ZENITH International Journal of Business Economics & Management Research

Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

EFFECTS OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING BEHAVIOR AND BRANDING OF A BRAND

DR. GIRIDHAR K.V.*
*Assistant Professor, Department of Com. & Mgt., Sahyadri Arts & Commerce College, Kuvempu University, Shimoga - 577203.

INTRODUCTION Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, billboards, websites, radio and television, etc. Every brand attempts to steal at least fraction of a persons time to inform him/her of the amazing and different attributes of the product at hand. The challenge of the marketer is to find a hook that will hold the subjects attention. In helping to achieve this, use of celebrity for endorsement of a brand is widely used marketing strategy. In this modern age, people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great significance. In this process, the companies hire celebrities from a particular field to feature in its advertisement campaigns. The promotional features and images of the product are matched with the celebrity image, which tends to persuade a consumer to fix-up his choice from a variety of brands. Although this sounds pretty simple, but the design of such campaigns and the subsequent success in achieving the desired result calls for an in-depth understanding of the product, the brand objective, choice of a celebrity, associating the celebrity with the brand, and a framework for measuring the effectiveness. Marketers spend enormous amounts of money annually on celebrity endorsement contracts based on the belief that celebrities are effective spokespeople for their products or brands. Celebrity Endorsement is viewed as a billion dollar industry in todays era. Various companies are signing deals with celebrities in the hope that by using celebrities they can accomplish a unique and relevant position in the minds of the consumers. Celebrity endorsement is increasingly being employed across various industries regardless of the product type. It is known to be playing the role of a signaling strategy. CELEBRITY According to Oxford dictionary, celebrity means a famous person". A person who is excelled in his/her field of action or activity. In our day-to-day activity, we perform many acts at home, at work place, on field in sports, in social life. But these acts may be daily routine or just "acts". It means that giving no extra-ordinary results, not noticed by

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Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

anybody surrounding, and not taken into notice by Media. But if a person acts or performs something which gives spectacular results is noticed by masses. That person has done something special that we and masses cannot do. He is regarded as a special person with some "extra" given by that "Almighty" above. We start feeling that he/she is great. We start celebrating his/her all acts which produce success. If the success rate for that person is very high to "deliver" same results, he becomes a "CELEBRITY". It may be in field of sports, cinema, theatre, social life, politics or science anything but something with some special results.1 CELEBRITY ENDORSEMENT The use of celebrities in order to increase the sales and/ or the recall value of a brand is known as celebrity endorsement. The late '80s saw the beginning of celebrity endorsements in advertising in India. Hindi film and TV stars as well as sportspersons began encroaching on a territory that was, until then, the exclusive domain of models. There was a spurt of advertising, featuring stars like Tabassum (Prestige pressure cookers), Jalal Agha (Pan Parag), KapilDev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings). Of course, probably the first ad to cash in on star power in a strategic long-term mission statement kind of way was for Lux soap, a brand which has, perhaps as a result of this, been among the top three in the country for much of its lifetime. Endorsements by celebrities have started since a long time. The very fact that their use has continued for so long is proof enough of its immense advantages, but they have several disadvantages too. When it comes to celebrity endorsement, the first brand that comes to the Indian mind is that of Lux, the Beauty Bar of the Stars. Since its inception, Lux brand has grown positioning itself. However, recently Lux has tried to change its positioning from being a womans soap to being soap for men as well. Sticking to its strategy of using celebrities to appeal to its target audience, this time around it has used Shah Rukh Khan to endorse Lux. But this time the response has been confusing.2 EARLIER WORKS AN OVERVIEW Following are the review of major research work on the topic which is related to the present study. Daneshvary and Schwer (2000), in their article The association endorsement and consumers intention to purchase found that how consumers have a connection towards the celebrity endorsement/endorser. If a company want a consumer to associate to an endorsed product it is important to choose an endorser who uses the product and where that use is a reflection of professional expertise. A top model endorsing make- up is good, while a football player endorsing soap powder is less good. McCracken's (1989), in his article Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process states that a celebrity endorser is an individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (marketing communication). Earlier studies evidences that, in general, celebrity endorsement influences the feelings of the consumers

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ZENITH International Journal of Business Economics & Management Research

Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

and can also influence the attitude consumers have towards the advertisement and attitude towards the brands, which can increase the purchase intentions and, consequently, increase sales. Friedman H.H. and Friedman L. (1979), in their article Endorser effectiveness by product type found the categorization of products into low and high involvement is based on the risk perceptions consumers have when purchasing products (which are significantly higher for high involvement products). Risk perceptions can be classified into four categories (1) Psychological risk, the fit between product image and self-image. (2) Financial risk is associated with the price of the brands/products. (3) Social risk, the fear of not belonging or not taking part to/in a reference group as a result of purchasing the 'wrong' product/brand. (4) Operational risk, the risk of buying a product that does not operate the way it should do. Cronley M.L (1999), in his paper entitled Endorsing products for the money: The role of the correspondence bias in celebrity advertising identified the consumers attitudes towards the celebrity endorser. The consumers often have a positive attitude towards the product and the celebrity, despite the fact, that it is well known, that the endorser earned a lot when promoting the product. M. Gayathri Devi and Dr. C. Ramanigopal(2010), in their paper entitled Impact of celebrity endorsement on Indian market stated that Whether Celebrity endorsement has a positive or a negative impact on the brand is a debate that is open to interpretation. But till the time the corporate world continues to foot fancy bills of celebrity endorsers and till consumers continue to be in awe of the stars, the party is not likely to break up. Tripp C Jensen T.D and Carlson L. (1994), in their article Trust worthiness/ Credibility of celebrity endorsers found that how much consumers trust the celebrity endorser to be credible. When a celebrity endorses one or two products it is significantly more trustworthy than a celebrity who endorses even more products. From the above review of literature, it is found that the most of the earlier studies have focused onthe association endorsement and consumers intention to purchase, impact of celebrity endorsement on Indian market and endorsement for effectiveness of product type etc. But there is no evidence of study on effects of celebrity endorsement consumer buying behavior on brand especially in India. And, there is a need to through some lights on this area; therefore, this study has been undertaken. STATEMENT OF PROBLEMS Most of the researchers have analyzed celebritys attributes to be a good endorser, but is it enough to build a good strategy. The product is sometimes forgotten and too much focus is on the celebrity, while the focus should be on the product. Today, companies spend crores of rupees each year for endorsingtheir product by celebrities. It is always a greater challenge for marketers to determine the meaning of consumer associated with the brand in order to select the right celebrity and to build right brand for celebrity endorsement concept. Therefore, it is essential that company make use of too many components that

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Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

must be taken in to consideration during a celebrity endorsement process. This type of marketing strategy has become popular but it involves certain risks. Some of the serious risks which are associated with celebrity endorsement on brand building which are not yet addressed by any of the earlier studies are, the reputation of the celebrity may derogate after he/she has endorsed the product, inconsistency in the professional popularity of the celebrity, multi brand endorsements by the same celebrity would lead to overexposure, celebrities endorsing one brand and using another(competitor), mismatch between the celebrity and the image of the brand needs to address thoroughly on it. All these aspects are proposed to be studied in the present work. OBJECTIVES OF THE STUDY The Primary objective of this work is to study the effects of celebrity endorsement on consumer buying behavior in Indian context and to examine awareness, appeal and relevance in setting up of the promotional strategies as well as to test the celebrity impact on consumers. Based on this primary objective, other supporting objectives are set as presented below 1. 2. 3. 4. To identify the factors that motivate and affect the purchase attitude of consumers at Shimoga To analyze factors which influence the purchase attitude of consumers at Shimoga To study the consumer perception on endorsement of celebrities through advertisement and to ascertain the consumer responses. To identify drawbacks associated with celebrity endorsement

SCOPE OF THE STUDY The present study has focused on the effect of celebrity endorsement on consumer buyingbehavior on brand mainly on three prospective, i.e. marketer, cele brity and consumer. Further, the study also covers celebrity endorsement on durable products with special emphases given to the customers of Shimoga city.The focus was on the behavioral pattern and the impact of celebrity endorsements on the purchase attitude of the consumers towards durable products. RESEARCH METHODOLOGY The primary data has been collected through structured questionnaire on Convenience sampling and the primary data was collected from 50 respondents who belong to different educational, occupational and income group from the study area. The secondary data has been collected from different sources of literature like journals, magazines, textbooks and internet. DATA ANALYSIS AND INTERPRETATION

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Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

Consumer buying behavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision-making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. The study and knowledge of consumer behavior helps the firms to improve their marketing strategies and product offerings. Following are the important issues that have significant influence on consumer's psyche and their ability to take decisions: The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. Their Age, Religion, Culture, Income, informal group and Referent Group. Understanding these issues helps adapt our strategies by taking the consumer into consideration. The main factors that affect a celebrity endorsed brand while viewed by a consumer in the media (both TV and print). The three major parts to a brand being shown are 1. The Product, 2. Advertisement and 3. The celebrity endorsing it. It is important is to study the relationship between these factors and how they together act for or against the brand. On the basis of objectives of the study, questions are designed and responses of the respondents are documented in the questions and following analysis are made-out of it. TABLE NO.1 OCCUPATIONS OF RESPONDENTS Respondents occupation Business Class Service Class Student Number of Respondents (NOR) 8 14 24 Percentage 16 28 48

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Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

Others Total

4 50

8 100

Above table shows the occupation of respondents. 16% of respondents are from business class, 28% of them are from Service class, 48%are students and rests of the respondents are from home-makers, graduates and retired.

TABLE NO.2 AGE AND SEX OF RESPONDENTS Number of Respondents Age of the Respondents Male 18-25 25-35 35-50 50 & above Total Source: Field survey Above table represents the data of age and sex of respondents. Responses have been collected from male and female in equal ratio. But there is a variation as per the age group is concerned. 20% of respondents aged between 18 years to 25 years, 25% of them aged between 25 to 35 years, but majority of the respondents belong to the age group of 35-50 years and only 14% belong to above 50 years of age on whom celebritys impact happens at hard. TABLE NO.3 FACTORS AFFECTING ON THE PURCHASE DECISION OF THE RESPONDENTS Factors affecting on Purchase decision Price Quality Celebrity endorsement Brand name Number of Respondents 16 11 10 13 Percentage 32 22 20 26 www.zenithresearch.org.in 5 6 11 3 25 (50%) Female 5 6 10 4 25 (50%) Total 10 12 21 7 50 20 24 42 14 100 Percentage

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Total Source: Field survey

50

100

From the data it can be found that the factors influencing in the purchase decision of respondents are as under; 32% of the respondents select their brand on the basis of the price of a product, 22% of the respondents are influenced by the quality of the product, 20% of them are influenced and selecting their products through the endorsement of celebrities and 26% are picking the products having seen the brand name. Price and the brand are playing a major role in selecting a product. TABLE NO.4 FACTORS INFLUENCING IN SELECTION A BRAND FOR CONSUMER DURABLE Influencing factors Price Comfort and Luxury Brand Celebrity Total Source: Field survey From the above table it is very clear that around 32% of the respondents prefer to buy the consumer durable products after having seen the price, 24% of them go for comfort and luxury, 30% prefer it on the basis of the brand and only 14% prefer celebrity who has endorsed the product respectively. So we can say that, with respect to products like consumer durables,again price plays vital role than the role of celebrity who has endorsed that product. TABLE NO.5 OPINION ON ENDORSING A BRAND THROUGH CELEBRITIES Opinion Creates impact No impact Cant say (Not sure) Total Number of Respondents 26 12 12 50 Percentage 52 24 24 100 www.zenithresearch.org.in Number of Respondents 16 12 15 7 50 Percentage 32 24 30 14 100

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Source: Field survey From the survey it was found that amongst50 respondents, 52% of respondents would like to see their brand to be endorsed by a celebrity in advertisements, 24% of respondents opinion that no impact can be created by the celebrities rest of the 24% respondents are not sure whether an impact can be made or not. It can be inferred that more than 50% of the respondents want to select the products endorsed through celebrities.

TABLE NO.6 EFFECTIVENESS OF CELEBRITIES IN CREATING DESIRE Likert Scale Strongly agree Agree Neutral Disagree Strongly disagree Total Source: Field survey From the survey it was found that24% of the respondents strongly agree that celebrities create desire in the minds of the viewers after having seen the advertisements in different media, 38% simply agree with it, 18% of the respondents are cannot come to any conclusion and kept Neutral, 12% of the respondents disagree with this concept and only 8% of them strongly disagree to the fact that celebrities are an effective tool of persuasion. But, majority of the respondents are in favor of the celebrity concept. TABLE NO.7 PURCHASING OF ONLY CELEBRITY ENDORSED BRANDS Purchasing practice Celebrity endorsed brand only Not particular Number of Respondents 14 36 Percentage 28 72 Number of Respondents 12 19 9 6 4 50 Percentage 24 38 18 12 8 100

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ZENITH International Journal of Business Economics & Management Research

Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

Total Source: Field survey

50

100

From the above table it can be inferred that 28% of the respondents are selecting those brands which are endorsed by any Celebrity but 72% of the respondents are not very particular when it comes to shopping. It means Celebrities are creating awareness but failed in creating the strong desire among consumers.

TABLE NO.8 PREFERENCE OF CELEBRITIES FOR BRAND ENDORSEMENT Celebrities for Brand endorsement Film Stars Sports Personalities Models Total Source: Field survey From the table it can be concludedthat about 60% of the respondents prefer film stars to endorse the brand, whereas 34% of the respondents prefer to watch sports personalities in advertisement but only 6% of the respondents go for top models. Majority of the respondents like to see their favorite film stars again in advertisement and like to follow their life-style. FINDINGS OF THE STUDY On the basis of the study, following findings have been recorded as under; 1. Celebrity endorsement enhances product information and creates awareness among consumers. It helps them to recall the brands of the endorsed products. 2. The consumers of durable products have their motivational sources from need and product utility. The study revealed that the celebrities convincing endorsement motivates them to materialize the purchase of durables. 3. The consumers are induced significantly by the celebrity endorser when the target is on quality and price. www.zenithresearch.org.in Number of Respondents 30 17 3 50 Percentage 60 34 6 100

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4. The purchase attitude is influenced by the celebrity endorsement factors, product evaluation and brand recognition. 5. Film stars are playing major role in creating an impact than Sports personalities and other models. 6. A good number of respondents are selecting only those brands which are endorsed by the celebrities. SUGGESTIONS The report was linked to specific managerial suggestions regarding more effective use of celebrities to enhance brand equity: 1. Celebrity endorsements will be more effective when used consistently over time to increase the strength of the link between the celebrity and the endorsed brand. 2. Celebrity endorsements will be more effective when the ad execution is simple, clean and free of irrelevant design elements. Focus on the celebrity and the brand together. 3. Celebrity endorsements will be more effective when using a celebrity who is not already strongly associated with another product or service. 4. Celebrity endorsements will be more effective when using a celebrity with a high fit, congruence, or belongingness with the endorsed brand. Celebrity endorsers can be used to effectively reinforce and/or create an image for a product or service. 5. Celebrity endorsements will be more effective for less familiar brands. 6. Celebrity endorsers will be more effective for brands for which consumers have limited knowledge/facts. www.zenithresearch.org.in 7. Celebrity endorsers will be more effective when integrated across the elements of the marketing mix. 8. Caution in choice of celebrity endorser is warranted given the potential risk of tarnishing the brands image. CONCLUSION The world of today is changing fast. India is no exception. Especially after the opening up of the economy, the pace of change that India and its people are experiencing in their sociocultural milieu is mind boggling. India, with its wide diversity, offers a fascinating scope to study the host of changes which developmental activities have brought about in its social and economical framework. While it is possible to get some estimates of the macro changes taking place in India, it is impossible to get any accurate measures of the subjective

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experiences that proceed, accompany or follow such changes. However, the fact remains that the profile of the Indian market is vastly different from what it was earlier. Although these changes are difficult to measure at the micro level, nevertheless, they have been of great significance to marketers. Any marketer is keen in closely monitoring the changes in terms of numbers and specially keeping regular track of the changing pattern of consumers aspirations and competitive actions. BIBLIOGRAPHY 1. 2. 3. 4. 5. Oxford English Dictionary, Oxford University Press. Daneshwary, R. and Schwer, R.K. (2000). The association endorsement and consumers intention to purchase. Journal of Consumer Marketing, 17 (3), 203-213. McCracken, G. (1989). Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process. The Journal of Consumer Research, 16 (3), 310-321. Friedman, H.H. and Friedman, L. (1979). Endorser effectiveness by product type. Journal ofadvertising research, 19(5), 63-71. M. Gayathri Devi and Dr. C. Ramanigopal (2010) Impact of celebrity endorsement on indian marketJournal of Applied Science & Social Science, Vol. I, No II. November 2010. Tripp, C, Jensen, T.D and Carlson, L. (1994). Trust worthiness/ Credibility of celebrity endorsers. Journal of consumer research, 20 (4). 535-547.

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