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1
CHAPTER – 1
INTRODUCTION TO CELEBRITY ENDORSMENT WITH RESPECT TO
FMCG PRODUCTS MARKETED IN INDIA
1.1 Introduction to the concept of celebrity
Celebrities are people who enjoy specific public recognition by a large number of
certain groups of people. They have some characteristic attributes like attractiveness,
extraordinary lifestyle or special skills that are not commonly observed. Thus, it can
be said that within a society, celebrities generally differ from the common people and
enjoy a high degree of public awareness.
Among the classic forms of celebrities are actors, models, television-serial
stars, sports person etc. Further “celebrity” refers to “an individual who is known to
the public, such as actors, sport figures, entertainers etc. For his or her achievement in
areas other than that of the product class endorsed” (Friedman and Freidman, 1979).
All media have become stuffed with celebrity. The newsreader on TV, the magazine
editors and the lead journalists have become celebrities too. TV commercials or print
advertisements that feature stars and appear in this media environment fit in naturally
with it, so it's hardly surprising that up to 20% of all advertising employs celebrities.
All the evidences suggest that these campaigns are very effective in promoting the
corporate, product and service brands with which they are aligned. (Hamish Page.10)
They are usually known to the public for their accomplishments in areas other than
the product endorsed by them. (Friedman & Friedman 1979).
According to Marshall (1997), celebrities are celebrated individuals that are
unique, in some way, from the average citizen. Boorstin (1961) defines a celebrity as
someone “who is well-known for their well-known-ness”. According to Fredman,
Termini and Washington (1976), a celebrity is sometimes a sports figure, actor,
comedian or other type of entertainer. According to Miciak and Shanklin (1994), a
celebrity can be an animated character like Fred Flinstone, or an animal. In the Indian
context, this stands true for classic forms of celebrities such as actors like
Salmankhan, Shah Rukh Khan, Cricketer like Sachin Tendulkar and entertainers like
Maliaka Arora Khan, but also for less obvious groups such as businessmen like the
Tatas, Malayas & Ambanis or politicians like Rahul Gandhi (Schlecht 2003).
However, unlike heroic figures, the modern celebrity may not have achieved anything
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exceptional except, merely, public attention and a product of media representation
(Tuner, 2004). This is evident in contestants from reality shows, such as Big Brother
and Survivor. According to Tuner (2004) fame is developed, not by the achievement
of great things, but, by differentiating one‟s personality from those of their
competitors. Consequently entertainers lead the ranks of celebrity “because they are
skilled in the marginal differentiation of their personalities” (Boorstin, 1961). One of
the “know all” resources that keep our society up-to-date about the latest celebrity
news is the tabloid press. As noted by Marshall (1997), the tabloid press gives us an
outrageous twist on the connotation of the celebrity because it presents the general
public a possibility that these “unique talents,” that makes one a celebrity, are
vulnerable. As a result, these public individuals are subject to the ups and downs in
their career, and ultimately their life. As a result, these ups and downs can influence
the brand or product that has been endorsed by a particular celebrity.
According to McCracken (1989), the success of a celebrity endorsement has to
do with the cultural meaning of the celebrity endorser. These meanings vary across
status, class, gender and age. In addition, unique celebrity personalities and lifestyles
can influence the success of an endorser depending on cultural norms. (McCracken,
1989). These and other source characteristics are significant to advertising research
and, more specifically, research that focuses on the effect of celebrity endorsements.
In the view of (Phalang ing, Fumitaka Furuoka, 2007) the word “celebrities”
promises excitement, amusement and fun. They are constantly the focus of attention
of thousands of people. People are curious about their lifestyles, secrets, and
personalities. They even want to know what products the celebrities usually consume.
For marketers, it offers a potential to make profit.
1.2 Introduction to the concept of Non-Celebrity
Every advertisement does not require a celebrity to endorse it. There are many
advertisements which have never felt the need of doing so. For example, Fevicol,
Vim, Lifeboy, Amul, Iodex, Vicks-veporub etc. Rather,there are a few noted ads
where the owner is seen endorsing their own commodity. Such as Mahashay
Dharampal of MDH Masala and Rajeev Reddy of Country Club. Although
companies may spend ample time and energy finding a celebrity whose image
corresponds well with their brands, endorser concerns often do not end there.
Problems can arise when the famous person is involved in incidents that change, or
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even damage, his or her reputation. These circumstances, referred to here as "negative
events" can range widely from accidents that hinder a celebrity‟s ability to perform to
exposure for substance abuse.
When an organization cannot find a celebrity that is in agreement with the
organization‟s brand image, they can create their own “celebrity” endorser, i.e. a
created spokesperson, either real people acting out a role or animated/imaginary roles.
A created spokesperson has some of the following advantages (Erdogan, 1999and
Tom et al, 1992). Created spokespersons have a higher degree of control and are less
costly than celebrities and marketers have the possibility to create a better fit between
the product and the endorser. The endorser‟s longevity will be for as long as the
method is successful for the organisation, whereas “real” celebrities have limited
longevity. The same created spokesperson can be used indefinitely and adapted to
changing circumstances. According to Tom, Clark, Elmer, Grech, Masetti and
Sandhar (1992) the created spokesperson‟s effectiveness is in establishing a lifelong
link with the product.Tom et al (1992) suggest that marketing professionals should
make use of created endorsers when the advertising objective is to create a long-term
link between the endorser and the organisation. It should also be noted that celebrities
would be the better choice when the organisation is interested only in establishing a
short-term memorable link.
In the Indian context, very few of the participants have actually bought
products endorsed by celebrities. Influence on purchase was observable only in the
18-25 age group. Even when products were bought, it was only after imperceptible
differences between the brands existed or the products were low-involvement and
inexpensive such as sodas (Somdutta Biswas, Mahmood Hussain, Kathleen ODonnell,
2009). Participants across all age groups conceded that they bought products endorsed
by celebrities when they were younger in their teens. All believe that celebrity
endorsement help bring the product to the consideration set of brands (Somdutta
Biswas, Mahmood Hussain, Kathleen ODonnell, 2009). In a set of laboratory studies,
Till and Shimp (1998) find that negative information about a celebrity can damage
product evaluations through the associative link between brand and celebrity. Because
negative events occur, companies must decide how to deal with affected celebrities.
Over the years, non-celebrity based advertising had built a sharply fixed personality
for brand Perk-fun, mischievous, bubbly and simply “perky”. With one of the original
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Perk models, Preity Zinta, who embodied very similar values, has only further
strengthened the brand‟s imagery.
1.3 Celebrities from India
The late '80s saw the beginning of celebrity endorsements and presence in advertising
in India. Hindi film and TV stars as well as sportspersons began encroaching on a
territory that was, until then, the exclusive domain of models. There was a burst of
advertising, featuring stars like Kavita Chaudhary (Lalitaji-Surf), Deepika Chikhalia
(Nirma Detergent Soap), Kapil Dev (Palmolive shaving Cream) and Sunil Gavaskar
(Dinesh Suitings).
In 2012, Salman Khan had a year like no other. He set the box office on fire
with „Ek The Tiger‟, raking in 198 crore in gross collections across the country. It
was the largest box office hit that year by a wide margin. Salman also ratcheted up his
popularity with the Being Human Foundation that won him the goodwill of millions
of fans. Shah Rukh Khan earned nearly ₹150 crore from his endorsement of 23
brands.1 The list of Forbes, which includes movie actors, television stars, authors, film
directors, musicians, singers, sportspersons, comedians and models are compiled on
the basis of both money and fame. Fame is defined as visibility in print, television,
and online, plus social media power, which was by looking at each celebrity‟s
presence on Facebook and Twitter. Most celebrities are between 30 and 50 years old.
However, that hasn‟t prevented a clutch of 12 celebrities under 30, like Saina Nehwal,
Virat Kohli, Anushka Sharma, Mary Kom and Shreya Ghoshal, from breaking into
the top 50. There‟s only one musician who has managed to break into the top 20: AR
Rahman‟s soaring popularity isn‟t just an affirmation of his skills as a world-class
musician, but also a function of his growing presence on social media. Rahman has
more than 10 million Facebook fans. This means that every post of his holds the
potential to go viral almost instantly.
http://forbesindia.com/article/2013-celebrity-100/shah-rukh-khan-tops-forbes-india-celebrity-100-list-second-time-
in-a-row/36741/1
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1.4 Major categories of celebrity
Table: 1.1 categories of celebrity
Category Famous Indian celebrities (Examples)
Sport stars /Athletes Sachin tendulkar (Cricketer), Milkha Singh (Athlete),
Marykom (Boxer), Sania Mirza (Tennis), Geet shethi
(Billiard) Abhinav Bindra (Shooter), Sania Nehval
Film stars Amitabh bachchhan, Shahrukh khan, Salman Khan, ketrina
kaif, Rekha, Rajnikant
Film Producers Ekta Kapoor, Subhash Ghai, Mahesh Bhatt, Prakash Jha
Television stars Kapil sharma ,Ronit Roy, Sanya Irani, Ankita Lokhande,
Hiten Tejwani, Vivin Dsena, Dipika Samson, Ram kapoor,
Writer/Poet/ Literary Javed Akthar, Chetan Bhagat, Shiv Khera, Gulzar, Prasoon
Joshi
Artists/Cartoonists R.K.Laxman, Mario Miranda, M.F. Hussain, Satish
Acharya
Chefs Sanjeev Kapoor, Tarla Dalal, Harpalshing Sokhi
Singers/Rappers Lata Mangeshkar, Kishorkumar, Mukesh, Jagjit singh, YO
YO Honey singh, Arijit, Sonu Nigam
Musicians A.R. Rehman, Vishal Bhardwaj, Shankar-Ehsaan-Loy
Entrepreneurs/ Business
tycoons
Azim Premji, Narayan Murti, Ratan Tata, Ambani
brothers, Kumar manglam Birla, Vijay Malya,
Fashion Models Yami Gautam, Rithvik Dhanjani, Malaika Arora Khan
Fashion Designers Manish Malhotra, Ritu Beri, Rohit Bal, Tarun Tahiliani
Politicians Narendra Modi, Laloo Yadav, Arvind Kejrival, Sonia
Gandhi, Jailalitha
Religious leaders Baba Ramdev, Shri Ravishankar, Satya sai baba
Media persons Tarun Tejpal, Karan Thapar, Rajddep Sardesai, Ravish
Kumar, Rajat Sharma
Social activists Anna Hazare, Megha Patker, Madhu Kishwar
Source: compiled by researcher.
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1.5 Top Indian Celebrities
As per the Forbes India Celebrity 100 Special Issue which was published in the year
of 2013, The Celebrity 100 measures money and fame, which includes estimated
entertainment related earnings from October 1, 2012 to September 30, 2013, and how
visible they are on print, television and internet (including social media).
Table1.2: Top 10 celebrities of India by Forbes Celebrity – 20132
Name of Celebrity Rank (2013) Earnings ( Crore)
Shah Rukh Khan 1 220.5
Mahendra singh Dhoni 2 155.32
Salman Khan 3 157.5
Sachin Tendulkar 4 94.32
Amitabh Bachchan 5 147.5
Akshay Kumar 6 118.13
Virat Kohli 7 57.31
Ranbir Kapoor 8 68.6
Katrina Kaif 9 63.75
Hritik Roshan 10 62.5
(Source:forbesindia.com)
Shah Rukh Khan retained his number one spot in the 2nd
edition of Forbes India‟s
Celebrity 100 List, a ranking of India‟s most powerful celebrities. Shah Rukh,
continues to be on the top on the back of his earnings, even though star cricketers
scored above him on the fame rankings.
Mahendra Singh Dhoni (2), with his immense popularity and endorsement
deals, moved up from the third spot last year, switching ranks with actor Salman Khan
(3), who slipped to third place. They are followed by Sachin Tendulkar (4), who
moved up from No (6) and Amitabh Bachchan (5) who retained his position,
completing the top five on the list. Film actors - all male, with the exception of
Katrina Kaif (9) dominate the Top Ten in 2013. Cricketer Virat Kohli (7) has already
achieved more on the cricket field than most do in their entire careers. He has also
2 http://forbesindia.com/article/2013-celebrity-100/shah-rukh-khan-tops-forbes-india-celebrity-100-list-
second-time-in-a-row/36741/1
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brought to the sport an aggression that promises to transform the team, and for the
better. That attitude coupled with remarkable skill has made this man an
unconventional role model and a marketer‟s delight.
Cricket is the closest competitor to Bollywood and fame index is testimony to
that. Kohli, incidentally, is the youngest celebrity to make it to the top 10 this year.
There have been two exits from the top 10 this time. Kareena Kapoor and Virendra
Sehwag make way for Ranbir Kapoor and Hrithik Roshan. Sehwag has not just lost
out on the frame count (a drop from 4 to 7), his earnings also fell; Kareena‟s earnings
eroded by ₹17 crore, while her fame rank came down to 23 from 13 last year. While
the Forbes India Rich List focuses on net worth, the Celebrity 100 list is arrived at by
measuring money (earnings estimates) and fame. The list includes movie actors,
television stars, sportspersons, authors, film directors, music directors, singers and
stand-up comedians. Their gross pre-tax earnings are combined with their fame scores
to arrive at the Forbes India Celebrity 100 List given in annexure-2.
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1.6 Popular Celebrities from Bollywood
There is one rating company works for giving ratings of celebrities in India. TIMES
Celebex is the most robust and factual ratings index for the Bollywood celebrities as it
is based on comprehensive data and hard facts rather than the subjective perception of
a jury alone. Data is sourced from credible external agencies that service the media
industry and collated from 60+ publications, more than 250TV channels, more
than10000 cinema halls and millions of users across the Internet.3
Table1.3: Rank of Top 20 Bollywood celebrity for month of April-2014
Rank Male Actor Score Female Actor Score
1 Amitabh Bachchan 42.0 Alia Bhatt 45.5
2 Arjun Kapoor 39.5 Deepika Padukone 39.0
3 Salman Khan 39.0 Katrina Kaif 31.0
4 Shah Rukh Khan 34.0 Nargis Fakhri 29.0
5 Ranbir Kapoor 30.0 Kareena Kapoor 28.5
6 Varun Dhawan 28.5 Ileana Dcruz 27.0
7 Akshay Kumar 22.0 Kangana Ranaut 26.0
8 Saif Ali Khan 17.5 Sonakshi Sinha 25.0
9 Aamir Khan 17.0 Priyanka Chopra 24.0
10 Farhan Akhtar 15.5 Aishwarya Rai 22.0
11 Hrithik Roshan 15.0 Sunny Leone 21.0
12 Abhishek Bachchan 14.5 Madhuri Dixit 19.0
13 John Abraham 13.0 Sonam Kapoor 18.5
14 Vir Das 12.5 Anushka Sharma 16.5
15 Yo Yo Honey Singh 12.0 Hema Malini 14.8
16 Ranveer Singh 11.5 Kajol 14.5
17 Ajay Devgn 11.3 Yami Gautam 14.0
18 Ronit Roy 11.1 Vidya Balan 13.5
19 Rajeev Khandelwal 11.0 Shilpa Shetty 12.5
20 Boman Irani 10.5 Karishma Kapoor 12.0
(Source: www.timescelebex.com)
The ranking is based on celebrity‟s popularity, performance and visibility. The „T
Score‟ is calculated by measuring various parameters ranging from Box Office
performance to PR buzz to online following and more.
Key determinants of the T Score-
Box Office Returns and Recognition
Ability to stay in the news across print and TV
Visibility through Brand Endorsements on Print and TV
3 http://timescelebex.com/ (May-2014)
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Promotions of their upcoming movie release on Print and TV
Popularity among fans across mediums including the Internet and Social
Media
1.6.1 What creates a buzz about celebrities - Leading Male actors
Arjun Kapoor: 2 States, buzz around Tevar, 1 brand endorsement
Salman Khan: Guest appearance in O Teri, buzz around his upcoming films
Kick and Prem Ratan Dhan Payo, 7 brand endorsements
Shah Rukh Khan: Buzz around his upcoming films Happy New Year, Fan
and Raees, performing at the opening ceremony of IPL in UAE, 11 brand
endorsements
Ranbir Kapoor: Buzz around his upcoming films Bombay Velvet, Jagga
Jasoos and Roy, reports of him playing Sanjay Dutt in a biopic on the actor, 6
brand endorsements
Varun Dhawan: Main Tera Hero, buzz around Humpty Sharma Ki Dulhania,
reports of his next with Sriram Raghavan and one with brother Rohit, 2 brand
endorsements
Akshay Kumar: Promotions of Holiday, buzz around his upcoming films
Singh Is Bling, Gabbar, It's Entertainment as well as Neeraj Pandey's next, 5
brand endorsements
Saif Ali Khan: Buzz around Humshakals, stories about Phantom, Happy
Ending and Dolly Ki Doli, 7 brand endorsements
Aamir Khan: Buzz around P.K
Farhan Akhtar: Buzz around Raees and Bombay Samurai, 2 brand
endorsements
1.6.2 What creates a buzz about celebrities - Leading Female actresses
Deepika Padukone: Promotions of Kochadaiiyaan, buzz around her upcoming
films Happy NewYear, Finding Fanny, Bajirao Mastani and Tamasha, 11
brand endorsements
Katrina Kaif: Buzz around her upcoming films Phantom, Bang Bang, Jagga
Jasoos and Fitoor, 10 brand endorsements
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Nargis Fakhri: Main Tera Hero, buzz around her international film Spy, 3
brand endorsements
Kareena Kapoor Khan: Buzz around her upcoming films Singham Returns,
Gabbar and Bombay Samurai, 11 brand endorsements
Ileana d'Cruz: Main Tera Hero, buzz around Happy Ending, 1 brand
endorsement
Kangana Ranaut: Revolver Rani, reports of her opting out of Durga Rani
Singh for her script writing course in New York, 1 brand endorsement
Sonakshi Sinha: Lending her voice to the Hindi version of Rio 2, buzz around
her upcoming films Holiday and Tevar, 6 brand endorsements
Priyanka Chopra: Buzz around her upcoming Mary Kom biopic and Dil
Dhadakne Do, release of her third single I Can't Make You Love Me, 6 brand
endorsements
Aishwarya Rai Bachchan: Buzz about her Cannes trip, 6 brand endorsements
1.7 Spending on advertisements by FMCG
According to groupM4, the estimated Indian advertising expenditure in 2014 is about
₹43,065 Crore that is from ₹38,598 crore in the year 2013. The annual revenues of
FMCG companies have increased 15-20 per cent, their advertisement and sales
promotions spendhas risen 25-30 a year. ITC, one of the biggest Indian companies
spent ₹806.65 crore on advertising in the year 2012-13, against ₹682.69 crore in
2011-12. Dabur India‟s ad spends of ₹502.37 crore, jumped 27 percent in 2012-13.
In 2012-13, Hindustan Unilever spent ₹3,231.88 crore on advertising and
promotional activities, compared with ₹2,634.79 crore the previous financial year, a
rise of 22.66 per cent. During the same period, the city-based FMCG company
Emami‟s spends rose 21.18 per cent to ₹253.11 crore. A major reason for the high
growth in advertising spends is these companies are keen to record volume growth.
4GroupM is WPP's consolidated media investment management operation, serving as the parent
company to agencies including Maxus, MEC, MediaCom, Mindshare, Catalyst and Xaxis.
(http://www.groupm.com/)
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Figure 1: Celebrity & their rate for endorsement per deal
(Source: businesstoday)
In the past, high advertisement spends have taken a toll on the margins of
many companies, though analysts say this is peculiar to the way FMCG companies
operate in India.Major fast moving consumer goods (FMCG) companies have raised
their advertising and promotion spends in the first six months of the current fiscal
(H1FY14). Further, this trend is likely to continue in the second half of Financial Year
2014 as well. While Hindustan Unilever (HUL), the FMCG giant has reported a 16
per cent increase in advertising and promotion spends (ad spends) to ₹1843.8 crore
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during H1FY14 over the corresponding period last fiscal, Similarly, Colgate, Jyothy
Laboratories, and Emami have seen an increase of 28 per cent, 50 per cent and 9.42
per cent respectively.
Table 1.4: Advertising budget of top FMCG Company in India for year 2013
Company FY13 ( in Crore) FY12 ( in crore) Change (%)
ITC 806.65 682.69 18.16
HUL 3,231.88 2,634.79 22.66
Dabur 502.37 397.66 27 .00
Emami 253.11 208.87 21.18
Britannia 534.28 419.6 27.33
(Source: business-standard)
1.8 Celebrity endorsement of FMCG products in Advertisement
Table 1.5: Celebrity endorsement of FMCG products in Advertisement
Product/Service
Category
Brand Celebrity
Endorser
Non-Celebrity / Brand
Detergent
powder / Soap
Wheel - HUL Salman Khan Female- Ghari detergent
Santoor Saif Ali Khan Kids / Surf Excel
Lifebouy Yuvaraj Singh Male / Tide detergent
Home cleaning
Xpert Utensil cleaner Priyanka Chopra Female-Nurse / Lyzol
Vim - Liquid Ram Kapoor
Vim - Bar Shakshi Tanvar
Harpic Husain
Saini fresh Karishma Kapoor
Oral care
Pepsodent Shahrukh Khan Male/Colgate -No cavity
Anchor toothpaste Kajol Couple / Close-up
Colgate – Salt Priyanka Chopra
Bakery
products
Corneto Yami Gautam Male / ITC-Dark fantasy
Parle Goldstar Amitabh Bachhan
Britannia Tiger Salman Khan
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Chocolate
Choco-on Ketrina Kaif Male/ 5 Star Chocolate
Nestle Munch Virat Kohli
Snickers Rekha
Skin care
Lux-Deospray Karina Kapoor Female / Dove
Whitening deo
Ponds skin cream Miss India-2013 Female / Dove Body
lotion
Fair & Lovely Yami Gautam Female / Itchgard-Paras
Ponds Ranbeer Kapoor Kids /
Lifebouyhandwash
Suthol-Boroline Shakshi Tanvar Female / Veseline
Fem-Bleach Sonakshi Sinha Mom & Daughter /
Pears soap
Fair & Handsome Shahrukh Khan
Lux Katrina Kaif
Olay Kajol
Garnier men John Abraham
Nivea White Anushka Sharma
Hair care
Dabur - Vatika Priyanka Chopra Female / Almond drop
hair oil
Nihar- Shanti Amla Vidya Balan Male / Beylcreme
L‟oreal Aishwaria Rai Child / Jhon. &
Jhonsons
Parachute Deepika
Padukone Female / Sunsilk
Head & Shoulders Kareena Kapoor/
Saif Ali Khan
Snack food
Kellogs Shaskhi Tanvar Kids / Bournvita
Lays chips Saif Ali Khan Male / Bingo
Kurkure Pariniti
Chopra/Juhi Male / Bingo mad angle
Maggie-Nestle Amitabh
Bachchan
Nutrogena Prachi Desai
Beverages
Rasna fruit plus Virendra Sehvag Family / Red Lable
Tajmahal tea Saif Ali Khan Male / Mountain Dew
Coca-cola Aamir Khan Male / 7-up
Mazza Parineeti Chopra
Thums-Up Salman Khan
Slice Katrina
Limca Kareena Kapoor
Life Insurance
AVIVA Sachin Family / LIC
Biral Sunlife Yuvraj Singh Female / LIC-Jivan
Bharti plan (Source: Primary data, observation of various media from Jan. 2012 - May.2014 )
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1.9 Problem Discussion and Problem Statement
There are extensive studies covering whether or not, celebrity endorsement is
beneficial (Agrawal & Kamakura, 1995) and cases where celebrity endorsement can
have negative effects on the brand (Shimp & Till, 1998; Farrell, Karels, Montfort, &
McClatchey, 2000). Another study focused on what determines the communication
effectiveness of the endorsement (Kahle & Homer, 1985; McGuire, 1985;
McCracken, 1989). However, no study so far focuses on the theme of this thesis.
Therefore, the study is conducted by combining celebrity endorsement with compared
to non-celebrity endorsement. For those products which are having little inherent risk,
the advertiser should choose a typical-consumer endorser (Hershey H. Friedman and
Linda Friedman,1979).
Some of the research in Indian context was done as a differential effect of
National vs Regional celebrities on consumer attitudes. They found that national
celebrities are better than regional celebrities in creating positive consumer attitudes.
Consumers are open to new product in high and low involvement product categories
with the presence of national and regional celebrity. However, when compared within
the product categories, it had a higher impact on low involvement product (soft drink)
as compared to the high involvement product (car) (Jain Versha Et.al. 2010). Hence, it
may be of great value for new ventures that find themselves in the described situation.
Further, it is found that non-celebrity endorsement is more appreciated than celebrity
endorsement and induced more positive attitudes. The persuasive power of non
famous endorser‟s credibility as a major asset to reinforce advertising effectiveness.
The advertisers should exploit it in their messages, to guarantee a favorable attitude
toward advertising and the promoted brand to the target public. (Aicha Meksi Gaied
& Kaouther Saied Ben Rached. 2010). Celebrity endorsement can present a high risk
and “no win situation” (celebrities‟ surrounding scandals, as those of Tiger Woods‟
Kate Moss and Britney Spears, in India famous cricketer involved in match fixing
etc.). Some advertisers favor non-famous endorsers. Tom at al. (1992) noticed that
created endorsers were more effective in creating a link to the product than celebrity
endorsers.
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1.9.1 Problem Statement “There are significant studies reiterating
effectiveness of celebrities and their ability to influence attentation of masses.
At the same time, all the advertisements are not necessorily endorsed by
celebrities. As derived from trends of celebrity as well as non-celebrity
endorsements in the same product catagories, there are two strategies used by
marketers i.e. use of celebrity in the ads by Wheel detergent powder and use of
non-celebrity in the ads by Tide detergent powder. Hence, it is interesting to
work on comparision between effectiveness of both celebrity and non-
celebrity endorsement on selected product catagories.”
1.10 Research Questions
In the above discussion with previous paragraph regarding to pros and cons of
celebrity endorsement, this research investigates whether or not non-celebrity
endorsement can be as effective as celebrity endorsement in selected FMCG product
categories. According to a report by McKinsey Global Institute (MGI), the India's
consumer market will be the fifth largest (from twelfth) in the world by 2025.
Additionally, consumers in India are exposed to several new products every other day
followed by marketers‟ differentiation and positioning techniques. Therefore, it will
be interesting to investigate the impact of celebrity endorsements on consumers
buying behavior in India. From a business perspective, this research study would be
useful in understanding perceptions of Indian consumers towards celebrity and non-
celebrity endorsements. In order to fulfil this, the following research questions are
developed:
Is there any difference in customer‟s perceptions with respect to celebrity
versus non-celebrity endorsers in advertisements?
How do demographic factors have an impact on customers‟ perception for
celebrity & non celebrity endorsers in advertisements?
What is the impact of celebrity and non celebrity endorsement on purchase
intentions?
How does the effectiveness of non-celebrity endorsement differ with various
product catagories?
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References:
Agrawal, J. and. Kamakura, W.A. (1995), “The economic worth of celebrity endorsers:
an event study analysis”, Journal of Marketing, Vol. 59, July, pp. 56-62.
Aicha Meksi Gaied and Kaouther Saied Ben Rached (2010), “The Persuasive
Effectiveness of Famous and Non Famous Endorsers in Advertising” IBIMA
Business Review, Vol. 2010 (2010), Article ID 474771, 14 pages DOI :
10.5171/2010.474771
Friedman, H.H. and Friedman, L. (1979), “Endorser effectiveness by product type”,
Journal of Advertising Research, Vol. 19 No. 5, pp. 63-71.
Jain Varsha, Roy subhadip, Kumar Abhishek, Kabra Anusha. (2010), “Differential
effect of National Vs Regional Celebrities on consumer attitudes.” Management
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Kahle, Lynn R. and Pamela M. Homer (1985), "Physical Attractiveness of the Celebrity
Endorser: A Social Adaptation Perspective," Journal of Consumer Research,
11 (March), 954-961
Marshall, P. David. “Celebrity and power : fame in contemporary culture”
Minneapolis, Minn. : University of Minnesota Press, 1997.
McCracken, G. (1989), “Who is the celebrity endorser? Cultural foundations of the
endorsement process”, Journal of Consumer Research, Vol. 16, December, pp.
310-21.
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