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Amit Kumar Msc Management with Marketing, 2010 The Executive Business School, Bournemouth University
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Acknowledgement
First of all, I would like to express my gratitude to Bournemouth University for giving me an opportunity to pursue Masters in my field of studies. I am heartily thankful to my supervisor, Dr. Lukman Aroean, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. Furthermore, I would like to thank all academics and administration staff at Bournemouth University for their kind cooperation and efforts to assist us in the every helpful way they can. I must admit that this year I had the best studying experience and will always cherish this year of my academic life.
Finally, I thank my family: my parents, Mrs. Shail Kumar and Shri Ashok Kumar, for giving me an opportunity to in the first place, for unconditional support and encouragement to pursue my interests and progress in my further degree. My brother, Vineet Kumar for his love and support.
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Electronic copy available at: http://ssrn.com/abstract=1802531
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1. I hereby give permission for my Research Project to be placed in the library for reference purposes. Signed .
OR
2. I do not wish my Research Project to be placed in the library for reference purposes. Signed . Title of Research Project: Celebrity Endorsements and its Impact on Consumer Buying Behaviour
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Abstract
The practice of celebrity endorsements has proliferated over time. Now days it has become a pervasive element of advertising industry especially in India. Celebrity endorsement business has become a multi-million industry in India. Marketers use celebrity endorsers to influence the purchase decision of consumers in order to increase their sales and extend their market shares. This made the author curious to explore the impact of celebrity endorsements on consumer buying behaviour. This dissertation focuses on examining the perception of Indian consumers about celebrity endorsements, examining the celebrity attributes likely to influence consumer purchase intentions and finally the impact of celebrity endorsements on their purchase intention. This project begins with the review of existing literature available on celebrity endorsements, which provides an insight into the research topic and clarifies many important aspects related to the subject. A quantitative method is used for this research project to investigate the perceptions of the consumer, attributes and its subsequent impact on purchase intention. The data is collected through a questionnaire and later analysed using the data analysis software program SPSS. It was proven in this research that consumers find celebrity endorsements more attractive and influential as compared to non-celebrity endorsements. Moreover, the tested attributes show positive relationship with purchase intention. In other terms, celebrity attributes do impact the purchase intention of consumers. Finally, the results of the study prove that celebrity endorsements positively impact the purchase intention of the consumers.
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Table of Contents
Acknowledgement .......................................................................................................................................... ii Abstract ............................................................................................................................................................... v List of Tables .................................................................................................................................................... ix List of Figures .................................................................................................................................................. xi
1 1.1
INTRODUCTION ................................................................................................................................... 1 Background to the topic: An Insight to the Celebrity Endorsements ............................. 1 Research Justification ....................................................................................................................2 Academic Justification ..........................................................................................................2 Business Justification ............................................................................................................2 Personal Justification ............................................................................................................2 Research Aim .................................................................................................................................... 3 Research Objectives ....................................................................................................................... 3 Research Questions ........................................................................................................................ 3 Outline of the Dissertation .......................................................................................................... 4 1.2.1 1.2.2 1.2.3 1.3 1.4 1.5 1.6 1.2
LITERATURE REVIEW ....................................................................................................................... 5 2.1 2.1.1 2.1.2 2.1.3 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 Concept and Meaning.................................................................................................................... 5 Celebrity .................................................................................................................................... 5 Celebrity Endorser ................................................................................................................. 5 Celebrity Endorsement .........................................................................................................6 Celebrities as a form of Aspirational Reference Group ........................................................ 7 Celebrity versus Non-Celebrity Endorsements ..................................................................... 8 Celebrity Endorsement as a Marketing Communication tool ...........................................9 Positive aspects of Celebrity Endorsement ........................................................................... 10 Negative aspects of Celebrity Endorsement .......................................................................... 11 Multiple Celebrity Endorsements ............................................................................................ 13 Consumer Buying Behaviour...................................................................................................... 15 Types of Consumer Buying Behaviour .................................................................................... 15 Consumer Buying Behaviour in India ...................................................................................... 17 Celebrity Endorsement Effectiveness ..................................................................................... 19 Source credibility model ..................................................................................................... 19
2.11.1
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Source attractiveness model .............................................................................................. 21 Product Match-up model .................................................................................................. 22 Meaning transfer model ..................................................................................................... 24
Celebrity Endorsement An Indian Perspective ................................................................ 26 Theoretical Framework .............................................................................................................. 29 Hypotheses .............................................................................................................................33 Conclusion ..................................................................................................................................... 34
2.13.1
METHODOLOGY .................................................................................................................................35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.7.1 3.7.2 3.7.3 3.7.4 3.7.5 3.8 3.8.1 3.8.2 3.9 3.10 3.11 3.12 Research Philosophy ....................................................................................................................35 Research Approach ....................................................................................................................... 37 Quantitative Versus Qualitative Research ............................................................................38 Research Purpose ......................................................................................................................... 39 Research Design............................................................................................................................ 39 Research Strategy ......................................................................................................................... 40 Data Collection ............................................................................................................................. 40 Secondary Data ...................................................................................................................... 41 Primary Data .......................................................................................................................... 41 Questionnaire ....................................................................................................................... 42 Questionnaire Design ......................................................................................................... 42 Pilot Test ................................................................................................................................ 43 Sampling ......................................................................................................................................... 43 Sampling Technique ........................................................................................................... 45 Sampling Size........................................................................................................................ 45 Data Quality Issues ...................................................................................................................... 46 Data Analysis ................................................................................................................................. 47 Limitations of the Research ...................................................................................................... 48 Methodology Framework .......................................................................................................... 49
ANALYSIS AND FINDINGS ............................................................................................................. 50 4.1 4.1.1 4.2 Research Question 1: ................................................................................................................... 50 Testing the Hypothesis ...................................................................................................... 58 Research Question 2: Hypotheses Testing ........................................................................... 59
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Degree of correspondence between variables ............................................................. 59 Regression Models ............................................................................................................... 61 Summary ................................................................................................................................ 70 Descriptive statistical Analysis of Attributes .............................................................. 73 Testing the Hypothesis ...................................................................................................... 86
DISCUSSION ......................................................................................................................................... 88 5.1 5.2 5.3 Current State of Consumer Perception about Celebrity Endorsements ..................... 88 Relationship of Celebrity Attributes with Purchase Intention ...................................... 89 Impact of Celebrity Endorsements on Consumers Purchase Intention ....................... 92
CONCLUSION...................................................................................................................................... 94 6.1 6.2 6.3 6.4 Limitations of the study ............................................................................................................. 95 Theoretical Implications ............................................................................................................ 96 Managerial Implications .............................................................................................................97 Further Research ...........................................................................................................................97
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List of Tables
Table 1: Pros and Cons of Celebrity Endorsement Strategy Table 2: Examples of Multiple Product Endorsements in India Table 3: Source Credibility Scale Table 4: Models explaining Celebrity Endorsements Table 5: Frequency Table for Attractiveness Table 6: Age * More attractive Cross-tabulation Table 7: Statistical Analysis of Recognise and Recall rate Table 8: Recognise & Recall rate of celebrity endorsed advertisements Table 9: Age * Recognise/Recall Cross-tabulation Table 10: Descriptive Statistical Analysis of Influential Table 11: Summary of Influential Table 12: Age * Influential Cross-tabulation Table 13: Correlation Matrix Table 14: Descriptive Statistics of Attributes Table 15: Model Summary of Expertise Table 16: Coefficients of Expertise Table 17: Model Summary of Trustworthiness Table 18: Coefficients of Trustworthiness Table 19: Model Summary of Similarity Table 20: Coefficients of Similarity Table 21: Model Summary of Familiarity Table 22: Coefficients of Familiarity Table 23: Model Summary of Likeability Table 24: Coefficients of Likeability Table 25: Model Summary of Matchup Table 26: Coefficients of Matchup
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Table 27: Model Summary of Meaning Transfer Table 28: Coefficients of Meaning Transfer Table 29: Descriptive Statistical Analysis of Expertise Table 30: Expertise of Celebrity and Purchase Intention Table 31: Descriptive Statistical Analysis of Trustworthiness Table 32: Trustworthiness of Celebrity and Purchase Intention Table 33: Descriptive Statistical Analysis of Similarity Table 34: Similarity of Celebrity and Purchase Intention Table 35: Descriptive Statistical Analysis of Familiarity Table 36: Familiarity of Celebrity and Purchase Intention Table 37: Descriptive Statistical Analysis of Likeability Table 38: Likeability of Celebrity and Purchase Intention Table 39: Descriptive Statistical Analysis of Matchup Table 40: Matchup of Celebrity and Purchase Intention Table 41: Descriptive Statistical Analysis of Meaning Transfer Table 42: Meaning Transfer of Celebrity and Purchase Intention Table 43: Descriptive Statistical Analysis of Each Attribute Table 44: Reliability test for Purchase Intention Table 45: Statistical Analysis Purchase Intention 01 Table 46: Statistical Analysis Purchase Intention 02 Table 47: Statistical Analysis Purchase Intention 03 Table 48: Overall Purchase Intention Table 49: Descriptive Statistics Overall Purchase Intention
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List of Figures
Figure 1: Classical Conditioning Paradigm in Marketing Communications Context Figure 2: Meaning Movement and Endorsement Process Figure 3: Trend of Celebrity Endorsements in India Figure 4: Broad Framework designed to Study Celebrity Endorsements Figure 5: Theoretical Framework designed to Study Celebrity Endorsements Figure 6: Types of Sampling Techniques Figure 7: Methodology framework Figure 8: Attractiveness (Celebrity vs. Non-celebrity advertisements) Figure 9: Attractiveness (Age group analysis) Figure 10: Attractiveness (Gender analysis) Figure 11: Recognise and Recall rate of celebrity endorsed advertisements Figure 12: Age * Recognise/Recall rate of celebrity endorsements cross-tabulation Figure 13: Influential (Celebrity vs. Non-celebrity advertisements) Figure 14: Age*Influential celebrity endorsements cross-tabulation Figure 15: Residual Plots of Hypothesized Relationships Figure 16: Expertise of Celebrity and Purchase Intention Figure 17: Trustworthiness of Celebrity and Purchase Intention Figure 18: Similarity of Celebrity and Purchase Intention Figure 19: Familiarity of Celebrity and Purchase Intention Figure 20: Likeability of Celebrity and Purchase Intention Figure 21: Matchup of Celebrity and Purchase Intention Figure 22: Meaning Transfer of Celebrity and Purchase Intention Figure 23: Graphical Representation of Importance of Each Attribute Figure 24: Overall Purchase Intention of Consumers for Celebrity Endorsements
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INTRODUCTION
This introductory chapter provides the reader with an insight into the topic of the research area. The chapter begins with title of the research followed by a brief background to the research topic with further emphasising on the aims and objectives of the research project. Finally, it explains the overall structure of the research project.
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influence the customers emotionally and make them buy products. The author, in his school days was under the same influence of celebrity magnetism. Later after reading and studying marketing, the author came to know about the theoretical and practical underpinnings of celebrity endorsements which increased authors eagerness to towards the topic. Additionally, author believes that conducting this research project will enhance the valuable personal knowledge about the subject and experience for future career applications.
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LITERATURE REVIEW
This chapter aims to comprehensively review the existing research done in the area of celebrity endorsements in order to get the better understanding of the research subject. The content of the chapter includes concepts and meaning of celebrity, celebrity endorser, celebrity endorsements, celebrity versus non-celebrity endorsements, positive and negative aspects of celebrity endorsements, consumer buying behaviour, models for celebrity endorsements, celebrity endorsement an Indian perspective and theoretical model for the research.
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and emotional reactions (Kanungo and Pang, 1973) than a non-celebrity endorser (Atkin & Block, 1983; Petty and Cacioppo 1983). Therefore celebrities who are placed as models and are seen as in support of the product and / or its claim are known as endorsers (Tellis, 1998). In order to be effective a celebrity endorser should have the credibility to attract attention Miciak and Shanklin 1994) increase awareness of the endorsed product (Wilson, 1997) and influence the purchase decision of the targeted audience (Ohanian, 1991).
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Agrawal and Kamakura (1995) and Mathur, Mathur and Rangan (1997) conducted two different studies to assess the economic worth of celebrity endorsement contracts on the expected profitability of a firm. The authors used Event Study Methodology, which is used to identify the valuation effects of marketing decisions (Mathur, et al. 1997). Surprisingly, outcomes from both of the studies emphasised on the effectiveness of use of celebrity endorsers (Erdogan 1999).
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sword, which may create and destroy a brand. Therefore, we will explore the positive and negative aspects of celebrity endorsement.
Table 1: Pros and Cons of Celebrity Endorsement Strategy (Source: Erdogan 1999)
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For most of the multi-national companies while expanding to different countries may face some issues like cultural 'roadblocks' such as time, space, language, relationships, power, risk masculinity, femininity and many others (Mooij 1994; Hofstede 1984). Celebrity endorsements can be a powerful device to enter foreign markets. Hiring a world famous celebrity or a celebrity from the expanding country may help companies to overcome many such issues. For Instance, Pepsi Co Intemational increased its market share in India by Endorsing through famous celebrities and crickets such as Shahrukh Khan, MS Dhoni, Kareena Kapoor etc. It is been experienced that the products endorsed by celebrities help them to standout and take more notice while shopping due to their improved level of product recall (Bowman 2002). Advertisements featuring a celebrity make a strong impact on the learning style and memory of a consumer which is an important aspect of marketing communication success. Celebrities often make the ad more memorable in the mind of the consumer even if there is no immediate need of the advertised product. Marketers use this advantage of information storage in the minds of the consumers which can be readily retrieved at the time of shopping or when the need arises (Schultz & Barnes, 1995). All these arguments lead to the conclusion that celebrity endorsements likely to have a positive effect on consumer buying behaviour (Goldsmith, Lafferty and Newell 2000; Mathur, Mathur & Rangan 1997)
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celebrities - Mike Tyson, Madonna, and Michael Jackson (Katyal 2007). Companies have faced serious embarrassment when their spokesperson or celebrity endorsers were deeply involved in a controversy (Erdogan 1999). Sometimes in an advertisement, consumers fail to focus on the product being endorsed due to the glamour and popularity of the celebrity, hence fails to promote the brand (Rossiter and Fercy 1987). As Cooper (1984) said "the product not the celebrity must be the star." Overshadowing or commonly termed as the vampire effect occurs when the celebrity endorser occurs in the presence of multiple other stimuli which all competes to form a link with the celebrity endorser. (Till 1996). It leads to lack of clarity for the consumer. (Evans 1998). The major issue arises out of this problem is that consumers fail to notice the brand being endorsed because they are more focussed over the celebrity (Erdogan 1999). Overexposure is a common issue among highly demanded and well recognized celebrity endorsers because every major company wants to hire them to endorse their brands which ultimately leads to making the consumer more confused and unable to recall correctly as to which brand the celebrity stands for. (Tripp et.al. 1994). Another important issue concerning the celebrity endorsement is that sometimes most famous celebrities often indulge in endorsing much different type of products and services just for the sake of their greed for money. For example Shahrukh khan endorses more than 20 different brands from hair oil to automobiles. Solomon et al. (2002) referred this as the hired gun problem, where the spokesperson is perceived as endorsing the product only for the sake of money. If a celebrity lends his image to various brands by appearing in advertisements it also has less impact on the consumers mind and the message being delivered since the relationship between the celebrity and the endorsed brand is not distinctive (Mowen and Brown 1981). This may not also disappoint the celebrity fans (Graham 1989) but also make the consumers aware of the real fact of endorsements that celebrities are endorsing the products just for the huge amount of money they get and has nothing to do with the product attributes or product being endorsed (Cooper 1984; Tripp, et al. 1994). Many researchers have also proposed that negative information about a celebrity not only influences consumers' perception for the celebrity, but also the product endorsed by him (Klebba and Unger 1982; Till and Shimp 1995).
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There are some other new limitations being faced these days called Celebrity Trap, Celebrity Credibility and Celebrity Clutter. Celebrity trap is when it becomes difficult for marketers to separate the role of the message and the role of the celebrity in selling the brand and when celebrity becomes an addiction for the marketing team. It becomes more and more difficult to find the substitute. Celebrity credibility has become questionable these days. Consumers have now become aware of the fact that celebrities are endorsing brands just for the sake of money. The credibility which celebrities used to possess in the past is bound to decrease if a celebrity begins to appear and endorses a brand in every possible category (Patel 2009). Celebrity Clutter is when each celebrity endorses multiple products and multi-brands in a category, make the customer more confused. It make consumer to make comparisons such as whether this celebrity is bigger or that one to make product choices. Pepsi is endorsed by Shahrukh Khan and Coca Cola by Amir Khan. Celebrity endorsers have now become a liability to the brand they endorse (Till and Shimp,1998) as there are decreasing returns associated with celebrities (Agrawal and Kamakura 1995). Some researchers also referred celebrities as a puppet in the hands of marketers implying that they perceive the celebrities to be fake and lying, while endorsing certain brands (Temperley & Tangen, 2006).
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Erdogan and Baker (1999) in their research argued that it is useful for the marketers to use multiple celebrities for endorsing a particular brand because it can reach out and appeal to its entire target audience. However, the use of multiple celebrities might create a confusion about the brands identity in the consumers mind and therefore it should be assured that each and every celebrity possesses compatible meanings that are sought for brands (Erdogan and Baker, 1999 p. 13). For instance LOreal endorses its product line according to the celebrity attributes and the meanings associated with them (Redenbach, 2005). The greatest fear for marketers while using multiple celebrities is that today consumers are more aware, educated and knowledgeable about the use of celebrity endorsements. It may lead them to think that celebrities are endorsing the brands just for the sake of money and doesnt really care about the product, which might negatively affect the consumers buying behaviour (Belch and Belch, 2001). In a research by Redenbach (2005) argued that endorsing four different brands/products influences the celebritys trustworthiness, expertise and likeability. Because the celebrity instead of focusing on one brand, endorses multiple brands and which eventually lacks distinctiveness (Redenbach, 2005). There is also a possibility that using so many different celebrities might overshadow the brand and lead to Vampire effect. People might just remember the celebrities but not the brand/product being
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Complex buying behaviour: It usually takes place when the customer is highly involved
in the product purchase decision. The high product involvement occurs when product to be bought is expensive, infrequently bought, and highly expressive. Since, these types of products are not bought frequently the consumer doesnt know much about the products and observes substantial differences among the brands available for instance buying a luxury sedan. Consumers make this type of buying decisions very carefully after collecting a lot of information about the product features, quality and performance. According to Assael (1981), Consumers tend to experience cognitive dissonance while making such complex product decisions due to increased risk perception in this type of buying behaviour. There are certain risks also involved while making such decisions for example high may result in monetary loss, highly expressive product nature may lead to psycho-social loss and lack of product knowledge will result in increased uncertainty. From a marketing perspective, marketers need to make sure that they use the effective differentiation strategies to stand out the product from other brands available. And also, try to educate the customers about the importance, application and features of the product offered.
Habitual buying behaviour: In occurs when the consumer buy the same product on
regular basis over a period of time. Under habitual buying behaviour consumer product involvement is low and there is little difference between the brands available, for instance buying salt, sugar etc. The consumers buy these products out of their habit or due to their trust or brand loyalty. According to Scott (2007) consumers dont go through the process of belief, attitude and purchase decision nor look for deep information and compare the available products. Consumer buy the brands they have used and aware of.
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However, It is interesting to see marketers constantly trying to move these type of product especially (FMCG products) from a low involvement to a higher involvement status by differentiating them on various bases like health, safety etc. . For instance marketers are involved in developing low calorie sugar cholesterol free oil etc. and selling them at higher prices.
Variety seeking behaviour: This type of consumer behaviour originates if the customer is
not happy with its earlier product purchase or out of the boredom. It specially happens with the consumers who like to shop around and try-out with different type of products. In this buying behaviour consumerproduct involvement is low but the differences among the brands are significant. These types of consumers change their brand frequently, not due to dissatisfaction, but out of boredom. Variety seeking behaviour is identified as a key determinant factor for brand switching in consumer product category (Scott 2007). According to Assael (1981) consumers having variety seeking consumer behaviour purchase the brands which have higher degrees of perceived risk associated with them and are generally not perceived as brand loyal.
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national income. Hence, the recent emergence and development of the rural market is an opportunity for marketers in India (Matrade 2005). There has been a drastic change noticed in Indian consumer behaviour to what it used to be few decades back. Today Indian consumer wants to lead a life full of luxury and comfort. Indian consumers dont just want the availability of products; they also want better service and ambience. Purchasing power of people in India is rising very sharply. As a result, the market for luxury products in India is also climbing at a surprising rate (Shukla and Devi 2010). The Indian consumers are noted for the high degree of value and family orientation (Hofstede 1980). This value orientation has labelled Indians as one of the most sensitive consumers in the world. Even, big brands in India design a unique pricing strategy in order to grab a share of the Indian market. This family orientation extends not only to family but to friends as well and also influences the decision making. It is also been noticed that brands those tend to support family values are popular and easily accepted in the Indian market. Due its culture, Indian consumers possess high priority for values of nurturing, care and affection (Matrade 2005). Hence, people easily get influenced by the brands communicating through the feelings and emotions. In a study by Hofstede (1980), India has a high power distance (77) as compared to United States (40) and United Kingdom (35). Indian consumers strictly follow their culture, tradition and values, as a result foreign companies are forced to give an Indian touch to their products and services offered in India. For instance McDonalds, Pizza Hut, Pepsi, Coca Cola and many other brands changed their offerings in order to expand in India (Shukla and Devi 2010). As a result of the increasing literacy rate and increasing western exposure through satellite television, fashion magazines and newspapers, there is a significant increase in consumer awareness. This awareness has made the Indian consumers more selective for the quality of the products/services by shopping in retail supermarkets Big Bazaar etc. The consumer tends to purchase from a place where his/her feedback is more valued. The Indian consumers are price sensitive and prefer to buy value for money products (Matrade 2005). Indian consumers consider price as an indicator for quality of a product as they feel that the product is expensive due to its high quality. Its also been noticed that Indian consumer buying behaviour is influenced by freebies. People tend to buy the products if there is something given for free along with it (Matrade 2005).
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Matrade (2005) divided Indian consumers in three different segments i.e. The Socialites, The Conservatives and the Working women. Socialites are the people belonging to the upper class of the society. They prefer to shop in expensive specialty stores, and spending a good amount of money on leading a luxurious life. They always try to differentiate themselves from others by purchasing expensive and exclusive products. Socialites are observed to be very brand insistent and would only opt for the best available in the market irrespective of money. On the contrary, The conservatives are referred to the middle class people. The conservative segment is said to be the true reflection of the Indian culture and society. Middle class people are traditional and thoughtful in their towards their purchase decisions. They spend more time with family and focus more on savings than spending. They are slow decision makers because they refer to a lot of sources before making any purchase and always look for durability and functionality of the product. The working woman segment saw a tremendous growth in the late nineties. They are independent and not bound to anything monetary wise. This segment has been the target for the marketers. Working women have their own diverse perceptions in purchase decision making and factors those appeal to them. Today, Indian market has transformed from a sellers market to buyers market. The increased consumer power has fierce the competition in the market. This has led to the price war and has forced the companies to maintain product quality to sustain in the highly competitive market like India.
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in
terms
of
their
personal
attitude
and
value
structures
(Erdogan,
1999).
Table 3: Source Credibility Scale Ohanian (1990) defined trustworthiness as "the listener's degree of confidence in, and level of acceptance of, the speaker and the message." Trustworthiness of an endorser is perceptual and depends on the target audience. It refers to the honesty, integrity and believability of an endorser. Marketers take the advantage of these set of values by employing celebrities those are most regarded as trustworthy, honest believable and dependable among their fans and people (Shimp 1997). Based on an experiment conducted by Miller and Baseheart (1969) it was found out that if the perceived trustworthiness of the source is high; attitude change is more likely to occur. Expertise can be defined as the perceived ability of an endorser to make or provide valid assertions. It includes the knowledge, experience and skills developed by the endorser while working in the same field. Some authors suggest that it is not important for an endorser to be an Expert; but it all depends how audience perceive him (Hovland, et al. 1953: Ohanian 1991). Ohanian (1990) argued that the perceived expertise of celebrity endorsers is more important than their attractiveness and trustworthiness in influencing purchase intentions. Expert celebrities are found to be more persuasive (Aaker and Myers 1987) and may influence the consumer buying decision (Ohanian 1991). Speck. Schumann and Thompson (1988) found that expert celebrities produce higher rate of recall of product information than non-expert celebrities (Erdogan 1999). The findings in the source credibility research are ambiguous. It refers endorsement process as uni-dimensional because it is still uncertain to say what factors construct the model and what factors are more important than others in different situations. Although the study has
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proved to have a significant and direct effect on attitudes and behavioural intentions, it may help marketers in selecting right endorsers however it is not the only factor that should be considered in selecting celebrity endorsers (Erdogan, 1999).
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Cohen and Golden (1972) applied this model in advertising suggested that the physical attractiveness of source decides the effectiveness of persuasive communication through a process called identification. It happens when the receiver accepts the information from an attractive source as a wish to be identified with endorser (Erdogan 1999). In further research about gender interaction between source and respondent, it was found out that the source has a greater impact of persuasion and intention to buy on the respondent of opposite sex. Debevec and Kernan (1984) found that attractive female models trigger more positive attitude and purchase intention than their male counterparts across both sexes especially among males. Whereas, Caballero et al. (1989) opposed the statement by arguing that source and respondent of the same sex lead to greater intentions to purchase, males show greater purchase intention from male endorsers and vice versa. On the other hand Petroshius and Crocker (1989) found that sources gender had no impact on respondents attitudes towards advertisements or on purchase intentions either. The academic findings regarding gender or cross gender interactions between source and respondent are superficious and doesnt provide any guidelines to marketers (Erdogan 1999). The above arguments lead to the conclusion that attractive celebrity endorsers may enhance the attitude towards a brand but not necessarily result into actual behaviour, cognitive attitudes and purchase intention.
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(Kamins and Gupta 1994). Ohanian (1991) supported the argument by stating that it is critical to employ celebrities who directly resemble to the brand and are experts in their field. Bertrand (1992) argued that if a company can successfully connect a link between its product and celebrity image or the field celebrity specialises in, then it can bring fame and success to both. Previous research on the subject states that customers also expect the compatibleness between the endorsed product and the celebrity. In other words Customers make a perceived image about the product by comparing the qualities of the product and celebrity (Ohanian 1991; Callcoat and Phillips 1996; O'Mahony and Meenaghan 1997). On the other hand if there is not congruence between the endorsed product and the celebrity, it might lead people to a conclusion that the celebrity is faking it since he is nicely paid to endorse the brand (Erdogan 1999). From the above arguments it can be inferred that congruence between the celebrity and brand is required for effective advertising. Alternatively, if the endorsing celebrity and the endorsed brand have nothing in common it might lead to Vampire effect where celebrity overshadow the endorsed product and the targeted audience only remembers the celebrity not the product (Evans 1988). The product match-up model suggests that attractive celebrities especially attractive female celebrities are more effective at endorsing beauty products, the products used to enhance ones attractiveness (Kamins 1990). For instance, Aishwarya Rai Bachhan is a renowned celebrity endorsing L'Oral beauty products and Sachin Tendulkar, the famous cricketer endorsing adidas products in India. As Friedman and Friedman (1978) and Atkin and Block (1983) in their research argued that that the use celebrity endorsers is suitable where product purchases involve high social and psychological risk. Supporting the argument, Packard (1957) proposed that celebrity endorsement strategy is more effective for luxury products positioned and sold in the niche market segment because the featured celebrities are people from the high status and therefore it becomes easy for marketers to attract consumers to buy their products. Callcoat and Phillips (1996) opposed the argument by saying that consumers are generally influenced by celebrities if products are inexpensive and low involving. After considering the findings and opinions, it becomes obvious that the Match-up between the celebrity and the endorsed brand is important in order to attract the targeted audience and to make the message more effective.
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Figure 2: Meaning Movement and Endorsement Process (Source: McCracken 1989) The meaning transfer model illustrates a three stage process. It starts when the advertiser identifies the cultural meanings intended for the product and decides what he/she wants the product to say. After that, the advertiser looks for the objects, persons, and contexts that can give voice to these meanings for instance celebrities. In other words, in the first stage the meanings associated with the celebrities moves from the endorser to the product or the brand, and this meaning is drawn out of the celebritys public image. In the second stage, this meaning is transferred from the endorser to the product and the process of creating a product personality takes place (Tom, et al. 1992). This process is based on the symbolic properties conveyed by the endorser. Once meanings have been moved into goods, they must also be transferred to consumers. Finally in the last stage called consumption process, the brand meaning is achieved by the consumer. Consumers recognise the symbolic properties of products and transfer them into meanings for themselves by putting them to work in the construction of their self-image. When this is done, the movement of the meaning is complete. The third and the final stage of the model demonstrates the importance of the consumer in the endorsement process. (McCraken 1989) McCrackens (1989) meaning transfer model first merely seemed to be a theoretical concept but its practicality to real life was proved by two studies by Langmeyer and Walker (1991a and 1991b). In (1991a) they used a response elicitation format with a celebrity endorser Cher endorsing Scandinavian Health Spas and in (1991b) used celebrity endorsers - Madonna and Christie Brinkley and products - bath towels. VCRs, and blue jeans. The study results revealed that when celebrities combined with products, these perceived differences affected meanings perceived in products. Langmeyer and Walker's findings empirically supported the
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argument by McCracken (1989) that celebrities exemplify various meanings and these meanings are passed on to products through endorsements (Erdogan 1999).
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In India, the trend of Celebrity endorsements in advertising started in the latter part of the '80s (Katyal, 2007) when Bollywood and TV stars along with sportspersons made there breakthrough in the advertising world that was, until then, the exclusive domain of models (Kulkarni and Gaulkar, 2005). One of the first advertisements featuring celebrity in India was when Farokh Engineer became the first Indian cricketer to endorse a brand called Brylcream (Kulkarni and Gaulkar, 2005). Lux, the soap brand pioneered the expertise of celebrity endorsements in India and holds the record for the past 75 years to till date (Katyal, 2007). Early examples of celebrity endorsers include the famous actress Tabassum (Prestige Pressure Cookers), Jalal Agha (Pan Parag), famous cricketer Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) (Roy, 2006). Status and/or position in the society are important cultural values in the Indian culture (Hofstede, 1984). According to LaFerle and Choi (2005) Consistent to the previous thought of importance of status and social acceptance in the Indian society, celebrities may have a greater impact on endorsements. Celebrities are often associated with a high status due to their wide recognition in the society as well as exposure given to them through media. Therefore, celebrity endorsements are perceived as genuinely relevant and successful, in motivating consumers to buy the product (Kulkarni and Gaulkar, 2005). India is a country, which has always idolized the celebrities from the bollywood world; thereby providing an opportunity for marketers to use celebrities for product endorsements (Katyal, 2007). The best example to support this statement is the famous South Indian actor Rajnikanth, people have made temples dedicated to his glory (Dixit 2005). Indian film stars and celebrities have always provided lifestyle cues to youth in India. People get easily influenced and try to follow almost everything from a celebrity. Considering the popularity, size and reach of the celebrities in India it can be said that they have the power to influence the attitudes and behaviour of people, particularly youth (Malhotra 2005). Therefore, there is a race among the marketers to hire the most admired celebrity like Shahrukh Khan, Aamir Khan, Amitabh Bachchan and many others by paying huge pay packages to appear with the brand. Moreover, multiple celebrity endorsement is also not a new phenomenon in India. Many famous brands for example Coca-Cola is have more than one celebrity endorser. Coca-Cola is leading the chart by endorsing through 15 celebrities, followed Pepsi having 8 celebrity endorsers and around 3 for other related brands like Slice, Limca etc. On the contrary, there are few successful brands been established without using
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celebrity endorsements (Kulkarni and Gaulkar, 2005). Procter & Gamble promoted its Rejoice brand in India featuring an ordinary woman in their advertisement which helped them to reach the common people. Their belief that ordinary or common consumers, especially housewives, are more likely to be influenced by a lay person than a celebrity. There are some other examples include ParleG, Lifebuoy, Maruti 800, Close Up, Fevicol etc. According to the the latest report by TAM Adex, a division of TAM Media Research Priyanka Chopra is the Indias top brand endorser for the year 2009. She has edged past endorsement giants like Shahrukh Khan, Indian skipper MS Dhoni and Amitabh Bachchan. However Shahrukh khan has still the highest number of brands endorsed by him. He currently endorses 39 brands, including Pepsi, Hyundai, Airtel, Videocon, Sun Feast, Tag Heuer, Dish TV and Mayur Suitings. He is closely followed by India's cricket captain, Mahendra Singh Dhoni endorsing around 19 brands and reaping upto Rs 50 Cr an year. Katyal (2007) asserts that there is the presence of great potential for celebrity endorsement in India to be seen as truly relevant, thereby inducing customer to buy the product.
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Positive perception of ad, celebrity and brand when expertise and trustworthiness high Positive perception of ad, celebrity and brand when celebrity is familiar and likeable Positive perception of ad, celebrity, and brand
Source Credibility Model (Hovland and Weiss 1951 ) Match-up hypothesis (Kamins and Gupta 1994) Meaning transfer model (McCracken 1986)
Social adaptation theory, attributional theory, correspondence theory Transfer process of meaning from celebrity to product to consumer
The higher the perceived match between symbolic properties of the product and celebrities meanings drawn from his/her assumed roles, the higher the likelihood of consumers consumption and appropriation of products meanings.
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Celebrities are recognised as effective endorsers due to their symbolic aspirational reference group associations (Assael 1984; Solomon and Assael 1987). Taking the account of India where celebrities are idolised (Katyal 2007) and considered as heroes and opinion leaders (Biswas et al 2009). Marketers very cleverly use celebrities to endorse products and services through them. As earlier discussed in the literature review, celebrities possess distinctive attributes such as attractiveness, trustworthiness etc. (McCracken 1989). Many researchers have designed and explained various models regarding celebrity endorsements (see figure). Some authors suggested that celebrities lend their image or attributes to the products by appearing together in an advertisement. In this research the author has tried to find out how the attributes defined in these models influence the consumers purchase decision. Marketing communication represented in the model act as a mediator to transfer the celebrity-product message in order to influence consumers purchase decision. Celebrity endorsement is no more a new phenomenon in this world almost every brand is using celebrities to endorse their products. Today Consumers are well aware of these marketing techniques used by marketers in order to influence their purchase decision. Moreover, due to its extremeness and aggressive approach consumers might change their attitudes and perceptions about celebrity endorsements. Instead of all these controversies celebrity endorsements is a pervasive part of advertising industry. With reference to this, in this model the author has tried to find out the impact of celebrity endorsements on consumers buying behaviour.
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SOURCE ATTRACTIVENESS CELEBRITY PRODUCT MATCHUP Perceived fit between the product and celebrity. Similarity Familiarity Likeability PRODUCT
CONSUMER
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2.13.1 Hypotheses
To summarise the above discussion, it can be concluded that the attributes discussed above are the personal characteristics of a celebrity that marketers use in order to influence consumer buying behaviour. The main purpose of this study is to find out how these attributes affect consumers buying behaviour. To be able to fulfil the purpose of this research and answer research questions the author find it appropriate to test the relationship between consumer purchase intention and attributes discussed above. This led into generating the following hypotheses to test accordingly. H1: Celebrity endorsed advertisements are more attractive and influential than noncelebrity advertisements H2: The celebrity-product combination of attributes positively affects the purchase intention to buy a product or service. H2a: Expertise of the celebrity positively affects the purchase intention of the consumer. H2b: Trustworthiness of the celebrity positively affects the purchase intention of the consumer. H2c: Similarity between the celebrity and consumer positively affects the purchase intention of the consumer. H2d: Familiarity among the consumers positively affects the purchase intention of the consumer. H2e: Likeability among the consumers positively affects the purchase intention of the consumer. H2f: Product Fit/Match with the celebrity positively affects the purchase intention of the consumer. H2g: Meaning transfer from the celebrity to the product positively affects the purchase intention of the consumer. H3: Celebrity endorsers produce greater purchase intentions to buy a product than a noncelebrity endorser.
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2.14 Conclusion
The literature review discussed the main and relevant concepts regarding celebrity endorsements. The author first made the concept clear by differentiating between Celebrity and Non-celebrity endorsements and how celebrities form aspirational reference groups. The author has explained how marketers use celebrity endorsement strategy as a marketing tool to influence consumers buying behaviour. Further the author has shed some light on Pros and Cons of using celebrities as endorsers. The author has defined some other prevalent factors like use of multiple celebrities and its effects etc. It was noteworthy to highlight various different types of consumer buying behaviours. Furthermore the author has narrowed this additionally by specially focusing on consumer buying behaviour in India. The author has structured, organised and analysed many earlier empirical studies conducted by different authors on celebrity endorsements. Many of the researchers have shown that how the consumers get affected by celebrities (Soderlund 2003; McCraken 1989; Silvera and Austad 2004; Belch and Belch 2001). The author has used four different models namely Source Attractiveness Model (McGuire 1985), Source Credibility Model, (Hovland and Weiss 1951 ), Match-up hypothesis (Kamins and Gupta 1994), Meaning transfer model (McCracken 1986) regarding celebrity endorsements in order to check their impact on consumer buying behaviour. Alongside this, the last section of the chapter focussed on the prevalence of celebrity endorsement business in India. The author has based and focussed this study on India because given the current and future economic condition this business is expected to grow by leaps and bounds in India. As it is already been stated that celebrities hold a distinct status and position in Indian culture and treated with high regards. Moreover, availability of little research on account of understanding Indian consumers perception towards celebrity endorsements has enforced the author to conduct this research.
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METHODOLOGY
This chapter explains and justify the methodology used for conducting this research project. It begins with explaining the adopted research philosophy, research approach and design. Further it explains the data collection method, sampling technique and sample size, data analysis method and data quality issues. Finally, this chapter acknowledges the limitations and ethical issues of the research.
It is a capital mistake to theorise before one has data Arthur Conan Doyle
The term research philosophy relates to the development of knowledge and its nature (Saunders et al 2009). While conducting a research, an understanding of the philosophical principles is important as it may influence the choice of research strategy in the development of new knowledge (Saunders et al. 2009). Selected research philosophy contains important assumptions about the way one looks at the world (Saunders et al. 2009) and it guides the process of the research (Hussey and Hussey 1997). According to Johnson and Clark (2006) while conducting a research it is important to be aware of the philosophical commitments we make through our choice of research strategy as it has significant impact not only on what we do but we understand what is we are investigating. The understanding of philosophical issues is useful in three different ways (Easterby-Smith et al 2009). a) It helps to clarify research design; b) It helps the researcher to recognise which design will work and which will not; c) It may help the researcher identify and even create designs and also suggest how to adapt research designs according to constraints of different subjects or knowledge structures. There are two main philosophies associated with development of knowledge in social science research i.e. Positivism and Interpretivism or Phenomenology (Saunders et al, 2003). The doctrine of Positivism was first encapsulated by the French philosopher, Auguste Comte (1853), as he said All good intellects have repeated, since Bacons time, that there can be no real knowledge but that which is based on observed facts. The statement comprises two
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important assumptions: first, an ontological assumption, that reality is external and objective and second, an epistemological assumption, that knowledge is only significant if it is based on observable facts of reality (Easterby-Smith et al 2009). The key idea underlying the doctrine of positivism is that social world exists externally and its properties should only be measured by objective methods rather than by inferring subjectively through sensation, reflection or intuition (Easterby-Smith et al 2009). Positivist adopts the philosophical stance of the natural scientist (Saunders et al. 2009). According to Remenyi et al. (1998) Positivist work with an observable social reality that leads to resulting law like generalisations similar to those produced by the physical and natural scientist. This approach generates hypotheses that can be tested and that will thereby allow explanation of laws to be assessed (Bryman and Bell 2007). According to Aiken (1956) Positivism provides the best way for investigating human and social behaviour originated due to metaphysical speculation. This approach allows the researcher to conduct the research in a value-free way, and stay impartial to the subject of the research (Saunders et al. 2009). On the other hand, the term Interpretivism is derived from two intellectual traditions: phenomenology and symbolic interactionism. Phenomenology refers to the way we make sense of the world around us and Symbolic interactionism is a continual process of interpreting the social world around us (Saunders et al. 2009). It relates to understanding the rich insights of complex subjectivity of the lived experience (Saunders et al. 2009). Interpretivism states that it is important for the researcher to understand differences between human behaviour as social actors (Saunders et al. 2009). The researcher adopts an empathetic stance under interpretivist philosophy (Saunders et al. 2009). It is important for the researcher to understand and view the research subject from their point of view. Since business situations are complex and unique, many authors argued that an interpretivist approach is highly appropriate in the case of business and management research particularly for organisational behaviour, marketing and human resource management (Saunders et al. 2009). In consideration with above two mentioned philosophies, the author selects the positivism philosophy for the research. The decision is made in consideration with the research objectives i.e. examining the impact of celebrity endorsements on consumer buying behaviour. In order to achieve the intended aims and objectives of this research positivist approach seems to be most suitable for the research.
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From the above discussion and considering research questions, the author decides to adapt the quantitative research. Quantitative approach would help the author to collect large amount of data to answer the research questions and further leading to generalisation. Further the use of quantitative method is justified if the area of research topic is large and when there is a need to deduce casual relations between variables (Gordon and Langmaid 1988).
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data in a manner that aims to combine relevance to the research purpose with economy in procedure. Therefore, for this dissertation the author has justified the research design on the basis of research questions and objectives as well as by being consistent to the research philosophy as suggested by Saunders et al. (2009).
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observation, survey, questionnaire and personal interviews (Hussey and Hussey 1997). On the other hand, Secondary data involves collecting and analysing data which is already been collected by past researchers for some other purposes. It can be in the either form, raw data and published summaries (Saunders et al., 2003). For this research the author has used structured questionnaire method as a source to obtain primary data. And for the secondary data the author has gained data from the relevant text books, journals, reports, articles and the internet.
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primary data is a central source for this study. Thus the author has adopted survey strategy using Self-administered questionnaire technique in order to collect primary data for this study. The survey strategy allows the researcher to collect which can be analysed quantitatively using descriptive and inferential statistics. The data collected through survey strategy is easy to explain and understand (Saunders et al. 2009). Moreover, it can be used to suggest possible reasons for relationships between variables and to produce models of these relationships (Saunders et al. 2009).
3.7.3 Questionnaire
Within business and management research, the questionnaire is one of the most commonly used data collection technique within the survey strategy (Saunders et al. 2009). According to deVaus (2002) (cited in Saunders et al. 2009 pp. 360) generally questionnaire includes all the data collection techniques in which each respondent is asked to respond to the same set of questions in a predetermined order. Using questionnaire is an efficient way of collecting responses from a large number of people because every respondent is asked to respond to the same set of questions. Moreover it can avoid bias in data collection process (Saunders et al. 2009). As a result, questionnaire tends to be the most reasonable and appropriate method in collecting data from large number of people in order to fulfil the aims and objectives of the research study.
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Section two comprises questions to explore and examine the current state of consumer perception about celebrity endorsements. Section three deals with evaluating the impact of each celebrity attribute on the purchase intention of consumers. Finally the section four is aimed at evaluating the overall impact of celebrity endorsements on consumer purchase intention. All the three sections were made coherent so that respondents can understand them easily and take the correct meaning of them. Moreover, the business jargons or complicated terms are made easy by providing a small definition at the end of the questions. The author used 5 point likert scale for evaluating the degree of agreement for each question. Likert scale questions are relatively easy to complete (Robson 1993). The author promised to keep the confidentiality of demographic profile of the respondents. In order to get the high response rate the author pre contacted the friends and colleagues through email, telephone, SMS etc. The questionnaire was designed and distributed using the link provided by website (www.surveymonkwey.com). The questionnaire was distributed through email, social networking websites etc. The copy of online questionnaire is attached in (Appendix 3).
3.8 Sampling
Determining an appropriate research population and proper sampling procedure is an important aspect for a researcher in order to answer research questions. According to
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Jankowicz (2000) Sampling is a calculated choice of number of the people, representing a given population. Since, it is impossible for the author to survey the whole population due to time, money and access constraints it becomes important for the author to determine sampling size and sampling frame, in order to gather findings from the representative set of population.
Figure 6: Types of Sampling Techniques (Source: Saunders et al. 2009) According to Churchill (1995) sampling procedure can be divided into two parts namely probability and non-probability sampling. Saunders et al (2009) defined probability sampling as chance of each case being selected from the population is known and equal. Probability is based on statistical study. Whereas, non-probability sampling is a case where sample has not been selected using the random selection method. It implies that some units are more likely to be selected than others in a given population (Bryman and Bell, 2003). According to Aczel and Sounderpandian (2002) under probability sampling the chances of a sample being selected from a population is based on the principle of randomisation or chance. Hence probability sampling is more complex, time consuming and costly as compared to non-probability sampling (Saunders et al. 2003). For business and management studies, the research questions, objectives and choice of research strategy may often use non-probability
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sampling (Saunders et al. 2007 pp. 170). There are many advantages of non-probability sampling: Non-probability sampling is relatively cheaper and is used when sampling frame is not available (Saunders et al. 2003). It is also useful in a research where the researcher wants to investigate the attitude and perceptions of people (Churchill 1995). Based on the above discussion, the author will use non-probability sampling for this research. The main argument for this is limited time and resources. Secondly, non-probability sampling is associated with recognising and questioning the respondents on the basis of their background and past experience (Jankowicz 2005).
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3.9.1 Reliability
Reliability refers to the extent to which your data collection techniques or analysis procedures will yield consistent findings (Saunders et al. 2009 pp. 156). Further, Cooper and Schindler (2003) stated that reliability involves supplying consistent findings. Reliability of the research refers to the ability of the research to generate same findings to the same questions if the research is repeated or conducted again (Hussey and Hussey 1997). According to Easterby-Smith et al (2008) Reliability of the research can be tested by posing the following three questions (Cited in Saunders et al. 2009): Do the measures produce the same findings on other occasions? Did other authors reached the same findings? Is there a transparency in the sense raw data was analysed?
Since this research is based on celebrity endorsements in Indian context. In order to ensure the reliability of the research, the author has collected the data from Indian consumers who are extensively exposed to billion dollar celebrity endorsements business in India. Moreover, the author has conducted a pilot test to reduce the confusions in the questionnaire and make it more meaningful for the respondents.
3.9.2 Validity
According to Hussey and Hussey (1997) Validity is concerned with the extent to which the research findings accurately represent what is really happening in the situation. Reliability is concerned with the fact whether the findings are really about what they seem to be about (Saunders et al. 2009). Silverman (2000) made is more simple to define by stating that Validity is a synonym for truth. Furthermore Janskowicz (2000) revealed that validity deals with the accuracy of the measurements used for data collection and analysis, the data is valid if other researcher can reach to the same conclusion using other methods. The author has maintained the validity of the research by conducting a pilot test before conducting the main research in order to avoid any confusion and amendments were made
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thereafter. Moreover, the author has tried to explain each and every step during the research before arriving to the conclusion.
3.9.3 Generalizability
Generalisability can also be referred to as external validity (Saunders et al. 2009). It refers to the extent to which the research findings are generalisable: i.e. whether the findings are equally applicable to other research settings, for instance organisations (Saunders et al. 2009). Further Hussey and Hussey (1997) suggested that there is a relationship between sample population and research findings by stating that greater the sample size, greater the generalisability. Since different people have different ideas and views selecting smaller sample size might not represent the wider population. Moreover it is virtually impossible to sample the whole representative population. Additionally use of convenience sampling makes it more difficult to analyse sample as a whole population. However, in order to improve the generalisability of the research only relevant questions intended to examine the impact of celebrity endorsement on consumer behaviour (purchase decision) are being asked.
Correlation Analysis
Correlation is one the most important statistical analysis tool. It helps to describe the degree of relationship between two variables. Correlation determines the extent to which changes in the value of an attribute are associated with changes in another attribute. The author will use correlation analysis technique to measure the relationship between different attributes of celebrities and purchase intention and testing the hypotheses.
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Regression Analysis
Regression analysis is used for modelling and analysing several variables. It is used to examine the relationship between a dependent variable and one or more independent variables. In this research dependent variable is purchase intention and independent variables are the various attributes of celebrity endorsers. Correlation analysis will help the author to examine and understand how the value of dependent variable changes when any one of the independent variable changes, while other variables are constant. For this research the author will use simple linear regression analysis.
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suggested for future research. Future research can be conducted on a broader scale on the basis of sex, disposable income and product categories.
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This chapter provides results obtained from the survey, which have been examined and evaluated through data analysis techniques. Findings are subjected to hypotheses testing. This chapter evaluates the relationship between celebrities attributes and consumes intention to purchase and later overall impact of celebrity endorsements on consumer purchase intention.
In the first research question, the author tried to evaluate the common perception of Indian consumers about celebrity endorsed advertisement as compared to non-celebrity advertisements. Accordingly a number of questions were asked to the respondents to evaluate celebrity endorsed advertisements on different basis for instance: attractiveness, Influential etc. By getting answers to these questions the author can illustrate the clear picture of their perception and attitude towards celebrity endorsements.
Firstly the respondents were asked to rate what attracts them more, an advertisement featuring a celebrity or non-celebrity advertisement. The results show that celebrity endorsed advertisements are more effective at attracting people as compared to non-celebrity advertisements. The descriptive frequency analysis of the data shows that 83.6% of the respondents favoured celebrity endorsed advertisements whereas non-celebrity
advertisements accounted for only 16.3% of sampled population. The results celebrity endorsed advertisements attract more consumer attention.
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| Celebrity endorsed
advertisements Non-celebrity advertisements Total
87 17 104
Later using the descriptive statistical analysis, the data was analysed on the basis of age groups. The respondents under the age of 18, categorised as (teenagers) showed significant results. They are most attracted by celebrity endorsed advertisements. The results show that 91.7 % of the teenagers find celebrity endorsements more attractive. Comparatively, the people under the age group of 18-30 (Youngsters) were a bit less attracted by celebrity advertisements but were still high at 81%. Lastly, the people above the age group of 30 categorised as mature customers also came up with similar results. 83.6% of mature customers find celebrity advertisements more attractive. The analysis of data shows that celebrity endorsed advertisements has the potential to attract the consumers across all age groups. However, teenagers are most attracted by celebrity endorsed advertisements.
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Table 6: Age * More attractive Crosstabulation Count Celebrity endorsed advertisements Age less than 18 years 18-30 30 and above Total 11 60 16 87 More attractive Non-celebrity advertisements 1 14 2 17 12 74 18 104 Total
Figure 9: Attractiveness (Age group analysis) Further analysis on the basis of gender shows that Males are more likely to be attracted by celebrity endorsed advertisements as compared to females. The results show that 84% of male respondents find celebrity endorsed advertisements attractive closely followed by 82.8% female respondents. The result shows a mixed response in terms of gender since both the genders find celebrity endorsed advertisement more attractive than non celebrity advertisements.
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Overall, from the above analysis it can be inferred that celebrity endorsed advertisements are more attractive at drawing consumer attention across all age groups and genders as compared to non-celebrity endorsements.
Does the presence of celebrities in the advertisement help you recognise and recall the product more promptly?
Secondly, the respondents were asked whether celebrity endorsed advertisements help them to recognise and recall the products more quickly. The frequency analysis shows that majority of the respondents agree (62.5%) that associating celebrities with the product increases the recognition and recall rate for a certain product. Some respondents also slightly agree (25%) to the statement. On the other hand only 5.8% of the respondents are Not sure about the statement and only 6.7% of the respondents are either slightly disagree or disagree. Overall 87.5% of the respondents agree that they can more promptly recognise and recall a product if a celebrity is associated or endorsing it. Moreover, statistical analysis of data (Mean: 1.59, Mode: 1.00) also validates the statement that most of the people agree that the presence of celebrities in the advertisement help recognising and recalling the product more promptly.
Table 7: Statistical Analysis of Recognise and Recall rate Variable Recognise & Recall Mean 1.59 Median 1.00 Mode 1.00 Std. Deviation .970
Table 8: Recognise & Recall rate Frequency Valid Agree Slightly agree Not sure Slightly disagree Disagree Total 65 26 6 4 3 104 Percent 62.5 25.0 5.8 3.8 2.9 100.0 Valid Percent 62.5 25.0 5.8 3.8 2.9 100.0 Cumulative Percent 62.5 87.5 93.3 97.1 100.0
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Further analysis on the basis of age groups shows the similar trend. The respondents across all the age groups mostly agree or slightly agree only a few respondents either slightly disagree or disagree with the statement. Consequently it can be inferred that associating celebrities with products helps consumers recognising and recalling the product more promptly.
Table 9: Age * Recognise/Recall Crosstabulation Recognise/Recall Count Age less than 18 years 18-30 30 and above Total Agree 9 45 11 65 Slightly agree 1 20 5 26 Not sure 1 4 1 6 Slightly disagree 0 3 1 4 Disagree 1 2 0 3 Total 12 74 18 104
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How influential do you perceive celebrity endorsements as compared to non-celebrity endorsements? Thirdly the respondents were asked how influential do they think celebrity endorsement is at prompting intention to purchase for a product or service being endorsed by the celebrity endorser as compared to non-celebrity advertisement. This is an important question as the main aim of any advertisement whether celebrity or non-celebrity is to influence the customer to buy a certain product or service. Table 10: Descriptive Statistical Analysis of Influential Variable Influential Mean 2.06 Median 2.00 Mode 2.00 Std. Deviation .779
The results from the descriptive analysis of the data shows that people consider celebrity endorsements as an influential factor in prompting purchase intention. The analysis shows that 24% of the respondents believe that celebrity endorsement is very influential and almost half of the respondents 48.1% consider it as an influential factor. That means majority of the respondents believe that celebrities can influence their purchase intention for a certain
product or service being endorsed by them. On the contrary, 25% of the respondents believe that it is somewhat influential means celebrities may have a little influence on their purchase
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intention. Whereas only a few number of respondents 2.9% contend it to be not at all influential.
The statistical analysis of the data (Mean:2.06) and (Mode:2.00) also validate the statement that employing celebrity in an advertisement can influence the purchase decision of the consumers.
Table 11: Summary of Influential Frequency Valid Very influential Influential Somewhat influential Not at all influential Total 25 50 26 3 104 Percent 24.0 48.1 25.0 2.9 100.0 Valid Percent 24.0 48.1 25.0 2.9 100.0 Cumulative Percent 24.0 72.1 97.1 100.0
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Table 12: Age * Influential Crosstabulation Count Very influential Influential Influential Somewhat influential Not at all influential 1 1 1 3
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Total
Age
8 10 7 25
2 45 3 50
1 18 7 26
12 74 18 104
Further descriptive analysis on the basis of age states that majority of respondents (83.3%) under the age of 18 years consider celebrity endorsements either very influential or influential and only 16% of respondents either consider it as somewhat influential or not at all influential. It shows that majority of teenagers find celebrity endorsements influential in prompting their purchase decision. In the age group of 18-30, 13.5% believe it very influential and majority 60% of respondents consider as influential. Only 25% of respondents consider it to be neutral or not at all influential but that is still more than that of under 18 years age group. The mature consumers above the age of 30 gave neutral results where 55% of the respondents under this age group consdier it as very influential or influential 45% of the people beleive it as neutral or not at all influential. From the above analysis it can be said that teenagers are most likely to influenced by celebrity endorsements followed by young people and then mature customers above the age group of 30 years.
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non-celebrity advertisements
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The figure below represents the correlation among seven attributes namely expertise, trustworthiness, similarity, familiarity, likeability, match-up and meaning transfer with purchase intention.
EX
TW
SM
FM
LK
MU
MT
1.000 .370** .530** .431** .369** 1.000 .588** .543** .421** 1.000 .670** .382** .309** 1.000 .509** .293** 1.000 .344** 1.000
Meaning transfer .200* .219* .343** .244** N = 104 **. Correlation is significant at the 0.01 level (1-tailed). *. Correlation is significant at the 0.05 level (1-tailed).
All seven of the tested attributes/variables expertise (.394), trustworthiness (.379), similarity (.453), familiarity (.479), likeability (.377), match-up (.257) and meaning transfer (.200) interact with the dependent factor (Purchase intention) in a positive manner; proving one tailed, positive correspondence between above mentioned variables. Therefore, hypotheses H2a, H2b, H2c, H2d, H2e, H2f, and H2g are supported and accepted.
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Regarding the strength of relationship between dependent and tested variables, Match-up (.257) and Meaning transfer (.200) seem to have a low but still positive relationship with purchase intention. Whereas, likeability (.377), trustworthiness (.379) and expertise (.394) have moderately good relationship. Similarity (.453) and familiarity (.479) hold significantly good relationship with purchase intention. Correlation matrix results prove the strongest relationship of familiarity (.479) with purchase intention. Additionally, in order to represent the overall opinion of respondents descriptive statistics results are mentioned in the table below:
Table 14: Descriptive Statistics of Attributes Mean Std. Deviation Purchase Intension Expertise Trustworthiness Similarity Familiarity Likeability Match up Meaning transfer 2.1538 2.1154 2.3654 2.4327 2.4135 2.3269 2.1058 2.3558 .96310 1.24095 1.30017 1.12141 1.24332 1.15281 1.03265 1.20612
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Model
R Square
Change Statistics F Change 18.730 df1 1 df2 102 Sig. F Change .000
.394
.155
.155
Sum of Squares
df
Sig.
a
1 102 103
18.730
.000
The results show that the relationship between expertise and purchase intention is quite reasonable (R=.394), only 14.7% variance (Adjusted R2). 14.7% of purchase intention variability is explained by expertise. This means that 85.3% of the variation in purchase intention cannot be explained by expertise alone. Therefore, there must be other variables that may influence purchase intention. F=18.73, one tailed p < .001. The regression equation for predicting the purchase intention on the basis of expertise value is:
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Coefficients Model Unstandardized Coefficients B 1 (Constant) Expertise 1.507 .306 Std. Error .173 .071 .394
a
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Sig.
8.711 4.328
.000 .000
The result obtained through the regression analysis regarding direct relationship between the two variables suggest that if the source is more expert then it may have significant impact on consumers purchase intention ( coefficient of Expertise = .306). 4.2.2.2 The Impact of Trustworthiness The second question examines the impact of Trustworthiness on the purchase intention of consumers. The table below represents the results of simple linear regression analysis of relationship between trustworthiness and purchase intention of consumers (H2b).
Model
R Square
Model Summary Std. Error of the R Square Estimate Change .89579 ANOVA
b
.379
.143
.143
17.059
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
13.689 .802
17.059
.000
The results show that the relationship between trustworthiness and purchase intention is quite reasonable (R=.379), only 13.5% variance (Adjusted R2). 13.5% of purchase intention variability is explained by trustworthiness. The analysis once again verifies the positive relationship between trustworthiness and purchase intention. Overall, the regression model was quite good with (F=17.05), one tailed p < .001.
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Coefficients Model Unstandardized Coefficients B 1 (Constant) Trustworthiness 1.491 .280 Std. Error .183 .068
Sig.
.000 .000
The regression equation for predicting the purchase intention on the basis of trustworthiness value is:
The regression analysis result state the direct proportional relationship between the two variables. If the source is more trustworthy then it will have significant impact on consumers purchase intention ( coefficient of trustworthiness = .280).
Hence both hypotheses from source credibility model: H2a and H2b are analysed and supported through empirical test. Both the variables Expertise (14.7%) and Trustworthiness (13.5%) show positive results on the purchase intention. Therefore both the hypotheses are accepted.
H2a: Expertise of the celebrity affects the purchase intention of the consumer H2b: Trustworthiness of the celebrity affects the purchase intention of the consumer
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4.2.2.3 The Impact of Similarity Similarity is an attribute from source attractiveness model. This question examines the impact of similarity on the purchase intention of consumers. The table below represents the results of simple linear regression analysis in order to test the hypothesis (H2c).
Model Summary Std. Error of the R Square Estimate Change .86273 ANOVA Model 1 Regression Residual Total
a. Predictors: (Constant), Similarity b. Dependent Variable: Purchase Intension
b b
Model
R Square
.453
.205
.205
26.358
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
19.619 .744
26.358
.000
The results show that the relationship between similarity and purchase intention is quite reasonable (R=.453), only 19.8% variance (Adjusted R2). 19.8% of purchase intention variability is explained by similarity. The analysis derives the positive relationship between similarity and purchase intention. (F=26.35) , one tailed p < .001.
Coefficients Model Unstandardized Coefficients B 1 (Constant) Similarity 1.207 .389 Std. Error .203 .076 .453
a
Sig.
5.950 5.134
.000 .000
he regression equation for predicting the purchase intention on the basis of similarity value is:
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The regression analysis result state the direct proportional relationship between the two variables. If the source is more trustworthy then it will have significant impact on consumers purchase intention ( coefficient of similarity = .389).
4.2.2.4 The Impact of Familiarity Familiarity is a next variable from source attractiveness model. In this question we will analyse the impact of familiarity on the purchase intention of consumers. The table below represents the results of simple linear regression analysis in order to test the hypothesis (H2d).
Model Summary Std. Error of the R Square Estimate Change .84967 ANOVA Model 1 Regression Residual Total
a. Predictors: (Constant), Familiarity b. Dependent Variable: Purchase Intension
b b
Model
R Square
.479
.229
.229
30.336
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
21.901 .722
30.336
.000
The results show that the relationship between familiarity and purchase intention is quite reasonable (R=.479), only 22.2% variance (Adjusted R2). 22.2% of purchase intention variability is explained by similarity. The analysis derives the positive relationship between familiarity and purchase intention. (F=30.33) , one tailed p < .001.
Coefficients Model Unstandardized Coefficients B 1 (Constant) Familiarity 1.259 .371 Std. Error .183 .067 .479
a
Sig.
6.892 5.508
.000 .000
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The regression equation for predicting the purchase intention on the basis of familiarity value is:
The regression analysis result state the direct proportional relationship between the two variables. If the source is more familiar then it will have significant impact on consumers purchase intention ( coefficient of similarity = .371). 4.2.2.5 The Impact of Likeability Likeability is the next variable from source attractiveness model. In this question we will analyse the impact of likeability on the purchase intention of consumers. The table below
represents the results of simple linear regression analysis in order to test the hypothesis (H2e).
Model
R Square
Adjusted R Square
Model Summary Std. Error of the R Square Estimate Change .89643 ANOVA
b
.377
a
.142
.134
.142
16.890
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
13.572 .804
16.890
.000
The results show that the relationship between likeability and purchase intention is quite reasonable (R=.142), only 13.4% variance (Adjusted R2). 13.4% of purchase intention variability is explained by likeability. The analysis derives the positive relationship between familiarity and purchase intention. (F=30.33) , one tailed p < .001. Overall, the regression model was significant with
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Coefficients Model Unstandardized Coefficients B 1 (Constant) Likeability 1.421 .315 Std. Error .199 .077
Sig.
.000 .000
The regression equation for predicting the purchase intention on the basis of likeability value is:
The regression analysis result state the direct proportional relationship between the two variables. If the source is more familiar then it will have significant impact on consumers purchase intention ( coefficient of similarity = .315). Hence all three hypotheses from source attractiveness model: H2c, H2d and H2e are analysed and supported through empirical test. The variables Similarity (20.5%) and Familiarity (22.9%) and Likeability (14.2%) show positive results on the purchase intention. Therefore all three of the hypotheses are accepted.
H2c: Similarity between the celebrity and consumer affects the purchase intention of the consumer. H2d: Familiarity among the consumers affects the purchase intention of the consumer. H2e: Likeability among the consumers affects the purchase intention of the consumer.
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4.2.2.6 The Impact of Product Match up on Purchase Intention This hypothesis intends to examine the impact of Product match up on the purchase intention of the consumers. The regression analysis represents relatively low impact on the purchase intention of consumers (R = .257) with considerably low (R2 adjusted = .057). Resultantly, It can be inferred from the regression analysis that Product match up accounts for only 5.7% of variance in purchase intention value that is very low as compared to other variables. Overall, the regression model was quite moderate with (F=7.20), one tailed p < .001.
R Square
.257
.066
7.202
102
df 1 102 103
F 7.202
Sig. .008
a
The regression equation for predicting the purchase intention on the basis of Match-up is:
Sig.
7.888 2.684
.000 .008
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The regression analysis result state the direct proportional relationship between the two variables. If the attributes of source matches up more then it will have positive impact on consumers purchase intention ( coefficient of Match-up = .240). On the basis of above regression analysis it is proved that Match-up (5.7%) show positive results on the purchase intention. Although the impact is considered to be less but it lays positive impact on the purchase intention. Therefore the hypothesis is accepted.
H2f: Product Fit/Match with the celebrity affects the purchase intention of the consumer
4.2.2.7 The Impact of Meaning transfer on Purchase Intention This hypothesis intends to examine the impact of meaning transfer on purchase intention of consumers. The regression analysis shows that this variable has least impact on the purchase intention as compared to other variables. (R = .200) with almost minimal (R2 adjusted = .031). Therefore, on the basis of results from regression analysis and considering the variance of 3.1% it can be said that it is the least important variable in order to influence purchase intention. Overall, the regression model was modest with (F=4.267), one tailed p < .001.
Model Summaryb Model 1 R .200a R Square .040 Adjusted R Square .031 Std. Error of the Estimate .94818 ANOVAb Model 1 Regression Residual Total
a. Predictors: (Constant), Credibility b. Dependent Variable: Purchase Intension
df 1 102 103
F 4.267
Sig. .041a
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The regression equation for predicting the purchase intention on the basis of Meaning transfer is:
Sig.
8.676 2.066
.000 .041
The regression analysis result state the direct proportional relationship between the two variables. If the source is capable of transferring the meaning to the product then it will have positive impact on consumers purchase intention ( coefficient of Meaning transfer = .160). On the basis of above regression analysis it is proved that Meaning transfer (3.1%) show positive results on the purchase intention. Although the impact is least as compared to other attributes but it is represents the positive impact on the purchase intention. Therefore the hypothesis is accepted.
H2g: Meaning Transfer from the celebrity to the product affects the purchase intention of the consumer
4.2.3 Summary
The overall linear regression analysis proves the positive relationship between purchase intention and seven different attributes namely expertise, trustworthiness, similarity, familiarity, likeability, match-up and meaning transfer. The figure () illustrates that linear regression assumptions are met and therefore it can be stated that all these attributes have positive effect on purchase intention of consumers.
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Table 30: Expertise of Celebrity and Purchase Intention Valid Agree Slightly agree Not sure Slightly disagree Disagree Total Frequency 41 35 11 9 8 104 Percent 39.4 33.7 10.6 8.7 7.7 100.0 Valid Percent 39.4 33.7 10.6 8.7 7.7 100.0 Cumulative Percent 39.4 73.1 83.7 92.3 100.0
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Figure 16: Expertise of Celebrity and Purchase Intention As a consumer, do you consider Trustworthiness of the celebrity as an attribute that can influence your purchase decision? (Trustworthiness refers to the Honesty and believability of the celebrity) The aim of this question is to evaluate the impact of Trustworthiness of the celebrity at influencing the purchase decision of consumers. Majority of the respondents (41.3%) slightly agree that trustworthiness of the celebrity can influence their purchase decision. Secondly, another 27.9% of the respondents strongly agree to the statement that means they consider the trustworthiness of the celebrity while making their purchase decision. However, 7.7% of the respondents are unsure about the impact of trustworthiness on their purchase decision. Only 12.5% of the respondents slightly disagree and 10% completely disagree to the statement. Overall, using the descriptive analysis, it can be said that Trustworthiness can influence the purchase intention of the consumers. Table 31: Descriptive Statistical Analysis of Trustworthiness Attribute Trustworthiness Mean 2.36 Mode 2.00 Std. Dev 1.30
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Table 32: Trustworthiness of Celebrity and Purchase Intention Valid Agree Slightly agree Not sure Slightly disagree Disagree Total Frequency 29 43 8 13 11 104 Percent 27.9 41.3 7.7 12.5 10.6 100.0 Valid Percent 27.9 41.3 7.7 12.5 10.6 100.0 Cumulative Percent 27.9 69.2 76.9 89.4 100.0
As a consumer, do you think the sense of Similarity between you and the celebrity endorser can influence your purchase decision for a certain product or service? (Similarity refers to the sense of similarity a consumer feels with a celebrity) The aim of this question is to evaluate the impact of Similarity on the purchase decision of consumers. Majority of the respondents (49%) slightly agree that sense of similarity between the celebrity and them can influence their purchase decision. Secondly, only 16.3% of the respondents strongly agree that means they feel similarity as a factor to influence their purchase decision. On the other hand, 18.3% of the respondents are unsure about the sense of similarity on their purchase decision. Only 7.7% of the respondents slightly disagree and
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8.7% completely disagree. Overall, using the descriptive analysis, it can be said that Similarity may influence the purchase intention of the consumers. Table 33: Descriptive Statistical Analysis of Similarity Attribute Similarity Mean 2.43 Mode 2.00 Std. Dev 1.12
Table 34: Similarity of Celebrity and Purchase Intention Valid Agree Slightly agree Not sure Slightly disagree Disagree Total Frequency 17 51 19 8 9 104 Percent 16.3 49.0 18.3 7.7 8.7 100.0 Valid Percent 16.3 49.0 18.3 7.7 8.7 100.0 Cumulative Percent 16.3 65.4 83.7 91.3 100.0
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As a consumer, do you consider the Familiarity of the celebrity as an attribute that can influence your purchase decision for a certain product or service? This question aims at evaluating the impact of celebritys Familiarity on the purchase intention of consumers. Majority of the respondents (46.2%) slightly agree that familiarity of the celebrity can influence their intention to purchase. 22.1% of the respondents strongly agree that knowness of the celebrity can influence their purchase intention. Interestingly, 10.6% of the respondents are unsure 10.6% slightly disagree and 10.6% completely disagree to the statement that familiarity can be an important factor to influence their purchase intention. Based on the results it was found that it may influence the purchase intention of the consumers to an extent. Table 35: Descriptive Statistical Analysis of Familiarity Attribute Familiarity Mean 2.41 Mode 2 Std. Dev 1.24
Table 36: Familiarity of Celebrity and Purchase Intention Valid Agree Slightly agree Not sure Slightly disagree Disagree Total Frequency 23 48 11 11 11 104 Percent 22.1 46.2 10.6 10.6 10.6 100.0 Valid Percent 22.1 46.2 10.6 10.6 10.6 100.0 Cumulative Percent 22.1 68.3 78.8 89.4 100.0
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Figure 19: Familiarity of Celebrity and Purchase Intention As a consumer, do you consider the Likeability of the celebrity as an attribute that can influence your purchase decision for a certain product or service? (Likeability refers to the level of celebritys fame in the public opinion and how popular the celebrity is) This question aims at evaluating the impact of celebritys Likeability on the purchase intention of consumers. Majority around half of the respondents (45.2%) slightly agree that likeability of the celebrity is likely to influence their purchase intention. 23.1% of the respondents strongly agree that their purchase intention is affected if their favourite celebrity id endorsing the product or service. 15.4% of the respondents are unsure about the it while 8.7% slightly disagree and 7.7% completely disagree to the statement. Overall, it was found that likeability is most likely to influence the purchase intention of the consumers if their favourite celebrity is endorsing the product or a celebrity.
Table37: Descriptive Statistical Analysis of Likeability Attribute Matchup Mean 2.32 Mode 2 Std. Dev 1.15
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Table 38: Likeability of Celebrity and Purchase Intention Frequency Percent Valid Percent Cumulative Percent 24 47 16 9 8 104 23.1 45.2 15.4 8.7 7.7 100.0 23.1 45.2 15.4 8.7 7.7 100.0 23.1 68.3 83.7 92.3 100.0
As a consumer, do you think the Match between the celebrity and the product can an important attribute in influence your purchase decision for a certain product or service? (Fit/Match refers to the level how well the fit between the celebrity and the product is) This question aims at investigating if it is important to have something in common between the celebrity and the product being endorsed in order to influence consumers purchase intention. Majority, nearly half of the respondents (46.2%) slightly agree that Product-
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celebrity match-up can influence their purchase intention. Another 28.8% of the respondents strongly agree that they look for commonness between the celebrity and the product. 15.4% of the respondents are unsure while only 4.8% slightly disagree and 4.8% completely disagree to the product-celebrity match up phenomena. Overall, it was found that 75% of respondents consider product-celebrity match-up as a factor to influence their purchase intention while only rest 25% are either not sure, slightly disagree or completely disagree. Therefore it can be said that its important the attributes of product should match with the celebrity in order to influence their purchase intention. Table39: Descriptive Statistical Analysis of Matchup Attribute Matchup Mean 2.10 Mode 2 Std. Dev 1
Table 40: Matchup of Celebrity and Purchase Intention Valid Agree Slightly agree Not sure Slightly disagree Disagree Total Frequency 30 48 16 5 5 104 Percent 28.8 46.2 15.4 4.8 4.8 100.0 Valid Percent 28.8 46.2 15.4 4.8 4.8 100.0 Cumulative Percent 28.8 75.0 90.4 95.2 100.0
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Do you think celebrities can provide or transfer meaning to the product and influence your purchase intentions based on celebritys age, gender and lifestyle? (Meaning Transfer refers to the meaning a celebrity brings or transfers to a certain product with the help of their personality and lifestyle) This question is asked to the respondents to check whether associating a celebrity can bring meaning to the product or service being endorsed by him thereby influencing consumer purchase intention. The majority of the respondents (35.6%) slightly agree that celebrities can transfer meaning to a product that can influence their purchase intention. Another 26.9% of the respondents strongly agree that their purchase intention is affected through the meaning transfer from celebrity to the product. However, considerably more 21.2% of respondents are unsure. On the other hand 7.7% of the respondents slightly disagree and 8.7% completely disagree with influence of meaning transfer process. Overall, it was found that 62.5% of respondents see meaning transfer as a factor to influence their purchase intention while 37.5% are either not sure, slightly disagree or completely disagree. Therefore it can be said that meaning transfer process is likely to influence the purchase intention of most of the consumers. Table 41: Descriptive Statistical Analysis of Meaning Transfer Attribute Meaning Transfer Mean 2.35 Mode 2 Std. Dev 1.20
Table 42: Meaning Transfer of Celebrity and Purchase Intention Valid Agree Slightly agree Not sure Slightly disagree Disagree Total Frequency 28 37 22 8 9 104 Percent 26.9 35.6 21.2 7.7 8.7 100.0 Valid Percent 26.9 35.6 21.2 7.7 8.7 100.0 Cumulative Percent 26.9 62.5 83.7 91.3 100.0
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In this section, the respondents were asked to rate the self-perceived importance of each attribute as a factor to influence their purchase decision. Each of the six attributes was evaluated on a scale ranging from 1, Not at all important, to 5, extremely important. The results were analysed using the descriptive frequency analysis through SPSS. The results of respondents perceived importance are averaged and represented in the table below.
Table 43: Descriptive Statistical Analysis of Each Attribute Variable/Attribute Expertise Trustworthiness Similarity Likeability Product Match up Meaning transfer Mean 4.22 4.11 3.06 3.34 3.00 3.18 Std. Dev .944 .927 1.05 1.13 1.26 1.18 Ranking 1 2 5 3 6 4
The results of the self-perceived importance of attribute (Mean) shows that Expertise (4.22) is the most important attribute. Second important attribute is Trustworthiness (4.11). Likeability (3.34) is ranked third and Meaning transfer (3.14) at fourth. Interestingly, Similarity (3.06) and product match-up (3.00) are very closely followed by each other. However, Product match-up is considered to be the least important attribute rated by the respondents (See Table below).
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The three questions asked to the respondents in the questionnaire are as follows: PI 01 Im likely to purchase products or services that have been endorsed by celebrities. PI02 I do purchase products and services endorsed by celebrities. PI03 In overall, Im happy with purchasing products or services advertised by celebrities. The respondents were asked to rate each of these questions on the likert scale ranging 1 (Agree) to 5 (strongly disagree). Table 45: Statistical Analysis Purchase Intention 01 Frequency Agree Slightly agree Not sure Slightly disagree Disagree Total 46 27 18 8 5 104 Percent 44.2 26.0 17.3 7.7 4.8 100.0 Valid Percent 44.2 26.0 17.3 7.7 4.8 100.0 Cum. Percent 44.2 70.2 87.5 95.2 100.0
The results from the descriptive frequency analysis for question 1 states that majority of the respondents (44.2%) are likely to purchase products endorsed by celebrities. 26% of
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respondents slightly agree to the statement as well. However, 17.3% of respondents are unsure whether they are likely to purchase products endorsed by celebrities. On the other hand, only 7.7% of respondents slightly disagree and 4.8% disagree about the influence of celebrities on their likeliness to buy products under celebrity influence. Table 46: Statistical Analysis Purchase Intention 02 Frequency Agree Slightly agree Not sure Slightly disagree Disagree Total 37 26 32 5 4 104 Percent 35.6 25.0 30.8 4.8 3.8 100.0 Valid Percent 35.6 25.0 30.8 4.8 3.8 100.0 Cum. Percent 35.6 60.6 91.3 96.2 100.0
The analysis results from question 2 suggests that majority of the respondents (35.6%) do actually purchase products under the influence of celebrities. 25% of respondents slightly agree that means they do sometimes buy the endorsed products as well. However, a major number of respondents 30.8% are not sure whether they purchase the products under the influence by celebrities or not. Relatively high degree of unsure respondents 30.8% might bias the results. On the other hand, only very less number 4.8% of respondents disagree and 3.8% disagree about the influence of celebrities on their purchase decision. However, overall 60.6% of respondents show positive response by stating that they buy products and services endorsed by celebrities. Table 47: Statistical Analysis Purchase Intention 03 Frequency Agree Slightly agree Not sure Slightly disagree Disagree Total 40 31 24 3 6 104 Percent 38.5 29.8 23.1 2.9 5.8 100.0 Valid Percent 38.5 29.8 23.1 2.9 5.8 100.0 Cum. Percent 38.5 68.3 91.3 94.2 100.0
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The results from analysis of question 3 represent the overall happiness or satisfaction level of respondents after buying products or services endorsed by celebrities. The analysis shows that majority of the respondents (38.5%) strongly agree that they are happy after their purchases of products endorsed by celebrities. While 29.8% of respondents are likely to be happy for their purchases as they slightly agree as well. Again 23.1% of people are neutral about their purchase decisions for the products endorsed by celebrities. Interestingly, only a few number of people slightly disagree (2.9) and disagree (5.8%) are not happy with their purchase decisions made under celebrity influence.
Valid 1 (Agree) 1.333 1.666 2 (Slightly agree) 2.333 2.666 3 (Not Sure) 3.333 3.666 4 (Slightly disagree) 4.333 4.666 5 (Disagree) Total
Cum. Percent 30.8 38.5 45.2 51.9 65.4 76.0 87.5 92.3 94.2 96.2 97.1 98.1 100.0
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The overall results for purchase intention shows that celebrities can influence the purchase decision of the people by appearing with a product in an advertisement. The results show that most of the consumers are likely to buy or buy the products endorsed by celebrities. Moreover many of the customers are happy or satisfied with the purchases they have done under the influence of celebrity that is a positive sign. The level of after purchase satisfaction builds the trust on the part of the celebrity and the product and influences future purchase decisions. The results also show that there are low numbers of people who are actually not influenced or satisfied with their purchase decisions under celebrity influence.
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DISCUSSION
This chapter provides the reader with clear justification of the results and direct answers to the research questions. The results will be discussed and compared with the existing empirical research available.
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celebrity endorsed advertisements enables them to recall and recognise the products more promptly. Celebrity endorsed advertisement have the potential to influence the cognitive processes of consumers (Wilkes and Valencia 1989). Interestingly the findings state that 72.1% of respondents said that they find celebrity endorsed advertisements more influential as compared to non-celebrity advertisements. Thus it can be said that employing a celebrity in an advertisement can influence the customers to buy the product or service endorsed by him. The findings support the fact that the power of the celebrities lies in their ability to influence the consumers, even if they are physically and socially far from a common consumer (Choi & Rifon, 2007).
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5.2.1.2 Trustworthiness Trustworthiness of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him The result from the study proves that trustworthiness of the celebrity positively influences the purchase intention of the consumers. Regression analysis supports the positive relationship between trustworthiness and purchase intention (R = .379). It states that 13.5% of purchase intention variability is defined by trustworthiness. The result states that if the celebrity is more trustworthy then the consumers are more likely to purchase the product. The descriptive frequency analysis results state that 27.9% of respondents agreed that they consider trustworthiness of the celebrity as a factor to influence their purchase intention. Independently respondents rated trustworthiness as rank 2 (Mean 4.11) in order to influence their purchase intention (Appendix). The study therefore supports the experiment by Miller and Baseheart (1969) found out that if the perceived trustworthiness of the source is high; attitude change is more likely to occur.
5.2.1.3 Similarity Similarity with the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him The result from the study proves that being similar or feeling some similarity with the celebrity positively influences the purchase intention of the consumers. Regression analysis supports the positive relationship between trustworthiness and purchase intention (R = .453). It states that 19.5% of purchase intention variability is defined by similarity. The result states that if the celebrity looks more similar or if the consumers feel something common in between them then they are more likely to purchase the product. The descriptive frequency analysis results state that 16.3% of respondents agreed that they consider trustworthiness of the celebrity as a factor to influence their purchase intention. Evaluating independently, respondents ranked Similarity as 4th (Mean 3.06) influential attribute to influence their purchase decision (Appendix). The results support that perceived resemblance between the source and the respondent influences their intention to purchase (Erdogan 1999).
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5.2.1.4 Familiarity Familiarity of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him Result of the study proves that familiarity of the celebrity endorser positively influences the purchase intention of the consumers. The result states that the more familiar the celebrity, more are the chances that product endorsed by him will be purchased by the consumers. The strength of relationship between familiarity and purchase intention is relatively good (R= .479). The result from the regression analysis shows that 22.2% of purchase intention variability is explained by expertise that is more than the attributes discussed so far. That proves if the expertise of the endorser is more it is likely to affect the purchase intention of consumers. The descriptive frequency analysis results state that 22.1% of respondents agreed that familiarity of the celebrity endorser affects their purchase intention. Overall the results positively supports that familiarity of the celebrity initiates positive perception towards the product endorsed by him and leads greater purchase intention (Hovland and Weiss 1951) 5.2.1.5 Likeability Likeability of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him The empirical test results of the study have found positive relationship between likeability and purchase intention of the consumer. The strength of relationship between familiarity and purchase intention is relatively moderate (R= .377). The result from the regression analysis shows that 13.4% of purchase intention variability is defined by likeability. The results state that if the celebrity is more likeable among the consumer, the people are likely to buy products endorsed by him. The descriptive frequency analysis results state that 23.1% of respondents agreed that familiarity of the celebrity endorser affects their purchase intention. The result from the study supports that likeability or fondness for the source can bring change in the buying behaviour of the consumer (Belch and Belch 2001). 5.2.1.6 Product Match-up The Product celebrity match-up of attributes positively affects the consumers intention to purchase products or services endorsed by him According to Till and Busler (1998) the existence of perceived 'fit' between the endorsing celebrity and the brand may influence the consumers intention to purchase. The empirical test results of the study state positive but low relationship between celebrity product match-up
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and purchase intention of the consumer. The strength of relationship between familiarity and purchase intention is relatively low (R= .257). The result from the regression analysis states that 5.7% of purchase intention variability is defined by likeability. The regression result state that if the celebrity fits with the product endorsed by him. There is a chance that people may buy that product. The descriptive frequency analysis results state that 28.8% of respondents agreed that the fit between the celebrity and the endorsed product can influence them to buy a certain product or service. Surprisingly, respondents ranked Match-up as the least preferred attribute rank 6th (Mean: 3.00) to influence their purchase intention. The regression result proves the positive relationship between the product celebrity match-up. However its impact is likely to be low as compared to other attributes. 5.2.1.7 Meaning Transfer The meaning transfer from celebrity to the product endorsed by them positively affects the consumers intention to purchase According to McCracken (1989) Celebrities can bring meanings to the product that can influence consumer purchase intention. The results from the research support the statement and states positive relationship between meaning transfer and purchase intention. However the impact of meaning transfer on consumer purchase intention is likely to be very low as compared to other attributes tested. The strength of relationship between meaning transfer and purchase intention is very low (R= .200). The result from the regression analysis states that 3.1% of purchase intention variability is defined by meaning transfer. Meaning transfer is the least effective variable to impact the consumers intention to purchase. The descriptive frequency analysis results state that 26.9% of respondents agreed that the meaning transfer from the celebrity to the product can influence their purchase intention. Respondents evaluating each attribute independently ranked meaning transfer 4th (Mean: 3.18) in influencing their purchase decision.
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the research state that 76% of people agree that they buy the products endorsed by celebrities. Respondents were asked to rate celebrities on three different questions. Overall the result from the research approves the relationship between celebrity endorsements and consumer purchase intention. The results state that majority of the people are likely to purchase (70.2%), do purchase (60.6%) and are overall happy with their purchases (68.3%) done under the influence of celebrity endorsers. Therefore, it can be said that celebrity endorsers are likely to have a positive effect on consumer purchase intention (Goldsmith, Lafferty and Newell 2000; Mathur, Mathur & Rangan 1997). Despite the various benefits, there are still many potential risks involved in using celebrities as endorsers. Negative publicity concerning the celebrity is one of the major risks associated with the celebrity endorsement. Negative publicity about a celebrity endorser not only impacts consumers' perception about the celebrity, but also the endorsed product (Klebba and Unger 1982; Till and Shimp 1995) Therefore, the respondents were asked to state if the negative publicity of a celebrity endorser can influence their intention to purchase the products endorsed by them. The respondents gave very complicated results. Majority of the respondents were unsure about the effect of negative publicity on their purchase decision while some of them agreed and vice versa. Therefore the author used the (Mean: 2.73) to come up to the conclusion. The descriptive statistical results state that negative publicity about a celebrity slightly affects their purchase intention (Appendix 7).
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CONCLUSION
This chapter articulates the main outcomes of the research project, examining the extent to which the objectives are met and contribution to the existing literature on celebrity endorsements. Managerial and theoretical implications of the research are outlined. Finally the limitation of the current study is acknowledged and directions for the further research are suggested.
Celebrity endorsements has changed the way advertising used to be few decades ago. It is been accepted to be a ubiquitous feature of modern day marketing (McCracken 1989). Celebrity endorsements business has become a multi-million dollar industry in India (Malhotra 2005). As a result, a greater understanding of consumers reactions towards celebrity endorsements can help the marketers to use it more effectively. This research project explored the current state of Indian consumers perception about celebrity endorsements. Empirically identified and tested the celebrity attributes specific to influence purchase intention and finally examined the impact of celebrity endorsements on purchase intention of consumers. In accordance with the study objectives, the following conclusions are drawn. Firstly, the research project examined and explored the current state of consumers perception about celebrity endorsements. Research outcomes reveal extremely high degree of familiarity across all age groups. Results reveal that people find celebrity endorsements more attractive, particularly young people and teenagers. Further, on the basis of attractiveness people find actors and actresses from bollywood and films more influential as endorsers. Results reveal that using a celebrity in an advertisement increases the recognition and recall rate of the endorsed product. Overall the people believe that celebrity endorsements are more attractive, and effective at influencing their purchase decision. Interestingly, people know and agree that celebrities dont really use the products endorsed by them. Even though, celebrity endorsements have a very positive impact on consumers perceptions and attitudes towards the endorsed product. Secondly, the positive relationship of different celebrity attributes and purchase intention of the consumers demonstrates the effectiveness of celebrities as successful endorsers. Although some attributes are very effective at influencing purchase intention of consumers some are relatively low or moderate. For instance, familiarity of the celebrity has the highest impact on purchase intention followed by similarity, expertise, trustworthiness and
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likeability. The least important attributes to have impact are product-celebrity match-up and meaning transfer. Controversially, in a separate test people ranked expertise to the most important attribute likely to impact their purchase decision. Accordingly the other attributes were ranked as trustworthiness, likeability, meaning transfer, similarity and product match-up. This shows that there is a difference between what Indian consumers actually do and think. It is also crucial to keep in mind that selection of a celebrity endorser should not only be done over the two most important attributes but also consider the remaining as a priority, since these may strengthen the impact of a celebrity over purchase intention. Overall it can be said that the different attributes of the celebrities positively affect consumers purchase intention. Thirdly and finally, empirical test of relationship between celebrity endorsements and purchase intention satisfied the final objective of this research project. It was empirically tested and found that celebrity endorsers positively affect the purchase intentions of the consumers as compared to non-celebrity endorsers. It was found out that people are more likely to buy, already buy and are happy with the purchases done under the influence of celebrities. Regarding negative publicity of the celebrity not many people think about it or are still unsure. The fact depicts that they actually follow their celebrities regardless of negative publicity while some are slightly considered about it. Overall, the results proved the effectiveness of celebrities as endorsers. In overall, all three research objectives have been achieved leading to better understanding of celebrity endorsements in context to India. Furthermore, the limitations, implications and suggestions for further research are articulated in subsequent topics.
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Moreover, large number respondents belonged to or represented urban part of the population. Hence the rural sector, the major part of Indian population was left unobserved. Therefore the results may show difference if the study is conducted on a larger scale. Therefore the results from this research may not be used to sample India as a whole country. Secondly, the author feels that limited time and resources may affect the methodology of the research. The author considered and examined the factors/attributes from the earlier literature on celebrity endorsements. However additional research approaches qualitative study (focus groups) could have benefited this research even more. In other words it may lead to the determination of other relevant factors that might affect the purchase intention of the consumers. Moreover, the author feels that time was another big concern for the research. For a relevant successful research, 3 month time proved to be less in order to collect and analyse the data to a much deeper level. Thirdly, even though the quantitative method to the approach has provided the most appropriate results for achieving the research objectives. It may also affect the outcomes of the research. The author used online questionnaire method in order to collect the data from the respondents. This method is not considered to very reliable because there is no face to face interaction with the respondent and therefore the respondents may manipulate with the data in terms of age, gender etc. On this account, the generalisations made on outcomes of the research are reasonable. Moreover, the elimination of above said limitations might reveal new insights in the area of celebrity endorsements.
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APPENDICES
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Sample Demographics Overall Gender: -Male -Female Age: <18 18-30 >30 Part of Country: -Urban -Rural Occupation: -Student -Professional/Business -Unemployed -Others
93 (89.4%) 11 (10.6%)
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Appendix 3: Questionnaire Dear Respondent, Im pursuing Masters in Management with Marketing from Bournemouth University, England. As a part of my course I need to submit a research project. My research project is based on Celebrity Endorsements and Its Impact on Consumer Buying Behaviour. The questions asked in the questionnaire are very simple and related to what we see and observe in common daily life. Please rate the questions according to what you actually feel about celebrity endorsements in real life. The whole questionnaire may take around 5 minutes of your precious time. I promise that your response will remain confidential and you will not be contacted for any marketing purposes. Thank you for your participation.
Questionnaire Demographic Profile 1. What is your age? a. Less than 18 years b. 18-30 c. 30 and above What is your gender? a. Male b. Female What is your profession a. Student b. Professional/Business c. Unemployed d. Others (Please Specify) Which part of country do you live? a. Urban b. Rural
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Consumer Perception and Celebrity Endorsements 5. Which of the following medium do you think is more likely to convey celebrity endorsed advertisements? a. TV advertisements b. Magazines c. Internet d. Radio e. Newspapers How frequently do you come across advertisements using celebrity endorsements? a. Often b. Occasionally c. Rarely d. Never
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What attracts you more: celebrity endorsed advertisements or non-celebrity advertisements? a. Celebrity endorsed advertisements b. Non celebrity advertisements 8. What type of celebrities do you think is more influential as endorsers? a. Actors or Actresses from movies b. Sport stars including cricketers c. Politicians d. Business persons e. Others (Please specify) 9. Does the presence of celebrities in the advertisements help you recognise and recall product more promptly? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 10. Do you think celebrities really use the product endorsed by them in real life? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 11. How do you perceive celebrity endorsements? a. Very effective b. Effective c. Somewhat effective d. Not at all effective 12. How influential do you think is celebrity endorsements? a. Very influential b. Influential c. Somewhat influential d. Not at all influential
Celebrity Attributes and Purchase Intention 13. As a consumer, do you consider Expertise of the celebrity as an attribute that can influence your purchase decision? (Expertise refers to the level of knowledge, experience and expertise a celebrity has in particular field) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 14. As a consumer, do you consider Trustworthiness of the celebrity as an attribute that can influence your purchase decision? (Trustworthiness refers to the honesty and believability of the celebrity) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
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15. As a consumer, do you think the sense of Similarity between you and the celebrity endorser can influence your purchase decision for a certain product or service? (Similarity refers to the sense of similarity a consumer feels with a celebrity) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 16. As a consumer, do you consider the Familiarity of the celebrity as an attribute that can influence your purchase decision for a certain product or service? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 17. As a consumer, do you consider the Likeability of the celebrity as an attribute that can influence your purchase decision for a certain product or service? (Likeability refers to the level of celebritys fame in the public opinion and how popular the celebrity is) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 18. As a consumer, do you think the Match between the celebrity and the product can an important attribute in influence your purchase decision for a certain product or service? (Fit/Match refers to the level how well the fit between the celebrity and the product is) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 19. Do you think celebrities can provide or transfer meaning to the product and influence your purchase intentions based on celebritys age, gender and lifestyle? (Meaning Transfer refers to the meaning a celebrity brings or transfers to a certain product with the help of their personality and lifestyle) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 20. Please rate these factors according to their importance and effectiveness in order to influence your purchase decision. (1 being the lowest and 5 being the highest) a. Expertise 1 2 3 4 5 b. Trustworthiness 1 2 3 4 5 c. Similarity 1 2 3 4 5 d. Likeability 1 2 3 4 5 e. Product-celebrity match 1 2 3 4 5 f. Meaning transfer 1 2 3 4 5
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21. Which of the below given factors influence you the most to buy a product or service endorsed by a celebrity? a. Expertise of the celebrity in the given field/ product endorsed. b. Trustworthiness of the celebrity c. Similarity between the celebrity endorser and yourself. d. Likeability of the celebrity e. Match between the Product and the celebrity. Celebrity Endorsements and Purchase Intention 22. Do you feel that Negative Publicity about a celebrity endorser can influence your purchase decision? (For example Salman Khan is facing trial in 3 cases for killing black bucks and chinkaras and illegal possession of arms.) a. Yes b. No c. Sometimes d. Cant say 23. Im likely to purchase products or services that have been endorsed by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 24. I do purchase products and services endorsed by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 25. In overall, Im happy with purchasing products or services advertised by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
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Appendix 4:
Appendix 5
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Appendix 6
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Appendix 7 Do you feel that Negative Publicity about a celebrity endorser can influence your purchase intention? In this research question, the author tried to identify how do celebrities impact the purchase intention of the customer by appearing with a product in an advertisement. There can be many factors associated with the effectiveness of a celebrity as an endorser. For instance negative publicity about the celebrity may spoil the public image of celebrity that may turn him ineffective as an endorser. Accordingly two questions were asked to the respondents to check the hypothesis.
Firstly the respondents were asked to rate if the negative publicity about a celebrity endorser can influence their purchase decision. The descriptive frequency analysis of results show that majority of the respondents slightly agree (38.5%) that negative publicity about a celebrity is likely to influence their purchase decision. 18.3% of the respondents also strongly agree to the statement. While 10.6% of respondents are unsure, 17.3% slightly disagree and 15.4% strongly disagree. The results dont show any concrete results. Overall results (Mean 2.73) show that respondents either slightly agree or unsure about the impact of negative publicity on their purchase intention. However the cumulative percentage suggests that more than half 56.7% respondents observe that negative publicity may influence their purchase decision (See table below).
Mean 2.73
Median 2
Mode 2
Frequency 19 40 11 18 16 104
Negative Publicity Percent Valid Percent 18.3 18.3 38.5 38.5 10.6 10.6 17.3 17.3 15.4 15.4 100.0 100.0
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Further analysis on basis of age showed that 83.3% respondents under the age of slightly agree that negative publicity about a celebrity can influence their purchase decision. Respondents between the age group of 18-30 gave mixed results. The analysis of data suggests that the youngsters are unsure about the negative publicitys influence on their purchase decision. However, 94% of respondents above the age of 30 years came up with some significant results that negative publicity about a celebrity influences their purchase decision. Overall, the analysis on the basis of age group suggest that people under the age of 18 and above 30 years are more sensitive to negative information and it influences their purchase intention. On the other hand people between the age of18-30 are either unsure or slightly agree to the statement.
Age group cross-tabulation Count Negative Agree Publicity Slightly agree Not sure Slightly disagree Disagree Total less than 18 years 0 10 1 0 1 12 Age 18-30 14 18 10 17 15 74 30 and above 5 12 0 1 0 18 Total 19 40 11 18 16 104
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