as a decision

rule (α≤0.05). We accept statistical differences if the significance level is (0.05 or less), and vice

versa.

Chapter-4DATA ANALYSIS

Research findings in Tables (1 through 3) show descriptive analysis (mean scores and standard

deviations) and agreement levels for attitude statements regarding the three dimensions of the

study, respectively. The findings also show results of One Sample t-Test for each dimension,

taken as a whole. The test value was (3), which is the scale midpoint (five-point Likert scale).

Further analysis (Tables 4 and 5) examine differences among respondent demographics (sex, age

and income), using Independent- Samples t-Test and One-Way ANOVA.

1.11. Attraction of CBA (Dim. 1)

The research findings for the first dimension (Table 1) revealed that Indian respondents were

interested in CBA, as the majority believed that it was generally attractive. The analysis in the

Table revealed that the overall attitude mean score of respondents, which measures this

dimension as a whole, was above the scale midpoint (3.46), with the standard deviation showing

dispersion around this mean.

One-Sample t- Test Test Value = 3 t-critical Result

1.622Mean Std.

Deviationt-sample

Advertising, which uses celebrities, attracts my attraction.

3.32 1.102 1.666 Accepted

Advertising, which uses celebrities, is popular.

3.71 1.131 3.493 Accepted

Advertising, which uses celebrities, is more attractive

3.61 .989 3.450 Accepted

Advertising, which uses celebrities, is enjoyable

3.26 1.094 1.313 Rejected

Attractive celebrities in Advertising make me pay more attention to product details

3.39 1.283 1.680 Accepted

Dimension 1 as whole(H1) 3.46 1.120 5.075 Accepted

Table-1

As shown in the Table, four statements for this dimension had mean scores above the scale

midpoint, which clearly indicated positive attitudes towards attractiveness of CBA. These results

were further substantiated by One Sample t- Test, which revealed that the overall mean

difference, for the dimension as a whole, was statistically significant (α =0.000), at (α≤0.05),

with high t-value (t=5.075). This means that the mean score of Indian respondents, who agreed

with the attitude statements as a whole, was significantly different from that for those who

disagreed. These findings support the first hypothesis of the study (H1), which states that

“Indian consumers are likely to consider CBA as an attractive advertising”. Therefore, we can

accept this hypothesis. For example, one study concluded that people selectively integrated the

perceived values and behaviors they saw in celebrities they admired and adopted them into their

own lives (Frazer and Brown, 2002).

1.12. Influence of CBA on brand choice (Dim. 2)

Dimension (2) measures the influence of CBA on consumer’s brand choice behavior. The research

findings for this dimension (Table 2) unveiled that CBA did not seem to have much influence on Indian

consumers in terms of their brand choice behavior, despite their positive view of CBA’s attractiveness

indicated in the analysis of the first dimension.

One-Sample t- Test Test Value = 3 t-critical

Result 

1.622

Mean Std. Deviation

t-sample

CELEBRITIES helps me make the buying decision 2.29 1.270 -3.111 Rejected

CELEBRITIES helps me remember the endorsed brand during shopping

3.19 1.376 .783 Rejected

CELEBRITIES increases acceptance of endorsed brands

3.42 1.148 2.034 Accepted

CELEBRITIES increases my awareness of endorsed brands.

3.29 1.160 1.393 Rejected

Dimension 2 as Whole 3.04 1.305 .413 Rejected

Table-2

Though mean score of majority of statements is above 3 which suggests celebrities may have

influence consumer brand choice .Further analysis statements with single tailed t-test value >3

shows majority of statements rejected. The resulting overall mean score value was midpoint

(3.04), with the standard deviation showing dispersion around this mean. However, the analysis

of One Sample t-Test showed that the overall mean difference, for the dimension as a whole, was

statistically significant (α =0.000), at (α≤0.05), with t-value (t=.413). This means that the mean

score of Indian respondents, who disagreed with the attitude statements as a whole, was

significantly different from that for those who agreed. In that, these findings do not seem to

support the second hypothesis (H2), which states that “CBA is likely to have a positive

influence on consumers' brand choice behavior”. Therefore, we cannot generally accept this

hypothesis. Although many previous studies stressed the advantage of celebrity

endorsement in enhancing product recognition and recall (Bowman, 2002), some studies were

critical about the use of celebrities in advertising as consumers would focus their attention on the

celebrity and fail to note the endorsed brand itself (for example, Erdogan, Baker, and Tagg,

2001).

1.13. Celebrity-product match up (Dim. 3)

The analysis of the third dimension (Table 3) revealed that Indian consumers are likely to

appreciate the importance of match-up between celebrities and the products they endorsed in

television advertising.

One-Sample t- Test Test Value = 3 t-critical

Result

1.622Mean Std.

Deviationt-

sampleCelebs influence brand image 3.58 1.177 2.747 AcceptedProper matchup between brand and celeb increase trust

3.45 1.121 2.244 Accepted

Dimension 3 as whole 3.52 1.141 3.560 AcceptedTable-3

The figures in the Table showed that the overall attitude mean score of respondents, which

measures this dimension as a whole, was (3.52). Obviously, the majority believed that the

character of a celebrity in advertising was likely to have an influence on the image of the

endorsed brand (3.58) and that the more meaningful the match-up between the celebrity and the

endorsed brand, the greater the trust in the brand (3.45). Clearly, the majority of respondents

seemed to have positive attitudes towards the importance of the perceived relationship

between celebrities and the brands they endorsed. These findings were further substantiated

by One Sample t-Test, which indicated that the overall mean difference, for the dimension as a

whole, was statistically significant (α=0.000), at (α≤0.05), with t-value (t=3.560). This indicated

that the attitude mean score of respondents, who agreed with this dimension as a whole, was

significantly different from that for those who disagreed. These findings support the third

hypothesis (H3), which states that “Indian consumers are likely to believe that the celebrity-

product matchup is important”. Therefore, we can accept this hypothesis. These findings were,

however, consistent with conclusions of many previous studies. For example, Kamins (1990)

emphasized importance of considering the appropriate match on an attractiveness basis between

a celebrity and product type. Further, the study explained that the characteristics of a celebrity

were likely to interact with the nature of the advertised product. Shimp (2003) also shared similar

views on this issue.

1.14. Demographic variables

The analysis in this section explores potential differences in consumers’ brand choice behavior

(D2) due to demographic variables (sex and income). The purpose of this analysis is to test the

fourth hypothesis of the study (H4), which states that “there are no significant differences in

consumers' brand-choice behavior (α≤0.05), which is influenced by CBA, due to demographic

characteristics (sex and income)”. Clearly, the analysis focuses on (D2) as it measures the direct

effect of CBA on brand choice behavior.

1.14.1. Sex

Sex Mean Std. Deviation

Female 2.6964 .57327Male 3.3382 .99586Total 3.0484 .88133

Table-4a

ANOVA Table Sum of df Mean F Sig.

Squares SquareBetween Groups (combined)

3.162 1 3.162 4.554 .041

Within Groups 20.140 29 .694    

Total 23.302 30      

Table-4b

To deal with fourth hypothesis mean, standard deviations and F-values were calculated to

examine differences in consumers' brands choice behavior among male and female groups (Table

-4b). According to the mean scores in the Table, male respondents were more influenced by

CBA than females did, as male mean score (3.33) was greater than that of females (2.69). Also

F- calculated is greater than F-critical. Hence it’s concluded that there is significance difference

between brand choice behavior of males and females

1.14.2. Income

To test the fourth hypothesis (H4), in terms of income, mean scores, standard deviations, and

analysis of variance (ANOVA) were used to evaluate differences in consumers' brand choice

behavior among income brackets of respondent, as shown in Table .

Income Mean Std. Deviation

Below 2 Lac 2.7708 .669622-5 Lac 3.3269 .903615-10 Lac 2.9500 1.27965Above 10 Lacs 3.2500 .Total 3.0484 .88133

Table-4c

ANOVA Table Sum of Squares

df Mean Square

F Sig.

Between Groups (combined)

3 .674 .855 .476 .193

Within Groups 27 .788      Total 30        

Table-4d

The research findings, presented in the Tabl-4d, showed that there were no significant

differences in consumers’ brand choice behavior due to income level, as the F-value was (.476),

which was not statistically significant at the test level of (α≤0.05). Therefore, we can accept the

fourth hypothesis (H4), in terms of income. Clearly, the findings indicated that the influence of

CBA on consumers’ brand choice behavior was relatively similar among the three income

groups (low, middle, and high income). That is, the three income groups were consistent in terms

of their perception of the effect of CBA on their brand choice behavior. In general, CBA did not

seem to have much influence on Indian consumers in terms of their brand choice behavior.

1.14.3. Age

To test the fourth hypothesis (H4), in terms of income, mean scores, standard deviations, and

analysis of variance (ANOVA) were used to evaluate differences in consumers' brand choice

behavior among income brackets of respondent, as shown in Table

Age Mean Std. Deviation

Below 18 2.0000 .0000018-25 3.2031 .7594926-40 2.8958 .93819Above 40 4.5000 .Total 3.0484 .88133

Table-4e

ANOVA Table Sum of Squares

df Mean Square

F Sig.

Between Groups (combined)

4.968 3 1.656 2.439 .086

Within Groups 18.335 27 .679    Total 23.302 30      

Table-4f

The research findings, presented in the Table-4f, showed that there were no significant difference

in consumers’ brand choice behavior due to income level, as the F-value was (2.439), which was

not statistically significant at the test level of (α≤0.05). Therefore, we can accept the fourth

hypothesis (H4), in terms of age. Clearly, the findings indicated that the influence of CBA on

consumers’ brand choice behavior was relatively similar among the four age groups. That is, the

four age groups were consistent in terms of their perception of the effect of CBA on their brand

choice behavior. In general, CBA did not seem to have much influence on Indian consumers in

terms of their brand choice behavior

1.1. Linking Brand & celebrity Recall ( Q1 &2)

Celeb Recall * Brand Recall * Sex * Education Cross tabulation

Education Sex Brand Recall Total

NO Yes

Below 10th

Male Celeb Recall

NO 2 1 3

Total 2 1 3

10-Grad female Celeb Recall

NO 3 0 3

Yes 0 2 2

Total 3 2 5

Male Celeb Recall

NO 2 2 4

Yes 0 2 2

Total 2 4 6

Post Grad female Celeb Recall

NO 4 2 6

Yes 0 3 3

Total 4 5 9

Male Celeb Recall

NO 3 0 3

Yes 0 5 5

Total 3 5 8Table-5

Using responses for question 1 & 2 a cross tab is formed for correlating celeb and brand recall

along dimension of sex and age. The question were aimed to find top of mind recall

1. It can be seen that none of male below 10th standard education is able to recall the celebrity or

the advertisement featuring it.

2. Among 10-Graduate people 40% females and 33% males were able to rightly recall both

celebrity and brand. This shows a good impact of celebrity-brand relationship among this

segment

3. In segment of above postgraduate 30% females and 63.5% males were able to rightly recall

the celebrity-brand. So while designing promotion for targeting this segment celebrity

becomes most effective.

3.1. Celebrity Brand-Fit( Q3)

Celeb Linkage * Age * Sex CrosstabulationSex Age Total

Below 18

18-25 26-40 Above 40

female Celeb Linkage

Baichung Bhutiya

  3 3   6

John Abrahim

  2 0   2

Kapil Dev

  5 0   5

Priety Zinta

  0 1   1

Total   10 4   14Male Celeb

LinkageBaichung Bhutiya

2 4 3 1 10

John Abrahim

0 1 4 0 5

Kapil Dev

0 1 1 0 2

Total 2 6 8 1 17Table-6

Question-3 was aimed to see how consumers see celebrity-brand fitness. In both males and

females majority has identified Baichung as preferable endorser for Sports category followed by

Kapil dev who is again from sports field and John Abrahim as he is seen as a macho-men of

Indian film industry. Though Preity Zinta instead of huge fan following is discarded. The results

are consistent across age group.

3.2. Negative Publicity

Effect of scandals * Income * Sex CrosstabulationSex Income Total

Below 2 Lac

2-5 Lac 5-10 Lac

10+ Lacs

female Effect of scandals

No 3 3 0   6Yes 3 4 1   8

Total 6 7 1   14Male Effect

of scandals

No 3 1 1 0 5Yes 3 5 3 1 12

Total 6 6 4 1 17Table-7

The question was put to check the effect of negative publicity of celebrity on band 67% of

respondent have stated they will stop consuming the brand which is quiet a high percentage and

this can severely damage the brand reputation. If specifically seeing the male and female

behavior it again comes out to be same across different income levels as they don’t want to

associate with something bad.

3.3. Overexposure

Multibrand Association * Income * Sex Crosstabulation

Count

Sex Income Total

Below 2 Lac

2-5 Lac

5-10 Lac

Above 10 Lacs

female

Multibrand Association

Confused 1 0 0 1

Definitely No 4 4 1 9

Definitely Yes 1 3 0 4

Total 6 7 1 14

Male Multibrand Association

Confused 1 0 1 0 2

Definitely No 4 3 2 1 10

Definitely Yes 1 3 1 0 5

Total 6 6 4 1 17Table-8

This question was designed to test the effect of overexposure of celebrity with various brands.

Results clearly show that such a factor dilutes image of celebrity and she ends-up as a mere

character in advertisement and consumer doesn’t consider her word of mouth results are same for

males and females and across the income groups.

Chapter-5CONCLUSION & IMPLICATIONS

Despite the conflicting results found in the literature on the use of celebrities in advertising, this

research revealed that Indian consumers were generally positive about many aspects of this

dynamic issue in advertising strategy. It is evident from the findings that consumers were

impressed by the visual attractiveness of advertising messages, which used celebrities to appeal

to target audience. They also showed an interest in the relationship between celebrities and

endorsed products in advertising. They seemed to believe in the importance of the match-up

between the two. Yet, the majority did not seem to view this kind of advertising convincing

enough, in principle, to affect their brand choice behavior. But this should not overshadow

the whole view, as nearly one third of respondents were subject to the effect of CBA regarding

their brand choice behavior, and almost one fourth were neutral on this matter. One possible

explanation behind this phenomenon could be the way the advertising message was designed. In

particular, the way celebrities were portrayed was not, perhaps, convincing enough to appeal to

Indian consumers. One study, which clearly supported this conclusion, showed that the

advertising problem in Asia was not so much the celebrities, but the lack of imagination in the

way they were used (Bowman, 2002). Alternatively, the choice of celebrities was not possibly

able to match up with consumers’ expectations. In either way, this may, however, require a

rethinking or reconsideration to the way celebrities were projected in advertising, or even

chosen, within the context of the Indian culture. In principle, this calls for a better understanding

of Indian consumer behavior, possibly through market research. This will probably lead to a

more convincing and acceptable form of celebrity endorsement in television advertising in India.

It is, therefore, hoped that Indian advertising makers and specialists in the advertising industry

will draw on these conclusions to maximize the benefits of using celebrities in advertising,

taking consumer culture into consideration

1.15. Recommendations

The current research findings suggest that advertising makers and specialists are highly

recommended to improve their perception of the role of celebrities in the advertising strategy in

India. Obviously, this requires further investigation to understand the extent to which Indian

consumers believe what celebrities say about products, including the perceived credibility of

such endorsement. Moreover, it will be helpful if celebrities can be encouraged to participate in

decision-making at all levels of the advertising media and provide valuable inputs to the

process. Undoubtedly, this will improve advertising effectiveness, and consequently increase

potential revenues for Indian advertisers.

More research will have to be made to explore more specific issues of celebrity endorsement in

television advertising within the context of the Indian culture. For example, future research will

have to re-examine the credibility issue of celebrities from the customer’s perspective and

explore how celebrities are positioned in the consumer’s mind. Moreover, future research will

have to investigate the ideal characteristics that best match desirable celebrities, and

consequently make their endorsement more convincing to the Indian consumer.

1.16. Research limitations

This study encountered two limitations:

1. In the literature review, the previous studies that specifically addressed the issue of CBA

were all western-based. In India, in particular, no previous studies were found on this specific

issue. This makes the current research the first of its nature in India. Even on the general issue of

television advertising, only few studies were found.

2. The empirical work was based on a student sample. Clearly, it can be understood that

generalization of results is limited to the student population, not the whole market. In addition,

the sample size was relatively small (31) due to limited resources. Obviously, this adds to the

problem of generalization.

ANNEXURE-Questionnaire

Section-1

Q1: Rate the following on a scale of 1to 5 where ((1=strongly disagree, 2=disagree, 3=neutral, 4=agree and, 5=strongly agree).

a. Advertising, which uses celebrities, attracts my attraction.b. Advertising, which uses celebrities, is popular.c. Advertising, which uses celebrities, is more attractive.d. Advertising, which uses celebrities, is enjoyablee. Attractive celebrities in Advertising make me pay more attention to product detailsf. CELEBRITIES helps me make the buying decisiong. CELEBRITIES helps me remember the endorsed brand during shoppingh. CELEBRITIES increase acceptance of endorsed brandsi. CELEBRITIES increase my awareness of endorsed brands.j. The character of a celebrity influences the image of the endorsed brandk. The more meaningful the match-up between the celebrity and the endorsed brand, the

greater the trust in the brand

Q2: ………………. is the famous celebrity singing La...lalala...la...la la la la...! for a soap advertisement.

Q3: La...lalala...la...la la la la...! is a jingle of which brand of soap?

Q4: Who would you think is an ideal promoter for sports shoes?

a. Preity Zintab. Kapil Devc. JohnAbrahimd. Baichung Bhutiya

Q5: If your favorite soft-drink brand appoints Shakti Kapoor as its brand ambassador, will you still consume it?

a. Yesb. No

Q6: If your favorite celebrity endorses brands like Teg-Huier, Parker, Emami etc. and now decides to promte Priyagold biscuits (which you know is a sub standard brand) then, will you consider his word of mouth for product which a premier brand.

a. Definitely Yes

b. Definitely Noc. Confused

Section -2

Customer demographics

1. Sex

a. Male b. Female

2. Age: a) Below18 b) 18-25 c) 26-35 d) 36-50 e) 51 and above

3. Qualification:

a) Illiterate b) Xth or Less c) Xth - Graduation d) Graduation/Higher

4. Income Level

a) Below INR 2 Lacs b) INR 2.0-5.0 Lacs c) INR 5.0-10.0 Lacs d) Above 10.0 Lacs

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