“A STUDY ON THE IMPACT OF BRAND

AMBASSADORS ON PURCHASE BEHAVIOUR

WITH REFERENCE TO FMCG SECTOR”

A SYNOPSIS

Of the DISSERTATION

Submitted to

BANGALORE UNIVERSITY

For the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

VEMULA DILEEP CHOWDARY

(12CQCMA152)

UNDER THE GUIDANCE OF

MRS.JAYASHREE

Dayananda Sagar College of Management and Information Technology

Shavige Malleshwara Hills, K.S. layout, Layout, Bangalore – 5600078

Academic Year- 2012-2014

INTRODUCTION:

Today 'Celebrity Endorsement' has attracted immense debate on whether it really contributes to the brand

building process or whether it is just another tool to make 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 are few undesirable

impacts of this practice on the brand. The theories like 'Source Credibility Theory, Source Attractiveness

Theory and Meaning Transfer Theory' provide a 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. However

there lies uncertainty with respect to the returns that the company might be able to garner for the brand. The

issue of matching the values of the celebrity with the brand values is also very important, i.e. getting the

right celebrity to endorse the right brand. Consumers perceive the brand as having superior quality because

it has been endorsed by a credible source. This makes endorsement as one of the indictors of quality for any

brand. Corporate credibility along with endorser credibility plays a significant role in the attitude of the

consumer towards the brand and the advertisement respectively. On the other hand, the over popularity of

the celebrity sometimes overshadows the brand. If the celebrity is involved in multiple endorsements, it

tends to create confusion among consumers and hence negatively affects the perception of the

advertisement and the brand. Hence, to say clearly whether the practice of celebrity endorsement impacts

positively or negatively to the brand still remains a debate.

PROBLEM STATEMENT

To study the impact of celebrity endorsement towards the purchase behavior of FMCG.

On the basis of this problem statement, the following specific objectives have been

crystallized.

OBJECTIVE OF THE RESEARCH

To identify whether celebrity endorsement has any impact in the

purchase behavior of FMCG.

To find out the importance of celebrity endorsement in the promotion

of a product.

To find out whether celebrity endorsement constitutes for brand recall

and brand awareness.

To identify the fissures and faults in celebrity endorsement.

RESEARCH DESIGN

The research study first examines the various facets of celebrity endorsements and the impact

on the purchase behavior of the FMCG. A thorough literature survey has been made in light of

all the things surrounding the celebrity endorsement. Then a survey is taken among the

general public with a sample to arrive at several conclusions regarding the impact of brand

ambassadors towards the purchase behavior of FMCG.

SAMPLE SIZE

The chosen sample size is of 100 consumers of FMCG between the ages 17-30.

SAMPLE DESCRIPTION

The data taken for study is a convenient sample representing the youth of today, so that a

proper conclusion can be reached. The target is youth aged between 17-30

INSTRUMENTATION TECHNIQUES

The questionnaire technique is used for the survey and the reasons for using this approach are

It covers wide area

It is not an expensive affair

Original data could be obtained

It is free from all bias

Easy to tabulate and understand

COLLECTION OF DATA

Data has been collected from both primary and secondary sources. Primary data is collected

by the questionnaires and personal observation. Secondary data is collected by the referring to

several journals, books, internet, magazines, etc,

LIMITATION

The data is restricted to Bangalore

Time constraint

Results are purely based on primary information

The analysis and interpretation is made under the assumption

that data are accurate

CONTENTS

CHAPTER PARTICULARS

1. INTRODUCTION

2. RESEARCH DESIGN

3. CONCEPT OF BRANDING

4. IMPACT OF CELEBRITY ENDORSEMENT ON

THE OVERALL BRAND

5. FMCG INDUSTRY: AN OVERVIEW

6. IMPACT OF BRAND AMBASSADORS IN FMCG INDUSTRY

7. ANALYSIS AND INTERPRETATION

8. SUMMARY OF FINDINGS,

RECOMMENDATIONS AND CONCLUSIONS